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HomeMy WebLinkAbout2018-10-15 Agenda PacketMEETING ASSISTANCE NOTICE: In accordance with the Americans with Disabilities Act, services are available to members of our community who require special assistance to participate in public meetings. If you require special assistance, 48-hour prior notification will enable the City to make reasonable arrangements for an assisted listening device (ALD) for the hearing impaired, American Sign Language interpreters, a reader during the meeting and/or large print agendas. Please contact the City Clerk’s Office at (714) 536-5227 for more information, or request assistance from the staff or Sergeant-at-Arms at the meeting. PUBLIC COMMENTS: To address the legislative body on items of interest not scheduled for public hearing, Request to Speak forms will be made available at the meeting and are collected by the staff or Sergeant at Arms. Some legislative bodies may provide different Request to Speak forms for public hearing items. AUDIO/VIDEO ACCESS TO BROADCASTED MEETINGS: City Council and Planning Commission meetings are televised live on HBTV-3 Channel 3, and can be viewed via live or archived website at https://huntingtonbeach.legistar.com. AGENDA CITY COUNCIL/PUBLIC FINANCING AUTHORITY Monday, October 15, 2018 Council Chambers 2000 Main Street Huntington Beach, CA 92648 Study Session - None / Closed Session - 4:30 PM Regular Meeting - 6:00 PM MAYOR AND CITY COUNCIL MIKE POSEY, Mayor ERIK PETERSON, Mayor Pro Tem PATRICK BRENDEN, Councilmember BARBARA DELGLEIZE, Councilmember JILL HARDY, Councilmember WILLIAM O’CONNELL, Councilmember LYN SEMETA, Councilmember STAFF FRED A. WILSON, City Manager MICHAEL E. GATES, City Attorney ROBIN ESTANISLAU, City Clerk ALISA CUTCHEN, City Treasurer 1 City Council/Public Financing Authority AGENDA October 15, 2018 4:30 PM - COUNCIL CHAMBERS CALL TO ORDER ROLL CALL O'Connell, Semeta, Peterson, Posey, Delgleize, Hardy, Brenden ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEMS (3 Minute Time Limit) RECESS TO CLOSED SESSION CLOSED SESSION 18-4271.Pursuant to Government Code § 54956.9(d)(1), the City Council shall recess into Closed Session to confer with the City Attorney regarding the following lawsuit: Shay v. City of Huntington Beach, et al.; USDC Case No.: 8:17-CV-00744-AG (JCGx). 18-4332.Pursuant to Government Code §54956.9(d)(2) the City Council shall recess into Closed Session to confer with the City Attorney regarding potential litigation. Number of cases, one (1). 18-4373.Pursuant to Government Code § 54957.6, the City Council shall recess into Closed Session to meet with its designated labor negotiators: Fred A. Wilson, City Manager, Peter Brown, outside counsel and Chief Negotiator, Lori Ann Farrell-Harrison, Assistant City Manager; also in attendance: David Segura, Fire Chief, Robert Handy, Chief of Police, Gilbert Garcia, Chief Financial Officer, Michele Warren, Director of Human Resources regarding the following: Huntington Beach Firefighters’ Association (HBFA), Municipal Employees’ Association (MEA), Management Employees’ Organization (MEO), Police Officers’ Association (POA), and Police Management Association (PMA). 18-4384.Pursuant to Government Code § 54956.9(d)(1), the City Council shall recess into Closed Session to confer with the City Attorney regarding the following lawsuit: Gary Finney v. City of Huntington Beach Workers’ Compensation Case Claim No. COHB-18-0011. 6:00 PM – COUNCIL CHAMBERS Page 1 of 8 2 City Council/Public Financing Authority AGENDA October 15, 2018 RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING ROLL CALL O'Connell, Semeta, Peterson, Posey, Delgleize, Hardy, Brenden PLEDGE OF ALLEGIANCE INVOCATION In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation. 18-3055.Mark Currie of Bahá'í of Huntington Beach and member of the Greater Huntington Beach Interfaith Council CLOSED SESSION REPORT BY CITY ATTORNEY AWARDS AND PRESENTATIONS 18-3956.Mayor Posey to call on Victoria Alberty to present the Adoptable Pet of the Month. 18-3827.Mayor Posey to call on Julia Lynch, Executive Officer of Southeast County Young Marines to proclaim Red Ribbon Week as October 23-31. 18-4058.Mayor Posey to proclaim October as Arts and Humanities Month, and present proclamation to Mary Lou Shattuck and Mike Adams, Co-chairs of the Huntington Beach Art Center Foundation. 18-4349.Mayor Posey to call on members of the Huntington Beach Police Officers’ Foundation who will present a check from the Constable Classic Charity Golf Tournament to representatives from Talk About Curing Autism (TACA). 18-39610.Mayor Posey to call on Director of Community Development Ursula Luna-Reynosa who will present the Mayor’s Award to Code Enforcement Officer II, Jimmy Hoang ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) PUBLIC COMMENTS (3 Minute Time Limit) COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS, AB 1234 Page 2 of 8 3 City Council/Public Financing Authority AGENDA October 15, 2018 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES CITY MANAGER'S REPORT CITY ATTORNEY'S REPORT 18-43511.Court ruling on the City’s lawsuit against the State regarding SB 54, the Sanctuary State law 18-43612.Filing of new lawsuits in the City’s battle to combat illegal businesses, including illegal residential rehabilitation treatment facilities CONSENT CALENDAR 18-41413.Approve and Adopt Minutes Approve and adopt the City Council/Public Financing Authority regular meeting minutes dated October 1, 2018, as written and on file in the Office of the City Clerk. Recommended Action: 18-32814.Approve and authorize execution of Second Amendment to Site License Agreement between the City of Huntington Beach and ATC Outdoor DAS, LLC; and, authorize the City Manager to substitute and/or increase pole locations as needed A) Approve and authorize the City Manager to execute “Second Amendment to Site License Agreement” with ATC Outdoor DAS, LLC; and , B) Authorize the City Manager to substitute pole locations as needed and increase pole locations by 10%, if needed . Recommended Action: 18-36115.Approve and authorize execution of a three-year contract with InfoSend, Inc. to provide Utility Bill Statement Design, Print, Mail and Electronic Delivery Service Approve and authorize the Mayor and City Clerk to execute “Service Agreement Between the City of Huntington Beach and InfoSend, Inc. for Bill Statement Printing, Processing and Delivery Services” in an amount not to exceed $978,000 over a three-year term; and authorize the City Manager to execute the attached contract . Recommended Action: 18-36416.Approve and authorize execution of Orange County Transportation Authority's (OCTA) Utility Agreement No. UK048088 for the relocation of the City of Huntington Beach Sugar Drive Water Pipeline, CC-1585, for the 405 Widening Project Page 3 of 8 4 City Council/Public Financing Authority AGENDA October 15, 2018 Authorize the Mayor and City Clerk to execute “Orange County Transportation Authority Utility Agreement UK048088” and to return all signed original agreements to OCTA for their final approval. Recommended Action: 18-41217.Approve and authorize execution of a Joint Use Agreement between the City of Huntington Beach and the Westminster School District (WSD) for Clegg/Stacey Park, 6161 Larchwood Drive, Huntington Beach Approve and authorize the Mayor and City Clerk to execute a “Joint Use Agreement Between the City of Huntington Beach and the Westminster School District.” Recommended Action: 18-41318.Approve and authorize execution of a Small Cell License Agreement between the City and Mobilitie, LLC; and, approve the First Amendment to the Small Cell License Agreement between the City and new Cingular Wireless PCS, LLC, dba AT&T Mobility on City-owned street lights A) Approve the “Small Cell License Agreement” between the City of Huntington Beach and Mobilitie LLC; and , B) Approve the First Amendment to Small Cell License Agreement between the City of Huntington Beach and new Cingular Wireless PCS, LLC, doing business as AT&T Mobility, approved as to form by the City Attorney; and , C) Authorize the City Manager , with review by the City Attorney, to increase up to 10% and substitute pole locations on an as needed basis, for both agreements. Recommended Action: 18-40119.Approve City Council position on legislation pending before the State Legislature and Congress as recommended by the City Council Intergovernmental Relations Committee (IRC); and, authorize City staff and the City’s State Advocate to work with State legislators and County of Orange staff on crafting potential legislative language to examine the State’s property tax apportionment system A) Approve a City position of support on H.R. 5724 (Rohrabacher) Restoring Community Oversight of Sober Living Homes Act of 2018; and, B) Approve a City position of Oppose on recently introduced proposed Bureau of Cannabis Control Regulations; and , C) Authorize City staff and the City’s State Advocate to work with State legislators and Recommended Action: Page 4 of 8 5 City Council/Public Financing Authority AGENDA October 15, 2018 County of Orange staff on crafting potential legislative language to examine the State’s property tax apportionment system. 18-37020.Approve FY 2017/18 Year End Adjustment for the Workers’ Compensation Internal Service Fund Approve the appropriation of $1,245,432 in the Fiscal Year 2017/18 Revised Budget in the General Fund (100) and transfer to the Self Insurance Workers’ Compensation Internal Service Fund (551). Recommended Action: 18-41021.Approve FY 2017/18 Year-End Budget Adjustment for the General Liability Internal Service Fund Approve the appropriation of $405,060 in the Fiscal Year 2017/18 Revised Budget in the General Fund (100) and transfer to the Self Insured General Liability Internal Service Fund (552). Recommended Action: 18-41122.Approve the Franklin Park Conceptual Master Plan located at the former Franklin School site at 14422 Hammon Lane Approve the Franklin Park Conceptual Master Plan as presented. Recommended Action: 18-39723.Approve the September 2018 City of Huntington Beach Strategic Plan Update Approve the September 2018 Strategic Objectives Update as contained within Attachment 1. Recommended Action: 18-39924.Adopt Resolution No. 2018-58 Amending the Conflict of Interest Code Adopt Resolution No. 2018-58, “A Resolution of the City Council of the City of Huntington Beach Amending its Conflict of Interest Code .” Recommended Action: 18-40925.Adopt Resolution No. 2018-59 declaring the City Council’s intention to renew the Huntington Beach Tourism Business Improvement District (HBTBID); fix the time and place of a public meeting; and, call a public hearing Adopt Resolution No. 2018-59 “A Resolution of the City Council of the City of Huntington Beach declaring its intention to renew the Huntington Beach Tourism Business Improvement District (HBTBID) and fixing the time and place of a public meeting and a public hearing thereon and giving notice thereof.” Recommended Action: Page 5 of 8 6 City Council/Public Financing Authority AGENDA October 15, 2018 18-41526.Adopt Ordinance 4155 amending Chapter 10.44 of the Huntington Beach Municipal Code (HBMC) relating to oversized vehicles (Approved for introduction as amended by Supplemental Communication on October 1, 2018 - Vote: 7-0) Adopt Ordinance No. 4155, “An Ordinance of the City of Huntington Beach Amending Chapter 10.44 of the Huntington Beach Municipal Code Relating to Parking - Time Limits.” Recommended Action: PUBLIC HEARING 18-35927.Approve Mitigated Negative Declaration No. 16-002, Resolution No. 2018-27 approving General Plan Amendment No. 16-001, and Ordinance No. 4161 approving Zoning Map Amendment No. 16-002 (Sea Dance Residential Development - 14422 Hammon Lane) PLANNING COMMISSION AND STAFF RECOMMENDATION: A) Approve Mitigated Negative Declaration No. 16-002 with findings for approval (Attachment No.1); and, B) Approve General Plan Amendment No. 16-001 by adopting City Council Resolution No. 2018-27, “A Resolution of the City Council of the City of Huntington Beach Approving General Plan Amendment No. 2016-001 (Attachment No. 2);” and , C) Approve Zoning Map Amendment No. 16-002 with findings for approval and approve for introduction Ordinance No. 4161, “An Ordinance of the City of Huntington Beach Amending District Map 9 (Sectional Map 9-5-11) of the Huntington Beach Zoning and Subdivision Ordinance to Rezone the Real Property Located at 14422 Hammon Lane From Public - Semipublic (PS) to Residential Low Density (RL) and Open Space - Park and Recreation (OS - PR) Zoning Map Amendment No. 2016-002 (Attachment No. 3). Recommended Action: ADMINISTRATIVE ITEMS 18-42028.Approve for Introduction Ordinance No. 4165 Adding Chapter 12.40 to the Huntington Beach Municipal Code Making Shared Mobility Devices or Businesses Unlawful Approve for Introduction Ordinance No.4165, “An Ordinance of the City Council of the City of Huntington Beach Adding Chapter 12.40 to the Huntington Beach Municipal Code Making Shared Mobility Devices or Businesses Unlawful.” Recommended Action: Page 6 of 8 7 City Council/Public Financing Authority AGENDA October 15, 2018 18-42829.Approve Tentative Agreement and introduction of proposed Memorandum of Understanding (MOU) between the Huntington Beach Municipal Employees’ Association (MEA) and the City of Huntington Beach for October 1, 2017, through September 30, 2019 Approve the Tentative Agreement and the introduction of the proposed Memorandum of Understanding Between the Huntington Beach Municipal Employees’ Association and the City of Huntington Beach for the period October 1, 2017 , through September 30, 2019. Recommended Action: 18-43130.Approve Tentative Agreement and introduction of proposed Memorandum of Understanding (MOU) between the Huntington Beach Firefighters’ Association (HBFA) and the City of Huntington Beach for July 1, 2018 through June 30, 2021 Approve the Tentative Agreement and the introduction of the proposed Memorandum of Understanding Between the Huntington Beach Firefighters’ Association and the City of Huntington Beach for the period July 1, 2018 through June 30, 2021. Recommended Action: 18-43231.Approve Tentative Agreement and introduction of proposed Memorandum of Understanding (MOU) between the Huntington Beach Management Employees’ Organization (MEO) and the City of Huntington Beach for November 1, 2017 through October 31, 2019 Approve the Tentative Agreement and the introduction of the proposed Memorandum of Understanding Between the Huntington Beach Management Employees’ Organization (MEO) and the City of Huntington Beach for the period November 1, 2017 through October 31, 2019. Recommended Action: COUNCILMEMBER ITEMS 18-42932.Item Submitted by Mayor Posey for the October 15, 2018, City Council Meeting - Exploration of Legal Remedies to hold CalPERS Accountable to their Fiduciary Responsibilities Direct the City Attorney to explore any and all legal remedies to hold CalPERS accountable to their fiduciary responsibilities of providing a sustainable retirement system for those that serve California. Return to City Council within 90 days with a proposed strategy. Recommended Action: 18-43033.Item Submitted by Mayor Posey for the October 15, 2018, City Council Meeting - Filing of Claim with the Commission on State Page 7 of 8 8 City Council/Public Financing Authority AGENDA October 15, 2018 Mandates Related to the Passage of Assembly 109 Direct the City Manager and the Police Chief to conduct an analysis of the existence of financial distress placed upon the City due to the implementation of Assembly Bill 109 and report back to the City Council within 90 days. If such financial distress exists, the City should investigate whether this would qualify as a Test Claim with the Commission on State Mandates. Recommended Action: COUNCILMEMBER COMMENTS (Not Agendized) ADJOURNMENT The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Monday, November 5, 2018, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http://www.huntingtonbeachca.gov Page 8 of 8 9 City of Huntington Beach File #:18-427 MEETING DATE:10/15/2018 Pursuant to Government Code § 54956.9(d)(1), the City Council shall recess into Closed Session to confer with the City Attorney regarding the following lawsuit:Shay v. City of Huntington Beach, et al.;USDC Case No.: 8:17-CV-00744-AG (JCGx). City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™10 City of Huntington Beach File #:18-433 MEETING DATE:10/15/2018 Pursuant to Government Code §54956.9(d)(2) the City Council shall recess into Closed Session to confer with the City Attorney regarding potential litigation. Number of cases, one (1). City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™11 City of Huntington Beach File #:18-437 MEETING DATE:10/15/2018 Pursuant to Government Code § 54957.6, the City Council shall recess into Closed Session to meet with its designated labor negotiators: Fred A. Wilson, City Manager, Peter Brown, outside counsel and Chief Negotiator, Lori Ann Farrell-Harrison, Assistant City Manager; also in attendance: David Segura, Fire Chief, Robert Handy, Chief of Police, Gilbert Garcia, Chief Financial Officer, Michele Warren, Director of Human Resources regarding the following: Huntington Beach Firefighters’ Association (HBFA), Municipal Employees’ Association (MEA), Management Employees’ Organization (MEO), Police Officers’ Association (POA), and Police Management Association (PMA). City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™12 City of Huntington Beach File #:18-438 MEETING DATE:10/15/2018 Pursuant to Government Code § 54956.9(d)(1), the City Council shall recess into Closed Session to confer with the City Attorney regarding the following lawsuit: Gary Finney v. City of Huntington Beach Workers’ Compensation Case Claim No. COHB-18-0011. City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™13 City of Huntington Beach File #:18-305 MEETING DATE:10/15/2018 Mark Currie of Bahá'í of Huntington Beach and member of the Greater Huntington Beach Interfaith Council City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™14 City of Huntington Beach File #:18-395 MEETING DATE:10/15/2018 Mayor Posey to call on Victoria Alberty to present the Adoptable Pet of the Month. City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™15 City of Huntington Beach File #:18-382 MEETING DATE:10/15/2018 Mayor Posey to call on Julia Lynch, Executive Officer of Southeast County Young Marines to proclaim Red Ribbon Week as October 23-31. City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™16 City of Huntington Beach File #:18-405 MEETING DATE:10/15/2018 Mayor Posey to proclaim October as Arts and Humanities Month, and present proclamation to Mary Lou Shattuck and Mike Adams, Co-chairs of the Huntington Beach Art Center Foundation. City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™17 City of Huntington Beach File #:18-434 MEETING DATE:10/15/2018 Mayor Posey to call on members of the Huntington Beach Police Officers’ Foundation who will present a check from the Constable Classic Charity Golf Tournament to representatives from Talk About Curing Autism (TACA). City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™18 City of Huntington Beach File #:18-396 MEETING DATE:10/15/2018 Mayor Posey to call on Director of Community Development Ursula Luna-Reynosa who will present the Mayor’s Award to Code Enforcement Officer II, Jimmy Hoang City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™19 City of Huntington Beach File #:18-435 MEETING DATE:10/15/2018 Court ruling on the City’s lawsuit against the State regarding SB 54, the Sanctuary State law City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™20 City of Huntington Beach File #:18-436 MEETING DATE:10/15/2018 Filing of new lawsuits in the City’s battle to combat illegal businesses, including illegal residential rehabilitation treatment facilities City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™21 City of Huntington Beach File #:18-414 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Robin Estanislau, CMC, City Clerk PREPARED BY:Robin Estanislau, CMC, City Clerk Subject: Approve and Adopt Minutes Statement of Issue: The City Council/Public Financing Authority regular meeting minutes dated October 1, 2018 require review and approval. Financial Impact: None. Recommended Action: Approve and adopt the City Council/Public Financing Authority regular meeting minutes dated October 1, 2018, as written and on file in the Office of the City Clerk. Alternative Action(s): Do not approve and/or request revision(s). Analysis: None. Environmental Status: Non-Applicable. Strategic Plan Goal: Non-Applicable - Administrative Item Attachment(s): 1. October 1, 2018 CC/PFA Minutes City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™22 Minutes City Council/Public Financing Authority City of Huntington Beach Monday, October 1, 2018 4:30 PM - Council Chambers 6:00 PM - Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 A video recording of the 6:00 PM portion of this meeting is on file in the Office of the City Clerk, and archived at www.surfcity-hb.org/government/agendas/ Based on the lack of a Study Session and time needed to cover the Closed Session items, the meeting was called to order at 4:30 PM 4:30 PM - COUNCIL CHAMBERS CALLED TO ORDER — 4:30 PM ROLL CALL Present: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden Absent: None Pursuant to City Charter Section 309(d) City Attorney Michael Gates requested, and was granted, permission to be absent. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) — None PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEMS (3 Minute Time Limit) — None RECESSED TO CLOSED SESSION FOR ITEMS 2 – 5 — 4:31 PM CLOSED SESSION ANNOUNCEMENT(S) 1. 18-317 Mayor Posey Announced: Pursuant to Government Code § 54957.6, the City Council takes this opportunity to publicly introduce and identify designated labor negotiators: Fred A. Wilson, City Manager, Peter Brown, outside counsel and Chief Negotiator, Lori Ann Farrell-Harrison, Assistant City Manager; also in attendance: David Segura, Fire Chief, Robert Handy, Chief of Police, Gilbert Garcia, Chief Financial Officer, Michele Warren, Director of Human Resources regarding the following: Huntington Beach Firefighters’ Association (HBFA), Municipal Employees’ Association (MEA), Management Employees’ Organization (MEO), and Huntington Beach Police Officers’ Association (POA). 23 CLOSED SESSION 2. 18-377 Pursuant to Government Code § 54956.9(d)(1), the City Council recessed into Closed Session to confer with the City Attorney regarding the following lawsuit: Shay v. City of Huntington Beach, et al.; USDC Case No.: 8:17-CV-00744-AG (JCGx). 3. 18-378 Pursuant to Government Code § 54956.9(d)(1), the City Council recessed into Closed Session to confer with the City Attorney regarding the following lawsuit: City of Huntington Beach vs. Surf City Beach Cottages, LP; Orange County Superior Court Case No. 30-2016-00874885. 4. 18-388 Pursuant to Government Code § 54956.9(d)(1), the City Council recessed into Closed Session to confer with the City Attorney regarding the following lawsuit: Craig Bryant v. City of Huntington Beach Workers’ Compensation Case Claim No. COHB-92-0115. 5. 18-392 Pursuant to Government Code § 54957.6, the City Council recessed into Closed Session to meet with its designated labor negotiators: Fred A. Wilson, City Manager, Peter Brown, outside counsel and Chief Negotiator, Lori Ann Farrell- Harrison, Assistant City Manager; also in attendance: David Segura, Fire Chief, Robert Handy, Chief of Police, Gilbert Garcia, Chief Financial Officer, Michele Warren, Director of Human Resources regarding the following: Huntington Beach Firefighters’ Association (HBFA) and Municipal Employees’ Association (MEA), Management Employees’ Organization (MEO), and Huntington Beach Police Officers’ Association (POA). 6:00 PM - COUNCIL CHAMBERS RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 6:00 PM ROLL CALL Present: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden Absent: None Pursuant to Charter Section 309(d), City Attorney Michael Gates requested, and was granted, permission to be absent. PLEDGE OF ALLEGIANCE — Led by Councilmember Semeta INVOCATION In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation. 6. 18-304 Marsha Rechsteiner of Sts. Simon & Jude Catholic Church and member of the Greater Huntington Beach Interfaith Council CLOSED SESSION REPORT BY CITY ATTORNEY — None 24 AWARDS AND PRESENTATIONS 7. 18-379 Mayor Posey presented commendations to members of the Air Traffic Noise Working Group to thank them for their participation. Members present to accept their commendation were Michael Bourgeault, Phil Burtis, Chris Kunze, Jeff Morin, Ed Mountford, Dave Porter, Gordon Smith and Mario Tabernig. 8. 18-380 Mayor Posey called on representatives from Orange County Transportation Authority (OCTA) to introduce the on-demand pilot program called "OC Flex." Johnny Dunning, Jr, Department Manager, Scheduling and Customer Advocacy, Orange County Transportation Authority (OCTA), presented a PowerPoint communication entitled OC Flex OCTA’s Micro-Transit Pilot Program, with slides titled: OC Flex — Service Background, OC Flex — On Demand Service, OC Flex — Vehicles, OC Flex — Fares, Marketing Strategies/Tactics, and Next Steps. Councilmembers and Mr. Dunning discussed several details about the program such as expected wait times, seat belts required for all passengers, fees, age limit of 13 to ride without an adult, and how this area was selected for the pilot program. 9. 18-381 Mayor Posey called on members of the Huntington Beach Police Officers’ Foundation to present a check from the Constable Classic Charity Golf Tournament to representatives from Talk About Curing Autism (TACA). 10. 18-389 Mayor Posey called on Huntington Beach Fire Chief David Segura who proclaimed National Fire Prevention Week October 7 through 13. Fire Chief Segura explained the Look, Listen, Learn theme of National Fire Prevention Week as: Look for places where fires could start; Listen for the sound of smoke alarms; and, Learn two ways out of every room. He thanked and acknowledged the City's Fire Prevention staff who focus on education and enforcement, and announced the Fire Department Annual Open House on Saturday, October 13, 10 am — 2 pm at the Gothard Fire Station with live demonstrations and tours. 11. 18-393 Mayor Posey called on Lindsey Zindroski from OC Makerspace, Chris Whiteside, Executive Dean from Golden West College, and John Hobson from Cielo and presented a proclamation declaring October 5 as National Manufacturers Day. Ms. Zindroski explained that National Manufacturers Day is an opportunity to acknowledge the importance of the manufacturing industry to Huntington Beach. Mr. Whiteside briefly described the manufacturing program offerings at Golden West College, and Mr. Hobson stated that modern day manufacturing includes many small businesses, which provide specialty support to bigger businesses. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Consent Calendar Item No. 12 — 18-367 Interdepartmental Communication from Robin Estanislau, City Clerk, entitled Supplemental Communication — Correction to Agenda Item #12 — City Council Draft Minutes dated 9/17/2018. 25 Public Hearing Item No. 18 — 18-332 PowerPoint communication submitted by Kellee Fritzal, Deputy Director Economic Development, entitled Amendment to HUD 2018-2019 Annual Action Plan for CDBG/HOME Programs. Ordinances for Introduction Item No. 19 — 18-337 PowerPoint communication submitted by Police Chief Robert Handy, entitled Oversized Vehicles - Ordinance 4155 - Amend HBMC 10.44. Item No. 19 — 18-337 Email communications regarding oversized vehicles received from Linda Peterson and Gina Borchers. Item No. 19 — 18-337 Memorandum from Police Chief Robert Handy providing a revised draft of Ordinance No. 4155. PUBLIC COMMENTS (3 Minute Time Limit) The number [hh:mm:ss] following the speakers' comments indicates their approximate starting time in the archived video located at http://www.surfcity-hb.org/government/agendas. Maureen was called to speak and shared her opinions and experiences regarding government employment processes and procedures as related to women. (00:32:01) Stephen Knight, resident of Huntington Beach and Vice Chair, Orange County Sober Living Coalition, was called to speak and shared information about sober living facilities and certifying agencies. (00:33:52) Mona Hansen, Downtown area resident, was called to speak and asked for help in addressing the huge bedroom windows facing her beach bungalow lot from the new three-story building going up adjacent to her property. Mayor Posey asked Ms. Hansen to complete a blue card for follow-up. (00:37:10) Bruce Allen, a resident living near Slater and Graham, was called to speak and described the exceptionally noxious gas smell in his neighborhood the previous night, and asked who knows what is really going on. Mayor Posey asked Mr. Allen to complete a blue card for follow-up. (00:40:03) KC Fockler, concerned citizen of Huntington Beach and candidate for City Council, was called to speak and stated his support for the Airport Noise Commission. He asked that an environmental impact study be part of the process because in his opinion, the issue is not just about noise, and also requested an update on the status of the City's proposed resolution from last February opposing new offshore drilling along the California coastline. (00:42:24) Teresa Carlisle, Chair, Huntington Beach Art Center Steering Committee, was called to speak and announced Surf City Arts Fest, a free event on Sunday, October 14th, 11 am — 4 pm, at the Huntington Beach Art Center and Triangle Park. (00:45:27) Denis Hollwedel, a resident of Huntington Beach and RV owner, was called to speak and shared his opposition to Ordinances for Introduction, Item 19 — 18-337, regarding Ordinance No. 4155 and the Police Department request for oversized vehicle parking limit changes. (00:46:41) 26 Yvonne Ansdell, resident of Huntington Beach and RV owner, was called to speak and shared her opposition to Ordinances for Introduction, Item 19 — 18-337, regarding Ordinance No. 4155 and the Police Department request for oversized vehicle parking limit changes. (00:49:30) COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES Councilmember Hardy reported that she received messages from the Huntington Beach Police Officers' Association (HBPOA). Councilmember Delgleize reported that she received messages from the Huntington Beach Police Officers' Association (HBPOA), shared her excitement about the OC Flex pilot program in Huntington Beach, and reported attending a meeting of the Santa Ana River Flood Protection Agency where it was explained that the improvements being made at the northern portion of the Santa Ana River will remove the Flood Insurance requirement for some areas of Huntington Beach. Public meetings to present details are being planned and will be announced when details are available. Councilmember Brenden reported attending a Homeless Task Force meeting and announced that Orange County has $14M available through the Homeless Emergency Aid Program (HEAP) for different service providers addressing homeless issues in Orange County. He attended a Long Beach Airport Commission meeting where it was reported that 59 percent (59%) of air traffic noise complaints in July came from Huntington Beach residents, a Public Cable Television Authority (PCTA) meeting where the topic of discussion was a new FCC regulatory ruling that dictates how much a city may charge to allow small cell equipment on street lights, and several Downtown Business Improvement District (DBID) meetings to discuss policy changes and other changes related to the DBID boundary changes made at the last City Council meeting, including re-starting the Board election process because four of the candidates are no longer BID members. He also reported attending the School District Quarterly Meeting where high school students were recognized for their participation in National Voter Registration Day on September 25, Community Services reported on the number of City programs that utilized School District swimming pools during the summer, and where it was announced that the Community College District would be conducting an earthquake drill on October 18th at 10:18 am. Councilmember O'Connell reported attending a Housing Community Development Commission meeting where discussion took place on Homeless Emergency Aid Program (HEAP) statewide $14M grant funds. He reported meeting with members of the Huntington Beach Firefighters' Association (HBFA) and Huntington Beach Police Officers' Association (HBPOA), and attended the successful court hearing for the Sanctuary State SB 54 case filed by City Attorney Michael Gates, which prevents the state's overreach in trying to control our local police department. Councilmember Semeta reported attending a Personnel Commission meeting where Dave Ellis and Bill Blair were welcomed as two new well-qualified commissioners, and she thanked them for serving the City. Mayor Posey reported meeting with members of the HBFA and HBPOA, and attending an Orange County Vector Control Board meeting where they reminded everyone that even water collected in a bottle cap is enough for mosquito larvae to form. He also reported no cases of West Nile Virus in Huntington Beach to date. 27 CITY MANAGER’S REPORT City Manager Wilson provided a brief recap of completed and upcoming Capital Improvement Projects such as concrete replacement, curb ramps, tree replacement, traffic signal enhancements, and the Shipley Nature Center parking lot. CONSENT CALENDAR Councilmember O'Connell asked to be recorded as a “No” vote on Item 17 — 18-368 regarding Ordinance No. 4160 amending the Huntington Beach Municipal Code. 12. 18-367 Approved and Adopted Minutes A motion was made by Peterson, second Delgleize to approve and adopt the City Council/Public Financing Authority regular meeting minutes dated September 17, 2018, as written and on file in the Office of the City Clerk, as amended by Supplemental Communication. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 13. 18-308 Approved and authorized execution of a 10-year Lease Agreement with Michael Ali, doing business as Zack’s Pier Plaza Beach Concession A motion was made by Peterson, second Delgleize to approve the "Lease Agreement Between the City of Huntington Beach and Michael Ali, DBA Pier Plaza Beach Concession;" and, authorize the Mayor, City Manager, and City Clerk to execute the agreement and other related documents. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 14. 18-353 Approved and authorized execution of Professional Services Contracts for On Call Transportation Engineering Services with Albert Grover & Associates, ADVANTEC Consulting Engineers, Inc., and FPL and Associates, Inc., each in an amount not to exceed $300,000 A motion was made by Peterson, second Delgleize to approve and authorize the Mayor and City Clerk to execute a $300,000 "Professional Services Contract Between the City of Huntington Beach and Albert Grover & Associates, Inc. for On Call Transportation and Engineering Services;" and, approve and authorize the Mayor and City Clerk to execute a $300,000 "Professional Services Contract Between the City of Huntington Beach and ADVANTEC Consulting Engineers, Inc. for On Call Transportation and Engineering Services;" and, approve and authorize the Mayor and City Clerk to execute a $300,000 "Professional Services Contract Between the City of Huntington Beach and FPL and Associates, Inc. for On Call Transportation and Engineering Services." The motion carried by the following vote: 28 AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 15. 18-363 Approved and authorized the Mayor and City Clerk to execute Professional Services Contracts for As Needed Building Plan Review Services with CSG Consultants, Inc., in the amount of $550,000; and, West Coast Code Consultants, Inc., in the amount of $200,000; and, approved an increase in the Community Development Department’s Professional Services listing Authority by $500,000 A motion was made by Peterson, second Delgleize to approve the increase in the Community Development Department's professional services listing authority by $500,000 for plan check services to ensure compliance with Administrative Regulation Number 228, Section 7.1; and, approve and authorize the Mayor and City Clerk to execute a three (3) Year "Professional Services Contract between the City of Huntington Beach and CSG Consultants, Inc. for Building Plan Review Services" in the amount of Five Hundred and Fifty Thousand Dollars ($550,000), as prepared and approved by the City Attorney; and, approve and authorize the Mayor and City Clerk to execute a three (3) Year "Professional Services Contract between the City of Huntington Beach and West Coast Code Consultants, Inc. for Building Plan Review Services" in the amount of Two Hundred Thousand Dollars ($200,000), as prepared and approved by the City Attorney. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 16. 18-336 Approved and authorized implementation of three (3) Tenant Based Rental Assistance (TBRA) Program Agreements between the City and Interval House, Mercy House, and Families Forward; and, approved increased budget appropriation A motion was made by Peterson, second Delgleize to approve and authorize the City Manager and City Clerk to execute a two-year "HOME Recipient Agreement Between the City of Huntington Beach and Interval House" for the implementation of a Tenant-Based Rental Assistance (TBRA) program; and, approve and authorize the City Manager and City Clerk to execute a two-year "HOME Recipient Agreement Between the City of Huntington Beach and Mercy House" for the implementation of a Tenant- Based Rental Assistance (TBRA) program; and, approve and authorize the City Manager and City Clerk to execute a two-year "HOME Recipient Agreement Between the City of Huntington Beach and Families Forward" for the implementation of a Tenant-Based Rental Assistance (TBRA) program; and, authorize the City Manager to sign all necessary documents to effectuate the Agreement with Interval House, Mercy House and Families Forward, any future minor amendments to contracts, and/or US Department of Housing and Urban Development (HUD) documents, as approved as to form by the City Attorney; and, approve an increased budget appropriation for the Affordable Housing In-Lieu Fee Fund in the amount of $257,350 (Fund 217). The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None 29 17. 18-368 Adopted Ordinance No. 4160 amending the Huntington Beach Municipal Code by amending Section 2.76.010 thereof related to exclusions from Competitive Service by adding the Classification of Deputy Director of Community Development (Approved for introduction September 17, 2018 - Vote: 7-0) A motion was made by Peterson, second Delgleize to adopt Ordinance No. 4160, "An Ordinance of the City of Huntington Beach Amending the Huntington Beach Municipal Code by Amending Section 2.76.010 Thereof Related to Exclusions From the Competitive Service" by adding the Deputy Director of Community Development. The motion carried by the following vote: AYES: Posey, Peterson, Brenden, Delgleize, Hardy, and Semeta NOES: O’Connell PUBLIC HEARING 18. 18-332 Public Hearing held to consider approval of Substantial Amendment No. 1 to Fiscal Year 2018-19 Annual Action Plan for the Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Programs; and, authorized appropriation of funds (Continued from 9-17-18) City Manager Fred Wilson introduced Deputy Director of Economic Development Kellee Fritzal who presented a PowerPoint communication entitled: Amendment to HUD 2018-2019 Annual Action Plan for CDBG/HOME Programs with slides entitled: Amendment to Action Plan (5) and Questions? Mayor Posey opened the Public Hearing. There being no public speakers, Mayor Posey closed the Public Hearing. A motion was made by O’Connell, second Delgleize to approve Substantial Amendment No. 1 to the City of Huntington Beach Fiscal Year 2018-19 Annual Action Plan for the Community Development Block Grant (CDBG) and HOME Investment Partnership Programs; and, authorize the City Manager to sign all necessary documents after review by the City Attorney; and, approve appropriation of $94,718 of HOME program income to Fund 1220. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None ORDINANCES FOR INTRODUCTION 19. 18-337 Approved for Introduction Ordinance No. 4155 amending Chapter 10.44 of the Huntington Beach Municipal Code (HBMC) relating to oversized vehicles City Manager Fred Wilson introduced Police Chief Handy who presented a PowerPoint communication, with the assistance of Traffic Control Supervisor Karissa Yniguez and Traffic Division Lieutenant Kent Ferrin, entitled Oversized Vehicles with slides titled: Pedestrian and Safety, RV Permit Required, 30 Oversized Vehicle, Permit Required, A Resident Only permit based system, RV Permit App On Line, Penalty increase for recurring violators, Reasonable proximity to a Park, Arterial Highway Exception, and Additional Changes. Councilmembers and Police Chief Handy discussed and confirmed several aspects of the proposed ordinance, including repeal of the 2- and 4-hour park area restrictions, permit availability for residents only, option for residents to request permits for guests with an oversized vehicle, commercial vs recreational vehicles, and monitoring for possible ripple effects from the proposed changes. They also discussed ensuring that resident ownership of an oversized vehicle is not required to secure a permit, the limited number of public and private parking lots available for visitors with oversized vehicles, how other coastal cities have or are implementing similar restrictions, and actions to inform the public of changes. A motion was made by Brenden, second Delgleize to, after the City Clerk reads by title, approve for introduction Ordinance No. 4155, "An Ordinance of the City of Huntington Beach Amending Chapter 10.44 of the Huntington Beach Municipal Code Relating to Parking - Time Limits," as amended by supplemental communication to revise language in Sections 10.44.060 A and 10.44.065 D. The motion carried by the following vote: AYES: O’Connell, Semeta, Peterson, Posey, Delgleize, Hardy, and Brenden NOES: None COUNCILMEMBER COMMENTS (Not Agendized) Councilmember Hardy reported attending the Police Department Open House, and thanked City Clerk Robin Estanislau for her efforts to assist students with coordinating the National Voter Registration Day event held at local high schools on September 25. Councilmember Delgleize thanked those who attended the Homeless 101 presentation by Orange County United Way at the Senior Center, and reported attending a Smart Cities panel discussion provided by the Association of California Cities - Orange County (ACC-OC). Councilmember Brenden reported that Murdy Park residents have taken back their park with the assistance of the Police Department, Public Works and Community Services. He also reported attending Huntington Beach Night at Angel Stadium, and the Kiwanis Officer Installation dinner. He announced important up-coming community events — Annual Gala for the Huntington Beach High School Foundation, Boys and Girls Club 40th Annual Gala, Golden West College Chefs for Scholarships event, Rotary Club Surfboards on Parade, Surfboard Builders Hall of Fame, Fire Department Open House, Ms. Huntington Beach Scholarship Pageant, and Surf City Arts Fest. Councilmember Brenden closed his remarks by stating he was wearing a pink tie to remind everyone that October is Breast Cancer Awareness Month. Councilmember Semeta reported attending a meeting of the Inter-governmental Relations Committee (IRC), a South East Area Community meeting with Councilmember Hardy, and announced the re- dedication of the Waterline Public Art installation at Pacific Coast Highway (PCH) and 5th Street on October 5 and 6, as well as the Aloha Pier Festival on the same dates. 31 Mayor Pro Tem Peterson reported being in Washington, DC, with expenses paid by Congress, to testify on House Bill HR5274 related to Sober Living/Recovery Treatment Homes to hopefully alleviate some of the Federal restrictions currently imposed on municipalities. Mayor Posey reported celebrating California Surfing Day and hosting a Townhall meeting on Sober Living Homes with Congressman Dana Rohrabacher, Orange County District Attorney Tony Rackauckas, Assemblymember Matthew Harper and Huntington Beach City Attorney Michael Gates. He attended the 50th Anniversary Celebration of Huntington Harbour Place and the Building Industry Association - Orange County (BIA-OC) Meet the Mayors event, presented the Welcome address for Mothers Against Drunk Driving Annual Teen Influencer Summit, and attended the Disaster Preparedness Expo hosted by the Huntington Beach Fire Department (HBFD) and Community Emergency Response Team (CERT) at Central Library. He participated in the 41st Old World Oktoberfest Parade along with Congressman Rohrabacher and Senator Janet Nguyen, presented a Mayoral Fast Pitch at a meeting of the Asian Businesses of Orange County, and announced that the Huntington Beach Women's Club is being restarted where he will make the Welcome address on Sunday, October 7th at 11 a.m. ADJOURNMENT — 7:45 PM The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Monday, October 15, 2018, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http://www.huntingtonbeachca.gov _____________________________________ City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach and Secretary of the Public Financing Authority of the City of Huntington Beach, California ATTEST: ______________________________________ City Clerk-Secretary ______________________________________ Mayor-Chair 32 City of Huntington Beach File #:18-328 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Kellee Fritzal, Deputy Director of Economic Development Subject: Approve and authorize execution of Second Amendment to Site License Agreement between the City of Huntington Beach and ATC Outdoor DAS, LLC; and , authorize the City Manager to substitute and/or increase pole locations as needed Statement of Issue: The City Council is asked to approve the Second Amendment to Site License Agreement with ATC Outdoor DAS, LLC to substitute 190 street light locations from the Site License Agreement and replace them with 190 new street light locations. Financial Impact: There is no financial impact to the City. Recommended Action: A) Approve and authorize the City Manager to execute “Second Amendment to Site License Agreement” with ATC Outdoor DAS, LLC; and, B) Authorize the City Manager to substitute pole locations as needed and increase pole locations by 10%, if needed. Alternative Action(s): Do no approve Second Amendment to Site License Agreement and direct staff accordingly. Analysis: On December 18, 2017, the City Council approved a Site License Agreement with Philips Lighting North America Corporation (“Philips”) for the removal and replacement of up to 200 street light poles with stealth smart poles. The City Council also approved an Amendment & Assignment Agreement consenting to the transfer of rights and obligations from Philips to ATC Outdoor DAS, LLC (“American Tower”). Since the approval of both agreements, American Tower has been in discussions with various carriers over the subleasing of the smart poles. As noted, ATC bears all infrastructure costs City of Huntington Beach Printed on 10/10/2018Page 1 of 2 powered by Legistar™33 File #:18-328 MEETING DATE:10/15/2018 and the City does not have any additional maintenance of the poles (City does maintain the street light). After receiving feedback from the wireless carriers, American Tower has requested that the original street locations from the Site License Agreement be replaced with new sites. The new locations are located primarily within the City’s Beach Parking Lot and along Pacific Coast Highway from Main Street to Goldenwest Street. Staff has worked with Public Works, Community Services, City Manager’s Office, and Community Development. The infrastructure deployment for the Beach parking lot and Main Street will be completed within one phase. Environmental Status: Not applicable Strategic Plan Goal: Strengthen economic and financial sustainability Attachment(s): 1. Second Amendment to Site License Agreement with ATS Outdoor DAS, LLC City of Huntington Beach Printed on 10/10/2018Page 2 of 2 powered by Legistar™34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 City of Huntington Beach File #:18-361 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Gilbert Garcia, Chief Financial Officer Subject: Approve and authorize execution of a three-year contract with InfoSend, Inc. to provide Utility Bill Statement Design, Print, Mail and Electronic Delivery Service Statement of Issue: City Council approval is requested for a three-year contract with InfoSend, Inc. to provide utility bill design, print, sorting, bill inserting, and electronic delivery or mailing of documents, including, but not limited to: utility bills (water, sewer, refuse, and FireMed),as well as business license tax certificates and renewal notices for both residential and commercial customers. Financial Impact: Sufficient appropriations are budgeted in the current fiscal year in the Finance Department accounts 10035206.63395 (Postage) and 10035206.69505 (Printing Services) in the amount of $219,000 and $86,000, respectively for a total of $305,000. Funds for future years will be budgeted accordingly. Over a three-year period, the total amount of this contract is $978,000, or approximately $326,000 per year. $47,000 of the total contract is to cover citywide printing service and insertion fees for any requested inserts going into the City’s utility or business license billing distribution and will be funded through various department’s budgets as needed. No additional appropriations are requested Recommended Action: Approve and authorize the Mayor and City Clerk to execute “Service Agreement Between the City of Huntington Beach and InfoSend, Inc. for Bill Statement Printing, Processing and Delivery Services” in an amount not to exceed $978,000 over a three-year term; and authorize the City Manager to execute the attached contract. Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis: The City of Huntington Beach Finance Department manages the processing, printing, and mailing City of Huntington Beach Printed on 10/10/2018Page 1 of 3 powered by Legistar™69 File #:18-361 MEETING DATE:10/15/2018 operations for the following City services: utility billing (water, sewer, refuse, and FireMed), delinquent notices and billing inserts, as well as business license tax certificates and renewal notices. The City has been contracting with a third party vendor, InfoSend, Inc. to process, print, and mail Municipal Services bills since 2003. In May of 2018, the Finance Department conducted an RFP for “Professional Bill Statement Print and Processing Services.” The City received proposals from five vendors, including the current vendor, InfoSend, Inc. Proposals were reviewed for methodology, a conversion plan (if a new vendor was to be selected), and cost. The City also annualized costs to arrive at estimated printing and processing fees. Between Municipal Services and Business License activities, approximately 573,800 billings are produced annually. Vendor Total 3 Year Cost InfoSend $ 978,000 Data Center $ 990,000 QuestMark $ 1,300,000 Ricoh $ 1,300,000 T/O Printing $ 1,500,000 *Estimated costs are rounded to the nearest thousand. Based on current production volumes and the proposed pricing, printing services and materials are estimated at $258,000. Postage is estimated at $673,000 over three years. Fees related to inserting various approved flyers into the City’s billing (utility and business license) will be absorbed citywide and are estimated at $47,000 over the three-year period. Therefore, staff recommends a three-year agreement with InfoSend, Inc. not to exceed $978,000. The following chart details the breakdown of the contract. Estimated Costs Year 1 Year 2 Year 3 Three-Year Total Printing Services 86,000$ 86,000$ 86,000$ 258,000$ Postage*219,000$ 224,000$ 230,000$ 673,000$ Citywide Inserts**N/A N/A N/A 47,000$ Total 305,000.00$ 310,000.00$ 316,000.00$ 978,000.00$ * Postage includes an annual 1.9% increase. ** Estimated amount to cover citywide inserts to be funded through various department budgets as needed. Company Background InfoSend, Inc. was founded in 1996 and provides print and mailing services for over 400 City of Huntington Beach Printed on 10/10/2018Page 2 of 3 powered by Legistar™70 File #:18-361 MEETING DATE:10/15/2018 organizations across the U.S. Their corporate headquarters and main production facility are located in Anaheim, CA. InfoSend solely owns and operates its data processing, printing, and mailing platforms and has recently expanded its manufacturing environment to include envelope production. This will allow material costs to remain stable and considerably lower than its competitors. Additionally, the United States Postal Service (USPS) established a Detached Mail Unit (DMU) at InfoSend’s production facility. Meaning, USPS personnel are at the production facility to inspect all of the outbound first class mail. After the mail is inspected, it is cleared directly from InfoSend into the USPS system, thereby removing the need for the mail to be inspected after delivery and expediting mail turnaround and delivery time. InfoSend support staff have been providing the City with prompt and excellent customer service since 2003. Additionally, InfoSend has held their cost for paper and envelopes steady for the past three years and has agreed to hold those prices steady for another three years. Environmental Status: Not Applicable. Strategic Plan Goal: Enhance and Maintain City Service Delivery Attachment(s): 1. Service Agreement Between the City of Huntington Beach and InfoSend, Inc. for Bill Statement Printing, Processing, and Delivery Services. 2. Certificate of Insurance City of Huntington Beach Printed on 10/10/2018Page 3 of 3 powered by Legistar™71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 City of Huntington Beach File #:18-364 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Travis K. Hopkins, PE, Director of Public Works Subject: Approve and authorize execution of Orange County Transportation Authority's (OCTA) Utility Agreement No. UK048088 for the relocation of the City of Huntington Beach Sugar Drive Water Pipeline, CC-1585, for the 405 Widening Project Statement of Issue: The Orange County Transportation Authority (OCTA) in cooperation with the California Department of Transportation (Caltrans) is proposing to improve Interstate 405 between State Route 73 and Interstate 605. As a part of this project, OCTA will need to relocate the City of Huntington Beach potable water pipeline located on Sugar Drive Pipe, CC-1585, adjacent to the McFadden Avenue overpass at the I-405 highway. This Utility Agreement (UA) acknowledges that the City has prior rights for this pipeline, which obligates OCTA to pay for the relocation. Financial Impact: The UA allows OCTA to reimburse the City for all actual engineering review, inspection, staff time, and other expenses incurred during the construction of this pipeline. Staff has estimated the total costs of the relocation to the City of Huntington Beach at $11,906. These costs are included in the FY 18-19 budget under business unit 50685201. These costs will be reimbursed by OCTA on a time and material basis as invoiced by City Staff at the time the services are provided. The UA also requires the City to provide a credit to OCTA for the depreciation of pipeline being replaced. The depreciation credit for the Sugar Drive pipeline is $721. The UA subtracts the depreciation credit from the estimate of expenses that will be incurred by the City, to obtain a total cost to OCTA. Recommended Action: Authorize the Mayor and City Clerk to execute “Orange County Transportation Authority Utility Agreement UK048088” and to return all signed original agreements to OCTA for their final approval. Alternative Action(s): Do not authorize the Utility Agreement and direct staff with an alternate action. Analysis: The Interstate 405 (I-405) freeway improvement project has been developed by OCTA in cooperation City of Huntington Beach Printed on 10/10/2018Page 1 of 2 powered by Legistar™96 File #:18-364 MEETING DATE:10/15/2018 The Interstate 405 (I-405) freeway improvement project has been developed by OCTA in cooperation with Caltrans and local agencies to improve capacity and facility operations between State Route 73 and Interstate 605. The project is primarily funded by Renewed Measure M (M-2) and has been approved for a design-build approach. As a part of this project, three (3) existing potable water pipelines will require relocation and/or modifications. These potable water pipelines are located at Newland Street and the I-405, Edinger Avenue and the I-405, and at Sugar Drive (McFadden Avenue) and the I-405. On February 6, 2017, the Huntington Beach City Council approved two similar Utility Agreements for the pipelines located on Newland Street and on Edinger Avenue. The pipeline relocation on Sugar Drive is entirely within the City of Huntington Beach right-of-way. Since the relocation of the Sugar Drive pipeline is solely for the convenience of the OCTA project, OCTA is responsible for the costs associated with the pipeline relocation. The final engineering design plans will be provided by OCTA’s Design-Build contractor. The following table summarizes the calculation of reimbursements to the City. Description OCTA Utility Agreement No. /City Project CC# Estimated City’s Engineering Inspection, and Water Utility Cost (Reimbursable) “A” Depreciation Credit Calculated per Chapter 13 of the State High Way Manual S&H Code 705 Credit to OCTA (Cost to City) “B” Net Estimated Costs to OCTA = A - B 8-inch Pipe in Sugar Ave. (McFadden & I- 405) UK048088 /C C1583 $11,906.06 $721.00 $11,185.06 This agenda item does not require Public Works Commission Action. Environmental Status: Not applicable. Strategic Plan Goal: Enhance and maintain infrastructure Strengthen economic and financial sustainability Attachment(s): 1. Location Map 2. Two (2) sets of Orange County Transportation Authority Utility Agreement No. UK 048088. 3. Depreciation Credit for the Sugar Drive Pipeline, UK 048088. 4. City of Huntington Beach Estimate of Cost to Relocate the Sugar Drive Pipeline. City of Huntington Beach Printed on 10/10/2018Page 2 of 2 powered by Legistar™97 98 99 100 101 102 103 104 City of Huntington Beach Estimate of Pipeline Depreciation Cost for OCTA Project Depreciation Calculated in accordance with Caltrans R/W Manual Table 13.04‐5 CN8088 8‐inch Sgar Ave Pipeline OCTA 100% liable for relocation costs 1,327.26$ 56 LF of 8‐inch diameter ACP, installed in 1961 Estimate of Facility Life 105 years Age of Facility 57 years As built date March 24, 1961 Percentage of pipe life used 54% Depreciation credit to OCTA $721 Estimate installation cost of 8" ACP in 1963. 2017 cost for 8" DR18 PVC with 5 feet of cover installed  was $72/lf OCTA will replace 56 LF of 8‐inch ACP. $72/LF * 56 LF = 4,032.00$  Depreciate the cost of pipe installation by 2% per year for 55 years (1‐.02)^55= 0.3291805 1,327.26$  2011 AWWA "Buried No Longer: Confronting American's Water  Infrastructure Challenge, Figure 5, Estimated Service Lives by Pipe Material Estimated Pipeline Installation  Costs Estimate of Cost  1963 105 Revised: August 22, 2018CN‐8088CC 1522 8‐INCH CITY OF HUNTINGTON BEACH RELOCATION, OCTA CN‐8088Estimate of costs for preparation of preliminary relocation design.TASK DESCRIPTIONUTILITY MANAGERPRINCIPAL ENGINEERSENIOR ENGINEERWATER DISTRIBUTION SUPERVISORWATER INSPECTORWATER CREW LEADERWATER QUALITY SUPERVISORWATER DIST LEADWORKERTOTAL COSTExisting Utility Research1 2Attend OCTA Meetings3 5 2Correspondance with OCTA211Plan Review1 2 52Inspection/Construction Support2540101010Total Hours6 9 12740101010Total Cost958.56$    1,402.47$ 1,578.12$ 812.91$            4,181.20$        950.80$          1,161.30$        860.70$           11,906.06$    Hourly Rates159.76$    155.83$    131.51$    116.13$            104.53$            95.08$            116.13$           86.07$             106 City of Huntington Beach File #:18-412 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Marie Knight, Director of Community Services Subject: Approve and authorize execution of a Joint Use Agreement between the City of Huntington Beach and the Westminster School District (WSD) for Clegg/Stacey Park, 6161 Larchwood Drive, Huntington Beach Statement of Issue: There is a need to approve a Joint Use Agreement between the City of Huntington Beach (City) and Westminster School District. Financial Impact: Not applicable. Recommended Action: Approve and authorize the Mayor and City Clerk to execute a “Joint Use Agreement Between the City of Huntington Beach and the Westminster School District.” Alternative Action(s): Do not approve agreement between City and the Westminster School District and direct staff accordingly. Analysis: At the request of the Westminster School District (WSD) a Joint Use Agreement between the City and the Westminster School District (WSD) for Clegg/ Stacey and Franklin Parks was terminated. Both parks were developed and are maintained by the City, but located on WSD property. WSD requested the termination since there was a need to remove Franklin Park from the agreement due to a pending transfer of the former Franklin School site to a private developer and dedication of the park property to the City. A new Joint Use Agreement has been prepared for Clegg/Stacey Park . Under the terms of a Joint Development Agreement, the City constructed Clegg/ Stacey Park starting City of Huntington Beach Printed on 10/10/2018Page 1 of 2 powered by Legistar™107 File #:18-412 MEETING DATE:10/15/2018 in 1971 and it was dedicated as a public park on April 8, 1972. Since that time, the City has operated and maintained the park for public use under the terms of various agreements with WSD. Clegg/ Stacey Park located at 6161 Larchwood Drive is in the northwest part of the City. In 2016, the City installed a new play unit at the park to replace a more than 20-year old unit that was beyond repair. Staff has worked closely with WSD Administration on the new agreement with cooperative terms to both parties. The terms of the new agreement will maintain the general conditions of past agreements and, more specifically addresses the park improvements. Staff is , therefore, recommending approval of the Joint Use Agreement. Environmental Status: Not applicable Strategic Plan Goal: Improve quality of life Attachment(s): 1. Joint Use Agreement between the City of Huntington Beach and the Westminster School District City of Huntington Beach Printed on 10/10/2018Page 2 of 2 powered by Legistar™108 109 110 111 112 113 114 115 116 117 118 119 120 City of Huntington Beach File #:18-413 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Kellee Fritzal, Deputy Director of Economic Development Subject: Approve and authorize execution of a Small Cell License Agreement between the City and Mobilitie, LLC; and, approve the First Amendment to the Small Cell License Agreement between the City and new Cingular Wireless PCS, LLC, dba AT&T Mobility on City-owned street lights Statement of Issue: The City Council is asked to approve and authorize the execution of a Small Cell License Agreement between the City of Huntington Beach and Mobilitie LLC (“Mobilitie”) to allow the installation of up to 32 wireless attachments on City-owned streetlights. In addition, the City Council is asked to approve and authorize the execution of the First Amendment to Small Cell License Agreement between the City of Huntington Beach and New Cingular Wireless PCS, LLC doing business as AT&T Mobility (“AT&T”) to allow the installation of up to nine wireless attachments on City-owned streetlights. Financial Impact: The Small Cell License Agreement with Mobilitie will generate $64,000 in annual rental revenue when all small cell attachments are installed. The First Amendment to Small Cell License Agreement with AT&T will increase revenues by $18,000 annually upon full deployment. Revenues from both agreements will be placed into the General Fund. Recommended Action: A) Approve the “Small Cell License Agreement” between the City of Huntington Beach and Mobilitie LLC; and, B) Approve the First Amendment to Small Cell License Agreement between the City of Huntington Beach and new Cingular Wireless PCS, LLC, doing business as AT&T Mobility, approved as to form by the City Attorney; and, City of Huntington Beach Printed on 10/10/2018Page 1 of 3 powered by Legistar™121 File #:18-413 MEETING DATE:10/15/2018 C) Authorize the City Manager, with review by the City Attorney, to increase up to 10% and substitute pole locations on an as needed basis, for both agreements. Alternative Action(s): Do not approve Small Cell License Agreement and/or First Amendment to Small Cell License Agreement and direct staff accordingly. Analysis: On August 7, 2017, the City Council adopted Zoning Text Amendment (ZTA) No. 17-003 to amend the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) Section 230.69 which revised the review process in which pole mounted small cell sites are reviewed in accordance with City design standards and approved with the issuance of a Site Permit. The City has finalized its acquisition of the nearly 11,000 streetlights from Southern California Edison, upon which carriers will mount their small cell sites. The ZTA streamlined the process in which small cell sites are deployed on non-City owned utility poles and City-owned streetlight poles. The ZTA requires that any wireless carrier interested in mounting a small cell facility on a City-owned streetlight must enter into a separate Small Cell License Agreement (“Agreement”) with the City. Mobilitie Mobilitie has expressed interest in entering into an Agreement to install up to 32 small cell wireless attachments onto City-owned street lights. The terms of the Agreement are summarized below: ·Term:Five years ·Option:One additional five-year extension ·Base Monthly Rent: $2,000/pole/year ·Increases: Annual CPI increase or 2%, whichever is greater The agreed upon base monthly rent with Mobilitie LLC is consistent with the results of the market study. Staff recommends approval of the Small Cell License Agreement with Mobilitie LLC. AT&T On April 16, 2018, the City Council approved a Small Cell License Agreement with AT&T to allow the installation of up to 16 small cell wireless attachments on City-owned street lights, in accordance with the City’s Wireless Ordinance. AT&T has requested an additional nine (9) street light locations to be added to the Agreement in order to address gaps in wireless coverage within the City. The terms of the First Amendment are summarized below: ·Base Monthly Rent: $2,000/pole/year ·Increases: 3% annually Environmental Status: Not applicable City of Huntington Beach Printed on 10/10/2018Page 2 of 3 powered by Legistar™122 File #:18-413 MEETING DATE:10/15/2018 Strategic Plan Goal: Strengthen economic and financial sustainability Attachment(s): 1. Small Cell License Agreement between the City of Huntington Beach and Mobilitie, LLC. 2. First Amendment to Small Cell License Agreement with AT&T. City of Huntington Beach Printed on 10/10/2018Page 3 of 3 powered by Legistar™123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 City of Huntington Beach File #:18-401 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Antonia Graham, Assistant to the City Manager Subject: Approve City Council position on legislation pending before the State Legislature and Congress as recommended by the City Council Intergovernmental Relations Committee (IRC); and, authorize City staff and the City’s State Advocate to work with State legislators and County of Orange staff on crafting potential legislative language to examine the State’s property tax apportionment system Statement of Issue: On September 26, 2018, the Intergovernmental Relations Committee met to discuss Federal and State legislation. Additionally, a discussion was held on the current property tax apportionment system and how the City could benefit from changes to the system. This action requests City Council authorization for the Mayor to sign formal position letters. Financial Impact: There is no fiscal impact. Recommended Action: A) Approve a City position of support on H.R. 5724 (Rohrabacher) Restoring Community Oversight of Sober Living Homes Act of 2018; and, B) Approve a City position of Oppose on recently introduced proposed Bureau of Cannabis Control Regulations; and, C) Authorize City staff and the City’s State Advocate to work with State legislators and County of Orange staff on crafting potential legislative language to examine the State’s property tax apportionment system. Alternative Action(s): Do not approve the recommended actions and direct staff accordingly. Analysis: The Intergovernmental Relations Committee (IRC) met on September 26, 2018, to discuss Federal, City of Huntington Beach Printed on 10/10/2018Page 1 of 3 powered by Legistar™159 File #:18-401 MEETING DATE:10/15/2018 State, and regional legislative issues. The Committee reviewed the 2108 State Legislative Matrix provided by the City’s State Advocate, Townsend Public Affairs, discussed FCC regulations as they pertain to small cell siting, and discussed regional issues facing the City. The following is an analysis of bills/issues that the IRC voted to take a formal position on: Ø SUPPORT - H.R. 5724 (Rohrabacher) Restoring Community Oversight of Sober Living Homes Act of 2018 - This bill would assert that no federal law can prohibit state or local governments from implementing laws that specifically apply to sober living homes in residential zones, including prohibition of such facilities. Additionally, this bill would limit eligibility - meaning that sober living homes would be eligible for funding from federal health programs only if (1) they are compliant with state and local zoning laws and (2) the relevant local jurisdiction certifies to the United States Department of Health and Human Services that the facility complies with those laws. This bill seeks to amend the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA). This bill is a step in the right direction and would enable the City to have more control over sober living facilities in the City. Ø OPPOSE - Bureau of Cannabis Control Proposed Regulations - In July 2018, the Bureau of Cannabis Control (BCC) released proposed regulations seeking to codify the emergency regulations implemented in December 2017. The City opposes two changes that are in direct conflict with both the language and the intent of Proposition 64 and will undermine our ability to effectively regulate cannabis at the local level. Section 5416(d), would drastically preempt local control and regulatory authority by authorizing cannabis delivery anywhere in the State regardless of conflicting local regulations or bans. Further, Sections 5001(c)(11) and 5002 (c) (28) undermine the ability of local agencies to ensure community standards are met by reducing from 60 to 10 days the period to verify if a licensee has obtained necessary local approvals. The purpose and intent provisions of Proposition 64 expressly recognize the value of local control in regulating commercial cannabis activity. In brief, it provides that “it is the intent of the People in enacting this Act to…[a]llow local governments to ban nonmedical marijuana businesses.” Thus, under existing law - as articulated in Proposition 64, and now, through these regulations - local governments can adopt and enforce local ordinances to ban or regulate all commercial cannabis activity, including deliveries, within their borders. Section 5416(d), as proposed, fundamentally alters this pillar of Proposition 64 by implying that cannabis deliveries are allowed in violation of local ordinances. Further, an influx of unapproved local cannabis deliveries will decrease transparency of cannabis operations and increase public safety obligations and costs for local law enforcement agencies. By allowing deliveries in each jurisdiction in California, the BCC is fundamentally changing Proposition 64, not simply clarifying existing law. Property Tax Apportionment System for Orange County At the IRC meeting, the two members present (Mayor Posey and Council Member Semeta) discussed the property tax apportionment system for the County. Forty years ago, in 1978,voters passed Proposition 13 and dramatically altered the course of state and local government finances in California. In addition to capping property tax rates at 1 (one) percent, Proposition 13 changed the City of Huntington Beach Printed on 10/10/2018Page 2 of 3 powered by Legistar™160 File #:18-401 MEETING DATE:10/15/2018 California. In addition to capping property tax rates at 1 (one) percent, Proposition 13 changed the method for determining the taxable value of real property. Namely, it replaced the property tax based on market value with one based on acquisition value. In 1978, Orange County did not have the real estate development that it has now so the base value was low and thus categorized as “Rural”,thereby reducing the amount of property tax revenue that came back to its municipalities when compared to other more urbanized counties at the time. Many scholars have noted the inequity and inefficiency of consequences of Proposition 13. In response, policymakers and analysts have suggested revisiting the acquisition-based method of property tax assessment. The Committee voted to work with State legislators and the County to create a legislative path forward that would revisit this method and bring equity in property tax revenue apportionments back to Orange County and, thus, the City of Huntington Beach. Environmental Status: Not Applicable. Strategic Plan Goal: Improve quality of life Enhance and maintain public safety Strengthen economic and financial sustainability Attachment(s): 1. H. R. 5724 (Rohrabacher) Restoring Community Oversight of Sober Living Homes Act of 2018 2. Bureau of Cannabis Control Proposed Text of Regulations City of Huntington Beach Printed on 10/10/2018Page 3 of 3 powered by Legistar™161 162 163 164 165 BUREAU OF CANNABIS CONTROL PROPOSED TEXT OF REGULATIONS CALIFORNIA CODE OF REGULATIONS TITLE 16 DIVISION 42. BUREAU OF CANNABIS CONTROL All of the proposed text sections and documents incorporated by reference are proposed to be added to the California Code of Regulations under Division 42 of Title 16: Chapter 1. ALL BUREAU LICENSEES Article 1. Division Definitions § 5000. Definitions For the purposes of this division, the definitions in this section shall govern the construction of this division unless otherwise indicated. (a)“Act” means the Medicinal and Adult-Use Cannabis Regulation and Safety Act. (b)“Bureau” means the Bureau of Cannabis Control, previously named the Bureau of Marijuana Control, Bureau of Medical Cannabis Regulation, and Bureau of Medical Marijuana Regulation. (c)“Cannabis accessories” has the same meaning as in Health and Safety Code section 11018.2. (d) “Cannabis goods” means cannabis, including dried flower, and products containing cannabis. (e) “Cannabis waste” means waste that is not hazardous waste, as defined in Public Resources Code section 40141, and is organic waste, as defined in Public Resources Code section 42649.8 (c), that contains cannabis and that has been made unusable and unrecognizable in the manner prescribed in sections 5054 and 5055 of this division. (f) “Canopy” means the designated area(s) at a licensed premises that will contain mature plants at any point in time. (g) “Delivery employee” means an individual employed by a licensed retailer or licensed microbusiness who delivers cannabis goods from the licensed retailer or licensed microbusiness premises to a customer at a physical address. (h) “Free cannabis goods” means any amount of cannabis goods provided to any person without cost or payment or exchange of any other thing of value. (i)“Kief” means the resinous trichomes of cannabis that have been separated from the cannabis plant. (j) “Limited-access area” means an area in which cannabis goods are stored or held and is only accessible to a licensee and its employees and contractors. Bureau of Cannabis Control Regular Regulations Text Page 1 of 136 166 (k) “Lot number” or “batch number” means a distinctive group of numbers, letters, or symbols or any combination of these that is unique to a group of cannabis goods. (l) “Medicinal cannabis patient” includes both a qualified patient as defined in Health and Safety Code section 11362.7 and, a person in possession of a valid identification card issued under Health and Safety Code section 11362.71. (m) “Nonvolatile solvent” means any solvent used in the extraction process that is not a volatile solvent. For purposes of this division, a nonvolatile solvent includes carbon dioxide (CO2) used for extraction and ethanol used for extraction or post-extraction processing. (n) “Package” and “Packaging” means any container or wrapper that may be used for enclosing or containing any cannabis goods for final retail sale. “Package” and “packaging” does not include a shipping container or outer wrapping used solely for the transport of cannabis goods in bulk quantity to a licensee. (o) “Pre-roll” means any combination of the following rolled in paper: flower, shake, leaf, or kief that is obtained from accumulation in containers or sifted from loose, dry cannabis flower or leaf with a mesh screen or sieve. (p) “Publicly owned land” means any building or real property that is owned by a city, county, state, federal, or other government entity. (q) “Residential area” is an area that is within 600 feet of any single-family or multifamily residence, other than commercial hotels, motels, and similar establishments for temporary lodging. (r) “Retail area” means a building, room, or other area that is open to the public, upon the licensed retailer or licensed microbusiness premises in which cannabis goods are sold or displayed. (s) “Sublet” means to lease or rent all or part of a leased or rented property. (t) “Transport” means the physical movement of cannabis goods from one licensed premises to another licensed premises. (u) “Vehicle alarm system” is a device or series of devices installed to discourage theft of the vehicle or its contents and is intended to summon general attention or to summon law enforcement as a result of an indication of an attempted breach of the vehicle. Authority: Section 26013, Business and Professions Code. Reference: Section 26013, Business and Professions Code. Article 2. Applications § 5001. Temporary License Application Requirements (a)Temporary license applications may be completed and submitted online at www.bcc.ca.gov or completed in hard copy and submitted by delivering a printed copy to the Bureau’s office(s). Bureau of Cannabis Control Regular Regulations Text Page 2 of 136 167 (b)Applicants who submit their applications online shall first register for a user account. To register for a user account, the applicant shall do all of the following: (1)Create a user name, password, and security question and answer; (2)Provide an email address; and (3)Provide the owner’s first and last name, primary phone number, social security number or individual taxpayer identification number, date of birth, and mailing address. (c)An application must be completed by an owner as defined by section 5003 of this division. An application must be submitted to the Bureau for each temporary license applied for. An application for a temporary license includes: (1)The legal business name of the applicant. (2)The email address of the applicant’s business and the telephone number for the premises. (3) The business’ federal employer identification number. (4)A description of the business organizational structure of the applicant, such as partnership or corporation. (5) The commercial cannabis license that the applicant is applying for, and whether the applicant is requesting that the license be designated as medicinal, adult-use, or both. Testing laboratory applicants do not have to designate medicinal or adult-use, as testing laboratory licenses allow the holder to test both medicinal and adult-use cannabis. (6)The contact information for the applicant’s designated primary contact person including the name, title, phone number, and email address of the individual. (7) For each owner who meets the criteria of Business and Professions Code section 26001(al), the owner’s name, title, percentage of ownership, mailing address, telephone number, and email address if applicable. (8)The physical address of the premises to be licensed. (9)Evidence that the applicant has the legal right to occupy and use the proposed location that complies with section 5007 of this division. (10)A premises diagram pursuant to section 5006 of this division. (11)A copy of a valid license, permit, or other authorization issued by a local jurisdiction, that enables the applicant to conduct commercial cannabis activity at the location requested for the temporary license. For purposes of this section, “other authorization” shall include, at a minimum, a written statement or reference that clearly indicates the local jurisdiction intended to grant permission for the commercial cannabis activity or to the person to conduct commercial cannabis activity at the premises. Upon receipt of the application, the Bureau shall contact the Bureau of Cannabis Control Regular Regulations Text Page 3 of 136 168 applicable local jurisdiction to confirm the validity of the authorization. If the local jurisdiction does not respond within 10 calendar days, the Bureau shall consider the authorization valid. (12)Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true, and accurate. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the license, or revocation of a license issued. (d)A temporary license is a conditional license that authorizes the licensee to engage in commercial cannabis activity as would be permitted under the privileges of a non-temporary license of the same type. A temporary licensee shall follow all applicable rules and regulations as would be required if the licensee held a non-temporary license of the same type. (e)A temporary license does not obligate the Bureau to issue a non-temporary license nor does the temporary license create a vested right in the holder to either an extension of the temporary license or to the granting of a subsequent non-temporary license. (f)A temporary license issued under this section shall be valid for 120 days from the effective date. No temporary license shall be effective prior to January 1, 2018. (g)A temporary license may be extended by the Bureau for additional 90-day periods if a complete application for an annual license has been submitted to the Bureau pursuant to section 5002 of this division prior to the initial expiration date of the temporary license. (h) The Bureau shall not issue any temporary licenses or extensions after December 31, 2018. Any temporary license issued or extended with an expiration date after December 31, 2018 will be valid until it expires, but shall not be extended beyond the expiration date. Authority: Section 26013, Business and Professions Code. Reference: Section 26012 and 26050.1, Business and Professions Code. § 5002. Annual License Application Requirements (a)Applications may be completed and submitted online at www.bcc.ca.gov or completed in hard copy and submitted by delivering a printed copy to the Bureau’s office(s). (b)Applicants who submit their applications online shall first register for a user account. To register for a user account, the applicant shall do all of the following: (1)Create a user name, password, and security question and answer; (2)Provide an email address; and (3) Provide the owner’s first and last name, primary phone number, social security number or individual taxpayer identification number, date of birth, and mailing address. (c)An application must be completed by an owner as defined by section 5003 of this division. An application must be submitted to the Bureau for each location and each license type. An application for an annual cannabis license includes the following: Bureau of Cannabis Control Regular Regulations Text Page 4 of 136 169 (1)The name of the applicant. For applicants who are individuals, the applicant shall provide both the first and last name of the individual. For applicants who are business entities, the applicant shall provide the legal business name of the applicant. (2) If applicable, the business trade name (“DBA”) of the applicant. (3) The commercial cannabis license that the applicant is applying for, and whether the applicant is requesting that the license be designated as medicinal, adult-use, or both. Testing laboratory applicants do not have to designate medicinal or adult-use, as testing laboratory licenses allow the holder to test both medicinal and adult-use cannabis. (4)Payment of an application fee pursuant to section 5014 of this division. (5)Whether the owner is serving or has previously served in the military. Disclosure of military service is voluntary. An applicant who has served as an active duty member of the Armed Forces of the United States and was honorably discharged and who can provide evidence of such honorable discharge shall have his or her application expedited pursuant to Business and Professions Code section 115.4. (6)A list of the license types and the license numbers issued from the Bureau and all other state cannabis licensing authorities that the applicant holds, including the date the license was issued and the licensing authority that issued the license. (7)Whether the applicant has been denied a license or has had a license suspended or revoked by the Bureau or any other state cannabis licensing authority. The applicant shall provide the type of license applied for, the name of the licensing authority that denied the application, and the date of denial. (8)The physical address of the premises. If the Bureau is unable to confirm that the address provided is valid, then the applicant shall provide a document that confirms the physical address of the premises. Such a document may include a utility bill, printed information from the county assessor, deed, or title. (9)The mailing address for the applicant, if different from the premises address. (10)The telephone number for the premises. (11)The website address and email address of the applicant’s business. (12)The business’ federal employer identification number. (13)Contact information for the applicant’s designated primary contact person including the name, title, phone number, and email address of the individual. (14)A description of the business organizational structure of the applicant, such as partnership or corporation. (15)The business-formation documents, which may include, but are not limited to, articles of incorporation, operating agreements, partnership agreements, and fictitious business name statements. The applicant shall also provide all documents filed with the California Secretary of Bureau of Cannabis Control Regular Regulations Text Page 5 of 136 170 State, which may include, but are not limited to, articles of incorporation, certificates of stock, articles of organization, certificates of limited partnership, and statements of partnership authority. If the commercial cannabis business is held in trust, the applicant shall provide a copy of the trust. (16)A list of every fictitious business name the applicant is operating under including the address where the business is located. (17)A commercial cannabis business that is a foreign corporation shall include in its application the certificate of qualification issued by the Secretary of State of California. (18)The applicant shall supply the following financial information: (A)A list of funds belonging to the applicant held in savings, checking, or other accounts maintained by a financial institution. The applicant shall provide, for each account, the financial institution’s name, the financial institution’s address, account type, account number, and the amount of money in the account. (B) A list of loans made to the applicant. For each loan, the applicant shall provide the amount of the loan, the date of the loan, term(s) of the loan, security provided for the loan, and the name, address, and phone number of the lender. (C)A list of investments made into the applicant’s commercial cannabis business. For each investment, the applicant shall provide the amount of the investment, the date of the investment, term(s) of the investment, and the name, address, and phone number of the investor. (D)A list of all gifts of any kind given to the applicant for its use in conducting commercial cannabis activity. For each gift, the applicant shall provide the value of the gift or description of the gift, and the name, address, and phone number of the provider of the gift. (19)A complete list of every individual who has a financial interest in the commercial cannabis business as defined in section 5004 of this division, who is not an owner as defined in section 5003(b) of this division. (20)A complete list of every owner of the applicant as defined in section 5003(b) of this division. Each individual named on this list shall submit the following information: (A)The full name of the owner. (B)The owner’s title within the applicant entity. (C)The owner’s date of birth and place of birth. (D)The owner’s social security number or individual taxpayer identification number. (E)The owner’s mailing address. (F)The owner’s telephone number. This may include a number for the owner’s home, business, or mobile telephone. Bureau of Cannabis Control Regular Regulations Text Page 6 of 136 171 (G)The owner’s email address. (H)The owner’s current employer. (I)The percentage of the ownership interest held in the applicant entity by the owner. (J)Whether the owner has an ownership or a financial interest as defined in sections 5003 and 5004, respectively, of this division in any other commercial cannabis business licensed under the Act. (K)A copy of the owner’s government-issued identification. Acceptable forms of identification are a document issued by a federal, state, county, or municipal government that includes the name, date of birth, height, gender, and picture of the person, such as a driver license. (L)A detailed description of the owner’s convictions. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Convictions dismissed under Penal Code section 1203.4 or equivalent non-California law must be disclosed. Convictions dismissed under Health and Safety Code section 11361.8 or equivalent non-California law must be disclosed. Juvenile adjudications and traffic infractions under $300 that did not involve alcohol, dangerous drugs, or controlled substances do not need to be included. For each conviction, the owner shall provide the following: (i)The date of conviction. (ii)Dates of incarceration, if applicable. (iii)Dates of probation, if applicable. (iv)Dates of parole, if applicable. (v)A detailed description of the offense for which the owner was convicted. (vi)A statement of rehabilitation for each conviction. The statement of rehabilitation is to be written by the owner and may contain evidence that the owner would like the Bureau to consider that demonstrates the owner’s fitness for licensure. Supporting evidence may be attached to the statement of rehabilitation and may include, but is not limited to, a certificate of rehabilitation under Penal Code section 4852.01, and dated letters of reference from employers, instructors, or professional counselors that contain valid contact information for the individual providing the reference. (M) If applicable, a detailed description of any administrative orders or civil judgements for violations of labor standards, any suspension of a commercial cannabis license, revocation of a commercial cannabis license, or sanctions for unlicensed commercial cannabis activity by a licensing authority, local agency, or state agency against the applicant or a business entity in which the applicant was an owner or officer within the three years immediately preceding the date of the application. (N)Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true, and accurate. I Bureau of Cannabis Control Regular Regulations Text Page 7 of 136 172 understand that a misrepresentation of fact is cause for rejection of this application, denial of the license, or revocation of a license issued. (21)Evidence that the applicant has the legal right to occupy and use the proposed location that complies with section 5007 of this division. (22)Evidence that the proposed premises is in compliance with Business and Professions Code section 26054(b) and section 5026 of this division. (23)For an applicant with 20 or more employees, the applicant shall attest that the applicant has entered into a labor peace agreement and will abide by the terms of the agreement. The applicant shall submit a copy of the page of the labor peace agreement that contains the signatures of the union representative and the applicant. For applicants who have not yet entered into a labor peace agreement, the applicant shall provide a notarized statement indicating that the applicant will enter into and abide by the terms of a labor peace agreement as soon as reasonably practicable after licensure. (24)The applicant shall provide a valid seller’s permit number issued by the California Department of Tax and Fee Administration, if applicable. If the applicant has not yet received a seller’s permit, the applicant shall attest that the applicant is currently applying for a seller’s permit. (25)A diagram of the premises as required by section 5006 of this division. (26)Proof of a bond as required by section 5008 of this division. (27)For testing laboratory applications, the certificate(s) of accreditation as required by section 5702 of this division, or the information required for a provisional license as required by section 5703 of this division. (28)When an applicant provides a license, permit, or other authorization from the local jurisdiction where the licensed premises will be or is located, the Bureau will notify the applicable local jurisdiction to confirm the validity of the authorization. If the local jurisdiction does not respond within 10 calendar days, the Bureau shall consider the authorization valid. (29)All licensee applications shall include a detailed description of the applicant’s operating procedures. Applicants shall use and submit to the Bureau the following forms which are incorporated by reference: (A)Transportation Procedures, Form BCC-LIC-015 (New 7/18) (B) Inventory Procedures, Form BCC-LIC-016 (New 7/18) (C) Non-Laboratory Quality Control Procedures, Form BCC-LIC-017 (New 7/18) (D)Security Procedures, Form BCC-LIC-018 (New 7/18) (E)Cannabis Waste Management Procedures, Form BCC-LIC-019 (New 7/18) (F)Delivery Procedures, Form BCC-LIC-020 (New 7/18) Bureau of Cannabis Control Regular Regulations Text Page 8 of 136 173 (30)For applicants applying for a microbusiness license, the application shall include a detailed description of the applicant’s operating procedures required by this section for each cannabis activity the applicant intends to engage in. (31)For applicants applying for a testing laboratory license, in addition to the operating procedures required under subsection (c)(29) of this section, the standard application shall include the operating procedures required by chapter 6 of this division. (32)The limited waiver of sovereign immunity required by section 5009 of this division, if applicable. (33)Evidence of exemption from, or compliance with, the California Environmental Quality Act as required by section 5010 of this division. Authority: Sections 115.4 and 26013, Business and Professions Code. Reference: Sections 115.4, 144, 26012, 26050, 26051.5, and 26055, Business and Professions Code. § 5003. Designation of Owner (a)All applicants for a commercial cannabis license shall have at a minimum one individual who meets the definition of “owner” under Business and Professions Code section 26001(al) and who will submit the information required of owners under section 5002. (b)“Owner” means any of the following: (1)A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance. (2)The chief executive officer of a nonprofit or other entity. (3)A member of the board of directors of a nonprofit. (4)The trustee(s) and all persons that have control of the trust and/or the commercial cannabis business that is held in trust. (5)An individual who will be participating in the direction, control, or management of the person applying for a license. Such an individual includes any of the following: (A)A general partner of a commercial cannabis business that is organized as a partnership. (B) A non-member manager or managing member of a commercial cannabis business that is organized as a limited liability company. (C)An officer or director of a commercial cannabis business that is organized as a corporation. (D)Any individual who assumes responsibility for the license. (c)When an entity has an aggregate ownership interest of 20 percent or more in the commercial cannabis business, then the chief executive officer and/or members of the board of directors of the entity shall be considered owners. Bureau of Cannabis Control Regular Regulations Text Page 9 of 136 174 Authority: Section 26013, Business and Professions Code. Reference: Sections 26001, and 26012, Business and Professions Code. § 5004. Financial Interest in a Commercial Cannabis Business (a)A financial interest means an agreement to receive a portion of the profits of a commercial cannabis business, an investment into a commercial cannabis business, a loan provided to a commercial cannabis business, or any other equity interest in a commercial cannabis business except as provided in subsection (c). For the purpose of this section, an interest in a diversified mutual fund, blind trust, or similar instrument is not a financial interest. (b)The license application shall include the name, birthdate, and government-issued identification type and number for all individuals who have a financial interest in a commercial cannabis business but are not owners as defined in section 5003(b) of this division. These individuals shall not be required to submit the information required of owners under section 5002(c)(20) of this division. (c)Notwithstanding subsection (b), the following persons are not required to be listed on an application for licensure under section 5002(c)(19) of this division: (1)A bank or financial institution whose interest constitutes a loan; (2)Persons whose only financial interest in the commercial cannabis business is through an interest in a diversified mutual fund, blind trust, or similar instrument; (3)Persons whose only financial interest is a security interest, lien, or encumbrance on property that will be used by the commercial cannabis business; and (4) Persons who hold a share of stock that is less than 5 percent of the total shares in a publicly traded company. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26051.5, Business and Professions Code. § 5005. Personnel Prohibited from Holding Licenses (a)A license authorized by the Act and issued by the Bureau may not be held by, or issued to, any person holding office in, or employed by, any agency of the State of California or any of its political subdivisions when the duties of such person have to do with the enforcement of the Act or any other penal provisions of law of this State prohibiting or regulating the sale, use, possession, transportation, distribution, testing, manufacturing, or cultivation of cannabis goods. (b)This section applies to, but is not limited to, any person employed in the State of California Department of Justice as a peace officer, in any district attorney's office, in any city attorney’s office, in any sheriff's office, or in any local police department. (c) No person listed in subsection (a) or (b) of this section may have any ownership interest, directly or indirectly, in any business to be operated or conducted under a cannabis license. Bureau of Cannabis Control Regular Regulations Text Page 10 of 136 175 (d)This section does not apply to any person who holds a license in the capacity of executor, administrator, or guardian. Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business and Professions Code. § 5006. Premises Diagram (a)An applicant shall submit to the Bureau, with the application, a complete and detailed diagram of the proposed premises. The diagram shall be used by the Bureau to determine whether the premises meets the requirements under this division and the Act. The Bureau shall deny an application if the premises does not qualify for licensure pursuant to Business and Professions Code section 26057. (b)The diagram shall show the boundaries of the property and the proposed premises to be licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, and doorways, and shall include a brief statement or description of the principal activity to be conducted therein. (c)The diagram shall show and identify commercial cannabis activities that will take place in each area of the premises, and identify limited-access areas. Commercial cannabis activities that shall be identified on the diagram include the following, if applicable to the business operations: storage, batch sampling, loading or unloading of shipments, packaging and labeling, customer sales, loading for deliveries, extraction, cultivation, and processing. (d)The diagram shall show where all cameras are located and assign a number to each camera for identification purposes. (e)The diagram shall be to scale. (f)The diagram shall not contain any highlighting and the markings on the diagram shall be in black-and-white print. (g) If the proposed premises consists of only a portion of a property, the diagram must be labeled indicating which part of the property is the proposed premises and what the remaining property is used for. (h) If the proposed premises consists of only a portion of a property that will contain two or more licensed premises, the diagram shall clearly show the designated entrances and walls under the exclusive control of the applicant for the premises, as well as the designated entrances and walls for each additional premises. The diagram shall also show all proposed common or shared areas of the property. Such areas may include lobbies, bathrooms, hallways, and breakrooms. (i) If the proposed premises will be a microbusiness that includes cultivation activities, in addition to the requirements of subsections (b) through (g) of this section, the premises diagram shall also include all the required information for a premises diagram under section 5501(d) of this division. Bureau of Cannabis Control Regular Regulations Text Page 11 of 136 176 (j) If a proposed premises is located on only a portion of a property that also includes a residence, the diagram shall clearly show the designated buildings for the premises and the residence. Authority: Section 26013, Business and Professions Code. Reference: Section 26012 and 26051.5, Business and Professions Code. § 5007. Landowner Approval (a) If the applicant is not the landowner of the real property upon which the premises is located, the applicant shall provide to the Bureau a document from the landowner or the landowner’s agent that states that the applicant has the right to occupy the property and acknowledges that the applicant may use the property for the commercial cannabis activity for which the applicant is applying for licensure. An applicant shall also provide a copy of the rental agreement, as applicable. (b) If the applicant is the landowner of the real property upon which the premises is located, the applicant shall provide to the Bureau a copy of the title or deed to the property. (c) If the landowner is a trust, the landowner approval shall come from the person that holds equitable title in the real property. Authority: Section 26013, Business and Professions Code. Reference: Section 26051.5, Business and Professions Code. § 5007.1. Electronic Signature The Bureau will accept an electronic signature that complies with Civil Code section 1633.2(h) on any documents required to be submitted to the Bureau and that are submitted electronically, except documents that are required to be notarized. Authority: Section 26013, Business and Professions Code. Reference: Section 26013, Business and Professions Code. § 5008. Bond An applicant shall provide proof of having obtained a surety bond of at least $5,000 payable to the State of California to ensure payment of the cost incurred for the destruction of cannabis goods necessitated by a violation of the Act or the regulations adopted thereunder. All bonds required under this regulation must be issued by a corporate surety licensed to transact surety business in the State of California and shall be issued on the Commercial Cannabis Licensee Bond form under Title 11, California Code of Regulations, Article 56, section 118.1. Authority: Section 26013, Business and Professions Code. Reference: Section 26051.5, Business and Professions Code. § 5009. Limited Waiver of Sovereign Immunity (a) Any applicant or licensee that may fall within the scope of sovereign immunity that may be asserted by a federally recognized tribe or other sovereign entity must waive any sovereign Bureau of Cannabis Control Regular Regulations Text Page 12 of 136 177 immunity defense that the applicant or licensee may have, may be asserted on its behalf, or may otherwise be asserted in any state administrative or judicial enforcement actions against the applicant or licensee, regardless of the form of relief sought, whether monetary or otherwise, under the state laws and regulations governing commercial cannabis activity. The applicant or licensee must submit a written waiver of sovereign immunity to the Bureau with any license application or renewal, which is valid for the period of the license. The written waiver shall include that the applicant or licensee has the lawful authority to enter into the waiver required by this section, the applicant or licensee hereby waives sovereign immunity, and the applicant or licensee agrees to do all of the following: (1)Provide documentation to the Bureau that establishes that the applicant or licensee has the lawful authority to enter into the waiver required by this section; (2)Conduct all commercial cannabis activity in full compliance with the state laws and regulations governing commercial cannabis activity, including submission to all enforcement provisions thereof; (3)Allow access as required by state statute or regulation by persons or entities charged with duties under the state laws and regulations governing commercial cannabis activity to any licensed premises or property at which the applicant conducts any commercial cannabis activity, including licensed premises or property where records of commercial cannabis activity are maintained by or for the applicant or licensee; (4)Provide any and all records, reports, and other documents as may be required under the state laws and regulations governing commercial cannabis activity; (5)Conduct commercial cannabis activity with other state commercial cannabis licensees only, unless otherwise specified by state law; (6)Meet all of the requirements for licensure under the state laws and regulations governing the conduct of commercial cannabis activity, and provide truthful and accurate documentation and other information of the applicant’s qualifications and suitability for licensure as may be requested; and (7)Submit to the personal and subject matter jurisdiction of the California courts to address any matter related to the waiver or the commercial cannabis application, license, or activity, and that all such matters and proceedings shall be governed, construed and enforced in accordance with California substantive and procedural law, including but not limited to the Medicinal and Adult- Use Regulation and Safety Act and the Administrative Procedure Act. (b) The Bureau shall not approve an application for a state license if approval of the license would violate the provisions of any local ordinance or regulation adopted in accordance with Business and Professions Code section 26200 that is issued by the county or, if within a city, the city, within which the licensed premises is to be located. (c)Any applicant or licensee must immediately notify the Bureau of any changes that may materially affect the applicant or licensee’s compliance with subsection (a) of this section. Bureau of Cannabis Control Regular Regulations Text Page 13 of 136 178 (d)Any failure by an applicant or licensee to comply with the requirements of subsections (b) or (c) of this section shall be a basis for denial of an application or renewal or discipline of a licensee. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26050 and 26051.5, Business and Professions Code. § 5010. Compliance with the California Environmental Quality Act (CEQA) (a) For purposes of complying with the California Environmental Quality Act (CEQA): (1) “Project” means the commercial cannabis activity or activities for which an annual license application is submitted to the Bureau and which requires the Bureau to engage in discretionary review. (2) “CEQA Guidelines” means the Guidelines for Implementation of the California Environmental Quality Act codified at Title 14, California Code of Regulations, sections 15000 et seq. (3)“Environmental document” has the same meaning as section 15361 of the CEQA Guidelines. Environmental documents are prepared by the applicant or the local jurisdiction that analyze the commercial cannabis activity or activities and which assess whether the project has the potential to generate significant adverse environmental impacts. (b)An applicant may provide evidence of compliance with CEQA by submitting a copy of an environmental document previously certified or adopted by the local jurisdiction that evaluated the project. (c) If a previously certified or adopted environmental document is not available or does not exist, and if the Bureau does not determine that the project is exempt from CEQA as provided in section 5010.2 of this division, the applicant shall provide information to enable the Bureau to determine what type of environmental document should be prepared. Such information shall include at least the following: (1)The project location and surrounding land use, which shall: (A) Describe the project location including street address, city, county, Assessor’s Parcel Number, major cross streets, general plan designation, zoning designation, and any other physical description that clearly indicates the project site location; (B) Describe the surrounding land uses and zoning designations within one-half mile radius of the project and list of all abutting land uses. (C) Include a vicinity map and aerial image to show the project location; (D) Include photographs, not larger than 8 ½ by 11 inches, of the of existing visual conditions as observed from the publicly accessible vantage point(s); (2) A project description, which shall: Bureau of Cannabis Control Regular Regulations Text Page 14 of 136 179 (A)Describe the activities included in the project application and identify any other commercial cannabis activity or activities occurring at the proposed premises; (B) Quantify the project size (total floor area of the project) in square feet and the lot size on which the project is located, in square feet; (C) List and describe any other related public agency permits and approvals, including any entitlements, required for this project, including those required by a planning commission, local air district, or regional water board; (D) Identify whether the applicant is licensed by, or has applied for licensure from, the California Department of Food and Agriculture or the State Department of Public Health to engage in commercial cannabis activity at the proposed premises; (E)Estimate the number of anticipated employees onsite, occupancy during operating hours, frequency of deliveries or shipments originating from and/or arriving to the project site, describe the anticipated transportation activity at the project site including the effects of the project related to public transit, bicycle, or pedestrian facilities; (F) Identify the location, type, and quantity of hazardous materials, as defined by Health and Safety Code section 25260, that are stored, used, or disposed of at the project site and a copy of the Hazardous Material Business Plan (HMBP) prepared for the proposed premises, if any; (G)Discuss whether the project will increase the quantity and type of solid waste, as defined by Public Resources Code section 40191, or hazardous waste, as defined by Health and Safety Code section 25117, that is generated or stored onsite. (H)Describe the project’s anticipated operational energy needs, identify the source of energy supplied for the project and the anticipated amount of energy per day, and explain whether the project will require an increase in energy demand and the need for additional energy resources. (3) The Bureau shall consider, for purposes of evaluating compliance with the CEQA, both the individual and cumulative impacts of all commercial cannabis activities occurring at the proposed premises. Authority: Section 26013, Business and Professions Code. Reference: Section 26055, Business and Professions Code. § 5010.1. Review of Previously Prepared Environmental Documents Pursuant to CEQA (a)When the project has been evaluated in a previously certified or adopted environmental document, the Bureau will evaluate the project as a responsible agency as provided in section 15096 of the CEQA Guidelines. (b) The Bureau may require subsequent environmental review if one or more of the events outlined in Public Resources Code section 21166 or section 15162 of the CEQA Guidelines occurs. Authority: Section 26013, Business and Professions Code. Reference: Section 26055, Business and Professions Code; Section 21166, Public Resources Code. Bureau of Cannabis Control Regular Regulations Text Page 15 of 136 180 §5010.2 CEQA Exempt Projects. (a)An applicant may submit documentation to the Bureau demonstrating that the project is exempt from further environmental review pursuant to CEQA because the project falls within a class of projects determined not to have significant effect on the environment. (b)Documentation submitted to the Bureau in support of a determination that the project is exempt from further environmental review under CEQA shall, at minimum, include the following information: (1)Project location and surrounding land use, as required in section 5010 of this division; (2)Project description as required in section 5010 of this division; and (3)A written justification to support a determination that the project is categorically exempt. The written justification shall list the category and class the exemption falls under and shall explain how the project fits the specified exemption. The justification shall also demonstrate that none of the exceptions to categorical exemptions described in section 15300.2 of the CEQA Guidelines apply to the project. (c)Upon review, if the Bureau determines that the project is exempt from further CEQA review, and approves an application for annual licensure, the Bureau will file a Notice of Exemption with the State Clearinghouse within five working days after approval of the project as required by section 15062(c) of the CEQA Guidelines. Authority: Section 26013, Business and Professions Code. Reference: Section 26055, Business and Professions Code. §5010.3 Preparation of CEQA Environmental Documents by Applicant If the Bureau determines that a project does not qualify for an exemption, or that the circumstances described in Public Resources Code section 21166 and 15162 of the CEQA Guidelines require subsequent environmental review, the Bureau may charge the applicant for the costs of preparation for any supplemental environmental document as well as the Bureau’s costs for procedures to comply with CEQA, unless the Bureau specifies otherwise. Authority: Section 26013, Business and Professions Code. Reference: Section 26055, Business and Professions Code. § 5011. Additional Information The Bureau may request additional information and documents from the applicant. The Bureau will provide the applicant a deadline for submittal of additional information. The Bureau will consider the complexity of the information requested and the ease with which the information can be obtained and transmitted to the Bureau by the applicant in determining the deadline. Authority: Section 26013, Business and Professions Code. Reference: Sections 26031, 26050 and 26051.5, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 16 of 136 181 § 5012. Incomplete Applications (a) If the Bureau determines that the application is incomplete, the Bureau may provide notice to the applicant in accordance with Business and Professions Code section 124. (b) If the Bureau issues a notice pursuant to Business and Professions Code section 124, an applicant has one year from the date of the notice in subsection (a) of this section to correct all deficiencies. If the applicant fails to correct the deficiencies within the one-year period and has not responded to the Bureau’s attempts to contact the applicant, the application shall be considered abandoned under Business and Professions Code section 142. (c)An applicant may reapply at any time following an abandoned application. (d)The Bureau will not refund application fees for an incomplete or abandoned application. Authority: Section 26013, Business and Professions Code. Reference: Sections 124, 142, 26050 and 26051.5, Business and Professions Code. § 5013. Withdrawal of Application (a)An applicant may withdraw an application at any time prior to the Bureau’s issuance of a license or denial of a license. (b)Requests to withdraw an application must be submitted to the Bureau in writing, dated, and signed by the applicant. (c) In accordance with Business and Professions Code section 118, withdrawal of an application shall not, unless the Bureau has consented in writing to such withdrawal, deprive the Bureau of its authority to institute or continue a proceeding against the applicant for the denial of the license upon any ground provided by law or to enter an order denying the license upon any such ground. (d)The Bureau will not refund application fees for a withdrawn application. (e)An applicant may reapply at any time following the withdrawal of an application and will be required to submit a new application and fee. Authority: Section 26013, Business and Professions Code. Reference: Sections 118 and 26050, Business and Professions Code. Article 3. Licensing § 5014. Fees (a)The application fee for an annual license under section 5002 of this division, a cannabis event organizer license under section 5600 of this division, a temporary cannabis event license under section 5601 of this division for each event, and physical modification of the premises under section 5027 of this division shall be paid by an applicant or licensee as provided by this division. Applicants and licensees shall pay the appropriate fee as outlined in this section. Bureau of Cannabis Control Regular Regulations Text Page 17 of 136 182 Application Fee Schedule License Type Fee Per Application All Annual Licenses $ 1,000 Cannabis Event Organizer License $ 1,000 Temporary Cannabis Event License $ 1,000 Physical Modification of Premises $ 500 (b) The annual licensing fee for each license shall be paid by an applicant or licensee. After the Bureau has approved the application. The Bureau shall not issue the license until the annual licensing fee has been paid. (c) In determining the appropriate license fee to be charged, each applicant or licensee shall estimate the maximum dollar value of its planned operation in terms of the value of the product expected to be tested, distributed, transported, retailed, cultivated and/or manufactured as determined in assessing the 15% excise tax pursuant to Revenue and Taxation Code section 34011. The applicant or licensee will use the maximum dollar value of its planned operation to determine the appropriate fee as outlined in the following fee schedule. Annual License Fee Schedule License Type Operations ($ Max. Per License) Fee Per License Testing Laboratory up to 50 million $ 12,500 greater than 50 million to 400 million $ 45,000 greater than 400 million $ 90,000 Distributor up to 3 million $ 1,200 greater than 3 million to 12 million $ 10,000 greater than 12 million to 60 million $ 50,000 greater than 60 million to 120 million $100,000 greater than 120 million $200,000 Distributor Transport Only Self-Distribution up to 3 million $500 greater than 3 million to 12 million $1,500 greater than 12 million $4,000 Distributor Transport Only up to 3 million $1,000 greater than 3 million to 12 million $2,800 Bureau of Cannabis Control Regular Regulations Text Page 18 of 136 183 License Type Operations ($ Max. Per License) Fee Per License greater than 12 million $6,000 Retailer up to 0.75 million $ 4,000 greater than 0.75 million to 2.5 million $ 20,000 greater than 2.5 million to 7.5 million $ 64,000 greater than 7.5 million $ 120,000 Microbusiness up to 0.75 million $ 10,000 greater than 0.75 million to 2.5 million $ 30,000 greater than 2.5 million to 7.5 million $ 100,000 greater than 7.5 million $ 180,000 (d)Notwithstanding the fees identified above, cannabis event organizers shall pay the appropriate fee as outlined in this section. Annual License Fee Schedule for Cannabis Event Organizers License Type Planned Operations (Number of Operations) Fee Per License Event Organizer 1-10 events annually $ 5,000 greater than 10 events annually $ 15,000 (e)All fees are nonrefundable. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26051.5 and 26180, Business and Professions Code. § 5015. Payment of Fees (a)Any fee specified in this division shall be made to the Bureau of Cannabis Control by cash, check, money order, debit card, or credit card. Check and money order payments may be made out to the Bureau of Cannabis Control or the Department of Consumer Affairs. (b) If the fee is paid by debit or credit card: (1)The payment shall be made through the Bureau’s online licensing system; and (2)The applicant or licensee may be required to pay any associated processing or convenience fees to the third-party vendor processing the payment on behalf of the Bureau. Bureau of Cannabis Control Regular Regulations Text Page 19 of 136 184 (c) Failure to pay the appropriate licensing fee is grounds for discipline. If the Bureau determines that the licensee paid an amount less than the appropriate licensing fee under section 5014 of this division, the licensee will be required to pay the balance of the appropriate fee and a penalty fee of 50 percent of the appropriate licensing fee. The Bureau in its discretion may waive the penalty fee. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26051.5 and 26180, Business and Professions Code § 5016. Priority Licensing (a)Priority licensing is available for annual licenses only, and is not applicable to any temporary or cannabis event organizer license. (b)To be eligible for priority licensing, an applicant must be able to demonstrate that the applicant operated in compliance with the Compassionate Use Act of 1996 and its implementing laws before September 1, 2016. Eligibility for priority licensing shall be established by one of the following methods: (1)The applicant is included on the list provided to the Bureau by the local jurisdiction in response to the Bureau’s request required by Business and Professions Code section 26054.2. (2) If the local jurisdiction does not provide a list to the Bureau or the applicant’s name does not appear on the list provided to the Bureau, the applicant shall provide to the Bureau evidence of operation in compliance with the Compassionate Use Act of 1996. Such evidence shall be in the form of a document issued or signed by the applicant’s local jurisdiction that contains the following: (A)Name of the applicant; (B) Address of the premises to be licensed; (C) License type(s) that the applicant is applying to the Bureau for; (D)Name of the local jurisdiction; (E)Name of the local jurisdiction office that is responsible for enforcing compliance with the Compassionate Use Act of 1996; (F)Name and contact information for the person authorized by the local jurisdiction to sign on its behalf; (G) Signature of the person authorized to sign on behalf of the local jurisdiction; and (H)A statement to the effect of: “The above–named party is currently conducting commercial cannabis activity in this jurisdiction and has been operating in compliance with the Compassionate Use Act of 1996 since before September 1, 2016.” (c)The Bureau shall not provide priority licensing pursuant to this section after December 31, 2019. Bureau of Cannabis Control Regular Regulations Text Page 20 of 136 185 Authority: Section 26013, Business and Professions Code. Reference: Section 26012, 26054.2, Business and Professions Code. § 5017. Substantially Related Offenses and Criteria for Rehabilitation (a) For the purpose of license denial, convictions that are substantially related to the qualifications, functions, or duties of the business for which the application is made include: (1)A violent felony conviction, as specified in Penal Code section 667.5(c). (2)A serious felony conviction, as specified in Penal Code section 1192.7(c). (3)A felony conviction involving fraud, deceit, or embezzlement. (4) A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor. (5)A felony conviction for drug trafficking with enhancements pursuant to Health and Safety Code section 11370.4 or 11379.8. (b)Except as provided in subsections (a)(4) and (a)(5) of this section and notwithstanding Chapter 2 (commencing with Section 480) of Division 1.5 of the Business and Professions Code, a prior conviction, where the sentence, including any term of probation, incarceration, or supervised release, is completed, for possession of, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance is not considered substantially related, and shall not be the sole ground for denial of a license. Conviction for any controlled substance felony subsequent to licensure shall be grounds for revocation of a license or denial of the renewal of a license. (c)When evaluating whether an applicant who has been convicted of a criminal offense that is substantially related to the qualifications, functions, or duties of the business for which the application is made should be issued a license, the Bureau shall consider the following criteria of rehabilitation: (1)The nature and severity of the act or offense; (2)Whether the person has a felony conviction based on possession or use of cannabis or cannabis products that would not be a felony if the person was convicted of the offense on the date of the person’s application; (3)The applicant’s criminal record as a whole; (4)Evidence of any act committed subsequent to the act or offense under consideration that could be considered grounds for denial, suspension, or revocation of a commercial cannabis activity license; (5)The time that has elapsed since commission of the act or offense; Bureau of Cannabis Control Regular Regulations Text Page 21 of 136 186 (6)The extent to which the applicant has complied with any terms of parole, probation, restitution, or any other sanctions lawfully imposed against the applicant; (7) If applicable, evidence of dismissal under Penal Code sections 1203.4, 1203.4a, 1203.41 or another state’s similar law; (8) If applicable, a certificate of rehabilitation obtained under Penal Code section 4852.01 or another state’s similar law; and (9)Other evidence of rehabilitation submitted by the applicant. (d) If an applicant has been denied a license based on a conviction, the applicant may request a hearing pursuant to Business and Professions Code section 26058 to determine if the applicant should be issued a license. Authority: Section 26013, Business and Professions Code. Reference: Sections 482, 26012, and 26057, Business and Professions Code. § 5018. Additional Grounds for Denial of a License In addition to the reasons for denial in Business and Professions Code section 26057, a license may be denied for the following reasons: (a)The applicant’s proposed premises does not fully comply with standards set in regulation. (b)The applicant’s proposed or licensed premises is substantially different from the diagram of the proposed premises submitted by the applicant, in that the size, layout, location of common entryways, doorways, or passage ways, means of public entry or exit, or identification of limited- access areas within the licensed premises is not the same. (c)The applicant denied the Bureau access to the licensed premises. (d)The applicant made a material misrepresentation on the application. (e)The applicant did not correct the deficiencies within the application in accordance with sections 5002 and 5012 of this division. (f)The applicant has been denied a license, permit, or other authorization to engage in commercial cannabis activity by a state or local licensing authority. (g)The applicant’s proposed premises is not in compliance with Division 13 (commencing with Section 21000) of the Public Resources Code. (h)The applicant has failed to remit taxes as required under the Revenue and Taxation Code. (i)The applicant may be denied a license for any violations of law related to the operations of the commercial cannabis business or for any violations of law related to licensure. Authority: Section 26013, Business and Professions Code. Reference: Sections 480, 490, 26012, 26030 and 26050, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 22 of 136 187 § 5019. Excessive Concentration (a) In determining whether to grant, deny, or renew a license for a retail license or microbusiness license, the Bureau shall consider if an excessive concentration exists in the area where the licensee will operate. For the purposes of this section “excessive concentration” applies when either of the following conditions exist: (1)The ratio of licensees to population within the census tract or census division in which the applicant premises is located exceeds the ratio of licensees to population in the county in which the applicant premises is located, unless denial of the application would unduly limit the development of the legal market so as to perpetuate the illegal market for cannabis goods. (2)The ratio of retail licenses or microbusiness licenses to the population within the census tract, census division, or jurisdiction exceeds that allowable by local ordinance adopted under Business and Professions Code section 26200. (b)“Population Within the Census Tract or Census Division” as used in this section means the population as determined by the most recent United States decennial or special census. Such population determination shall not operate to prevent an applicant from establishing that an increase of resident population has occurred within the census tract or census division. (c)“Population in the County” as used in this section shall be determined by the most recent annual population estimate for California counties published by the Demographic Research Unit, State Department of Finance. (d)Beginning July 1, 2018, the Bureau shall calculate the ratios described in subsection (a) of this section once every six months using the most current available data. The Bureau’s consideration of whether to grant, deny, or renew a license shall be based upon the most recent ratio calculated by the Bureau on the date of the Bureau’s decision. (e)The existence of an excessive concentration shall not be considered in determining whether to grant, deny, or extend a temporary license under Business and Professions Code section 26050.1. (f)The applicant may provide reliable evidence establishing, to the satisfaction of the Bureau, that a denial of a license would unduly limit the development of the legal market so as to perpetuate the illegal market for cannabis goods. Authority: Section 26013, Business and Professions Code. Reference: Section 26012 and 26051, Business and Professions Code § 5020. Renewal of License (a)To timely renew a license, a completed license renewal form and annual license fee pursuant to section 5014 of this division shall be received by the Bureau from the licensee no earlier than 60 calendar days before the expiration of the license and no later than 5:00 p.m. Pacific Time on the last business day before the expiration of the license if the renewal form is submitted to the Bureau at its office(s), or no later than 11:59 p.m. on the last business day before the expiration of the license if the renewal form is submitted to the Bureau through its electronic licensing Bureau of Cannabis Control Regular Regulations Text Page 23 of 136 188 system. Failure to receive a notice for license renewal does not relieve a licensee of the obligation to renew all licenses as required. (b) In the event the license is not submitted for renewal prior to the expiration date, the licensee must not sell, transfer, transport, manufacture, test, or distribute any commercial cannabis goods until the license is renewed. (c)A licensee may submit a license renewal form up to 30 calendar days after the license expires. Any late renewal form will be subject to a late fee equal to 50 percent of the applicable licensing fee required by subsection (a) of this section. (d)The license renewal form shall contain the following: (1)The name of the licensee. For licensees who are individuals, the applicant shall provide both the first and last name of the individual. For licensees who are business entities, the licensee shall provide the legal business name of the applicant. (2)The license number and expiration date. (3)The licensee’s address of record and licensed premises address. (4)Documentation demonstrating the maximum dollar value of the licensee’s operation for the current licensed period, such as a copy of the licensee’s state tax return filed with the California Department of Tax and Fee Administration. (5)An attestation that all information provided to the Bureau in the original application under section 5002 of this division or subsequent notification under sections 5023 and 5024 of this division is accurate and current. (6) A limited waiver of sovereign immunity pursuant to section 5009 of this division. Authority: Section 26013, Business and Professions Code. Reference: Section 26012 and 26050, Business and Professions Code. § 5021. Denial of License (a)The Bureau may deny an application for a new license or a renewal of a license for any reason specified in Business and Professions Code section 26057 and on any additional grounds including grounds for denial under section 5018 of this division, and grounds for discipline under the Act or this division. (b)Upon denial of an application for a license or renewal of a license, the Bureau shall notify the applicant in writing of the reasons for denial, and the right to a hearing to contest the denial. (c)The applicant may request a hearing to contest the denial by submitting a written request to the Bureau. (1)The written request for a hearing must be postmarked within 30 calendar days of service of the notification of denial. Bureau of Cannabis Control Regular Regulations Text Page 24 of 136 189 (2) If the written request for a hearing is not received within the required timeframe, the applicant’s right to a hearing is waived. (3) Upon timely receipt of the written request for hearing, the Bureau shall set a date for hearing to be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. Authority: Section 26013, Business and Professions Code; Reference: Sections 26012 and 26057 and 26058, Business and Professions Code. § 5022. Cancellation of License (a)Every licensee who abandons, quits or who closes the licensed premises for a period exceeding 30 consecutive calendar days, shall request in writing that the Bureau cancel the license, within 10 business days after closing, quitting, or abandoning the licensed premises. The Bureau may revoke the license of a licensee who fails to comply with the provisions of this section. Upon cancellation or revocation of the license, the licensee shall not display and shall destroy the license certificate. (b)The Bureau may cancel a license at any time upon request by the licensee if there are no outstanding fines or fees due to the Bureau and no disciplinary action is pending. (c) If a licensee must close the licensed premises for a period exceeding 30 consecutive calendar days to make renovations or repairs, the Bureau may allow the licensee to retain the license if the licensee complies with section 5027 of this division. (d)A person whose license has been cancelled or revoked pursuant to subsection (a) of this section may submit to the Bureau a written request for the license to be reinstated. Any request shall be submitted to the Bureau prior to the expiration date listed on the cancelled or revoked license. The written request shall specify the reason the licensee failed to comply with subsection (a) of this section and why the license should be reinstated returned. The Bureau in its discretion may reinstate the license. Authority: Section 26013, Business and Professions Code. Reference: Section 26012 and 26050, Business and Professions Code. § 5023. Business Modifications Business modifications for any item contained in the application shall be made in accordance with the following: (a)Changes to standard operating procedures may be made without providing notification to the Bureau. Licensees shall maintain a copy of all current and prior operating procedures as required by section 5037 of this division. (b) If at the time of licensure, a licensee employed less than 20 employees and later employs 20 or more employees, the licensee shall provide to the Bureau a document attesting that the licensee has entered into a labor peace agreement and will abide by the terms of the agreement, as soon as reasonably practicable once employing 20 or more employees. Once the licensee has entered into the labor peace agreement, the licensee shall provide the Bureau with a copy of the Bureau of Cannabis Control Regular Regulations Text Page 25 of 136 190 page of the labor peace agreement that contains the signatures of the union representative and the applicant. (c) Licenses are not transferrable. Changes in ownership shall be made in accordance with the following: (1) If one or more of the owners of a license change, a new license application and fee shall be submitted to the Bureau within 10 business days of the effective date of the ownership change. The business may continue to operate under the active license while the Bureau reviews the application if at least one owner is not transferring his or her ownership interest and will remain as an owner under the new license and ownership structure. If all owners will be transferring their ownership interest, the business shall not operate under the new ownership structure until the new license application has been approved by the Bureau. (A) A change in ownership occurs when a new person meets the definition of owner in section 5003 of this division. (B) A change in ownership does not occur when one or more owners leave the business by transferring their ownership interest to the other existing owner(s). (2) In cases where one or more owners leave the business by transferring their ownership interest to the other existing owner(s), the owner or owners that are transferring their interest shall provide a signed statement to the Bureau confirming that they have transferred their interest. (d)When there is a change in persons with financial interest(s) in the commercial cannabis business that do not meet the requirements for a new license application under this section, the licensee shall submit the information required by sections 5002(c)(19) and 5004 of this division to the Bureau within 10 business days of the change. (e) Licensees may request to add an A-designation or M-designation to their license by sending a notification to the Bureau signed by at least one owner as defined in section 5003 of this division. A licensee shall not operate under the requested designation until they have received approval from the Bureau. (f)Microbusiness licensees may add a commercial cannabis activity to their license or remove a commercial cannabis activity from their license if doing so is consistent with the requirement set forth in section 5500(a) of this division that licensees engage in at least three (3) commercial cannabis activities. Licensees shall request the modification by completing a request to modify the licensed premises pursuant to section 5027 of this division. A licensee shall not engage in a new commercial cannabis activity until they have paid for the modification and received approval from the Bureau. (g) Licenses may not be transferred from one premises to another. Licensees shall not operate out of a new premises until they have been issued a new license. Authority: Section 26013, Business and Professions Code. Reference: Sections 136 and 26012, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 26 of 136 191 - § 5024. Death, Incapacity, or Insolvency of a Licensee (a) In the event of the death, incapacity, receivership, assignment for the benefit of creditors or other event rendering one or more owners’ incapable of performing the duties associated with the license, the owner or owners’ successor in interest (e.g., appointed guardian, executor, administrator, receiver, trustee, or assignee) shall notify the Bureau in writing, within 10 business days. (b)To continue operations or cancel the existing license, the successor in interest shall submit to the Bureau the following: (1)The name of the successor in interest. (2)The name of the owner(s) for which the successor in interest is succeeding and the license number; (3)The phone number, mailing address, and email address of the successor in interest; and (4)Documentation demonstrating that the owner(s) is incapable of performing the duties associated with the license such as a death certificate, or a court order, and documentation demonstrating that the person making the request is the owner or owners’ successor in interest such as a court order appointing guardianship, receivership, or a will or trust agreement. (c)The Bureau may give the successor in interest written approval to continue operations on the licensed business premises for a period of time specified by the Bureau: (1) If the successor in interest or another person has applied for a license from the Bureau for the licensed premises and that application is under review; (2) If the successor in interest needs additional time to destroy or sell cannabis goods; or (3)At the discretion of the Bureau. (d)The successor in interest is held subject to all terms and conditions under which a state cannabis license is held pursuant to the Act. (e)The approval creates no vested right to the issuance of a state cannabis license. Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business and Professions Code. § 5025. Premises (a)Each license shall have a designated licensed premises, with a distinct street address and suite number if applicable, for the licensee’s commercial cannabis activity. Each licensed premises shall be subject to inspection by the Bureau. (b)The Bureau may allow a licensee to conduct both adult-use and medicinal commercial cannabis activity on the same licensed premises if all of the following criteria are met: Bureau of Cannabis Control Regular Regulations Text Page 27 of 136 192 (1)The licensee holds both an A-designation and an M-designation on the license for the identical type of commercial cannabis activity; and (2)The licensee only conducts one type of commercial cannabis activity on the licensed premises. (c) Licensed retailers and licensed microbusinesses shall only serve customers who are within the licensed premises, or at a delivery address that meets the requirements of this division. (1)The sale and delivery of cannabis goods shall not occur through a pass-out window or a slide- out tray to the exterior of the licensed premises. (2) Licensed retailers or licensed microbusinesses shall not operate as or with a drive-in or drive- through at which cannabis goods are sold to persons within or about a motor vehicle. (3) No cannabis goods shall be sold and/or delivered by any means or method to any person within a motor vehicle. (d)Alcoholic beverages as defined in Business and Professions Code section 23004 shall not be stored or consumed on a licensed premises. (e) Any licensed premises that is adjacent to another premises engaging in manufacturing or cultivation shall be separated from those premises by walls, and any doors leading to the cultivation or manufacturing premises shall remain closed. (f) Cannabis shall not be dispersed in the air throughout the premises or throughout a portion of the premises by an oil diffuser or any other vaporizing device that is intended to disperse the vapor throughout the premises or throughout a portion of the premises. This section shall not be interpreted to prohibit cannabis consumption on the premises of a retailer or microbusiness that is conducted in accordance with Business and Professions Code section 26200(g). (g) Notwithstanding subsection (c) of this section, an applicant or licensee may have a drive-in or drive-through window only if, prior to June 1, 2018: (1) The licensee or applicant received a license or permit from the local jurisdiction for a premises including a drive-in or drive-through window which was disclosed on the local application; or (2)The licensee or applicant has submitted an application to the local jurisdiction for a license or permit which, at the time of submission of the application, included information that a drive-in or drive-through window was already part of, or proposed to be part of, the premises, and after June 1, 2018, the local jurisdiction approves the premises with a drive-in or drive-through window. Authority: Section 26013, Business and Professions Code. Reference: Sections 26001, 26012, and 26053, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 28 of 136 193 § 5026. Premises Location (a) A premises licensed under this division shall not be located within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center that is in existence at the time the license is issued. (b) Notwithstanding subsection (a) of this section, if a local jurisdiction has issued a license or permit to conduct commercial cannabis activity at a premises that is located within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center, the Bureau may approve the premises for licensure if the following conditions are met: (1) The applicant submits a copy of a valid license or permit from the local jurisdiction with the application for licensure; and (2) The local jurisdiction notifies the Bureau that the applicant is in compliance with all applicable local ordinances and regulations pursuant to Business and Professions Code section 26055(g)(2)(C). (c) A licensed premises shall not be in a location that requires persons to pass through a business that sells alcohol or tobacco or a private residence to access the licensed premises, or that requires persons to pass through the licensed premises to access a business that sells alcohol or tobacco or a private residence. (d) A licensed premises shall not be located within a private residence. (e) Licensees shall ensure that the Bureau has immediate access to their licensed premises. If the Bureau is denied access to a licensee’s premises for any reason, the licensee shall be held responsible and subject to discipline. If the Bureau is denied access to one licensee’s premises because of another licensee’s refusal to grant access when the only access to one licensed premises is through another licensed premises, all licensees shall be held responsible and subject to discipline. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26051.5, 26054 and 26055, Business and Professions Code. § 5027. Physical Modification of Premises (a)A licensee shall not, without the prior written approval of the Bureau, make a physical change, alteration, or modification of the licensed premises that materially or substantially alters the licensed premises or the use of the licensed premises from the premises diagram originally filed with the license application. A licensee whose licensed premises is to be materially or substantially changed, modified, or altered is responsible for filing a request for premises modification with the Bureau. (b)Material or substantial changes, alterations, or modifications requiring approval include, but are not limited to: Bureau of Cannabis Control Regular Regulations Text Page 29 of 136 194 ---- (1)The removal, creation, or relocation of a common entryway, doorway, passage, or a means of public entry or exit, when such common entryway, doorway, or passage alters or changes limited-access areas within the licensed premises; (2)The removal, creation, or relocation of a wall or barrier; or (3)Changing the activities conducted in or the use of an area identified in the last premises diagram provided to the Bureau. (c)A licensee shall request approval of a physical change, alteration, or modification in writing, and the request shall include: (1)A new premises diagram that conforms to requirements in section 5006 of this division; and (2)A fee pursuant to section 5014 of this division. (d)A licensee shall provide additional documentation requested by the Bureau to evaluate the licensee’s request to modify the licensed premises. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26055, Business and Professions Code § 5028. Subletting of Premises A licensee shall not sublet any area designated as the licensed premises for the licensee’s commercial cannabis activity. Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 26012 and 26070, Business and Professions Code § 5029. [reserved] § 5030. Licensee’s Responsibility for Acts of Employees and Agents In construing and enforcing the provisions of the Act and the regulations in this division, the act, omission, or failure of an agent, officer, representative, or other person acting for or employed by a licensee, within the scope of his or her employment or office, shall in every case be deemed the act, omission, or failure of the licensee. Authority: Section 26013, Business and Professions Code. Reference: Sections 26031 and 26110, Business and Professions Code. § 5031. Age Restriction Employees or persons retained by a licensee to work within or on a licensed premises or to handle cannabis goods shall be at least 21 years of age. Authority: Section 26013, Business and Professions Code. Reference: Section 26140, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 30 of 136 195 § 5032. Designated M and A Commercial Cannabis Activity (a)All commercial cannabis activity shall be conducted between licensees. Retail licensees may conduct commercial cannabis activity with customers in accordance with chapter 3 of this division. (b) Licensees may conduct business with other licensees irrespective of the M-designation or A- designation on their licenses. (c) Licensed distributors or licensed microbusinesses shall only transport and sell cannabis goods designated as “For Medical Use Only,” pursuant to the requirements prescribed by the State Department of Public Health in regulation, to M-designated retailers or M-designated microbusinesses; (d)Products designated as “For Medical Use Only,” pursuant to requirements prescribed by the State Department of Public Health in regulation, shall only be sold to medicinal customers by M- designated retailers or M-designated microbusinesses. Authority: Section 26013, Business and Professions Code. Reference: Sections 26001, 26013, and 26053, Business and Professions Code. § 5033. Storage of Inventory (a)All inventory stored on the licensed premises shall be secured in a limited-access area. (b)A licensee shall not store cannabis goods outdoors. (c)Employee break rooms, changing facilities, and bathrooms shall be separated from all storage areas. (d)Each location where cannabis goods are stored must be separately licensed. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26070, Business and Professions Code. § 5034. Significant Discrepancy in Inventory (a)A significant discrepancy in inventory means a difference in actual inventory compared to records pertaining to inventory of at least $5,000 or 2 percent of the average monthly sales of the licensee, whichever is less. (b)For the purposes of this section, average monthly sales shall be calculated by taking a per month average of the total sales for the previous 6 months. If the licensee has not been in operation for at least 6 months, only the months in which the licensee was operating shall be used in determining average monthly sales. (c) For the purposes of this section, the licensee’s acquisition price shall be used to determine the value of cannabis goods in a licensee’s inventory. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 31 of 136 196 § 5035. Notification of Criminal Acts, Civil Judgments, Violations of Labor Standards, and Revocation of a Local License, Permit, or Other Authorization After Licensure (a)A licensee shall ensure that the Bureau is notified in writing of a criminal conviction of any owner, either by mail or electronic mail, within 48 hours of the conviction. The written notification to the Bureau shall include the date of conviction, the court docket number, the name of the court in which the licensee was convicted, and the specific offense(s) for which the licensee was convicted. (b)A licensee shall ensure that the Bureau is notified in writing of a civil penalty or judgment rendered against the licensee or any owner in their individual capacity, either by mail or electronic mail, within 48 hours of delivery of the verdict or entry of judgment, whichever is sooner. The written notification shall include the date of verdict or entry of judgment, the court docket number, the name of the court in which the matter was adjudicated, and a description of the civil penalty or judgment rendered against the licensee. (c)A licensee shall ensure that the Bureau is notified in writing of an administrative order or civil judgement for violations of labor standards against the licensee or any owner in their individual capacity, either by mail or electronic mail, within 48 hours of delivery of the order. The written notification shall include the date of the order, the name of the agency issuing the order, and a description of the administrative penalty or judgement rendered against the licensee. (d) A licensee shall ensure that the Bureau is notified in writing of the revocation of a local license, permit, or other authorization, either by mail or electronic mail within 48 hours of receiving notice of the revocation. The written notification shall include the name of the local agency involved, a written explanation of the proceeding or enforcement action, and the specific violation(s) that led to revocation. Authority: Section 26013, Business and Professions Code. Reference: Sections 26030 and 26031, Business and Professions Code. § 5036. Notification of Theft, Loss, and Criminal Activity (a)A licensee shall notify the Bureau and local law enforcement within 24 hours of discovery of any of the following situations: (1)The licensee discovers a significant discrepancy, as defined in section 5034 of this division, in its inventory. (2)The licensee discovers diversion, theft, loss, or any other criminal activity pertaining to the operations of the licensee. (3)The licensee discovers diversion, theft, loss, or any other criminal activity by an agent or employee of the licensee pertaining to the operations of the licensee. (4)The licensee discovers loss or unauthorized alteration of records related to cannabis goods, customers, or the licensee’s employees or agents. (5) The licensee discovers any other breach of security. Bureau of Cannabis Control Regular Regulations Text Page 32 of 136 197 (b)The notification to the Bureau pursuant to subsection (a) of this section shall be in writing and include the date and time of occurrence of the theft, loss, or criminal activity, the name of the local law enforcement agency that was notified, and a description of the incident including, where applicable, the item(s) that were taken or lost. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5037. Record Retention (a)Each licensee shall keep and maintain the following records related to commercial cannabis activity for at least seven years: (1)Financial records including, but not limited to, bank statements, sales invoices, receipts, tax records, and all records required by the California Department of Tax and Fee Administration (formerly Board of Equalization) under title 18, California Code of Regulations, sections 1698 and 4901. (2)Personnel records, including each employee’s full name, social security or individual tax payer identification number, date employment begins, and date of termination of employment if applicable. (3)Training records including, but not limited to, the content of the training provided and the names of the employees that received the training. (4)Contracts with other licensees regarding commercial cannabis activity. (5)Permits, licenses, and other local authorizations to conduct the licensee’s commercial cannabis activity. (6)Security records, except for surveillance recordings required pursuant to section 5044 of this division. (7)Records relating to the composting or destruction of cannabis goods. (8)Documentation for data or information entered into the track and trace system. (9)All other documents prepared or executed by an owner or their employees or assignees in connection with the licensed commercial cannabis business. (b)All required records shall be prepared and retained in accordance with the following conditions: (1)Records shall be legible; and (2)Records shall be stored in a secured area where the records are protected from debris; moisture; contamination; hazardous waste; fire; and theft. (c)The Bureau may make any examination of the books and records of any licensee as it deems necessar y to perform its duties under the Act. Bureau of Cannabis Control Regular Regulations Text Page 33 of 136 198 (d)All records are subject to review by the Bureau anytime the licensee is exercising the privileges of the license or at any other time as mutually agreed to by the Bureau and the licensee. Prior notice by the Bureau to review records is not necessary. The Bureau may review records outside of the licensee’s standard daily business hours. (e)Records shall be kept in a manner that allows records to be produced for the Bureau immediately upon request at the licensed premises in either hard copy or electronic form, whichever the Bureau requests. Authority: Section 26013, Business and Professions Code. Reference: Sections 26160 and 26161, Business and Professions Code. § 5038. Disaster Relief (a) If a licensee is unable to comply with any licensing requirements due to a disaster, the licensee may notify the Bureau of this inability to comply and request relief from the specific licensing requirement. (b)The Bureau may exercise its discretion to provide temporary relief from specific regulatory requirements in this division and from other licensing requirements when allowed by law. (c)Temporary relief from specific licensing requirements shall be issued for a reasonable amount of time in order to allow the licensee to recover from the disaster. (d)The Bureau may require that certain conditions be followed in order for a licensee to receive temporary relief from specific licensing requirements. (e) A licensee shall not be subject to an enforcement action for a violation of a licensing requirement in which the licensee has received temporary relief. (f) For the purposes of this section, “disaster “means condition of extreme peril to the safety of persons and property within the state or a county, city and county, or city caused by such conditions as air pollution, fire, flood, storm, tidal wave, epidemic, riot, drought, terrorism, sudden and severe energy shortage, plant or animal infestation or disease, Governor’s warning of an earthquake or volcanic prediction, or an earthquake, or similar public calamity, other than conditions resulting from a labor controversy, for which the Governor has proclaimed a state of emergency in accordance with Government Code sections 8558 and 8625, or for which a local governing body has proclaimed a local emergency in accordance with Government Code sections 8558 and 8630. (g)A licensed premises that has been vacated by a licensee due to a disaster shall not be deemed to have been, abandoned, or quit under section 5022 of this division. (h)Notwithstanding subsection (a) of this section, if a licensee needs to move cannabis goods stored on the licensed premises to another location immediately to prevent loss, theft, or degradation of the cannabis goods from the disaster, the licensee may move the cannabis goods without obtaining prior approval from the Bureau if the following conditions are met: (1)The cannabis goods are moved to a secure location where access to the cannabis goods can be restricted to the licensee, its employees, and contractors; Bureau of Cannabis Control Regular Regulations Text Page 34 of 136 199 (2)The licensee notifies the Bureau in writing that the cannabis goods have been moved and that the licensee is requesting relief from complying with specific licensing requirements pursuant to subsection (a) of this section within 24 hours of moving the cannabis goods; (3)The licensee agrees to grant the Bureau access to the location where the cannabis goods have been moved to for inspection; and (4)The licensee submits in writing to the Bureau within 10 business days of moving the cannabis goods a request for temporary relief that clearly indicates what statutory and regulatory sections relief is requested from, the time period for which the relief is requested, and the reasons relief is needed for the specified amount of time. Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business and Professions Code. Article 4. Posting and Advertising § 5039. License Posting Requirement Upon issuance of any license, the licensee shall prominently display the license on the licensed premises where it can be viewed by state and local agencies. If the licensed premises is open to the public, the license shall be displayed in an area that is within plain sight of the public. Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business and Professions Code. § 5040. Advertising Placement (a)Any advertising or marketing, as defined in Business and Professions Code section 26150, that is placed in broadcast, cable, radio, print, and digital communications: (1)Shall only be displayed after a licensee has obtained reliable up-to-date audience composition data demonstrating that at least 71.6 percent of the audience viewing the advertising or marketing is reasonably expected to be 21 years of age or older; (2)Shall not use any depictions or images of minors under 18 years of age. (3)Shall not contain the use of objects, such as toys, inflatables, movie characters, cartoon characters, or include any other display, depiction, or image designed in any manner likely to be appealing to minors under 18 years of age; and (4)Shall not advertise free cannabis goods or giveaways of any type of products. This includes promotions such as: (A) Buy one product get one free; (B) Free product with any donation; and (C) Contests, sweepstakes, or raffles. Bureau of Cannabis Control Regular Regulations Text Page 35 of 136 200 (b) In addition to the requirements for advertising and marketing in subsection (a) of this section, all outdoor signs, including billboards, must be affixed to a building or permanent structure. All outdoor advertising must be in compliance with the Outdoor Advertising Act, commencing with section 5200 of the Business and Professions Code. (c) For the purposes of this section, “reliable up-to-date audience composition data” means data regarding the age and location demographics of the audience viewing a particular advertising or marketing medium. “Reliable up-to-date audience composition data” does not include data from the most recent United States decennial or special census, or the annual population estimate for California counties published by the Demographic Research Unit, State Department of Finance. (d) Immediately upon request, a licensee shall provide to the Bureau audience composition data as required in subsection (a) of this section for advertising or marketing placed by the licensee. (e) If the Bureau determines that audience composition data for advertising or marketing provided by a licensee does not comply with the requirements of subsection (a) of this section, or the licensee fails to provide audience composition data to the Bureau upon request, the licensee shall remove the advertising or marketing placement in question. (f)In construing and enforcing the advertising provisions of the Act and this division, any action, omission, or failure of an advertising agent, representative, or contractor retained by the licensee, shall in every case be deemed the act, omission, or failure of the licensee. Authority: Section 26013, Business and Professions Code. Reference: Sections 26151 and 26152, Business and Professions Code. § 5041. Age Confirmation in Advertising (a)Prior to any advertising or marketing from the licensee involving direct, individualized communication or dialogue, the licensee shall use age affirmation to verify that the recipient is 21 years of age or older. (b)For the purposes of this section, direct, individualized communication or dialogue may occur through any form of communication, including in-person, telephone, physical mail, or electronic. (c)A method of age verification is not necessary for a communication if the licensee can verify that the licensee has previously had the intended recipient undergo a method of age affirmation and the licensee is reasonably certain that the communication will only be received by the intended recipient. (d)A licensee shall use a method of age affirmation before having a potential customer added to a mailing list, subscribe, or otherwise consent to receiving direct, individualized communication or dialogue controlled by a licensee. Authority: Section 26013, Business and Professions Code. Reference: Sections 26151 and 26152, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 36 of 136 201 Article 5. Security Measures § 5042. Limited-Access Areas (a) Licensees shall ensure that only employees of the licensee and other authorized individuals access the limited-access areas of the licensed premises. (b)For the purpose of this section, authorized individuals include individuals employed by the licensee as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited-access areas. (c)An individual who enters the limited-access area that is not employed by the licensee shall be escorted by an employee of the licensee at all times while within the limited-access area. (d)A licensee shall maintain a record of all authorized individuals that are not employees of the licensee who enter the limited-access areas. The record shall include the name of the individual, the company the individual works for, the reason the individual entered the limited-access area, the date, and the times the individual entered and exited the limited-access area. These records shall be made available to the Bureau immediately upon request. (e)A licensee shall not receive consideration or compensation for permitting an individual to enter the limited-access areas. (f) Entrances to all limited-access areas shall have a solid door and a lock meeting the requirements of section 5046 of this division. The door shall remain closed when not in use during regular business hours. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5043. Licensee Employee Badge Requirement All agents, officers, or other persons acting for or employed by a licensee shall display a laminated or plastic-coated identification badge issued by the licensee at all times while engaging in commercial cannabis activity. The identification badge shall, at a minimum, include the licensee’s “doing business as” name and license number, the employee’s first name, an employee number exclusively assigned to that employee for identification purposes, and a color photograph of the employee that clearly shows the full front of the employee’s face and that is at least 1 inch in width and 1.5 inches in height. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5044. Video Surveillance System (a)Each licensed premises shall have a digital video surveillance system with a minimum camera resolution of 1280 × 720 pixels. (b) The surveillance-system storage device or the cameras shall be transmission control protocol (TCP) capable of being accessed through the internet. Bureau of Cannabis Control Regular Regulations Text Page 37 of 136 202 (c)The video surveillance system shall at all times be able to effectively and clearly record images of the area under surveillance. (d)Each camera shall be permanently mounted and in a fixed location. Each camera shall be placed in a location that allows the camera to clearly record activity occurring within 20 feet of all points of entry and exit on the licensed premises, and allows for the clear and certain identification of any person and activities in all areas required to be filmed under subsection (e) of this section. (e)Areas that shall be recorded on the video surveillance system include the following: (1)Areas where cannabis goods are weighed, packed, stored, loaded, and unloaded for transportation, prepared, or moved within the licensed premises; (2)Limited-access areas; (3) Security rooms; (4)Areas storing a surveillance-system storage device with at least one camera recording the access points to the secured surveillance recording area; and (5)Entrances and exits to the licensed premises, which shall be recorded from both indoor and outdoor vantage points. (f) Licensed retailers and licensed microbusiness shall also record point-of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. At each point-of- sale location, camera placement must allow for the recording of the facial features of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity. (g)Cameras shall record continuously 24 hours per day and at a minimum of 15 frames per second (FPS). (h)The physical media or storage device on which surveillance recordings are stored shall be secured in a manner to protect the recording from tampering or theft. (i)Surveillance recordings shall be kept for a minimum of 90 days. (j)Surveillance recordings are subject to inspection by the Bureau, and shall be kept in a manner that allows the Bureau to view and obtain copies of the recordings at the licensed premises immediately upon request. The licensee shall also send or otherwise provide copies of the recordings to the Bureau upon request within the time specified by the Bureau. (k)Recorded images shall clearly and accurately display the time and date. Time is to be measured in accordance with the United States National Institute Standards and Technology standards. (l)The video surveillance system shall be equipped with a failure notification system that provides notification to the licensee of any interruption or failure of the video surveillance system or video surveillance-system storage device. Bureau of Cannabis Control Regular Regulations Text Page 38 of 136 203 (m) If multiple licensed premises are contained within the same building, a single video surveillance system covering the entire building may be used by all of the licensees under the following conditions: (1)Each applicant or licensee shall disclose on their premises diagram where the surveillance recordings are stored. (2)Each applicant or licensee shall include in their security operating procedures, submitted with the application pursuant to section 5002(c)(29)(D) of this division, an explanation of how the video surveillance system will be shared, including who is responsible for monitoring the video footage and storing any video recordings. (3)All licensees shall have immediate access to the surveillance recordings to produce them pursuant to subsection (j) of this section. (4)All licensees shall be held responsible and subject to discipline for any violations of the video surveillance requirements. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5045. Security Personnel (a) A retail licensee or microbusiness licensee who is engaged in retail sale shall hire or contract for security personnel who are at least 21 years of age to provide security services for the licensed retail premises. All security personnel hired or contracted for by the licensee shall be licensed by the Bureau of Security and Investigative Services and shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code. (b)Notwithstanding subsection (a) of this section, a licensed non-storefront retailer or licensed microbusiness who is not engaged in storefront retail sale is not required to hire or contract for security personnel. (c) If multiple licensed premises are contained within the same building, security personnel may be shared by all of the licensees to cover the entire building under the following conditions: (1)Each licensee shall include in their security operating procedures, submitted with the application pursuant to section 5002(c)(29)(D) of this division, an explanation of how security personnel will be shared, including who is responsible for employing or contracting the security personnel. (2)All licensees shall be held responsible and subject to discipline for any violations of the security personnel requirements. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 39 of 136 204 § 5046. Locks A licensee shall ensure that the limited-access areas described in section 5042 of this division can be securely locked using commercial-grade, nonresidential door locks. A licensee shall also use commercial-grade, nonresidential door locks on all points of entry and exit to the licensed premises. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5047. Alarm System (a)A licensee shall maintain an alarm system as defined in Business and Professions Code section 7590.1(n) at the licensed premises. (b)A licensee shall ensure a licensed alarm company operator or one or more of its registered alarm agents installs, maintains, monitors, and responds to the alarm system. (c)Upon request, a licensee shall make available to the Bureau all information related to the alarm system, monitoring, and alarm activity. (d) If multiple licensed premises are contained within the same building, a single alarm system covering the entire building may be used by all of the licensees under the following conditions: (1)Each licensee shall include in their security operating procedures, submitted with the application pursuant to section 5002(c)(29)(D) of this division, an explanation of how the alarm system will be shared, including who is responsible for contracting with the alarm company. (2)All licensees shall have access to and be able to provide the information under subsection (c) of this section. (3)All licensees shall be held responsible and subject to discipline for any violations of the alarm system requirements. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. Article 6. Track and Trace Requirements § 5048. Track and Trace System (a)A licensee shall create and maintain an active and functional account within the track and trace system prior to engaging in any commercial cannabis activity, including the purchase, sale, test, packaging, transfer, transport, return, destruction, or disposal, of any cannabis goods. (b)A licensee shall designate one individual owner as the track and trace system account manager. The account manager may authorize additional owners or employees as track and trace system users and shall ensure that each user is trained on the track and trace system prior to its access or use. Bureau of Cannabis Control Regular Regulations Text Page 40 of 136 205 (1)The account manager shall attend and successfully complete all required track and trace system training, including any orientation and continuing education. (2) If the account manager did not complete the required track and trace system training prior to receiving their annual license, the account manager shall sign up for and complete state mandated training, as prescribed by the Bureau, within five business days of license issuance. (c)The account manager and each user shall be assigned a unique log-on, consisting of a username and password. The account manager or each user accessing the track and trace system shall only do so under his or her assigned log-on, and shall not use or access a log-on of any other individual. No account manager or user shall share or transfer his or her log-on, username, or password, to be used by any other individual for any reason. (d)The account manager shall maintain a complete, accurate, and up-to-date list of all track and trace system users, consisting of their full names and usernames. (e)A licensee shall monitor all compliance notifications from the track and trace system, and timely resolve the issues detailed in the compliance notification. (1)A licensee shall keep a record, independent of the track and trace system, of all compliance notifications received from the track and trace system, and how and when compliance was achieved. (2) If a licensee is unable to resolve a compliance notification within three business days of receiving the notification, the licensee shall notify the Bureau immediately. (f)A licensee is accountable for all actions its owners or employees take while logged into or using the track and trace system, or otherwise while conducting track and trace activities. Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070, 26160 and 26161, Business and Professions Code. § 5049. Track and Trace Reporting (a)A licensee shall record in the track and trace system all commercial cannabis activity, including: (1)Packaging of cannabis goods. (2)Sale and transfer of cannabis goods. (3)Transportation of cannabis goods to a licensee. (4)Receipt of cannabis goods. (5)Return of cannabis goods. (6)Destruction and disposal of cannabis goods. (7) Laboratory testing and results. Bureau of Cannabis Control Regular Regulations Text Page 41 of 136 206 (8)Any other activity as required pursuant to this division, or by any other licensing authority. (b)The following information shall be recorded for each activity entered in the track and trace system: (1)Name and type of the cannabis goods. (2)Unique identifier of the cannabis goods. (3)Amount of the cannabis goods, by weight or count, and total sale price of the cannabis goods, as applicable. (4)Date and time of the activity or transaction. (5)Name and license number of other licensees involved in the activity or transaction. (6) If the cannabis goods are being transported: (A)The licensee shall transport pursuant to a shipping manifest generated through the track and trace system, that includes items (1) through (5) of this subsection, as well as: (i) The name, license number, and premises address of the originating licensee. (ii)The name, license number, and licensed premises address of the licensee transporting the cannabis goods. (iii)The name, license number, and licensed premises address of the destination licensee receiving the cannabis goods into inventory or storage. (iv)The date and time of departure from the licensed premises and approximate date and time of departure from each subsequent licensed premises, if any. (v)Arrival date and estimated time of arrival at each licensed premises. (vi)Driver license number of the personnel transporting the cannabis goods, and the make, model, and license plate number of the vehicle used for transport. (B) Upon pick-up or receipt of cannabis goods for transport, storage, or inventory, a licensee shall ensure that the cannabis goods received are as described in the shipping manifest, and shall record acceptance and acknowledgment of the cannabis goods in the track and trace system. (C) If there are any discrepancies between the type or quantity specified in the shipping manifest and the type or quantity received by the licensee, the licensee shall record and document the discrepancy in the track and trace system and in any relevant business record. (7) If cannabis goods are being destroyed or disposed of, the licensee shall record in the track and trace system the following additional information: (A)The name of the employee performing the destruction or disposal. (B)The reason for destruction or disposal. Bureau of Cannabis Control Regular Regulations Text Page 42 of 136 207 (C)The name of the entity being used to collect and process cannabis waste, pursuant to section 5055 of this division. (8)Description for any adjustments made in the track and trace system, including, but not limited to: (A)Spoilage or fouling of the cannabis goods. (B) Any event resulting in exposure or compromise of the cannabis goods. (9)Any other information as required pursuant to this division, or by any other applicable licensing authorities. (c)Unless otherwise specified, all transactions must be entered into the track and trace system within 24 hours of occurrence. (d) Licensees shall only enter and record complete and accurate information into the track and trace system, and shall correct any known errors entered into the track and trace system immediately upon discovery. Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070, and 26160, Business and Professions Code. § 5050. Loss of Access (a) If at any point a licensee loses access to the track and trace system for any reason, the licensee shall prepare and maintain comprehensive records detailing all commercial cannabis activities that were conducted during the loss of access. (b)The licensee shall both document and notify the Bureau immediately: (1)When access to the system is lost; (2)When access to the system is restored; and (3)The cause for the loss of access. (c)Once access is restored, all commercial cannabis activity that occurred during the loss of access shall be entered into the track and trace system within three business days of access being restored. (d)A licensee shall not transport, transfer, receive, or deliver any cannabis goods until such time as access is restored and all information recorded in the track and trace system. Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070, and 26160, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 43 of 136 208 § 5051. Track and Trace System Reconciliation (a) In addition to other inventory reconciliation requirements under this division, a licensee shall reconcile the physical inventory of cannabis goods at the licensed premises with the records in the track and trace database at least once every 14 calendar days. (b) If a licensee finds a discrepancy between its physical inventory and the track and trace system database, the licensee shall conduct an audit, and notify the Bureau of any reportable activity pursuant to section 5036 of this division. Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070, and 26160, Business and Professions Code. § 5052. Temporary Licenses; Licensees in Operation at Time of Licensure (a)A licensee operating under a temporary license issued pursuant to section 5001 of this division is not required to record commercial cannabis activity in the track and trace system as otherwise required by this article. (b)Temporary licensees shall track and record all cannabis commercial activities and information required pursuant to this division and any other provision of law, at a minimum, on paper receipts, invoices, or manifests. (c)Any commercial cannabis activity conducted between annual license holders shall be recorded in the track and trace system. (d)Any licensee in operation at the time the annual license is issued shall enter all inventory into the track and trace system no later than 30 calendar days after the track and trace system account manager attends the training required pursuant to section 5048 of this division. Authority: Section 26013, Business and Professions Code. Reference: Sections 26050.1, 26067, 26070, and 26160, Business and Professions Code. Article 7. Returns and Destruction § 5052.1. Acceptance of Shipments (a) Licensees shall accept or reject in whole shipments of cannabis goods. (b)Notwithstanding subsection (a) of this section, if a licensee receives a shipment containing cannabis goods that differ from those listed on the sales invoice or receipt, the licensee shall reject the portion of the shipment that is not accurately reflected on the sales invoice or receipt. Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26070 and 26161, Business and Professions Code. § 5053. Returns Between Licensees (a) If a licensee discovers that a manufactured cannabis good that was purchased from another licensee is defective, the purchasing licensee may return the cannabis good to the selling licensee Bureau of Cannabis Control Regular Regulations Text Page 44 of 136 209 - only in exchange for a non-defective version of the same type of cannabis good or in exchange for a cannabis good of equal value. (b)Except as provided in subsection (a) of this section, a licensee shall not return cannabis goods purchased from another licensee. Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and 26070, Business and Professions Code. § 5054. Destruction of Cannabis Products Prior to Disposal (a) Licensees shall not dispose of cannabis goods, unless disposed of as cannabis waste, defined under section 5000(e) of this division. (b) In order to be disposed of as cannabis waste, cannabis goods must first be destroyed, which at a minimum, includes removing the cannabis goods from any packaging and rendering it unrecognizable and unusable. Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and 26070, Business and Professions Code. § 5055. Cannabis Waste Management (a)A licensee may not sell, transfer, donate, or give away cannabis waste., unless in accordance with this section. (b) Licensees shall comply with all applicable waste management laws including, but not limited to, Division 30 of the Public Resources Code. (c) For the purpose of this section, the following shall apply: (1) A “third-party waste hauler” means any of the following: (A)The local agency; (B) A waste hauler franchised or contracted by the local agency; or (C)A private waste hauler permitted by the local agency. (2)A “solid waste facility” means any of the following: (A)A manned, fully permitted solid waste landfill or transformation facility; (B) A manned, fully permitted composting facility or manned composting operation; (C)A manned, fully permitted in-vessel digestion facility or manned in-vessel digestion operation; (D)A manned, fully permitted transfer processing facility or manned transfer/processing operation; or (E)A manned, fully permitted chip and grind facility or manned chip and grind operation. Bureau of Cannabis Control Regular Regulations Text Page 45 of 136 210 (3)“Secured waste receptacle” or “secured area” means a receptacle area where physical access is restricted to the licensee, its employees, and third-party waste hauler, and public access, or any other access, to the designated receptacle or area is prohibited. (d)A licensee shall dispose of cannabis waste in a secured waste receptacle or in a secured area on the licensed premises, until it can be collected by the licensee or a third-party waste hauler, and processed at a solid waste facility. (e)A licensee shall have a cannabis waste management plan in place that identifies one or more of the following methods for managing cannabis waste: (1) If licensee is composting cannabis waste on a licensed premises, a licensee shall do so in compliance with title 14, California Code of Regulations, Chapter 3.1 (commencing with Section 17850). (2) If a licensee is self-hauling cannabis waste to a solid waste facility, a licensee shall do all of the following: (A)Obtain from the solid waste facility for each delivery of cannabis waste, a copy of a certified weight ticket or receipt documenting delivery. (B) Only the licensee or its employees may transport self-hauled cannabis waste. (3) If the licensee is using a third-party waste hauler to collect and process cannabis waste, a licensee shall do all the following: (A) A licensee shall maintain the following information for any third-party waste hauler who will collect and process the licensee’s cannabis waste and shall provide the information to the Bureau immediately upon request: (i)Name of local agency providing waste hauler services, if applicable; (ii)Company name and business address, of the waste hauler franchised or contracted by the local agency, or private waste hauler permitted by the local agency, if applicable; and (iii) Name and phone number of the primary contact person at the company. (B) Obtain documentation from the entity hauling the waste that indicates the date and time of each collection of cannabis waste at the licensed premises; and (C)Obtain a copy of the certified weight ticket or other documentation prepared by the entity hauling the waste that confirms receipt of the cannabis waste at the solid waste facility. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 46 of 136 211 Chapter 2. DISTRIBUTORS § 5300. Distribution Activities A licensed distributor shall distribute only cannabis goods, cannabis accessories, and licensees’ branded merchandise or promotional materials. Authority: Sections 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5301. Storage Services (a) A licensed distributor may provide storage services, including storage-only services that are unrelated to the quality assurance and laboratory testing processes, to a licensed cultivator, licensed manufacturer, licensed microbusiness, licensed retailer, or another licensed distributor. (b) A licensed distributor may provide storage services to other licensees for only cannabis goods, cannabis accessories, and licensees’ branded merchandise or promotional materials. (c)Notwithstanding subsection (b) of this section, a licensed distributor shall not store live plants on the licensed premises. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5302. Storage of Batches for Testing (a) A licensed distributor shall ensure that all cannabis goods batches are stored separately and distinctly from other cannabis goods batches on the licensed distributor’s premises. (b) A licensed distributor shall ensure a label with the following information is physically attached to each container of each batch: (1)The name and license number of the manufacturer or cultivator who provided the batch; (2)The date of entry into the licensed distributor’s storage area; (3)The unique identifiers and batch number associated with the batch; (4)A description of the cannabis goods with enough detail to easily identify the batch; (5)The weight of or quantity of units in the batch; and (6)The best-by, sell-by, or expiration date of the batch, if any. Authority: Section 26013, Business and Professions Code. Reference: Sections 26110 and 26120, Business and Professions Code. § 5303. Packaging and Labeling (a) A licensed distributor may package, re-package, label, and re-label cannabis, including pre- rolls, for retail sale. Bureau of Cannabis Control Regular Regulations Text Page 47 of 136 212 (b) A licensed distributor shall not package, re-package, label, or re-label manufactured cannabis products except when the licensed distributor also holds a manufacturing license and is packaging, re-packaging, labeling, or re-labeling its own manufactured cannabis products at its licensed manufacturing premises. (c)Notwithstanding subsection (b) of this section, licensed distributors may also re-label the package with the accurate amount of cannabinoids and terpenoids if laboratory testing determines that the manufactured product is labeled with incorrect amounts. Prior to re-labeling the package, the licensed distributor shall send the Certificate of Analysis from the licensed testing laboratory to the licensed manufacturer that manufactured the cannabis goods. Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and 26120, Business and Professions Code §5303.1. Net Weight of Dried Flower For purposes of this division, the net weight on any package of dried flower shall not be considered inaccurate if the actual weight is within plus or minus 2.5% of the labeled weight. Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and 26120, Business and Professions Code § 5304. Testing Arrangements After taking physical possession of a cannabis goods batch, the licensed distributor shall contact a testing laboratory and arrange for a laboratory employee to come to the licensed distributor’s licensed premises to select a representative sample for laboratory testing. Authority: Section 26013, Business and Professions Code. Reference: Sections 26104, 26110, Business and Professions Code. § 5305. Testing Sample (a)The licensed distributor shall ensure that the batch size from which the sample is taken meets the requirements of this division. (b) A licensed distributor or an employee of the licensed distributor shall be physically present to observe the laboratory employee obtain the sample of cannabis goods for testing and shall ensure that the increments are taken from throughout the batch. (c)The sampling shall be video recorded with the batch number stated verbally or in writing on the video at the beginning of the video and a visible time and date indication on the video recording footage. The video recordings shall be maintained for 90 days by the licensed distributor. (d)After the sample has been selected, both the licensed distributor and the laboratory employee shall sign and date the chain of custody form pursuant to section 5706 of this division, attesting to the sample selection having occurred. Bureau of Cannabis Control Regular Regulations Text Page 48 of 136 213 (e) A licensed distributor shall not assist the laboratory employee nor touch the cannabis goods or the sampling equipment while the laboratory employee is obtaining the sample. Authority: Section 26013, Business and Professions Code. Reference: Sections 26104 and 26110, Business and Professions Code. § 5306. Laboratory Testing Results (a) A sample “passes” a laboratory test when the sample meets specifications in chapter 6 of this division. (b)When a batch from a manufactured or harvest batch passes, the cannabis goods may be transported to one or more licensed retailers, licensed distributors, or licensed microbusinesses. (c)A sample “fails” a laboratory test when the sample does not meet specifications in chapter 6 of this division. (d) If a failed sample was collected from a batch and the batch could be remediated pursuant to section 5727 of this division, a licensed distributor may transport or arrange for the transportation of the batch to a manufacturer for remediation. (e) A licensed distributor shall destroy a batch that failed laboratory testing and cannot be remediated pursuant to section 5727 of this division. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26100, 26104 and 26110, Business and Professions Code. § 5307. Quality-Assurance Review When a licensed distributor receives a certificate of analysis from the licensed testing laboratory or upon transfer from another licensed distributor stating that the sample meets specifications required by law, the distributor shall ensure the following before transporting the cannabis goods to one or more licensed retailers or licensed microbusinesses: (a)The certificate of analysis for the required testing under section 5714 of this division that the licensed distributor received from the testing laboratory is the certificate of analysis that corresponds to the batch; (b)The label on the cannabis goods is consistent with the certificate of analysis regarding cannabinoid content and contaminants required to be listed by law; (c) The packaging and labeling of the cannabis goods complies with Business and Professions Code Section 26120 and all applicable regulations within this division as well as California Code of Regulations, Title 3, Division 8 and Title 17, Division 1, Chapter 13, except cannabis goods are not required to be labeled or otherwise identified as medicinal products prior to retail sale unless the cannabis goods must be labeled as such pursuant to the requirements prescribed by the State Department of Public Health in regulation; (d)The weight or count of the cannabis batch comports with that in the track and trace system. A licensed distributor shall use scales as required by the Act; and Bureau of Cannabis Control Regular Regulations Text Page 49 of 136 214 (e)All events prior to receipt have been entered into the track and trace system. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26110 and 26120, Business and Professions Code. § 5308. Insurance Requirements (a)An applicant for a distributor license shall provide the Bureau with a certificate of insurance that shows the types of insurance coverage and minimum amounts that have been secured as required by this section, and documentation establishing compliance with subsection (d) of this section. (b)A distributor licensee shall at all times carry and maintain commercial general liability insurance in the aggregate in an amount no less than $2,000,000 and in an amount no less than $1,000,000 for each loss. (c)A distributor licensee shall maintain the insurance required in subsection (b) of this section from an insurance company that is: (1)A non-admitted insurer that meets the requirements of Insurance Code section 1765.1 or 1765.2, and the insurance is placed pursuant to Insurance Code section 1763 and through a surplus line broker licensed under Insurance Code section 1765; (2)An insurer qualified to do business in California by the Secretary of State and authorized by the Insurance Commissioner to write the liability and property classes of insurance as defined by Insurance Code sections 102, 103, 107, 114, 108, and 120; or (3)A registered risk retention group compliant with the California Risk Retention Act of 1991. (See California Insurance Code sections 125-140.) (d)Admitted insurers and risk retention groups must show proof of capitalization in the amount of at least $10,000,000. (e) A distributor licensee shall notify the Bureau in writing within 10 calendar days of a lapse in insurance. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26051.5, Business and Professions Code. § 5309. Inventory Reconciliation (a) A licensed distributor shall reconcile all inventories of cannabis goods at least once every 14 calendar days. (b) A licensed distributor shall keep an inventory log containing the following information for each batch: (1)The name and license number of the manufacturer or cultivator who provided the batch; (2)The date of entry into the licensed distributor’s storage area; Bureau of Cannabis Control Regular Regulations Text Page 50 of 136 215 (3)The unique identifiers and batch number associated with the batch; (4)A description of the cannabis goods with enough detail to easily identify the batch; (5)The weight of or quantity of units in the batch; (6)The best-by, sell-by, or expiration date of the batch, if any; and (7)Where on the licensed premises the batch is kept. (c) If a licensed distributor finds a discrepancy between the inventory of stock and the inventory log or track and trace system that is outside of normal weight loss caused by moisture loss, the licensed distributor shall commence a full audit of the batch in which the discrepancy was found. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26160, Business and Professions Code. § 5310. Records In addition to the records required by section 5037 of this division, a licensed distributor shall maintain the following records: (a)Records relating to branding, packaging and labeling; (b) Inventory logs and records; (c)Transportation bills of lading and shipping manifests for completed transports and for cannabis goods in transit; (d)Vehicle and trailer ownership records; (e)Quality-assurance records; (f)Records relating to destruction of cannabis goods; (g)Laboratory-testing records; (h)Warehouse receipts; (i)Records relating to tax payments collected and paid under Revenue and Taxation Code sections 34011 and 34012. Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business and Professions Code. § 5311. Requirements for the Transportation of Cannabis Goods The following requirements apply when transporting cannabis goods between licensees or licensed premises: (a)Transportation shall only be conducted by persons holding a distributor license under the Act, or employees of those persons. Bureau of Cannabis Control Regular Regulations Text Page 51 of 136 216 (b) Prior to transporting any cannabis goods, the licensed distributor shall have a completed sales invoice or receipt that meets the requirements of Business and Professions Code section 26161. The licensed distributor shall only transport cannabis goods listed on the sales invoice or receipt. The sales invoice or receipt may not be altered or changed once transport begins. (c)All vehicles transporting cannabis goods for hire shall be required to have a motor carrier permit pursuant to Chapter 2 (commencing with Section 34620) of Division 14.85 of the Vehicle Code. (d)Transportation by means of aircraft, watercraft, drone, rail, human powered vehicle, and unmanned vehicle is prohibited. (e)Cannabis goods shall only be transported inside of a vehicle or trailer and shall not be visible or identifiable from outside of the vehicle or trailer. (f) Cannabis goods shall be locked in a box, container, or cage that is secured to the inside of the vehicle or trailer. For purposes of this section, the inside of the vehicle includes the trunk. (g)While left unattended, vehicles and trailers shall be locked and secured. (h) A licensed distributor shall not leave a vehicle or trailer containing cannabis goods unattended in a residential area or parked overnight in a residential area. (i)At a minimum, a licensed distributor shall have a vehicle alarm system on all transport vehicles and trailers. Motion detectors, pressure switches, duress, panic, and hold-up alarms may also be used. (j)Packages or containers holding cannabis goods shall not be tampered with, or opened, during transport. (k) A licensed distributor transporting cannabis goods shall only travel between licensees shipping or receiving cannabis goods and its own licensed premises when engaged in the transportation of cannabis goods. The licensed distributor may transport multiple shipments of cannabis goods at once in accordance with applicable laws. A licensed distributor shall not deviate from the travel requirements described in this section, except for necessary rest, fuel, or vehicle repair stops. (l)Under no circumstances may non-cannabis goods, except for cannabis accessories and licensees’ branded merchandise or promotional materials be transported with cannabis goods. (m)Vehicles and trailers transporting cannabis goods are subject to inspection by the Bureau at any licensed premises or during transport at any time. (n) Notwithstanding subsections (d) and (e) of this section, if it is not operationally feasible to transport cannabis goods inside of a vehicle or trailer because the licensed premises that the cannabis goods will be transported from and the licensed premises that will be receiving the cannabis goods are located within the same building or on the same parcel of land, the cannabis goods may be transported by foot, hand truck, fork lift, or other similar means. A shipping manifest that complies with this division is required when transporting cannabis goods pursuant to this subsection. Bureau of Cannabis Control Regular Regulations Text Page 52 of 136 217 Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5312. Required Transport Vehicle Information (a) In addition to the information required in section 5314 of this division, any licensed distributor who will be or is transporting cannabis goods shall provide the following information to the Bureau: (1) Proof that the licensed distributor owns or holds a valid lease for each vehicle and trailer used to transport cannabis goods; (2)The year, make, model, license plate number, and numerical Vehicle Identification Number (VIN) for each vehicle and trailer used to transport cannabis goods; and (3)Proof of insurance for each vehicle and trailer used to transport cannabis goods. (b) The licensed distributor shall provide the Bureau with the information required by this section in writing for any new vehicle or trailer that will be used to transport cannabis goods prior to using the vehicle or trailer to transport cannabis goods. (c)The licensed distributor shall provide the Bureau with any changes to the information required by this section in writing within 30 calendar days. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5313. Transport Personnel Requirements (a)No person under the age of 21 years old shall be in a commercial vehicle or trailer transporting cannabis goods; and (b)Only a licensee, an employee of the licensed distributor, or security personnel that meets the requirements of section 5045 of this division, shall be in a vehicle while transporting cannabis goods. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5314. Shipping Manifest (a)Prior to transporting cannabis goods, a licensed distributor shall generate a shipping manifest through the track and trace system for the following activities: (1)Testing and sampling; (2)Sale of cannabis goods to a licensee; (3)Destruction or disposal of cannabis goods; and (4)Any other activity, as required pursuant to this division, or by any other licensing authority. Bureau of Cannabis Control Regular Regulations Text Page 53 of 136 218 (b) The licensed distributor shall transmit the shipping manifest to the Bureau and the licensee that will receive the cannabis goods prior to transporting the cannabis goods. (c)The licensed distributor shall ensure and verify that the cannabis goods being taken into possession for transport at the originating licensed premises are as described and accurately reflected in the shipping manifest. For purposes of this section, the licensed distributor may verify that the cannabis goods are accurately reflected in the shipping manifest by confirming that the number of boxes of cannabis goods, type of cannabis goods, weight and or units of cannabis goods, matches the label on the boxes containing the cannabis goods. (1) The licensed distributor shall not take into possession or transport: (A) Any cannabis goods that are not on the shipping manifest; or (B) Any cannabis goods that are less than or greater than the amount reflected on the shipping manifest. (2) The licensed distributor is responsible for any discrepancies between the shipping manifest and the cannabis goods in its possession during transport, and subject to any enforcement or disciplinary action related to such discrepancy. (3) A licensed distributor shall not void or change a shipping manifest after departing from the originating licensed premises. (d)A shipping manifest shall accompany every transport of cannabis goods. (e)Notwithstanding subsection (a) of this section, if a transporting licensed distributor has not obtained access to the track and trace system, the licensed distributor shall complete the shipping manifest outside of the track and trace system and transmit it to the Bureau and the licensee receiving the shipment by electronic mail. (f) If the transporting licensed distributor has access to the track and trace system and the licensee receiving the shipment has not obtained access to the track and trace system, the licensed distributor shall complete the shipping manifest in the track and trace system and transmit it to the Bureau. However, the licensed distributor shall send a copy to the licensee receiving the shipment by electronic mail. Authority: Section 26013, Business and Professions Code. Reference: Sections 26067 and 26070, Business and Professions Code § 5315. Distributor Transport Only License (a) A licensed distributor transport only licensee may transport cannabis goods between licensees; however, they shall not transport any cannabis goods except for immature cannabis plants and seeds to a licensed retailer or licensed microbusiness. (b)A complete application for a distributor transport only license shall include all the information required in an application for a distributor license. Bureau of Cannabis Control Regular Regulations Text Page 54 of 136 219 - (c)The licensing fee for a distributor transport only license will be based in part upon whether the licensee intends to transport only cannabis goods that the licensee has cultivated or manufactured (self-distribution), or whether the licensee intends to transport cannabis goods cultivated or manufactured by other licensees. (d)A distributor transport only licensee shall comply with all of the requirements for a holder of a distributor license, except for those related to quality assurance and testing. (e)A distributor transport only licensee shall not hold title to any cannabis goods unless the licensee also holds a state-issued cultivation, manufacturing, retailer, or microbusiness license. (f)Holding a distributor transport only license shall not authorize a licensee to: (1)Engage in the delivery of cannabis goods as defined in Business and Professions Code section 26001(p); (2)Engage in the wholesale, destruction, packaging, labeling, or storing of cannabis goods; or (3)Arrange for the testing of cannabis goods by a testing laboratory. (g)Notwithstanding subsection (e) of this section, a distributor transport only licensee who is licensed to engage in self-distribution and whose licensed premises will be on the same property as their licensed cultivation or manufacturing premises shall not be required to comply with the security provisions contained in Article 5 of this division. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26070, Business and Professions Code. Chapter 3. RETAILERS § 5400. Access to Retailer Premises (a)Access to the licensed premises of a retailer with only an A-designation shall be limited to individuals who are at least 21 years of age. (b)Access to a licensed premises with only an M-designation shall be limited to individuals who are at least 18 years of age and have a valid physician’s recommendation for medicinal cannabis. (c)Access to a licensed premises with both an A-designation and an M-designation may include persons identified in subsections (a) and (b) of this section. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26140, Business and Professions Code. § 5401. [reserved] § 5402. Customer Access to the Retail Area (a) Individuals shall be granted access to the retail area to purchase cannabis goods only after the licensed retailer or an employee of the licensed retailer has confirmed the individual’s age and identity pursuant to section 5404 of this division. Bureau of Cannabis Control Regular Regulations Text Page 55 of 136 220 (b) The licensed retailer or at least one employee shall be physically present in the retail area at all times when individuals who are not employees of the licensed retailer are in the retail area. (c)All sales of cannabis goods, with the exception of cannabis goods sold through delivery, must take place within the retail area of the retailer’s licensed premises. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26140, Business and Professions Code. § 5403. Hours of Operation A licensed retailer shall sell and deliver cannabis goods only between the hours of 6:00 a.m. Pacific Time and 10:00 p.m. Pacific Time. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code § 5403.1 Requirements While Not Open for Business At any time the licensed premises is not open for retail sales, a licensed retailer shall ensure that: (a) The licensed premises is securely locked with commercial-grade, nonresidential door locks as defined in section 5046 of this division; (b) The licensed premises is equipped with an active alarm system pursuant to section 5047 of this division, which shall be activated when the licensed retailer or its employees are not on the licensed premises; and (c) Only employees of the licensee and other authorized individuals are allowed access to the licensed premises. For the purposes of this section, authorized individuals include individuals employed by the licensee as well as any outside vendors, contractors, or other individuals conducting business that requires access to the licensed premises. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code § 5404. Retail Customers (a) A licensed retailer shall only sell adult-use cannabis goods to individuals who are at least 21 years of age after confirming the customer’s age and identity by inspecting a valid form of identification provided by the customer as required by subsection (c) of this section. (b) A licensed retailer shall only sell medicinal cannabis goods to individuals who are at least 18 years of age and possesses a valid physician’s recommendation after confirming the customer’s age, identity, and physician’s recommendation as required by subsection (c) of this section. (c)Acceptable forms of identification include the following: Bureau of Cannabis Control Regular Regulations Text Page 56 of 136 221 (1)A document issued by a federal, state, county, or municipal government, or a political subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator's license, that contains the name, date of birth, height, gender, and photo of the person; (2)A valid identification card issued to a member of the Armed Forces that includes the person’s name, date of birth, and photo; or (3)A valid passport issued by the United States or by a foreign government. Authority: Section 26013, Business and Professions Code. Reference: Section 26140, Business and Professions Code. § 5405. Cannabis Goods Display (a)Cannabis goods for inspection and sale shall only be displayed in the retail area. (b)Cannabis goods may be removed from their packaging and placed in containers to allow for customer inspection. The containers shall not be readily accessible to customers without assistance of retailer personnel. A container must be provided to the customer by the licensed retailer or its employees, who shall remain with the customer at all times that the container is being inspected by the customer. (c)Cannabis goods removed from their packaging for display shall not be sold, shall not be consumed, and shall be destroyed pursuant to section 5054 of this division when the cannabis goods are no longer used for display. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code § 5406. Cannabis Goods for Sale A licensed retailer shall not make any cannabis goods available for sale or delivery to a customer unless: (a)The cannabis goods were received by the retail licensee from a licensed distributor or licensed microbusiness; (b) The licensed retailer has verified that the cannabis goods have not exceeded their expiration or sell-by date if one is provided; (c) In the case of manufactured cannabis products, the product complies with all requirements of Business and Professions Code section 26130 and and California Code of Regulations, Title 3, Division 8 and Title 17, Division 1, Chapter 13; (d)The cannabis goods have undergone laboratory testing as required by the Act and Chapter 6 of this division; (e)The packaging and labeling of the cannabis goods complies with Business and Professions Code Section 26120 and all applicable regulations within this division as well as California Code of Regulations, Title 3, Division 8 and Title 17, Division 1, Chapter 13; and Bureau of Cannabis Control Regular Regulations Text Page 57 of 136 222 (f)The cannabis goods comply with all applicable requirements found in the Act and applicable regulations. Authority: Section 26013, Business and Professions Code. Reference: Section 26070 and 26120, Business and Professions Code. § 5407. Sale of Non-Cannabis Goods on Premises In addition to cannabis goods, a licensed retailer may sell only cannabis accessories and any licensee’s branded merchandise or promotional materials. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5408. Sale of Live Plants and Seeds (a) A licensed retailer shall only sell live, immature cannabis plants and cannabis seeds if all of the following requirements are met: (1)The plant is not flowering; (2)The plant or seed originated from a nursery that holds a valid license from the Department of Food and Agriculture or a licensed microbusiness; and (3)A label is affixed to the plant or package containing any seeds which states “This product has not been tested pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act.” (b) A licensed retailer may not sell any other live plants. (c) A licensed retailer shall not apply nor use any pesticide, nor cause any pesticide to be applied nor used, on live plants. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26100, Business and Professions Code § 5409. Daily Limits (a) A licensed retailer shall not sell more than the following amounts to a single adult-use cannabis customer in a single day: (1)28.5 grams of non-concentrated cannabis. (2)8 grams of concentrated cannabis as defined in Business and Professions Code section 26001, including concentrated cannabis contained in cannabis products. (3)6 immature cannabis plants. (b) A licensed retailer shall not sell more than the following amounts to a single medicinal cannabis patient, or to a patient’s primary caregiver purchasing medicinal cannabis on behalf of the patient, in a single day: Bureau of Cannabis Control Regular Regulations Text Page 58 of 136 223 (1)8 ounces of medicinal cannabis in the form of dried mature flowers or the plant conversion as provided in Health and Safety Code section 11362.77. (2)12 immature cannabis plants. (c)Notwithstanding subsection (b) of this section, if a medicinal cannabis patient’s valid physician’s recommendation contains a different amount than the limits listed in this section, the medicinal cannabis patient may purchase an amount of medicinal cannabis consistent with the patient’s needs as recommended by a physician and documented in the physician’s recommendation. (d)The limits provided in subsection (a) and subsection (b) of this section shall not be combined to allow a customer to purchase cannabis goods in excess of any of the limits provided in this section. Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business and Professions Code; and Sections 11362.1 and 11362.77, Health and Safety Code. § 5410. Customer Return of Cannabis Goods (a) For the purposes of this section, “customer return” means a customer’s return of cannabis goods that were purchased from a licensed retailer, back to the licensed retailer the cannabis goods were purchased from. (b) A licensed retailer may accept customer returns of cannabis goods that were previously sold to a customer. (c) A licensed retailer shall not resell cannabis goods that have been returned. (d) A licensed retailer shall treat any cannabis goods abandoned on the licensed retailer premises as a customer return. (e) A licensed retailer shall destroy all cannabis goods that have been returned to the licensed retailer by a customer, in accordance with sections 5054 and 5055 of this division. Authority: Section 26013, Business and Professions Code. Reference: Section 26011.5, 26012, and 26070, Business and Professions Code § 5411. Free Cannabis Goods (a) A licensed retailer shall not provide free cannabis goods to any person. A licensed retailer shall not allow individuals who are not employed by the licensed retailer to provide free cannabis goods to any person on the licensed premises. (b)Notwithstanding subsection (a) of this section, in order to provide access to medicinal cannabis patients who have difficulty accessing medicinal cannabis goods, a licensee who holds an M-Retailer license, an M-Retailer Non-storefront license, or an M-Microbusiness license that is authorized for retail sales may provide free medicinal cannabis goods if all of the following criteria are met: Bureau of Cannabis Control Regular Regulations Text Page 59 of 136 224 (1)Free cannabis goods are provided only to a medicinal cannabis patient or primary caregiver for the patient in possession identification card issued under Section 11362.71 of the Health and Safety Code. (2)The cannabis goods comply with all applicable laboratory testing requirements under this division. (3)Prior to being provided to the patient or primary caregiver, the cannabis goods have been properly recorded in the track and trace system as belonging to the licensed retailer. (4)The cannabis goods shall not leave the licensed premises unless placed in a resealable child- resistant opaque package as required for purchased cannabis goods under Business and Professions Code section 26070.1. (5)The cannabis goods shall be applied toward the daily purchase limit for a medicinal cannabis customer pursuant to section 5409 of this division. (6)The event shall be properly recorded in the licensed retailer’s inventory records and the track and trace system. (c) In addition to the provision of free cannabis goods in subsection (b) of this section, a licensee may donate cannabis goods and the use of equipment in compliance with any compassionate use, equality, or other similar program administered by a local jurisdiction. The licensee shall ensure that all cannabis goods provided pursuant to this subsection comply with subsections (b)(2) and (b)(6) of this section. Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26153 and 26160, Business and Professions Code. § 5412. Prohibition on Packaging and Labeling by a Retailer (a) A licensed retailer shall not accept, possess, or sell cannabis goods that are not packaged as they will be sold at final sale, in compliance with this division. (b) A licensed retailer shall not package or label cannabis goods. (c) A licensed retailer who also holds a distribution, manufacturing, or cultivation license may package and label cannabis goods as allowed by the distribution, manufacturing, or cultivation license at their licensed distribution, manufacturing, or cultivation premises. Authority: Section 26013, Business and Professions Code. Reference: Section 26120, Business and Professions Code § 5413. Exit Packaging Cannabis goods purchased by a customer shall not leave the licensed retailer’s premises unless the goods are placed in a resealable child-resistant opaque exit package. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070.1 and 26120, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 60 of 136 225 - § 5414. Non-Storefront Retailer (a)A non-storefront retailer licensee shall be authorized to conduct retail cannabis sales exclusively by delivery as defined in Business and Professions Code section 26001(p). (b)A complete application for a non-storefront retailer license shall include all the information required in an application for a retailer license. (c) A Non-Storefront Retailer licensee shall comply with all the requirements applicable to retailer licensees, except for those provisions related to public access to the licensed premises. and the retail area. (d)The licensed premises of a non-storefront retailer licensee shall be closed to the public. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26070, Business and Professions Code. § 5415. Delivery Employees (a)All deliveries of cannabis goods shall be performed by a delivery employee that is directly employed by a licensed retailer. (b)Each delivery employee of a licensed retailer shall be at least 21 years of age. (c)All deliveries of cannabis goods shall be made in person. A delivery of cannabis goods shall not be made through the use of an unmanned vehicle. (d)The process of delivery begins when the delivery employee leaves the retailer’s licensed premises with the cannabis goods for delivery. The process of delivering ends when the delivery employee returns to the retailer’s licensed premises after delivering the cannabis goods to the customer(s). During the process of delivery, the retailer’s delivery employee may not engage in any activities except for cannabis goods delivery and necessary rest, fuel, or vehicle repair stops. (e)A delivery employee of a licensed retailer shall, during deliveries, carry a copy of the retailer’s current license, the employee’s government-issued identification, and an identification badge provided by the employer pursuant to section 5043 of this division. (f)Prior to providing cannabis goods to a delivery customer, a delivery employee shall confirm the identity and age of the delivery customer as required by section 5404 of this division, and place the cannabis goods in a resealable child-resistant opaque exit package. (g) A licensed retailer shall maintain an accurate list of the retailer’s delivery employees and shall provide the list to the Bureau upon request. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code. § 5416. Delivery to a Physical Address (a) A delivery employee may only deliver cannabis goods to a physical address in California. Bureau of Cannabis Control Regular Regulations Text Page 61 of 136 226 (b) A delivery employee shall not leave the State of California while possessing cannabis goods. (c) A delivery employee shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency. This prohibition applies to land held in trust by the United States for a tribe or an individual tribal member unless the delivery is authorized by and consistent with applicable tribal law. (d)A delivery employee may deliver to any jurisdiction within the State of California. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code. § 5417. Delivery Vehicle Requirements (a)A retailer’s delivery employee, carrying cannabis goods for delivery, shall only travel in an enclosed motor vehicle. Any vehicle used in the delivery of cannabis goods shall be operated by a delivery employee of the licensee. Only the licensee or an employee of the retailer licensee for whom delivery is being performed shall be in the delivery vehicle. (b)While carrying cannabis goods for delivery, a retailer’s delivery employee shall ensure the cannabis goods are not visible to the public. Cannabis goods shall be locked in a box, container, or cage that is secured on the inside of the vehicle. For purposes of this section, the inside of the vehicle includes the trunk. (c)A retailer’s delivery employee shall not leave cannabis goods in an unattended motor vehicle unless the motor vehicle is locked and equipped with an active vehicle alarm system. (d)A vehicle used for the delivery of cannabis goods shall be outfitted with a dedicated Global Positioning System (GPS) device for identifying the geographic location of the delivery vehicle. A dedicated GPS device must be owned by the licensee and used for delivery only. The device shall be either permanently or temporarily affixed to the delivery vehicle and shall remain active and inside of the delivery vehicle at all times during delivery. At all times, the licensed retailer shall be able to identify the geographic location of all delivery vehicles that are making deliveries for the licensed retailer and shall provide that information to the Bureau upon request. (e)Upon request, a licensed retailer shall provide the Bureau with information regarding any motor vehicle used for the delivery of cannabis goods, including the vehicle’s make, model, color, Vehicle Identification Number, license plate number and Department of Motor Vehicles registration information. (f)Any motor vehicle used by a licensed retailer to deliver cannabis goods is subject to inspection by the Bureau. Vehicles used to deliver cannabis goods may be stopped and inspected by the Bureau at any licensed premises or during delivery. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code. § 5418. Cannabis Goods Carried During Delivery (a)A retailer’s delivery employee shall not carry cannabis goods in the delivery vehicle in excess of $10,000 at any time. The value of cannabis goods shall be determined using the current retail Bureau of Cannabis Control Regular Regulations Text Page 62 of 136 227 price of all cannabis goods carried by, or within the delivery vehicle of, the retailer’s delivery employee. (b)A delivery employee may only carry cannabis goods in the delivery vehicle and may only perform deliveries for one licensed retailer at a time. A delivery employee must depart and return to the same licensed premises before taking possession of any cannabis goods from another licensee to perform deliveries. (c)A retailer’s delivery employee shall not leave the licensed premises with cannabis goods without at least one delivery order that has already been received and processed by the licensed retailer. (d)Before leaving the licensed premises, the retailer’s delivery driver must have a delivery inventory ledger of all cannabis goods provided to the retailer’s delivery driver. For each cannabis good, the delivery inventory ledger shall include the type of good, the brand, the retail value, the track and trace identifier, and the weight, volume or other accurate measure of the cannabis good. After each customer delivery, the delivery inventory ledger must be updated to reflect the current inventory in possession of the retailer’s delivery driver. (e)The retailer’s delivery driver shall maintain a log that includes all stops from the time the retailer’s delivery driver leaves the licensed premises to the time that the retailer’s delivery driver returns to the licensed premises, and the reason for each stop. The log shall be turned in to the retailer when the retailer’s delivery driver returns to the licensed premises. The licensed retailer must maintain the log as a commercial cannabis activity record as required by this division. (f)Prior to arrival at any delivery location, the licensed retailer must have received a delivery request from the customer and provided the delivery request receipt to the retailer’s delivery driver electronically or in hard copy. The delivery request receipt provided to the retailer’s delivery driver shall contain all of the information required in section 5420 of this division, except for the date and time the delivery was made, and the signature of the customer. (g) Immediately upon request by the Bureau or any law enforcement officer, the retailer’s delivery driver shall provide: (1)All delivery inventory ledgers from the time the retailer’s delivery driver left the licensed premises up to the time of the request; (2)All delivery request receipts for cannabis goods carried by the driver, in the delivery vehicle, or any deliveries that have already been made to customers; and (3)The log of all stops from the time the retailer’s delivery driver left the licensed premises up to the time of the request. (h) If a retailer’s delivery driver does not have any delivery requests to be performed for a 30- minute period, the retailer’s delivery driver shall not make any additional deliveries and shall return to the licensed premises. Required meal breaks shall not count toward the 30-minute period. Bureau of Cannabis Control Regular Regulations Text Page 63 of 136 228 (i)Upon returning to the licensed premises, all undelivered cannabis goods shall be returned to inventory and all necessary inventory and track-and-trace records shall be updated as appropriate that same day. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code. § 5419. Cannabis Consumption During Delivery A retailer’s delivery employees shall not consume cannabis goods while delivering cannabis goods to customers. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code. § 5420. Delivery Request Receipt A licensed retailer shall prepare a hard copy or electronic delivery request receipt for each delivery of cannabis goods. (a)The delivery request receipt shall contain the following: (1)The name and address of the licensed retailer; (2) The first name and employee number of the retailer’s delivery employee who delivered the order; (3)The first name and employee number of the retailer’s employee who prepared the order for delivery; (4)The first name of the customer and a retailer-assigned customer number for the person who requested the delivery; (5)The date and time the delivery request was made; (6)The delivery address; (7)A detailed description of all cannabis goods requested for delivery. The description shall include the weight, volume, or any other accurate measure of the amount of all cannabis goods requested; (8)The total amount paid for the delivery, including any taxes or fees, the cost of the cannabis goods, and any other charges related to the delivery; and (9)Upon delivery, the date and time the delivery was made, and the handwritten or electronic signature of the customer who received the delivery. (b)At the time of the delivery, the delivery employee of the retailer shall provide the customer who placed the order with a hard or electronic copy of the delivery request receipt. The delivery employee shall retain a hard or electronic copy of the signed delivery request receipt for the licensed retailer’s records. Bureau of Cannabis Control Regular Regulations Text Page 64 of 136 229 (c) For the purposes of this section, an employee number is a distinct number assigned by a licensed retailer to their employees that would allow the licensed retailer to identify the employee on documents or records using the employee number rather than the employee’s full name. A licensed retailer shall be able to identify the employee associated with each employee number upon request from the Bureau. (d)For the purposes of this section, a customer number is a distinct number assigned by a licensed retailer to a customer that would allow the licensed retailer to identify the customer in documents or records using the customer number rather than the customer’s full name. A licensed retailer shall be able to identify the customer associated with each customer number upon request from the Bureau. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26090, and 26160, Business and Professions Code. § 5421. Delivery Route While making deliveries of cannabis goods, a retailer’s delivery employee shall only travel from the retailer’s licensed premises to the delivery address; from one delivery address to another delivery address; or from a delivery address back to the retailer’s licensed premises. A delivery employee of a retailer shall not deviate from the delivery path described in this section, except for necessary rest, fuel, or vehicle repair stops, or because road conditions make continued use of the route unsafe, impossible, or impracticable. Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and 26090, Business and Professions Code. § 5422. Receiving Shipments of Inventory (a) A licensed retailer shall receive a shipment of cannabis goods only from a licensed distributor or licensed microbusiness. (b) A licensed retailer shall accept shipments of cannabis goods only between the hours of 6:00 a.m.Pacific Time and 10:00 p.m. Pacific Time. (c)During business hours, shipments of cannabis goods shall not enter the licensed premises through an entrance or exit that is available for use by the public. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. § 5423. Inventory Documentation A licensed retailer shall maintain an accurate record of its inventory. A licensed retailer shall provide the Bureau with the record of inventory immediately upon request. A licensed retailer shall keep a record of the following information for all cannabis goods the licensed retailer has in its inventory: Bureau of Cannabis Control Regular Regulations Text Page 65 of 136 230 (a) A description of each item such that the cannabis goods can easily be identified; (b)An accurate measurement of the quantity of the item; (c)The date and time the cannabis goods were received by the licensed retailer; (d)The sell-by or expiration date provided on the package of cannabis goods, if any; (e)The name and license number of the licensed distributor or licensed microbusiness that transported the cannabis goods to the licensed retailer; and (f) The price the licensed retailer paid for the cannabis goods, including taxes, delivery costs, and any other costs. Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business and Professions Code. § 5424. Inventory Reconciliation (a) A licensed retailer shall perform a reconciliation of its inventory at least once every 14 calendar days. (b) In conducting an inventory reconciliation, a licensed retailer shall verify that the licensed retailer’s physical inventory is consistent with the licensed retailer’s records pertaining to inventory. (c)The result of inventory reconciliation shall be retained in the licensed retailer’s records and shall be made available to the Bureau upon request. (d) If a licensed retailer identifies any evidence of theft, diversion, or loss, the licensed retailer shall notify the Bureau and law enforcement pursuant to section 5036 of this division. (e) If a significant discrepancy as defined in section 5034 of this division is discovered between a licensed retailer’s physical inventory and the licensed retailer’s inventory records, the licensed retailer shall notify the Bureau and law enforcement pursuant to section 5036 of this division. Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business and Professions Code. § 5425. Record of Sales (a) A licensed retailer shall maintain an accurate record of sale for every sale made to a customer. (b)A record of cannabis goods sold to a customer shall contain the following information: (1)The first name and employee number of the retailer employee who processed the sale; (2)The first name and the retailer-assigned customer number for the customer who made the purchase; (3)The date and time of the transaction; Bureau of Cannabis Control Regular Regulations Text Page 66 of 136 231 (4)A list of all the cannabis goods purchased, including the quantity purchased; and (5)The total amount paid for the sale including the individual prices paid for each cannabis good purchased and any amounts paid for taxes. (c) For the purposes of this section, an employee number is a distinct number assigned by a licensed retailer to their employees that would allow the licensed retailer to identify the employee on documents or records using the employee number rather than the employee’s full name. A licensed retailer shall be able to identify the employee associated with each employee number upon request from the Bureau. (d)For the purposes of this section, a customer number is a distinct number assigned by a licensed retailer to a customer that would allow the licensed retailer to identify the customer in documents or records using the customer number rather than the customer’s full name. A licensed retailer shall be able to identify the customer associated with each customer number upon request from the Bureau. Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business and Professions Code. § 5426. Records All licensed retailer-specific records in this chapter shall be maintained in accordance with section 5037 of this division. Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business and Professions Code. § 5427. Retailer Premises to Retailer Premises Transfer (a)A licensee who holds multiple retail licenses may arrange for the transfer of cannabis goods from one licensed retail premises to another licensed retail premises if both retail licenses are held under the same ownership. (b)Cannabis goods transferred to a licensed retail premises under subsection (a) of this section may be sold by the licensed retailer receiving the cannabis goods only if the cannabis goods comply with all requirements found in the Act and this division. (c)The transportation of cannabis goods under this section must comply with all requirements found within the Act and this division. (d)Any movement of cannabis goods under this section shall be properly entered into the state track and trace system. Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 67 of 136 232 Chapter 4. MICROBUSINESS § 5500. Microbusiness (a) In order to hold a microbusiness license, a licensee must engage in at least three (3) of the following commercial cannabis activities: cultivation, manufacturing, distribution, and retail sale. License types created by the California Department of Food and Agriculture or the State Department of Public Health in regulation shall not be considered qualifying commercial cannabis activities for purposes of obtaining a microbusiness license. (b)An applicant for a microbusiness license shall indicate on the application for licensure which commercial cannabis activities the applicant intends to engage in. (c)An application for a microbusiness license shall include: (1)For an application indicating that the applicant intends to engage in cultivation under the microbusiness license all the required information under sections 5002, 5501, 5502 and 5503 of this division. (2)For an application indicating that the applicant intends to engage in manufacturing under the microbusiness license all the required information under sections 5002 and 5504 of this division. (3)For an application indicating that the applicant intends to engage in distribution under the microbusiness license all the required information for an application seeking a distributor license. (4)For an application indicating that the applicant intends to engage in distribution, transport- only under the microbusiness license, all the required information for an application seeking a distributor, transport-only license. (5)For an application indicating that the applicant intends to engage in retail sale under the microbusiness license, all the required information for an application seeking a retailer license. (6)For an application indicating that the applicant intends to engage in non-storefront retail sale under the microbusiness license, all the required information for an application seeking a non- storefront retailer license. (d)All cultivation, manufacturing, distribution, and retail activities performed by a licensee under a microbusiness license shall occur on the same licensed premises. (e) A holder of a microbusiness license shall comply with the following: (1) A holder of a microbusiness license engaged in cultivation shall comply with all the rules and requirements applicable to the cultivation license type suitable for the cultivation activities of the licensee. Bureau of Cannabis Control Regular Regulations Text Page 68 of 136 233 (2) A holder of a microbusiness license engaged in manufacturing shall comply with all the rules and requirements applicable to a Manufacturer 1 license in Division 1 of Title 17 of the California Code of Regulations. (3) A holder of a microbusiness license engaged in distribution shall comply with all the rules and requirements applicable to a distributor license in this division. (4) A holder of a microbusiness license engaged in retail sale shall comply with all the rules and requirements applicable to a retailer license, or a non-storefront retailer license if retail sales are conducted by delivery only in this division. (f) A holder of a microbusiness license may only engage in the commercial cannabis activity requested in the license application and approved by the Bureau at the time the license is issued. If the holder of a microbusiness license wants to engage in an additional commercial cannabis activity after the license is issued, the licensee shall submit a request for a modification of the licensed premises pursuant to section 5027 of this division. (g) A holder of a microbusiness license shall comply with all the security rules and requirements applicable to the corresponding license type suitable for the activities of the licensee. (h) Areas of the licensed premises for manufacturing and cultivation shall be separated from the distribution and retail areas by a wall and all doors between the areas shall remain closed when not in use. (i)A suspension or revocation of a microbusiness licensee shall affect all commercial cannabis activities allowed pursuant to that license. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26070, Business and Professions Code. § 5501. Microbusiness Applications Including Cultivation Activities In addition to the information required in section 5002 of this division, an application for a microbusiness license to engage in cultivation shall include the following: (a)Evidence of enrollment with the applicable Regional Water Quality Control Board or State Water Resources Control Board for water quality protection programs or written verification from the appropriate Board that enrollment is not necessary. (b)Evidence that the applicant has conducted a hazardous materials record search of the EnviroStor database for the proposed premises. If hazardous sites were encountered, the applicant shall provide documentation of protocols implemented to protect employee health and safety. (c) For indoor and mixed-light cultivation, identification of all power sources for cultivation activities, including, but not limited to: illumination, heating, cooling, and ventilation. (d)A premises diagram pursuant to section 5006 of this division that shall also include: (1)All roads and water crossings on the property. Bureau of Cannabis Control Regular Regulations Text Page 69 of 136 234 (2) If the applicant is proposing to use a diversion from a waterbody, groundwater well, or rain catchment system as a water source for cultivation, the following locations on the property diagram with locations also provided as coordinates in either latitude and longitude or the California Coordinate System: (A) Sources of water used, including the location of waterbody diversion(s), pump location(s), and distribution system; and (B) Location, type, and capacity of each storage unit to be used for cultivation. (e)A proposed cultivation plan pursuant to section 5502 of this division. (f) Identification of all water sources used for cultivation activities and the applicable supplemental information for each source as required by section 5503 of this division: (1)A retail water supplier; (2)A groundwater well; (3) A rainwater catchment system; or (4)A diversion from a surface waterbody or an underground stream flowing in a known and definite channel. (g)A copy of any final lake or streambed alteration agreement issued by the California Department of Fish and Wildlife, pursuant to Fish and Game Code sections 1602 and 1617, or written verification from the California Department of Fish and Wildlife that a lake and streambed alteration agreement is not required. (h)An attestation that the applicant entity is an "agricultural employer" as defined by the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act of 1975; Division 2, Part 3.5 (commencing with Section 1140) of the Labor Code. (i)An attestation that the local fire department has been notified of the cultivation site if the applicant entity is an indoor license type. (j)An acknowledgement that the applicant understands that the information provided in the application that is relevant to the cultivation operation may be shared with the Department of Food and Agriculture for purposes of evaluating the applicant’s qualifications for licensure. If the Department of Food and Agriculture corresponds directly with the applicant on matters related to the application, the applicant shall agree to cooperate. The applicant shall further agree that the Department of Food and Agriculture may conduct inspections on the areas of the premises related to their respective oversight authority. (k) If applicable, a detailed description of any fines or penalties for cultivation or production of a controlled substance on public or private land pursuant to Fish and Game Code section 12025 or 12025.1 against the applicant or a business entity in which the applicant was an owner or officer within 3 years preceding the date of application. Bureau of Cannabis Control Regular Regulations Text Page 70 of 136 235 Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26050, 26051.5 and 26070, Business and Professions Code. § 5502. Cultivation Plan Requirements A cultivation plan shall include all of the following: (a) A detailed premises diagram showing all cultivation activity areas, boundaries, and dimensions in feet. The total area of the following cultivation activity areas shall be less than 10,000 square feet as provided in Business and Professions Code section 26070. (1)Canopy area(s) (which shall contain mature plants, at any point in time), including aggregate square footage if the canopy areas are noncontiguous; (2)Area(s) outside of the canopy where only immature plants shall be maintained, if applicable; (3) Designated pesticide and other agricultural chemical storage area(s); (4)Designated processing area(s) if the licensee will process on site; (5)Designated packaging area(s) if the licensee will package products on site; (6)Designated composting area(s) if the licensee will compost plant or cannabis waste on site; (7)Designated secured area(s) for cannabis waste if different than subsection (a)(6) of this section; (8)Designated area(s) for harvested cannabis storage; (9) Designated research and development area(s) which may contain mature plants for nursery only; (10) Designated seed production area(s) which may contain mature plants for nursery only; and (b)For purposes of subsection(a)(1) in this section, canopy shall be calculated in square feet and measured using clearly identifiable boundaries of all areas(s) that will contain mature plants at any point in time, including all of the space(s) within the boundaries. Canopy may be noncontiguous, but each unique area included in the total canopy calculation shall be separated by an identifiable boundary which include, but are not limited to: interior walls, shelves, greenhouse walls, hoop house walls, garden benches, hedgerows, fencing, garden beds, or garden plots. If mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total canopy calculation. (c) For indoor and mixed-light cultivation, a lighting diagram with the following information shall be included: (1) Location of all lights in the canopy area(s); and (2)Maximum wattage, or wattage equivalent, of each light. (d)A pest management plan which shall include, but not be limited to, the following: Bureau of Cannabis Control Regular Regulations Text Page 71 of 136 236 (1)Product name and active ingredient(s) of all pesticides to be applied to cannabis during any stage of plant growth; and (2) Integrated pest management protocols including chemical, biological and cultural methods the applicant anticipates using to control or prevent the introduction of pests on the cultivation site. (e)Cannabis waste procedures meeting the requirements of section 5002(c)(29)(E) of this division. Authority: Section 26013, Business and Professions Code. Reference: Sections 26050, 26051.5 and 26070, Business and Professions Code. § 5503. Supplemental Water Source Information The following information shall be provided for each water source identified by the applicant: (a)Retail water supply sources: (1) If the water source is a retail water supplier, as defined in Water Code section 13575, identify the retail water supplier. (2) If the water source is a small retail water supplier, such as a delivery service, and is subject to Business and Professions Code section 26060.1(a)(1)(B): (A) If the retail water supplier contract is for delivery or pickup of water from a surface water body or an underground stream flowing in a known and definite channel, provide all of the following: (i)The name of the retail water supplier under the contract; (ii)The geographic location coordinates in either latitude and longitude or the California Coordinate System of any point of diversion used by the retail water supplier to divert water delivered to the applicant under the contract; (iii)The authorized place of use of any water right used by the retail water supplier to divert water delivered to the applicant under the contract; and (iv)The maximum amount of water delivered to the applicant for cannabis cultivation in any year. (B) If the retail water supplier contract is for delivery or pickup of water from a groundwater well, provide all of the following: (i)The name of the retail water supplier; (ii)The geographic location coordinates for any groundwater well used to supply water delivered to the applicant, in either latitude and longitude or the California Coordinate System; (iii)The maximum amount of water delivered to the applicant for cannabis cultivation in any year; and Bureau of Cannabis Control Regular Regulations Text Page 72 of 136 237 - (iv)A copy of the well log filed with the Department of Water Resources pursuant to Water Code section 13751 for each percolating groundwater well used to divert water delivered to the applicant. If no well log is available, the applicant shall provide evidence from the Department of Water Resources indicating that the Department of Water Resources does not have a record of the well log. When no well log is available, the State Water Resources Control Board may request additional information about the well. (b) If the water source is a groundwater well: (1)The groundwater well’s geographic location coordinates in either latitude and longitude or the California Coordinate System; and (2)A copy of the well log filed with the Department of Water Resources pursuant to Water Code section 13751. If no well log is available, the applicant shall provide evidence from the Department of Water Resources indicating that the Department of Water Resources does not have a record of the well log. If no well log is available, the State Water Resources Control Board may request additional information about the well. (c) If the water source is a rainwater catchment system: (1)The total square footage of the catchment footprint area(s); (2)The total storage capacity, in gallons, of the catchment system(s); and (3)A detailed description of the type, nature, and location of each catchment surface. Examples of catchment surfaces include a rooftop and greenhouse. (d) If the water source is a diversion from a waterbody, provide any applicable statement, application, permit, license, or small irrigation use registration identification number(s); and either: (1)A copy of any applicable registrations, permits, or licenses or proof of a pending application, issued under Part 2 (commencing with Section 1200) of Division 2 of the Water Code as evidence of approval of a water diversion by the State Water Resources Control Board; (2) A copy of any statements of diversion and use filed with the State Water Resources Control Board before October 31, 2017, detailing the water diversion and use; or (3)A copy of documentation submitted to the State Water Resources Control Board before October 31, 2017, demonstrating that the diversion is authorized under a riparian right and that no diversion occurred in any calendar year between January 1, 2010, and January 1, 2017. (4) If the applicant has claimed an exception from the requirement to file a statement of diversion and use, pursuant to Water Code section 5101 the applicant shall provide a copy of the documentation submitted to the State Water Resources Control Board before January 1, 2019, demonstrating that the diversion is subject to Water Code section 5101, subdivision (a), (c), (d), or (e). Authority: Section 26013, Business and Professions Code. Reference: Sections 26050, 26051.5 and 26070, Business and Professions Code; and Section 13149, Water Code. Bureau of Cannabis Control Regular Regulations Text Page 73 of 136 238 § 5504. License Issuance in an Impacted Watershed If the State Water Resources Control Board or the Department of Fish and Wildlife finds, based on substantial evidence, that a microbusiness’ cannabis cultivation is causing significant adverse impacts on the environment in a watershed or other geographic area, the Bureau shall not issue new microbusiness licenses that include cultivation activities or increase the total number of plant identifiers within that watershed or area. Authority: Section 26013, Business and Professions Code. Reference: Section 26011.5, 26055, 26070, Business and Professions Code. § 5505. Cultivation Records for Licensees Engaging in Cultivation Activities In addition to the records required by section 5037 of this division, a microbusiness engaging in cultivation activities shall maintain the following records: (a)Cultivation plan(s); (b)All records evidencing compliance with the environmental protection measures required in sections 5501, 5502, 5503, and 5504 of this division; and (c) All unique identifiers (UID) assigned to product in inventory and all unassigned UIDs. UIDs associated with product that has been retired from the track and trace system must be retained for six (6) months after the date the tags were retired. Authority: Section 26013, Business and Professions Code. Reference: Sections 26069, 26160 and 26161, Business and Professions Code. § 5506 Microbusiness Applications Including Manufacturing Activities In addition to the information required in section 5002 of this division, an application for a microbusiness license that engages or will engage in manufacturing, shall include the following: (a)The type of activity conducted at the premises (extraction, infusion, packaging, and/or labeling); (b)The types of products that will be manufactured, packaged, or labeled; (c)The name, title and phone number of the on-site individual who manages the operation of the premises; (d)The name, title and phone number of an alternate contact person for the premises; (e)The number of employees at the premises; (f) The following information: (1)A description of inventory control procedures sufficient to demonstrate how the applicant will comply with the requirements of Section 40282 of Title 17 of the California Code of Regulations, or a copy of the standard operating procedure addressing inventory control; Bureau of Cannabis Control Regular Regulations Text Page 74 of 136 239 (2)A description of quality control procedures sufficient to demonstrate how the applicant will comply with all of the applicable requirements specified in Sections 40232-40268 of Title 17 of the California Code of Regulations or a copy of the standard operating procedure addressing quality control; (3)A description of security procedures sufficient to demonstrate how the applicant will comply with the requirements of Section 40200 of Title 17 of the California Code of Regulations, or a copy of the standard operating procedure addressing security procedures; (4)A description of the waste disposal procedures sufficient to demonstrate how the applicant will comply with the requirements of Section 40290 of Title 17 of the California Code of Regulations, or a copy of the standard operating procedure addressing waste management. (g)Any manufacturer submitting operating procedures and protocols to the Department pursuant to the Act and this chapter may claim such information as a trade secret or confidential by clearly identifying such information as “confidential” on the document at the time of submission. Any claim of confidentiality by a manufacturer must be based on the manufacturer’s good faith belief that the information marked as confidential constitutes a trade secret as defined in Civil Code section 3426.1(d) or is otherwise exempt from public disclosure under the California Public Records Act in Government Code section 6250 et seq. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26050, 26051.5, 26055, and 26070, Business and Professions Code. § 5507 Microbusiness Records for Licensees Engaging in Manufacturing Activities In addition to the records required by section 5037 of this division, a microbusiness engaging in manufacturing activities shall maintain the following records: (a)Records related to quality of raw materials and ingredients, per section 40252 of Title 17 of the California Code of Regulations. (b)Records related to manufacturing operations, per section 40254 of Title 17 of the California Code of Regulations. (c)Records related to written hazard analysis, per section 40256 of Title 17 of the California Code of Regulations. (d) Records related to preventative controls, per section 40258 of Title 17 of the California Code of Regulations. (e)Records related to the master manufacturing protocol, per section 40262 of Title 17 of the California Code of Regulations. (f) Batch production record, per section 40264 of Title 17 of the California Code of Regulations. (g)Records related to product complaints, per section 40266 of Title 17 of the California Code of Regulations. Bureau of Cannabis Control Regular Regulations Text Page 75 of 136 240 (h)Records related to recalls, per section 40268 of Title 17 of the California Code of Regulations. Authority: Section 26013, Business and Professions Code. Reference: Sections 26160, Business and Professions Code. Chapter 5. CANNABIS EVENTS § 5600. Cannabis Event Organizer License (a)To obtain a temporary cannabis event license, the event organizer must first apply for and obtain a cannabis event organizer license. (b)Cannabis event organizers licensed under this section shall comply with chapter 1 of this division except for sections 5001-5002, 5006-5008, 5010, 5016, 5019, 5025-5029, 5032-5034, and 5042-5044, and 5046-5055. (c)A cannabis event organizer licensee is not authorized or licensed to cultivate, distribute, manufacture, or retail cannabis or cannabis products without first obtaining the appropriate licenses or authorizations to engage in such commercial cannabis activities. (d)A cannabis event organizer shall comply with the records retention provisions of section 5037 of this division. Records shall be kept by the cannabis event organizer in a manner that allows the records to be produced for the Bureau in either hard copy or electronic form, whichever the Bureau requests. Failure to produce records upon the Bureau’s request may result in disciplinary action against the cannabis event organizer license and/or denial of a temporary cannabis event license. (e)Cannabis event organizer applications may be completed online at www.bcc.ca.gov or by delivering a printed copy to the Bureau’s office(s). (f)Applicants who submit their applications online shall first register for a user account as provided by section 5002(b) of this division. (g)An application must be completed by an owner as defined by Business and Professions Code section 26001(al). An application for cannabis event organizer licensure includes the following: (1)The name of the applicant. For applicants who are individuals, the applicant shall provide both the first and last name of the individual. For applicants who are business entities, the applicant shall provide the legal business name of the applicant. (2) If applicable, the business trade name (“DBA”) of the applicant. (3)Payment of an application fee pursuant to section 5014 of this division. (4)Whether the owner is serving or has previously served in the military. Disclosure of military service is voluntary. An applicant who has served as an active duty member of the Armed Forces of the United States and was honorably discharged and who can provide evidence of such honorable discharge shall have his or her application expedited pursuant to Business and Professions Code section 115.4. Bureau of Cannabis Control Regular Regulations Text Page 76 of 136 241 (5)A list of the license types and the license numbers issued from the Bureau and all other state cannabis licensing authorities that the applicant holds, including the date the license was issued and the licensing authority that issued the license. (6)Whether the applicant has been denied a license or has had a license suspended or revoked by the Bureau or any other state cannabis licensing authority. The applicant shall provide the type of license applied for, the name of the licensing authority that denied the application, and the date of denial. (7)The mailing address for the applicant. (8)The telephone number for the applicant. (9)The website address of the applicant’s business, if applicable. (10)The email address for the applicant’s business. (11)Contact information for the applicant’s designated primary contact person including the name, title, phone number, and email address of the individual. (12)The federal employer identification number for the applicant’s business. (13)A description of the business organizational structure of the applicant, such as partnership or corporation. (14)The business-formation documents, which may include, but are not limited to, articles of incorporation, operating agreements, partnership agreements, and fictitious business name statements. The applicant shall also provide all documents filed with the California Secretary of State, which may include, but are not limited to, articles of incorporation, certificates of stock, articles of organization, certificates of limited partnership, and statements of partnership authority. If the commercial cannabis business is held in trust, the applicant shall provide a copy of the trust. (15)A list of every fictitious business name the applicant is operating under including the address where the business is located. (16)An applicant that is a foreign corporation shall include in its application the certificate of qualification issued by the California Secretary of State under Corporations Code section 2105. (17)The applicant shall supply the following financial information: (A)A list of funds belonging to the applicant’s cannabis event organizing business held in savings, checking, or other accounts maintained by a financial institution. The applicant shall provide, for each account, the financial institution’s name, the financial institution’s address, account type, account number, and the amount of money in the account. (B) A list of loans made to the applicant for its use in cannabis event organizing activities. For each loan, the applicant shall provide the amount of the loan, the date of the loan, term(s) of the loan, security provided for the loan, and the name, address, and phone number of the lender. (C) A list of investments made into the applicant’s cannabis event organizing activities. For each investment, the applicant shall provide the amount of the investment, the date of the investment, term(s) of the investment, and the name, address, and phone number of the investor. Bureau of Cannabis Control Regular Regulations Text Page 77 of 136 242 (D)A list of all gifts of any kind given to the applicant for its use in cannabis event organizing activities. For each gift, the applicant shall provide the value of the gift or description of the gift, and the name, address, and phone number of the provider of the gift. (18)A complete list of every individual that has a financial interest in the cannabis event organizing business as defined in section 5004 of this division, who is not an owner as defined in Business and Professions Code section 26001(al). (19)A complete list of every owner of the applicant as defined in Business and Professions Code section 26001(al). Each individual named on this list shall submit the following information: (A)The full name of the owner. (B) The owner’s title within the applicant entity. (C)The owner’s date of birth and place of birth. (D)The owner’s social security number or individual taxpayer identification number. (E)The owner’s mailing address. (F)The owner’s telephone number. This may include a number for the owner’s home, business, or mobile telephone. (G)The owner’s email address. (H)The owner’s current employer. (I)The percentage of the ownership interest held in the applicant entity by the owner. (J)Whether the owner has an ownership or a financial interest as defined in sections 5003 and 5004, respectively, of this division in any other commercial cannabis business licensed under the Act. (K)A copy of the owner’s government-issued identification. Acceptable forms of identification are a document issued by a federal, state, county, or municipal government that includes the name, date of birth, height, gender, and picture of the person, such as a driver license. (L)A detailed description of the owner’s convictions. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Convictions dismissed under Penal Code section 1203.4 or equivalent non-California law must be disclosed. Convictions dismissed under Health and Safety Code section 11361.8 or equivalent non-California law must be disclosed. Juvenile adjudications and traffic infractions under $300 that did not involve alcohol, dangerous drugs, or controlled substances do not need to be included. For each conviction, the owner shall provide the following: (i)The date of conviction. (ii)Dates of incarceration, if applicable. (iii)Dates of probation, if applicable. Bureau of Cannabis Control Regular Regulations Text Page 78 of 136 243 (iv)Dates of parole, if applicable. (v)A detailed description of the offense for which the owner was convicted. (vi)A statement of rehabilitation for each conviction. The statement of rehabilitation is to be written by the owner and may contain evidence that the owner would like the Bureau to consider that demonstrates the owner’s fitness for licensure. Supporting evidence may be attached to the statement of rehabilitation and may include, but is not limited to, a certificate of rehabilitation under Penal Code section 4852.01, and dated letters of reference from employers, instructors, or professional counselors that contain valid contact information for the individual providing the reference. (M) If applicable, a detailed description of any administrative orders or civil judgements for violations of labor standards, any suspension of a commercial cannabis license, revocation of a commercial cannabis license, or sanctions for unlicensed commercial cannabis activity by a licensing authority, local agency, or state agency against the applicant or a business entity in which the applicant was an owner or officer within the three years immediately preceding the date of the application. (N)Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true, and accurate. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the license, or revocation of a license issued. (20)For an applicant with 20 or more employees, the applicant shall attest that the applicant has entered into a labor peace agreement and will abide by the terms of the agreement. The applicant shall submit a copy of the page of the labor peace agreement that contains signatures of the union representative and the applicant. For applicants who have not yet entered into a labor peace agreement, the applicant shall provide a notarized statement indicating the applicant will enter into and abide by the terms of a labor peace agreement as soon as reasonably practicable after licensure. (21) The limited waiver of sovereign immunity required by section 5009 of this division, if applicable. Authority: Sections 115.4 and 26013, Business and Professions Code. Reference: Sections 115.4, 144, 26012, and 26200, Business and Professions Code. § 5601. Temporary Cannabis Event License (a)A temporary cannabis event license authorizes a licensed cannabis event organizer to hold a temporary cannabis event where the onsite sale and consumption of cannabis goods is authorized at the location indicated on the license during the dates indicated on the license. (b)A temporary cannabis event license shall only be issued to a person who holds a cannabis event organizer license issued by the Bureau. (c)Violations of the requirements applicable to temporary cannabis events may result in disciplinary action against the cannabis event organizer license or any other licenses held by a Bureau of Cannabis Control Regular Regulations Text Page 79 of 136 244 licensee participating in the temporary cannabis event and responsible for the violation under Business and Professions Code section 26070.5. (d)A temporary cannabis event license shall only be issued for a single day or up to 4 consecutive days. No temporary cannabis event license will be issued for more than 4 days. (e)An application for a temporary cannabis event license shall be submitted to the Bureau no less than 60 days before the first day of the temporary cannabis event. (f)A temporary cannabis event may only be held on the grounds of a county fair or district agricultural association. Temporary cannabis events are not required to take place on the same dates as the county fairs or district agricultural association events at these locations. (g)A temporary cannabis event license shall not be issued for a premises that is licensed for the sale of alcohol or tobacco. (h)An application for a temporary cannabis event license shall include the following: (1)The name of the applicant. For applicants who are individuals, the applicant shall provide both the first and last name of the individual. For applicants who are business entities, the applicant shall provide the legal business name of the applicant. (2)The license number for each state cannabis license held by the applicant. (3)The address of the location where the temporary cannabis event will be held. (4)The name of the temporary cannabis event. (5)A diagram of the physical layout of the temporary cannabis event. The diagram shall clearly indicate where the temporary cannabis event will be taking place on the location grounds, all entrances and exits that will be used by participants during the event, all cannabis consumption areas, and all retail areas where cannabis goods will be sold. The hours during which cannabis goods will be sold shall be noted on the diagram. The diagram shall also clearly indicate the area where cannabis waste will be stored, all areas where cannabis goods will be stored, and the specific location of each cannabis licensee who will be participating in the event. Each cannabis licensee participating in the event shall be identified with an assigned temporary cannabis event location number. The diagram shall not contain highlighting and the markings on the diagram shall be in black-and-white print. (6)The dates and hours of operation for which the temporary cannabis event license is being sought. A temporary event license is required for any date in which the applicant engages in onsite cannabis sales or allows onsite cannabis consumption. (7)Contact information for the applicant’s designated primary contact person regarding the temporary event license, including the name, title, address, phone number, and email address of the individual. (8)Contact information for a designated contact person(s) who shall be onsite at the event and reachable by telephone at all times that the event is occurring. (9)A cannabis waste management plan in accordance with section 5002(c)(29)(E) of this division. Bureau of Cannabis Control Regular Regulations Text Page 80 of 136 245 (10) Written approval from the local jurisdiction authorizing the applicant to engage in onsite cannabis sales to, and onsite consumption by, persons 21 years of age or older at the temporary cannabis event. (11)A list of all licensees and employees that will be providing onsite sales of cannabis goods at the temporary cannabis event. (12)Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true, and accurate. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the license, or revocation of a license issued. (i) If the list of licensees and employees participating in the temporary cannabis event changes after the application is submitted or after the license is issued, the applicant shall submit an updated list and an updated diagram, as required in subsection (f)(5) of this section, to the Bureau no less than 72 hours before the event. Licensees not on the list submitted to the Bureau shall not participate in the temporary cannabis event. (j)The event organizer shall hire or contract for security personnel to provide security services at the licensed temporary cannabis event. All security personnel hired or contracted for by the licensee shall be at least 21 years of age, licensed by the Bureau of Security and Investigative Services, and comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code. Security personnel shall be present on the licensed premises at all times cannabis goods are available for sale and/or cannabis consumption is allowed on the licensed premises. (k)A cannabis event organizer shall maintain a clearly legible sign, not less than 7” x 11” in size reading, “No Persons Under 21 Allowed” at or near each public entrance to any area where the sale or consumption of cannabis goods is allowed. The lettering of the sign shall be no less than 1 inch in height. (l)All cannabis waste generated at a temporary cannabis event shall be collected and disposed of in accordance with the requirements of sections 5054 and 5055 of this division. The cannabis event organizer may contract or arrange for the collection and disposal of cannabis waste generated during the temporary cannabis event. (m)A cannabis event organizer and all other licensees participating in a temporary cannabis event are required to comply with section 5037 of this division and all other applicable requirements in the Act and this division pertaining to record keeping. Authority: Section 26013, Business and Professions Code. Reference: Section 26012 and 26200, Business and Professions Code. § 5602. Temporary Cannabis Event Sales (a)Only persons age 21 or older may purchase and consume cannabis goods at a temporary cannabis event. Prior to selling cannabis goods to a customer, the licensee making the sale shall confirm, using valid identification as specified in section 5404 of this division, the age and identity of the customer. Bureau of Cannabis Control Regular Regulations Text Page 81 of 136 246 (b)All sales of cannabis goods at a temporary cannabis event must occur in a retail area as designated in the premises diagram pursuant to section 5601(h)(5) of this division. (c)Each sale at a temporary cannabis event shall be performed by a licensed retailer or licensed microbusiness. The cannabis event organizer may also sell cannabis goods at the temporary cannabis event if the organizer separately holds a license authorizing the retail sale of cannabis goods. (1) Licensed retailers or licensed microbusinesses shall only conduct sales activities within their specifically assigned area, identified in the diagram of the physical layout of the temporary cannabis event. (2)Mobile sales activities via wagon, cart, or similar means are prohibited at the temporary cannabis event site. (d) Licensed retailers or licensed microbusinesses must prominently display their temporary cannabis event location number and state license within plain sight of the public. (e)All sales at a temporary cannabis event shall occur on the dates stated on the license and shall occur at the location stated on the license. All onsite sales of cannabis goods must comply with the hours of operation requirements of section 5403 of this division. (f)Sale of alcohol or tobacco shall not be allowed on the licensed temporary cannabis event premises. (g)The cannabis goods sold onsite at a temporary cannabis event shall be transported by a licensed distributor or licensed microbusiness in compliance with the Act and this division. All shipments of cannabis and non-cannabis goods intended for sale at a temporary cannabis event must be checked by the temporary cannabis event organizer staff to prevent prohibited items, such as alcohol and tobacco, from entering the licensed premises. (h)Except small amounts of cannabis goods used for display, all cannabis goods for sale at a temporary cannabis event shall be stored in a secure, locked container that is not accessible to the public. Cannabis goods being stored by a licensee at a temporary cannabis event shall not be left unattended. Licensees may share the secure, locked container; however, each licensee using the container shall be held responsible for any violations of this section and subject to disciplinary action. (i)All cannabis goods at a cannabis event shall comply with all requirements cannabis goods for retail sale within the Act and section 5406 of this division. (j)All cannabis goods at a temporary cannabis event shall comply with all track and trace requirements within the Act and this division. (k)All cannabis goods used for display at a temporary cannabis event shall comply with the requirements of section 5405 of this division. (l)All cannabis goods sold at a temporary cannabis event shall be placed in an exit package pursuant to section 5413 of this division. (m)All customer returns of cannabis goods at a temporary cannabis event shall comply with section 5410 of this division. Bureau of Cannabis Control Regular Regulations Text Page 82 of 136 247 - (n)The daily sales limits under section 5409 of this division apply to all sales made at a temporary cannabis event. (o) A licensed retailer shall only provide free cannabis goods to a person at a temporary cannabis event if the licensed retailer complies with all requirements of section 5411 of this division. (p)The cannabis event organizer shall be responsible for ensuring that all rules and requirements for the onsite sale of cannabis goods are followed. (q)Any compensation paid from a licensed retailer to a cannabis event organizer for participation in a temporary cannabis event shall not be determined based on, or be contingent on, the sale of cannabis goods. Authority: Section 26013, Business and Professions Code. Reference: Section 26070 and 26200, Business and Professions Code. § 5603. Temporary Cannabis Event Consumption (a)Access to the area where cannabis consumption is allowed shall be restricted to persons 21 years of age or older. (b)The event organizer licensee shall ensure that cannabis consumption is not visible from any public place or non-age-restricted area. (c) Consumption of alcohol or tobacco shall not be allowed on the licensed premises. (d)All requirements for onsite cannabis consumption imposed by the relevant local jurisdiction shall be followed and smoking of cannabis goods shall be prohibited in any areas where smoking is prohibited by law. (e)The cannabis event organizer, who holds the temporary cannabis event license, shall be responsible for ensuring that all rules and requirements for the onsite consumption of cannabis goods are followed. (f)A cannabis event organizer and all other licensees participating in a temporary cannabis event are required to follow all applicable requirements in this division pertaining to record keeping and waste management. (hg) Any compensation paid from a licensed retailer to a cannabis event organizer for participation in a temporary cannabis event shall not be determined based on, or tied to, the sale of cannabis goods. Authority: Section 26013, Business and Professions Code. Reference: Section 26200, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 83 of 136 248 Chapter 6. TESTING LABORATORIES Article 1. Chapter Definitions § 5700. Definitions In addition to the definitions in section 5000 of this division, the following definitions apply to this chapter. (a)“Acceptance criteria” means the specified limits placed on the characteristics of an item or method that are used to determine data quality. (b)“Accredited college or university” means a college or university accredited by a regional or national accrediting agency that is an accreditor recognized by the Secretary of the US Department of Education. (c)“Accreditation body” means an impartial non-profit organization that operates in conformance with the International Organization for Standardization (ISO) / International Electrotechnical Commission (IEC) standard 17011 and is a signatory to the International Laboratory Accreditation Cooperation (ILAC) Mutual Recognition Arrangement (MRA) for Testing. (d)“Action level” means the threshold value that provides the criterion for determining whether a sample passes or fails an analytical test. (e)“Analyte” means a chemical, compound, element, bacteria, yeast, fungus, or toxin to be identified or measured. (f)“Analytical batch” means a set of no more than 20 samples that is prepared together for the same analysis and are prepared with laboratory quality control (LQC) samples. (g)“Analytical method” means a technique used qualitatively or quantitatively to determine the composition of a sample or a microbial contamination of a sample. (h)“Analytical sequence” means a group of samples that are analyzed sequentially using the same instrument calibration curve. (i) “Cannabinoid” means a class of diverse chemical compounds derived from a cannabis plant. (j) “CAS number” means the unique numerical identifier assigned to every chemical substance by Chemical Abstracts Service, a division of the American Chemical Society. (k) “CBD” means cannabidiol, CAS number 13956-29-1. (l) “CBDA” means cannabidiolic acid, CAS number 1244-58-2. (m) “CBG” means cannabigerol, CAS number 25654-31-3. (n) “CBN” means cannabinol, CAS number 521-35-7. Bureau of Cannabis Control Regular Regulations Text Page 84 of 136 249 - (o) “Certificate of accreditation” means a document issued by an accreditation body that attests to the laboratory’s competence to carry out specific testing analysis. (p) “Certificate of analysis” (COA) means the report prepared by the laboratory about the analytical testing performed and results obtained by the laboratory. (q) “Certified reference material” means a reference material prepared by a certifying body or a party independent of the laboratory with ISO/IEC 17034 accreditation. (r) “Chain of Custody” (COC) means the chronological documentation that records the sequence of custody, control, transfer, analysis, and disposal of a sample. (s)“Coefficient of Determination” (commonly denoted as “r2”) means a statistical measure that determines how well the regression approximates the actual data points in the calibration curve, with a regression of 1 being a perfect fit. (t) “Continuing calibration verification” (CCV) means a type of quality control sample that is a mid-range calibration standard which checks the continued validity of the initial calibration of the instrument. (u) “Corrective action” means an action taken by the laboratory to resolve, and prevent from recurrence, a problem with the technical operations of the laboratory. (v) “Exclusivity” means the specificity of the test method for validating microbial testing methods. It evaluates the ability of the method to distinguish the target organisms from similar but genetically distinct non-target organisms. (w) “Foreign material” means any filthy, putrid, or decomposed substance including hair, insects, excreta, or related adulterant that may be hazardous or cause illness or injury to the consumer. (x)“Frequency” means the number of items occurring in each category. Frequency may be determined by analytical method or laboratory specific requirements for accuracy, precision of the analysis, or statistical calculation. (y)“Inclusivity” means, related to microbiological method validation, the sensitivity of the test method. It evaluates the ability of the test method to detect a wide range of target organisms by a defined relatedness. (z)“Inhalable” means consumable in gaseous or vapor form through the lungs. (aa) “Initial Calibration Verification” (ICV) means a solution of targeted method analytes of known concentration that is obtained from a source external to the laboratory and different from the source of calibration standards. (bb) “ISO/IEC” means the joint technical committee of the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC). (cc) “ISO/IEC 17025” means the general requirements specified by the ISO/IEC for the competence of testing and calibration laboratories. Bureau of Cannabis Control Regular Regulations Text Page 85 of 136 250 (dd) “ISO/IEC 17034” means the general requirements established by the ISO/IEC for the competence of reference material producers. (ee) “ISO/IEC 17043” means the general requirements established by the ISO/IEC for proficiency testing. (ff) “Laboratory” means “testing laboratory” as defined at Business and Professions Code section 26001(at). (gg) “Laboratory Control Sample” (LCS) means a blank matrix to which known concentrations of the target method analytes are added. The LCS is analyzed in the same manner as the representative sample. (hh) “Laboratory replicate sample” means a sub-sample taken of the representative sample used for laboratory quality control purposes to demonstrate reproducibility. It is prepared and analyzed in the identical manner as the representative sample. The results from replicate analyses are used to evaluate analytical precision. (ii) “Laboratory employee” means any person directly employed by the laboratory for wages, salary, barter, or trade by the laboratory and who is not employed by any other licensee under the Act except for another testing laboratory. Laboratory employee does not mean independent contractor, third party entity or any other entity acting on behalf of the laboratory. (jj) “Laboratory quality assurance” means the set of operating principles that enable laboratories to produce defensible data of known accuracy and precision and includes employee training, equipment preventative maintenance procedures, calibration procedures, and quality control testing, among other things. (kk) “Limit of detection” (LOD) means the lowest quantity of a substance or analyte that can be distinguished from the absence of that substance within a stated confidence limit. (ll) “Limit of quantitation” (LOQ) means the minimum concentration of an analyte in a specific matrix that can be reliably quantified while also meeting predefined goals for bias and imprecision. (mm) “Matrix” means the substances that are present in a sample except for the analyte(s) of interest. (nn) “Matrix spike sample” means a sample prepared by adding a known quantity of the target analyte to a sample matrix or to a matrix that is as closely representative of the matrix being analyzed as possible. (oo) “Method blank” means an analyte free matrix to which all reagents are added in the same volumes or proportions as used in the sample preparation and is processed in exactly the same manner as the samples. (pp) “Moisture content” means the percentage of water in a sample, by weight. (qq) “Non-target organism” means an organism that the test method or analytical procedure is not testing for and can be used in evaluating the specificity of a test method. Bureau of Cannabis Control Regular Regulations Text Page 86 of 136 251 (rr) “Percent recovery” means the percentage of a measured concentration relative to the added (spiked) concentration in a reference material or matrix spike sample. A laboratory shall calculate the percent recovery by dividing the sample result by the expected result then multiplying the quotient by 100. (ss) “Practical experience” means experience performing scientific analytical tests in a laboratory setting using equipment, instruments, kits, and materials routinely found in a laboratory. Practical experience includes experience in any type of laboratory setting and is not limited to cannabis-specific laboratories. (tt) “Proficiency test” means an evaluation of a laboratory’s performance against pre-established criteria by means of interlaboratory comparisons of test measurements. (uu) “Proficiency test sample” means a sample that is prepared by a party independent of the testing laboratory with the ISO/IEC 17043 accreditation, where the concentration and identity of an analyte that is known to the independent party, but is unknown to the testing laboratory and testing laboratory employees. (vv) “Quality control” means the set of measures implemented within an analytical procedure to ensure that the measurement system is operating in a state of statistical control for which errors have been reduced to acceptable levels. (ww) “Quality control sample” means a sample that is produced and used by a laboratory for the purpose of assuring the quality of the data and results. Quality control samples include blank samples, matrix spike samples, laboratory control samples, replicate samples, and reference material samples. (xx) “Reagent” means a compound or mixture added to a system to cause a chemical reaction or test if a reaction occurs. A reagent may be used to tell whether a specific chemical substance is present by causing a reaction to occur with the chemical substance. (yy) “Reference material” means material containing a known concentration of an analyte of interest that is in solution or in a homogeneous matrix. (zz) “Reference method” means the method by which the performance of an alternate method is measured or evaluated. (aaa) “Relative percent difference” means the comparative statistic that is used to calculate precision or random error. RPD is calculated using the following equation: RPD = │ (representative sample measurement – replicate sample measurement) │ / ([representative sample measurement + replicate sample measurement] / 2) × 100% (bbb) “Relative standard deviation” means the standard deviation expressed as a percentage of the means recovery. RSD is calculated using the following equation: RSD = (s / x) × 100%; where s = standard deviation and x = mean (ccc) “Representative” means a small quantity of the batch whose characteristics represent, as accurately as possible, the entire batch, thus allowing the results to be generalized. Bureau of Cannabis Control Regular Regulations Text Page 87 of 136 252 (ddd) “Representative sample” means a sample that is comprised of several increments of either cannabis goods that are collected from a batch for testing. (eee) “Requester” means the person who submits a request to the laboratory for testing of cannabis goods from an entity licensed under this division. (fff) “Reserve sample” means any portion of a representative sample that was not used in the testing process. (ggg) “Sample” means a representative part of, or a single item from, a batch which is comprised of several sample increments. (hhh) “Sample increment” means a portion of a batch that, together with other increments, makes up the sample. (iii) “Sampler” means the laboratory employee responsible for obtaining samples of cannabis goods from a licensed distributor or licensed microbusiness. (jjj) “Sanitize” means to sterilize, disinfect, or make hygienic. (kkk) “Scope of accreditation” means the tests or types of tests performed, materials or products tested, and the methods used for testing cannabis or cannabis products for which the accreditation has been granted. (lll) “Standard operating procedure” (SOP) means a written document that provides detailed instructions for the performance of all aspects of an analysis, operation, or action. (mmm) “Tamper-evident” means a one-time-use security tape or seal that is affixed to the opening of a package, allowing a person to recognize whether the package has been opened. (nnn) “Target organism” means an organism that is being tested for in an analytical procedure or test method. (ooo) “THC” and “delta-9 THC” means tetrahydrocannabinol, CAS number 1972-08-3. (ppp) “THCA” means tetrahydrocannabinolic acid, CAS number 23978-85-0. (qqq) “Validation” means the confirmation by examination and objective evidence that the requirements for a specific intended use or analytical method are fulfilled. (rrr) “Water activity” means the measure of the quantity of water in a product that is available and therefore capable of supporting bacteria, yeasts, and fungi and which is reported in units Aw. Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and 26100, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 88 of 136 253 Article 2. Laboratory License § 5701. General Laboratory License Requirements (a)A licensed laboratory shall maintain ISO/IEC 17025 accreditation for the testing of the following: (1)Cannabinoids; (2) Heavy metals; (3)Microbial impurities; (4)Mycotoxins; (5)Residual pesticides; (6)Residual solvents and processing chemicals; and (7) If tested, terpenoids. (b) Each testing laboratory licensed premises shall have ISO/IEC 17025 accreditation. (c) A licensed laboratory shall retain, and make available to the Bureau upon request, all records associated with the licensee’s ISO/IEC 17025 certificate of accreditation. Authority: Section 26013, Business and Professions Code. Reference: Section 26100, Business and Professions Code § 5702. Laboratory License Application In addition to the information required in section 5002 of this division, an application for a testing laboratory license includes the following: (a)A valid certificate of accreditation, issued by an accreditation body, that attests to the laboratory’s competence to perform testing, including all the required analytes for the following test methods: (1)Cannabinoids; (2)Heavy metals; (3)Microbial impurities; (4) Mycotoxins; (5)Residual pesticides; (6)Residual solvents and processing chemicals; and (7) If tested, terpenoids. Bureau of Cannabis Control Regular Regulations Text Page 89 of 136 254 (b)Standard operating procedures for the following testing methods: (1)Cannabinoids; (2)Heavy metals; (3)Microbial impurities; (4)Moisture content and water activity; (5)Mycotoxins; (6)Residual pesticides; (7)Residual solvents and processing chemicals; and (8) If tested, terpenoids. (c)Method validation report for the following testing methods: (1)Cannabinoids; (2) Foreign material; (3)Heavy metals; (4)Microbial impurities; (5)Moisture content and water activity; (6)Mycotoxins; (7)Residual pesticides; (8)Residual solvents and processing chemicals; and (9) If tested, terpenoids. (d) Standard operating procedures for the sampling of cannabis goods. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26050, 26051.5, 26055, 26102 and 26104, Business and Professions Code § 5703. Provisional Testing Laboratory License (a)A laboratory may apply for a provisional license prior to receiving ISO/IEC 17025 accreditation provided that the applicant meets all other licensure requirements for a testing laboratory and submits to the Bureau an application in compliance with section 5002 of this division and an attestation that the applicant has or intends to seek ISO/IEC 17025 accreditation for all testing methods required by this division. (b)A provisional testing laboratory license shall be valid for 12 months. The annual license fee for a provisional license shall be determined pursuant to section 5014 of this division. Bureau of Cannabis Control Regular Regulations Text Page 90 of 136 255 (c)To timely renew a provisional license, a completed license renewal form and the annual renewal license fee pursuant to section 5014 of this division shall be received by the Bureau from the licensee no earlier than 60 calendar days before the expiration of the license and no later than 5:00 p.m. Pacific Time on the last business day before the expiration of the license if the renewal form is submitted to the Bureau at its office(s), or no later than 11:59 p.m. on the last business day before the expiration of the license if the renewal form is submitted to the Bureau through its electronic licensing system. Failure to receive a notice for license renewal does not relieve a licensee of the obligation to renew a provisional license as required. (d) In the event the license is not renewed prior to the expiration date, the licensee must not test any commercial cannabis goods until the license is renewed. (e) A licensee may submit a license renewal form up to 30 calendar days after the license expires. Any late renewal form will be subject to a late fee equal to 50 percent of the applicable licensing fees required by subsection (c) of this section. (f) The license renewal application shall contain the following: (1)The name of the licensee. For licensees who are individuals, the applicant shall provide both the first and last name of the individual. For licensees who are business entities, the licensee shall provide the legal business name of the applicant; (2)The license number and expiration date; (3)The licensee’s address of record and licensed premises address; and (4)An attestation that all information provided to the Bureau in the original application under section 5002 of this division or subsequent notification under section 5023 of this division is accurate and current. (g)The Bureau may renew a provisional license for an initial renewal period of 12 months. (h)After one renewal, the Bureau may renew the provisional license for additional 12-month periods if the licensee has submitted an application for the ISO/IEC 17025 accreditation. In addition to the information required for a renewal form pursuant to subsection (f) of this section, any renewal request pursuant to this section shall also include an attestation that the licensee’s application for each ISO/IEC 17025 is pending with the accrediting body, the name of the accrediting body, and the date the application was submitted to the accrediting body. (i)The licensee shall notify the Bureau if the application for each ISO/IEC 17025 accreditation is granted or denied within 5 business days of receiving the decision from the accrediting body. If the accrediting body grants or denies the licensee’s application for any ISO/IEC 17025 accreditation before the expiration of the provisional license, the Bureau may terminate the provisional license at that time. (j)The Bureau may revoke a provisional license at any time. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26031, and 26050, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 91 of 136 256 Article 3. Sampling Cannabis and Cannabis Products § 5704. Sampling Standard Operating Procedures (a)The laboratory shall develop and implement a sampling standard operating procedure (SOP) that describes the laboratory’s method for obtaining representative samples of cannabis goods. The laboratory shall use and submit to the Bureau Sampling – Standard Operating Procedures, Form BCC-LIC -021 (New 7/18), which is incorporated herein by reference. (b)The laboratory shall retain a copy of the sampling SOP on the licensed laboratory premises and ensure that the sampling SOP is accessible to the sampler during sampling. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26102, 26104 and 26110, Business and Professions Code. § 5705. General Sampling Requirements (a)The laboratory that obtains a representative sample from a licensed distributor or licensed microbusiness shall perform all the required testing at one licensed laboratory premises. (b)The laboratory may obtain and analyze samples only from batches in final form as required by Business and Professions Code section 26100. (c) The laboratory sampler shall collect a representative sample following the procedures specified in the laboratory’s sampling standard operating procedure(s). (d)The laboratory shall collect a representative sample from each batch. (e)The laboratory shall ensure that the sample is transported and subsequently stored at the laboratory in a manner that prevents degradation, contamination, commingling, and tampering. If the cannabis good specifies on the label how the cannabis good shall be stored, the laboratory shall store the sample as indicated on the label. (f) The laboratory shall complete a chain of custody form for each sample that the laboratory collects and analyzes. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5706. Chain of Custody (COC) (a)The laboratory shall develop and implement a COC protocol to ensure accurate documentation is recorded for the transport, handling, storage, and destruction of samples. (b)The COC protocol shall require the use of a COC form. The sampler shall use a COC to record the following information for each sampled batch: (1) Laboratory’s name, physical address, and license number; (2) Date and time sampling started and ended; Bureau of Cannabis Control Regular Regulations Text Page 92 of 136 257 (3) Licensed distributor or licensed microbusiness’ name, physical address, and license number; (4) Licensed cultivator’s, licensed manufacturer’s, or licensed microbusiness’ name, physical address, and license number; (5) Batch number of the batch from which the representative sample was obtained and assigned unique sample identifier; (6) Sample matrix; (7) Total batch size, by weight, or unit count; (8) Total weight, or unit count of the representative sample; (9) Sampling conditions or problems encountered during the sampling process, if any. (10)Printed name and signature of the licensed distributor or licensed microbusiness’ employee; and (11)Printed name and signature of the sampler; (c)Each time the sample changes custody between licensees, is transported, or is destroyed, the date, time, and the names and signatures of persons involved in these activities shall be recorded on the COC form. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26102, 26104 and 26110, Business and Professions Code. § 5707. Harvest Batch Sampling (a)The sampler shall obtain a representative sample from each prepacked or unpacked harvest batch. The representative sample must weigh 0.35% of the total harvest batch weight. (b)A sampler may collect greater than 0.35% of a prepacked or unpacked harvest batch if necessary to perform the required testing or to ensure that the samples obtained are representative. (c)The prepacked or unpacked harvest batch from which a sample is obtained shall weigh no more than 50.0 pounds. Laboratory analyses of a sample collected from a harvest batch weighing more than 50.0 pounds shall be deemed invalid and the harvest batch from which the sample was obtained may not be released for retail sale. (d)When the sampler obtains a representative sample from an unpacked harvest batch, the sampler shall do all the following: (1)Collect the number of increments relative to the unpacked harvest batch size as listed in the following table; (2) Obtain increments from random and varying locations of the unpacked harvest batch, both vertically and horizontally. To the extent practicable, the increments obtained from an unpacked harvest batch shall be of equal weight; and Bureau of Cannabis Control Regular Regulations Text Page 93 of 136 258 (3)To the extent practicable, collect an equal number of increments from each container if the unpacked harvest batch is stored in multiple containers. Unpacked Harvest Batch Size (pounds) Number of Increments (per sample) ≤ 10.0 8 10.1 – 20.0 16 20.1 – 30.0 23 30.1 – 40.0 29 40.1 – 50.0 34 Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5708. Cannabis Product Batch and Pre-Roll Sampling (a)The sampler shall obtain a representative sample from each cannabis product batch or pre-roll batch. (b)The sampler may collect a greater number of increments if necessary to perform the required testing or to ensure that the samples obtained are representative. (c)The cannabis product batch or pre-roll batch from which a representative sample is obtained shall contain no more than 150,000 units. Laboratory analyses of a sample collected from a cannabis product batch containing more than 150,000 units shall be deemed invalid and the cannabis product batch or pre-roll batch from which the representative sample was obtained may not be released for retail sale. (d)The sampler shall obtain a representative sample of cannabis product or pre-roll batch by collecting, at minimum, the number of increments relative to the batch size as listed in the following table. Each increment consists of 1 packaged unit. Cannabis Product or Pre-roll Batch Size (units) Number of Increments (per sample) ≤ 50 2 51 – 150 3 151 – 500 5 501 – 1,200 8 1,201 – 3,200 13 3,201 – 10,000 20 10,001 – 35,000 32 35,001 – 150,000 50 Bureau of Cannabis Control Regular Regulations Text Page 94 of 136 259 Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5709. Laboratory Transportation of Cannabis Goods Samples (a)The following requirements apply when a licensed testing laboratory transports cannabis goods samples: (1)Cannabis goods shall only be transported inside of a vehicle or trailer and shall not be visible or identifiable from outside of the vehicle or trailer. For purposes of this section, the inside of the vehicle includes the trunk. (2)The laboratory shall ensure cannabis goods samples are stored in a locked box, a locked container, or a locked cage that is secured to the inside of the vehicle or trailer during transport. (3)While left unattended, vehicles, and trailers shall be locked and secured. (4)The laboratory shall not leave a vehicle or trailer containing cannabis goods samples unattended in a residential area or parked overnight in a residential area. (5)The laboratory shall ensure that any vehicle or trailer transporting cannabis goods samples has a vehicle alarm system. (6)The laboratory shall ensure that packages or containers holding cannabis goods samples are neither tampered with, nor opened during transport. (7)The laboratory transporting cannabis goods samples shall only travel between licensees for whom the laboratory is conducting compliance testing or quality assurance testing for, and the laboratory’s licensed premises when engaged in the transportation of cannabis goods. A laboratory shall not deviate from the travel requirements described in this section, except for necessary rest, fuel, or vehicle repair stops. (8)The laboratory may transport multiple cannabis goods samples obtained from multiple licensees at once. (9)Vehicles or trailers transporting cannabis goods samples are subject to inspection by the Bureau at any licensed premises or during transport at any time. (10)No person under the age of 21 years old shall be in a vehicle or trailer transporting cannabis goods samples. (11)Only an employee of the laboratory, or security personnel who meets the requirement of section 5045 of this division shall be in a vehicle while transporting cannabis goods samples. (b)The laboratory shall provide the following required transport vehicle information to the Bureau: Bureau of Cannabis Control Regular Regulations Text Page 95 of 136 260 -- (1) Proof that the laboratory owns or holds or a valid lease for each vehicle used to transport cannabis goods samples; (2)The year, make, model, license plate number, and numerical Vehicle Identification Number (VIN) for each vehicle or trailer used to transport cannabis goods samples; and (3)Proof of insurance for each vehicle used to transport cannabis goods samples. (c)The laboratory shall provide the Bureau with the information required by this section in writing for any new vehicle or trailer that will be used to transport cannabis goods samples prior to using the vehicle or trailer. (d)The laboratory shall provide the Bureau with any changes to the information required by this section in writing within 30 calendar days. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26102, 26104 and 26110, Business and Professions Code. § 5710. Laboratory Receipt of Samples Obtained from a Distributor or Microbusiness (a)The laboratory may accept and analyze a sample from a licensed distributor or licensed microbusiness for the required testing under section 5714 of this division only if there is an accompanying COC form for the sample. (b)The laboratory employee who receives the sample shall date, print, and sign their name on the accompanying sample COC. (b) (c) The laboratory shall not analyze a sample obtained from a licensed distributor or licensed microbusiness, and the batch from which the sample was obtained may not be released for retail sale, if the any of the following occur: (1)The sample is received at the laboratory without the requisite COC form; (2)The tamper-evident material is broken prior to the sample being received at the laboratory; or (3)There is evidence of sample commingling, contamination, degradation, or a related occurrence rendering the sample unusable for analytical testing when the sample is received at the laboratory. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. Article 4. Standard Operating Procedures § 5711. Laboratory Analyses Standard Operating Procedures The laboratory shall develop, implement, and maintain written standard operating procedures (SOP) for sample preparation and each required test method. The laboratory shall use and submit to the Bureau the following forms which are incorporated by reference: Bureau of Cannabis Control Regular Regulations Text Page 96 of 136 261 (a) Sample Preparation – Standard Operating Procedures, Form BCC-LIC -022 (New 7/18), which is incorporated herein by reference; and (b) Test Methods – Standard Operating Procedures, Form BCC-LIC-023 (New 7/18), which is incorporated herein by reference. (c)The laboratory shall keep each SOP at the licensed laboratory premises and ensure that each SOP is accessible to laboratory employees during operating hours. (d)The laboratory shall make each SOP available for inspection by the Bureau upon request, as well as any other SOPs associated with the licensee’s ISO/IEC 17025 certificate of accreditation. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26100, 26102, 26104 and 26110, Business and Professions Code § 5712. Test Methods (a)The laboratory shall develop, implement, and validate test methods for the analyses of samples as required under this division. (b)To the extent practicable, the laboratory test methods shall comport with the following guidelines: (1) US Food and Drug Administration’s Bacterial Analytical Manual, 2016; (2)AOAC International’s Official Methods of Analysis for Contaminant Testing of AOAC International, 20th Edition, 2016; and (3)United States Pharmacopeia and the National Formulary’s Methods of Analysis for Contaminant Testing, 2016. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5713. Validation of Test Methods (a)The laboratory may use a nonstandard, amplified, or modified test method or a method that is designed or developed by the laboratory to validate the methods for analyses of samples. (b)The laboratory shall follow the guidelines set forth in the US Food and Drug Administration’s Guidelines for the Validation of Analytical Methods for the Detection of Microbial Pathogens in Foods and Feeds, 2nd Edition, April 2015, incorporated herein by reference, to validate test methods for the microbial analysis of samples. (1)The laboratory shall include and address the criteria listed in the following table when validating test methods for microbial analyses of samples. Bureau of Cannabis Control Regular Regulations Text Page 97 of 136 262 Criteria Requirement Number of target organisms; inclusivity 5 Number of non-target organisms; exclusivity 5 Number of analyte levels per matrix: Qualitative methods 3 levels: high and low inoculum levels and 1 uninoculated level Number of analyte levels per matrix: Quantitative methods 4 levels: low, medium and high inoculum levels and 1 uninoculated level Replicates per food at each level tested 2 or more replicates per level (c)The laboratory shall follow the guidelines set forth in the US Food and Drug Administration’s Guidelines for the Validation of Chemical Methods for the FDA FVM Program, 2nd Edition, April 2015, incorporated herein by reference, to validate test methods for chemical analysis of samples. (1)The laboratory shall include and address the following criteria to validate test methods for chemical analyses of samples: (A)Accuracy; (B)Precision; (C) Linearity and range; (i)The Coefficient of Determination (r2) for all calibration curves shall be greater than or equal to 0.99. (ii) LOQ for analytes tested shall be within the linear range of the calibration curve. (D)Calibration standard; (i) For calibration curves, there shall be a minimum of five calibration standards, not including zero; and (ii)Each calibration curve must include an Initial Calibration Verification (ICV). (E)Sensitivity and selectivity; (F) Limit of detection and limit of quantitation; (G)Recovery; (H)Reproducibility; and Bureau of Cannabis Control Regular Regulations Text Page 98 of 136 263 (I) Robustness. (2) The laboratory shall use certified reference materials, to validate the following chemical analyses. The test method used for analysis is valid if the percent recovery of the certified reference material is between 80% to 120% for all required analytes. (A)Cannabinoids, if available; (B) Heavy metals; (C)Microbial impurities; (D)Mycotoxins; (E)Residual pesticides; (F)Residual solvents and processing chemicals; and (G)Terpenoids, if available. (d)The laboratory shall generate a validation report for each test method. Each validation report shall include the following information: (1) Instrument calibration data, if any; (2) Raw data, including instrument raw data, for each test method, if any; (3) Cannabis reference materials or certified reference material results; (4)Data and calculations pertaining to LOD and LOQ determinations, if any; (5) LQC report, as described in this chapter, for the validation of each method; and (6)Worksheets, forms, pictures, or copies of laboratory notebook pages and any other documentation necessary to meet the requirements described in subsections (b) and (c) of this section. (7)The supervisory or management laboratory employee shall review, approve, sign, and date the validation report for each test method. (8)Upon new test methods or altered test methods being used in the laboratory, the new validation report shall be submitted to the Bureau within 5 business days. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26100, 26104 and 26110, Business and Professions Code. Article 5. Laboratory Testing and Reporting § 5714. Required Testing (a)The laboratory shall test each representative sample for the following: (1)Cannabinoids; Bureau of Cannabis Control Regular Regulations Text Page 99 of 136 264 (2)Foreign material; (3)Heavy metals; (4)Microbial impurities; (5)Mycotoxins; (6)Moisture content and water activity; (7)Residual pesticides; (8)Residual solvents and processing chemicals; and (9)If applicable, terpenoids. (b)The laboratory shall report the results of each analysis performed by the laboratory on the certificate of analysis. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5715. Phase-In of Required Laboratory Testing (a)Cannabis goods shall not be sold or transferred to a licensed retailer or licensed microbusiness, or released for retail sale, unless a representative sample of the cannabis goods has undergone and passed all testing as required by this section. (b)All cannabis harvested on or after January 1, 2018, and all cannabis products manufactured on or after January 1, 2018, shall be tested for the following analytes, if applicable: (1)Cannabinoids as required in section 5724 of this division; (2)Moisture content as required in section 5717 of this division; (3)Category II Residual Solvents and Processing Chemicals as required in section 5718 of this division; (4)Category I Residual Pesticides as required in section 5719 of this division; and (5)Microbial Impurities as required in section 5720 of this division. (c) In addition to the requirements of subsection (b) of this section, all cannabis harvested on or after July 1, 2018, and all cannabis products manufactured on or after July 1, 2018, shall be tested for the following analytes, if applicable: (1)Category I Residual Solvents and Processing Chemicals as required in section 5718 of this division; (2)Category II Residual Pesticides as required in section 5719 of this division; and (3)Foreign Material as required in section 5722 of this division. Bureau of Cannabis Control Regular Regulations Text Page 100 of 136 265 (d) In addition to the requirements in subsections (b) and (c) of this section, all cannabis harvested on or after December 31, 2018, and all cannabis products manufactured on or after December 31, 2018, shall be tested for the following analytes, if applicable: (1)Terpenoids as required in section 5725 of this division; (2)Mycotoxins as required in section 5721 of this division; (3)Heavy Metals as required in section 5723 of this division; and (4)Water Activity as required in section 5717 of this division. (e) Licensees may have a sample of cannabis goods tested for analytes that are not yet required to be tested. However, if the sample fails any additional test(s) not required pursuant to this section on the date of testing, the batch from which the sample was collected fails testing and shall not be released for retail sale. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100 and 26104, Business and Professions Code. § 5716. [reserved] § 5717. Moisture Content and Water Activity Testing (a)The laboratory shall analyze at minimum 0.5 grams of the representative sample of dried flower to determine the level of water activity and the percentage of moisture content. (1)The dried flower sample, including pre-rolls, shall be deemed to have passed water activity testing if the water activity does not exceed 0.65 Aw. The laboratory shall report the result of the water activity test on the certificate of analysis (COA) and indicate “pass” or “fail” on the COA. (2) The laboratory shall report the result of the moisture content test on the COA as a percentage. (b) The laboratory shall analyze at least 0.5 grams of the representative sample of solid edible cannabis products to determine the level of water activity. A solid edible cannabis product shall be deemed to have passed water activity testing if the water activity does not exceed 0.85 Aw. The laboratory shall report the result of the water activity test on the COA and indicate “pass” or “fail” on the COA. (c) If the sample fails water activity testing, the batch from which the sample was collected fails water activity testing and shall not be released for retail sale. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5718. Residual Solvents and Processing Chemicals Testing (a)The laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis product or pre-rolls to determine whether residual solvents or processing chemicals are present. Bureau of Cannabis Control Regular Regulations Text Page 101 of 136 266 (b)The laboratory shall report the result of the residual solvents and processing chemicals testing in unit micrograms per gram (µg/g) on the COA and indicate “pass” or “fail” on the COA. (c)The laboratory shall establish a limit of quantification (LOQ) of 1.0 µg/g or lower for all Category I Residual Solvents or Processing Chemicals. (d)The sample shall be deemed to have passed the residual solvents and processing chemicals testing if both of the following conditions are met: (1)The presence of any residual solvent or processing chemical listed in the following tables in Category I is not detected, and (2)The presence of any residual solvent or processing chemical listed in the following tables in Category II does not exceed the indicated action levels. (A)Notwithstanding subsection (d)(2) of this section the limit for ethanol does not apply to cannabis goods that are intended to be tinctures and meet the definition of tincture, as defined by the State Department of Public Health in regulation. Category I Residual Solvent or Processing Chemical CAS No. 1,2-Dichloroethane 107-06-2 Benzene 71-43-2 Chloroform 67-66-3 Ethylene oxide 75-21-8 Methylene chloride 75-09-2 Trichloroethylene 79-01-6 Category II Residual Solvent or Processing Chemical CAS No. Cannabis Product or Pre-roll Action Level (µg/g) Acetone 67-64-1 1000 Acetonitrile 75-05-8 80 Butane 106-97-8 1000 Ethanol 64-17-5 1000 Bureau of Cannabis Control Regular Regulations Text Page 102 of 136 267 Ethyl acetate 141-78-6 1000 Ethyl ether 60-29-7 1000 Heptane 142-82-5 1000 Hexane 110-54-3 60 Isopropyl alcohol 67-63-0 1000 Methanol 67-56-1 600 Pentane 109-66-0 1000 Propane 74-98-6 1000 Toluene 108-88-3 180 Total xylenes (ortho-, meta-, para-) 1330-20-7 430 (e)If the sample fails residual solvents and processing chemicals testing, the batch from which the sample was collected fails residual solvents and processing chemicals testing and shall not be released for retail sale. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5719. Residual Pesticides Testing (a)The laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis goods to determine whether residual pesticides are present. (b)The laboratory shall report whether any Category I Residual Pesticides are detected above the limit of detection (LOD) and shall report the result of the Category II Residual Pesticides testing in unit micrograms per gram (µg/g) on the COA. The laboratory shall indicate “pass” or “fail” on the COA. (c)The laboratory shall establish a limit of quantification (LOQ) of 0.10 µg/g or lower for all Category I Residual Pesticides. (d)The sample shall be deemed to have passed the residual pesticides testing if both of the following conditions are met: (1)The presence of any residual pesticide listed in the following tables in Category I are not detected, and (2)The presence of any residual pesticide listed in the following tables in Category II does not exceed the indicated action levels. Bureau of Cannabis Control Regular Regulations Text Page 103 of 136 268 Category I Residual Pesticide CAS No. Aldicarb 116-06-3 Carbofuran 1563-66-2 Chlordane 57-74-9 Chlorfenapyr 122453-73-0 Chlorpyrifos 2921-88-2 Coumaphos 56-72-4 Daminozide 1596-84-5 DDVP (Dichlorvos) 62-73-7 Dimethoate 60-51-5 Ethoprop(hos) 13194-48-4 Etofenprox 80844-07-1 Fenoxycarb 72490-01-8 Fipronil 120068-37-3 Imazalil 35554-44-0 Methiocarb 2032-65-7 Methyl parathion 298-00-0 Mevinphos 7786-34-7 Paclobutrazol 76738-62-0 Propoxur 114-26-1 Spiroxamine 118134-30-8 Thiacloprid 111988-49-9 Bureau of Cannabis Control Regular Regulations Text Page 104 of 136 269 Category II Residual Pesticide CAS No. Action Level (µg/g) Inhalable Cannabis Goods Other Cannabis Goods Abamectin 71751-41-2 0.1 0.3 Acephate 30560-19-1 0.1 5 Acequinocyl 57960-19-7 0.1 4 Acetamiprid 135410-20-7 0.1 5 Azoxystrobin 131860-33-8 0.1 40 Bifenazate 149877-41-8 0.1 5 Bifenthrin 82657-04-3 3 0.5 Boscalid 188425-85-6 0.1 10 Captan 133-06-2 0.7 5 Carbaryl 63-25-2 0.5 0.5 Chlorantraniliprole 500008-45-7 10 40 Clofentezine 74115-24-5 0.1 0.5 Cyfluthrin 68359-37-5 2 1 Cypermethrin 52315-07-8 1 1 Diazinon 333-41-5 0.1 0.2 Dimethomorph 110488-70-5 2 20 Etoxazole 153233-91-1 0.1 1.5 Fenhexamid 126833-17-8 0.1 10 Fenpyroximate 111812-58-9 0.1 2 Flonicamid 158062-67-0 0.1 2 Fludioxonil 131341-86-1 0.1 30 Hexythiazox 78587-05-0 0.1 2 Imidacloprid 138261-41-3 5 3 Kresoxim-methyl 143390-89-0 0.1 1 Bureau of Cannabis Control Regular Regulations Text Page 105 of 136 270 Category II Residual Pesticide CAS No. Action Level (µg/g) Inhalable Cannabis Goods Other Cannabis Goods Malathion 121-75-5 0.5 5 Metalaxyl 57837-19-1 2 15 Methomyl 16752-77-5 1 0.1 Myclobutanil 88671-89-0 0.1 9 Naled 300-76-5 0.1 0.5 Oxamyl 23135-22-0 0.5 0.2 Pentachloronitrobenzene 82-68-8 0.1 0.2 Permethrin 52645-53-1 0.5 20 Phosmet 732-11-6 0.1 0.2 Piperonylbutoxide 51-03-6 3 8 Prallethrin 23031-36-9 0.1 0.4 Propiconazole 60207-90-1 0.1 20 Pyrethrins 8003-34-7 0.5 1 Pyridaben 96489-71-3 0.1 3 Spinetoram 187166-15-0, 187166-40-1 0.1 3 Spinosad 131929-60-7, 131929-63-0 0.1 3 Spiromesifen 283594-90-1 0.1 12 Spirotetramat 203313-25-1 0.1 13 Tebuconazole 107534-96-3 0.1 2 Thiamethoxam 153719-23-4 5 4.5 Trifloxystrobin 141517-21-7 0.1 30 (e)If the sample fails residual pesticides testing, the batch from which the sample was collected fails pesticides testing and shall not be released for retail sale. Bureau of Cannabis Control Regular Regulations Text Page 106 of 136 271 - Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5720. Microbial Impurities Testing (a)The laboratory shall analyze a at minimum 1.0 grams of the representative sample of cannabis goods to determine whether microbial impurities are present. (b)The laboratory shall report the result of the microbial impurities testing by indicating “pass” or “fail” on the COA. (c) The sample of inhalable cannabis goods shall be deemed to have passed the microbial impurities testing if all of the following conditions are met: (1) Shiga toxin–producing Escherichia coli is not detected in 1 gram; (2) Salmonella spp. is not detected in 1 gram; and (3)Pathogenic Aspergillus species A. fumigatus, A. flavus, A. niger, and A. terreus are not detected in 1 gram. (d) The sample of non-inhalable cannabis goods shall be deemed to have passed the microbial impurities testing if both the following conditions are met: (1)Shiga toxin–producing Escherichia coli is not detected in 1 gram, and (2) Salmonella spp. is not detected in 1 gram. (e) If the sample fails microbial impurities testing, the batch from which the sample was collected fails microbial impurities testing and shall not be released for retail sale. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5721. Mycotoxin Testing (a)The laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis goods to determine whether mycotoxins are present. (b)The laboratory shall report the result of the mycotoxins testing in unit micrograms per kilograms (µg/kg) on the COA and indicate “pass” or “fail” on the COA. (c) The sample shall be deemed to have passed mycotoxin testing if both the following conditions are met: (1)Total of aflatoxin B1, B2, G1, and G2 does not exceed 20 µg/kg of substance, and (2)Ochratoxin A does not exceed 20 µg/kg of substance. (d) If the sample fails mycotoxin testing, the batch from which the sample was collected fails mycotoxin testing and shall not be released for retail sale. Bureau of Cannabis Control Regular Regulations Text Page 107 of 136 272 Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5722. Foreign Material Testing (a)The laboratory shall analyze the representative sample of cannabis goods to determine whether foreign material is present. (b) The laboratory shall report the result of the foreign material test by indicating “pass” or “fail” on the COA. (c)The laboratory shall perform foreign material testing on the total representative sample prior to sample homogenization. (d)When the laboratory performs foreign material testing, at minimum, the laboratory shall do all of the following: (1)Examine both the exterior and interior of the dried flower sample, and (2)Examine the exterior of the cannabis product sample. (e) The sample shall be deemed to have passed the foreign material testing if the presence of foreign material does not exceed: (1)1/4 of the total sample area covered by sand, soil, cinders, or dirt; (2)1/4 of the total sample area covered by mold; (3)1 insect fragment, 1 hair, or 1 count mammalian excreta per 3.0 grams; or (4)1/4 of the total sample area covered by an imbedded foreign material. (f) If the sample fails foreign material testing, the batch from which the sample was collected fails foreign material testing and shall not be released for retail sale. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5723. Heavy Metals Testing (a)The laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis goods to determine whether heavy metals are present. (b)The laboratory shall report the result of the heavy metals test in micrograms per gram (µg/g) on the COA and indicate “pass” or “fail” on the COA. (c) The sample shall be deemed to have passed the heavy metals testing if the presence of heavy metals does not exceed the action levels listed in the following table. (d) If the sample fails heavy metals testing, the batch from which the sample was collected fails heavy metals testing and shall not be released for retail sale. Bureau of Cannabis Control Regular Regulations Text Page 108 of 136 273 Heavy Metal Action Level (µg/g) Inhalable Cannabis Goods Other Cannabis Goods Cadmium 0.2 0.5 Lead 0.5 0.5 Arsenic 0.2 1.5 Mercury 0.1 3.0 Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5724. Cannabinoid Testing (a)The laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis goods to determine whether the cannabinoid profile of the sample conforms to the labeled content of each cannabinoid such as THC; THCA; CBD; CBDA; CBG; and CBN. (b)The laboratory shall report the result of the cannabinoid testing on the COA both as a percentage and in milligrams per gram (mg/g) if by dry-weight or milligrams per milliliter (mg/mL) if by volume. The laboratory shall verify that the cannabis goods label conforms with the cannabinoid profile test results and indicate “pass” or “fail” on the COA.: (1) If the laboratory reports the result of the cannabinoid testing on the COA in dry-weight percent, they shall use the following equation: Dry-weight percent cannabinoid = wet-weight percent cannabinoid / (1 − percent moisture / 100) (c) If the labeled content of any one cannabinoid is expressed as a total concentration of the cannabinoid, the laboratory shall calculate the total cannabinoid concentration as follows: (1)For concentration expressed in weight: Total cannabinoid concentration (mg/g) = (cannabinoid acid form concentration (mg/g) x 0.877)+ cannabinoid concentration (mg/g) (2)For concentration expressed in volume: Total cannabinoid concentration (mg/mL) = (cannabinoid acid form concentration (mg/mL) x 0.877) + cannabinoid concentration (mg/mL) Bureau of Cannabis Control Regular Regulations Text Page 109 of 136 274 (d) The sample shall be deemed to have passed the cannabinoid testing if the concentration of any one cannabinoid, claimed to be present at 5% or greater of the total cannabinoid profile, does not exceed the labeled content of the cannabinoid. (1)For edible cannabis products with a cannabinoid serving size greater than 5.1 mg, and for all cannabis goods, the concentration of any one cannabinoid shall not exceed the labeled content of the cannabinoid, plus or minus 10%. (2)For edible cannabis products with a cannabinoid serving size of 2.1 mg to 5.0 mg, the concentration of any one cannabinoid shall not exceed the labeled content of the cannabinoid, plus or minus 15%. (3)For edible cannabis products with a cannabinoid serving size of less than or equal to 2.0 mg, the concentration of any one cannabinoid shall not exceed the labeled content of the cannabinoid, plus or minus 25%. (e) If the sample fails cannabinoid testing, the batch from which the sample was collected fails cannabinoid testing and shall not be released for retail sale. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5725. Terpenoid Testing (a)The laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis goods to determine whether the terpenoid profile of the sample conforms to the labeled content of terpenoids. (b) The laboratory shall report the result of the terpenoid testing on the COA both as a percentage and in either milligrams per gram (mg/g) if by weight or milligrams per milliliter (mg/mL) if by volume. The laboratory shall verify that the cannabis goods label conforms with the terpenoid profile test results and indicate “pass” or “fail” on the COA. (c) The sample shall be deemed to have passed the terpenoid testing if the concentration of any one terpenoid, claimed to be present at 5% or greater of the total terpenoid profile, does not exceed the labeled content of the terpenoids, plus or minus 10%. (d) If the sample fails terpenoid testing, the batch from which the sample was collected fails terpenoid testing and shall not be released for retail sale. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5726. Certificate of Analysis (COA) (a)The laboratory shall generate a COA for each representative sample that the laboratory analyzes. Bureau of Cannabis Control Regular Regulations Text Page 110 of 136 275 (b)The laboratory shall ensure that the COA contains the results of all required analyses performed for the representative sample. (c) The laboratory shall, within 1 business day of completing analyses of a sample, both upload the COA into the track and trace system and simultaneously provide a copy of the COA to the Bureau via email at bcc@dca.ca.gov and other requesters, if any. (d) The COA shall contain, at minimum, the following information: (1) Laboratory’s name, physical address, and license number; (2) Licensed distributor or licensed microbusiness’ name, physical address, and license number; (3) Licensed cultivator’s, licensed manufacturer’s, or licensed microbusiness’ name, physical address, and license number; (4)Batch number of the batch from which the sample was obtained; (5)Sample identifying information, including matrix type and unique sample identifiers; (6)Sample history, including the date collected, the date received by the laboratory, and the date(s) of sample analyses and corresponding testing results; (7) A picture of the cannabis goods, including packaging, if applicable; (8) For dried flower samples, the total weight of the batch, in grams or pounds, and the total weight of the representative sample in grams: (9) For cannabis product or pre-rolls samples, the total unit count of both the representative sample and the total batch size; (10)Measured density of the cannabis goods; (11) The analytical methods, analytical instrumentation used, and corresponding Limits of Detection (LOD) and Limits of Quantitation (LOQ); (12) An attestation on the COA from the laboratory supervisory or management employee that all LQC samples required by section 5730 of this division were performed and met the acceptance criteria; and (13) Analytes detected during the analyses of the sample that are unknown, unidentified, or injurious to human health if consumed, if any. (e) The laboratory shall report test results for each representative sample on the COA as follows: (1)Indicate an overall “pass” or “fail” for the entire batch; (2)When reporting qualitative results for each analyte, the laboratory shall indicate “pass” or “fail”; (3) When reporting quantitative results for each analyte, the laboratory shall use the appropriate units of measurement as required under this chapter; Bureau of Cannabis Control Regular Regulations Text Page 111 of 136 276 (4)When reporting results for each test method, the laboratory shall indicate “pass” or “fail”; (5) For representative samples obtained from a cannabis goods batch to which a content label is affixed at the time of sampling, the laboratory shall report the following on the COA: (A)The cannabinoid content and terpenoid content as printed or written on the label that is affixed to the cannabis goods batch; (B)The cannabinoid profile and the terpenoid profile of the representative sample as determined by the laboratory as required under section 5724 and section 5725 of this division, respectively; and (C) The difference, in percentage, between the cannabinoid content and terpenoid content as printed or written on the label and the cannabinoid profile and the terpenoid profile of the representative sample, if any, as determined by the laboratory. (6)When reporting results for any analytes that were detected below the analytical method LOQ, indicate “<LOQ”; (7)When reporting results for any analytes that were not detected or detected below the LOD, indicate “ND”; and (8) Indicate “NT” for any test that the laboratory did not perform. (f) The laboratory supervisory or management employee shall validate the accuracy of the information contained on the COA and sign and date the COA. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. Article 6. Post Testing Procedures § 5727. Remediation and Retesting (a) A cannabis goods batch that has been additionally processed after failed testing must be retested and successfully pass all the analyses required under this chapter. An edible cannabis product batch shall not be additionally processed after a failed testing. (b) A cannabis goods batch that failed testing only because of nonconformance with the labeled content may be relabeled so that the batch conforms with the labeled content. Retesting is not required if the relabeling is performed at the licensed distributor or licensed microbusiness premises. An edible cannabis product batch that failed cannabinoid or terpenoid testing may only be remediated by relabeling. (c)The licensed distributor or licensed microbusiness shall arrange for remediation of a failed cannabis goods batch. If the batch cannot be remediated, the batch shall be destroyed by the licensed distributor or licensed microbusiness. (d) If a batch is not remediated or reprocessed in any way it cannot be retested. Any subsequent COAs produced without remediation or reprocessing of the failed batch will not supersede the initial regulatory compliance testing COA. Bureau of Cannabis Control Regular Regulations Text Page 112 of 136 277 (e) A cannabis goods batch may only be remediated twice. If the batch fails after the second remediation attempt and the second retesting, the entire batch shall be destroyed. (f) Within 1 business day of completing the required analyses of a representative sample obtained from a remediated cannabis goods batch the laboratory shall upload the COA information into the track and trace system. If the licensee does not yet have access to the track and trace system, it shall be emailed to the Bureau. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5728. Post Testing Sample Retention (a)The laboratory shall retain the reserve sample, consisting of any portion of a sample that was not used in the testing process. The reserve sample shall be kept, at minimum, for 45 business days after the analyses, after which time it may be destroyed and denatured to the point the material is rendered unrecognizable and unusable. (b)The laboratory shall securely store the reserve sample in a manner that prohibits sample degradation, contamination, and tampering. (c)The laboratory shall provide the reserve sample to the Bureau upon request. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. Article 7. Laboratory Quality Assurance and Quality Control § 5729. Laboratory Quality Assurance (LQA) Program (a)The laboratory shall develop and implement a LQA program to assure the reliability and validity of the analytical data produced by the laboratory. The LQA program shall, at minimum, include a written LQA manual that addresses the following: (1)Quality control procedures; (2) Laboratory organization and employee training and responsibilities; (3) LQA objectives for measurement data; (4)Traceability of data and analytical results; (5) Instrument maintenance, calibration procedures, and frequency; (6)Performance and system audits; (7)Corrective action procedures; (8) Steps to change processes when necessary; (9) Record retention and document control; Bureau of Cannabis Control Regular Regulations Text Page 113 of 136 278 (10) Test procedure standardization; and (11) Method validation. (b)The supervisory or management laboratory employee shall annually review, amend if necessary, and approve the LQA program and manual both when they are created and when there is a change in methods, laboratory equipment, or the supervisory or management laboratory employee. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5730. Laboratory Quality Control (LQC) Samples (a)The laboratory shall use LQC samples in the performance of each analysis according to the following specifications. (b)The laboratory shall analyze LQC samples in the same manner as the laboratory analyzes cannabis goods samples. (c)The laboratory shall use at least one negative and one positive control in each analytical batch for each target organism during microbial testing. If one of the controls produces unexpected results, the samples shall be re-prepped and reanalyzed with a new set of controls. (d) If the result of the microbial analyses is outside the specified acceptance criteria in the following table, the laboratory shall determine the cause and take steps to remedy the problem until the result is within the specified acceptance criteria. Laboratory Quality Control Sample Acceptance Criteria Corrective Action Positive control Produces expected result, positive result Re-prep and reanalyze the entire analytical batch, once. If problem persists, locate and remedy the source of unexpected result, then re-prep samples and reanalyze with a new set of controls. Negative control Produces expected result, negative result Re-prep and reanalyze the entire analytical batch, once. If problem persists, locate and remedy the source of unexpected result, then re-prep samples and reanalyze with a new set of controls. Laboratory replicate sample Sample results must concur Reanalyze sample and associated replicate sample once. If problem persists re-prep samples and reanalyze. (e) The laboratory shall prepare and analyze at least one of each of the following LQC samples for each analytical batch: (1)Method blank; Bureau of Cannabis Control Regular Regulations Text Page 114 of 136 279 (2) Laboratory control sample (LCS); and (3)Laboratory replicate sample or matrix spike sample. (f)The laboratory shall analyze, at minimum, a continuing calibration verification (CCV) sample at the beginning of each analytical sequence and every 10 samples thereafter. (g) If the result of the chemical analyses is outside the specified acceptance criteria in the following table, the laboratory shall determine the cause and take steps to remedy the problem until the result is within the specified acceptance criteria. Laboratory Quality Control Sample Acceptance Criteria Corrective Action Method blank sample Not to exceed LOQ Reanalyze entire analytical batch once. If method blank is still greater than the LOQ for any analyte, locate the source of contamination then re-prep samples and reanalyze. LCS Percent recovery 70% - 130% Reanalyze the entire analytical batch, once. If problem persists, re-prep samples and reanalyze or re-run the initial calibration curve. Laboratory replicate sample RPD ≤30% Reanalyze sample and associated replicate sample once. If problem persists re-prep samples and reanalyze. Matrix spike sample Percent recovery between 70% to 130% Reanalyze sample and associated matrix spike sample once. If problem persists re- prep samples and reanalyze. CCV Percent recovery between 70% to 130% Reanalyze all samples that followed the last CCV that met the acceptance criteria. If CCV still fails, re-run the initial calibration curve and all samples in the analytical sequence. (h) If any analyte is detected above any action level, as described in this chapter, the sample shall be re-prepped and reanalyzed in replicate within another analytical batch. (1)For quantitative analyses, the re-prepped sample and its associated replicate must meet the acceptance criteria of RPD ≤30%. (2)For qualitative analyses, the re-prepped sample and its associated replicate results must concur. (i) If any LQC sample produces a result outside of the acceptance criteria the laboratory cannot report the result and the entire batch cannot be released for retail sale. The laboratory shall determine the cause and take steps to remedy the problem until the result is within the specified acceptance criteria. Bureau of Cannabis Control Regular Regulations Text Page 115 of 136 280 (j) If the laboratory determines that the result is a false-positive or a false-negative, The Bureau may request the laboratory to re-sample or re-test. (k) The laboratory shall compile and generate one LQC sample report for each analytical batch that includes LQC acceptance criteria, measurements, analysis date, and matrix. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5731. Limits of Detection (LOD) and Limits of Quantitation (LOQ) for Quantitative Analyses (a)The laboratory shall calculate the LOD for chemical method analyses according to any of the following methods: (1) Signal-to-noise ratio of between 3:1 and 2:1; (2)Standard deviation of the response and the slope of calibration curve using a minimum of 7 spiked blank samples calculated as follows; LOD = (3.3 x standard deviation of the response) / slope of the calibration curve; or (3)A method published by the United States Food and Drug Administration (USFDA) or the United States Environmental Protection Agency (USEPA). (b)The laboratory shall calculate the LOQ for chemical method analyses according to any of the following methods: (1) Signal-to-noise ratio of 10:1, at minimum; (2)Standard deviation of the response and the slope using a minimum of 7 spiked blank samples calculated as follows: LOQ = (10 × standard deviation of the response) / slope of the calibration curve; or (3)A method published by the USFDA or the USEPA. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code. § 5732. Data Package (a)The laboratory shall compile and generate one data package for each representative sample that the laboratory analyzes. At a minimum, the data package shall contain the following: (1)The name, physical address, and license number of the laboratory that performed the analytical procedures; (2) The name(s), title(s), and signature(s) of the laboratory employee(s) that performed the sample preparation, analyses, data review, and final approval; (3) All batch sample results and batch LQC sample results; Bureau of Cannabis Control Regular Regulations Text Page 116 of 136 281 (4) Date stamped raw data, including instrument raw data, such as chromatograms for each sample, if any; (5) Instrument test method with parameters, if any; (6) Instrument tune report, if any; (7) Instrument calibration data, if any; (8) LQC sample report that includes LQC acceptance criteria, measurements, analysis date, and matrix; (9)Worksheets, forms, pictures, or copies of laboratory notebook pages and any other pertinent documentation related to the identification and traceability of all reagents, reference materials, and standards used for analysis; (10) Analytical sequence, if any; (11)Shipping manifest, as required under this division; (12) The COC form; and (13)The COA created as required under this chapter. (b)After the data package is compiled, and prior to the release of the COA, the supervisory or management laboratory employee shall do the following: (1)Review the analytical results for technical correctness and completeness; (2) Verify that the results of each analysis carried out by the laboratory are reported accurately, clearly, unambiguously, and objectively; and (3)Approve the laboratory results by signing and dating the data package. (c)The data package shall be kept for a minimum of 7 years and shall be made available upon request by the Bureau. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104, 26110 and 26160, Business and Professions Code. § 5733. Required Proficiency Testing (a)The laboratory shall participate in a proficiency testing program provided by an organization that operates in conformance with the requirements of ISO/IEC 17043, at least once every six months. (b)The laboratory shall annually, successfully participate in a proficiency testing program for each of the following test methods: (1)Cannabinoids; (2)Heavy metals; Bureau of Cannabis Control Regular Regulations Text Page 117 of 136 282 (3)Microbial impurities; (4)Mycotoxins; (5)Residual pesticides; (6)Residual solvents and processing chemicals; and (7) If tested, terpenoids. (c)The laboratory shall report all analytes available by the proficiency testing program provider and for which the licensee is required to test as required under this chapter. (d) The laboratory shall participate in the proficiency testing program by following the laboratory’s existing SOPs for testing cannabis goods. (e) The laboratory shall rotate the proficiency testing program among the laboratory employees who perform the test methods. (f) Laboratory employees who participate in a proficiency testing program shall sign the corresponding analytical reports or attestation statements to certify that the proficiency testing program was conducted in the same manner as the laboratory tests of cannabis goods. (g) A supervisory or management laboratory employee shall review and verify the accuracy of results reported for all proficiency testing program samples analyzed. (h) The laboratory shall request the proficiency testing program provider to send results concurrently to the Bureau, if available, or the laboratory shall provide the PT program results to the Bureau within 3 business days after the laboratory receives notification of their test results from the proficiency testing program provider. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100 and 26110, Business and Professions Code. § 5734. Satisfactory and Unsatisfactory Proficiency Test Performance (a)The laboratory shall be deemed to have successfully participated in a proficiency testing program for an analyte tested in a specific method if the test results demonstrate a “satisfactory” or otherwise proficient performance determination by the proficiency testing program provider. (b)The laboratory may not report test results for analytes that are deemed by the proficiency testing program provider as “unacceptable,” “questionable,” “unsatisfactory”, or otherwise deficient. (c)The laboratory may resume reporting test results for analytes that were deemed “unacceptable,” “questionable,” “unsatisfactory”, or otherwise deficient, only if both of the following conditions are met: (1)The laboratory satisfactorily remedies the cause of the failure for each analyte; and Bureau of Cannabis Control Regular Regulations Text Page 118 of 136 283 (2)The laboratory submits, to the Bureau, a written corrective action report demonstrating how the laboratory has fixed the cause of the failure. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100 and 26110, Business and Professions Code. § 5735. Laboratory Audits (a)The laboratory shall conduct an internal audit at least once per year or in accordance with the ISO/IEC 17025 accrediting body’s requirement, whichever is more frequent. (b)The internal audit must include all of the components required by the ISO/IEC 17025 internal-audit standards. (c)Within 3 business days of completing the internal audit, the laboratory shall submit the results of the internal audit to the Bureau. (d)Within 3 business days of receiving the Accrediting Body on-site audit findings the laboratory shall submit the results to the Bureau. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100 and 26104, Business and Professions Code. Article 8. Laboratory Employee Qualifications § 5736. General Laboratory Employee Qualifications (a)The laboratory may only employ persons who are at least 21 years of age. (b)The laboratory shall develop and implement an employee training program to ensure competency of laboratory employees for their assigned functions. (c)The laboratory shall ensure and document that each laboratory employee meets the employee qualifications. Authority: Section 26013, Business and Professions Code. Reference: Sections 26102 and 26104, Business and Professions Code. § 5737. Supervisor or Management Responsibilities and Qualifications (a)The laboratory shall employ a supervisor or management employee who must be responsible for: (1)Overseeing and directing the scientific methods of the laboratory; (2)Ensuring that the laboratory achieves and maintains a laboratory quality assurance program as required by section 5729 of this division; and (3)Providing ongoing and appropriate training to laboratory employees. (b)To be considered qualified, the supervisor or management employee must have at minimum: Bureau of Cannabis Control Regular Regulations Text Page 119 of 136 284 (1)A doctoral degree in biological, chemical, agricultural, environmental, or related sciences from an accredited college or university; (2)A master’s degree in biological, chemical, agricultural, environmental, or related sciences from an accredited college or university, plus at least 2 years of full-time practical experience; (3)A bachelor’s degree in biological, chemical, agricultural, environmental, or related sciences from an accredited college or university, plus at least 4 years of full-time practical experience; or (4) A bachelor’s degree in any field from an accredited college or university, plus at least 8 years of full-time practical experience, 4 years of which must have been in a supervisory or management position. Authority: Section 26013, Business and Professions Code. Reference: Sections 26102 and 26104, Business and Professions Code. § 5738. Analyst and Sampler Qualifications (a)The laboratory shall employ an analyst who, at minimum, must have either: (1) Earned a master’s degree or a bachelor’s degree in biological, chemical, agricultural, environmental, or related sciences from an accredited college or university; or (2)Completed 2 years of college or university education that included coursework in biological, chemical, agricultural, environmental, or related sciences from an accredited college or university, plus at least 3 years of full-time practical experience. (b)The laboratory shall employ a sampler who, at minimum, must have either: (1)Completed 2 years college or university education; or (2)Earned a High School Diploma or passed a General Educational Development or High School Equivalency exam, plus at least 1 year of full-time practical experience. Authority: Section 26013, Business and Professions Code. Reference: Sections 26102 and 26104, Business and Professions Code. Article 9. Record Retention § 5739. Records All laboratory records described in this chapter shall be maintained in accordance with section 5037 of this division. Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 120 of 136 285 Chapter 7. ENFORCEMENT § 5800. Right of Access (a)The Bureau, and its authorized representatives, shall have full and immediate access to inspect and: (1) Enter onto any premises licensed by the Bureau. (2)Test any vehicle or equipment possessed by, in control of, or used by a licensee or their agents and employees for the purpose of conducting commercial cannabis activity. (3)Test any cannabis goods or cannabis-related materials or products possessed by, in control of, or used by a licensee or their agents and employees for the purpose of conducting commercial cannabis activity. (4)Copy any materials, books, or records of any licensee or their agents and employees. (b)Failure to cooperate with and participate in any Bureau investigation pending against the licensee may result in a licensing violation subject to discipline. This subsection shall not be construed to deprive a licensee of any privilege guaranteed by the Fifth Amendment to the Constitution of the United States, or any other constitutional or statutory privileges. This subsection shall not be construed to require a licensee to cooperate with a request that would require the licensee to waive any constitutional or statutory privilege or to comply with a request for information or other matters within an unreasonable period of time in light of the time constraints of the licensee’s business. Any constitutional or statutory privilege exercised by the licensee shall not be used against the licensee in a regulatory or disciplinary proceeding against the licensee. (c)The Bureau, and its authorized representatives, shall have the rights of immediate access under subsection (a) of this section, during any inspection, investigation, review, or audit, or as otherwise allowed by law. (d)Prior notice of an inspection, investigation, review, or audit is not required. (e)Any inspection, investigation, review, or audit of a licensed premises shall be conducted anytime the licensee is exercising privileges under the license, or as otherwise agreed to by the Bureau and the licensee or its agents, employees, or representatives. (f) If the licensed premises is not accessible because access is only available by going through another licensed premises and the licensee occupying the other licensed premises denies the Bureau access, the licensees shall both be held responsible and subject to discipline. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26015 and 26160, Business and Professions Code; and Section 11181, Government Code. Bureau of Cannabis Control Regular Regulations Text Page 121 of 136 286 § 5801. Notice to Comply (a)The Bureau may issue a notice to comply to a licensee for violation(s) of the Act or regulations observed during an inspection. (b)The notice to comply shall be in writing and describe the nature and facts of each violation, including a reference to the statute or regulation violated, and may indicate the manner in which the licensee must correct the violation(s) to achieve compliance. (c)The Bureau will serve the notice to comply prior to leaving the licensed premises after the inspection on any licensee, employee, agent, or person delegated by any of the aforementioned persons, to facilitate the inspection or accept such notice, or will mail the notice to comply within 15 calendar days of the last date of inspection. (d)The notice to comply shall inform the licensee that the licensee may, within 15 calendar days from the date of personal service or mailing of the notice to comply, sign and return the notice to comply declaring under penalty of perjury that each violation was corrected and describing how compliance was achieved. (e) Failure to correct the violation(s) in the notice to comply may result in a disciplinary action. Authority: Section 26013, Business and Professions Code; Reference: Sections 26012 and 26018, Business and Professions Code. § 5802. Citations; Orders of Abatement; Administrative Fines (a)The Bureau may issue citations containing orders of abatement and fines against a licensee, or an unlicensed person, for any acts or omissions which are in violation of any provision of the Act or any regulation adopted pursuant thereto, or for any violation of state law or regulations applicable to cannabis licensees, including but not limited to state labor law. (b)The Bureau may issue a citation under this section to a licensee for a violation of a term or condition contained in a decision placing that licensee on probation. (c)Each citation: (1)Shall be in writing. (2)Shall describe with particularity the nature of the violation, including a reference to the law or regulation determined to have been violated. (3)May contain an assessment of an administrative fine of up to $5,000, and/or an order of abatement fixing a reasonable time for abatement of the violation; (4)Shall be served personally or by certified mail; and (5)Shall inform the licensee or person that he or she may request an informal conference, or contest the citation, or both, pursuant to section 5803 of this division. Bureau of Cannabis Control Regular Regulations Text Page 122 of 136 287 (d)Failure to pay a fine within 30 calendar days of the date of assessment, unless the citation is being contested, may result in further action being taken by the Bureau including, but not limited to, suspension or revocation of a license. If a citation is not appealed and the fine is not paid, the full amount of the assessed fine shall be added to the fee for renewal of the license. A license shall not be renewed without the payment of the renewal fee and fine. (e)The amount of any fine to be levied by the Bureau shall take into consideration the factors listed in Business and Professions Code section 125.9(b)(3). (f)Nothing in this section shall be deemed to prevent the Bureau from filing an accusation to suspend or revoke a license where grounds for such suspension or revocation exist. Authority: Sections 125.9 and 26013, Business and Professions Code. Reference: Sections 125.9, 148, 149 and 26012, Business and Professions Code. § 5803. Contesting Citations (a)A cited licensee or person may, within 30 calendar days of service of the citation, contest the citation by requesting a hearing in writing to the Bureau or such hearing is waived. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of the Government Code. (b) In addition to requesting a hearing provided for in subsection (a) of this section, the cited licensee or person may, within 15 calendar days after service of the citation, submit a written request for an informal conference with the Bureau regarding the acts or omissions charged in the citation. (c)The Bureau shall, within 15 calendar days from receipt of the written request, hold an informal conference with the licensee or person cited, and/or his or her legal counsel or authorized representative. (d)At the conclusion of the informal conference, the Bureau may affirm, modify, or dismiss the citation, including any fines levied or orders of abatement issued. A written decision stating the reasons for the decision shall be mailed to the cited licensee or person and his or her legal counsel, if any, within 15 calendar days from the date of the informal conference. This decision shall be deemed to be a final order with regard to the citation issued, including the levied fine and the order of abatement, if any. (e) If the citation is dismissed, any request for a hearing shall be deemed withdrawn. If the citation is affirmed or modified, the cited licensee or person may, in his or her discretion, withdraw the request for a hearing or proceed with the administrative hearing process. (f) If the citation, including any fine levied or order of abatement, is modified, the citation originally issued shall be considered withdrawn and new citation issued. If a hearing is requested for the subsequent citation, it shall be requested within 30 calendar days in accordance with Business and Professions Code section 125.9(b)(4). Bureau of Cannabis Control Regular Regulations Text Page 123 of 136 288 Authority: Section 26013, Business and Professions Code. Reference: Sections 125.9, 26012 and 26016, Business and Professions Code. § 5804. Citation Compliance (a)The time to abate or correct a violation as provided for in an order of abatement may be extended for good cause. If a cited licensee or person who has been issued an order of abatement is unable to complete the correction within the time set forth in the citation because of conditions beyond his or her control after the exercise of reasonable diligence, the licensee or person cited may request an extension of time from the Bureau in which to complete the correction. Such a request shall be in writing and shall be made within the time set forth for abatement. (b)When a citation is not contested, or if it is appealed and the person cited does not prevail, failure to abate the violation within the time allowed or pay a fine that was imposed shall constitute a violation and a failure to comply with the citation or order of abatement. (c) Failure to timely comply with an order of abatement or pay a fine that was imposed may result in further action being taken by the Bureau, including, but not limited to, suspension or revocation of a license, or further administrative or civil proceedings. Authority: Section 26013, Business and Professions Code. Reference: Sections 125.9 and 26012, Business and Professions Code. § 5805. Minor Decoys (a)Peace officers may use a person under 21 years of age to attempt to purchase cannabis goods, for the purposes of enforcing the Act, and to apprehend licensees, employees, or agents of licensees who sell cannabis goods to minors. For purposes of this section, a “minor” is a person under 21 years of age. (b)The following minimum standards shall apply to the use of a minor decoy: (1)At the time of the operation, the decoy shall be less than 20 years of age. (2) A decoy shall either carry his or her own identification showing the decoy’s correct date of birth, or carry no identification. A decoy who carries identification shall present it upon request to any seller of cannabis goods. (3)A decoy shall answer truthfully any questions about his or her age. (4)Following any completed sale, but not later than the time a citation, if any, is issued, the peace officer directing the decoy shall make a reasonable attempt to enter the licensed premises or respond to the location where the licensee is located and have the minor decoy who purchased cannabis goods identify the alleged seller of the cannabis goods. Authority: Sections 26013 and 26140, Business and Professions Code. Reference: Section 26140, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 124 of 136 289 § 5806. Attire and Conduct No license shall allow the following: (a)Employment or use of any person in the sale or service of cannabis goods in or upon the licensed premises while such person is unclothed or in such attire, costume, or clothing as to expose to view any portion of the male or female breast below the top of the areola or of any portion of the pubic hair, anus, cleft of the buttocks, vulva, or genitals. (b)Employment or use of the services of any host or other person to mingle with the patrons while such hostess or other person is unclothed or in such attire, costume, or clothing as described in subsection (a)(1) of this section. (c)Encouraging or permitting any person on the licensed premises to touch, caress, or fondle the breasts, buttocks, anus, or genitals of any other person. (d)Permitting any employee or person to wear or use any device or covering, exposed to view, which simulates the breast, genitals, anus, pubic hair, or any portion thereof. Authority: Section 26013, Business and Professions Code. Reference: 26011.5, Business and Professions Code. § 5807. Entertainers and Conduct (a) Live entertainment is permitted on a licensed premises, except that no licensee shall permit any person to perform acts of or acts that simulate: (1)Sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation, or any sexual acts that are prohibited by law. (2)Touching, caressing, or fondling of the breast, buttocks, anus, or genitals. (3)Displaying of the buttocks, breasts, pubic hair, anus, vulva, or genitals. (b)No licensee shall permit any person to use artificial devices or inanimate objects to depict any of the prohibited activities described above. (c)No licensee shall permit any person to remain in or upon the licensed premises who exposes to public view any portion of his or her breast, buttocks, genitals, or anus. Authority: Section 26013, Business and Professions Code. Reference: 26011.5, Business and Professions Code. § 5808. Additional Grounds for Discipline The following include, but are not limited to, additional grounds that constitute a basis for disciplinary action: (a) Failure to pay a fine imposed by the Bureau or agreed to by the licensee. Bureau of Cannabis Control Regular Regulations Text Page 125 of 136 290 (b)Failure to take reasonable steps to correct objectionable conditions on the licensed premises, including the immediately adjacent area that is owned, leased, or rented by the licensee, that constitute a nuisance, within a reasonable time after receipt of notice to make those corrections, under Penal Code section 373a. (c) Failure to take reasonable steps to correct objectionable conditions that occur during operating hours on any public sidewalk abutting a licensed premises and constitute a nuisance, within a reasonable time after receipt of notice to correct those conditions from the Bureau. This subsection shall apply to a licensee only upon written notice to the licensee from the Bureau. The Bureau shall issue this written notice upon its own determination, or upon a request from the local law enforcement agency in whose jurisdiction the licensed premises is located, that is supported by substantial evidence that persistent objectionable conditions are occurring on the public sidewalk abutting the licensed premises. For purposes of this subsection: (1) “Any public sidewalk abutting a licensed premises” means the publicly owned, pedestrian- traveled way, not more than 20 feet from the licensed premises, that is located between a licensed premises, including any immediately adjacent area that is owned, leased, or rented by the licensee, and a public street (2)“Objectionable conditions that constitute a nuisance” means disturbance of the peace, public intoxication, drinking alcoholic beverages in public, smoking or ingesting cannabis or cannabis products in public, harassment of passersby, gambling, prostitution, loitering, public urination, lewd conduct, drug trafficking, or excessive loud noise. (3)“Reasonable steps” means all of the following: (A)Calling the local law enforcement agency. Timely calls to the local law enforcement agency that are placed by the licensee, or his or her agents or employees, shall not be construed by the Bureau as evidence of objectionable conditions that constitute a nuisance. (B)Requesting those persons engaging in activities causing objectionable conditions to cease those activities, unless the licensee, or his or her agents or employees, feel that their personal safety would be threatened in making that request. (C)Making good faith efforts to remove items that facilitate loitering, such as furniture, except those structures approved or permitted by the local jurisdiction. The licensee shall not be liable for the removal of those items that facilitate loitering. (4)When determining what constitutes “reasonable steps,” the Bureau shall consider site configuration constraints related to the unique circumstances of the nature of the business. (d)Notwithstanding that the licensee corrects the objectionable conditions that constitute a nuisance, the licensee has a continuing obligation to meet the requirements of subsections (a) and (b) of this section, and failure to do so shall constitute grounds for disciplinary action. (e) If a licensee has knowingly permitted the illegal sale, or negotiations for the sales, of controlled substances or dangerous drugs upon his or her licensed premises. Successive sales, or Bureau of Cannabis Control Regular Regulations Text Page 126 of 136 291 negotiations for sales, over any continuous period of time shall be deemed evidence of permission. As used in this section, “controlled substances” shall have the same meaning as is given that term in Article 1 (commencing with Section 11000) of Chapter 1 of Division 10 of the Health and Safety Code, and “dangerous drugs” shall have the same meaning as is given that term in Article 2 (commencing with Section 4015) of Chapter 9 of Division 2 of the Business and Professions Code. (f) If the licensee has employed or permitted any persons to solicit or encourage others, directly or indirectly, to buy such persons cannabis goods in the licensed premises under any commission, percentage, salary, or other profit-sharing plan, scheme, or conspiracy. Authority: Section 26013, Business and Professions Code. Reference: Sections 26011.5 26012, 26030, and 26031, Business and Professions Code. § 5809. Disciplinary Actions (a)When an accusation recommending disciplinary action against a license has been filed pursuant to Business and Professions Code section 26031, the accusation shall be served on the licensee in accordance with Government Code section 11505. (b)A hearing shall be conducted in accordance with the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code to determine if cause exists to take action against the licensee. At such a hearing, the Bureau shall have all the powers granted therein and by the Business and Professions Code. (c) If a hearing on an accusation against a licensee results in a finding that the licensee has committed any of the acts or omissions constituting grounds for disciplinary action, the Bureau may order the license revoked, suspended outright for a specified period of time, or suspended on probationary restriction for a specified period of time on such terms and conditions of probation as in its judgment are supported by its findings, impose a fine, or any combination thereof. The Bureau may also issue such other lawful orders it considers to be appropriate on the basis of its findings. (d) An accusation may be terminated by written stipulation at any time prior to the conclusion of the hearing on the accusation. If a licensee submits a proposed stipulation to the Bureau for its consideration and the Bureau subsequently declines to accept the proposed stipulation, the Bureau shall not thereafter be disqualified from hearing evidence on the accusation and taking action thereon as authorized in this section. Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26031 and 26034, Business and Professions Code. § 5810. Interim Suspension (a)Pursuant to Business and Professions Code section 494, the Bureau may petition for an interim order to suspend any license or impose licensing restrictions upon any licensee, if: Bureau of Cannabis Control Regular Regulations Text Page 127 of 136 292 (1) The licensee has engaged in acts or omissions constituting a violation of the Business and Professions Code or this division, or been convicted of a crime substantially related to the licensed activity, and (2)Permitting the licensee to continue to engage in the licensed activity would endanger the public health, safety, or welfare. (b)An interim order for suspension or restrictions may issue with notice, as follows: (1)The Bureau shall provide the licensee with at least 15 days’ notice of the hearing on the petition for an interim order. (2)The notice shall include documents submitted in support of the petition. (c)An interim order for suspension or restrictions may issue without notice to the licensee, as follows: (1) If it appears from the Bureau’s petition and supporting documents that serious injury would result to the public before the matter could be heard on notice. (2)The Bureau shall provide the licensee with a hearing on the petition within 20 days after issuance of the initial interim order. (3)Notice of the hearing shall be provided within two days after issuance of the initial interim order. (d)The Bureau shall file an accusation, pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, within 15 calendar days of the issuance of the interim order. Authority: Section 26013, Business and Professions Code; Reference: Sections 494, 26011.5, 26012 and 26031, Business and Professions Code. § 5811. Posting of Notice of Suspension (a)A licensee whose license has been suspended shall conspicuously and continuously display a notice on the exterior of the licensee’s premises for the duration of the suspension. (b)The notice shall be two feet in length and 14 inches in width. The notice shall read: NOTICE OF SUSPENSION The Bureau of Cannabis Control License(s) Issued For This Premises Has Been Suspended For Violation of State Law (c)Advertising or posting signs to the effect that the licensed premises has been closed or that business has been suspended for any reason other than the reason provided in the decision suspending the license, shall be deemed a violation of this section. Bureau of Cannabis Control Regular Regulations Text Page 128 of 136 293 (d)Failure to display the notice as required in this section or removal of the notice prior to the expiration of the suspension shall be a violation of this section and may result in additional disciplinary action. (e)A licensee shall notify the Bureau within 24 hours of discovering that the notice under subsection (b) of this section has been removed or damaged to an extent that makes the notice illegible. Authority: Section 26013, Business and Professions Code. Reference: Sections 26011.5 and 26012, Business and Professions Code. § 5812. Posting of Notice of Revocation (a)A licensee whose license has been revoked shall conspicuously display a notice on the exterior of the licensee’s premises indicating that the license has been revoked. The notice shall remain continuously on the licensed premises for at least 15 calendar days. (b)The notice shall be two feet in length and 14 inches in width. The notice shall read: NOTICE OF REVOCATION The Bureau of Cannabis Control License(s) Issued For This Premises Has Been Revoked For Violation of State Law (c) Advertising or posting signs to the effect that the licensed premises has been closed or that business has been suspended for any reason other than the reason provided in the decision revoking the license shall be deemed a violation of this section. (d) If the Bureau revokes a license at a licensed premises that has one or more licenses at the location that will remain active after the revocation, the revocation notice shall remain posted for a period of at least 15 calendar days. (e) Failure to display for the time required in this section shall be a violation of this section and may result in additional disciplinary action. (f)A licensee shall notify the Bureau within 24 hours of discovering that the notice under subsection (b) of this section has been removed or damaged to an extent that makes the notice illegible. Authority: Section 26013, Business and Professions Code. Reference: Sections 26011.5 and 26012, Business and Professions Code. § 5813. Enforcement Costs (a) In any order in resolution of a disciplinary proceeding for suspension or revocation of a license, the Bureau may request the administrative law judge to direct a licensee found to have committed a violation or violations of the Act, or any regulation adopted pursuant to the Act, to pay a sum not to exceed the reasonable costs of the investigation and enforcement of the case. Bureau of Cannabis Control Regular Regulations Text Page 129 of 136 294 (b)A certified copy of the actual costs, or a good faith estimate of costs where actual costs are not available, signed by the Bureau’s designated representative shall be prima facie evidence of reasonable costs of investigation and prosecution of the case. The costs shall include the amount of investigative and enforcement costs up to the date of the hearing, including, but not limited to, charges imposed by the Attorney General. (c) The administrative law judge shall make a proposed finding of the amount of reasonable costs of investigation and prosecution of the case when requested pursuant to subsection (a). The Bureau may reduce or eliminate the cost award, or remand to the administrative law judge where the proposed decision fails to make a finding on costs requested pursuant to subsection (a). (d)Where an order for recovery of costs is made and timely payment is not made as directed in the decision, the Bureau may enforce the order for repayment in any appropriate court. This right of enforcement shall be in addition to any other rights the Bureau may have as to any licensee to pay costs. (e) In any action for recovery of costs, proof of the decision shall be conclusive proof of the validity of the order of payment and the terms for payment. (f)Except as provided in subsection (g) of this section, the Bureau shall not renew or reinstate any license of any licensee who has failed to pay all of the costs ordered under this division. (g)Notwithstanding subsection (f) of this section, the Bureau may, in its discretion, conditionally renew or reinstate for a maximum of one year the license of any licensee who demonstrates financial hardship and who enters into a formal agreement with the Bureau for reimbursement within that one-year period for the unpaid costs. (h)Nothing in this section shall preclude the Bureau from including the recovery of the costs of investigation and enforcement of a case in any stipulated settlement. Authority: Section 26013, Business and Professions Code; Reference: Sections 125.3, 26012, and 26031, Business and Professions Code § 5814. Disciplinary Guidelines In reaching a decision on a disciplinary action under the Act and the Administrative Procedures Act (Govt. Code section 11400 et seq.), the Bureau shall consider the disciplinary guidelines entitled “Bureau of Cannabis Control Disciplinary Guidelines November 2017,” which are hereby incorporated by reference. Deviation from these guidelines and orders, including the standard terms of probation, is appropriate where the Bureau in its sole discretion determines that the facts of the particular case warrant such a deviation, e.g., the presence of mitigating factors, the age of the case, or evidentiary problems. Authority: Section 26013, Business and Professions Code; Reference: Section 26012, 26031, Business and Professions Code. Bureau of Cannabis Control Regular Regulations Text Page 130 of 136 295 § 5815. Emergency Decision and Order (a)The Bureau may issue an emergency decision and order for temporary, interim relief to prevent or avoid immediate danger to the public health, safety, or welfare. Such circumstances include, but are not limited to, the following: (1)The Bureau has information that cannabis goods at a licensee’s premises have a reasonable probability of causing serious adverse health consequences or death. (2)To prevent the sale, transfer, or transport of contaminated or illegal cannabis goods in possession of the licensee. (3)The Bureau observes or has information that conditions at the licensee’s premises exist that present an immediate risk to worker or public health and safety. (4)To prevent illegal diversion of cannabis goods, or other criminal activity at the licensee’s premises. (5)To prevent the destruction of evidence related to illegal activity or violations of the Act. (6)To prevent misrepresentation to the public, such as selling untested cannabis goods, providing inaccurate information about the cannabis goods, or cannabis goods that have been obtained from an unlicensed person. (b)Temporary, interim relief, may include a suspension or administrative hold by one or more of the following: (1) The temporary suspension of a license. (2) An order to segregate or isolate specific cannabis goods. (3) An order prohibiting the movement of cannabis goods to or from the premises. (4)An order prohibiting the sale of specific cannabis goods. (5)An order prohibiting the destruction of specific cannabis goods. (c)The emergency decision and order issued by the Bureau shall include a brief explanation of the factual and legal basis of the emergency decision that justify the Bureau’s determination that emergency action is necessary, and the specific actions ordered. The emergency decision and order shall be effective when issued or as otherwise provided by the decision and order. (d)To issue an administrative hold which prohibits activity related to specified cannabis goods, the Bureau shall comply with the following: Bureau of Cannabis Control Regular Regulations Text Page 131 of 136 296 (1)The notice of the administrative hold shall include a description of the cannabis goods subject to the administrative hold. (2)Following notice, the Bureau shall identify the cannabis goods subject to the administrative hold in the track and trace system. (e)A licensee subject to an administrative hold shall comply with the following: (1)Within 24 hours of receipt of the notice of administrative hold, physically segregate all designated cannabis goods in a limited access area of the licensed premises. The licensee shall ensure that all cannabis goods subject to the administrative hold are safeguarded and preserved in a manner that prevents tampering, degradation, or contamination. (2)While the administrative hold is in effect, the licensee shall not sell, donate, transfer, transport, gift, or destroy the cannabis goods subject to the hold. (3)A microbusiness licensee subject to an administrative hold may continue to cultivate any cannabis subject to an administrative hold. If the cannabis subject to the hold must be harvested, the licensee shall place the harvested cannabis into separate batches. (4)A licensee may voluntarily surrender cannabis goods that are subject to an administrative hold. The licensee shall identify the cannabis goods being voluntarily surrendered in the track and trace system. Voluntary surrender shall not be construed to waive the right to a hearing or any associated rights. (f)To issue a temporary suspension the Bureau shall specify in the order that the licensee shall immediately cease conducting all commercial cannabis activities under its license, unless otherwise specified in the order. (g)A microbusiness licensee subject to a temporary suspension may continue to cultivate cannabis at the licensed premises only as prescribed by the Bureau in the order. If the order permits the cannabis to be harvested, the licensee shall place the harvested cannabis into separate batches. (h)The emergency decision and order for temporary, interim relief shall be issued in accordance with the following procedures: (1)The Bureau shall give notice of the emergency decision and order and an opportunity to be heard to the licensee prior to the issuance, or effective date, of the emergency decision and order, if practicable. (2)Notice and hearing under this section may be oral or written and may be provided by telephone, personal service, mail, facsimile transmission, electronic mail, or other electronic means, as the circumstances permit. Bureau of Cannabis Control Regular Regulations Text Page 132 of 136 297 (3)Notice may be given to the licensee, any person meeting the definition of owner for the license, or to the manager or other personnel at the premises. (4)Upon receipt of the notice, the licensee may request a hearing within three (3) business days by submitting a written request for hearing to the Bureau through electronic mail, facsimile transmission, or other written means. The hearing shall commence within five (5) business days of receipt of the written request for hearing, unless a later time is agreed upon by the Bureau and the licensee. (5) The hearing may be conducted in the same manner as an informal conference under section 5803 of this division however, the timeframes provided in section 5803 shall not apply to a hearing under this section. Pre-hearing discovery or cross-examination of witnesses is not required under this section. (6)Following the hearing, the emergency decision and order shall be affirmed, modified, or set aside as determined appropriate by the Bureau within five (5) business days of the hearing. (i)Within ten (10) days of the issuance or effective date of the emergency decision and order for temporary, interim relief, the Bureau shall commence adjudicative proceedings in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code to resolve the underlying issues giving rise to the temporary, interim relief, notwithstanding the pendency of proceedings for judicial review of the emergency decision as provided in subsection (k). (j)After formal proceedings pursuant to subsection (i) of this section are held, a licensee aggrieved by a final decision of the Bureau may appeal the decision to the Cannabis Control Appeals Panel pursuant to Section 26043 of the Act. (k)Notwithstanding administrative proceedings commenced pursuant to subsection (i), the licensee may obtain judicial review of the emergency decision and order pursuant to section 1094.5 of the Code of Civil Procedure in the manner provided in Section 11460.80 of the Government Code without exhaustion of administrative remedies. (l) The Bureau’s authority provided by this section may be used in addition to any civil, criminal, or other administrative remedies available to the Bureau. Authority: Section 26013, Business and Professions Code and Section 11460.30, Government Code. Reference: Section 26012, Business and Professions Code, Sections 11460.10, 11460.20, 11460.30, 11460.40, 11460.50, 11460.60, 11460.70, 11460.80, Government Code. Chapter 8. OTHER PROVISIONS Article 1. Research Funding § 5900. Eligibility (a)Only public universities in California shall be eligible to be selected to receive funds disbursed pursuant to Revenue and Taxation Code section 34019(b). Bureau of Cannabis Control Regular Regulations Text Page 133 of 136 298 (b)Subject to available funding, the amounts to be disbursed to the university or universities will not exceed the sum of ten million dollars ($10,000,000) for each fiscal year, ending with the 2028-2029 fiscal year. Authority: Section 26013, Business and Professions Code and Section 34019, Revenue and Taxation Code; Reference: Section 34019, Revenue and Taxation Code. § 5901. Request for Proposals A Request for Proposal (RFP) is the document issued by the Bureau, which notifies all eligible fund recipients of the following, at a minimum: (a)The funding available for research related to the Act or regulations adopted pursuant thereto; (b)Disbursement of funds to eligible applicants through a review and selection process, including the criteria that will be used for review and selection; (c)The specified timeframes for the proposal review and selection process, including the deadline for submission of proposals. (d)Proposal requirements, including necessary documentation; (e)Any priorities or restrictions imposed upon the use of the funds; (f)The governing statutes and regulations; and (g)The name, address, and telephone number of a contact person within the Bureau, who can provide further information regarding the process for submission of proposals. Authority: Section 26013, Business and Professions Code and Section 34019, Revenue and Taxation Code; Reference: Section 34019, Revenue and Taxation Code. § 5902. Selection Process and Criteria (a)The selection process shall involve eligible proposals timely received by the Bureau, in response to an applicable RFP, or similar notice. (b)The Bureau will consider only one proposal per applicant for a given research project. Applicants may submit more than one proposal if the proposals are for separate and distinct research projects or activities. (c)The Bureau will make a selection for funding, based on criteria, including but not limited to: (1)The extent to which the proposed project is designed to achieve objectives as specified in Revenue and Taxation Code section 34019(b). (2)The extent to which the proposed project is designed to achieve measurable outcomes, and the clarity of the measures for success. (3)The extent to which the proposed project is feasible, demonstrated by: (A)A timeline for project completion, including readiness; and (B) Budget detail. Bureau of Cannabis Control Regular Regulations Text Page 134 of 136 299 (4)Qualifications of the staff who will be assigned or working on the proposed project. (5)Any other criteria to determine the proposed project’s efficacy in evaluating the implementation and effect of the Act. (d)Applicants selected for funding will be notified in writing, along with the amount of the proposed funding. (e)The Bureau’s selection decision is final and not subject to appeal. Authority: Section 26013, Business and Professions Code and Section 34019, Revenue and Taxation Code; Reference: Section 34019, Revenue and Taxation Code. § 5903. Release of Funds (a)The Bureau shall not cause funds to be disbursed until the Applicant has executed a Grant Agreement, and any other required documents. (b)Selected recipients shall receive a single disbursement of funds for the duration of the research project. (c) Funds released to the recipient that will be used for the purchase of any equipment related to the research project, shall at a minimum, meet the following conditions: (1)Prior to the purchase of any equipment, the recipient shall obtain written approval from the Bureau. (2)Receipts or other documentation for the purchase of any equipment shall be provided to the Bureau immediately upon purchase and request, and retained pursuant to section 5904 of this division. (d)Any funds that are not used prior to the completion of the research project shall be forfeited. Authority: Section 26013, Business and Professions Code and Section 34019, Revenue and Taxation Code; Reference: Section 34019, Revenue and Taxation Code. § 5904. Reports and Records (a) The recipient of funds shall provide regular performance reports to the Bureau. (1)Performance reports shall be provided to the Bureau in the following manner: (A)At monthly intervals for research projects with an estimated completion time not exceeding one year. (B) At quarterly intervals for research projects with an estimated completion time exceeding one year. (2)Performance reports shall include, at a minimum: (A) A detailed, estimated time schedule of completion for the research project; Bureau of Cannabis Control Regular Regulations Text Page 135 of 136 300 (B) Description of any measurable outcomes, results achieved, or other completed objectives of the research project; (C)Description of remaining work to be completed; (D)Summary of the expenditures of the funds, and whether the research project is meeting the proposed budget, and if not, the reasons for any discrepancies and what actions will be taken to ensure the research project will be completed; and (E)Any changes to the information provided in the proposal, including, but not limited to, change in staff. (b)Recipients shall publish annual reports on their findings, and upon the completion of their research project, and make such reports available to the public. Prior to publishing any reports, the recipient shall provide a copy to the Bureau, at least 30 days prior to the release or publishing of the report. (c)Recipients shall retain all research and financial data necessary to substantiate the purposes for which the funds were spent, for the duration of the funding, and for a period of seven years after completion of the research project. Recipients shall provide such documentation to the Bureau upon request. Authority: Section 26013, Business and Professions Code and Section 34019, Revenue and Taxation Code; Reference: Section 34019, Revenue and Taxation Code. Bureau of Cannabis Control Regular Regulations Text Page 136 of 136 301 City of Huntington Beach File #:18-370 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Gilbert Garcia, Chief Financial Officer Subject: Approve FY 2017/18 Year End Adjustment for the Workers’ Compensation Internal Service Fund Statement of Issue: The Finance Department is completing the year-end closing process for Fiscal Year 2017/18, which began on October 1, 2017, and ended on June 30, 2018. Certain technical adjustments need to be made to reconcile the budget with liabilities incurred and to comply with auditing, actuarial, accounting and/or legal requirements. City Council authorization is requested to appropriate and transfer $1.2 million from the General Fund to the Workers’ Compensation Internal Service Fund to record the increase in the total year-end liability of the Fund based on the most recent actuarial valuation. Financial Impact: This action will result in the transfer of $1,245,432 from the General Fund to the Workers’ Compensation Internal Service Fund (Fund 551) pursuant to Generally Accepted Accounting Principles (GAAP). The $1.2 million increase in the total liability of the Fund must be recorded based on the results of the most recent actuarial valuation conducted by the independent actuary firm Aon Consulting. With total assets of $14.0 million and total liabilities of $30.5 million, the total net position of the Fund is negative $16.5 million, reflecting a 46 percent funded status. With this requested transfer, the funded status will increase to 50 percent. Recommended Action: Approve the appropriation of $1,245,432 in the Fiscal Year 2017/18 Revised Budget in the General Fund (100) and transfer to the Self Insurance Workers’ Compensation Internal Service Fund (551). Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis: California Workers’ Compensation Law provides state mandated benefits to employees for work- City of Huntington Beach Printed on 10/10/2018Page 1 of 2 powered by Legistar™302 File #:18-370 MEETING DATE:10/15/2018 California Workers’ Compensation Law provides state mandated benefits to employees for work- related illness or injury. Benefits may include payments for medical treatment, salary continuation, Total Temporary Disability (TTD) benefits, and permanent disability benefits. The City is self-insured for its workers’ compensation program and is liable for all costs up to $1 million dollars per claim. The costs related to claims are paid for by the City as the Employer. FY 2017/18 Actual Expenses and Liabilities (Preliminary Unaudited) Total expenses in the Workers’ Compensation Internal Service Fund are approximately $6.4 million for FY 2017/18, which reflects a nine-month adjusted fiscal year and a growth of 47 percent from the same nine-month period (October to June timeframe) in FY 2015/16. The growth in expenditures is due primarily to health care industry trends related to the increased cost of medical care, statutorily enhanced benefits for public employees, and labor costs. To facilitate improved accounting and full financial disclosure of the City’s current and future Workers’ Compensation program costs, the Workers’ Compensation Internal Service Fund was created in FY 2012/13 to better account for the program’s expenses and long-term liabilities. The components of these expenses include, but are not limited to, annual claims administration expense, direct and indirect claims costs (e.g.,professional, medical, hospital, pharmacy and legal costs), salary continuation and medical utilization review costs. This Fund has allowed for greater tracking, planning and transparency of workers’ compensation expenses and liabilities. Greater transparency has been achieved as all costs are distinctly accounted for within a segregated fund in the City’s annual adopted budget and financial statements. Unfunded Liabilities and Net Fund Position As of the most recent actuarial valuation for the period ending June 30, 2018, the City’s total workers’ compensation liability is now $30.5 million, or $1.2 million higher than the previous year. The increase is primarily due to a reconciliation performed by the City’s independent actuaries, Aon Consulting, to true-up the Fund’s liabilities to reflect the City’s greater than expected outstanding claims burden. The liability of $30.5 million, compared to total Fund assets of $14.0 million results in an unfunded liability of $16.5 million and a funded status of 46 percent. The requested action will match the increase in the City’s liability identified in the June 30, 2018 actuarial valuation, and will bring the funded status to 50 percent. Environmental Status: Not Applicable. Strategic Plan Goal: Strengthen economic and financial sustainability Attachment(s): 1. City of Huntington Beach Workers’ Compensation Analysis Fiscal Year End 6/30/2018 Unaudited City of Huntington Beach Printed on 10/10/2018Page 2 of 2 powered by Legistar™303 City of Huntington BeachWorker's Comp Analysis - EstimatedFYE: 6/30/2018FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18* IncreaseWC Liability per Actuary Report** 15,894,603.00 20,631,067.00 20,631,067.00 26,184,026.00 27,439,191.00 1,255,165.00 ULAE (Unallocated loss adjustment expense)*** 794,730.15 1,031,553.35 1,031,553.35 1,309,201.30 1,371,959.55 62,758.25 WC Liability w/ULAE 16,689,333.15 21,662,620.35 21,662,620.35 27,493,227.30 28,811,150.55 1,317,923.25 Other Liabilities (AP, Comp Absences, Pension etc) 454,768.83 501,731.33 1,594,173.27 1,796,078.22 1,663,789.55 (132,288.67) Estimated Year End Adjustments - - - - 59,797.76 59,797.76 Total Liabilities 17,144,101.98 22,164,351.68 23,256,793.62 29,289,305.52 30,534,737.86 1,245,432.34 ULAE Percentage***5.0%5.0%5.0%5.0%5.0%FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18Workers' Comp Liability per Detail Report10,725,174 12,007,917 15,660,368 14,498,037 14,439,163 Increase by IBNR Factor1.561.801.381.902.00Estimated Worker's Comp Liability16,689,333 21,662,620 21,662,620 27,493,227 28,811,151 Worker's Comp Calculation Due and Payable3 Yr Avg****FY 15/16 FY 16/17 FY 17/18 FY 17/18Medical 2,803,120 3,203,458 2,120,710 2,709,096 Indemnity3,138,208 3,224,193 2,795,549 3,052,650 5,941,328 6,427,651 4,916,260 5,761,746 * Preliminary Unaudited Amounts** Workers' Compensation Liability per Actuary Report*** ULAE (Unallocated loss adjustment expense)**** Average worker's comp medical & Indemnity claims paid over the last 3 yearsActual304 City of Huntington Beach File #:18-410 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Gilbert Garcia, Chief Financial Officer Subject: Approve FY 2017/18 Year-End Budget Adjustment for the General Liability Internal Service Fund Statement of Issue: The Finance Department is completing the year-end closing process for Fiscal Year 2017/18, which began on October 1, 2017, and ended on June 30, 2018. Certain technical adjustments need to be made to reconcile the budget with liabilities incurred and to comply with auditing, actuarial, accounting and/or legal requirements. City Council authorization is requested to appropriate and transfer $405,060 from the General Fund to the General Liability Internal Service Fund to cover increased costs in annual general liability insurance premiums. Financial Impact: This action will result in the transfer of $405,060 from the General Fund to the General Liability Internal Service Fund (Fund 552) pursuant to Generally Accepted Accounting Principles (GAAP) in order to support the costs associated with ongoing general liability insurance coverage. There is sufficient revenue in the General Fund to support this request. Recommended Action: Approve the appropriation of $405,060 in the Fiscal Year 2017/18 Revised Budget in the General Fund (100) and transfer to the Self Insured General Liability Internal Service Fund (552). Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis: On March 20, 2017, City Council authorized the consolidation of Citywide accounting and funding for general liability costs into a separate, single General Liability Internal Service Fund pursuant to Generally Accepted Accounting Principles (GAAP). This action has enabled staff to better budget, City of Huntington Beach Printed on 10/10/2018Page 1 of 2 powered by Legistar™305 File #:18-410 MEETING DATE:10/15/2018 track, and monitor Citywide general liability costs. The City is a member of the Big Independent Cities Excess Pool Joint Powers Authority (BICEP), formed in 1988 with several other cities to share the risks and achieve a more cost-effective way to purchase liability insurance. Under BICEP, the City is self-insured for combined liability and cost of defense up to $1 million dollars per claim. Costs up to that amount are paid from the General Liability Fund Budget. BICEP then provides coverage for the next $1 million to $25 million dollars in liability. The City pays annual insurance premiums to BICEP which have been rising due to a variety of factors including increased litigation costs. The FY 2018/19 general liability portion of BICEP’s annual premium expenses totals $1.9 million, a 27% increase over the prior year’s costs of $1.5 million (Attachment 1). In addition, BICEP’s total liability (as of June 30, 2018, unaudited) is $10.4 million, representing a 34.3% increase over the prior year’s total liabilities of $6.9 million (Attachment 2). Moreover, the withdrawal of the City of San Bernardino as a charter member from BICEP will place further financial strain on the remaining member cities including Huntington Beach, Santa Ana, Oxnard, Ventura, and West Covina. Please note that this adjustment is based on unaudited financial statements for FY 2017/18. Once BICEP closes out FY 2017/18, it may require the City to pay an additional equity adjustment cost. BICEP will complete its audit by December, 2019, and will charge its members any needed equity adjustments shortly thereafter. The total increase for General Liability, including equity adjustments, that the BICEP charged to the City for FY 2016/17 was approximately $2 million. Environmental Status: Not applicable. Strategic Plan Goal: Strengthen economic and financial sustainability Attachment(s): 1. City of Huntington Beach BICEP FY 2018/19 Cost Summary Versus Prior Year 2. Big Independent Cities Excess Pool Balance Sheet (Unaudited) As of June 30, 2018 and June 30, 2017 City of Huntington Beach Printed on 10/10/2018Page 2 of 2 powered by Legistar™306 ATTACHMENT 1 CITY OF HUNTINGTON BEACH ‐ BICEP FY 2018/19 COST SUMMARY VERSUS PRIOR YEAR City of Huntington Beach BICEP Cost:FY 2017/18  Program FY 2018/19  Program Premium  Increase /  (Decrease) % Liability Program Premium 1,346,823     1,717,891  371,068       90% Workers' Compensation Premium 336,376        342,685     6,309           2% Administration 96,430          121,175     24,745         6% Airport/Aircraft Liability Premium 56,072          62,223       6,151           1% Crime Policy Premium 9,501            10,396       895              0% Environment/Pollution Policy Premium 3,565            2,716          (849)             0% Fine Arts Floater ‐                3,050          3,050           1% Total BICEP Annual Payment 1,848,767    2,260,136  411,369      100% General Liability Portion of BICEP Payment 1,512,391    1,917,451  405,060      98% 307 308 City of Huntington Beach File #:18-411 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Marie Knight, Director of Community Services Subject: Approve the Franklin Park Conceptual Master Plan located at the former Franklin School site at 14422 Hammon Lane Statement of Issue: Community Services Commission (CSC) has reviewed and approved the Franklin Park Conceptual Master Plan. There is now a need for City Council approval of the Conceptual Master Plan as presented. Financial Impact: Not applicable. The 1.30-acre park and improvements are to be dedicated at no cost to the City. Recommended Action: Approve the Franklin Park Conceptual Master Plan as presented. Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis: The former Franklin School site is located at 14422 Hammon Lane and currently owned by the Westminster School District (WSD). The project site currently consists of a 9.8 acre closed school site and a 1.52 acre park. Both the former school site and park properties are owned by the Westminster School District, however, the City currently maintains and operates the public park. WSD is in negotiations with Tri Pointe Homes on a land exchange that will make the former school site available for residential development. Tri Pointe Homes has submitted a request to the Community Development Department, Planning Division, to subdivide the property to construct 51 single-family homes on a portion of the property. A 1.30-acre neighborhood park is also being proposed as part of the project. City of Huntington Beach Printed on 10/10/2018Page 1 of 3 powered by Legistar™309 File #:18-411 MEETING DATE:10/15/2018 The Franklin Park Conceptual Master Plan prepared by Tri Pointe Homes was previously brought to the Community Services Commission and approved at the June 13, 2018, meeting. That plan consisted of a 1.15-acre park with a tot lot, surrounded by open turf and a picnic shelter area. Residents who attended the meeting voiced their concerns about the proposed location and orientation of park and the park acreage going from the current 1.52 acres to 1.15 acres. Residents wanted the new park plan to be as close as possible to its current orientation, layout, and acreage. Residents also voiced concerns regarding the tot lot being designed for the 5-12 age group only. Although approving the plan, Commissioners also expressed concerns with the inclusion of a large central picnic shelter, given the problems the City is currently facing at similar picnic shelters in other parks that have become gathering places for undesirable activities. Based on comments received from the public and the Commission, Tri Pointe Homes revised the park plan accordingly. Due to the significant level of changes to the park plan initially approved by the Community Services Commission on June 13, 2018, staff brought the revised plan back to the Commission for further review at the September 12, 2018, meeting. Key changes included the size and the location of the park. The new design is consistent with the orientation of the existing park, keeping it parallel to Sands Drive. The size of the park also increased from the 1.15 acres previously proposed to 1.30 acres. Additionally, the tot lot now includes play units designed for the 2-12 age group. Lastly, a picnic shelter is not included as part of the plan. Other elements of the plan include open turf areas, benches, tables, and trash receptacles. The plan also incorporates conservation designs that include a plant palette of low water use shrubs and a picnic area surfaced with decomposed granite to reduce the amount of turf area. Overall, the proposed design and amenities of the park are consistent with other neighborhood parks in the City (Attachment 1). Public art is also being proposed in the park with the caveat that it be maintained in perpetuity by a Homeowner’s Association that will be formed for the new community. To allow for the expansion of the park to 1.30 acres, Tri Pointe has revised the proposed residential development by reducing the number of housing units from 53 to 51. As previously reported, the residential development at the former Franklin School site is being processed as a Plan Unit Development (PUD) and will be conditioned to provide public benefits to the community. Per the Quimby Act and Chapter 2.54 of the Zoning Code, a sub-division of 51 units is required to provide 0.74 acres of undeveloped parkland. As a public benefit, Tri Pointe Homes is proposing to dedicate the 1.30-acre park to the City - which is 0.56 acres more than required. Tri Pointe is also proposing to construct the park at no-cost to the City, which is also above and beyond the Quimby Act and the requirements of Chapter 2.54 of the City’s Zoning Code. If the City were to acquire and develop 1.30 acres of parkland, the approximate cost would be $1.8 million. Additionally, as previously stated, the Franklin Park property is owned by WSD. Should the project be approved as proposed, the City would receive an improved park and dedication of the land in fee. This will ensure that the City will have full control and possession of the park into the future. While the acreage will be reduced from 1.52 acres to 1.30 acres, the City will continue to meet its park acreage standard of 5- acres per 1,000 residents citywide. It is important to note, that while the existing acreage for Franklin Park is listed at 1.52 acres in the City’s Park Inventory, the area of the park is measured to the back of the curb. The proposed park City of Huntington Beach Printed on 10/10/2018Page 2 of 3 powered by Legistar™310 File #:18-411 MEETING DATE:10/15/2018 acreage is measured to the back of the sidewalk, for a total of 1.30 acres. Measuring the current park boundary to the back of the sidewalk also totals 1.30 acres. The purview of the Community Services Commission was only related to the Conceptual Master Plan for the park and the recreational elements proposed in the park. The Commission does not have jurisdiction or authority relating to the land dedication, the PUD, or any proposed public benefit. All park master plans, new or updated, are approved by both the Community Services Commission and City Council. At their September 12, 2018, meeting, the Commission issued their support of the revised plan and made a recommendation for Council approval. Based on the recommended action by the Commission, Council is being asked to approve the Conceptual Master Plan for Franklin Park as presented. Environmental Status: The proposed project, including the public park requires the processing of a mitigated negative declaration (MND) through the Community Development Department, Planning Division. Strategic Plan Goal: Improve quality of life Attachment(s): 1. Franklin Park Conceptual Master Plan City of Huntington Beach Printed on 10/10/2018Page 3 of 3 powered by Legistar™311 312 313 314 315 City of Huntington Beach File #:18-397 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Antonia Graham, Assistant to the City Manager Subject: Approve the September 2018 City of Huntington Beach Strategic Plan Update Statement of Issue: The City Council held a Strategic Planning Retreat on February 13, 2018, in which the City Council developed 25 Strategic Objectives based on five (5) Strategic Plan Goals. The Strategic Objectives were reviewed in a public meeting and through consensus by the City Council Members present, were compiled into a draft Strategic Objectives Grid. The Strategic Objectives were brought forth to City Council for approval on March 19, 2018. Financial Impact: Not applicable. Individual Strategic Objectives which have a budgetary impact will be considered separately. Recommended Action: Approve the September 2018 Strategic Objectives Update as contained within Attachment 1. Alternative Action(s): Amend or reject the Strategic Objectives Update and direct staff accordingly. Analysis: In 2009, the City Council began an annual strategic planning process to develop consensus on a Mission Statement, Three-Year Goals, and corresponding Priority Strategic Objectives. This process is ongoing and is a critical component of maintaining the City in a fiscally sustainable manner. In fulfilling this process, the City Council met on February 13, 2018, to review and update the Three- Year Goals and their Priority Strategic Objectives. The Three-Year Goals are organized into five categories as follows: - Improve quality of life - Enhance and maintain infrastructure - Strengthen economic and financial sustainability - Enhance and maintain public safety - Enhance and maintain city service delivery City of Huntington Beach Printed on 10/10/2018Page 1 of 2 powered by Legistar™316 File #:18-397 MEETING DATE:10/15/2018 Each of these categories includes a list of Six-Month Strategic Objectives. The Strategic Objectives contained in the matrix all gained consensus at the Strategic Planning Retreat. Additionally, the Strategic Objectives were brought forth to City Council on March 19, 2018, where they were approved in their entirety. The attached Strategic Objectives Matrix contains a status and comments column that are updated to reflect the most recent activity on each item that was identified at the Strategic Planning Session. The status is reported to the City Council on a monthly basis. Environmental Status: Not Applicable. Strategic Plan Goal: Improve quality of life Enhance quality of life Strengthen economic and financial sustainability Enhance and maintain public safety Enhance and maintain City service delivery Attachment(s): 1. City of Huntington Beach Strategic Objectives - September 2018 Update City of Huntington Beach Printed on 10/10/2018Page 2 of 2 powered by Legistar™317 A C I T Y O F H U N T I N G T O N B E A C H S T R A T E G I C O B J E C T I V E S (February 13, 2018 – January 1, 2019) JULY 2018 CITY COUNCIL UPDATE THREE-YEAR GOAL:IMPROVE QUALITY OF LIFE WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISED 1. By June 1, 2018 Chief Information Officer (lead), City Attorney and Councilmember Jill Hardy Implement a website interface for the community to file nuisance complaints that is more visible and prominent to the public. X The new “contact us” page was implemented on 6/12/2018 and the My HB app replaced Pipeline on July 17. Information Services will present to Council at the August 20 meeting. 2. By September 1, 2018 City Attorney (lead), and Councilmembers Erik Peterson, Jill Hardy and Lyn Semeta Propose amendments to the City Council for action that strengthen the Neighborhood Nuisance Ordinances. X 318 B THREE-YEAR GOAL:ENHANCE AND MAINTAIN INFRASTRUCTURE WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISED 1. By June 1, 2018 Assistant City Manager (lead), Police Chief and Public Works Director Complete a needs assessment and financing of Police Department Facilities and provide recommendations for improvement to the City Council for action. X The Police, Public Works, and Finance Departments made a presentation to the City Council on July 16, 2018 regarding the PD Headquarters proposed modernization, estimated costs and potential financing options. A final financing plan will be presented in January 2019. 2. By June 1, 2018 Public Works Director and Community Services Director, working with the Central Park Committee and Community Services Commission Prioritize park maintenance needs and improvements and present to the City Council for consideration. X On May 21, 2018, the FY 2018/19 Proposed Budget Capital Improvement Plan (CIP) was presented to the City Council, including park improvement projects to be financed next year. 3. By June 1, 2018 January 2019 Community Services Director and Public Works Director, with input from the Community Services Commission Complete an assessment of park playground equipment and playground surfacing and recommend priorities to the City Council for consideration. X The CS Commission Subcommittee met on July 2nd, and August 21, and asked staff for more information, the Subcommittee again met on September 27th to make final recommendations to the full Commission. It is now anticipated that this item will come to the full Commission in November and the Council in December or January. Once the Council approves of the recommended priorities, this list will be used to allocate available CIP and/or park funding on a priority basis. 319 C 4. By October 1, 2018 Chief Information Officer (CIO) and Public Works Director Perform and assessment of all technology needs and current technology programs used to support infrastructure assets to prepare for development of a Comprehensive Asset Management System. X Project was kicked off the first week in September, staff from IS and PW meet regularly to perform a needs assessment and a comprehensive report along with recommendations will be presented to CIO and PW Director by 10/30. 5. By December 15, 2018 Public Works Director and Assistant City Manager, with input from the Department Directors Assess City facility deficiencies and provide recommendations for improvement to the City Council for action. X 6. By January 1, 2019 Public Works Director and CIO Perform a power and electricity needs assessment for City facilities and report results with recommendations to the City Manager. X PW is in the process of developing a plan with input from IS with high priority locations.. 320 D THREE-YEAR GOAL:STRENGTHEN ECONOMIC AND FINANCIAL SUSTAINABILITY WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISED 1. By August 6, 2018 Assistant City Manager (lead), CFO, and Deputy Director of Business Development Conduct a City Council Study Session on budget balancing options, including looking at current revenue sources, potential new revenue options and sale of surplus property. X Presented at 5/7/18 Study Session. Item was then referred to the Finance Commission for follow-up and recommendations. The Finance Commission met on 7/25/18 and will present their recommendations at the City Council Study Session on 8/6/18. A Request for Council Action will be presented to the City Council on October 15, 2018 with revenue enhancing measures pursuant to City Council direction. 2. By August 1, 2018 Public Works Director and CFO Recommend options for the commercial refuse franchise fee.X Under consideration as part of the franchise renewal negotiation. 3. By November 15, 2018 By January 31, 2019 Assistant City Manager and CFO Conduct a cost-benefit analysis of the City’s programs and services and recommend to the City Council for action adjustments to assist with balancing the budget. X ACM and CFO are finalizing the format and methodology for this review and will utilize starting in January 2019 as part of the Fiscal Year 2019/20 Budget development process for the fiscal year starting July 1, 2019. 4. By January 1, 2019 HR Director and CFO Identify funding to enhance the funded status of the City’s Workers Comp Plan. X A Request for Council Action is scheduled for the October 15, 2018 City Council meeting to perform the year-end adjustments to the Fund to ensure there is no further erosion of the Fund’s funded status. 321 E 5. By January 1, 2019 Community Development Director Bring to the City Council for action the implementation of the Research and Technology Section of the Zoning Code. X Stakeholder meetings were conducted in July and August and RT property owner outreach currently underway. Draft technical analysis to be submitted late September. First administrative draft ordinance to be submitted end of October. PC SS target November 13th. 322 F THREE-YEAR GOAL:ENHANCE AND MAINTAIN PUBLIC SAFETY WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISED 1. On or before July 1, 2018 and December 1, 2018 Police Chief Provide an update to the City Council on the implementation of Management Partners’ recommendations. X The Police Chief made a presentation regarding the implementation of the study’s recommendations to City Council on September 4, 2018. 2. By July 1, 2018 Police Chief and CFO Present to the City Council for consideration revenue opportunities to increase funding for police staffing. X Options to enhance General Fund revenue in order to improve infrastructure, increase staffing (including police officers) and address rising labor costs were presented to the City Council at the May 7, 2018, Study Session . 3. By September 1, 2018 November 1, 2018 Fire Chief and CFO Present the findings of the Peak Load Staffing for Emergency Transport Services Pilot Program and make a recommendation, including financial impact, to the City Manager. X Date revision. 4. By September 1, 2018 Fire Chief and CIO Present to the City Council for consideration a third party Fire Safety Inspection Reporting System to assist the business community with web-based reporting. X RFP was created and the vendor/system was selected. The data export required by the vendor was completed 8/30/18. 90% of the implementation work has been completed. 5. By September 1, 2018 Police Chief and CIO Complete the RFP process and recommend a contract to the City Council for consideration for a new Computer Aided Dispatch System and a Records Management System.X RFP is ready to be posted. Staff developing a project charter that provides a preliminary delineation of roles and responsibilities and to identify all potential costs associated with the project. 323 G 6. By September 1, 2018 Assistant City Manager, Police Chief and Deputy Director of Economic Development, working with the ad hoc Council Committee on Homelessness Present to the City Council for consideration a Comprehensive Plan to Address Homelessness. X A comprehensive plan to address homelessness in Huntington Beach will be presented to the City Council by the end of the year. Community outreach meetings are taking place alongside working with the Council Subcommittee on Homelessness, the County of Orange, the ACC-OC and other Central Service Planning Area cities regarding our Plan, as well as potential and future partnerships to better address this complex issue 7. By January 1, 2019 Fire Chief and CIO Conduct a needs assessment of the Fire Department’s Computer Aided Dispatch System and Records Management System and make recommendations for system integration to the City Manager. X Staff met with the vendor (NextLevel) to discuss the project scope on July 19, 2018. NextLevel provided a proposal for performing a technology needs assessment for the Fire Department in September. 8. By July 1, 2018 January 31, 2019 Fire Chief and Assistant City Manager Conduct a City Council Study Session on optimizing staffing during peak and non-peak times. X Currently under review. 324 H THREE-YEAR GOAL:ENHANCE AND MAINTAIN CITY SERVICE DELIVERY WHEN WHO WHAT STATUS COMMENTS DONE ON TARGET REVISED 1. By July 1, 2018 August 15, 2018 ACM and CIO Provide to the City Council an update regarding the implementation of an Enterprise Land Management (ELM) system. X Final memo and presentation was sent to CC on Tuesday, August 21, 2018. 2. By December 31, 2018 Library Services Director (lead), CFO and CIO Implement a system to enable library cardholders to pay fees and fines online. X Ecommerce module of Library’s Horizon Integrated Library system is due in the fourth quarter of 2018. Module is part of an upgrade that will be scheduled when available. 3. By November 1, 2018 PIO (lead), CIO, City Attorney and Assistant City Manager Create and present to the City Manager a citywide social media plan for promoting City services, events and operations. X Drafting AR and on target for Nov. 1. 4. By January 1, 2019 City Manager and CIO Develop and present a plan to the City Council for action to improve connectivity via broadband to downtown City facilities. X IS working with the broadband committee to evaluate different options. 325 City of Huntington Beach File #:18-399 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Antonia Graham, Assistant to the City Manager Subject: Adopt Resolution No. 2018-58 Amending the Conflict of Interest Code Statement of Issue: State law mandates that cities perform a biennial review of their Conflict of Interest Code requiring designated employees, hired consultants/contractors, and members of City Boards, Commissions, and Committees to file a Statement of Economic Interests. Financial Impact: Not applicable. Recommended Action: Adopt Resolution No. 2018-58, “A Resolution of the City Council of the City of Huntington Beach Amending its Conflict of Interest Code.” Alternative Action(s): Do not adopt the Resolution and direct staff accordingly. Analysis: State law (the Political Reform Act) requires public agencies in California to review their Conflict of Interest Code every two years. The City last amended its Code on September 19, 2016, through the adoption of Resolution No. 2016-44. The Conflict of Interest Code designates certain officials, commissioners, employees, consultants/contractors, who must file with the City Clerk a Statement of Economic Interests (also known as a Form 700) related to Governmental duties. Additionally, the California Fair Political Practices Commission (FPPC) recommends establishing disclosure categories to ensure that conflicts of interest are avoided without violating an individual’s right to privacy. Human Resources staff reviewed the 2016 Conflict of Interest Code along with the list of required filers and determined that the following amendments to the Code are necessary to comply with the State law: (a) inclusion of new positions as Code filers; (b) revisions to titles of existing positions; and, (c) deletion of positions that have been abolished. City of Huntington Beach Printed on 10/10/2018Page 1 of 2 powered by Legistar™326 File #:18-399 MEETING DATE:10/15/2018 The current list of required filers, along with the recommended additions (bold) and deletions (strikethrough) are shown in Attachment 1. The final list is incorporated into Resolution No. 2018-58 (Attachment 2). The recommended changes are non-substantive and reflect minor changes made to position titles, obsolete positions or added positions. The disclosure categories are incorporated into the Resolution. Environmental Status: Not applicable. Strategic Plan Goal: Non-Applicable - Administrative Item Attachment(s): 1. Strikethrough of Conflict of Interest Filers from 2016 2. Resolution No. 2018-58, “A Resolution of the City Council of the City of Huntington Beach Amending its Conflict of Interest Code”. City of Huntington Beach Printed on 10/10/2018Page 2 of 2 powered by Legistar™327 1 EXHIBIT B DESIGNATED OFFICIALS AND EMPLOYEES WITH DISCLOSURE CATEGORIES Job Type Description Category 0089 Admin Analyst Senior 3 0025 Administrative Analyst 5 0078 Assistant City Attorney 1 0132 Assistant City Clerk 1 0592 Assistant City Manager 1 0595 Assistant Fire Marshal 4 0057 Assistant to the City Manager 1 0044 Beach Operations Supervisor 3, 4 0064 Budget Analyst Senior 3 0598 Building Manager 1 0500 Business Systems Manager 1 0112 Buyer 2 0593 Chief Asst City Attorney 1 0518 Chief Financial Officer 1 0479 Chief Information Officer 1 0016 City Attorney 1 0017 City Clerk 1 0024 City Engineer 1 0591 City Manager 1 0018 City Treasurer 1 0125 Code Enforcement Supervisor 2 0589 Community Development Director 1 0471 Community Relations Officer 2, 3 0353 Community Services Manager 1 0258 Community Srvcs Rec Supv 3 0097 Construction Manager 2 0085 Contract Administrator 3, 4, 5, 6 0081 Deputy City Attorney I 3, 5, 6 0080 Deputy City Attorney II 3, 5, 6 0079 Deputy City Attorney III 3, 5, 6 0699 Deputy Community Prosecutor 3,5,6 0571 Deputy Director of Econ Development 1 0840 Deputy Director of Community Development 1 0486 Detention Administrator 3, 4 0014 Director of Community Services 1 0574 Director of Human Resources 1 0007 Director of Library Services 1 0010 Director of Public Works 1 0039 Econ Development Proj Mgr 4, 5 0580 Energy Project Manager 4, 5 0474 Facilities Devel & Concess Mgr 1 0050 Facilities Maint Supervisor 3, 4 328 2 0879 Finance Manager -Accounting 1 0889 Finance Manager -Budget 1 0899 Finance Manager -Fiscal Services 1 0869 Finance Manager -Treasury 1 0031 Fire Battalion Chief 4 0015 Fire Chief 1 0026 Fire Division Chief 1 0131 Fire Medical Coordinator 2 0590 Fleet Operations Supervisor 3, 4 0581 General Services Manager 1 0006 Human Resources Manager 1 0499 Senior Information Technology Analyst, Senior 3, 4 0201 Information Technology Manager 1 0489 Information Technology Manager – Infrastructure 1 0200 Information Technology Manager –Operations 1 0500 Information Technology Manager –Systems 1 0075 Inspection Manager 1 0073 Inspection Supervisor 3, 4 0049 Landscape Maint Supervisor 3, 4 0572 Liability Claims Coordinator 6 0030 Maintenance Operations Mgr 1 0032 Marine Safety Division Chief 1 0105 Marine Safety Lieutenant 3, 4 0490 Network Systems Administrator 2 0209 Permit & Plan Check Supervisor 3, 4 0453 Personnel Analyst 3, 6 0060 Personnel Analyst Principal 3, 6 0464 Personnel Analyst Senior 3, 6 0444 Planning Manager 1 0625 Police Admin Div Srvcs Manager 1 0594 Police Administrative Svcs Mgr 1 0233 Police Captain 1 0011 Police Chief 1 0022 Police Communications Manager 3, 4 0234 Police Lieutenant 3, 4 0094 Police Records Administrator 3, 4 0096 Principal Civil Engineer 3, 4 0072 Principal Electrical Inspector 3, 4 0076 Principal Inspector Plb/Mech 3, 4 0482 Principal Librarian 3 0579 Project Manager 3 0839 Real Estate & Project Manager 2, 5 0054 Risk Manager 1 0519 Safety/Loss Prevention Analyst 3, 6 0110 Senior Accountant 3 0069 Senior Civil Engineer 2, 4 0484 Senior Deputy City Attorney 2 329 3 0868 Senior Finance Analyst 3 0036 Senior Planner 2, 4 0579 Senior Risk Management Analyst 3,6 0575 Senior Supv Cultural Affairs 3, 4 0578 Senior Supv Human Services 3, 4 0034 Senior Traffic Engineer 2, 4 0333 Senior Trial Counsel 2 0457 Special Events Coordinator 2 0488 Street Maint Supervisor 3, 4 0133 Supv Parking/Camping Facility 3, 4 0033 Transportation Manager 1 0051 Tree Maintenance Supervisor 3, 4 0483 Utilities Manager 1 0487 Wastewater Supervisor 3, 4 0052 Water Distribution Supervisor 3, 4 0053 Water Production Supervisor 3, 4 0056 Water Quality Supervisor 3, 4 BOARDS, COMMISSIONS, AND COMMITTEES City Council 1 Visit Huntington Beach 1 Design Review Board 1 Planning Commission 1 Citizens Infrastructure Board 1 Finance Commission 1 CONSULTANTS Consultants shall be included in the list of designated officials and employees in Disclosure Category 1 and shall disclose such interests subject to the following limitation: The City Manager may determine in writing that a particular consultant, although a “designated position,” is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described above. Such written determination shall include a description of Consultant’s duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager’s determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 City of Huntington Beach File #:18-409 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Kellee Fritzal, Deputy Director of Economic Development Subject: Adopt Resolution No. 2018-59 declaring the City Council’s intention to renew the Huntington Beach Tourism Business Improvement District (HBTBID); fix the time and place of a public meeting; and, call a public hearing Statement of Issue: At the September 4, 2018,City Council Study Session, Visit Huntington Beach presented the recommendation of potential modifications to the current Tourism Business Improvement District (TBID). The modifications include the early termination of the Grant Agreement for Public Relations Services, which is 10% of the City’s Transient Occupancy Tax. In addition, the HBTBID assessment would increase from 3% to 4%, as approved by the assessed lodging businesses. Based upon the Study Session, if the City Council adopts Resolution No. 2018-59 (attached), it will hold a public meeting on November 19, 2018,and a Public Hearing on December 17, 2018,with the recommendation to modify the existing HBTBID’s management district plan, renew the HBTBID,and the levy of assessments on lodging businesses. Financial Impact: There is no fiscal impact with this Resolution. Recommended Action: Adopt Resolution No. 2018-59 “A Resolution of the City Council of the City of Huntington Beach declaring its intention to renew the Huntington Beach Tourism Business Improvement District (HBTBID) and fixing the time and place of a public meeting and a public hearing thereon and giving notice thereof.” Alternative Action(s): Do not approve the Resolution and direct staff as necessary. City of Huntington Beach Printed on 10/10/2018Page 1 of 3 powered by Legistar™359 File #:18-409 MEETING DATE:10/15/2018 Analysis: In California, TBIDs are primarily formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a special benefit assessment district to raise funds within a specific geographic area. The key difference between TBIDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the TBID. The HBTBID funds the marketing and sales promotion efforts for Huntington Beach’s overall destination brand awareness including Hungtington Beach lodging businesses. This approach has been used successfully in other destination areas throughout the state to improve tourism and drive additional room nights to assessed lodging businesses. The early renewed HBTBID includes all lodging businesses located within the boundaries of the the City of Huntington Beach. The City of Huntington Beach created the HBTBID on September 15, 2014 by resolution for a five- year (5) term which ends on September 30, 2019. The VHB is proposing to renew the HBTBID in order to continue a revenue source devoted to marketing Huntington Beach as a leisure, meetings and events destination. The proposal is to increase the current 3% assessment to a 4% assessment. In addition to the HBTBID, the City and Visit Huntington Beach entered into a separate agreement, in which 1% of the 10% of the City’s Transient Occupancy Tax rate is retained by VHB for public relations services. The Agreement will expire on September 30, 2021. Visit Huntington Beach is proposing to terminate the Agreement as part of the renewal of the HBTBID. This action would result in the City retaining the 1% (approximately $1 million), which would be additional revenue to the General Fund. MANAGEMENT DISTRICT PLAN The Management District Plan (Attachment 2) includes the proposed boundary of the HBTBID, a service plan and budget and a proposed means of governance. The HBTBID will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the the City of Huntington Beach. The renewed HBTBID will have a nine (9) year and five (5) month term, beginning February 1, 2019 through June 30, 2028. The assessment will be implemented beginning February 1, 2019. Once per year beginning on the anniversary of HBTBID renewal there is a thirty (30) day period in which business owners paying fifty percent (50%) or more of the assessment may protest and begin proceedings to terminate the HBTBID. The City will be responsible for collecting the assessment on a monthly basis from each lodging business located in the HBTBID boundaries. The City shall forward the assessments to Visit Huntington Beach, which will have the responsibility of managing HBTBID programs as provided in this Management District Plan. The City shall be paid a fee equal to one percent (1%) of the amount of assessment collected to cover its costs of collection and administration. HBTBID RENEWAL PROCESS To commence the renewal process, the City must receive a written petition, signed by the busienss owners in the renewed district who will pay more than fifty percent (50%) of the assessments City of Huntington Beach Printed on 10/10/2018Page 2 of 3 powered by Legistar™360 File #:18-409 MEETING DATE:10/15/2018 proposed to be levied. If the Resolution is approved, the City is required to mail written notice to the owners of all businesses proposed to be within the HBTBID. Mailing the notice begins a mandatory forty-five (45) day period in which owners may protest HBTBID renewal. The City Council is requried to hold a Public Meeting proposed for November 19, 2018 to allow public testimony on the renewal of the HBTBID and levy of assessments. No Council action required at the meeting. On December 17, 2018, a Public Hearing would be conducted by the City Council. If written protests are received from the owners of businesses in the renewed HBTBID which will pay more than fifty percent (50%) of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than fifty percent (50%), no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of one (1) year from the date of the finding of a majority protest. As a result, no action can be taken by the Council . At the conclusion of the public hearing to renew the HBTBID, the Council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. If the Council, following the public hearing, decides to establish the renewed HBTBID, the Council shall adopt a resolution of formation. On January 21, 2019, the City Council will be asked to modify the current HBTBID’s management district plan to change the term to end on January 31, 2019, terminate the Grant Agreement for TOT , and enter into a new Memorandum of Understanding. Environmental Status: Not Applicable. Strategic Plan Goal: Strengthen economic and financial sustainability Attachment(s): 1. Adopt Resolution No. 2018-59, “A Resolution of the City Council of the City of Huntington Beach declaring its intention to renew the Huntington Beach Tourism Business Improvement D istrict (HBTBID) and fixing the time and place of a public meeting and a public hearing thereon and giving notice thereof.” 2. Management District Plan City of Huntington Beach Printed on 10/10/2018Page 3 of 3 powered by Legistar™361 RESOLUTION NO. 2018-59 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING ITS INTENTION TO RENEW THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT (HBTBID) AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF WHEREAS, the City of Huntington Beach created the HBTBID on September 15, 2014 by Resolution No . 2014-72; and WHEREAS, the HBTBID was created for a five (5) year term which ends on September 30, 2019;and WHEREAS, the Property and Business Improvement Law of 1994 , Streets and Highways Code § 36600 et seq., authorizes the City to renew business improvement districts for the purposes of promoting tourism; and WHEREAS, Visit Huntington Beach, lodging business owners, and representatives from the City of Huntington Beach have met to consider the renewal of the HBTBID; and WHEREAS, Visit Huntington Beach has drafted a Management District Plan (Plan) which sets fo1th the proposed boundary of the HBTBID, a service plan and budget, and a proposed means of governance; and WHEREAS, lodging business who will pay more than fifty percent (50%) of the assessment under the HBTBID have petitioned the City Council to renew the HBTBID. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT: 1. The recitals set forth herein are true and correct. 2. The City Council finds that lodging businesses that will pay more than fifty percent (50%) of the assessment proposed in the Plan have signed and submitted petitions in supp01t of the renewal of the HBTBID. The City Council accepts the petitions and adopts this Resolution oflntention to renew the HBTBID and to levy an assessment on ce1tain lodging businesses within the HBTBID boundaries in accordance with the Prope1ty and Business Improvement District Law of 1994. 3. The City Council finds that the Plan satisfies all requirements of Streets and Highways Code § 36622. 4. The City Council declares its intention to renew the HBTBID and to levy and collect assessments on lodging businesses within the HBTBID boundaries pursuant to the Property and Business Improvement District Law of 1994. 18-6918 /188755 362 5. The HBTBID shall include all lodging businesses located within the boundaries of the City of Huntington Beach, as shown in the map attached as Exhibit A. 6. The name of the district shall be Huntington Beach Tourism Business Improvement District (HBTBID). 7. The annual assessment rate is four percent ( 4 % ) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thitty (30) consecutive days; stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. 8. The assessments levied for the HBTBID shall be applied toward tourism enhancement programs to market assessed lodging businesses in Huntington Beach as tourist, meeting, and event destinations, as described in the Plan. Funds remaining at the end of any year may be used in subsequent years in which HBTBID assessments are levied as long as they are used consistent with the requirement s of this resolution and the Plan. 9. The renewed HBTBID will have a nine (9) year and five (5) month term , beginning February 1, 2019 through June 30, 2028 , unless renewed pursuant to Streets and Highways Code§ 36660. 10. Bonds shall not be issued. 11 . The time and place for the public meeting to hear testimony on establishing the HBTBID and levying assessments are set for November 19, 2018 at 6 :00 PM, or as soon thereafter as the matter may be heard, at the City Council Chambers located at 2000 Main Street, Huntington Beach, CA 92648. 12 . The time and place for the public hearing to establish the HBTBID and the levy of assessments are set for December 17, 2018 at 6:00 PM, or as soon thereafter as the matter may be heard, at the City Council Chambers located at 2000 Main Street, Huntington Beach, CA 92648. The City Clerk is directed to provide written notice to the lodging businesses subject to assessment of the date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Code§ 36623 , no later than November 1, 2018. 13. At the public meeting and hearing the testimony of all interested persons for or against the renewal of the HBTBID may be received. If at the conclusion of the public hearing, there are of record written protests by the owners of the lodging businesses within the renewed HBTBID that will pay more than fifty percent (50%) of the estimated total assessment of the entire HBTBID, no further proceedings to renew the HBTBID shall occur for a period of one (1) year. 14 . The complete Plan is on file with the City Clerk and may be reviewed upon request. 15. This resolution shall take effect immediately upon its adoption by the City Council. 363 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of , 2018 Mayor REVIEWED AND APPROVED: INITIATED AND APPROVED: City Manager De{;~~ Development APPROVED AS TO FORM: Al~\) r~ 1M. City Attorney d" 18-6918/188755 364 GARDE GROVE FREEW EXHIBIT A District Boundaries 0 Q'. <l'. > w _J ::::> 0 co ::c: 0 <l'. w co PAC I F I C OCEAN y 365 2019-2028 HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. September 28, 2018 366 CONTENTS I. OVERVIEW ........................................................................................................................................ 2 II. BACKGROUND ................................................................................................................................ 3 III. IMPETUS TO RENEW THE HBTBID ........................................................................................ 4 IV. ACCOMPLISHMENTS ..................................................................................................................... 6 V. BOUNDARY ....................................................................................................................................... 9 VI. BUDGET AND SERVICES ........................................................................................................... 10 A. Annual Service Plan .......................................................................................................... 10 B. Annual Budget .................................................................................................................. 13 C. California Constitutional Compliance .............................................................................. 13 D. Assessment ........................................................................................................................ 14 E. Penalties and Interest ........................................................................................................ 15 F. Time and Manner for Collecting Assessments ................................................................. 15 VII. GOVERNANCE ............................................................................................................................... 16 A. Owners’ Association ......................................................................................................... 16 B. Brown Act and California Public Records Act Compliance ............................................ 16 C. Annual Report ................................................................................................................... 16 APPENDIX 1 – LAW .................................................................................................................................... 17 APPENDIX 2 – ASSESSED BUSINESSES ............................................................................................. 28 Prepared by Civitas (800)999-7781 www.civitasadvisors.com 367 I. OVERVIEW Developed by Visit Huntington Beach (VHB) and Huntington Beach lodging businesses, the renewed Huntington Beach Tourism Business Improvement District (HBTBID) is an assessment district that will continue to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed lodging businesses. The HBTBID was formed in 2014 for a five (5) year term; assessed lodging businesses now wish to renew it for an additional nine (9) years and five (5) months. Location: The renewed HBTBID includes all lodging businesses located within the boundaries of the City of Huntington Beach, as shown on the map in Section V. Services: The HBTBID is designed to provide specific benefits directly to payors by increasing room night sales. Tourism enhancement programs will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales. Budget: The total HBTBID annual budget for each full year of operation is anticipated to be approximately $5,000,000. The initial “year” of operation will be a partial year consisting of five (5) months, for which the anticipated budget is $2,083,333. Cost: The annual assessment rate is four percent (4%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the HBTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business. Duration: The renewed HBTBID will have a nine (9) year and five (5) month life, beginning February 1, 2019 through June 30, 2028. Once per year, beginning on the anniversary of HBTBID renewal, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on HBTBID termination. The proposed time for implementation and completion of this Management District Plan is February 1, 2019 through June 30, 2028. Management: Visit Huntington Beach will continue to serve as the HBTBID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council. 368 II. BACKGROUND TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood, California in 1989. Since then, over one hundred California destinations have followed suit. In recent years, other states have begun adopting the California model – Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TBIDs without a state law. California’s TBIDs collect- ively raise over $250 million annually for local destination marketing. With compet- itors raising their budgets, and increasing rivalry for visitor dollars, it is important that Huntington Beach lodging businesses continue to invest in stable, lodging- specific marketing programs. TBIDs utilize the efficiencies of private sector operation in the market-based promotion of tourism districts. TBIDs allow lodging business owners to organize their efforts to increase room night sales. Lodging business owners within the TBID pay an assessment and those funds are used to provide services that increase room night sales. In California, TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TBIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district. There are many benefits to TBIDs: • Funds must be spent on services and improvements that provide a specific benefit only to those who pay; • Funds cannot be diverted to general government use; • TBIDs are customized to fit the needs of payors in each destination; • TBIDs allow for a wide range of services; • TBIDs are designed, created and governed by those who will pay the assessment; and • TBIDs provide a stable, long-term funding source for tourism promotion. 1 2 4 6 9 12 19 24 28 31 37 45 60 63 72 80 88 95 98 101 101 0 20 40 60 80 100 198919952000200120022003200420052006200720082009201020112012201320142015201620172018Number of Districts Operating in California 369 III. IMPETUS TO RENEW THE HBTBID The existing HBTBID was established in 2014 with an assessment rate of three percent (3%) on overnight lodging revenues in Huntington Beach. While the HBTBID has been successful, there is still opportunity for growth in overnight visitation and room night sales revenue, especially during non-peak periods. Currently, the City of Huntington Beach provides VHB with funding from Transient Occupancy Tax revenues, equal to one percent (1%) of overnight lodging revenues in Huntington Beach, pursuant to an MOU between the City and VHB. The City and VHB intend to terminate the MOU and enter a new. It is the intent of VHB to develop a long-term agreement with the City that includes the City retaining 100% of all TOT revenues. The assessment rate in the renewed HBTBID will be increased to four percent (4%) to ensure that tourism promotion funding is not decreased during the term of the renewed HBTBID. There are several reasons to renew the HBTBID. The most compelling reasons are: 1. The Need to Maintain/Increase Competitiveness, Occupancy and Overall Visitation As the number of overnight accommodations grow in Orange County, as well as in competitive California cities and counties, it is crucial that Huntington Beach maintains and increases its competitiveness, occupancy levels and visitation from targeted markets. These goals can be accomplished by increasing the HBTBID assessment from three percent (3%) to four percent (4%), which will continue to generate approximately $5,000,00 in dedicated HBTBID funding for improvements and activities to increase room rentals for assessed lodging businesses located within the renewed HBTBID. Additional HBTBID funds will be used to implement new Tourism Enhancement Programs above and beyond those that are currently provided with the existing funding level: 1. Increase funding for destination sales and marketing programs, which wi ll target key visitor markets, including markets that generate substantial overnight visitation to Huntington Beach throughout the year, especially during non-peak seasons; and 2. Increase funding for the innovative HBTBID Visitor Services Enhancements program that adds new and/or repurposed projects to Huntington Beach’s current brand offerings, which will increase year around overnight visitation by improving the overall HBTBID brand experience, the number of reasons for visitors to stay longer, and offer more reasons for visitors to return more often to Huntington Beach. 2. An Opportunity for Increasing City Revenues As an indirect result of the renewed HBTBID, it is expected that as occupancy rates and overall visitation numbers increase, so too will the City’s Transient Occupancy Tax revenue. Greater occupancy rates will also generate an indirect increase in sales tax revenues from tourist spending. 3. Stable Funding for Destination Marketing The current HBTBID was formed pursuant to the Property and Business Improvement District Law of 1994. The law allows a district to be renewed for up to ten (10) years without the need for City Council’s annual approval to continue levying the assessment. Stakeholders have elected to renew the HBTBID for a nine (9) year five (5) month term. The renewed term will provide stable funding for destination marketing, visitor services enhancements, and management through June 30, 2028 and 370 align the HBTBID’s fiscal year to the City’s fiscal year. This may provide stable funding for destination marketing, visitor services enhancements, and management. Many of Huntington Beach’s competitors are at or exceeding the level of funding available for destination marketing in Huntington Beach. The table below lists the funding raised by tourism improvement districts for several other competitors. Location Amount Raised Assessment Rate TOT Rate Total Guest Charge Costa Mesa $3,350,000 3% room revenue 8% 11% Laguna Beach $2,040,000 2% room revenue 12% 14% Irvine $3,100,000 2% room revenue 8% 10% Anaheim $19,830,000 2% room revenue 15% 17% Long Beach $6,000,000 3% room revenue 12% 15% Torrance $1,090,000 1% room revenue 11% 12% Santa Monica $4,130,000 $1.50 - $5.25 per night 14% 14% + $5.25 Oceanside $690,000 1.5% room revenue 10% 11.5% Santa Barbara $3,770,000 $0.75 - $4.00 per night 14% 14% + $4.00 Newport Beach $8,430,000 3% room revenue 10% 13% *As of September 2018 371 IV. ACCOMPLISHMENTS Assessed Lodging Business Revenue Assessed lodging businesses revenue has increased 45.6% since the HBTBID assessment was increased from 2% to 3% in 2014. Increases in assessed lodging business revenue by fiscal year are listed below: • FY 14-15 9.2% • FY 15-16 9.0% • FY 16-17 13.3% • FY 17-18 15.1% (Oct-Jul) Marketing & Public Relations • Produced the destination’s most successful PR activation in 2015-16, garnering national and international media exposure for the brand and numerous “best in the travel industry “awards. Huntington Beach’s “Epic Big Board Ride” campaign resulted in: o Two GUINNESS WORLD RECORDS ™ for “Largest surfboard” and “Most people riding a surfboard at once.” o Total media coverage: • 2,017 total placements • 500 million impressions • $9.6 million in immediate earned media value • 1,306 broadcast segments • Conducted comprehensive brand perception research study in leisure and group markets in 2015-16, launched updated Surf City USA brand logo, leisure “Wonder” campaign and group “HB Collection” campaign in 2016-17 across all marketing channels – digital, print, broadcast, display, collateral, and visitor information services. • Re-designed a national award-winning, mobile centric responsive website in 2016-17, social media integration and expansion initiative and transitioned entire media marketing strategy to a robust digital based destination marketing program. The result? Qualified visitor user sessions increased 72% from 643,365 in 2014-15 to 1,112,846 in 2017-18, with soaring hotel overnight stay market demand and revenue increases (see above hotel data). • Granted highly valued official verification on three major social media platforms (Facebook, Twitter, Instagram). • Began covering events and key destination locations live on Facebook, Instagram and Twitter, adding paid social media posting in 2017-18. Results include progressive increases in followers and engagement from 24% – 51% across these three key social media channels annually. • Produced video content promoting the destination that is being used by assessed lodging businesses to help their sales initiatives. • Launched Huntington Beach Welcomes You to Dream and Do campaign that includes videos and print collateral, as well as video promotion with Matador Media to reach 13 million adventure millennial travelers. • Hosted over 300 journalists from top domestic and international markets from 2014-15 to 2017-18. • Generated over $27 million in earned media value and 620 million impressions across top travel publications (online, print and broadcast) from 2014-15 to present. • Received numerous national and international travel industry marketing and communications awards from the US Travel Association, Hospitality Sales and Marketing Association International, Visit California and the National Web Marketing Association. 372 Destination Product Development • Built the world’s largest surfboard and an activation event that sparked $10 million in global media value, as well as produced a lasting community attraction, asset and point of pride. • Led community input sessions, which helped VHB in designing a million dollar plus communitywide comprehensive wayfinding system. The signs are currently being installed throughout Huntington Beach. • Funded capital improvements at HB International Surfing Museum. Sales FY 2014-15 to present: • Conference/Meeting leads processed by VHB: 1,832 • Definite contracted/booked room nights by VHB: 111,270 • Economic Impact of Groups to Huntington Beach: $111.39 million • Highlighted Group Sales Programs o Launch of HB Collection – promoting multiple hotels in Huntington Beach with their walkability aspect to groups that would traditional only consider a convention center. o 2016 – Porsche Cars North America is largest group ever booked into Huntington Beach with 3,700 contracted room nights at assessed businesses and Economic Impact of $4.1 million. o 2018 – Porsche Cars North America in negotiations to hold multiple programs in Huntington Beach at assessed businesses for a total of 4,100 room nights in 2019 Service • 2016 Destinations International WOW Award for Surf City USA Ambassador Program. • 2018 Orange County Certified Tourism Ambassador (CTA) Company of the Year. • Launched Nighttime Ambassador Program to aid the Huntington Beach Police Department on busy evenings in downtown during Spring Break and summer. • Took over administration of Daytime Ambassador Program to provide 7 days a week roving hospitality services to guests in downtown Huntington Beach. • Expanded Surf City USA Shuttle from events only to include summer weekends. Summer weekend Coastal Loop shuttle passenger count by year: o 2015: 548 passengers o 2016: 955 passengers o 2017: 639 passengers o 2018: 1,273 passengers (with one more weekend to go) • Since 2014, hosted 10 Partner Information Meetings each year for a total of 140 businesses. • In 2017, launched complimentary Event Information Booth service to provide visitor information to attendees at 20 events, including the Fastpitch Softball Tournament in Central Park, Surf City USA Marathon, Airshow, and AVP Championships. In 2017, launched the Surf City USA Volunteer Program to help staff Event Information Booths. Advocacy & Community Support • In 2017, launched the summer PCH Cleanup. This roadside cleanup focuses on the gateway to Huntington Beach from the south, between Brookhurst and Beach Blvd along PCH. o 2017 & 2018: 268 volunteers picked up 1,430 pounds of trash. • Developed guidelines for new Community Events Sponsorship Initiative to launch 2018-19. 373 Administration • Implemented the CRM (Customer Relationship Management) system for better tracking of assessed business data. • Annually send at least one VHB employee to the Robert Mayer Huntington Beach Leadership Academy program. • Implemented Blackbaud software for improved accounting, budgeting, and transparency. • Established a Reserve Policy consistent with industry practices. • Unqualified audits each year from 2014-15 to present. 374 V. BOUNDARY The HBTBID will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Huntington Beach. Lodging business means: any structure, or any portion of any structure which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, at a fixed location, or other similar structure or portion thereof. The boundary, as shown in the map below, currently includes twenty-three (23) lodging businesses. A complete listing of lodging businesses within the renewed HBTBID can be found in Appendix 2. 375 VI. BUDGET AND SERVICES A. Annual Service Plan Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the re asonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the HBTBID funds are tourism enhancement programs available only to assessed lodging businesses. A service plan budget has been developed to deliver services that benefit the assessed lodging businesses. A detailed annual budget will be developed and approved by VHB. The table below illustrates the initial annual budget allocations. The total initial full year budget is $5,000,000. Fiscal year 2019 covers the five (5) month period from February to June 2019, resulting in a lower budget for the first five (5) months of HBTBID operation. Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the City and the VHB Board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. Annually, VHB will meet with the City Manager and designated staff to review accomplishments and funding priorities for the following year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the HBTBID, any and all assessment funds may be used for the costs of defending the HBTBID. Each budget category includes all costs related to providing that service, in accordance with Generally Accepted Accounting Procedures (GAAP). For example, the Tourism Enhancement Programs budget includes the cost of staff time dedicated to overseeing and implementing the tourism enhancement programs. Staff time dedicated purely to administrative tasks is allocated to the administration portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories, as appropriate in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by the VHB on an as-needed basis. Tourism Enhancement Programs, $3,600,000 , 72% Administration, $950,000 , 19% Contingency / Reserve, $400,000 , 8% City Admin. Fee, $50,000 , 1% Initial Annual Budget -$5,000,000 376 Tourism Enhancement Programs The Tourism Enhancement Program will promote and provide activities and improvements to assessed lodging businesses through the implementation of two sub-programs: sales and marketing and visitor services enhancements. A summary of each sub-program is provided below: Sales & Marketing The sales and marketing program will promote assessed lodging businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting the Huntington Beach destination brand as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and may include the following activities which are designed to drive overnight visitation and room sales to assessed lodging businesses: • Increased advertising and promotional programs in print, online, social media, and television targeted at potential visitors to drive overnight visitation and room sales; • Website enhancements and updates; • Strategic advertising and marketing agency support; • Contract with third party marketing and sales partners; • Public relations, sales blitzes, missions, and calls; • Familiarization tours targeting key decision makers; • Preparation and production of collateral promotional materials such as visitor guides, brochures, flyers, and maps; • Video development for destination experiences and visuals; • Attendance at professional industry conferences and affiliation events; • Lead generation activities designed to attract tourists, leisure visitors, and group events to Huntington Beach; • Partnerships with targeted special events that attract overnight visitors; and • Cooperation with local agencies and film commission programs that attract overnight visitors. Visitor Services Enhancements The Visitor Services Enhancements (VSE) program will provide funding for programs and initiatives based on criteria to be developed by VHB and reviewed and approved with the City. The focus for the VSE program will be on the entire destination brand footprint to ensure a consistent brand experience throughout Huntington Beach. VSE may include the following programs which are designed to drive overnight visitation and room sales to assessed lodging businesses: • A long-term ambassador and/or security program with trained staff that supplement the current level of police presence to improve the overall destination experience and encourage overnight visitation or a fulltime dedicated police officer to ensure tourism safety; • Welcome center and kiosk improvements including new technology-driven visitor information enhancements; • Pedestrian improvements linking the hotels and Downtown; • Brand-centric visitor services training program for both public and private sector staff; and • A Trolley or transportation program connecting hotels to downtown Huntington Beach, The Pier, or other attractions 377 Surf City USA Destination Product Development The Destination Product Development (DPD) program will provide funding to assist in the building or financing of well-vetted capital improvement projects which attract overnight visitors to assessed businesses. The program costs may be allocated up to ten percent (10.0%) of the annual budget. Working collaboratively with the City Manager, VHB will develop specific DPD funding criteria and an award process. The City working with VHB, shall have equal input to make recommendations to the VHB Board for final project approval. Both the funding and awarding criteria will be developed in collaboration with the City Manager’s office and other key community stakeholder groups. These DPD projects may include: • Comprehensive and integrated wayfinding signage system enhancements including signage to parking decks and lots; • Art and cultural projects, to attract overnight visitors; • Gateway enhancements including Pacific Coast Highway, to attract overnight visitors; • Enhancements to wetlands experiences which attract overnight visitors, such as the Bolsa Chica Ecological Reserve and the Huntington Beach Wetlands (between Newland Street and the Santa Ana River) that expose visitors to the value of the vital ecosystems; • Improvements to existing parks and sports facilities utilized by overnight visitors; • Safe and fun entertainment complex for young teens and adults utilized by overnight visitors; • Live music venue which attracts overnight visitors; • Infrastructure improvements that enhance Huntington Beach’s competitive position to attract desirable special events year-round and attract overnight visitors; • Partnership with the City on mutually agreed upon projects that promote overnight visitor stays to Huntington Beach. Examples may include: Huntington Beach International Surfing Museum, and summer beach restroom porter cleaning assistance; • Destination product development research and master planning; • Infrastructure improvements that enhance Huntington Beach’s competitive position to attract desirable special events year-round and attract overnight visitors; and • Improvements to the City’s downtown parking deck that make the overnight visitor experience more desirable. Administration The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy, and other general administrative costs such as insurance, legal, and accounting fees. Contingency/Reserve The budget includes a contingency line item to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration, or renewal costs at the discretion of the VHB Board. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the VHB Board. City Administration Fee The City of Huntington Beach shall retain a fee equal to one percent (1%) of the amount of assessment collected to cover its costs of collection and administration. 378 B. Annual Budget The total nine (9) year and five (5) month improvement and service plan budget is projected at approximately $5,000,000 annually, or $47,083,333 cumulatively through 2028. This amount may fluctuate as sales and revenue increase or decrease at assessed lodging businesses, but is not expected to change significantly over the term. C. California Constitutional Compliance The HBTBID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the HBTBID assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the HBTBID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services. 1. Specific Benefit Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The activities and improvements in this Plan are designed to provide targeted benefits directly to assessed lodging businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific lodging businesses within the HBTBID. The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the HBTBID, and are narrowly tailored. HBTBID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in HBTBID programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. The assessment imposed by this HBTBID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the HBTBID assessment, with tourism enhancement programs promoting lodging businesses paying the HBTBID assessment. The tourism enhancement programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the tourism enhancement programs that specifically benefit the assessed lodging businesses, the administration and contingency/reserve programs also provide the specific benefit of increased room night sales to the assessed lodging businesses. Although the HBTBID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230 2 Cal. Const. art XIII C § 1(e)(1) 3 Government Code § 53758(a) 379 2. Specific Government Service The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.”4 The legislature has recognized that marketing and promotions services like those to be provided by the HBTBID are government services within the meaning of Proposition 265. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6 3. Reasonable Cost HBTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the VHB, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from HBTBID-funded activities, be featured in lodging-specific advertising campaigns, and benefit from other HBTBID-funded programs. Non-assessed lodging businesses will not receive these, nor any other, HBTBID-funded services and benefits. The HBTBID-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-HBTBID funds. HBTBID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses. D. Assessment The annual assessment rate is four percent (4%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. The term “gross room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in a lodging business valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes. The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the HBTBID assessment is identified separately it shall be disclosed 4 Cal. Const. art XIII C § 1(e)(2) 5 Government Code § 53758(b) 6 Government Code § 53758(b) 380 as the “HBTBID Assessment.” As an alternative, the disclosure may include the amount of the HBTBID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes. Bonds shall not be issued. E. Penalties and Interest The HBTBID shall reimburse the City of Huntington Beach for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent HBTBID assessment are sought to be recovered in the same collection action by the City, the HBTBID shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying: 1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment. 2. Continued Delinquency: Any lodging business that fails to meet any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) penalty first imposed. 3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subparagraphs 1 and 2 of this subsection E. 4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of one-half of one percent (0.5%) per month, or fraction thereof, on the amount of the assessment, exclusive of penalties, form the date on which the remittance first became delinquent until paid. 5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall become a part of the assessment herein required to be paid. F. Time and Manner for Collecting Assessments The HBTBID assessment will be implemented beginning February 1, 2019 and will continue for nine (9) years and five (5) months through June 30, 2028. The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to VHB. 381 VII. GOVERNANCE A. Owners’ Association The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the HBTBID as defined in Streets and Highways Code §36612. The City Council has determined that Visit Huntington Beach will continue to serve as the Owners’ Association for the HBTBID, upon execution of a renewed contract between the City and VHB. B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the VHB board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. C. Annual Report The VHB shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include: • Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district. • The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year. • The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. • The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. 382 APPENDIX 1 – LAW *** THIS DOCUMENT IS CURRENT THROUGH THE 2018 SUPPLEMENT *** (ALL 2017 LEGISLATION) STREETS AND HIGHWAYS CODE DIVISION 18. PARKING PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions ARTICLE 1. Declarations 36600. Citation of part This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following: (a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements. (d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits: (1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied. (2) Job creation. (3) Business attraction. (4) Business retention. (5) Economic growth. (6) New investments. (f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts. (1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special benefits to exist as a separate and distinct category from general benefits, the 383 incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined. 36602. Purpose of part The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)). 36603.5. Part prevails over conflicting provisions Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part. 36604. Severability This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes. ARTICLE 2. Definitions 36606. “Activities” “Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district: (a) Promotion of public events. (b) Furnishing of music in any public place. (c) Promotion of tourism within the district. (d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment” “Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district. 36607. “Business” 384 “Business” means all types of businesses and includes financial institutions and professions. 36608. “City” “City” means a city, county, city and county, or an agency or entity created pursuant to Artic le 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council” “City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk” “Clerk” means the clerk of the legislative body. 36609.5. “General benefit” “General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5. 36610. “Improvement” “Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following: (a) Parking facilities. (b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms. (d) Lighting and heating facilities. (e) Decorations. (f) Parks. (g) Fountains. (h) Planting areas. (i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls. (l) Rehabilitation or removal of existing structures. 36611. “Management district plan”; “Plan” “Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association” “Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Co de), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property” “Property” means real property situated within a district. 385 36614.5. “Property and business improvement district”; “District” “Property and business improvement district,” or “dist rict,” means a property and business improvement district established pursuant to this part. 36614.6. “Property-based assessment” “Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district” “Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner” “Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by t he city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit” “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value. 36616. “Tenant” “Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner. ARTICLE 3. Prior Law 36617. Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part. CHAPTER 2. Establishment 36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board 386 of supervisors of that county. A city may not fo rm a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same propert y or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following: (1) A map showing the boundaries of the district. (2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request. (c) The resolution of intention described in subdivision (a) shall contain all of the following: (1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623. 36622. Contents of management district plan The management district plan shall include, but is not limited to, all of the following: (a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b) The name of the proposed district. (c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision. 387 (e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements. (g) The time and manner of collecting the assessments. (h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district. (m) In a property-based district, the total amount of general benefits, if any. (n) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment (a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that noti ce shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evi dence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 388 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hea ring procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624. Changes to proposed assessments At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance , and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed prop erty and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation (a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following: (1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district. (4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received. (5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be fu nded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolutio n of intention, as modified by the city council at the hearing concerning establishment of the district. Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefi t to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit. (8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district. (b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each o f the fiscal years referred to in the management district plan. 389 36626. Resolution establishing district If the city council, following the public hearing, desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment, t he city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in Section 36625. 36627. Notice and assessment diagram Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners The city council may levy assessments on businesses or on property owners, or a combina tion of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property - based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part. CHAPTER 3. Assessments 36631. Time and manner of collection of assessments; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner s et forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties. 36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property (a) The assessments levied on real property pursuant to this part shall be levied on the basis o f the estimated benefit to the real property within the property and business improvement district. The city council may 390 classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part. (c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part. 36633. Time for contesting validity of assessment The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursua nt to Section 36626. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. 36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention (a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following: (1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing. (2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification. (b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. 36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the p rovisions of Section 36627. CHAPTER 3.5. Financing 36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) 391 or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation ad opted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years. (c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt. CHAPTER 4. Governance 36650. Report by owners’ association; Approval or modification by city council (a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used. (b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information: (1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year. (4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year. (5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (6) The estimated amount of any contributions to be mad e from sources other than assessments levied pursuant to this part. (c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be m ade pursuant to Sections 36635 and 36636. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. Designation of owners’ association to provide improvements, maintenance, and activities The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services. CHAPTER 5. Renewal 36660. Renewal of district; Transfer or refund of remaining revenues; District term limit 392 (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the distric t is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district. CHAPTER 6. Disestablishment 36670. Circumstances permitting disestablishment of district; Procedure (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances: (1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30 -day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized r epresentatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining reve nues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund. 393 APPENDIX 2 – ASSESSED BUSINESSES* Business Name Address City, State, ZIP 777 Motor Inn 16240 Pacific Coast Hwy. Huntington Beach, CA 92649 Beach Inn Motel 18112 Beach Blvd. Huntington Beach, CA 92648 Best Western Harbour Inn & Suites 16912 Pacific Coast Hwy. Sunset Beach, CA 90742 Best Western Surf City 19360 Beach Blvd. Huntington Beach, CA 92648 Comfort Suites Huntington Beach 16301 Beach Blvd. Huntington Beach, CA 92647 Extended Stay America 5050 Skylab Rd. Huntington Beach, CA 92647 Hotel Europa 7561 Center Ave. #46 Huntington Beach, CA 92647 Huntington Beach Inn 800 Pacific Coast Hwy. Huntington Beach, CA 92648 Huntington Suites 7971 Yorktown Ave. Huntington Beach, CA 92648 Huntington Surf Inn 720 Pacific Coast Hwy. Huntington Beach, CA 92648 Hyatt Regency Huntington Beach Resort and Spa 21500 Pacific Coast Hwy. Huntington Beach, CA 92648 Kimpton Shorebreak Hotel 500 Pacific Coast Hwy. Huntington Beach, CA 92648 Ocean Surf Inn & Suites 16555 Pacific Coast Hwy. Sunset Beach, CA 90742 Oceanview Motel 16196 Pacific Coast Hwy. Huntington Beach, CA 92649 Pasea Hotel & Spa 21080 Pacific Coast Hwy. Huntington Beach, CA 92648 Quality Inn & Suites Huntington Beach 17251 S. Beach Blvd. Huntington Beach, CA 92647 Springhill Suites by Marriott 7872 Edinger Ave. Huntington Beach, CA 92647 Starlight Inn 18382 Beach Blvd. Huntington Beach, CA 92648 Sun n Sands Inn 1102 Pacific Coast Hwy. Huntington Beach, CA 92648 Surf City Inn 16220 Pacific Coast Hwy. Huntington Beach, CA 92649 The Hotel Huntington Beach 7667 Center Ave. Huntington Beach, CA 92647 The Waterfront Beach Resort, a Hilton Hotel 21100 Pacific Coast Hwy. Huntington Beach, CA 92648 Travelodge Ocean Front 17205 Pacific Coast Hwy. Sunset Beach, CA 90742 *As of September 2018 394 City of Huntington Beach File #:18-415 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Robert Handy, Chief of Police Subject: Adopt Ordinance 4155 amending Chapter 10.44 of the Huntington Beach Municipal Code (HBMC) relating to oversized vehicles (Approved for introduction as amended by Supplemental Communication on October 1, 2018 - Vote: 7-0) Statement of Issue: Ordinance No. 4155 was introduced to amend Chapter 10.44 of the Huntington Beach Municipal Code to enforce parking rules related to oversized vehicles in our City. Financial Impact: There are minor costs associated with the recommended changes to the Oversized Vehicle Ordinance for new signage at City limits. These costs will be absorbed within the citywide adopted Budget for Fiscal Year 2018/19. Recommended Action: Adopt Ordinance No. 4155, “An Ordinance of the City of Huntington Beach Amending Chapter 10.44 of the Huntington Beach Municipal Code Relating to Parking - Time Limits.” Alternative Action(s): Reject the Ordinance amendment to the Huntington Beach Municipal Code and direct staff accordingly. Attachment(s): 1. Revised Ordinance 4155 2. Revised Legislative Draft - Ordinance 4155 3. 10-1-18 Staff Report and Materials City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 City of Huntington Beach File #:18-359 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Ursula Luna-Reynosa, Director of Community Development Subject: Approve Mitigated Negative Declaration No. 16-002, Resolution No. 2018-27 approving General Plan Amendment No. 16-001, and Ordinance No. 4161 approving Zoning Map Amendment No. 16-002 (Sea Dance Residential Development - 14422 Hammon Lane) Statement of Issue: Transmitted for your consideration is a request by TRI Pointe Homes to amend the land use designations to Low Density Residential and Open Space - Park at the former Franklin School site. The Planning Commission and staff recommend approval of the request. Financial Impact: As approved by the Planning Commission via separate action on Tentative Tract Map No. 18147 and Conditional Use Permit No. 16-031, a two hundred fifty thousand dollar ($250,000) contribution shall be submitted to the Public Works Department for deposit into Fund 241 prior to the issuance of building permits. The funds will be retained until applied to the costs of improvements to the Navy railroad right-of-way or other park and recreation facilities in the vicinity. Recommended Action: PLANNING COMMISSION AND STAFF RECOMMENDATION: A) Approve Mitigated Negative Declaration No. 16-002 with findings for approval (Attachment No.1); and, B) Approve General Plan Amendment No. 16-001 by adopting City Council Resolution No. 2018- 27, “A Resolution of the City Council of the City of Huntington Beach Approving General Plan Amendment No. 2016-001 (Attachment No. 2);” and, C) Approve Zoning Map Amendment No. 16-002 with findings for approval and approve for introduction Ordinance No. 4161, “An Ordinance of the City of Huntington Beach Amending District Map 9 (Sectional Map 9-5-11) of the Huntington Beach Zoning and Subdivision Ordinance to Rezone the Real Property Located at 14422 Hammon Lane From Public - Semipublic (PS) to Residential Low City of Huntington Beach Printed on 10/10/2018Page 1 of 7 powered by Legistar™427 File #:18-359 MEETING DATE:10/15/2018 Density (RL) and Open Space - Park and Recreation (OS - PR) Zoning Map Amendment No. 2016- 002 (Attachment No. 3). Alternative Action(s): The City Council may make the following alternative motion(s): 1. Continue Mitigated Negative Declaration No. 16-002, General Plan Amendment No. 16-001, and Zoning Map Amendment No. 16-002 and direct staff to return with findings for denial. 2. Continue Mitigated Negative Declaration No. 16-002, General Plan Amendment No. 16-001, and Zoning Map Amendment No. 16-002 and direct staff accordingly. Analysis: A.PROJECT PROPOSAL: Applicant: Rick Wood, TRI Pointe Homes, 5 Peters Canyon Suite 100, Irvine, CA 92606 Property Owner: Westminster School District, 14121 Cedarwood Avenue, Westminster, CA 92683 Mitigated Negative Declaration No. 16-001 represents a request to analyze the potential environmental impacts associated with the project pursuant to Chapter 240 - Environmental Review of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) and the California Environmental Quality Act (CEQA). General Plan Amendment No. 16-001 represents a request to amend the existing land use designation from Public (underlying Low Density Residential) (P(RL)) to Low Density Residential (RL) and Open Space Park (OS-PR) (Attachment No. 4). Zoning Map Amendment No. 16-002 represents a request to amend the existing zoning designation from Public-Semipublic (PS) to Low Density Residential (RL) and Open Space - Parks to be consistent with the proposed General Plan Land Use Element designation Pursuant to Chapter 247 - Amendments of the HBZSO (Attachment No. 5). The proposed MND, GPA, and ZMA are prerequisites to allow for the construction of 51 detached single-family dwelling units and a 1.30-acre dedicated park on an approximately 8.75 closed school site (Franklin School). It should be noted the project also included Tentative Tract Map No. 18147 and Conditional Use Permit No. 16-031 to permit the construction of 51 detached single-family dwelling units as a Planned Unit Development (PUD) as well as a dedicated and improved 1.30-acre park. The Planning Commission approved the development entitlements at their meeting on September 11, 2018. No appeals of the Planning Commission’s action on the development entitlements were filed within the 10-day appeal period that ended on September 21, 2018. These entitlements were conditioned so they do not become effective until the GPA and ZMA have been approved and in effect. B.BACKGROUND: The closed Franklin School site is approximately 8.75-acres and owned by Westminster City of Huntington Beach Printed on 10/10/2018Page 2 of 7 powered by Legistar™428 File #:18-359 MEETING DATE:10/15/2018 The closed Franklin School site is approximately 8.75-acres and owned by Westminster School District (WSD). The school site was constructed in 1962 during the time when the original residential subdivision in the area was developed. In 1994, the Franklin School closed due to under enrollment, but in 1996 the school property was leased to the Orange County Head Start program, which utilized the school site until 2015 when the lease was terminated. The site closed thereafter. The project was initially proposed with 53 single-family dwellings, private streets, public utilities, a water quality basin lot, and a 1.15-acre public park. The project was scheduled for a public hearing before the Planning Commission on July 10, 2018; however,the Applicant requested a postponement of the project in order to address the concerns of the surrounding neighborhood. As such, the project was revised to increase the public park dedication from 1.15-acres to 1.30-acres, which matches the size of the existing Franklin Park. The increase in park dedication resulted in the loss of two residential units (from 53 to 51 single-family dwelling units). In response to numerous comment letters from the surrounding community, the Applicant revised the park location to match the linear shape of the existing Franklin Park. The revised park design is sited along Sands Drive and the northeast corner of the subdivision has been revised to include three flag-lots. The project is designed as a PUD which allows for flexibility in development standards to encourage innovative land use development that achieves high quality site planning, design, and aesthetically pleasing environments through architecture and landscape improvements. It is a mechanism used to allow for supplemental development standards, and in exchange requires the applicant to provide mutual public benefits above and beyond the minimum code requirements of the project. Public benefits may include the creation of permanent open space, recreational facilities, infrastructure, utilities, and other public improvements. Although the variation in lot sizes creates flexibility in development, the proposed single-family homes comply with all other development standards for RL zoning district and provides a design that is compatible with the neighborhood with similar building orientations (i.e., rear yards abutting rear yards and front yards facing front yards) which maintains the overall character and design layout of the existing neighborhood. The applicant proposes the following public benefits: ·Parkland dedication and improvements: Pursuant to the Quimby Act, the Applicant is only required to dedicate 0.74 acres of land for park purposes with very minimal physical improvements. The Applicant is proposing to dedicate 1.30 acres (a surplus of 0.56 acres) and to design and install the park improvements so that the community has a new, improved park prior to the new homes being occupied. ·Allowing the public to utilize the private streets to park on for access to the dedicated park. ·Public Art: The project will include installation of public art. ·$250,000 monetary contribution toward Navy right-of-way improvements (possible open space trail adjacent to project site) or other recreational facilitates in the vicinity. City of Huntington Beach Printed on 10/10/2018Page 3 of 7 powered by Legistar™429 File #:18-359 MEETING DATE:10/15/2018 C.PLANNING COMMISSION MEETING AND RECOMMENDATION: On September 11, 2018, the Planning Commission held a public hearing on the draft MND, the GPA, ZMA, and the associated development entitlements for the Sea Dance Residential project. Staff gave a presentation and overview of the proposed project and answered questions from the Planning Commission. Rick Wood, the applicant and representative of TRI Pointe Homes provided additional history and information on the project. In total, there were six speakers that spoke at the public hearing. Most of the speakers were residents of the neighborhood. Most of the speakers were generally in support of the project, but voiced concerns related to earmarking the $250,000 monetary contribution for the Navy right-of-way improvements. The Planning Commission unanimously approved the development entitlements and recommended approval of the GPA, ZMA, and MND to be forwarded to the City Council for adoption. A more detailed description and analysis of the project is provided in the Planning Commission staff report dated September 11, 2018 (ATTACHMENT NO. 6) Planning Commission Action on September 11, 2018: The motion was made by Grant, seconded by Kalmick, to recommend approval of General Plan Amendment No. 16-001 and Zoning Map Amendment No. 16-002 to be forwarded to the City Council for adoption. Motion carried by the following vote: Ayes: Scandura, Garcia, Grant, Ray, Kalmick, Crowe, Mandic Abstain: None Absent: None D.ANALYSIS AND RECOMMENDATION: General Plan Amendment The Applicant proposes to amend the General Plan Land Use Element designation of PS-RL (Public-Semipublic with an underlying designation of Low Density Residential) to RL (Low Density Residential) and OS-P (Open Space-Park). The RL land use designation allows for City of Huntington Beach Printed on 10/10/2018Page 4 of 7 powered by Legistar™430 File #:18-359 MEETING DATE:10/15/2018 Density Residential) and OS-P (Open Space-Park). The RL land use designation allows for single-family residential units at a maximum density of seven dwelling units per acre, and the OS-P designation allows for public parks. The amendment of the land use designation is consistent with the existing density and uses in the vicinity of the project site. The subject site is surrounded by single-family uses (max. seven dwelling units/acre) with detached, single- family residences units to the north, south, east, and west of the subject site. The proposed RL land use designation will be consistent with the existing designation located within the surrounding area. The request includes an amendment to the Environmental Resources and Conservation Element (ERC) to amend Figures ERC-1, ERC-2, ERC-3, and Table ERC-4 to reflect the new park layout. The City established parkland acreage standards to ensure the community has enough parks to serve the population. The City’s standard requires a minimum of five acres per 1,000 residents. In Huntington Beach, based on the most recent population estimate, 193,189 residents occupy the City and there are approximately 1,073 acres of public parks. Therefore, the City provides approximately 5.4 acres of parkland for every 1,000 residents. The previously adopted General Plan from 2013 shows Franklin Park as a 1.52-acre park; however, the total acreage includes the public right-of-way (sidewalk, parkway, street to the centerline of Sands Drive), which is inaccurate. The actual existing park is measured at 1.30- acres. The proposed development of 51 detached single-family residential units would result in an increase of approximately 137 persons; and due to this limited increase in population, the 0.22-acre reduction of parkland (1.52 minus 1.30 = 0.22) would not affect the current calculations of 5.4 acres per 1,000 residents. The proposed park with park improvements and the reduction of 0.22-acre (no change in actual parkland acreage) will be consistent with the goals and policies contained within the ERC, and the minimum park acreage per 1,000 residents. Staff believes the proposed RL land use designation, the amendment to the figures within the ERC to reflect the changes to the new park layout, and the project will be consistent with the goals, polices, and objectives of the Land Use, Housing, Public Services and Infrastructure, and Environmental Resources and Conservation elements of the General Plan. The proposed project will contribute to the City’s housing stock, including affordable housing, thereby assisting to achieve the City’s overall housing goals and providing a public park while maintaining the character of the surrounding residential neighborhood by providing a land use that is compatible and harmonious with the surrounding uses, and enhances the image and quality of life in the environment. The proposed project is consistent with the identified goals, policies, and objectives contained in the General Plan and with implementation of identified mitigation measures will not have a negative impact on the environment. Zoning Map Amendment The proposed zoning designation for the subject site is Low Density Residential (RL) for the residential component and Open Space - Parks and Recreation Subdistrict (OS-PR) for the public park. This designation permits single-family residential use within residential neighborhoods with a maximum density of seven dwelling units per acre. Development standards require a minimum parcel size of 6,000 square feet, minimum lot width of 60 feet, City of Huntington Beach Printed on 10/10/2018Page 5 of 7 powered by Legistar™431 File #:18-359 MEETING DATE:10/15/2018 standards require a minimum parcel size of 6,000 square feet, minimum lot width of 60 feet, maximum building height of 35 feet, and maximum lot coverage of 50 percent unless alternative lot sizes are approved as a PUD with public benefits above and beyond minimum code requirements. Additional requirements are identified in Chapter 210, Residential Districts. Properties to the north, south, east, and west are zoned RL and developed with single-family residential uses. The proposed zoning map amendment to RL would be compatible with existing zoning designations surrounding the project site as well as the proposed General Plan Land Use Element designation. The amendment of the zoning designation for the subject site from Public-Semipublic (PS) to RL and OS-PR implements the proposed General Plan Land Use designation of Low Density Residential. The proposed project will comply with the minimum setbacks, minimum parking, and maximum building height requirements of the RL zoning district with minimum lot widths and lot size exceptions that are proposed as part of the PUD design for the project. The proposed project complies with all other requirements of the HBZSO including regulations pertaining to subdivisions and park dedications. The proposed residential designation is the appropriate zoning for the site because it provides a continuation of a compatible zoning designation that allows for single-family neighborhoods with detached single-family residences that continues the single-family residential character of the surrounding area. The proposed zoning results in development that is compatible in density, design, layout, and character to the adjacent single-family residential uses. Staff recommends approval of the zoning map amendment to RL. Environmental Status: On March 28, 2018, the Environmental Assessment Committee (EAC) approved the processing of a mitigated negative declaration (MND) for the project. Staff reviewed the environmental assessment and determined the project would not have significant environmental impacts with incorporation of recommended mitigation measures that were identified for potential impacts to aesthetics, biological resources, cultural resources, tribal resources, and mandatory findings of significance. Subsequently, draft Mitigated Negative Declaration No. 16-002 (Attachment No. 10a) was prepared with mitigation measures pursuant to Section 240.04 of the HBZSO and the provisions of CEQA. Draft MND No. 16-002 was made available for a 20-day public comment period, which commenced on April 19, 2018 and concluded on May 8, 2018. Seventy-three (73) comment letters were received on the MND and responses to comments and errata are provided as Attachment No. 8 to this report. On September 11, 2018, the Planning Commission approved Mitigated Negative Declaration No. 16- 002 and recommended adoption to the City Council. Prior to any action on the project, it is necessary for the City Council to review and act on Mitigated Negative Declaration No. 16-002. Staff is recommending the MND be approved with findings and mitigation measures. Strategic Plan Goal: Improve quality of life City of Huntington Beach Printed on 10/10/2018Page 6 of 7 powered by Legistar™432 File #:18-359 MEETING DATE:10/15/2018 Attachment(s): 1. Findings for Approval - Mitigated Negative Declaration No. 16-002, Zoning Map Amendment No. 16-002 2. City Council Resolution No. 2018-27 for General Plan Amendment No. 16-001 3. City Council Ordinance No. 4161 for Zoning Map Amendment No. 16-002 4. Existing and Proposed General Plan Land Use Designation Maps 5. Existing and Proposed Zoning Maps 6. Planning Commission Staff Report dated September 11, 2018 7. Mitigated Negative Declaration No. 16-002 - refer to website: <https://huntingtonbeachca.gov/government/departments/planning/environmental- 8. Mitigated Negative Declaration No. 16-002 - Response to Comments and Errata 9. Tentative Tract Map No. 18147 and Site Plan dated July 30, 2018 - FOR REFERENCE ONLY 10. Planning Commission Notice of Action dated September 12, 2018 11. PowerPoint Presentation City of Huntington Beach Printed on 10/10/2018Page 7 of 7 powered by Legistar™433 Attachment No. 1 ATTACHMENT NO. 1 SUGGESTED FINDINGS AND CONDITIONS OF APPROVAL MITIGATED NEGATIVE DECLARATION NO. 16-002 ZONING MAP AMENDMENT NO. 16-002 SUGGESTED FINDINGS FOR APPROVAL – MITIGATED NEGATIVE DECLARATION NO. 16-002: 1. Mitigated Negative Declaration No. 16-002 has been prepared in compliance with Article 6 of the California Environmental Quality Act (CEQA) Guidelines because it was advertised and available for a public comment period of twenty (20) days. Comments received during the comment period were considered by the Planning Commission prior to action on the Mitigated Negative Declaration No. 16- 002, General Plan Amendment No.16-001, Zoning Map Amendment No. 16-002, Tentative Tract Map No.18147, and Conditional Use Permit No. 16-031. The project initially was proposed with 51 dwelling units and a 1.15-acre public park. Subsequent to the public comment period on the draft MND, and in response to comments received from the public on the draft MND, the project was revised to reduce the proposed number of units to 51 detached single-family dwelling units. The reduction in units was a result of an increase in the proposed park area from 1.15-acre to 1.30-acre to ensure that there would be no reduction in actual park acreage when compared to the existing park. As analyzed in the draft MND, all impacts based on the 51-unit project are anticipated to be less than significant or reduced to a less than significant level with incorporation of mitigation measures. As such, the revised project is also anticipated to result in less than significant impacts or less than significant with incorporation of mitigation measures. In addition, the changes to the project do not require recirculation of the draft MND in accordance with Section 15073.5 of CEQA, as the changes do not affect the level of significance of any potential impacts, the mitigation measures do not need to be revised, and the project changes do not result in new mitigation measures. 2. Mitigation measures, are incorporated into the project conditions of approval, to avoid or reduce the project’s effects to a point where clearly no significant effect on the environment will occur. Mitigation measures are incorporated to address potentially significant impacts to aesthetics, biological resources, cultural resources, tribal cultural resources, and mandatory findings of significance. The proposed aesthetics mitigation measure will require the applicant to provide an updated arborist report documenting all existing trees to be removed including trees within the existing Franklin Park area, the closed school site, and within the parkway; and to replace removed mature trees at a minimum 2:1 ratio. The proposed biological resources mitigation measure will require the applicant to provide an updated arborist report and a landscape plan prepared by a qualified landscape architect to identify tree species that will provide suitable roosting habitat for the Monarch butterfly. The second mitigation measure for biological resources will require the applicant to not start construction during the bird nesting season (February 1 to August 31); and if it cannot be avoided, a certified and qualified biologist shall conduct a pre-construction nesting bird survey prior to the removal of trees and shrubs with specific protocols if nests are found. The proposed mitigation measures for cultural resources and tribal cultural resources require the applicant to obtain services of a qualified Native American Monitor during construction related ground disturbance activities for the purpose to monitor and maintain daily logs of the activities, locations, soil, and any cultural materials identified. If any resources are found, the Native American Monitor will coordinate with the Tribe and landowner regarding treatment and curation of found resources. Furthermore, to mitigate impacts to cultural resources, any discoveries of human skeletal material shall be immediately reported to the County Coroner and the Native American Monitor shall immediately divert work at a minimum of 50 ft. and place an exclusionary zone around the burial. As such, with incorporation and implementation of the above-described mitigation measures, potentially significant impacts would be reduced to a less than significant level. 434 Attachment No. 1 3. There is no substantial evidence in light of the whole record before the Planning Commission that the project, as mitigated, will have a significant effect on the environment. Potential impacts from the project are minimized to a less than significant level through the project design, standard code requirements and the recommended mitigation measures. SUGGESTED FINDINGS FOR APPROVAL - ZONING MAP AMENDMENT NO. 16-002: 1. Zoning Map Amendment No. 16-002 to rezone the 8.75-acre project site from Public-Semipublic (PS) to Residential Low Density (RL) and Open Space-Parks and Recreation Subdistrict (OS-PR) is consistent with the goals, objectives, and land use policies of the General Plan as identified below. The proposed change is also consistent with General Plan Amendment No. 16-001, which is being processed concurrently. The land uses in the surrounding area are consistent with the proposed change in zoning because surrounding land uses include low-density residential uses to the north, east, west, and south. As discussed in the mitigated negative declaration for this project, there will be appropriate infrastructure and services available to support the proposed development. The proposed zoning map amendment would be consistent with the following General Plan goals, objectives and policies: A.Land Use Element Goal LU-1:New commercial, industrial, and residential development is coordinated to ensure that the land use pattern is consistent with the overall goals and needs of the community. Policy LU-1A: Ensure that development is consistent with the land use designations presented in the Land Use Map, including density, intensity, and use standards applicable to each land use designation. Policy LU-1B: Ensure new development supports the protection and maintenance of environmental and open spaces resources. Policy LU-1C: Support infill development, consolidation of parcels, and adaptive reuse of existing buildings. Policy LU-1D: Ensure that new development projects are of compatible proportion, scale and character to complement adjoining uses. The project is consistent with the land use designation of RL (Low Density Residential) as the single- family dwelling project meets the maximum density allowed in the RL designation of seven dwelling units per acre. The proposed project will maintain environmental and open space resources by dedicating 1.30-acres of a public park and the installation of park improvements. Furthermore, the project is an infill development, as the closed school site will be demolished to develop single-family residences, which meets the policies of the General Plan to reuse sites that are underutilized. Lastly, the project is complementary to the adjacent single-family residences and is compatible in proportion, scale, and character. The proposed project site is entirely surrounded by one- and two-story single- family residences. The proposed architectural design of the new homes will complement the existing homes by providing a mix of one- and two-story dwellings, building setbacks, and architectural styles that are compatible with the surrounding neighborhood and is consistent with the development standards in the HBZSO. Policy LU-2D: Maintain and protect residential neighborhoods by avoiding encroachment of incompatible land uses. 435 Attachment No. 1 Policy LU-2E: Intensify the use and strengthen the role of public art, architecture, landscaping, site design, and development patterns to enhance the visual image of Huntington Beach. The proposed detached, single-family residential project will maintain the residential neighborhood and enhance the visual image of the community. The proposed General Plan land use designation and zoning designation of RL (Low Density Residential) is consistent with the adjoining properties. Each proposed detached single-family residence will meet the development standards such as landscaping, setbacks, building height, and lot coverage to ensure consistency with the surrounding dwellings. The proposed project provides for enhanced landscaping on each lot, parkways, and within the public park. Furthermore, as conditioned, a public art component shall be installed and maintained by the HOA. Goal LU-4: A range of housing types is available to meet the diverse economic, physical, and social needs of future and existing residents, while neighborhood character and residences are well maintained and protected. Policy LU-4A: Encourage a mix of residential types to accommodate people with diverse housing needs. Policy LU-4D: Ensure that single-family residences are of compatible proportion, scale and character to surrounding neighborhoods. The character of the existing single-family neighborhood is preserved as the proposed project consists of 51 detached single-family homes designed as a PUD, with a mix of one- and two-story homes. Housing plans offer three- and four-bedroom homes with different floor plans to meet the needs of existing and future residents. The floor area for the new homes range from 2,291 sq. ft. to 3,224 sq. ft. and the maximum building height for a two-story dwelling is 27 ft. and 7 in., which is consistent with the surrounding neighborhood in scale and proportion. B. Housing Element Policy 2.4 Surplus Public Land:Utilize surplus publicly owned land for residential use where appropriate and consistent with the City’s General Plan. The project is located on publicly owned land which is occupied by a closed school site and is a surplus property as the school was closed due to under enrollment in 1994. The project will result in the development of a single-family residential use and is consistent with the goals and policies of the Land Use Element and the Housing Element of the General Plan. Policy 3.4 Public/Private Partnerships:Explore collaborative partnerships with non-profit organizations, developers, the business community and governmental agencies in the provision of affordable housing. The project is required to provide ten percent of the dwelling units (5.1 units) to be affordable. The developer proposes to provide one on-site unit to be affordable and provide funding for four off-site affordable units. The remaining fractional 0.1 unit will be satisfied via an in-lieu fee. The proposed off- site units will involve a collaborative partnership with the developer, the City and local non-profit organizations to provide the affordable units at an off-site location. Goal 4: Reduce potential governmental constraints to housing production and affordability. 436 Attachment No. 1 The project is designed as a PUD, which allows for reduced lot widths and lot sizes with the provision that the developer provides mutual public benefits for the enjoyment of the residents and the public. As such, flexibility with the development standards such as reduced lot widths and lot sizes provides for a mechanism to accommodate additional housing as well as affordable units. C.Public Services and Infrastructure Policy PSI-2E:Ensure that new development and reuse projects and existing land uses promote fire safety. The proposed project meets the California Fire Codes and the Huntington Beach Fire Department requirements by providing for acceptable street widths and turning radii for proper access and maneuvering of fire apparatus. The development will also provide for fire hydrants spaced at 300 ft. where the standard is 500 ft. As conditioned, RV parking is restricted on the private streets to further ensure fire safety and access is maintained. Each single-family dwelling is required to provide a fire sprinkler system, which further promotes fire safety for the community. D.Environmental Resources and Conservation Policy ERC-1A:Maintain or exceed the current park per capital ratio of 5.0 acres per 1,000 persons, including the beach in the calculations. A 1.30-acre park (excluding sidewalk, parkway, and one-half of Sands Drive) is owned by the Westminster School District and occupies the existing site. The proposed project would result in the removal of the existing park and the construction of a new 1.30-acre park. The minimum park requirements of five acres per 1,000 residents would not be affected by the new park as the current conditions provide for 5.4 acres per 1,000 residents, which exceeds the minimum standards. Furthermore, the proposed project would continue to provide for a neighborhood park with park improvements in the area for continued usage by Huntington Beach residents. 2. Zoning Map Amendment No. 16-002 would only change the land use designation rather than a general land use provision and would not affect the uses authorized in and the standards prescribed for the proposed zoning district. 3. A community need is demonstrated for the change proposed because the changes expand the opportunities for housing and address the needs of a growing population. 4. Adoption of Zoning Map Amendment No. 16-002 will be in conformity with public convenience, general welfare and good zoning practice because the zoning map amendment provides for a compatible single-family residential land use and a 1.30-acre park. The zoning map amendment results in zoning and General Plan land use designations that are consistent with one another and would allow the property to be rightfully developed. MITIGATION MEASURES FOR ENVIRONMENTAL CONCERNS: 1. The applicant shall provide an updated arborist report documenting all existing trees to be removed including all trees within the existing Franklin Park area, within the closed school site, and within the parkway. Said report shall identify the size and health of the existing trees. Prior to any tree removal, the applicant shall obtain a permit from the Public Works Department for any proposed activity that may disturb existing trees on the project site. A landscape plan demonstrating compliance with current 437 Attachment No. 1 code requirements and the replacement of any existing mature healthy trees to be removed at a minimum 2:1 ratio with 36-inch box that is equivalent in species type as required by the Parks, Tree, and Landscape Division shall be submitted to the Public Works Department prior to issuance of a permit to remove and/or plant trees. To the extent feasible, trees removed from the existing Franklin Park area shall be replaced within the proposed 1.30-acre park area at a 2:1 ratio. The landscape architect shall recommend tree species that would provide suitable roosting habitat for the Monarch butterfly. (AES-1 and BIO-1 Mitigation Measure) 2. To avoid potential impacts to nesting birds, trees and shrubs on the site should not be removed during the nesting season (typically February 1 to August 31). If construction during the nesting season cannot be avoided, the applicant shall provide the City of Huntington Beach proof that a certified and qualified biologist has been retained prior to ground disturbance. Said biologist shall conduct a pre- construction nesting bird survey to search the trees and shrubs on-site for nests prior to their removal (generally within five days). If no nests are found, no further mitigation would be necessary. If a nest is found, it will be avoided/protected with a suitable buffer area until nesting activity has ended (e.g., the young fledge). The diameter of the buffer area will be determined by the biologist, based on the species (some birds are more tolerant than others) and the location of the nest relative to existing off- site and on-site disturbances and conditions. Buffer areas for active nests can range from less than 100 feet and up to 500 feet, but certain construction activities may be allowed within the buffer area at the discretion of the biologist. The buffer area shall be flagged by a qualified biologist and construction personnel shall be instructed to avoid the area until the nest is inactive. (BIO-2 Mitigation Measure) 3. During construction-related ground disturbance activities, the project Applicant will be required to obtain the services of a qualified Native American Monitor(s). Ground disturbance is defined by the Tribal Representatives from the Gabrieleño Band of Mission Indians-Kizh Nation as activities that include, but are not limited to, pavement removal, pot-holing or auguring, grubbing, weed abatement, boring, grading, excavation, and trenching, within the project area. The monitor(s) must be approved by the Tribal Representatives and will be present on-site during the construction phases that involve any ground disturbing activities. The Native American Monitor(s) will complete monitoring logs on a daily basis. The logs will provide descriptions of the daily activities, including construction activities, locations, soil, and any cultural materials identified. The monitor(s) shall possess Hazardous Waste Operations and Emergency Response (HAZWOPER) certification (Hazwoper is needed only if the site has hazardous concerns). In addition, the monitor(s) will be required to provide insurance certificates, including liability insurance, for any archaeological resource(s) encountered during grading and excavation activities pertinent to the provisions outlined in the California Environmental Quality Act, California Public Resources Code Division 13, Section 21083.2 (a) through (k). The on-site monitoring shall end when the project site grading and excavation activities are completed, or when the Tribal Representatives and monitor have indicated that the site has a low potential for archeological resources. Archaeological and Native American monitoring and excavation during construction projects shall be consistent with current professional standards. All feasible care to avoid any unnecessary disturbance, physical modification, or separation of human remains and associated funerary objects shall be taken. Principal personnel must meet the Secretary of Interior standards for archaeology and have a minimum of 10 years of experience as a principal investigator working with Tribal Cultural Resources in southern California. The Qualified Archaeologist shall ensure that all other personnel are appropriately trained and qualified. (CR-1 and TCR-1 Mitigation Measure) 4. All archaeological resources unearthed by project construction activities shall be evaluated by the Qualified Archaeologist and Native Monitor. If the resources are Native American in origin, the Tribe shall coordinate with the landowner regarding treatment and curation of these resources. Typically, the Tribe will request reburial or preservation for educational purposes. If a resource is determined by 438 Attachment No. 1 the Qualified Archaeologist to constitute a “historical resource” pursuant to CEQA Guidelines Section 15064.5(a) or has a “unique archaeological resource” pursuant to Public Resources Code Section 21083.2(g), the Qualified Archaeologist shall coordinate with the applicant and the City to develop a formal treatment plan that would serve to reduce impacts to the resources. The treatment plan established for the resources shall be in accordance with CEQA Guidelines Section 15064.5(f) for historical resources and Public Resources Code Sections 21083.2(b) for unique archaeological resources. Preservation in place (i.e., avoidance) is the preferred manner of treatment. If preservation in place is not feasible, treatment may include implementation of archaeological data recovery excavations to remove the resource along with subsequent laboratory processing and analysis. Any historic archaeological material that is not Native American in origin shall be curated at a public, non- profit institution with a research interest in the materials, such as the Natural History Museum of Los Angeles County or the Fowler Museum, if such an institution agrees to accept the material. If no institution accepts the archaeological material, they shall be donated to a local school or historical society in the area for educational purposes. (CR-2 and TCR-2 Mitigation Measure) 5. Human remains are defined as any physical remains of a human being. The term “human remains” encompasses more than human bones. In ancient as well as historic times, Tribal Traditions included, but were not limited to, the burial of associated cultural resources (Funerary objects) with the deceased, and the ceremonial burning of human remains. These remains are to be treated in the same manner as bone fragments that remain intact. Associated funerary objects are objects that, as part of the death rite or ceremony of a culture, are reasonably believed to have been placed with individual human remains either at the time of death or later; other items made exclusively for burial purposes or to contain human remains can also be considered as associated funerary objects. Native American Graves Protection and Repatriation Act (NAGPRA) guidance specifically states that federal agencies will consult with organizations on whose aboriginal lands the remains and cultural items might be discovered, who are reasonably known to have a cultural relationship to the human remains and other cultural items. Therefore, for this project site, it is appropriate to consult with the Gabrieleno Band of Mission Indians – Kizh Nation as recommended by the NAHC. Prior to the start of ground disturbing activities, the land owner shall arrange a designated site location within the footprint of the project for the respectful reburial of the human remains and/or ceremonial objects. Any discoveries of human skeletal material shall be immediately reported to the County Coroner. The monitor will immediately divert work at minimum of 50 feet and place an exclusion zone around the burial. The monitor will then notify the Qualified Archaeologist and the construction manager who will call the coroner. Work will continue to be diverted while the coroner determines whether the remains are Native American. The discovery is to be kept confidential and secure to prevent any further disturbance. If Native American, the coroner will notify the NAHC as mandated by state law who will then appoint a Most Likely Descendent. In the case where discovered human remains cannot be fully documented and recovered on the same day, the remains will be covered with muslin cloth and a steel plate that can be moved by heavy equipment placed over the excavation opening to protect the remains. If this type of steel plate is not available, a 24 hour guard should be posted outside of working hours. The Tribe will make every effort to recommend diverting the project and keeping the remains in situ and protected. If the project cannot be diverted, it may be determined that burials will be removed. The Tribe will work closely with the Qualified Archaeologist to ensure that the excavation is treated carefully, ethically and respectfully. If data recovery is approved by the Tribe, documentation shall be taken which includes at a minimum detailed descriptive notes and sketches. Additional types of documentation shall be approved by the Tribe for data recovery purposes. Cremations will either be removed in bulk or by means as necessary to ensure completely recovery of all material. If the discovery of human remains includes 4 or more burials, the location is considered a cemetery and a separate treatment plan shall be created. The project applicant shall consult with the Tribe regarding avoidance of all cemetery sites. Once complete, a final report of all activities are to be 439 Attachment No. 1 submitted to the NAHC. The Tribe does NOT authorize any scientific study or the utilization of any invasive diagnostics on human remains. If the coroner determines the remains represent a historic non-Native American burial, the burial shall be treated in the same manner of respect with agreement of the coroner. Reburial will be in an appropriate setting. If the coroner determines the remains to be modern, the coroner will take custody of the remains. Each occurrence of human remains and associated funerary objects will be stored using opaque cloth bags. All human remains, funerary objects, sacred objects and objects of cultural patrimony will be removed to a secure container on site if possible. These items should be retained and reburied within six months of recovery. The site of reburial/repatriation shall be on the project site but at a location mitigated between the Tribe and the landowner at a site to be protected in perpetuity. There shall be no publicity regarding any cultural materials recovered. (CR-3 and TCR- 3 Mitigation Measure) 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 PLANNING COMMISSION STAFF REPORT TO:Planning Commission FROM:Ursula Luna-Reynosa, Community Development Director BY:Jessica Bui, Associate Planner SUBJECT: ..title GENERAL PLAN AMENDMENT NO. 16-001, ZONING MAP AMENDMENT NO. 16-002, TENTATIVE TRACT MAP NO. 18147, CONDITIONAL USE PERMIT NO. 16-031, MITIGATED NEGATIVE DECLARATION NO. 16-002 (SEA DANCE RESIDENTIAL DEVELOPMENT – Continued from July 10, 2018): To recommend City Council approval of proposed General Plan land use and zoning map amendments from Public and Public- Semipublic to Residential Low Density and Open Space Park; to approve a proposed subdivision for 51 new single family residences in a Planned Unit Development design with reduced lot sizes and public benefits for the community; and Mitigated Negative Declaration to analyze the potential environmental impacts of the proposed project located at the former Franklin School site at 14422 Hammon Lane. ..body APPLICANT: Rick Wood, TRI Pointe Homes, 5 Peters Canyon, Suite 100, Irvine, CA 92606 PROPERTY OWNER: Westminster School District, 14121 Cedarwood Avenue, Westminster, CA 92683 BUSINESS OWNER: Not applicable. LOCATION: 14422 Hammon Lane, 92647 (east side of Hammon Lane and south of Sands Drive) STATEMENT OF ISSUE: 1. Is the project proposal consistent with the City of Huntington Beach’s adopted land use regulations (i.e. General Plan, Zoning Map and Zoning Code including any specific plans and overlay districts where applicable)? 2. Does the project proposal satisfy all the findings required for approving a Tentative Tract Map and Conditional Use Permit? 466 3. Has the appropriate level of environmental analysis appropriately identified all environmental impacts with appropriate mitigation? RECOMMENDATION: ..recommendationA)Approve Mitigated Negative Declaration No. 16-002 with findings and mitigation measures (Attachment No. 1); B)Recommend Approval of General Plan Amendment No. 16-001 by approving draft City Council Resolution No. 2018-27 (Attachment No. 2) and Zoning Map Amendment No. 16-002 with findings (Attachment No. 1) by approving draft City Council Ordinance No. 4161 (Attachment No. 3) and forward to the City Council for adoption; C)Approve Tentative Tract Map No. 18147 and Conditional Use Permit No. 16-031 with findings and suggested conditions of approval (Attachment No. 1). ..end ALTERNATIVE ACTION(S): The Planning Commission may take alternative actions such as: A. “Continue Mitigated Negative Declaration No. 16-002, General Plan Amendment No. 16-001, Zoning Map Amendment No. 16-002, Tentative Tract Map No. 18147, and Conditional Use Permit No. 16-031 and direct staff to return with findings for denial.” B. “Continue Mitigated Negative Declaration No. 16-002, General Plan Amendment No. 16-001, Zoning Map Amendment No. 16-002, Tentative Tract Map No. 18147, and Conditional Use Permit No. 16-031 and direct staff accordingly.” PROJECT PROPOSAL: The project proposal is to subdivide an approximately 8.75-acre site to accommodate 51 single- family dwelling units, a 1.30-acre public park, private streets, public utilities and a water quality basin lot. In order to undertake the project proposal, TRI Pointe Homes (the “Applicant”) requests the following entitlements: General Plan Amendment to amend the existing Land Use Element designation from Public (underlying Low Density Residential) (P(RL)) to Low Density Residential (RL) and Open Space Park (OS-PR); Zoning Map Amendment to amend the existing zoning designation from Public- Semipublic (PS) to Low Density Residential (RL) and Open Space – Parks and Recreation Subdistrict (OS-PR); Tentative Tract Map and Conditional Use Permit to subdivide an approximately 8.75- acre site to accommodate fifty-one (51) numbered lots for residential purposes and five (5) lettered lots for private streets, public utilities, common areas, water quality purposes, and a public park; and Mitigated Negative Declaration to analyze the potential environmental impacts associated with the project. Background: 467 The closed Franklin School site is approximately 8.75-acres and owned by Westminster School District (WSD). The school site was constructed in 1962 during the time when the original residential subdivision in the area was developed. In 1994, the Franklin School closed due to under enrollment, but in 1996 the school property was leased to the Orange County Head Start program, which utilized the school site until 2015 when the lease was terminated. The site closed thereafter. The project was initially proposed with 53 single-family dwellings, private streets, public utilities, a water quality basin lot, and a 1.5-acre public park. The project was scheduled for a public hearing before the Planning Commission on July 10, 2018; however, per the Applicant’s request, the project was postponed to the September 11, 2018 Planning Commission meeting without opening the public hearing. The Applicant requested a postponement of the project in order to address the concerns of the surrounding neighborhood. As such, the project has been revised to increase the public park dedication from 1.15-acres to 1.30-acres, which matches the size of the existing Franklin Park. The increase in park dedication results in the loss of two residential units (from 53 to 51 single- family dwelling units). In response to numerous comment letters from the surrounding community, the Applicant revised the park location to match the linear shape of the existing Franklin Park. The revised park design is sited along Sands Drive and the northeast corner of the subdivision has been revised to include three flag-lots. The following summary describes the overall changes resulting from the increase in the park dedication and revised site plan layout (see Attachment No. 9 for matrix): 1. Number of units: reduced from 53 to 51 2. Park acreage: increased from 1.15-acres to 1.30-acres 3. On-street parking (public and private streets): reduced from 74 to 70 4. Average lot size: was 4,835 sq. ft., now 4,787 sq. ft. 5. Average lot width: no change – 48 ft. 6. Water Quality Lot: location changed to northwest corner of site and increased from 4.826 sq. ft. to 5,403 sq. ft. 7. Number of one-story homes: reduced from 11 units to nine units The Applicant held a community meeting on August 16, 2018 to describe the revised project and share the new proposed park layout and the park size with the surrounding neighborhood. Study Session: The Planning Commission held study sessions for the project on June 26, 2018 and August 28, 2018, and discussed the following issues: Lot “A” between Lots 11, 12, and 13 Tentative Tract Map No. 18147 shows a lot labeled, Lot “A,” which is part of Tract No. 4364, located just north of Spa Drive, between lots 11, 12, and 13. Lot “A,” is a typical pedestrian easement used to access public school sites from adjacent neighborhoods. The current pedestrian path is gated at the school district property line and no longer serves as access to the closed school site. Consequently, the easement will no longer be necessary with the development of the project. As such, a condition of approval for the tentative tract map will require the applicant to address the disposition of the easement by coordinating with the adjacent residential property owners. If it is to be vacated, a complete General Street Vacation shall be processed by the developer through the Department of Public Works at no cost to the adjacent residential property owners. 468 A similar project that involved a pedestrian easement to a closed school site was the Lamb project, located in the southeast area of the City (east of Brookhurst Street and north of Yorktown Avenue). For the Lamb project, five feet off each side of the 15 ft. wide pedestrian easement was vacated to adjacent residences and a 10 ft. wide path was maintained to allow access onto the private street within the residential tract to keep the connection for the existing residents to the public park. The applicant for the Lamb project, which was also TRI Pointe Homes, made all necessary improvements to the pedestrian easement and executed a license agreement to maintain it for access to the residential tract. For the Sea Dance project, the existing pedestrian easement leads directly into the backyard of a proposed residential unit. In the case of Lamb, the easement led directly onto the private street. In addition, as mentioned above, the existing pedestrian easement for Sea Dance is currently fenced off and is considered closed for access onto the closed school site. Average Lot Width & Size The proposed average lot width is 48 ft. and the proposed average lot size is 4,787 sq. ft. The required minimum lot width in the proposed Low Density Residential (RL) zoning designation is 60 ft. and the minimum lot size is 6,000 sq. ft. However, Section 210.06(C) of the HBZSO allows flexibility in minimum building site regulations when approved as part of a Planned Unit Development (PUD). The surrounding residences have typical 60 ft. wide and 6,000 sq. ft. lots. Despite the reduced lot widths and lot sizes, each proposed dwelling unit complies with all other development standards in the RL zoning designation such as setbacks, lot coverage, height, parking, and landscaping requirements. One-story and Two-story Dwellings Adjacent to Existing Dwellings The original site plan layout had 11 single-story units proposed, which were sited along the perimeter of the project site to ensure compatibility with the existing neighborhood. The revised site plan layout maintains the compatibility and proposes nine single-story units along the eastern and southern boundary of the site, adjacent to the existing dwellings. A comparison between the site plans is provided below: Calneva Lane (east side): Original – Five two-story units; three one-story units Revised – Seven two-story units; four one-story units Spa Drive (south side): Original – Five two-story units; five one-story units Revised – Five two-story units; five one-story units Therefore, the difference between the original site plan and the revised site plan are that two additional two-story units and one additional one-story unit are sited along the existing homes on Calneva Lane. Street Width A typical residential street width is 40 ft. from curb-to-curb. However, exceptions can be made to accommodate enhanced design and street layouts as long as the street widths are adequate for fire safety and access. The proposed street width is 38 ft. from curb-to-curb. The Huntington Beach Fire Department has reviewed the proposed street width and has approved the conceptual design. Street reductions from the typical 40 ft. is common. Some examples of similar approved projects were the residential developments at Wardlow and Lamb, where street widths were approved at 36 ft. wide. The proposed 38 ft. wide streets allow for the 469 parking of vehicles along both sides of the street without obstructing vehicular or fire apparatus access. Furthermore, a condition of approval will require language to be included in the CC&Rs to restrict recreational vehicles (RVs) along the private streets to ensure fire safety is maintained. Reduced street widths also act as a traffic calming mechanism, which will reduce the speed within the tract. Joint Use Agreement for Franklin Park Franklin Park is owned by the Westminster School District and was previously maintained by the City pursuant to a joint use agreement. Park Acreage Measurement The existing park area is inaccurately listed in the last adopted General Plan (2013) and the Park and Recreation Master Plan as 1.52-acres because excess square footage was included. The Westminster School District property extends to the centerline of Sands Drive, which is an additional 30 ft. along the entire park frontage. When the park was developed in the 1970s, the 1.52-acre measurement included the existing park area, sidewalk, parkway, and the area to the centerline of Sands Drive. The actual measurement of the park area should only extend to the back-of-sidewalk, or to the property line boundary, which excludes the sidewalk, parkway, and one-half of Sands Drive. The useable park area of the existing park is 1.30-acres. The proposed park dedication is 1.30-acres and excludes any public right-of-way areas. Therefore, there will be no reduction in useable park area. The General Plan amendment to amend the Environmental Resources and Conservation Element will revise the figures to reflect the proposed park layout and update the park name if necessary. Parkland v. School Field The existing park area is 1.30-acres and the school field located immediately south of the park site is approximately 3.2-acres. Although it appears the school field is part of the parkland, the City does not identify the school field as a park and does not include it in the park inventory. Naylor Act The Naylor Act requires a school district to offer a lease or sale of any surplus property to a charter school first, and then to the city within which the land is located. Existing law prohibits the cost from exceeding the cost of acquisition, adjusted by a cost of living factor, plus the cost of any improvements. The entity that purchases or leases the property must maintain the property for a playground, playing field, or other outdoor recreational and open space use. In this case, the Westminster School District is exchanging property with the Applicant, and therefore, the Naylor Act does not apply (California Education Code Section 17536 et. seq., (Attachment No.14)). Measure C The City Attorney’s Office and staff have reviewed Charter Section 612 – Public Utilities and Parks and Beaches (Measure C) and determined Measure C does not apply to this project. The City does not own Franklin Park and although the City once had an agreement to maintain the park, the agreement is no longer in effect and the land is owned by the Westminster School District. In addition, the previous Community Recreation Agreement (maintenance and use agreement) for Franklin Park predates January 1, 1989, the effective date of Measure C. Public Benefit: Navy Right-of-Way Improvements 470 The City is in the process of acquiring the Navy right-of-way and has plans to improve the right-of-way into an open space trail for public use. Until the City owns the land, physical improvements cannot be made to the trail. However, staff is recommending a $250,000 monetary contribution for future improvements to recreation facilities. All funds received from the Applicant will be deposited into an account with the Public Works Department to be retained until the funds are applied to the improvements to the Navy right-of-way, or for other park and recreational needs within the vicinity (see Tentative Tract Map No. 18147 suggested condition of approval 7b of Attachment No.1). Public Benefits: Parkland dedication and improvements: Pursuant to the Quimby Act, the Applicant is only required to dedicate 0.74 acres of land for park purposes with very minimal physical improvements. The Applicant is proposing to dedicate 1.30 acres (a surplus of 0.56 acres) and to design and install the park improvements so that the community has a new, improved park prior to the new homes being occupied. Allowing the public to utilize the private streets to park on for access to the dedicated park. Public Art: The project will include installation of public art. Monetary contribution toward Navy right-of-way improvements or other recreational facilitates in the vicinity. Public Park Design and Purview of Planning Commission: The Planning Commission’s role in reviewing the public park is solely focused on location, size and orientation as part of its consideration of the TTM. The actual design of the park (including hardscape and landscape) will be considered by the Community Services Commission. However, the public record will note public testimony requesting that the preservation of existing, mature trees be accommodated to the extent possible. Possibility of HOA Maintaining Dedicated Public Park The Planning Commission discussedthe idea of eliminatingthe public benefit for the $250,000 monetary contribution for the Navy right-of-way improvements or other park and recreation improvements and instead having the homeowner’s association (HOA) maintain the public park. Staff reviewed the possibility of having the HOA maintain the public park and recommends the park be maintained by the City. Public benefits are intended to be above and beyond standard code requirements and mutually beneficial to both the residents of the development and the surrounding community. If the HOA were to maintain the park, that cost would be borne by future homeowners as opposed to the applicant. Therefore, eliminating the $250,000 and instead requiring the HOA (homeowners) to pay for future maintenance cost will not provide an extraordinary benefit to the new residents and the surrounding community; however, the $250,000 monetary contribution will provide additional or improved open space uses within the vicinity. Planned Unit Development A Planned Unit Development (PUD) allows for flexibility in development standards to encourage innovative land use development that achieves high quality site planning, design, and aesthetically pleasing environments through architecture and landscape improvements. It is a mechanism used to allow for supplemental development standards, and in exchange requires the applicant to provide mutual public benefits above and beyond the minimum code requirements of the project. Public benefits may include the creation of permanent open space, recreational facilities, infrastructure, utilities, and other public improvements. Although 471 the variation in lot sizes creates flexibility in development, the proposed single-family homes comply with all other development standards for RL zoning district and provides a design that is compatible with the neighborhood with similar building orientations (i.e., rear yards abutting rear yards and front yards facing front yards) which maintains the overall character and design layout of the existing neighborhood. If the project was proposed to meet the minimum lot width and lot sizes (60 ft. wide and 6,000 sq. ft.) in the RL zoning district, the net acreage after required dedications for street and sidewalk purposes, assuming the proposed 38 ft. wide street would remain, could yield 51 dwelling units. A project with 51 homes would require a park dedication of 0.74-acres. As such, the project could yield 43 homes after the 0.74-acre park dedication, yielding a density of 6.8 units per acre. However, the Applicant could propose 49 units, and be exempt from a park dedication requirement and only be required to pay a park in-lieu fee. The Quimby Act, which requires a dedication of parkland, is applicable to projects that propose 50 or more lots. The park in-lieu fee for a project with 49 units would be approximately $874,993, and it would cost the City approximately $1.8 million to acquire land and install park improvements for a 1.30-acre park. Density/Number of Units The proposed RL zoning designation allows for a maximum of seven dwelling units per acre, which is consistent with the zoning designation of the surrounding neighborhood. The project consists of 51 units, and the net lot area (excludes parkland dedication area) is 7.45-acres. As such, the density of the proposed project is seven dwelling units per acre (6.9 DU/AC x 7.45-acres = 51.40 DU). The surrounding neighborhood has a similar density with approximately five to seven dwelling units per acre. Disabled Access to Park The proposed public park will be required to meet minimum Americans with Disabilities Act (ADA) requirements regarding access to the playground amenities. The minimum access requirements are a 48 in. wide sidewalk with a maximum five percent slope to the proposed playground equipment and picnic tables. Playground equipment is typically manufactured in accordance with ADA requirements. Picnic tables will meet ADA requirements for sufficient “knee and toe” space for wheelchair use, and the surface of the playground area must meet specific stiffness requirements for wheelchair access and preventative head injuries. All ADA requirements will be reviewed for compliance during the building plan check review process, prior to issuance of building permits. ISSUES AND ANALYSIS: Subject Property And Surrounding General Plan Designations, Zoning And Land Uses: LOCATION GENERAL PLAN ZONING LAND USE Subject Property:PS-RL (Public- Semipublic with an underlying designation of Low Density Residential) PS (Public-Semipublic) Closed Franklin School and Franklin Park 472 North, South, East, and West of Subject Property: RL (Low Density Residential) RL (Residential Low Density) Single-Family Residences General Plan Conformance: The Applicant proposes to amend the General Plan Land Use Element designation of PS-RL (Public-Semipublic with an underlying designation of Low Density Residential) to RL (Low Density Residential) and OS-P (Open Space-Park). The RL land use designation allows for single-family residential units at a maximum density of seven dwelling units per acre, and the OS-P designation allows for public parks. The amendment of the land use designation is consistent with the existing density and uses in the vicinity of the project site. The subject site is surrounded by single-family uses (max. seven dwelling units/acre) with detached, single-family residences units to the north, south, east, and west of the subject site. The proposed RL land use designation will be consistent with the existing designation located within the surrounding area. The request includes the amendment to the Environmental Resources and Conservation Element (ERC) to amend Figure ERC-1 and ERC-2 to reflect the new park layout. The City established parkland acreage standards to ensure the community has enough parks to serve the population. The City’s standard requires a minimum of five acres per 1,000 residents. In Huntington Beach, based on the most recent population estimate (2014), 193,189 residents occupy the City and there is approximately 1,073 acres of public parks. Therefore, the City provides approximately 5.4 acres of parkland for every 1,000 residents. The previously adopted General Plan from 2013 shows Franklin Park as a 1.52-acre park; however, the total acreage includes the public right-of- way (sidewalk, parkway, street to the centerline of Sands Drive), which is inaccurate. The actual existing park is measured at 1.30-acres. The proposed development of 51 detached single-family residential units would result in an increase of approximately 137 persons; and due to this limited increase in population, the 0.22-acre reduction of parkland (1.52 minus 1.30 = 0.22) would not affect the current calculations of 5.4 acres per 1,000 residents. The proposed park with park improvements and the reduction of 0.22-acre (no change in actual parkland acreage) will be consistent with the goals and policies contained within the ERC, and the minimum park acreage per 1,000 residents. Staff believes the proposed RL land use designation, the amendment to the figures within the ERC to reflect the changes to the new park layout, and the project will be consistent with the goals, polices, and objectives of the Land Use, Housing, Public Services and Infrastructure, and Environmental Resources and Conservation elements of the General Plan. The proposed project will contribute to the City’s housing stock, including affordable housing, thereby assisting to achieve the City’s overall housing goals and providing a public park while maintaining the character of the surrounding residential neighborhood by providing a land use that is compatible and harmonious with the surrounding uses, and enhances the image and quality of life in the environment. The proposed project will not conflict with the identified goals, policies, and objective contained in the General Plan and with implementation of identified mitigation measures will not have a negative impact on the environment. The proposed tentative tract map and conditional use permit are consistent with these designations and the goals, objectives, and policies of the City’s General Plan as amended pursuant to General Plan Amendment No. 16-001 and Zoning Map Amendment No. 16-002 as follows: A.Land Use Element 473 Goal LU-1:New commercial, industrial, and residential development is coordinated to ensure that the land use pattern is consistent with the overall goals and needs of the community. Policy LU-1A: Ensure that development is consistent with the land use designations presented in the Land Use Map, including density, intensity, and use standards applicable to each land use designation. Policy LU-1B: Ensure new development supports the protection and maintenance of environmental and open spaces resources. Policy LU-1C: Support infill development, consolidation of parcels, and adaptive reuse of existing buildings. Policy LU-1D: Ensure that new development projects are of compatible proportion, scale and character to complement adjoining uses. The project is consistent with the underlying and proposed land use designation of RL (Low Density Residential) as the project meets the maximum density allowed in the RL designation of seven dwelling units per acre. The proposed project will maintain environmental and open space resources by dedicating 1.30-acres of a public park and the installation of park improvements. Furthermore, the project is redevelopment of an infill site, as the closed school will be demolished to develop single-family residences, which meets the policies of the General Plan to reuse sites that are underutilized. Lastly, the project is complementary to the adjacent single-family residences in that a similar home orientation is utilized (backyards face backyards and front yards face front yards). Further, the proposed project is compatible in proportion, scale, and character in that the proposed project site is entirely surrounded by one- and two-story single-family residences. The proposed architectural design of the new homes will complement the existing homes by providing a mix of one- and two-story dwellings, building setbacks, and architectural styles that are compatible with the surrounding neighborhood and is consistent with the development standards in the HBZSO. Policy LU-2D: Maintain and protect residential neighborhoods by avoiding encroachment of incompatible land uses. Policy LU-2E: Intensify the use and strengthen the role of public art, architecture, landscaping, site design, and development patterns to enhance the visual image of Huntington Beach. The proposed detached, single-family residential project will maintain the residential neighborhood and enhance the visual image of the community. The proposed General Plan land use designation and zoning designation of RL (Low Density Residential) is consistent with the adjoining properties. Each proposed detached single-family residence will meet the development standards such as landscaping, setbacks, building height, and lot coverage to ensure consistency with the surrounding dwellings. The proposed project provides for enhanced landscaping on each lot, parkways, and within the public park. Furthermore, as conditioned, a public art component shall be installed and maintained by the HOA. Goal LU-4: A range of housing types is available to meet the diverse economic, physical, and social needs of future and existing residents, while neighborhood character and residences are well maintained and protected. 474 Policy LU-4A: Encourage a mix of residential types to accommodate people with diverse housing needs. Policy LU-4D: Ensure that single-family residences are of compatible proportion, scale and character to surrounding neighborhoods. The character of the existing single-family neighborhood is preserved as the proposed project consists of 51 detached single-family homes designed as a PUD, with a mix of one- and two- story homes. Housing plans offer three- and four-bedroom homes with different floor plans. The floor area for the new homes range from 2,291 sq. ft. to 3,224 sq. ft. and the maximum building height for a two-story dwelling is 27 ft. and 7 in., which is consistent with the surrounding neighborhood in scale and proportion. B.Housing Element Policy 2.4 Surplus Public Land:Utilize surplus publicly owned land for residential use where appropriate and consistent with the City’s General Plan. The school was closed due to under enrollment in 1994. The underlying General Plan land use designation of RL (Low Density Residential) indicates that should the land become surplus, the next best appropriate land use is RL (Low Density Residential) for consistency with the surrounding neighborhood. The project will result in the development of a single- family residential use and is consistent with the goals and policies of the Land Use Element and the Housing Element of the General Plan. Policy 3.4 Public/Private Partnerships:Explore collaborative partnerships with non-profit organizations, developers, the business community and governmental agencies in the provision of affordable housing. The project is required to provide ten percent of the dwelling units (5.1 units) to be affordable. The developer proposes to provide one on-site unit to be affordable to moderate income families and provide funding for 4.1 off-site affordable units. The proposed off-site units will involve a collaborative partnership with the developer, the City and local non-profit organizations to provide the affordable units at an off-site location. Goal 4: Reduce potential governmental constraints to housing production and affordability. The project is designed as a PUD, which allows for reduced lot widths and lot sizes with the provision that the developer provides mutual public benefits for the enjoyment of the residents and the public. As such, flexibility with the development standards such as reduced lot widths and lot sizes provides for a mechanism to accommodate additional housing as well as affordable units. C.Public Services and Infrastructure Policy PSI-2E:Ensure that new development and reuse projects and existing land uses promote fire safety. The proposed project meets the California Fire Codes and the Huntington Beach Fire Department requirements by providing for acceptable street widths and turning radii for proper access and maneuvering of fire apparatus. The development will also provide for fire hydrants 475 spaced at 300 ft. where the standard is 500 ft. As conditioned, RV parking is restricted on the private streets to further ensure fire safety and access is maintained. Each single-family dwelling is required to provide a fire sprinkler system, which further promotes fire safety for the community. D.Environmental Resources and Conservation Policy ERC-1A:Maintain or exceed the current park per capital ratio of 5.0 acres per 1,000 persons, including the beach in the calculations. A 1.30-acre park (excluding sidewalk, parkway, and one-half of Sands Drive) is owned by the Westminster School District and occupies a portion of the existing site. The proposed project would result in the construction of a new 1.30-acre park. The current conditions provide for 5.4 acres per 1,000 residents, which this project maintains, albeit with a newly improved park. Zoning Compliance: Zoning Map Amendment The proposed zoning designation for the subject site is Low Density Residential (RL) for the residential component and Open Space – Parks and Recreation Subdistrict (OS-PR) for the public park. This designation permits single-family residential use within residential neighborhoods with a maximum density of seven dwelling units per acre. Development standards require a minimum parcel size of 6,000 square feet, minimum lot width of 60 feet, maximum building height of 35 feet, and maximum lot coverage of 50 percent unless alternative lot sizes are approved as a PUD with public benefits above and beyond minimum code requirements. Additional requirements are identified in Chapter 210, Residential Districts. Properties to the north, south, east, and west are zoned RL and developed with single-family residential uses. The proposed zoning map amendment to RL would be compatible with existing zoning designations surrounding the project site as well as the proposed General Plan Land Use Element designation. The amendment of the zoning designation for the subject site from Public- Semipublic with an underlying zoning of Low Density Residential (PS (RL)) to RL and OS-PR implements the proposed General Plan Land Use designation of Low Density Residential. The proposed project will comply with the minimum setbacks, minimum parking, and maximum building height requirements of the RL zoning district with minimum lot widths and lot size exceptions that are proposed as part of the PUD design for the project. The proposed project complies with all other requirements of the HBZSO including regulations pertaining to subdivisions and park dedications. The proposed residential designation is the appropriate zoning for the site because it provides a continuation of a compatible zoning designation that allows for single-family neighborhoods with detached single-family residences that continues the single-family residential character of the surrounding area. The proposed zoning results in development that is compatible in density, design, layout, and character to the adjacent single-family residential uses. Staff recommends approval of the zoning map amendment to RL. Tentative Map/Site Layout/Compatibility 476 A total of 42 on-street parking spaces will be provided along both sides of the interior private street and 38 parking spaces will be available along existing public streets. The proposed layout is designed to serve as a walkable community that harnesses greater community interaction as the proposed sidewalks will align with the existing sidewalks along Spa Drive to the south, Hammon Lane to on the west of the site, and Sands Drive to the north. The project proposes several parkway canopy street trees along the internal streets within the proposed project to match the existing neighborhood. Lot “D,” on the corner of Hammon Lane and Sands Drive is designated as a 5,404 sq. ft. water quality lot, which is used to meet water quality treatment and discharge requirements. Lot “D” will be landscaped and fenced off and is not intended for public use. The project proposes building heights that range from approximately 19 ft. 10 in. to 27 ft. 7 in. maximum. The 18 homes located along the eastern and southern boundary of the project site, and adjacent to the existing homes along Calneva Lane and Spa Drive are proposed with increased rear yard setbacks for greater compatibility. The rear setbacks range from 16 ft. 6 in. to 29 ft. 8 in., where the minimum required setback requirement for the zoning district is 10 ft. The increased rear setbacks provide an adequate buffer for existing residences by providing additional protection from any associated light, noise, or privacy impacts. The existing homes in the vicinity are predominantly one-story single-family homes with some two-story homes in the neighborhood. To ensure compatibility with the scale and character of the neighborhood, nine of the 51 homes will be one-story and are located along the southern and eastern perimeter of the site, abutting the existing residences. In addition, the proposed 1.30-acre park is located in the same area as the existing park and faces the front yards of the existing residences. The location of the proposed park will maintain the existing conditions and minimize impacts to those residences. The rear of the proposed homes along the south and east sides will face the rear yards of existing residences, and this further ensures the incorporation of the new housing development to be compatible with the existing neighborhood layout. The proposed project is compatible with the homes located in the vicinity because the homes will not exceed the height permitted by the proposed zoning district. Furthermore, the homes are designed to minimize overall building mass and scale by incorporating facade breaks, upper floor setbacks, and roof variations into the design of each plan type, which aesthetically blends the homes into the surrounding neighborhood. The proposed homes will be compatible with surrounding residences because the project is designed with detached single-family homes with similar yard setbacks and high quality architecture that is provided with a variety of design themes. The project proposes three building plan types with three architectural styles that are named Coastal Spanish, Seaside Ranch, and Beach Cottage. Each architectural design style includes a variety of architectural elements such as stucco finishes, stone veneer, wood siding, different roof materials, accent shutters, ceramic tiles, rafter tails, and window trims that provide high architectural emphasis for each design style. Many of the existing homes in the project vicinity have stucco with siding exteriors and shingled roofs. The proposed homes include components of the surrounding residences such as accent shutters and stucco details, which serve to enhance the architectural style of the proposed homes. The proposed design complies with the adopted Design Guidelines for residential development. Planned Unit Development The project will be developed as a PUD because it proposes 51 residential lots with lot widths and sizes that are less than the minimum lot size requirement of 60 ft. wide and the minimum lot size of 6,000 sq. ft. for the Low Density Residential (RL) zoning standards. The smaller lots are located within the interior of the project site and the larger lots are sited along the perimeter to 477 ensure maximum compatibility with the existing neighborhood. Overall, the average lot size is 4,787 sq. ft. PUDs allow for flexibility in development standards to encourage innovative land use development. Interior lot sizes range from 3,870 to 5,293 sq. ft. and perimeter lots (adjacent to existing homes) range in size from 4,509 to 5,835 sq. ft. Although the request is for small lots, the project is designed to meet all development standards such as building height, lot coverage, parking and setbacks. The dwellings exceed the minimum 10 ft. rear yard setbacks for the proposed perimeter lots (i.e., lots 1 through 21) that are adjacent to existing homes directly to the south and east of the project site. The proposed dwelling units will range in size from 2,291 sq. ft. to 3,224 sq. ft. (includes living area, garage, porch, and optional covered patio). The proposed units are 43, two-story and nine, one-story dwellings. Each unit will feature a three or four bedroom layout that includes a two-car enclosed garage and two-car driveway. Public Benefits In accordance with Section 210.12 –Planned Unit Development Supplemental Standards and Provisions of the HBZSO, the project shall provide a mutual benefit for the residents of the project as well as the general public. The applicant is proposing the following public benefits that exceed the minimum code requirements for a residential subdivision: Dedicate to the City and develop a 1.30-acre public park located along Sands Drive. The park improvements will include installation of landscaping, irrigation, a playground area, picnic tables, lighting, trash receptacles and public art component that will be maintained by the HOA. The Quimby Act requires a 0.77-acre dedication for parkland and does not require park improvements. The dedication of 1.30-acres for a public park and construction of the park improvements exceed the City requirements. The park improvements benefit the City monetarily because the developer will bear the burden of installing the park improvements, resulting in a financial savings to the City and providing upgraded park improvements to the residents. The Community Services Department has reviewed the proposed park and is recommending approval to the Community Services Commission meeting on September 12, 2018. Allowance for the general public to utilize the approximately 42 on-street parking spaces within the private streets of the development. A condition of approval requiring specific language to be placed into the project CC&Rs to allow and guarantee the ongoing ability of the general public to utilize on-street parking within the tract. A monetary contribution of $250,000 for future improvements to the Navy Railroad right-of- way trail or for other park and recreational needs within the vicinity. The Navy Railroad right- of-way was a former railroad that runs through the City of Westminster and the City of Huntington Beach. A segment of the right-of-way is located south of the project site. The segment that is within the City’s boundary starts to the west at Rancho Road and terminates at Springdale Street. The City is working with the City of Westminster, the Orange County Transportation Authority, and other agencies to improve the right-of-way into a recreational trail for public open space. The monetary contribution may go toward future trail improvements or other projects that will increase the City’s open space within the surrounding community. The proposed public benefits exceed standard City requirements and improvements for a standard residential subdivision. The proposed public benefits provide a mutual benefit for the residents of the project as well as the general public. These benefits provide good reasoning for the proposed reduction in lot width and lot size, but more importantly, provides the City with a 478 parkland dedication, upgraded recreational facilities and landscaping, ensures access to the proposed public park, and improvements to additional open space amenities with the future improvements to the adjacent Navy right-of-way trail, or other public parks within the general vicinity. Affordable Housing In accordance with HBZSO Section 230.26 –Affordable Housing, the purpose and intent is to implement the goals, objectives and policies of the City’s Housing Element and encourage low- and moderate-income housing. The project is subject to providing ten percent of the 51 residential units, or 5.1 units, to be affordable housing. The HBZSO specifies that developments of residential projects consisting of 30 or fewer units may elect to build affordable housing on-site, pay in-lieu fee, or provide units off-site. Developers constructing ownership projects over 30-units have been given the same options with City Council approval. As such, the applicant is proposing to provide one moderate unit on-site and funding for four units at an off-site project for a total of five deed restricted units. The remaining fractional 0.1 may be met by paying an in-lieu fee. The Office of Business Development is working with several non-profit developers to identify potential off-site affordable housing projects. The funding from this project would be used for rehabilitation of one of the affordable housing projects, which would be deed restricted as affordable housing for 55 years. The proposed on-site moderate income unit would be deed restricted as affordable for 45 years. It is the recommendation of the Office of Business Development to bring before the City Council an Inclusionary Housing Agreement to provide one unit on-site for moderate income, to provide funding for four very low and low-income off-site units, and to satisfy the remaining fractional 0.1 unit by payment of in-lieu fees. Infill Lot Ordinance The proposed project complies with the City’s Infill Lot Ordinance, which analyzes proposed residences for compatibility and privacy issues, such as window alignments, building pad height, and floor plan layout. The heights of the proposed residences will be consistent in character with the RL zoning district and the surrounding residences. The proposed project is designed with sensitivity to homes abutting existing single-family residences. A minimum 16 ft. 6 in. rear yard setback in lieu of the minimum 10 ft. is provided. The distance from the rear of a proposed residence to the rear of an existing residence ranges from 43 ft. to 70 ft. where the minimum per the zoning district could be 20 ft. The layout of each floor plan has been situated to avoid direct window alignments with the existing adjacent neighbors. Urban Design Guidelines Conformance: The project conforms to the objectives and standards specific to single-family residential development contained in the Huntington Beach Urban Design Guidelines. The project complies with general design objectives by providing high quality architectural and landscape design in massing and scale with existing residential developments surrounding the project site. The layout of the development is compatible with the neighborhood because it is designed as detached single-family residential neighborhood containing streets, parkways, sidewalks, and detached one- and two-story residences. A 38 ft. wide private street will provide access into the development and will be aligned with the existing public streets to the west, Riviera Drive and Nevada Drive. Four-foot wide sidewalks and five-foot wide landscaped parkways will be provided on each side of the street throughout the development. 479 The project incorporates several guidelines for building siting/lot design including varied building offsets and varied building design. In terms of building design, the project is proposing to provide a mix of one-story and two-story homes with three different floor plans and three distinct architectural style that include Coastal Spanish, Seaside Ranch, and Beach Cottage. Articulation and architectural details are proposed on all four sides of each home. In addition, the project proposes enhanced window treatments such as trims and shutters, contrasting building materials, façade breaks, upper story wall offsets, and a mix of hip and gable roofs. The proposed private streets serving the project will connect with Riviera Drive and Nevada Drive to form a continuous neighborhood network of streets. The proposed subdivision is not gated and is accessible by the public. The new sidewalks will connect with the existing sidewalks on Hammon Lane and Sands Drive to provide continued pedestrian connectivity with the existing neighborhood and walkability within the project. Environmental Status: On March 28, 2018, the Environmental Assessment Committee (EAC) approved the processing of a mitigated negative declaration (MND) for the project. Staff reviewed the environmental assessment and determined the project would not have significant environmental impacts with incorporation of recommended mitigation measures that were identified for potential impacts to aesthetics, biological resources, cultural resources, tribal resources, and mandatory findings of significance. Subsequently, draft Mitigated Negative Declaration No. 16-002 (Attachment No. 10a) was prepared with mitigation measures pursuant to Section 240.04 of the HBZSO and the provisions of CEQA. Draft MND No. 16-002 was made available for a 20-day public comment period, which commenced on April 19, 2018 and concluded on May 8, 2018. Seventy-three (73) comment letters were received on the MND and responses to comments and errata are provided as Attachment Nos. 10a-10d to this report. Furthermore, the project initially was proposed with 53 dwelling units and a 1.15-acre public park. Subsequently, in response to comments received on the draft MND, the plans have been revised to reduce the dwelling units to 51 in order to accommodate a 1.30-acre public park. The changes to the project do not require recirculation of the draft MND as the changes do not affect the level of significance of any potential impacts, the mitigation measures do not need to be revised, and the project changes do not result in new mitigation measures. Coastal Status: Not applicable. Design Review Board: Not applicable. Subdivision Committee: The proposed tentative tract map was reviewed by the Subdivision Committee on March 29, 2018. Staff presented the proposed subdivision including the street patterns within the tract as well as access to the development, the public park, easements, and the layout of the single- family residential lots. The Subdivision Committee reviewed the recommended conditions of approval for the tentative map from the Community Development Department, Public Works Department, and Fire Department. The Subdivision Committee recommended unanimous approval of the proposed project to the Planning Commission with an added condition of 480 approval that the developer be responsible to vacate lot “A,” which is a parcel that provides pedestrian access from Spa Drive to lot 11 (Attachment No. 7). Other Departments Concerns and Requirements: The Departments of Public Works, Fire, Community Services and Building have reviewed the proposed development project. Recommended conditions from the Departments of Public Works, Fire, and Building are incorporated into the suggested conditions of approval and code requirements have also been identified (Attachment No. 12). Public Notification: Legal notice was published in the Huntington Beach Wave on August 30, 2018, and notices were sent to property owners of record within a 1,000 ft. radius of the subject property, individuals/organizations requesting notification (Community Development Department’s Notification Matrix), applicant, interested parties and individuals/organizations that commented on the environmental documents. Written communications received prior to September 11, 2018 Planning Commission meeting will be forwarded to the Planning Commission for consideration. Written communication received as of September 3, 2018 (not including comments received on the draft MND in Attachment No. 10b) are included as attachments to this report (Attachment No. 13). Application Processing Dates: DATE OF COMPLETE APPLICATION: MANDATORY PROCESSING DATE(S): June 8, 2018 Draft MND: Within 180 days of complete application – December 5, 2018 TTM: Within 50 days of adoption of MND CUP: Within 60 days of adoption of MND GPA/ZMA: Not applicable. SUMMARY: Staff recommends that the Planning Commission take the following actions: A. Approve Mitigated Negative Declaration No. 16-002 with findings and mitigation measures (Attachment No. 1); and B. Recommend approval of General Plan Amendment No. 16-001 and Zoning Map Amendment No. 16-002 and forward draft resolution and ordinance to the City Council for adoption (Attachments 2 and 3); and C. Approve Tentative Tract Map No. 18147 and Conditional Use Permit No. 16-031 with findings and suggested conditions of approval (Attachment No. 1). This recommendation is based on the following: −The draft MND determines the project will not have significant environmental impacts with incorporation of recommended mitigation measures that were identified for potential impacts to aesthetics, biological resources, cultural resources, tribal resources, and mandatory findings of significance −The proposed General Plan Land Use Element and zoning designations are consistent with surrounding zoning and land use designations; will contribute to the City’s housing stock, including affordable housing, thereby assisting to achieve the City’s overall housing goals; and affords the property owner allowance to develop the property. 481 −The proposed project, with exception of the proposed residential lot sizes, complies with the provisions of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) with respect to the RL zoning development standards. −The proposed homes will be compatible with other residential uses surrounding the project site with respect to height, setbacks, onsite parking, and architecture. −The project meets the requirements of the Subdivision Map Act and has been reviewed by the Subdivision Committee for compliance. −The project contributes to the City’s housing stock, including affordable housing as required by existing City requirements, thereby assisting to achieve the City’s overall housing goals. −The project will be developed as a PUD and provide mutual public benefits that will include a dedication of a 1.30-acre park with park improvements, on-street parking opportunities, a $250,000 monetary contribution for future improvements to the Navy Railroad right-of- way trail or other park and recreational facilities, private streets with public parking, public art, and establishment of a green building program. Overall, the proposed public benefits will exceed standard City requirements. ATTACHMENTS: 1. Suggested Findings and Conditions of Approval for Mitigated Negative Declaration No. 16- 002; Zoning Map Amendment No. 16-002; Tentative Tract Map No. 18147; and Conditional Use Permit No. 16-031 2. Draft City Council Resolution No. ___ for General Plan Amendment No. 16-001 3. Draft City Council Ordinance No. ____ for Zoning Map Amendment No. 16-002 4. Vicinity Map 5. Existing & Proposed General Plan Land Use Designation Maps 6. Existing & Proposed Zoning Maps 7. Tentative Tract Map No. 18147 8. Site plans, floor plans, elevations, and project plans dated June 5, 2018 on the title sheet 9. Project Changes Matrix 10a. Draft Mitigated Negative Declaration No. 16-002 (includes mitigation measures, narrative, and plans reviewed with the MND) 10b. MND – Response to Comments Cover Letter and Appendix A - Comment Letters 10c. MND – Response to Comments Appendix B – Responses to Comments on the draft MND 10d. MND – Response to Comments Appendix C - Errata to the draft MND 11. Project Narrative dated & received July 30, 2018 and community benefits summary dated & received June 28, 2018 12. Code Requirements Letter (for information purposes only), dated February 15, 2018 13. Public comment letters 14. Letter from Westminster School District dated June 14, 2018 482 483 APPENDIX B RESPONSES TO COMMENTS ON THE DRAFT MND INDIVIDUALS  ANDREW ROMER (ROM), MAY 7, 2018 ROM-1 The comment relates to the location of the fenced area of the existing closed school site as described in the Mitigated Negative Declaration (MND). The school buildings are currently fenced off and not accessible to the public; however, the parking lots and open field area are not fenced off. The commenter notes that the public uses the site for parking. However, it should be noted that the current parking lot does not provide required parking for any use. The commenter also provides a personal observation that parking is limited in the tract on street sweeping days. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. ROM-2 The comment relates to other agencies whose approval is required for permits such as the City of Westminster, Midway City Sanitation District, the City’s water and sewer departments, and the Orange County Sanitation District. Approval from the City of Westminster is not required. The Midway City Sanitation District approval is not required as Republic Services will be serving the project site. The Orange County Sanitation District and Republic Services have issued a Will Serve letter for the proposed project. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. ROM-3 The comment states all sections of the MND should have been checked and thoroughly addressed, but does not specify the reasons in this particular comment. The comment does not raise any specific environmental issues. As discussed in the draft MND, this response to comments document, and the proposed errata to the draft MND (Appendix C of this document) all potential impacts, in light of the whole record, have been adequately disclosed and analyzed. The comment will be forwarded to the Planning Commission and City Council for consideration. ROM-4 The comment states the resident disagrees with the determination that an MND is sufficient for the environmental review and the commenter believes the proposed mitigation measures are inadequate and, as such, an Environmental Impact Report (EIR) should be required. The comment does not raise any specific environmental issues. As discussed in the draft MND, this response to comments document, and the proposed errata to the draft MND (Appendix C of this document) all potential impacts, in light of the whole record, have been adequately disclosed and analyzed. No potentially significant impacts have been identified that cannot be mitigated to a less than significant level based on substantial evidence in the record. The comment will be forwarded to the Planning Commission and City Council for consideration. ROM-5 The comment states the proposed homes will affect the existing scenic vistas and a mitigation measure is required. As discussed in Section 5.1 of the draft MND, the existing park and open field area is not designated as a scenic vista; thus, the project would not result in any impacts and a mitigation measure is not required. While there would be a change in the view for some residences that currently face the existing park and school, this change does not result in a significant effect on a scenic vista. 484 ROM-6 The comment states the project would degrade the visual character of the site and its surroundings due to allowing higher density housing than the surrounding neighborhood. As discussed in the MND, the project is proposing to change the zoning and General Plan land use to Residential Low Density (RL), which allows for seven units per acre and is consistent with the zoning and General Plan land use of the surrounding neighborhood. Additionally, the proposed density of 6.9 units per acre is consistent with the proposed zoning and General Plan as well as existing density in the surrounding neighborhood. ROM-7 The comment states the architectural style of the existing neighborhood is Mid-Century Beach Bungalow. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. ROM-8 The comment relates to Mitigation Measure AES-1, which requires the applicant to provide an updated arborist report documenting all existing trees to be removed within the closed school site and the parkway. The comment states that the mitigation measure is inadequate and that preservation of existing trees in the park should occur and the development modified to accommodate preservation in place to the maximum extent possible. According to the preliminary arborist report, the arborist noted that many of the existing trees in the park have defects and would have issues in the future. Therefore, the arborist recommended that they be removed and replaced. Other trees may have higher survival prospects, but are within planned improvement areas, such as the playground, and have also been recommended for removal. The draft MND requires an updated arborist report prior to removal of any trees and the proposed mitigation measure requires replacement of trees at a 2:1 ratio, which has been considered adequate mitigation. The comment also raises concerns of creating a concentrated area of trees that may create a forest like design. Trees will be dispersed throughout the park area and in the landscape parkways throughout the tract. ROM-9 The comment addresses Section 5.1 Aesthetics (c), that the MND, which states the site is entirely developed. The comment states the site is not developed because there is an open field area. The current site is fully developed as the site has been entirely graded and developed as an elementary school. The current open space/field area was a function of the former school use. Although the project would remove the field area of the school, it is not area that is designated as open space. The current zoning of the property would allow for the field area to be developed with buildings and structures. The comment also addresses the same section, which states the project will result in a reduction in the amount of open space that will degrade the visual character of the neighborhood and result in a significant impact that must be mitigated. As discussed in the draft MND, aesthetic impacts are somewhat subjective and the change in the existing condition of the project site (school buildings, fields, parking lot and park area) is “subjective,” and that the new homes and associated park space and landscaping may be viewed aesthetically as an improvement from the current conditions. ROM-10 The comment relates to additional sources of light and glare from the proposed project. The comment proposes a mitigation measure that all exterior lighting on all new structures be directed downward, lighting is low intensity and energy efficient, and all windows facing existing homes be masked to avoid illuminating currently non- illuminated homes. Although the proposed project will introduce new sources of light from the homes and vehicles, the project consists of single -family homes within a single- family neighborhood; therefore, the use of light and sources of glare from the project would be the same from other light sources in the neighborhood. The lighting associated with the proposed development is not anticipated to result in a significant impact and does not require a mitigation measure. Additionally, it is a code requirement that energy efficient lighting is implemented. 485 ROM-11 The comment states the Air Quality section is based upon data that is unsubstantiated and is recommending an independent air quality assessment is prepared to address the following: - Dust will be generated by the contractor’s activities and if not mitigated, will endanger the health and safety of the neighborhood. Who will pay for the cleanup of construction-induced dust deposited on the existing homes and what the long- term damage to the health of residents inhaling the dust? - Mitigation of odors during construction. - Mitigation of construction odors from diesel exhaust and the presence of sulfur and the creation of hydrocarbons during combustion and volatile compounds within paint and other coatings. - Mitigation of the generation of heat and dense buildings absorbing re-radiating thermal energy from the surfaces of buildings, automobiles, furnac es, and air conditioners; and the creation of a heat island. As discussed in the draft MND, air quality impacts were assessed for the proposed project and potential impacts modeled using standard air quality emissions modeling and SCAQMD thresholds of significance. During construction, the project will be required to implement SCAQMD Rule 403, which includes dust control measures such as watering the site. With implementation of Rule 403, pollutant emissions during construction would not exceed thresholds of significance and no further mitigation would be required. Likewise, as analyzed in the Draft MND, short-term odors during construction will be a less than significant impact and no mitigation would be required. As modeled and shown in the draft MND in Section 5.3, due to the temporary and intermittent nature of construction, construction odor and emissions from diesel exhaust and hydrocarbons from paint and other coatings will not result in significant emissions; therefore, impacts would be less than significant and mitigation would not be required. Heat island effects are not analyzed in a MND. However, according to the United States Environmental Protection Agency (EPA), surface and atmospheric temperatures vary over different land use areas and different times of the day. The proposed single-family residential project is consistent with the surrounding residential use, and the thermal energy should not be substantially different from the existing area. Furthermore, the EPA states parks can create cooler areas. As such, the project proposes a 1.15-acre public park that will offset the thermal energy and heat island effect. In addition, trees and vegetation lowers surface and air temperatures. The proposed project will also include landscaping and trees on each lot as well as within the parkway areas, which will further reduce the heat island effect. ROM-12 The MND states that “There are no endangered, rare, or threatened species designated by the U.S. Fish and Wildlife Service (USFWS), California Department of Fish and Wildlife (CDFW), or California Native Plant Society (CNPS) known to occur on-site.” The comment suggests that the statement is incorrect, and goes on to state that hawks nest in the trees at the south end of the site and owls nest across the street. The comment also suggests that these birds of prey are migratory, threatened species (by the USFWS) and rely on the trees and vermin that infest the park. The terms “endangered, rare and threatened” are specific designations of species listed under the federal and state Endangered Species Acts (ESA). As discussed in the MND, based on the biological resources report, there are no species that are currently listed as rare, threatened or endangered on the project site and none are likely to occur there in the future. A list of species currently listed under the state and federal ESAs can be found at 486 https://nrm.dfg.ca.gov/FileHandler.ashx?DocumentID=109406. Although some hawks or owls are migratory, none are listed as “threatened” as the commenter states. The raptors that may occur in the neighborhood are adapted to and relatively common in urban environments. It is unlikely that they rely entirely on the trees or prey in the project area and redevelopment of the site will not substantially reduce availability of similar habitat in the vicinity. No mitigation is required; however, the loss of mature trees will be mitigated under Mitigation Measure BIO-1. Also, Mitigation Measure BIO-2 would ensure that impacts to nesting species would be less than significant. ROM-13 One monarch butterfly (Danaus plexippus) was observed flying in the project area during a survey to evaluate biological resources on the site in 2015 (Leatherman BioConsulting, Inc. 2015). The comment states that without a year-around study it cannot be truthfully known if monarchs are known to winter in the project area and that impacts must be mitigated. The comment also states that monarchs are observed in their backyard every year, and that the updated arborist report and landscape plan will not mitigate the “significant” loss of habitat due to tree removal. As stated in the MND, monarch butterflies are known to roost in gum trees (Eucalyptus spp.) in protected canyons along the southern California coast and can occur throughout the state during migration. The locations of the roosting sites for these large populations are well known to agency personnel, conservation organizations, and biologists in general, and usually are located in protected areas where the public can visit and observe the congregation of butterflies. In addition, these wintering sites are included in data bases that can be searched for the occurrence of special status species, such as the one conducted for the biological assessment, and no wintering populations for the monarch are reported from the area. Therefore, a year-around study is not required to determine that a large monarch population does not rely on the trees on the project site during the winter. The MND states that the removal of gum trees from the project area is not expected to impact the monarch butterfly, and no mitigation is required under CEQA. However, Mitigation Measure BIO-1 includes the requirement to replace mature trees at a 2:1 ratio, and requires that the landscape plan recommend tree species that would provide suitable roosting habitat for the butterfly, so no long-term impacts are expected. Because monarchs can use habitat provided by trees and landscaping anywhere in the vicinity of the project, the temporary loss of mature trees that might be used by monarchs would not result in short-term impacts. ROM-14 The MND states that there are no identified wildlife corridors or native wildlife nurseries occur within the boundaries of the project site, that the project site is fully urbanized and was formerly developed, that the project site is surrounded by urban uses on all four sides, and that the site does not provide a regional linkage between wildlife habitats that are otherwise separated. The comment suggests that these conclusions are not correct because the site is within the Pacific Flyway (a migratory path taken by birds), that the site is open space and not urbanized, and that coyotes (Canis latrans) and raccoons (Procyon lotor) have been observed. A wildlife corridor, as commonly addressed under CEQA, is a narrow corridor (usually with native vegetation) that allows wildlife to move from one patch of native habitat to another patch of native habitat through otherwise unsuitable (e.g. developed) habitat. Because the project has already been developed as a 487 school site, and because the surrounding area is currently developed in the form of housing, there are no patches of native habitat to be connected through the project area. The issues associated with and the effects of habitat fragmentation and importance of corridors were reviewed by Harris and Gallagher (1989) and Soule (1991), among many others. In some areas, land development and linear structures (e.g., roadways) have converted once-contiguous habitat into scattered patches separated by barriers, so that individual animals and entire populations are now isolated in remnant habitat fragments. Wildlife corridors are intended to mitigate the effects of fragmentation by providing movement routes across barriers and increasing the acreage of habitat available to wildlife. The Pacific Flyway is a migratory route along the Pacific Coast used by millions of birds each year. At the extremes, it extends from the Siberian Peninsula through Alaska to the tip of South America. Land birds that migrate along the coast can stopover anywhere along their migratory route. The redevelopment of the site from a school to a residential use would not result in a bottleneck, restriction, or other impediment to bird movement along the Pacific Flyway. The site is completely surrounded by urban development, is not adjacent to open space that provides native habitat, and does not have any potential to function as a wildlife movement corridor. Coyotes, raccoons, and other wildlife species that are adapted to urban environments, including opossums (Didelphis virginianus), Valley pocket gophers (Thomomys bottae), striped skunks (Mephitis mephitis), western fence lizards (Sceloporus occidentalis), southern alligator lizards (Elgaria multicarinata), and numerous bird species, all occur in neighborhoods and urbanized areas similar to the project site. Daily movements of these animals through neighborhoods in their normal home ranges does not constitute movement through a wildlife corridor. These wildlife will continue to occur in and move through the project site and vicinity after the site is redeveloped. 488 ROM-15 The MND states that trees and other ornamental shrubbery on the site may provide suitable nesting habitat for a variety of native birds. The comment states that the implementation of Mitigation Measure BIO-2 would not reduce impacts to less than significant levels because native birds like to nest in mature trees and shrubbery and it might be decades before the lost habitat will support that many birds again. Implementation of Mitigation Measure BIO-2 would completely eliminate the incidental take of active nests, which is the purpose of the measure. Mitigation Measure BIO-2 is specifically intended to avoid the accidental removal of active nests, which is required under federal and state law as follows. The Federal Migratory Bird Treaty Act (MBTA) prohibits any person to “pursue, hunt, take, capture, kill, attempt to take, capture, or kill, possess, offer for sale, sell, offer to barter, barter, offer to purchase, [or] purchase” any migratory bird, including parts of birds, as well as eggs and nests. Similarly, California Fish and Game Code (CFGC) Sections 3503, 3503.5, and 3512 also prohibit take of birds and active nests. Although the federal and state definitions of an active nest are slightly different, essentially, an active nest is a nest that is under construction or has viable eggs or young birds in it. Removal of trees and shrubs during the non-breeding season will not result in the loss of active nests. Therefore, Mitigation Measure BIO-2 requires that trees and shrubs on the site not be removed during the nesting season (typically February 1 to August 31) to avoid potential impacts to nesting birds. It also states that if construction during the nesting season cannot be avoided, a qualified biologist shall conduct a nesting bird survey to search the trees and shrubs on the site for nests prior to their removal. If no active nests are found, no further mitigation is necessary. However, if an active nest is found, it has to be avoided/protected with a suitable buffer area until nesting activity has ended (e.g. the young fledge). Finally, protection of nesting birds under the MBTA and CFGC does not apply to old nests that were used in previous years or to nests that might have been built in subsequent years. Short-term impacts are not considered significant under CEQA because of the availability of similar nesting habitat in the vicinity and long term impacts from loss of mature trees are indirect impacts that are mitigated through BIO-1. ROM-16 The comment relates to the criteria established by SCAQMD which is ten years old. The criteria established by SCAQMD is the most recent criteria and serves to provide a threshold for which the level of impact can be assessed. ROM-17 The comment relates to the construction emissions of 959 metric tons (MT) of CO2e and 847 MT per year. The threshold levels per year is 3,000 MT; therefore, the construction CO2e levels would not be considered significant. The comment also states the project does not demonstrate consistency with the strategies, actions, and emission reduction targets of the City’s Greenhouse Gas Reduction Program (GGRP) because the project is converting open space into a pollution generating use. The GGRP does not restrict development; however, there are guidelines for greenhouse gas emissions. The proposed project is consistent with the guidelines 489 such as requiring energy conservation features such as high efficiency lighting, high efficiency heating and air conditioning, double-glazed windows, and water conserving fixtures to reduce greenhouse gas emissions. ROM-18 The comment relates to post-construction runoff and erosion and that the MND states impacts would be less than significant not being accurate. The comment also states the proposed project will contribute to more runoff and the potential of flooding, storm drain improvements, and requiring storm drains to be engineered and constructed prior to the proposed site modifications on the Franklin Park site. The comment also states an EIR is required for the storm drain improvements. The project will create additional impervious surface area and will create runoff; however, a conceptual Water Quality Management Plan (WQMP) has been approved by the Public Works Department, compliance with requirements of NPDES, and implementation of all post-construction structural and non-structural best management practices will ensure water quality standards and discharge will not result in impacts. The proposed project will implement a new storm drain system, for which potential impacts from construction and implementation are included in the environmental analysis of the draft MND. With implementation of standard requirements related to water quality, the proposed storm drain system for the project, and because the site is not within a flood zone, the potential for floods is not likely to occur. Because the impacts to hydrology and water quality are less than significant, new storm drains do not require an EIR for the project. ROM-19 The comment relates to Section 5.10 Land Use Planning and states that the loss of an 8.75-acre park needs to be mitigated. The comment also states the General Plan amendment and zoning map amendment violates the General Plan Land Use and Housing Element goals and policies; more specifically, with Goal LU-1 because the proposed project is not coordinated to ensure the land use pattern is consistent with the overall goals and needs of the community, and does not address the community’s needs to preserve the existing public open space. The proposed project will not result in a loss of an 8.75-acre park. The existing park is approximately 1.52 acres and is proposed to be replaced with an approximately 1.15-acre park. As discussed in the draft MND, the proposed General Plan amendment and zoning map amendment is consistent with the goals and policies of the General Plan Land Use Element and the Housing Element as the proposed General Plan designation and zoning designation of RL, or Residential Low Density would be compatible with the existing neighborhood of which is also RL. The proposed project will be consistent with Goal LU-1 as the residential development will be consistent with the existing land use pattern of a single-family use and meets the overall goals and needs of the community to provide additional housing types. ROM-20 The comment states the proposed change violates the General Plan Land Use Element and Housing Element goals and policies; specifically, Goal LU-4, because the range of housing types proposed does not match in size and character. Goal LU-4 states: A range of housing types is available to meet the diverse economic, physical, and social needs of future and existing residents, while neighborhood character and residences are well maintained and protected. The proposed project meets Goal LU-4 as the project provides 11 one-story units to be sited along the perimeter of the site, adjacent to the existing homes, and will place two-story units within the interior of the site to achieve compatibility with the existing 490 neighborhood. In addition, the project meets Goal LU-4 as the development provides for a range of housing types by proposing two-story units, which meets the diverse needs of future and existing residents. In addition, the proposed project would be subject to the same standards in terms of height, setbacks, lot coverage, etc., as the surrounding neighborhood, which would allow for comparable sized homes to be remodeled/constructed on existing neighborhood lots. The proposed project meets all development standards with the exception of lot width and lot size. The proposed project does meet standards for height, setbacks, and lot coverage; and therefore, is consistent and compatible with the surrounding neighborhood. ROM-21 The comment relates to the proposed project violates Goal LU-6 of the General Plan because the project does not meet the changing needs of the community, and the community needs a well-maintained public park. Goal LU-6 states that neighborhood school sites should adapt over time to meet the changing needs; as such, the proposed project provides for additional housing options for current and future residents. In addition, the project will dedicate a 1.15-acre public park with park improvements and updated park furniture and playground equipment. ROM-22 The comment relates to the reduced lot widths, lot sizes, and the incompatibility with the existing neighborhood. Although the lot widths and lot sizes will be less than the standard 60 ft. wide and 6,000 sq. ft. lots, the project would be subject to, and is proposing to comply with, all other development standards of the RL zoning district such as building height, setbacks, lot coverage, and landscaping, which are the same standards applicable to the surrounding neighborhood. While the commenter is correct in that lot sizes with be smaller than the surrounding single- family residential lots, the site and lot layout and residential design are consistent with the zoning and single-family residential nature of the surrounding neighborhood. In addition, the proposed project is consistent with the City’s Urban Design Guidelines for single-family development. Therefore, the project is compatible with the existing neighborhood. ROM-23 The comment relates to affordable housing and states the project violates Housing Element Policy HE 3.2 which states that projects should utilize the City’s Inclusionary Housing Ordinance to integrate affordable housing within market rate developments. The proposed project is in compliance with the Housing Element and the City’s Inclusionary Housing Ordinance, as the developer has elected to pay an in-lieu fee to provide affordable units at an off-site location. ROM-24 The comment relates to the reduction in the park acreage and states the project violates Goal ER-1 of the Environmental Resources and Conservation Element of the General Plan. The proposed project, which includes the dedication of a 1.15- acre public park, is consistent with the goals and policies of the Environmental Resources and Conservation Element of the General Plan, and specifically, with Goal ER-1, which states adequately sized and located parks meet the changing recreational and leisure needs of existing and future residents. The required park dedication in accordance with the Quimby Act is 0.77-acre and the project proposes to provide a 1.15-acre public park. Compliance with the citywide General Plan standard within the Environmental Resources and Conservation Element of a minimum five acres for every 1,000 residents would be maintained even with the proposed reduction in park space. 491 ROM-25 The comment relates to noise generated from the proposed project, 54 air conditioning units, three to four automobiles per house, and leaf blowers. As analyzed in the Noise section of the MND, the proposed single-family use is consistent with the surrounding single-family neighborhood and will generate noise similar to noise generated by the existing residential neighborhood. In addition, the proposed project would be subject to the Noise Ordinance of the Municipal Code. ROM-26 The comment states the project will induce substantial population growth in the area and create an increase demand for public services. The comment also states the zone change from PS to RL means the residential development is not within the residential growth anticipated by the General Plan. The proposed project would be a 0.06 percent increase in population, which is generally not considered a substantial increase. The General Plan anticipates 17,862 additional residents by 2040. Although the proposed project would require a zone change from PS to RL to permit the proposed residential development, the residential development is within the residential grow anticipated by the General Plan, and is consistent with the Southern California Association of Governments (SCAG) regional plan. The commenter states that the project would induce substantial population growth, which would result in a significant impact. However, the commenter does not provide specific reasons why he believes the project would induce substantial population growth nor does he provide substantial evidence that there would be a significant environmental impact. ROM-27 The comment states the Westminster Fire Department (serviced by Orange County Fire Authority) services the neighborhood and whether should be consulted to determine if the proposed project will be expected to construct a new fire facility. The neighborhood is served by the Orange County Fire Authority through a mutual aid agreement with the City of Huntington Beach. The City of Westminster did not provide comments regarding the MND or project. In addition, the Huntington Beach Fire Department and the Orange County Fire Authority has reviewed the proposed project and levels of service within the area, and additional fire stations or fire apparatus are not required for the project. 53 new single-family residences would not result in an impact to the level of service for fire safety in the area. ROM-28 The comment relates to the population increase of 137 residents as part of the proposed project, and that the estimated number is too low. The comment also states increased populations will promote increased crime rates, and how long development impact fees for police service will last, or that the development impact fees will not be spent elsewhere. The population estimate for 53 new single- family residences is based on a study from the State of California, Department of Finance that averages the number of persons per household in the City of Huntington Beach to be 2.59 per household. This number is derived using current (2017) population estimates divided by the actual number of occupied households. The commenter suggests multiplying the number of bedrooms per proposed unit by 1.5 or 2. However, there is no supporting information that this method would provide an accurate estimate based on reasonable assumptions. Also, refer to response PRE-2. The Police Department has reviewed the proposed project and does not anticipate an increase in crime rates in the area as the use is single-family residences, consistent with the existing neighborhood. Development impact fees 492 for police services are intended to supplement police services as needed and are applied citywide. ROM-29 The comment relates to the proposed project creating an increase demand for school services and inquires how the destruction of a school will be mitigated. The existing school site has been closed down since 1994 due to under enrollment; therefore, the demolition of the closed school site does not result in the destruction of a currently operating school and no mitigation would be required. In addition, although the addition of 53 single-family homes would increase demand for schools, school fees are required and will be paid, which would offset any potential increases in demand for school services and ensure impacts would be less than significant. ROM-30 The comment relates to the increased demand for parks and rec reational services and the proposed project and park does not comply with the minimum requirements of Chapter 254 of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) or the goals and policies of the General Plan. The comment also states the only mitigation for the proposed project is an increase in the park size. The comment also states that the General Plan standard of five acres per 1,000 residents is only met if Central Park is counted. Central Park is the largest park in the City and, as the General Plan standard is a citywide standard, it is rational to include Central Park acreage (in addition to all other city parks of various sizes) in the citywide standard. In accordance with Chapter 254 of the HBZSO, which implements the requirements of the Quimby Act, the developer is required to dedicate a minimum of 0.77-acres of parkland. The proposed project is dedicating 1.15-acres, which exceeds the minimum requirement. The project is consistent with the goals and policies within the General Plan Land Use Element, Environmental Resources and Conservation Element, and the Housing Element. The single-family residences will be consistent with the surrounding land use, will provide for a range of housing types to meet economic and social needs, and will provide a park that exceeds the minimum dedication requirement and will still maintain the Citywide minimum park acreage standard of five acres per 1,000 residents. As such, no mitigation is required. ROM-31 The comment states the proposed park with park improvements will result in no beneficial effect to the parkland for the neighborhood and impacts to other existing recreational opportunities would be significant. The proposed park will result in a dedication of parkland to the City. The existing park is not owned by the City, but is maintained and operated by the City through a joint use agreement with the Westminster School District that expires on June 2, 2019, unless earlier terminated. In addition, the park improvements will provide for updated park furniture, lighting, landscaping, irrigation, and playground equipment. Impacts to existing recreational opportunities would be less than significant as the residents would continue to have usage of a public park in the neighborhood and during the construction of the project, there would be a temporary displacement of nearby residents to nearby parks resulting in a temporary increase in usage of those parks. However, as the displacement is temporary, it is not anticipated that there would be substantial physical deterioration of the existing parks in the vicinity. In addition, the City would still meet the General Plan standard of five acr es of parkland per 1,000 residents, ensuring that adequate recreational opportunities would be available throughout the City. Thus, the project would not significantly 493 affect existing recreational opportunities. It should be noted that the commenter does not provide substantial evidence that the project would result in significant impacts to other recreational opportunities due to substantial deterioration of existing parks. ROM-32 The comment relates to the traffic study and the impacts of 505 more daily trips and addresses that signalized intersections were studied. The comment also questioned if the traffic study assessed traffic at the non- signalized intersections of Hammon Lane and Westminster Boulevard and Chinook Drive and Springdale; however, the comment states the intersection of Chinook Drive at Westminster Boulevard. Chinook Drive does not intersect with Westminster Boulevard, and it is assumed the individual is referencing Chinook and Springdale Street . Furthermore, the comment also suggests a traffic signal may be required at Hammon Lane and Westminster Boulevard and the intersection of Chinook Drive and Springdale Street. The commenter also concludes that most traffic into and out of the neighborhood is via either Hammon Lane and via Chinook Drive, although no evidence is provided to support this conclusion. To determine the trip distribution for the proposed project, peak hour traffic counts of the existing directional distribution of traffic for existing areas in the vicinity of the site, and other additional information on future development and traffic impacts in the area were reviewed. Then, based on trip generation and distribution, project average daily traffic volumes, including anticipated morning and evening peak hour intersection turning movement volumes, are calculated. Based on the traffic study, the proposed project would not affect levels of service in the adjacent area or at the study intersections. The project is projected to generate approximately 505 daily vehicle trips; however, the morning peak hour and evening peak hours do not indicate significant impacts to traffic conditions. As such, a traffic signal at Hammon Lane and Westminster Boulevard is not required by the proposed project. Furthermore, because the proposed project is only expected to add four or five vehicles during the morning and evening peak hours, respectively, the intersection of Chinook Drive and Springdale Street was not analyzed in the Traffic Impact Analysis. ROM-33 The comment relates to Section 5.16 Transportation/Traffic (f), which states the project, would provide 28 on-street parking spaces. The comment states 28 on- street parking spaces as being because the street sweeping ordinance prohibits street parking and the project would create an increase with the on-street parking deficit. The comment also states there is an existing deficit of parking space within the neighborhood and the residents utilize the existing parking lots on the school property for parking personal vehicles. The proposed project meets minimum on- site parking standards, which is a two-car garage per dwelling unit. The project will also provide an additional 73 on-street parking spaces within the tract and 28 on-street parking spaces along Hammon Lane and Sands Drive. The proposed project would create additional parking opportunities for the future residents and neighborhood and will not result in significant impacts or inadequate parking capacity. In addition, as the project meets parking requirements of the HBZSO, the project would not contribute to an existing parking issue that may currently exist in the neighborhood. Also refer to Response ROM-1 regarding use of the closed school site by the public for parking. 494 ROM-34 The comment relates to wastewater collection services being provided by the City rather than the Orange County Sanitation District (OCSD). The comment also states there should be an engineering study required to confirm adequate sewer system capacity for the project, and that pipes may need to be replaced or lined. The City’s wastewater infrastructure is directly downstream of the subject site and will serve the area, and will then flow into the OCSD Trunk line at the intersection of Bolsa Avenue and Bolsa Chica Street. Pursuant to the project’s Implementation Code Requirements from the City Public Works Department, a Sewer Study (to verify the capacity of the City’s sanitary sewer system) is required of the project applicant and shall be prepared and submitted to the City, prior to recordation of the Final Tract Map for the new subdivision. The expected design flows from the proposed project will be analyzed with respect to existing conditions and capacity of the downstream pipeline. The applicant will be required to install improvements to allow for adequate flow, which would include either upsizing or lining of downstream pipeline. The applicant suggests that these improvements would require an EIR, however, the commenter does not provide substantial evidence as to how/why these improvements would result in a significant impact. Improvements to the existing City sanitary sewer system are anticipated and included in the construction scenario for the project. As discussed in the draft MND, all impacts related to construction would be less than significant or less than significant with mitigation incorporated. As such, preparation of an EIR would not be required. ROM-35 The comment states there is an inadequate analysis of the impacts to the neighborhood’s water system. The comment states the neighborhood’s water is supplied by the Aldrich R. Peck reservoir located at 14501 Springdale Street, and the network of pipes in the area is at least 56 years old and is not adequate to fire protection to 53 new homes. The comment also states an engineering study requiring the adequacy of the water system capacity should be prepared to ensure service pressures are acceptable to the existing homes, or if the water system needs to be upgraded. Lastly, the comment states an EIR should be prepared for an upgrade to the existing aging system. The age of City’s existing infrastructure is independent of this proposed development and it is being separately addressed in the City’s 2016 Water Master Plan Update. The site is relatively close in proximity to the City’s Peck Reservoir, which means it is also close to transmission mains; however, the proposed 8-inch new pipe design is consistent with other residential areas in the City, and will provide more than adequate fire protection and water pressure to this proposed development. The City has a hydraulic model that the project is subject to comply with, such as a typical fire protection requirement for residential areas using 1,500 gallons per minute, and the residential pressure at any nearby fire hydrants will be over 50 psi. The minimum requirement is 20 psi. Furthermore, with new code requirements such as residential fire sprinkler system for all new homes, fire protection is more reliable with such redundancy. In addition, the need for system upgrades would not automatically require preparation of an EIR. An EIR would be required only if there is a potentially significant impact associated with the construction and implementation of a system upgrade. Improvements to the system are anticipated and proposed as part of the project and included in the environmental analysis of the draft MND. As discussed in the draft MND, all impacts associated with utilities and service systems are anticipated to be less than 495 significant. As such, no mitigation is required and preparation of an EIR would not be necessary. ROM-36 The comment states the proposed mitigation measures are inadequate and an Environmental Impact Report should be prepared to address the issues listed in the comment letter. However, the commenter does not provide any substantial evidence to support statements that impacts would be significant, and no alternative mitigation measures were provided that would substantially lessen the anticipated impact. The comment will be forwarded to the Planning Commission and City Council for consideration.  JOHN FUGATT (FUG), MAY 8, 2018 FUG-1 The comment states support of the proposed project and discusses the potential to mitigate the reduction in park area by improving the Navy railroad right-of-way that is located south of the project site to utilize as open space. The comment does not bring up any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration.  JOHN PIERSMA, APRIL 30, 2018 (PIE), APRIL 30, 2018 PIE-1 The comment does not raise any specific environmental concerns related to the adequacy of the environmental impact analysis in the draft MND. The comment states opposition to the number of homes and the reduction in park area. The comment will be forwarded to the Planning Commission and City Council for consideration. However, it should be noted that the environmental impacts from the proposed number of homes is discussed throughout the MND for all impact areas. Based on the analysis in the MND, all environmental impacts associated with the development of 53 homes on the project site are anticipated to be less than significant or less than significant with the incorporation of mitigation measures. Further, as discussed in Sections 5.10 – Land Use and Planning, 5.14 – Public Services, and 5.15 – Recreation of the draft MND, although there would be a reduction in park space from the existing condition, the proposed park area meets the requirements of the City’s zoning code for dedication of park space; will not affect the City’s minimum parkland standard of five acres for every 1,000 residents per the General Plan, and would not result in significant impacts on existing recreational opportunities.  MARY JEAN PIERSMA (PIE), MAY 7, 2018 PIE-2 The comment states opposition to the proposed project and discusses the lack of one- story homes and the reduction in park area. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. Please also refer to Response PIE-1.  JOE LASCOLA, (LAS) APRIL 30, 2018 LAS-1 The commenter notes his background in the architectural feld and that he is generally supportive of the project. The commenter also offers a suggestion to design the proposed park in a lineal shape. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. 496 LAS-2 The comment suggest to site the lots that are more similar in width to the existing lots to be sited along Sands Drive for compatibility and to place narrower lots within the tract. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. LAS-3 The comment is a question regarding if there will be play equipment, BBQ grills, or animal waste disposal stations with the park dedication. Play equipment, picnic tables, and trash receptacles are proposed amenities for the park. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. LAS-4 The comment suggests an increased second story setback on the two-story dwellings. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. LAS-5 The comment inquires about the possibility of reusing the brick veneer from the school buildings for raised planers or seawalls in the park, monuments, or pilasters for caps for a perimeter wall. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration.  MICHAEL & JEANETTE PREECE (PRE), APRIL 28, 2018 PRE-1 The commenter notes their support for the project and provides personal observations regarding the existing “decrepit” condition of the site. This is an inquiry regarding Lot “A,” of the existing Tract No. 4364, which provided neighborhood pedestrian access to the school between lots 11 and 13. The commenter indicates that Lot A is noted on the tentative tract map for private street, public utilities and emergency vehicle access. However, the commenter is referring to the proposed “Lot A,” which is the new street of the subdivision. Although there are no proposed plans for the existing Lot A of Tract 4364, it is conditioned to be addressed by the developer. If a vacation is to occur, a complete General Street Vacation shall be processed by the developer through the Department of Public Works. In general, if a vacation occurs, the land would be divided between the two abutting property owners. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. PRE-2 The comment raises concerns regarding the population data used from the State of California Department of Finance, which states Huntington Beach has 2.60 persons per household because the study includes data collected for all housing types, (single detached units, single attached units, two to four units, five plus or apartment units, and mobile homes) and does not account for single detached units only. Household population estimates are derived by multiplying the number of occupied housing units by the current (2017) persons per household. The persons per household estimates are based on 2010 census benchmark data (the most recent census) and are adjusted by ranking the current county population series into three estimates. Estimates are developed using three separate models, which are driver license address changes, changes in distribution of birth, deaths, driver licenses, public elementary school enrollment, labor force, and county housing unit counts; and U.S. Census Bureau Administrative Records Method, which are updated from their most recent estimates 497 series and the Demographic Research Unit’s data. Nevertheless, per census tract data of the U.S. Census Bureau, when comparing the citywide data (referenced in the draft MND) to the census tract (996.03) of the project site, which is approximately 98 percent single-family residential homes, the average persons per household is only slightly greater at approximately 2.69 persons per household with owner-occupied single-family residential averaging approximately 2.5 persons per household and renter-occupied single- and multi-family residential averaging approximately 3 persons per household. Therefore, even if the more conservative census tract data is used, the project would be anticipated to result in potentially 143 new residents, which would not change the impact conclusions in the draft MND. PRE-3 The comment raises concerns regarding the months when the traffic study was prepared. All schools that service the residents in the area (Stace y, Clegg, Schroder, and Marina) were closed for summer break. Hammon to Space drive and Calneva to Croupier is claimed to be heavily impacted by the project. The traffic report was updated to include traffic counts while school was in session. The updated traffic report finds that traffic volumes are approximately 3.5 percent higher when school is in session and the increase is due to higher volumes at the westbound approach. After discussions with the City’s traffic engineering division, traffic volumes at three study intersections that previously had traffic counts taken when school was not in session were increased by 5 percent to provide a conservative estimate. As such, only slight increases in the volume to capacity ratio was the result, with the intersection Level of Service remaining unchanged from the results determined in the original traffic impact analysis. PRE-4 The comment addresses the existing conditions of the property, issues with graffiti, and vagrants occupying the site. The comment does not raise any specific environmental issues. Also refer to Response PRE-2. The comment will be forwarded to the Planning Commission and City Council for consideration. PRE-5 The comment addresses the numbering of the lots of the existing adjoining properties. Based on the approved tract map for the adjoining tracts, the numbers are accurate. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. PRE-6 See Response to Comment PRE-3. PRE-7 See Response to Comment PRE-1. PRE-8 The comment addresses the proposed decrease in parkland. The applicant is required to dedicate a minimum of 0.77-acres of parkland for the development, and has proposed a dedication of 1.15-acres, which is a reduction in current park acreage. However, as discussed in Sections 5.10 – Land Use and Planning, 5.14 – Public Services, and 5.15 – Recreation of the draft MND, although there would be a reduction in park space from the existing condition, the proposed park area meets the requirements of the City’s zoning code for dedication of park space; will not affect the City’s minimum parkland standard of five acres for every 1,000 residents per the General Plan, and would not result in significant impacts on existing recreational opportunities. The project would provide for continued use of a neighborhood park. Also, refer to Responses PRE-2 and PRE-3. 498 The comment also addresses the Naylor Act and questions why the City did not consider purchasing land for the City owned park. The Naylor Act requires the school district to first offer to sell or lease the school site first to any city within which the land may be situated, second to any park or recreation district within which the land may be situated, third to any regional park authority having jurisdiction, and fourth to any county. The governing board of the school district shall have discretion to determine whether the offer shall be an offer to sell or an offer to lease. The Westminster School District is in an exchange agreement where the school district may exchange the property for real property rather than selling or leasing the property; therefore, the Naylor Act is not applicable, since properties held by school districts for exchange are expressly exempt from the Naylor Act. The commenter also correctly notes that the project is proposed as a PUD, for which a public benefit is required in order to obtain approval for deviations to minimum lot sizes and widths. However, the commenter incorrectly states that the residents in the surrounding tracts would not be allowed to build two-story homes as every single-family (RL) property is permitted two-stories by right.  LOLLY FEGLEY (FEG), MAY 2, 2018 FEG-1 The comment states opposition to the size of the park. The comment states the size of the park is not proportionate to the number of homes within the neighborhood and asks that the City consider requiring a larger park. The applicant is required to dedicate a minimum of 0.77-acres of parkland for the development, and has proposed a dedication of 1.15-acres, which exceeds the City’s minimum requirement. The project would provide for continued use of a neighborhood park. The proposed park is consistent with the goals and policies within the Environmental Resources and Conservation Element of the General Plan. The reduction in parkland will not affect the City’s minimum park requirements of five acres per 1,000 residents. The comment also states opposition to the size and number of stories of the proposed homes. This comment does not raise any specific environmental issues in the MND. The comment will be forwarded to the Planning Commission and City Council for consideration.  RICHARD STURM (STU), MAY 1, 2018 STU-1 The comment states opposition to the reduction in park land. The comment also states park land is underserved within the area. According to the City’s Parks and Recreation Master Plan, the neighborhood surrounding the Franklin School site is not designated as an underserved area. An area is designated as underserved when areas zoned for residential use is more than one-half mile from a park. The proposed development will provide for a public park within the same general area, maintaining adequate service levels to the neighborhood. Also refer to Response PIE-1. STU-2 The comment relates to maintaining a 1.5-acre park as a condition of approval. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. STU-3 The comment states the developer has the option to not provide a park in conjunction with the development. Section 254.08 of the Huntington Beach Zoning and Subdivision Ordinance was adopted to implement the provisions of the Quimby Act. 499 In accordance with Section 254.08, the developer is required to dedicate parkland, pay an in-lieu fee, and is not subject to providing park improvements when a subdivision contains more than 50 lots. In this case, the developer is required to dedicate 0.77-acres of parkland and is proposing to dedicate 1.15-acres and will provide the park improvements. The commenter states his belief that a majority of the people in attendance of the community meeting were in favor of developing the site, but opposed to a reduction in park space.  JOHN WELCH (WEL), MAY 2, 2018 WEL-1 The comment states support of the project as proposed because the closed school site has been a place for illegal activity involving narcotics and breaking and entering. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration.  TRISHA QUEZADA (QUE), APRIL 26, 2018; MAY 3, 2018; MAY 4, 2018 QUE-1 The comment relates to existing traffic safety issues within the neighborhood such as residents not obeying traffic stop signs and there are concerns for increased traffic issues with additional drivers in the area. The comment also inquires if the project will provide for new traffic controls such as speed bumps or narrowing of streets. The proposed use is consistent with the surrounding residential use and is required to comply with speed limits set for residential zones. A traffic study was prepared for the proposed project. As discussed in Section 5.16 of the Draft MND, the project is not anticipated to result in significant increases in traffic such that a change in the level of service would occur nor would it increase traffic safety hazards due to design features. Therefore, no mitigation would be required. There are minimum street width requirements for fire access and safety; therefore, reduction in street widths would not meet existing City requirements. Furthermore, speed bumps are not permitted traffic controls due to fire access requirements. While the comment does not raise specific environmental issues in the MND, the comment related to existing traffic safety concerns in the neighborhood will be forward to the City’s Transportation Division as well as the Planning Commission and City Council. The comment will be forwarded to the Planning Commission and City Council for consideration. QUE-2 The comment questions whether access to the park will be limited to the new residential development. Access to the park will be maintained along Sands Drive and will be accessible to the entire neighborhood, including existing residents. The comment will be forwarded to the Planning Commission and City Council for consideration. QUE-3 The comment questions if the new homes will be a gated community. The proposed development will not be gated. The streets will be privately owned by the HOA but publicly accessible (i.e. – not gated or closed off). The comment does not raise specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. QUE-4 See Response to Comment PRE-3. 500 QUE-5 The comment relates to the reduction in park land and that the proposed park should match what is existing or be larger. The commenter notes that the reduction in park area will have significant negative impacts. Refer to Response PIE-1. The comment does not raise specific environmental issues analyzed in the MND. The comment will be forwarded to the Planning Commission and City Council for consideration. QUE-5 The comment relates to the proposed size, number of stories, and the reduced lot sizes. The comment notes that existing homes in the neighborhood are much smaller than the proposed homes. The commenter states that existing homes cannot build to the size of the proposed homes. However, the proposed homes are subject to the same RL zoning and development standards (e.g. – setbacks, building height, lot coverage) as the existing homes. The projec t is requesting a PUD to deviate from minimum lot size and width, but the standards would be the same and a comparable sized home would be permitted on existing lots. The comment will be forwarded to the Planning Commission and City Council for consideration. QUE-7 The commenter provides information related to real estate value of “Planned Unit Development (PUD) zoned” projects and requests more information about potential effects on existing property values. It should be noted that the proposed zoning for the project would be Residential Low Density (RL), which is the same zoning as the rest of the surrounding neighborhood. In addition, the comment states that the commenter does not believe there are any positive benefits of the project. Also refer to Responses PIE-1 and QUE-1. The comment does not raise specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. QUE-8 The comment relates to the number of on-street parking spaces and suggests that each house have an on-street space in front to accommodate a third vehicle and/or guests. As discussed in Section 5.16.f. of the Draft MND, the development is providing for a two-car garage plus two driveway spaces per house pursuant to the requirements of the HBZSO. This would accommodate a total of four vehicles on site. In addition, a total of 73 on-street parking spaces will be provided for the general public, which could include guests of the new residences. The comment does not raise specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration.  GARY ELMER (ELM), APRIL 25, 2018; MAY 8, 2018 ELM-1 The comment states potential impacts to traffic. A traffic impact analysis was prepared, and the findings show that the trips generated from the proposed use will not result in significant traffic impacts to the area. Also refer to Response QUE-1. The comment also states the property was donated to the Westminster School District when the neighborhood was developed and suggests the District is to operate the site as a school in perpetuity. In 1962, the District obtained the property through condemnation proceedings by compensating the owner of the property a total payment amount of $151,000. Mr. Elmer provided subsequent recorded documents including a Final Order of Condemnation (Final Order) confirming that the district property obtained the property through the legal condemnation process and with a payment. Upon obtaining the property, the District operated the 501 Franklin Elementary School site in accordance with the Final Order. The Education Code recognizes that school districts have changing property needs and limited financial resources, and thus authorizes the District to dispose of real property it no longer needs through various avenues, including the exchange process. TRI Pointe Homes and the District are in an exchange agreement where real property will be exchanged rather than a sale or lease of the school site. The comment does not raise specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. ELM-2 The comment states opposition to the project and the proposed two-story homes. The comment does not raise specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. ELM-3 The comment states the City will collect development impact fees, the Westminster School District will gain monetarily, and the developer will profit from the development. The comment does not raise specific environmental issues. Also refer to Response PIE-1. The comment will be forwarded to the Planning Commission and City Council for consideration. ELM-4 The comment states general opposition toward the City, the developer, and the Westminster School District. This comment raises no specific environmental issues. The comment will forwarded to the Planning Commission and City Council for consideration. ELM-5 The comment states the school site was donated to the school district. Refer to response ELM-1. The comment also includes opposition of reduced lot sizes, impacts to sewer and water systems, and the reduction of open space. Hydrology and water quality was assessed through the MND and the project will not affect existing water systems, as the project will comply with construction runoff and post-construction runoff and erosion requirements with the implementation of a Storm Water Pollution Prevention Plan (SWPPP). The project requires an approved Water Quality Management Plan (WQMP), which would ensure water quality standards and waste discharge requirements are met and impacts would be less than significant. Furthermore, Section 5.18 of the MND addresses water and sewer capacity, as the project would include the connection of onsite water and sewer lines to existing water distribution and sanitary sewer systems. A sewer study to verify capacity within the City’s sanitary sewer system must be reviewed and approved by the Public Works Department. In addition, the OCSD has provided a “will-serve” letter verifying that its treatment facilities have capacity to serve the project. Also refer to Responses PIE-1 and QUE-1. It is not anticipated that any new water or wastewater facilities would be required to serve the project that would result in a significant environmental effect. ELM-6 The comment relates to two attached maps prepared by the resident for an alternative site layout. One is a map of the site, and the second map is a site plan prepared by the individual showing a 2.75-acre park with 30 residential units. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration.  ALAN ADAMO (ADA), MAY 3, 2018 502 ADA-1 The comment states opposition to the project and raises issues of traffic, the size of the proposed homes, and reduced lot sizes. A traffic impact analysis was prepared, and the findings show that the trips generated from the proposed use will not result in significant traffic impacts to the area. Also, refer to Response Que-1. The remaining concerns do not raise specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration.  OMAR AND AMANDA TAYEB, MAY 7, 2018 TAY-1 The comment addresses the decrease in park acreage. The applicant is required to dedicate 0.77-acres of parkland for the development and has proposed 1.15-acres to be dedicated for parkland, which exceeds the minimum requirements. Additionally, the MND analyzes the reduction of parkland and less than significant impacts would occur. The project would continue to provide a neighborhood park for continued usage to the community, continues to meet the goals and polices of the General Plan, and meets the City’s minimum park requirements of five acres per 1,000 residents. Also, refer to Response PIE-1. The comment also relates to concerns regarding the reduced lot sizes, which are proposed as part of a PUD pursuant to the HBZSO, and the proposed two-story homes. The commenter also suggests that the new homes, at two-stories in height, would reduce air flow through the neighborhood, but does not state why they believe this would occur and does not identify an area of the MND they believe this would result in a significant environmental impact. The reduced lot sizes and two-story homes do not raise specific environmental issues and will be forwarded to the Planning Commission and City Council for consideration.  ELLYSIA GALLAGHER, MAY 8, 2018 GAL-1 The comment states opposition of the size of the proposed homes that does not raise any specific environmental issues. The comment also addresses the removal of a tree, which houses a family of hawks. A Biological Resources Assessment was completed and 25 special status wildlife species were identified in the region. Of the 25 special status wildlife species, only the Monarch butterfly was identified onsite. Mitigation measure BIO-1 would mitigate any potential impacts to the Monarch butterfly, and impacts would be reduced to less than significant levels.  LOUANN KRAMER, MAY 10, 2018 KRA-1 The comment states opposition of the project. The comment does not raise any specific environmental issues in the MND. Also refer to Responses PIE-1, STU-1, and QUE-1. The comment will be forwarded to the Planning Commission and City Council for consideration.  DAN JAMIESON, MAY 14, 2018 JAM-1 The comment states the Mitigated Negative Declaration (MND) fails to meet the requirements of the General Plan’s Land Use Element and the Cit y’s Park Master Plan. The purpose of the draft MND is to determine the environmental impacts associated with implementation of the project in accordance with the California Environmental Quality Act (CEQA), comprising Public Resources Code (PRC) Sections 21000–21178 and 14 California Code of Regulations (CFR) Sections 15000 et seq. (CEQA Guidelines). The 503 basic purposes of CEQA are to inform governmental decision-makers and the public about potential significant environmental effects of projects and to provide methods to avoid or reduce the environmental effects by requiring implementation of feasible alternatives or mitigation measures. To that end, the draft MND evaluates and discloses all potential environmental impacts and concludes that al impacts as a result of the project would be less than significant or less than significant with the incorporation of mitigation measures. Also refer to Response JAM-2. JAM-2 The comment relates to the reduction in parkland and the approximately 2.5-acres of open space on the school site, and the loss of parkland is inconsistent with City codes, State laws, and Federal laws. In accordance with Section 254 of the HBZSO, which implements State laws (Quimby Act), the developer is required to dedicate 0.77-acres of parkland and has proposed to dedicate 1.15-acres, which exceeds the minimum code requirement. The open space surrounding the school site that is not designated as Franklin Park is not counted in the City’s park inventory. The proposed public park dedication is consistent with the City’s code requirements and is consistent with the goals and policies within the Environmental Resources and Conservation Element of the General Plan as the minimum of five acres of parkland per 1,000 residents is maintained. JAM-3 The comment relates to the Aesthetics section of the MND that states the change in the existing condition of the project site (school buildings, fields, parking lot and park area) is “subjective,” and that the new homes and associated park space and landscaping may be viewed aesthetically as an improvement from the current conditions. The Aesthetics section of the MND analyzes the impact of a proposed change from the existing site conditions as it relates to the visual character of the site and the surroundings only. The comment also reiterates the loss of parkland. As discussed in Section 5.15 of the draft MND, the project, with the proposed reduction in park space, would not affect the City’s ability to meet the park standard of the General Plan Environmental Resources and Conservation Element. Also, refer to Response PIE-1. JAM-4 The comment addresses the loss of park as it relates to the General Plan. The comment states the General Plan calls on the City to prioritize developing new park facilities in underserved areas in a way that equitably services neighborhood and community needs while balancing budget constraints. The comment also addresses Goal ERC-1 of the Environmental Resources and Conservation Element of the General Plan, which states: Adequately sized and located parks meet the changing recreational and leisure needs of existing and future residents. The proposed project meets the goals and policies within the Environmental Resources and Conservation Element of the General Plan, and more specifically, with Goal ERC-1, Policy A, which requires to maintain or exceed the current park per capital ratio of five acres per 1,000 persons, including the beach in the calculations. The reduction in parkland still meets the minimum requirement of five acres per 1,000 persons. The comment also raises the concern that the area is underserved based on the City’s Park and Recreation Master Plan. The area surrounding the project site is not considered underserved. In accordance with the Park and Recreation Master Plan, areas zoned for residential use are considered underserved when a residential area is more than one-half mile from a park boundary. The proposed park is located in the general area of the existing Franklin Park. 504 JAM-5 The comment relates to the General Plan from the City of Newport Beach and compares it to the City of Huntington Beach. The comment states the northwest part of the city is underserved by parks. To the north of the residential area is the City of Westminster, and to the south are industrial uses. In accordance with the Park and Recreation Master Plan, an underserved area is a residential area that is more than one-half mile from a park boundary. The residential area surrounding the project site is adequately served for parkland. The proposed park will be located in the same general location of the existing park. Also refer to Response JAM-1, JAM-2, and JAM-4. JAM-6 The comment relates to assumptions made in the General Plan and Program EIR related to loss of parkland for analysis associated with adoption of the General Plan Update project. The comment also notes that the General Plan acknowledges that it will be difficult to locate new parks and notes that the City has not acquired additional park space in recent years. The commenter states that the City should not accept a reduction of park space with the proposed project and that this would be contrary to the General Plan. However, it should be noted that for school sites, the General Plan seeks to retain existing open spaces in the event school sites are closed or decommissioned. When school sites close and a school district chooses to sell or lease the property, the school district must first offer the sale or lease to the City in accordance with the Naylor Act. However, land held and conveyed by a school district for purposes of exchange is expressly exempt from the Naylor Act. As such, the City does not have the option to lease or purchase school site or portions thereof to maintain the existing parkland or to acquire additional land for park space. Also refer to Response ROM-6 regarding project density. JAM-7 The comment states the developer’s offer to make park improvements is a mitigation measure. The MND does not include park improvements as a mitigation measure. The park improvements are one of the public benefits proposed by the developer as required for approval of the proposed Planned Unit Development. The comment also includes not addressing mitigation for loss of the park during construction. Under the Recreation section of the MND, 5.15a, demolition of the existing closed school buildings and the public park for the construction of the development is anticipated to take approximately 18 months. During the demolition and construction, there may be temporary displacement of residents for the use of the existing park. However, the displacement is temporary and it is likely that residents would use other parks in the area (there are two within a mile of the project site) during project construction. In addition, the new park and park improvements will provide enhanced facilities, when compared to the existing park, upon completion. The temporary displacement is a less than significant impact and does not require a mitigation measure. JAM-8 The comment addresses the existing conditions of the site and the lack of maintenance is the responsibility of the property owner and the City failing to enforce it s zoning codes. The commenter asserts that the MND anticipates public resistance to the project and “argues” that the site is not regularly maintained and is vacant. The purpose of the MND is to disclose potential environmental impacts of the proposed project to the public and decision-makers; it does not argue for or against a project. The MND accurately describes the current condition of the project site as vacant and lacking regular maintenance. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. 505 JAM-9 The comment relates to the City’s efforts to acquiring the closed school site in accordance with the Naylor Act. When school sites close and choose to sell or lease the property, the school district must first offer the sale or lease to the City in accordance with the Naylor Act. However, the Westminster School District is exchanging property with the developer and is exempt from the Naylor Act. As such, the City does not have the option to lease or purchase the land to maintain the existing parkland or to acquire additional land for park space. Further, as discussed in Sections 5.10 – Land Use and Planning, 5.14 – Public Services, and 5.15 – Recreation of the draft MND, although there would be a reduction in park space from the existing condition, the proposed park area meets the requirements of the City’s zoning code for dedication of park space; will not affect the City’s minimum parkland standard of five acres for every 1,000 residents per the General Plan; and would not result in significant impacts on existing recreational opportunities . As impacts are anticipated to be less than significant, no mitigation would be required. JAM-10 The comment indicates the MND is silent on the City’s current School Purchase Plan. As the proposed project does not include the purchase of the school, no analysis regarding the city’s Surplus School Purchase Plan would be appropriate and no impacts would be anticipated. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. JAM-11 The comment states the MND does not address the degradation of sight lines and loss of open space along Hammon Lane and Sands Drive. Under the Aesthetics section, 5.1c, the loss of open space has been addressed and analyzed. Aesthetic impacts are subjective. Some may view the development of new homes as an improvement from the current conditions of the property. It is not anticipated that the proposed project will substantially degrade the visual character or its surroundings because it will be redeveloped with new detached single-family residences with landscaping and a park. The proposed park will be sited along, and accessed from Sands Drive and from the private streets of the new residential development. The location and access to the proposed park will be similar to the existing Franklin Park. The loss of private views of the park, which is not considered a scenic vista, from existing homes along Hammon Lane, is not an environmental issue. However, the concern is noted and will be forwarded to the Planning Commission and City Council for their consideration. Also, the commenter references Hammon Lane as a “major street,” but it classified as a local street in the General Plan Circulation Element. JAM-12 The comment relates to safety within the park area. The comment does not raise any specific environmental issues. Also, the park design is required to be reviewed by the Community Services Commission and ultimately approved by the City Council. The comment will be forwarded to the Planning Commission and City Council for consideration. JAM-13 The comment relates to Development Impact Fees (DIF) for parks. In accordance with Chapter 17.76 of the Huntington Beach Municipal Code, DIF for parks is only required for non-subdivided new residential and nonresidential development. The proposed project includes a tentative tract map, or subdivision of land. In addition, as discussed in Section 5.15 of the draft MND, impacts associated with the proposed reduction in park space would be less than significant and no mitigation would be required. Use of the City’s Parkland Acquisition and Park Facilities Development Fund is ultimately a budget decision of the City Council. The comment does not raise any specific environmental issues. The comment will be forwarded to the Planning Commission and City Council for consideration. 506 JAM-14 The comment is in opposition of the reduced lot sizes and sizes of the proposed homes. The comment does not raise any specific environmental issues. Also, refer to Responses ROM-6, PIE-1, and QUE-8. The comment will be forwarded to the Planning Commission and City Council for consideration. JAM-15 The comment also states children are picked up and dropped off at the existing closed school site. The Westminster School District will relocate the current school bus pick up and drop off area for students prior to demolition of the school site. The new pick up and drop off area will likely be in the same general area within the neighborhood similar to typical procedures for school bus pick-up and drop off in other neighborhoods. . The comment will be forwarded to the Planning Commission and City Council for consideration. In addition, see Response to Comment PRE-3. JAM-16 The comment relates to negotiating with the developer to reduce the size of the project and to increase park space. The comment indicates that these issues could be resolved through “addressing the shortcomings of the MND.” However, the comment does not raise any specific environmental issues in the MND. The commenter’s concerns regarding the reduction of park space, the size and scale of the proposed project and consideration for the needs of the Westminster School District are noted and will be forwarded to the Planning Commission and City Council for consideration during the public hearings for the project.  NEIGHBORHOOD LETTER NO. 1 – 57 , MAY 5, 2018 NL 1-57 Staff received 57 of the same letters that were individually signed by residents. The letter states opposition to the size of the homes, number of stories, and the reduction in parkland. The comments within the letter do not raise any specific environmental issues in the MND. Also refer to Responses PIE-1 and QUE-5. The letters will be forwarded to the Planning Commission and City Council for consideration. 507 APPENDIX C ERRATA TO THE DRAFT MND Text changes are intended to clarify or correct information in the Draft Recirculated MND in response to comments received on the document, or as initiated by Lead Agency staff. The changes to the Draft MND do not affect the overall conclusions of the environmental document. Revisions are shown below as excerpts from the Draft MND text, with a line through deleted text and an underline beneath inserted text. In order to indicate the location in the Draft MND where text has been changed, the reader is referred to the page number of the Draft MND. Revisions to park acreages (required dedication and proposed dedication) that are provided throughout the entirety of the Draft MND is also listed below. Number of Dwelling Units throughout Entire MND: The project was proposed with 53 detached single-family dwelling units as described in the draft MND. Subsequent to the public comment period on the draft MND, and in response to comments received from the public on the draft MND, the project was revised to reduce the proposed number of units to 51 detached single-family dwelling units. The reduction in units was a result of an increase in the proposed park area as described below. The change from 53 units to 51 units is incorporated throughout the document by this reference. As analyzed in the draft MND, all impacts based on the 53-unit project are anticipated to be less than significant or reduced to a less than significant level with incorporation of mitigation measures. As such, the reduced project is also anticipated to result in less than significant impacts or less than significant with incorporation of mitigation measures. Park Acreages throughout Entire MND: Due to inaccurate required park dedication calculations, the minimum required park dedication was 0.69 acres; however, the correct dedication acreage is 0.77 acres. In addition, the applicant elected to increase the proposed park dedication. The park dedication was 1.07-acres, but subsequent to the public comment period and in response to comments received on the draft MND, revisions to the proposed project would increase the park area for a total dedication of 1.30-acres. The change in required park dedication area and proposed park dedication area is incorporated by this reference throughout the draft MND document. Furthermore, the existing park is inaccurately listed in the Park and Recreation Master Plan as 1.52-acres. After further research, staff determined that the existing park acreage includes area that extends to the centerline of Sands Drive, which is an additional 30 ft. along the entire park frontage. When the park was developed in the 1970s, the 1.52-acre measurement included the existing park area, sidewalk, parkway, and the area to the centerline of Sands Drive. However, the actual measurement of the park area should only extend to the back-of-sidewalk, or to the property line boundary, which excludes the sidewalk, parkway, and one-half of Sands Drive, for an actual total existing park area of 1.30-acres. The proposed park dedication is 1.30-acres, and excludes any public right-of-way areas. Therefore, there is no reduction in park acreage when comparing actual existing park area to the proposed park area. 508 The amendment to the Environmental Resources and Conservation Element of the General Plan will only amend Figure ERC-1 and ERC-2 to reflect the proposed park layout and park name. Page 1, Project Information Tentative Tract Map No. 18057 18147 Page 2, Proposed Project The proposed project involves a request to amend the General Plan land use designation on the approximately 8.75 acre closed Franklin School site from Public-Semipublic, with an underlying designation of Low Density Residential, to Low Density Residential (7.68 acres) and Open Space – Parks (1.07 acres), and to amend the Figure ERC-1 and ERC-2 of the Environmental Resources and Conservation element to reduce the overall City parkland by 0.45 acres to reflect the proposed park layout and park name; and amend the zoning designation from Public – Semipublic to Low Density Residential (7.68 acres) and Open Space – Parks and Recreation Subdistrict (1.07 acres). The proposed project also involves a Tentative Tract Map (TTM) to allow for the subdivision of the approximately 8.75-acre parcel to allow for the development of a single-family residential Planned Unit Development (PUD) and associated infrastructure and open space improvements consisting of 5351 numbered lots and four five lettered lots (refer to Attachment No. 3). Lot A is for a private street, public utilities, and emergency vehicle access purposes; Lot B is for common areas; Lot CD is for water quality purposes; and Lot DE is for a public park. All existing on-site structures and the approximately 1.52 acre public park (Franklin Park) are proposed to be removed as part of the project. The 1.52 acre park acreage was measured from the centerline of Sands Drive and included the parkway and sidewalk area; however, the actual park acreage is 1.30-acres when excluding the parkway, sidewalk, and the street to the centerline of Sands Drive. The proposed public park dedication of 1.30-acres will be measured from the actual property line and not from the centerline of Sands Drive, which results with no reduction in park acreage. It should be noted that the The City currently operates the existing Franklin Park through an agreement with the Westminster School District, but does not own the park in fee. The City of Huntington Beach and the Westminster School District will consider whether to amend the joint use agreement to remove Franklin Park if they project is approved. 52 of tThe proposed residential lots do not meet the minimum Residential Low Density (RL) lot width (60 ft.) and size (6,000 sq. ft.) requirements of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO). The proposed lot widths range between 45 ft. and 6154 ft. and lot sizes are between 3,870 sq. ft. and 6,541 5,835 sq. ft. The resulting density is 6.98 units per acre, which is within the permitted density of the proposed General Plan land use and zoning designations1. Page 3, Surrounding Land Uses and Setting 1 53 units / 7.68 acres = 6.9 units per acre 509 The project site is currently developed with the James W. Franklin Elementary School, which was closed by the Westminster School District in 1994 and comprised of four single-story brick classroom and support buildings, one prefabricated building formerly used by a Head Start preschool program that occupied the school site from 1996 through 2015; a paved recreational playground, two surface parking lots, and landscaping. A portion of the closed school site consists of an existing approximately 1.52-acre City park that is operated and maintained by the City through a joint use agreement with the Westminster School District. The joint use agreement includes Franklin Park at the Franklin School Site and the Clegg-Stacy Park at Stacey Middle School. The City of Huntington Beach and the Westminster School District will consider whether to amend the joint use agreement to remove Franklin Park if they project is approved. The site is currently developed with five access driveways and entries along Hammon Lane. However, except for the City park and adjacent school field, there is currently no public access to the site and most of the site is fenced or gated. Page 44, Land Use Planning, item a The existing site has a 1.52-acre public park (Franklin Park), which would be removed as part of the proposed project. Franklin Park is owned by the Westminster School District and is maintained by the City through a joint use agreement. The joint use agreement includes Franklin Park at the Franklin School Site and the Clegg-Stacy Park at Stacey Middle School. The City of Huntington Beach and the Westminster School District will consider whether to amend the joint use agreement to remove Franklin Park if they project is approved. Although the project includes the removal of Franklin Park, the applicant is proposing to provide a 1.07 1.30-acre public park in generally the same area of the site that Franklin Park currently exists, which would be dedicated in fee to the City. The 1.07 1.30-acre public park would exceed the minimum 0.69 0.77 acres of parkland required to be dedicated per the provisions of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) and the Quimby Act. The applicant is also proposing to improve the 1.071.30-acre public park as part of the public benefit required for approval of the Planned Unit Development. There is a zero net loss of park area as the existing park is measured at 1.30-acres and the proposed park dedication is 1.30-acres.The 0.45-acre reduction of parkland requires an amendment to the Environmental Resources and Conservation (ERC) Element of the General Plan to reflect the change in park acreage at Franklin Park and citywide. However, the ERC Element of the General Plan establishes a parkland acreage standard of five acres for every 1,000 Huntington Beach residents to ensure the community has enough parkland to serve the population. Based on the current (2017) Department of Finance population estimates of 197,574, there is approximately 5.4 acres of parkland for every 1,000 residents. The project is anticipated to increase the population by approximately 137 persons and provide a dedicated 1.0730-acre public park. While there will be an overall 0.45-acre reduction of parkland, the The City will maintain the current park per capita ratio of five acres for every 1,000 persons consistent with the goals and policies of the Environmental Resources and Conservation Element of the General Plan. 510 H u n t i n g t o n B e a c h , C a l i f o r n i a F R A N K L I N S C H O O L S I T E 0 7 . 2 7 . 1 8 SITE 511 H u n t i n g t o n B e a c h , C a l i f o r n i aF R A N K L I N S C H O O L S I T ETRACTNO. 4363TRACTNO. 4363TRACTNO. 4362TRACTNO. 4362TRACTNO. 4363TRACTNO. 4362PARK WITHPLAYGROUND, PICNICAND TURF AREAS, SEEPARK PLAN EXHIBITLOW WATERSCREENING TREE &SHRUBS TO BE HOAMAINTAINEDLOW WATER PARKWAYLANDSCAPE, HOAMAINTAINEDPRODUCTIONDRIVEWAYS(TYPICAL)STREET TREE(TYPICAL)6' HIGH TANPRECISIONBLOCK WALL3' HIGH TANPRECISIONBLOCK WALLPUBLICSIDEWALKHOMEOWNERINSTALLEDBACKYARDLANDSCAPEDEVELOPERINSTALLEDFRONT YARDLANDSCAPE(TYPICAL)STREET TREE(TYPICAL)PARKWAYLANDSCAPE TOBE HOMEOWNERMAINTAINED(TYPICAL)0'15' 30'60'"A" STREET"C" STREETSANDS DRIVE"B" STREET TROPICANA LANE HACIENDA DRIVE HAMMON DRIVE LEGENDPROPOSED LOCATIONSFOR MAILBOXESMAIL BOX UNITS AVAILABLE FROMJAYCO INDUSTRIES, WITH ONELIGHT AT EACH LOCATION6' HIGH TAN SLUMPSTONE WALL WITHCAP ANDPILASTERSACCENT ENTRYTREE AT CORNERS6' HIGH TAN SLUMPSTONE WALL WITHCAP & PILASTERWATER QUALITY BASINWITH NATIVE GRASSESLOT#3147% (262 sq. ft) 559 sq. ft3260% (410 sq. ft) 685 sq. ft3357% (388 sq. ft) 675 sq. ft3458% (411 sq. ft) 705 sq. ft3556% (381 sq. ft) 675 sq. ft3658% (411 sq. ft) 705 sq. ft3756% (381 sq. ft) 675 sq. ft3859% (417 sq. ft) 705 sq. ft3956% (381 sq. ft) 675 sq. ft4060% (440 sq. ft) 731 sq. ft4156% (380 sq. ft) 675 sq. ft4258% (411 sq. ft) 705 sq. ft4358% (410 sq. ft) 701 sq. ft4456% (381 sq. ft) 675 sq. ft4558% (411 sq. ft) 705 sq. ft157% (380 sq. ft) 665 sq. ft263% (491 sq. ft) 780 sq. ft359% (417 sq. ft) 705 sq. ft463% (491 sq. ft) 780 sq. ft559% (417 sq. ft) 705 sq. ft.663% (491 sq. ft) 780 sq. ft758% (390 sq. ft) 675 sq. ft863% (491 sq. ft) 780 sq. ft959% (417 sq. ft) 705 sq. ft1055% (334 sq. ft) 609 sq. ft1180% (591 sq. ft) 735 sq. ft1256% (381 sq. ft) 675 sq. ft1329% (127 sq. ft) 433 sq. ft1456% (386 sq. ft) 690 sq. ft1565% (511 sq. ft) 785 sq. ftFRONT YARD AREA TOTALSNOTE: Area totals and percentages are calculated based off of the areabetween the front lot line and 15' setback in each of the lot's front yards.1659% (418 sq. ft) 713 sq. ft1765% (511 sq. ft) 788 sq. ft1861% (461 sq. ft) 753 sq. ft1961% (468 sq. ft) 762 sq. ft2057% (382 sq. ft) 676 sq. ft2165% (510 sq. ft) 780 sq. ft2259% (418 sq. ft) 714 sq. ft2356% (381 sq. ft) 675 sq. ft2459% (413 sq. ft) 706 sq. ft2556% (381 sq. ft) 683 sq. ft2658% (411 sq. ft) 709 sq. ft2757% (387 sq. ft) 679 sq. ft2858% (411 sq. ft) 705 sq. ft2957% (387 sq. ft) 675 sq. ft3060% (429 sq. ft) 712 sq. ftLANDSCAPEPERCENTAGETOTALSQ. FTPLANT LEGENDSYMBOLUSAGE/TYPEBOTANICAL NAMESSIZEPARK TREESHOA LOTS & PARKSCHINUS MOLLE48" BOXGEIJERA PARVIFLORA24" BOX24" BOXEVERGREENSCREEN5 GAL.15 GAL.BOTANICAL NAMESCALIFORNIA PEPPERAUSTRALIAN WILLOWMARINA ARBUTUSTRISTANIA CONFERTA36" BOXBRISBANE BOX24" BOXCERCIS OCCIDENTALIS24" BOXWESTERN REDBUDPRODUCTION TREESTRISTANIA CONFERTA24" BOXBRISBANE BOXLAGERSTROEMIA INDICA'MUSKOGEE'ARBUTUS 'MARINA'LARGE SHRUBS3'-6' HEIGHTBACKGROUNDPLANTINGMUSKOGEE CRAPE MYRTLELOMANDRA BREEZEROSMARINUS OFF. 'HUNTINGTON CARPET'PINK LADY INDIAN HAWTHORNESILVER STREAK FLAX LILYHUNTINGTON CARPET ROSEMARYPARKWAYS, FRONT AND BACK YARDSPYRACANTHA COCCINEAVIBURNUM TINUSROSA BANKSIAE WHITEFIRETHORNLAURUSTINUSWHITE LADY BANK'S ROSETO BE HOMEOWNER INSTALLED AND MAINTAINEDALOE STRIATAANIGOZANTHOS HYBRIDS 'BUSH GOLD'AGAVE ATTENUATA 'VARIEGATA'BOUGAINVILLEA 'MONKA'CALLISTEMON VIMINALIS 'LITTLE JOHN'MUHLENBERGIA CAPILLARIS 'REGAL MIST'RHAPHIOLEPIS INDICA 'PINK LADY'CORAL ALOEKANGAROO PAWVARIEGATED FOX TAIL AGAVEMONKA BOUGAINVILLEANATAL PLUMLITTLE JOHN CALLISTEMONREGAL MIST DEER GRASSDWARF MAT RUSHWATER QUALITY BASINMEDIUM SHRUBS2'-4' HEIGHTMIDDLEGROUNDPLANTINGLOW SHRUBS &GROUNDCOVER6"-2' HEIGHTFOREGROUNDPLANTINGLANTANA 'NEW GOLD'NEW GOLD LANTANAOLEA EUROPAEA 'LITTLE OLLIE'DWARF OLIVEBLUE CHIP CREEPING JUNIPERMYOPORUM PARVIFOLIUM 'PUTAH CREEK'PUTAH CREEK MYOPORUMBOUTELOUA GRACILISBLUE GRAMA GRASSSENECIO SPECIESBLUE CHALKSTICKSDELOSPERMA LITORALEWHITE TRAILING ICE PLANTCAROLINA LAUREL CHERRYPITTOSPORUM 15 GAL.5 GAL.5 GAL.5 GAL.5 GAL.5 GAL.5 GAL.5 GAL.5 GAL.5 GAL.5 GAL.5 GAL.5 GAL.FLATSFLATS1 GAL.1 GAL.1 GAL.1 GAL.1 GAL.TABEBUIA IMPETIGINOSA24" BOXPINK TRUMPET TREE24" BOXLITTLE GEM MAGNOLIAMAGNOLIA GRANDIFLORA'LITTLE GEM'24" BOXCHINESE PISTACHEPISTACIA CHINENSISPINK LADY INDIAN HAWTHORNERHAPHIOLEPIS INDICA 'PINK LADY'LANTANA 'NEW GOLD'NEW GOLD LANTANABOUGAINVILLEA 'MONKA'CALLISTEMON VIMINALIS 'LITTLE JOHN'MONKA BOUGAINVILLEALITTLE JOHN CALLISTEMONBOUGAINVILLEA 'RASPBERRY ICE'RASPBERRY BOUGAINVILLEA15 GAL.5 GAL.5 GAL.5 GAL.1 GAL.VIBURNUM TINUSLAURUSTINUS5 GAL.5 GAL.DEVELOPER INSTALLED LANDSCAPE AREA TOTALSLANDSCAPE AREAS ALONG LOTS (1,10, 22, 31, 32 40, 43and 51)WATER QUALITY LOT:LOT TOTAL SQ. FT6,042 sq. ft5,407 sq. ftPITTOSPORUM EUGENIOIDES 'VARIEGATA'PRUNUS CAROLINIANA 'BRIGHT 'N TIGHT'CARISSA MACROCARPA 'GREENCARPET'DIANELLA TASMANICA'SILVER STREAK'JUNIPERUS HORIZONTALIS'BLUE CHIP'DECIDUOUSACCENTSEVERGREENSTREETFRONT YARDTREESDECIDUOUSACCENTEVERGREENSCREENEVERGREENSHADEACACIA REDOLENS 'LOW BOY'LOW BOY ACACIA1 GAL.BUDDLEJA DAVIDIIBUTTERFLY BUSH5 GAL.SALVIA LEUCANTHAMEXICAN BUSH SAGE5 GAL.4657% (387 sq. ft) 675 sq. ft4759% (415 sq. ft) 705 sq. ft4857% (387 sq. ft) 675 sq. ft4958% (411 sq. ft) 705 sq. ft5056% (381 sq. ft) 675 sq. ft5159% (409 sq. ft) 695 sq. ftPLAYGROUND(Ages 2-12)6' HIGH TAN PRECISIONBLOCK WALLHYBRID FESCUE TURFSODDEDPARK512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 532 533 534 535 536 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 557 558 559 560 561 562 563 564 565 566 567 568 569 570 571 572 CITY COUNCIL Sea Dance Residential Development October 15, 2018 14422 Hammon Lane General Plan Amendment No. 16-001 Zoning Map Amendment No. 16-002 Mitigated Negative Declaration No. 16-002 573 SUBJECT PROPERTY SANDS DR.HAMMON LN.SPA DR.574 Background •Westminster School District - Franklin School opened in 1962 •Closed down in 1994 due to under enrollment •Orange County Head Start leased closed school site from 1996-2015 •Existing Franklin Park – 1.30-acres privately owned and was City maintained 575 Project Overview •Mitigated Negative Declaration 16-002 : analyzes potential environmental impacts associated with the project and legislative amendments. •General Plan Amendment 16-001 : to amend the land use designation: 1. From P-RL to RL (7.45- acre residential); and 2. OS-P (1.30-acre park); and 3. Amend Figures ERC-1, ERC-2, ERC-3, and Table ERC-4 within the Environmental Resources and Conservation Element to reflect the new park layout. •Zoning Map Amendment 16-002:to amend the zoning designation: 1. From PS to RL (7.45-acre residential); and, 2. OS-PR (1.30-acre park). 576 Planning Commission Action September 11, 2018 – PC Public Hearing •PC recommended approval of the MND, GPA, and ZMA to the City Council •PC approved the Tentative Tract Map and Conditional Use Permit to permit 51 single-family dwelling units as a Planned Unit Development (PUD) with a 1.30-acre park dedication and several public benefits. No appeal was filed on the project entitlements. 577 ANALYSIS: CEQA Mitigated Negative Declaration: concludes less than significant impacts will occur with mitigation measures proposed for: •Aesthetics •Biological Resources •Cultural Resources & Tribal Resources 578 ANALYSIS: GENERAL PLAN AMENDMENT •Change from Public (underlying Low Density Residential) to Low Density Residential (RL) and Open Space Park (OS-P). •Change is compatible with existing land use designations surrounding the site. 579 ANALYSIS: ZONING MAP AMENDMENT •Change from Public-Semipublic to Low Density Residential (RL) and Open Space – Parks and Recreation Subdistrict (OS-PR). •Change is compatible with existing zoning district surrounding the site. 580 SITE PLAN 581 RECOMMENDATION Approve environmental document and legislative amendments with suggested findings of approval and adopt corresponding ordinance and resolution for: •Mitigated Negative Declaration No. 16-002 •General Plan Amendment No. 16-001 •Zoning Map Amendment No. 16-002 582 City of Huntington Beach File #:18-420 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Antonia Graham, Assistant to the City Manager Subject: Approve for Introduction Ordinance No. 4165 Adding Chapter 12.40 to the Huntington Beach Municipal Code Making Shared Mobility Devices or Businesses Unlawful Statement of Issue: At the July 2, 2018,City Council Meeting, Council directed the City Manager to work with the City Attorney to return by July 16, 2018,with a proposal for a 120-day moratorium on Shared Mobility Devices operating in the City. Subsequently, City staff held a Study Session on Shared Mobility on September 17, 2018,and Council indicated support for a ban on these devices to help ensure public safety. This Council Action seeks the adoption of an Ordinance that would ban Shared Mobility Devices from operating in the City. Financial Impact: There is no fiscal impact associated with this action. Recommended Action: Approve for Introduction Ordinance No.4165, “An Ordinance of the City Council of the City of Huntington Beach Adding Chapter 12.40 to the Huntington Beach Municipal Code Making Shared Mobility Devices or Businesses Unlawful.” Alternative Action(s): Deny the recommended ordinance and direct staff accordingly. Analysis: The concept of shared mobility has been applied to devices such as bicycles and electric scooters, and is seen as a further extension of the new shared economy (e.g. Uber, Lyft, VRBO, etc.). Shared mobility devices are especially prevalent in coastal California communities and in urbanized areas. The business model of shared mobility device companies operates such that a user can locate and unlock a mobility device using a smart phone application and by paying a fee. When the user is done with the bicycle or scooter, they are able to park the device anywhere and re-lock the device via the application. City of Huntington Beach Printed on 10/10/2018Page 1 of 2 powered by Legistar™583 File #:18-420 MEETING DATE:10/15/2018 Many users leave bicycles and scooters haphazardly parked in public pathways or sidewalks which could potentially limit or delay access for fire and police emergency vehicles, or at a minimum create a tripping hazard for pedestrians. Moreover, when bicycles and scooters are abandoned in non- designated locations, individuals with disabilities are unable to fully utilize curbs, ramps, and other ADA compliant structures that help ensure their safety. In order to address these concerns many municipalities have begun to regulate this industry. City Council directed staff on July 2, 2018,to propose a 120-day temporary land use regulation (moratorium), which was subsequently approved on July 16, 2018. In order to adopt a moratorium, State law requires a current and immediate threat to public health, safety, and welfare. In this case, the City had become aware of a growing threat to public safety in the form of these shared mobility devices creating traffic, pedestrian, and other direct access challenges in the City’s right-of-way, including streets, curbs, alleys, and sidewalks. City Council adopted the moratorium to stem the proliferation of shared mobility devices long enough for the City to fully evaluate the benefits of these devices to the community. A Study Session on Shared Mobility devices was held on September 17, 2018,and City Council discussed the public safety challenges with these devices and directed staff to return with an Ordinance banning such devices and/or businesses from operating in the City. This Ordinance will make unlawful for any operator to provide, place, or offer for use a Shared Mobility Device, or to operate as a Shared Personal Mobility Device Operator in any public right-of- way within the City. By enacting this Ordinance, the Police Department and any persons authorized by the City and having the duty to enforce this Ordinance are authorized to impound the Shared Mobility Device. Furthermore, the Ordinance sets forth a fine structure for any operator or person who violates the provisions set forth in the Ordinance. Environmental Status: Not Applicable Strategic Plan Goal: Enhance and maintain public safety Enhance and maintain infrastructure Improve quality of life Attachment(s): 1. Ordinance No.4165, “An Ordinance of the City Council of the City of Huntington Beach Adding Chapter 12.40 to the Huntington Beach Municipal Code Making Shared Mobility Devices or Businesses Unlawful.” City of Huntington Beach Printed on 10/10/2018Page 2 of 2 powered by Legistar™584 585 586 587 588 City of Huntington Beach File #:18-428 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Michele Warren, Director of Human Resources Subject: Approve Tentative Agreement and introduction of proposed Memorandum of Understanding (MOU) between the Huntington Beach Municipal Employees’ Association (MEA) and the City of Huntington Beach for October 1, 2017, through September 30, 2019 Statement of Issue: The City and the Huntington Beach Municipal Employees’ Association (MEA) have tentatively agreed to enter into a new Memorandum of Understanding (MOU) for the period October 1, 2017, through September 30, 2019. Financial Impact: Funding for the implementation of the fiscal items contained in the proposed Memorandum of Understanding will come from the General Fund. The fiscal impact for FY 2018/19 and FY 2019/20 is estimated by Finance to total $861,773 over the term of the agreement. Funds for FY 2018/19 have been included in the approved budget. No additional appropriation is required. Recommended Action: Approve the Tentative Agreement and the introduction of the proposed Memorandum of Understanding Between the Huntington Beach Municipal Employees’ Association and the City of Huntington Beach for the period October 1, 2017, through September 30, 2019. Alternative Action(s): Do not approve the tentative agreement and the introduction of the proposed successor MOU for MEA employees and direct staff to continue to meet and confer with the Association or utilize the impasse procedures contained within the City’s Employer-Employee Relations Resolution. Analysis: Representatives for the City and the 375+ member MEA have been involved in active negotiations over an extended period and have successfully completed the meet and confer process with a tentative agreement on a proposed Memorandum of Understanding (MOU) for the period of October 1, 2017, through September 30, 2019. City of Huntington Beach Printed on 10/10/2018Page 1 of 3 powered by Legistar™589 File #:18-428 MEETING DATE:10/15/2018 Highlights from the listing of tentatively agreed upon contract changes include the following: Term of Agreement October 1, 2017, through September 30, 2019 Medical Benefits The City’s monthly contribution to the current Teamsters medical plan rates will increase as follows upon final City Council approval: ·Single $100 ·Two Party $100 ·Family $100 ·Opt-Out $100 The City’s monthly contribution to the Teamsters medical plan rates will increase $50 per month, effective October 1, 2019. City contributions to dental and vision benefits will not increase during the term of the agreement. Leave Benefits Full-time unit employees shall receive 30 hours for use as Personal Days. Part-time unit members shall receive a proportional allocation of hours based upon a full-time equivalent. Personal Days have no cash value. Unused Personal Days will be forfeited. This provision will sunset at the expiration of the agreement. The Association and the City intend to execute a separate side letter agreement related to Holiday Closure for 2018 for December 24, 2018, and December 31, 2018. There were other appropriate modifications to a variety other provisions including, but not limited to, deletion of obsolete language, regulatory compliance language changes, and general clean-up language. A summary of these and all other negotiated provisions are included as Exhibit “A.” Environmental Status: N/A Strategic Plan Goal: Strengthen economic and financial sustainability Attachment(s): 1. Tentative Agreement 2. Fiscal Impact Report City of Huntington Beach Printed on 10/10/2018Page 2 of 3 powered by Legistar™590 File #:18-428 MEETING DATE:10/15/2018 3. Proposed Memorandum of Understanding - Exhibit “A” 4. PowerPoint Presentation - MEA City of Huntington Beach Printed on 10/10/2018Page 3 of 3 powered by Legistar™591 592 593 594 Memorandum of Understanding between Huntington Beach Municipal Employees’ Association and City of Huntington Beach October 1, 20157 – September 30, 20179 595 PREAMBLE .................................................................................................................. 11 ARTICLE I – TERM OF MOU ....................................................................................... 11 ARTICLE II – REPRESENTATIONAL UNIT/CLASS .................................................... 11 ARTICLE III – MANAGEMENT RIGHTS ........................................................................ 2 ARTICLE IV – EXISTING CONDITIONS ........................................................................ 2 ARTICLE V – SEVERABILITY ....................................................................................... 2 ARTICLE VI – SALARY SCHEDULE ........................................................................... 33 A. CLASSIFICATION AND SALARY RATES ...................................................................... 33 1. Wage Increases ........................................................................................................................... 3 ARTICLE VII – SPECIAL PAY ..................................................................................... 33 A. EDUCATION .......................................................................................................... 33 1. Tuition Reimbursement ............................................................................................................. 33 B. ASSIGNMENT PAY ................................................................................................. 33 1. Leadworker Differential .............................................................................................................. 33 2. Shift Differential ......................................................................................................................... 33 a. Afternoon Shift ...................................................................................................................... 33 b. Night Shift ............................................................................................................................. 44 c. Shifts Defined ....................................................................................................................... 44 C. SPECIAL CERTIFICATION/SKILL PAY ........................................................................ 44 1. Bilingual Skill .............................................................................................................................. 44 2. Building Plan Checker ............................................................................................................... 44 a. Plans Examiner International Conference of Building Officials (ICBO) Certification .............. 4 b. Engineering In Training (EIT)/Associate of Arts (AA) Degree in Engineering ........................ 4 3. Process Owner Assignment Pay ................................................................................................. 5 4. Hazardous Materials Duty Assignment Pay ................................................................................ 5 ARTICLE VIII – UNIFORMS, CLOTHING, TOOLS AND EQUIPMENT ....................... 55 A. UNIFORMS AND SAFETY SHOES ................................................................................ 5 1. Safety Shoes – Cost .................................................................................................................... 5 2. Safety Glasses ............................................................................................................................. 5 B. TOOL ALLOWANCE ................................................................................................ 55 C. VEHICLE USE ........................................................................................................ 66 ARTICLE IX – HOURS OF WORK/OVERTIME ........................................................... 66 A. WORK SCHEDULE ................................................................................................. 66 1. Pay Definitions ............................................................................................................................. 6 2. Defined Workweek under Fair Labor Standards Act (FLSA)..................................................... 66 3. Flex Schedule and Alternative Work Schedule - Civic Center Employees ............................... 67 a. 5/40 Work Schedule ............................................................................................................... 7 b. 9/80 Work Schedule ............................................................................................................... 7 c. 4/10 Work Schedule ............................................................................................................... 7 d. Existing Alternative Work Schedules ...................................................................................... 8 B. OVERTIME/COMPENSATORY TIME ............................................................................ 8 596 1. FLSA Workweek and Employee Pay Period ............................................................................... 8 2. Overtime ...................................................................................................................................... 8 3. Work Shift that Exceeds Thirteen (13) Hours .............................................................................. 8 C. EMPLOYEE FATIGUE ................................................................................................ 9 D. CALLBACK .............................................................................................................. 9 E. MANDATORY STANDBY ............................................................................................ 9 F. ACTING ASSIGNMENT .............................................................................................. 9 G COURT STANDBY TIME AND COURT APPEARANCE TIME ........................................... 10 ARTICLE X – HEALTH AND OTHER INSURANCE BENEFITS .............................. 1010 A. HEALTH ............................................................................................................ 1010 B. ELIGIBILITY CRITERIA AND COST ............................................................................. 10 1. City and Employee Paid Medical Insurance – Employees and Dependents ............................ 10 2. Health and Other Insurance Premiums ..................................................................................... 10 3. Part Time Employee Contributions ........................................................................................... 12 C. COBRA ........................................................................................................... 1313 D. LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE ............................. 12 E. LONG TERM DISABILITY INSURANCE (LTD) .......................................................... 1313 F. MEDICAL CASH-OUT ......................................................................................... 1313 G. SECTION 125 PLAN ........................................................................................... 1414 H. MISCELLANEOUS ............................................................................................... 1414 5. Health Plan Over-Payments ...................................................................................................... 13 I. RETIREE MEDICAL COVERAGE FOR RETIREES NOT ELIGIBLE FOR THE CITY RETIREE MEDICAL SUBSIDY PLAN ........................................................................................ 14 J. POST-65 SUPPLEMENTAL MEDICARE COVERAGE .................................................... 14 ARTICLE XI – RETIREMENT ................................................................................... 1516 A. BENEFITS ......................................................................................................... 1516 1. Self-Funded Supplemental Retirement Benefit ..................................................................... 1516 2. Deferred Compensation ........................................................................................................ 1616 3. Medical Insurance for Retirees .............................................................................................. 1616 B. CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (CAL PERS)................... 1718 1. Retirement Formula and Reporting ........................................................................................... 16 C. PRE-RETIREMENT OPTIONAL SETTLEMENT 2 DEATH BENEFIT .................................... 16 D. FOURTH LEVEL OF 1959 SURVIVOR BENEFITS ......................................................... 16 ARTICLE XII – LEAVE BENEFITS ........................................................................... 1718 A. LEAVE W ITH PAY .............................................................................................. 1819 1. General Leave ....................................................................................................................... 1819 a. Accrual .................................................................................................................................. 17 597 b. Eligibility and Approval .......................................................................................................... 17 c. Conversion to Cash .............................................................................................................. 17 d. One (1) Week Minimum Vacation Requirement ................................................................... 17 2. City Paid Holidays .................................................................................................................. 1920 b. City Observed Holiday .......................................................................................................... 18 c. Holiday Paid Time Off for Part-Time Employees .................................................................. 18 d. Holiday Pay for Work on a City Observed Holiday ............................................................... 18 e. Holiday Pay for Work on an Actual Holiday (Not the City Observed Date) .......................... 18 g. CalPERS Reporting of Holiday Pay ...................................................................................... 19 3. Sick Leave ............................................................................................................................. 2021 a. Accrual .................................................................................................................................. 19 b. Credit .................................................................................................................................... 19 c. Usage.................................................................................................................................... 19 d. Payoff at Termination ............................................................................................................ 19 e. Extended Absences .............................................................................................................. 19 4. Bereavement Leave............................................................................................................... 2021 5. Association Business ............................................................................................................. 2021 6. Jury Duty ................................................................................................................................ 2022 7. Leave Benefits Entitlement ........................................................................................................ 20 8. Personal Days ........................................................................................................................... 20 ARTICLE XIII – CITY RULES ................................................................................... 2223 ARTICLE XIV –MISCELLANEOUS .......................................................................... 2223 A. GRIEVANCE ARBITRATION .................................................................................. 2223 B. PROMOTIONAL PROCEDURES ............................................................................. 2223 1. Tie Scores .................................................................................................................................. 21 2. Salary Upon Promotion ............................................................................................................. 21 C. LABOR-MANAGEMENT RELATIONS COMMITTEE .................................................... 2324 D. COPIES OF MOU .............................................................................................. 2324 E. POSITION CLASSIFICATION ISSUES ..................................................................... 2324 1. Class Specifications................................................................................................................... 22 2. Reclassification Impact .............................................................................................................. 22 F. CLASS A AND B DRIVER LICENSE FEES ............................................................... 2324 G. DEFERRED COMPENSATION LOAN PROGRAM ...................................................... 2325 H. PERFORMANCE EVALUATIONS/W RITTEN REPRIMAND APPEALS ............................. 2425 I. MEA LETTER OF INTRODUCTION ........................................................................ 2425 J. DEPARTMENT OF TRANSPORTATION (DOT) RANDOM ALCOHOL AND CONTROLLED SUBSTANCE TESTING ............................................................................................ 23 K. UPDATE EMPLOYEE-EMPLOYER RELATIONS RESOLUTION ........................................ 23 L. REQUIRED FINGERPRINTING OF EMPLOYEES ........................................................... 23 M. BEACH PARKING ................................................................................................... 23 N. REASONABLE SUSPICION ALCOHOL AND CONTROLLED SUBSTANCE TESTING ............. 23 598 ARTICLE XV – CITY COUNCIL APPROVAL ........................................................... 2526 LIST OF MOU EXHIBITS .......................................................................................... 2627 EXHIBIT A – CLASS/SALARY SCHEDULE ................................................................ 26 EXHIBIT B – UNIFORM POLICY.................................................................................. 39 EXHIBIT C – VEHICLE USE POLICY .......................................................................... 45 EXHIBIT D – PROVISIONS OF THE RETIREE MEDICAL SUBSIDY PLAN ............... 48 EXHIBIT E – 9/80 WORK SCHEDULE ......................................................................... 52 EXHIBIT F – 4/10 WORK SCHEDULE ......................................................................... 54 EXHIBIT G – AGENCY SHOP AGREEMENT .............................................................. 56 EXHIBIT H - CATASTROPHIC LEAVE DONATION PROGRAM……………………… 59 599 Memorandum of Understanding between The City of Huntington Beach (hereinafter called City) and The Huntington Beach Municipal Employees’ Association (hereinafter called Association or MEA) PREAMBLE WHEREAS, pursuant to California law, the City, acting by and through its designated representatives, duly appointed by the governing body of said City, and the representatives of the Association, a duly recognized employee Association, have met and conferred in good faith and have fully communicated and exchanged information concerning wages, hours and other terms and conditions of employment for the period October 1, 20157 through September 30, 20179; and WHEREAS, the representatives of the City and the Association desire to reduce their agreements to writing, NOW THEREFORE, this Memorandum of Understanding (MOU) is made to become effective October 1, 20157 and it is agreed as follows: ARTICLE I – TERM OF MOU A. This Memorandum of Understanding shall be in effect for a term commencing on October 1, 20157 through September 30, 20179. B. This Agreement constitutes the entire Agreement of the parties with respect to improvements or changes in the salaries and monetary benefits for employees represented by the Association for the duration of this Agreement. ARTICLE II – REPRESENTATIONAL UNIT/CLASS It is recognized that the Association is the employee organization which has the right to meet and confer in good faith with the City on behalf of permanent employees of the City within those class titles set out in Exhibit A attached hereto and incorporated herein. The term "permanent employee” herein shall be referred to as “employee” and is used only to determine entitlement to certain benefits provided by this MOU and is defined as follows; an employee that has completed or is in the process of completing a probationary period in a permanent position in the competitive service in which the employee regularly works twenty (20) hours or more per week. Additionally, the representation unit shall include all non-safety, non-management classifications which are created after execution of this Agreement and are not included in another representation unit or determined in accordance with the Employer-Employee Relations Resolution to be more appropriately designated as Non-Associated (NA) classifications. 600 The City Manager reserves the right to designate up to seven (7) Association employees as confidential on an annual basis, or as needed. The confidential employee designations shall be determined by the City Manager for those employees having access to or preparing confidential materials and/or information and/or recommendations on behalf of the City in its dealings with employee associations. The City shall provide the Association with the names of the employees who are designated as confidential. ARTICLE III – MANAGEMENT RIGHTS The parties agree the City has the right to make unilateral management decisions that are outside the scope of bargaining, as defined by state and federal law and Public Employment Relations Board (PERB) decisions. Except as expressly abridged or modified herein, the City retains all rights, powers and authority with respect to the management and direction of the performance of City services and the work forces performing such services, provided that nothing herein shall change the City’s obligation to meet and confer as to the effects of any such management decision upon wages, hours and terms and conditions of employment or be construed as granting the City the right to make unilateral changes in wages, hours and terms and conditions of employment. Such rights include, but are not limited to, consideration of the merits, necessity, level or organization of City services, including establishing of work stations, nature of work to be performed, contracting for any work or operation, reasonable employee performance standards, including reasonable work and safety rules and regulations in order to maintain the efficiency and economy desirable for the performance of City services. ARTICLE IV – EXISTING CONDITIONS Except as expressly provided herein, the adoption of this Memorandum of Understanding shall not change existing benefits, and terms and conditions of employment which have been established in prior Memoranda of Understanding, and/or provided for in the Personnel Rules of the City of Huntington Beach. ARTICLE V – SEVERABILITY If any Article, Sub-Article, sentence, clause, phrase or portion of this Agreement, or the application thereof to any person, is for any reason held to be invalid or unenforceable by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Agreement or its application to other persons. The City and the Association hereby agree that in the event any state or federal legislative, executive or administrative provision purports to nullify or otherwise adversely affect the wages, hours and other terms and conditions of employment contained in this Agreement or similarly purports to restrict the ability of the parties to negotiate a successor agreement, the City and the Association shall, without prejudice to either party’s judicial remedies, endeavor to agree to alternative contractual provisions which are not adversely affected by said legislative, executive or administrative provision. 601 ARTICLE VI – SALARY SCHEDULE A. Classification and Salary Rates All employees are required to utilize direct deposit of payroll checks. The City shall issue each employee direct deposit advice (payroll receipt) each pay period that details all income, withholdings, and deductions. 1. Wage Increases a. Effective the beginning of the pay period that includes October 1, 2016, all bargaining unit members will receive a 2.0% wage increase. ARTICLE VII – SPECIAL PAY A. Education 1. Tuition Reimbursement Upon approval of the Department Head and the Human Resources Director, employees may be compensated for courses from accredited vocational and educational institutions. Tuition reimbursement shall be limited to job related courses or job related educational degree objectives and requires prior approval by the Department Head and Human Resources Director. Education costs shall be reimbursed to employees on a first come, first served basis for a full refund for tuition, books, parking (if a required fee) and any other required fees upon presentation of receipts. On a first come, first served basis, the maximum annual benefit per fiscal year for each employee is $5,250 (five thousand two hundred-fifty dollars), until the maximum allocation for the entire bargaining unit of seventy five thousand dollars ($75,000) in each fiscal year period has been allocated. Reimbursements shall be made when the employee presents proof to the Human Resources Director that he/she has successfully completed the course with a grade of “C” or better; or a “Pass” if taken for credit. B. Assignment Pay 1. Leadworker Differential Any employee classified as “Leadworker” shall receive no less than 8% above the highest classification, which is assigned to the Leadworker to lead. 2. Shift Differential a. Afternoon Shift Employees required to work on a regular assigned shift that occurs between the hours of 4:00 PM and midnight, shall be paid a special pay equal to five percent (5%) of the employee’s base hourly rate of pay (as defined in Article IX) for all work performed during said shift. 602 b. Night Shift Employees required to work on a regularly assigned shift that occurs between midnight and 8:00 AM shall be paid a special pay equal to ten percent (10%) of the employee’s base hourly rate (as defined in Article IX). c. Shifts Defined Employees will be considered as assigned to the afternoon shift (4:00 PM to midnight) or the night shift (midnight to 8:00 AM) when five (5) or more hours of their regularly assigned shifts occur in the afternoon or night shift as defined herein. C. Special Certification/Skill Pay 1. Bilingual Skill Employees who are required by their Department Head to use Spanish, Vietnamese, or American Sign Language skills as part of their job assignment, shall be paid an additional five-percent (5%) of their base hourly rate (as defined in Article IX) in addition to their regular bi-weekly pay. The special pay shall be effective the first full pay period following certification as verified to the Department Head in writing by the Human Resources Director or designee. Employees may accept assignments utilizing bilingual skills in other languages on a short-term assignment with approval by the City Manager. Such employees shall receive the additional five percent (5%) of their base hourly rate of pay (as defined in Article IX) for every bi-weekly pay period that the assignment is in effect. In order to be eligible for said compensation, employee’s language proficiency will be tested and certified by the Human Resources Director or designee. The parties agree that to the extent permitted by law, Bilingual Skill Pay is special compensation and shall be reported to CalPERS as such pursuant to Title 2 CCR, Section 571(a)(4) Bilingual Premium. 2. Building Plan Checker a. Plans Examiner International Conference of Building Officials (ICBO) Certification Effective December 1, 2007, the ICBO certification pay ended. All employees receiving ICBO certification pay prior to this date shall continue to receive this pay while they remain in their present classification. Any change in classification will result in the ICBO pay ending for that employee. b. Engineering In Training (EIT) /Associate of Arts (AA) Degree in Engineering Effective December 1, 2007, the EIT/AA pay ended. All employees receiving EIT/AA pay prior to this date shall continue to receive this pay while they remain in their present classification. Any change in classification will result in the EIT/AA pay ending for that employee. 603 3. Process Owner Assignment Pay Effective December 1, 2007, Process Owner Assignment Pay ended. All employees receiving Process Owner Assignment Pay prior to December 1, 2007 shall continue to receive this pay while they remain assigned to their position. 4. Hazardous Materials Duty Assignment Pay Effective December 1, 2007, eEmployees assigned HazMat Duty by their department head or his or her designee shall receive five percent (5%) of their base salary for the specific hours performing the HazMat Duty assignment. The parties agree that to the extent permitted by law, Hazardous Materials Duty Assignment Pay is special compensation and shall be reported as such to CalPERS pursuant to Title 2 CCR, Section 571(a)(4) Hazard Premium. ARTICLE VIII – UNIFORMS, CLOTHING, TOOLS AND EQUIPMENT A. Uniforms and Safety Shoes The City's Uniform and Safety Shoe Policy shall be set forth in Exhibit B, a copy of which is attached hereto and incorporated herein by this reference, provided however, that employees represented by MEA working in the Police Department shall be issued property in accordance with the equipment issue form for the particular position to which they are assigned. 1. Safety Shoes – Cost The City shall furnish safety shoes in accordance with the procedures and guidelines as set forth in Exhibit B, provided however, that the maximum amount to be reimbursed for a pair of safety shoes will not exceed two hundred and twenty-five dollars ($225.00) per pair every six (6) months or sooner, if necessary. 2. Safety Glasses Prescription safety glasses shall be provided upon the approval of the Supervisor. The cost of prescription safety glasses shall not exceed two hundred ninety-nine dollars ($299.00) in each two (2) year period, or sooner if medically prescribed. B. Tool Allowance Those employees, who are required to furnish their own personal tools for use on the job, shall be provided with a tool allowance to offset a portion of the cost for said tools that are lost, stolen or broken when in use on the job. Such allowance shall be eight hundred dollars ($800.00) per year, payable in January of each year, separate from payroll checks to those employees on active duty. In the event an employee is hired or separates, his/her tool allowance for that calendar year shall be prorated on the basis of the total number of months in which he/she was employed on the first working day of the year. It is understood that the employee has the responsibility to exercise care and diligence in preventing the loss, theft and breakage of his/her personal tools. The following classifications are eligible to receive tool allowance: 604  Equipment/Auto Maintenance Crewleader  Equipment/Auto Maintenance Leadworker  Helicopter Maintenance Technician  Mechanic I  Mechanic II  Mechanic III  Senior Helicopter Maintenance Technician C. Vehicle Use The City Vehicle Use Policy is attached in Exhibit C. Approval is required by the City Manager or designee for any City vehicle to be taken home by an employee. 1. Unit employees subject to the vehicle use policy in Exhibit C shall be required to participate in the DMV Pull Notice program. ARTICLE IX – HOURS OF WORK/OVERTIME A. Work Schedule It is the intent of the City to provide an opportunity for employees to select a flexible (flex) schedule and/or alternative work schedule that is consistent with the City’s objective that such schedules shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. 1. Pay Definitions For the purpose of this Agreement, the following definitions shall apply: a. Base Hourly Rate of Pay is defined as the hourly rate of pay that is identified in Exhibit A, Salary Schedules. b. Regular Rate of Pay is defined as the base hourly rate plus (including) special pays as identified in Article VII. c. Overtime Rate of Pay is defined as the base hourly rate of pay times one and one half (1 ½) plus (including) special pays as identified in Article VII. d. Hours of Work includes: General Leave, Holidays, Sick Leave and Compensatory Time for the purpose of calculating overtime. 2. Defined Workweek under Fair Labor Standards Act (FLSA) It is understood that the City has established a workweek for each covered employee which meets the requirements of the FLSA and which will not result in overtime compensation as part of a normal work schedule. Each non-exempt employee shall be assigned a designated FLSA workweek for the correct calculation of overtime. This designated workweek shall not change unless extraordinary circumstances require a change in the employee’s regular work schedule due to operational need. A change in the designated FLSA workweek shall be recommended by the Department Head and approved by the Human Resources Director. 3. Flex Schedule and Alternative Work Schedule - Civic Center Employees 605 With Supervisor and Department Head approval employees may flex regular scheduled start times between the hours of 7:00 A.M. to 9:00 A.M. in half-hour increments (i.e. 7:00 A.M., 7:30 A.M., 8:00 A.M., 8:30 A.M., and 9:00 A.M.). Flex schedules shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. Once a flex schedule is established, an employee shall not change that schedule until the end of the pay period, with the approval of the Department Head. Employees will have the option of working a 5/40 or 9/80 work schedule with Supervisor and Department Head approval. Employees assigned to the Police Department shall retain the option of working the 4/10 work schedule with Supervisor and Department Head approval. In order to maintain service to the public, departmental effectiveness, productivity and/or efficiency, a Department Head may assign an employee a different work schedule that is in compliance with the requirements of FLSA with City Manager approval. a. 5/40 Work Schedule The 5/40 work schedule shall be defined as working five (5) eight (8) hour days Monday through Friday each week plus a one (1) hour unpaid lunch during each work shift, totaling a forty (40) hour workweek. The assigned 5/40 work schedule must be in compliance with the requirements of FLSA. b. 9/80 Work Schedule i. Civic Center Employees The 9/80 work schedule, as outlined in Exhibit E, shall be defined for all employees assigned to the Civic Center as working nine (9) days for eighty (80) hours in a two (2) week pay period by working eight (8) days at nine (9) hours per day and working one (1) day (Friday) for eight (8) hours, plus a one (1) hour unpaid lunch during each work shift, totaling forty (40) hours in each FLSA workweek. The 9/80 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. 2. Non Civic Center Employees The 9/80 work schedule, as outlined in Exhibit E, shall be defined for all employees not assigned to the Civic Center as working nine (9) days for eighty (80) hours in a two (2) week pay period by working eight (8) days at nine (9) hours per day and working one (1) day (Friday) for eight (8) hours, plus a one (1) hour unpaid scheduled lunch during each work shift, totaling forty (40) hours in each FLSA workweek. The 9/80 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. c. 4/10 Work Schedule The 4/10 work schedule, as outlined in Exhibit F, shall be defined as working four (4) ten (10) hour days each week plus a one (1) hour unpaid lunch during each work shift, totaling forty (40) hours in each FLSA workweek. The assigned 4/10 work schedule must be in compliance with the requirements of FLSA. The 4/10 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. 606 d. Existing Alternative Work Schedules Non Civic Center employees who had an alternative work schedule (9/80 or 4/10) prior to February 1, 2003 may retain that alternative work schedule. Employees assigned to Beach Operations may be required to work a 4/10 work schedule. Civic Center employees who had an alternative work schedule (9/80) prior to February 1, 2003 may revert to that alternative work schedule (9/80) in the event his/her Supervisor and/or Department Head determine that the 9/80 schedule set forth in this Article is inappropriate for the employee’s classification. B. Overtime/Compensatory Time 1. FLSA Workweek and Employee Pay Period Each employee is assigned a designated workweek as a seven (7) day workweek that begins and ends based upon a defined work schedule. Each employee’s pay period is a fourteen (14) day cycle that consists of two (2) consecutive workweeks. It is the policy of the City that overtime is to be used only as needed or under emergency conditions, as approved by the City Manager or designee. 2. Overtime FLSA “non-exempt” employees shall be compensated at the Overtime Rate (in the form of pay or compensatory time) for hours worked over forty (40) hours in a workweek. 3. Work Shift that Exceeds Thirteen (13) Hours An employee who performs authorized work immediately preceding or upon completion of a regular work shift (extension of a workday) that exceeds thirteen (13) hours in a shift shall be compensated as follows: a. One and one-half (1 ½) times the employee’s regular rate of pay for all hours worked in excess of their regular workday, up to and including thirteen (13) hours in any workday, and b. Two (2) times the employee’s regular rate for all hours worked in excess of thirteen (13) hours in a workday. 4. The employee’s Supervisor shall determine if employee receives overtime pay or compensatory time. Consideration shall be given to effectuating the request of the employee; however, the maximum accrual for compensatory time shall be one hundred forty (140) hours. 5. Two (2) times per fiscal year an employee may cash out hours of banked compensatory time, for maximum annual cash out amount of one hundred ten (110) hours. The employee shall give payroll two (2) weeks advance notice of their decision to exercise such option. C. Employee Fatigue An employee who is called back to work following the end of their regularly scheduled work shift and proceeds to work more than five (5) consecutive overtime hours shall then be entitled to an eight (8) hour rest period without compensation, upon completion of the assignment. Regularly scheduled lunch periods are not considered part of this rest period. 607 If the eight (8) hour rest period extends into the employee’s next regularly scheduled work shift, the employee shall suffer no loss of pay or accrued leave as a result thereof. As far as is practicable, employees who have earned a rest period shall be relieved at the start of their regular work shift in order to take such rest period. This application of this provision shall include scheduled work assignments and extended work assignments. D. Callback Employees called back to work shall be compensated a minimum of two (2) hours of overtime pay at the regular rate of pay. A Supervisor shall notify an employee, in advance, of the need to work overtime. Where overtime is worked as an extension of the workday, it shall not be considered call back. While overtime may be required to be worked, it is the City's policy to discourage the working of overtime, and to provide reasonable notification to an employee should overtime be required. An employee called back to work less than two (2) hours before their shift begins shall not be paid Call Back pay but will be paid in accordance with Article IX.C. Overtime/Compensatory Time. E. Mandatory Standby An employee who is placed on standby status by their Supervisor shall be compensated at an hourly rate equal to 0.180 of their base hourly rate of pay for the entire period of such assignment. F. Acting Assignment If an employee is formally assigned to work in a higher classification on a temporary basis for greater than three (3) consecutive weeks, the employee shall be compensated for all hours worked in the higher classification at a rate which is at least five and one-half percent (5 1/2%) above their pay step, but such pay increase shall not exceed eleven percent (11%) and not to exceed the top step of the pay range for all hour s worked in the higher classification. In the event a non-exempt employee is assigned to act in a classification that is exempt from overtime, the employee shall retain all special pays of their non-exempt classification and shall receive compensation for hours worked over forty (40) hours in the designated FLSA workweek on a hour for hour basis, at the regular rate of pay. Such pay shall be paid or credited to the employee’s compensatory time off balance at the discretion of the Department Head or designee. Acting assignments are not intended to exceed six (6) months unless extraordinary circumstances warrant an extension as recommended and approved by the Human Resources Director. Under no circumstances shall an acting assignment exceed (1) one year nor shall it be considered a reclassification or a promotion Employees on acting assignment obtain no property rights in the acting assignment and may be returned to their regular position at any time. Upon promotion to an FLSA exempt classification, all compensatory time off shall be cashed out prior to promotion at the employee’s current regular rate of pay in the non- exempt classification. G. Court Standby Time and Court Appearance Time 608 An employee who is required to perform court standby duty in the performance of their official capacity with the City, shall be eligible for Court Standby Time or Court Appearance Time. An employee who is required to be on standby for a court appearance during other than their regularly scheduled work hours shall receive a minimum of three (3) hours time at their regular rate of pay for each morning and afternoon court session. In the event an employee is required to appear in court during other than their regularly scheduled work hours, the employee shall receive a minimum of three (3) hours at the overtime rate; provided however, that if such time overlaps with the employee’s regularly scheduled work hours, this provision shall be limited to those hours occurring prior to or after the employee’s regularly scheduled work time. A legally served subpoena or the direction of the Department Head shall be required to support the payment of Court Standby or Appearance Time. ARTICLE X – HEALTH AND OTHER INSURANCE BENEFITS A. Health The City shall make available group medical, dental and vision benefits to all employees. A copy of the medical, dental and vision plan brochures may be obtained from the Human Resources Office. B. Eligibility, Criteria and Cost 1. City and Employee Paid Medical Insurance – Employees and Dependents The City and employee shall each pay for health insurance premiums for qualified employees and dependent(s) effective the first of the month following the employee’s date of hire. The employee deduction for premium contributions shall be aligned with the effective date of coverage and the ending date of coverage upon the employee’s separation. The payroll deduction amount shall begin no later than the first full pay period following the effective date of coverage and pro-rated for coverage through the end of the month in which employment was separated. 2. Health and Other Insurance Premiums a. If an employee’s health insurance premiums (medical, dental and or vision) exceed the City’s contribution, the employee shall be responsible for paying the difference between the cost of the premiums and the City’s contribution. 609 b. 20168/19 Premiums and Contributions 2016 Health Premiums and Contributions Effective 10/1/2015* & 1/1/16 MEA (with Teamsters Medical + Rx) Plan Tier Monthly Premium ER Monthly Contribution EE Monthly Contribution EE Bi- Weekly Contribution Teamsters Kaiser* Single 568.00 415.43 152.57 70.42 Two-Party 1,069.00 790.80 278.20 128.40 Family 1,540.00 1,008.44 531.56 245.34 Anthem Blue Cross HMO* Single 568.00 488.83 79.17 36.54 Two-Party 1,069.00 947.37 121.63 56.14 Family 1,540.00 1,196.88 343.12 158.36 75%/25% Reimb Plan (PPO) Single 568.00 488.83 79.17 36.54 Two-Party 1,069.00 957.37 111.63 51.52 Family 1,540.00 1,206.88 333.12 153.75 Delta Dental PPO Single 58.10 53.44 4.66 2.15 Two-Party 108.60 100.34 8.26 3.81 Family 143.20 135.09 8.11 3.74 Delta Care HMO Single 30.11 23.48 6.63 3.06 Two-Party 51.19 39.95 11.24 5.19 Family 78.29 61.07 17.22 7.95 VSP Single 25.12 21.88 3.24 1.50 Two-Party 25.12 21.88 3.24 1.50 Family 25.12 21.88 3.24 1.50 Medical Opt Out: $365.43 per month ($168.66 bi-wkly) *Medical Increase effective 10/1/15 - Dental & Vision rates effective 1/1/16 2019 Health Premiums and Contributions Effective 11/1/2018 & 1/1/2019 MEA (with Teamsters Medical + Rx) Plan Tier Monthly Premium Employer Monthly Contribution Employee Monthly Contribution Employee Bi-Weekly Contribution Teamsters Kaiser* Single 679.00 679.00 0.00 0.00 610 Two-Party 1,276.00 1,257.00 19.00 8.77 Family 1,835.00 1,507.00 328.00 151.38 Anthem Blue Cross HMO* Single 679.00 679.00 0.00 0.00 Two-Party 1,276.00 1,257.00 19.00 8.77 Family 1,835.00 1,507.00 328.00 151.38 75%/25% Reimb Plan (PPO)* Single 679.00 679.00 0.00 0.00 Two-Party 1,276.00 1,257.00 19.00 8.77 Family 1,835.00 1,507.00 328.00 151.38 Delta Dental PPO Single 56.00 53.44 2.56 1.18 Two-Party 104.60 100.34 4.26 1.97 Family 137.90 135.09 2.81 1.30 Delta Care HMO Single 30.11 23.48 6.63 3.06 Two-Party 51.19 39.95 11.24 5.19 Family 78.29 61.07 17.22 7.95 VSP Vision Single 23.33 21.88 1.45 0.67 Two-Party 23.33 21.88 1.45 0.67 Family 23.33 21.88 1.45 0.67 Medical Cash Out - (As stated in Article X.F.): $679.00 per month ($313.38 bi -weekly) *Medical Increase effective 10/1/18 - Dental & Vision rates effective 1/1/19 c. Future Premiums and City Contributions Effective the beginning of the pay period following City Council approval of this agreement, the City’s monthly contribution to Medical premiums (only) shall increase $100 per plan, per tier. Effective October 1, 2016, the City’s monthly contribution to Medical premiums (only) shall increase $100 per plan, per tier. Effective the beginning of the pay period following City Council final approval of this agreement, the City’s monthly contribution to Medical premiums (only) shall increase by a maximum of $100 per plan, per tier (not to exceed the monthly plan premium) as follows: Single $679.00 Two Party $1,257.00 Family $1,507.00 Effective October 1, 2019, the City’s monthly contribution to Medical premiums (only) shall increase by a maximum of $50.00 per plan, per tier (not to exceed the monthly plan premium) as follows: Single $729.00 Two Party $1,307.00 611 Family $1,557.00 The City’s contribution to Delta Dental PPO, Delta Care HMO and Vision Service plans will not increase. The employee shall pay any increased amount above the City’s contribution caps. 3. Part Time Employee Contributions Part-time employees hired after July 1, 2006, shall receive a pro-rated amount of the City’s contribution rate as established for full-time employees based on the employee’s work schedule, either fifty percent (50%) for half-time (1/2) or seventy-five percent (75%) for three-quarter time (3/4). 4. Employee payroll deductions shall be made on a pre-tax basis. 5. The dental insurance maximum coverage is two thousand dollars ($2,000.00) per year. C. COBRA Employees who terminate their employment with the City and their dependent(s) shall have any and all the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) benefits as well as Cal-COBRA (AB1401) to which the law entitles them. D. Life and Accidental Death and Dismemberment Insurance Each employee shall be provided with fifty-thousand dollars ($50,000.00) of life insurance and fifty-thousand dollars ($50,000.00) of accidental death and dismemberment insurance coverage paid for by the City. Each employee shall have the option, at his/her own expense, to purchase additional amounts of life insurance and accidental death and dismemberment insurance to the extent provided by the City’s current providers. E. Long Term Disability Insurance (LTD) The City shall provide for each employee at the City's expense a long term disability insurance plan. The parties agree to exclude the first year of job related illness or injury from coverage on condition that the plan provides for a coordination with Sick Leave, General Leave and holidays which is satisfactory to the Association. A copy of the LTD insurance plan may be obtained from the Human Resources Office. The intent of long term disability insurance is to assist employees who are off work for an extended period of time. While long term disability benefits can be coordinated with accrued leave benefits to achieve one hundred percent (100%) of regular rate of pay, no employee may receive more than their regular rate of pay while receiving disability benefits and paid leave. F. Medical Cash-Out Group health insurance for this unit is provided by the Teamsters Miscellaneous Security Trust Fund. If an employee obtains approval from the Teamsters Miscellaneous Security Trust Fund to suspend medical and prescription benefits, they he/she may receive a medical cash-out. The amount of cash-out is equal to the City’s contribution to the lowest cost employee-only medical premium offered to this unit, less fifty dollars ($50.00) for life insurance and mental health/substance abuse benefits. Evidence of approved suspension must be submitted to the Human Resources Department. Medical cash-out would commence the beginning of the first pay period following receipt of evidence by the City or the beginning of the first pay period following 612 the effective date of the approved suspension granted by the Teamsters Miscellaneous Security Trust Fund, whichever is the later date. Effective October 1, 2019, Medical Cash-Out is subject to increase up to a maximum of $50, not to exceed the lowest cost single plan tier monthly premium, up to a maximum of $729 – if the lowest cost single tier plan monthly premium is less than $729 then the cash- out will equal the lowest cost single plan tier monthly premium. G. Section 125 Plan This plan allows employees to use pre-tax salary deductions to pay for regular childcare, adult dependent care and/or unreimbursed medical expenses. H. Miscellaneous 1. Nothing in this Article shall be deemed to restrict the City's right to change insurance carriers or self-fund should circumstance warrant. City shall, however, notify the Association of any proposed change and allow the Association an opportunity to review any proposed change and make recommendations to the City. 2. Nothing in this Article shall be deemed to obligate the City to improve the benefits outlined in this Article. 3. When the City grants an employee leave without pay for reason of medical disability, the City shall continue to contribute its share of the employee’s insurance premiums, pursuant to Article X.B.2. for the time the employee is in a non-pay status for the length of said leave not to exceed twenty-four (24) months. The City shall provide timely written notification of employee rights under this Article and the LTD Plan and will assist the employee in processing LTD claims so that undue delay in receiving LTD payments is avoided. 4. The City and the Association participate in a City-wide joint labor and management Insurance and Benefits Advisory Committee to discuss and study issues relating to insurance benefits available for employees. 5. Health Plan Over-Payments Employees shall be responsible for accurately reporting changes in the status of dependent(s), which affect their eligibility for health plan coverage ninety (90) days after the date of such status change. The City shall use its best efforts to advise all employees of their obligation to report changes in the status of dependent(s), which affect their eligibility. If an employee fails to report a status change that affects eligibility within ninety (90) days, the City shall have the right to recover any premiums paid by the City, on behalf of ineligible dependents. Recovery of such overpayments shall be made as follows: a. The employee's bi-weekly salary warrant shall be reduced by one-half (1/2) of the amount of the bi-weekly overpayment. Such reduction shall continue until the entire amount of the overpayment is recovered. b. The City shall be entitled to recover a maximum of twelve (12) months premium overpayments. Neither the employee nor the dependent shall be liable to the City other than as provided herein. 613 I. Retiree Medical Coverage for Retirees Not Eligible for the City Retiree Medical Subsidy Plan Employees who retire from the City after January 1, 2004 and are granted a retirement allowance by the California Public Employees Retirement System (CalPERS) and are not eligible for the City’s Retiree Medical Subsidy Plan, may choose to participate in City sponsored medical insurance plans until the first of the month in which they turn age sixty- five (65). The retiree shall pay the full premium for City sponsored medical insurance for themselves and/or qualified dependents without any City subsidy. Employees who retire from the City and receive a retirement allowance from the CalPERS and are not eligible for the City’s Retiree Medical Subsidy Plan and choose not to participate in City sponsored medical insurance, upon retirement permanently lose eligibility for this insurance. However, if a retiree who is not eligible for the City’s Retiree Medical Subsidy Plan chooses not to participate in a City sponsored medical insurance plan because the retiree has access to other group medical insurance, and subsequently loses eligibility for that group medical insurance, the retiree and their qualified dependents will have access to City sponsored medical insurance plans reinstated. Eligibility for retiree medical coverage terminates the first of the month in which the retiree or qualified dependent turns age sixty-five (65). J. Post-65 Supplemental Medicare Coverage Retirees who are participating in the Retiree Medical Subsidy Plan as of January 1, 2004 and all future retirees who meet the criteria to participate in City sponsored medical insurance, with or without the Retiree Medical Subsidy Plan, may participate in a City sponsored medical insurance plan that is supplemental to Medicare. A retiree or qualified dependent must choose to participate in a City sponsored medical insurance plan that is supplemental to Medicare beginning the first of the month in which the retiree or qualified dependent turns age sixty-five (65). The retiree shall pay the full premium to participate in a City sponsored medical insurance plan that is supplemental to Medicare for themselves or qualified dependents without any City subsidy. Retirees or qualified dependents upon turning age sixty-five (65), who choose not to participate in a City sponsored medical insurance plan that is supplemental to Medicare, permanently lose eligibility for this insurance. ARTICLE XI – RETIREMENT A. Benefits 1. Self-Funded Supplemental Retirement Benefit 614 Employees hired prior to December 27, 1997 are eligible for the Self-Funded Supplemental Retirement Benefit, which provides that: a. In the event a PERS member elects Option #1, #2, #2W, #3, #3W or #4 of the Public Employees' Retirement law, the City shall pay the difference between the employee's elected option and the unmodified allowance which the retiree would have received for his/her life alone as provided in California Government Code sections 21455, 21456, 21457, and 21548 as said referenced Government Code sections exist as of the date of this agreement. This payment shall be made only to the retiree and shall be payable by the City during the life of the member, and upon that retiree's death, the City's obligation shall cease. The method of funding this benefit shall be at the sole discretion of the City. This benefit is vested for employees covered by this Agreement. b. Employees hired on or after December 27, 1997 shall not be eligible for this benefit referenced in A.1.a. herein above. 2. Deferred Compensation Any employee who contributes one dollar ($1.00) or more per pay period to his/her deferred compensation account shall receive an employer contribution in the amount of nine dollars and twenty-three cents ($9.23)five dollars and fifty cents ($5.50) per pay period to the employee's deferred compensation account, medical insurance premiums or other City provided or approved pre-tax program. If an employee elects that the five dollars and fifty cents ($5.50) be contributed to medical insurance premiums, such election shall only be made during an announced open enrollment period. 3. Medical Insurance for Retirees a. Upon retirement, whether service or disability, each employee shall have the following options in regards to medical insurance under City sponsored plans: i. With no change in benefits, retirees can stay in any of the plans offered by the City, at the retiree’s own expense, for the maximum time period allowed by federal law (COBRA), state law (Cal-COBRA) or ii. Retirees may participate in the Retiree Medical Subsidy Plan, attached hereto as Exhibit D, as amended, or the Health Maintenance Organization (HMO) plan currently being offered to retirees, based upon the eligibility requirements described in Exhibit D. iii. The value of any unused earned leave benefits may be transferred to deferred compensation at retirement, but only during the time that the employee is actively employed with the City. The latest opportunity for such transfer must be the pay period prior to the employee’s last day of employment. b. Employees hired on or after October 1, 2014 shall not be eligible for this benefit referenced in A.3.a.ii. herein above. 615 B. California Public Employees’ Retirement System (CalPERS) 1. Retirement Formulas and Reporting a. The City shall provide all miscellaneous employees described as “classic members by the Public Employees’ Pension Reform Act of 2013 – “PEPRA” with that certain retirement program commonly known and described as the “2.5% at age 55 plan” which is based on the retirement formula as set forth in the California Public Employees’ Retirement System (PERS), Section 21354 of the California Government Code. b. All “Classic” bargaining unit members shall pay their CalPERS member retirement contribution of eight percent (8%) of pensionable income. This provision shall not sunset at the end of this agreement. c. The City shall contract with PERS to have retirement benefits calculated based upon the “classic” member employee’s highest one year’s compensation, pursuant to the provisions of Section 20042 (highest single year). d. The obligations of the City and the retirement rights of employees as provided in this Article shall survive the term of this MOU e. For “New” Members within the meaning of the California Public Employees’ Pension Reform Act of 2013. i. New Members shall be governed by the two percent at age 62 (2% @ 62) retirement formula set forth in Government Code section 7522.20. ii. Final compensation will be based on the highest annual average compensation earnable during the 36 consecutive months immediately preceding the effective date of his or her retirement, or some other 36 consecutive month period designated by the member. iii. All bargaining unit “new” members as defined by PEPRA and determined by CalPERS, shall contribute one half (50%) of the total normal cost as established by CalPERS. C. Pre-Retirement Optional Settlement 2 Death Benefit Employees shall be covered by the Pre-Retirement Optional Settlement 2 Death Benefit as identified in Government Code Section 21548. D. Fourth Level of 1959 Survivor Benefits Employees shall be covered by the Fourth Level of the 1959 Survivor Benefit as identified in Government Code Section 21574. E. The City has adopted the CalPERS Resolution in accordance with IRS Code section 414(h)(2) and both the employee contribution and the City pickup of the required member contribution are made on a pre-tax basis. However, ultimately, the tax status of any benefit is determined by the law. ARTICLE XII – LEAVE BENEFITS 616 A. Leave With Pay 1. General Leave a. Accrual Employees accrue leave at the accrual rates outlined below. General Leave may be used for any purpose, including vacation, Sick Leave, and personal leave. Years of Service Full-Time Three-Quarter Time One-Half Time First through Fourth Year 176 Hours 132 Hours 88 Hours Fifth through Ninth Year 200 Hours 150 Hours 100 Hours Tenth through Fourteenth Year 224 Hours 168 Hours 112 Hours Fifteenth Year and Thereafter 256 Hours 192 Hours 128 Hours b. Eligibility and Approval General Leave must be pre-approved except for illness, injury or family sickness, which may require a physician’s statement for approval. General Leave accrued time is to be computed from hire date anniversary. Employees shall not be permitted to take general leave in excess of actual time earned. Employees shall not accrue General Leave in excess of six hundred forty (640) hours. An employee who earns General Leave hours in excess of six hundred forty (640) hours shall be paid the cash value of those additional hours in their paycheck. Employees may not use their General Leave to advance their separation date on retirement or other separation from employment. c. Conversion to Cash Two (2) times during each fiscal year, each employee shall have the option to convert into a cash payment or deferred compensation up to a total of one hundred-twenty (120) hours of accrued General Leave per fiscal year. The value of each hour of conversion is at the employee’s current base hourly rate of pay, as reflected in Exhibit A. The employee shall give payroll two (2) weeks advance notice of their decision to exercise such option. d. One (1) Week Minimum Vacation Requirement Employees in the following positions, or their reclassified equivalent, in the Finance Department, shall take a minimum of one (1) week (i.e., five (5) consecutive workdays) paid vacation each calendar year: Accounting Technician I; Accounting Technician II; Senior Accounting Technician; Accounting Technician Supervisor; Field Service Representative, Senior Accountant (responsible for bank reconciliation) 617 2. City Paid Holidays a. Full-time employees shall be compensated for the employee’s regularly scheduled work shift for the following holidays: 1. New Year’s Day 2. Martin Luther King Day (third Monday in January) 3. President’s Day (third Monday in February) 4. Memorial Day (last Monday in May) 5. Independence Day (July 4) 6. Labor Day (first Monday in September) 7. Veteran’s Day (November 11) 8. Thanksgiving Day (fourth Thursday in November) 9. The Friday after Thanksgiving 10. Christmas Day (December 25) Any day declared by the President of the United States to be a national holiday or by the Governor of the State of California to be a state holiday and adopted as an employee holiday by the City Council of Huntington Beach. b. City Observed Holiday - Holidays which fall on Sunday shall be observed the following Monday, and those falling on Saturday shall be observed the preceding Friday. c. Holiday Paid Time Off for Part-Time Employees Half-time (1/2) or three quarter-time (3/4) employees shall have the holiday paid as time off with a pro-rated amount of hours, respectively for the holidays listed above in Article XII.2.A. . d. Holiday Pay For Work on a City Observed Holiday In the event an employee is assigned to work on the City observed holiday, in addition to being paid for the holiday at the employee’s regular rate of pay, whether it is or is not the employee’s regularly scheduled workday, the employee shall be paid for working the holiday at the regular rate of pay unless FLSA overtime provisions apply, meaning the employee will be paid over time. e. Holiday Pay for Work on an Actual Holiday (Not the City Observed Date) An employee who works on the actual holiday as listed in Article XII.2.A. 1-10, in addition to being paid for the holiday at the employee’s regular rate of pay, the employee shall be compensated at the overtime rate. f. An employee who is assigned or required to work on both the City observed holiday date and on the actual date that the holiday falls, shall only be paid for one City holiday (as applicable per section E. or F. above). g. CalPERS Reporting of Holiday Pay Employees who are required to work on a holiday observed by the City, either on the date observed by the City or on the date that the actual holiday falls as a part of their regular work schedule, shall have their holiday pay reported to CalPERS. Classifications eligible for this CalPERS reporting are: Beach Equipment Operator, Beach Maintenance Crewleader, Beach Maintenance Worker, Crime Scene 618 Investigator, Parking/Camping Crewleader, Parking/Camping Leadworker, Parking Meter Repair Technician, Parking Meter Repair Worker, Parking Control Officer, Police Records Supervisor, Police Records Technician, Custodian assigned to the Police Department, Police Records Specialists assigned to the Records Bureau, Police Service Specialists assigned to the Records Bureau and Police Systems Coordinator. h. If an employee is scheduled to work a holiday and will lose that holiday time due to their General Leave bank having reached the maximum cap of six hundred forty (640) hours, at the employee’s request, the employee may cash out the part of their holiday time they will lose. 3. Sick Leave a. Accrual No employee shall accrue Sick Leave. b. Credit Employees hired prior to March 30, 2002 shall be credited with their Sick Leave accrued as of March 29, 2002. c. Usage Employees may use accrued Sick Leave for the same purposes for which it was used prior to March 30, 2002. d. Payoff at Termination Upon termination, all employees shall be paid, at their current salary rate, for twenty-five percent (25%) of unused, earned Sick Leave from four hundred and eighty (480) hours through seven hundred and twenty (720) hours, and for fifty percent (50%) of all unused, earned Sick Leave in excess of seven hundred and twenty (720) hours. e. Extended Absences Sick Leave shall not be used to extend absences due to work related (industrial) injuries or illnesses. 4. Bereavement Leave Employees shall be entitled to bereavement leave not to exceed three (3) work shifts in each instance of death in the immediate family. Immediate family is defined as father, mother, sister, brother, spouse, registered domestic partner, children, grandfather, grandmother, stepfather, stepmother, stepgrandfather, step- grandmother, grandchildren, stepsisters, stepbrothers, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepchildren, or wards of which the employee is the legal guardian. 5. Association Business An allowance of eight hundred (800) hours per year shall be established for the purpose of allowing duly authorized representatives of the Association to conduct lawful Association activities. The parties agree to meet and confer during the term of the Agreement to establish guidelines for use of Association Business time. 6. Jury Duty 619 Employees who are regularly scheduled to work on swing or graveyard shifts, as defined in Article VII.B.2., shall be placed on a day shift if they are required to appear for jury duty or selection for a period of more than one day. 7. Leave Benefits Entitlement The City shall comply with all state and federal leave benefit entitlement laws. An eligible employee on an approved leave shall be allowed to use earned Sick Leave, General Leave, and/or Compensatory Time for serious and non-serious family or personal health issues. For more information on employee leave options, contact the Human Resources Division. 8. Personal Days Each full-time unit employee will be entitled to utilize a maximum of twenty (20) thirty (30) hours as “personal days.” a. Supervisor approval is required to utilize Personal Days. b. Personal Days have no cash value. c. All Personal Days time (20 30 hours) must be used by not later than September 30, 2019. The use of Personal Days will not be extended by any subsequent extension of this agreement beyond September 30, 20179. d. No portion of unused Personal Days may be carried over beyond September 30, 2019. e. Part-time employees shall be granted twenty (20) thirty (30) hours as Personal Days on a proportional hours computation to full-time equivalent employee status. i. Half-time employees shall be granted a total of ten (10) fifteen (15) hours. ii. Three-quarter employees shall be granted a total of fifteen (15) twenty two and one half (22.5) hours. The entire MOU provision regarding the additional one-time allotment of 30 hours of Personal Days will expire with the expiration of this agreement and will not continue beyond the original expiration date of the agreement (even if the MOU is subsequently extended or amended), nor will it be automatically included as part of any successor MOU. The language as written herein sunsets unless specifically and expressly added to a subsequent MOU by mutual agreement of the parties. 620 ARTICLE XIII – CITY RULES Personnel Rules All MOU provisions that supersede the City’s Personnel Rules shall automatically update the City’s Personnel Rules and be incorporated into such rules. ARTICLE XIV –MISCELLANEOUS A. Grievance Arbitration Any grievance as defined and described in Rules 19 and 20 of the City Personnel Rules (Resolution No. 3960), shall be settled in accordance with the procedures set forth in said Rules except that the parties to the grievance may, by mutual agreement, submit the grievance to a neutral arbitrator whose decision shall be final and binding on the parties. The arbitrator shall be selected by the parties from listings of and pursuant to the rules of the American Arbitration Association. This procedure, if adopted by the parties, shall be in lieu of Step 5 of Rule 19, or Step 4 of Rule 20, and the fees charged by the arbitrator or hearing officer and court reporter shall be paid equally, fifty-fifty (50-50) by the City and the Association. B. Promotional Procedures 1. Tie Scores When promotions are to be made, and two or more employees are found to be equal as a result of promotional examinations conducted by the City, the employee with the greatest length of service with the City shall receive the promotion. 2. Salary Upon Promotion Upon promotion, an employee shall be compensated at the same step in the salary range for his/her new classification, subject to the following provisions: a. Except for the provisions of sub-paragraphs b and c below, no employee shall receive greater than eleven percent (11%) increase upon promotion. b. If “A” Step of the classification upon promotion is greater than eleven percent (11%) increase, the employee shall be compensated at “A” step upon promotion. c. If the employee would be eligible for a step increase within eleven (11) months of the date of promotion in his/her classification before promotion, then the Human Resources Director may authorize an increase greater than eleven percent (11%) upon promotion. 621 C. Labor-Management Relations Committee The City and MEA participate in a Labor-Management Relations Committee as follows: 1. The Association and the City recognize that the participation of employees in the formulation and implementation of personnel policy and practices affects their well- being and the efficient administration of the Government. The parties further recognize that the entrance into a formal agreement with each other is but one act of joint participation, and that the success of a labor-management relationship is further assured if a forum is available and used to communicate with each other. The parties therefore agree to the structure of Labor-Management Relations Committees (LMRC) for the purpose of exchanging information and the discussion of matters of concern or interest to each of them, in the broad area of working conditions, wages and hours. 2. The City of Huntington Beach shall have an LMRC. The formation of this LMRC shall not serve as the basis for reopening the meet and confer process to modify this MOU. 3. The LMRC shall meet monthly. The City shall be represented by the City Manager (or designee), the Human Resources Director (or designee), and Department Heads. Four (4) representatives at these meetings shall represent the Association. 4. The City agrees that any meeting conducted under this Article shall be conducted in facilities furnished by the City, and Association representatives shall be released from their duties at work to attend the LMRC. 5. The parties shall exchange agenda items five (5) workdays before each scheduled LMRC meeting described in this section. Matters not on the agenda may be discussed by mutual consent. If either party timely forwards an agenda, the meeting will be held. D. Copies of MOU The City agrees to print this Memorandum of Understanding for each employee requesting a copy. E. Position Classification Issues 1. Class Specifications The City shall send the Association a copy of each new job description approved for classifications within the representation unit. 2. Reclassification Impact It is not the intention of the City to demote or layoff an employee through reclassification. Prior to imposing a Y-rating, or layoff resulting from classification reviews, the City agrees to meet and confer with Association representatives. F. Class A and B Driver License Fees The City shall reimburse employees for costs associated with obtaining and renewing Class A and Class B driver licenses where required by the City for the position. G. Deferred Compensation Loan Program 622 Employees may utilize this program, under which employees may borrow up to fifty percent (50%) of their deferred compensation funds for critical needs such as medical costs, college tuition, or purchase of a home. H. Performance Evaluations/Written Reprimand Appeals Employees may appeal the results of a performance evaluation or written reprimand. Such appeals shall be initiated through the appropriate chain of command (which may include the LMRC) and any decision made by the Department Head shall be considered final. I. MEA Letter of Introduction A one-page letter of introduction from MEA, and of MEA’s choosing, regarding the benefits and purpose of joining the MEA, will be included in all MEA eligible new employee orientation packets. J. Department of Transportation (DOT) Random Alcohol and Controlled Substance Testing During the term of the Agreement, the City and the Association agree to meet and confer to update the policy in accordance with law. K. Update Employee-Employer Relations Resolution (EERR) During the term of the Agreement, the City and the Association agree to meet and confer to update the Employee-Employer Relations Resolution to reflect current state law. L. Required Fingerprinting of Employees The City requires that all employees who are hired, transferred, or promoted to positions that require fingerprinting by federal, state or local law(s) be fingerprinted according to said law(s). The City may also require employees be fingerprinted if they are hired, transferred or promoted into positions with oversight responsibilities for senior citizens or oversight responsibilities for confidential, and or sensitive documents or equipment. M. Beach Parking Employees may purchase a City beach parking pass at the Senior discount rate. N. Reasonable Suspicion Alcohol and Controlled Substance Testing The City maintains the right to conduct a test during working hours of any employee that it reasonably suspects is under the influence of alcohol or a controlled substance in the workplace. The policy to implement such testing shall be established by the City and the Association during the term of the Agreement. 623 ARTICLE XV – CITY COUNCIL APPROVAL It is the intent of the City and Association that this Memorandum of Understanding represents an “Agreement” between the undersigned within the meaning of Section 8-2 of the Huntington Beach Employer-Employee Relations Resolution; however, this Memorandum of Understanding is of no force or effect whatsoever unless adopted by Resolution of the City Council of the City of Huntington Beach. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding this 7th day of July, 2014 5th day of November, 2018. City of Huntington Beach Huntington Beach Municipal Employees’ Association By: By: Fred A. Wilson City Manager Judy Graham MEA President By: By: Ken DomerLori Ann Farrell Harrison Assistant City Manager Gregorio Daniels Teamsters 911 Sr. Business Rep By: By: Michele Warren Director of Human Resources Terry Tintle Vice-President By: By: JoAnn Diaz Principal Personnel Analyst Kevin Kirby MEA Bargaining Committee By: Iris Tatar MEA Bargaining Committee By: Brian Weinberg MEA Bargaining Committee APPROVED AS TO FORM: Michael Gates City Attorney 624 MEA LIST OF MOU EXHIBITS EXHIBITS SUBJECT A Class/Salary Schedule B Uniform Policy B-1 Uniform Listing by Category/Class C Vehicle Use Policy D Provisions of the Retiree Medical Subsidy Plan E 9/80 Work Schedule F 4/10 Work Schedule G Agency Shop Agreement H Catastrophic Leave Donation Program I Teamsters Miscellaneous Security Trust 625 2% EFFECTIVE SEPTEMBER 27, 2014 Job type Description Pay Grade A B C D E 0111 Accountant MEA111 31.81 33.56 35.40 37.35 39.40 0286 Accounting Technician I MEA286 22.10 23.31 24.59 25.95 27.38 0287 Accounting Technician II MEA287 24.30 25.63 27.04 28.53 30.10 0294 Accounting Technician Supv MEA294 28.08 29.62 31.25 32.96 34.77 0428 Administrative Aide MEA428 31.19 32.90 34.71 36.62 38.63 0278 Administrative Assistant MEA278 27.53 29.04 30.64 32.32 34.10 0289 Administrative Secretary MEA289 23.45 24.74 26.11 27.55 29.06 0297 Art Programs Curator MEA297 27.80 29.32 30.93 32.64 34.44 0296 Arts Education Coordinator MEA296 24.30 25.63 27.04 28.53 30.10 0108 Assistant Planner MEA108 32.62 34.40 36.30 38.30 40.40 0267 Assistant Social Worker MEA267 22.66 23.91 25.22 26.60 28.06 0358 Beach Equip Operator MEA358 25.81 27.23 28.72 30.30 31.96 0149 Beach Maint Crewleader MEA149 33.43 35.27 37.21 39.25 41.41 0452 Beach Maint Service Worker MEA452 23.69 25.00 26.37 27.82 29.36 0210 Building Inspector I MEA210 30.11 31.76 33.50 35.35 37.29 0211 Building Inspector II MEA211 33.27 35.10 37.03 39.06 41.21 0208 Building Inspector III MEA208 36.75 38.77 40.90 43.16 45.53 0176 Building Plan Checker I MEA176 36.21 38.20 40.31 42.52 44.86 0520 Building Plan Checker II MEA520 42.04 44.36 46.81 49.38 52.10 0112 Buyer MEA112 31.33 33.06 34.88 36.80 38.82 0340 Carpenter MEA340 28.20 29.76 31.40 33.12 34.94 0106 Civil Engineering Assistant MEA106 37.11 39.16 41.31 43.59 45.99 0162 Civilian Check Investigator MEA162 24.90 26.27 27.72 29.24 30.85 0186 Code Enforcement Officer I MEA186 25.03 26.40 27.85 29.39 31.01 0182 Code Enforcement Officer II MEA182 30.88 32.57 34.36 36.26 38.25 0511 Code Enforcement Technician MEA511 20.83 21.97 23.18 24.45 25.79 0263 Community Relations Specialist MEA263 26.31 27.76 29.28 30.89 32.59 0597 Community Services Officer MEA597 26.97 28.46 30.02 31.67 33.42 0252 Community Srvcs Rec Coord MEA252 29.23 30.84 32.53 34.32 36.20 0269 Community Srvcs Rec Specialist MEA269 23.69 25.00 26.37 27.82 29.36 626 0258 Community Srvcs Rec Supv MEA258 32.77 34.57 36.48 38.49 40.61 0193 Computer Operator MEA193 21.77 22.96 24.22 25.56 26.96 0172 Construction Inspector I MEA172 30.11 31.76 33.50 35.35 37.29 0463 Construction Inspector II MEA463 33.27 35.10 37.03 39.06 41.21 0587 Construction Project Coord MEA587 39.42 41.59 43.88 46.29 48.84 0312 Court Liaison Specialist MEA312 23.45 24.74 26.11 27.55 29.06 0166 Crime Analyst MEA166 31.19 32.90 34.71 36.62 38.63 0165 Crime Analyst Senior MEA165 36.38 38.38 40.50 42.73 45.08 0255 Crime Scene Investigator MEA255 29.37 30.99 32.69 34.49 36.38 0119 Criminalist MEA119 32.77 34.57 36.48 38.49 40.61 0192 Cross Connection Control Spec MEA192 30.88 32.57 34.36 36.26 38.25 0299 Cultural Services Aide MEA299 27.80 29.32 30.93 32.64 34.44 0400 Custodian MEA400 21.33 22.51 23.75 25.05 26.42 0134 Deputy City Clerk MEA134 25.67 27.08 28.57 30.14 31.80 0138 Development Specialist MEA138 32.77 34.57 36.48 38.49 40.61 0456 Distribution Services Clerk MEA456 20.91 22.06 23.28 24.56 25.92 0375 Electrical Leadworker MEA375 32.93 34.74 36.66 38.68 40.81 0339 Electrician MEA339 30.40 32.08 33.84 35.71 37.67 0232 Emergency Medical Srvcs Coord MEA232 46.47 49.02 51.72 54.56 57.57 0198 Emergency Services Coordinator MEA198 40.02 42.22 44.54 46.99 49.57 0175 Engineering Aide MEA175 26.31 27.76 29.28 30.89 32.59 0180 Engineering Technician MEA180 32.29 34.07 35.94 37.92 40.00 0445 Environmental Specialist MEA445 37.11 39.16 41.31 43.59 45.99 0382 Equip Services Crewleader MEA382 34.46 36.35 38.35 40.46 42.68 0142 Equip/Auto Maint Crewleader MEA142 34.46 36.35 38.35 40.46 42.68 0472 Equip/Auto Maint Leadworker MEA472 31.33 33.06 34.88 36.80 38.82 0383 Equipment Support Assistant MEA383 24.41 25.76 27.18 28.67 30.24 0061 Executive Assistant MEA061 31.65 33.39 35.22 37.16 39.20 0143 Facilities Maint Crewleader MEA143 34.29 36.17 38.16 40.26 42.47 0407 Facilities Maint Leadworker MEA407 26.71 28.18 29.73 31.36 33.08 0391 Facilities Maintenance Tech MEA391 24.66 26.01 27.44 28.95 30.54 0398 Field Service Representative MEA398 25.42 26.82 28.29 29.84 31.48 0588 Fire Prevention Inspector MEA588 37.68 39.76 41.95 44.26 46.69 0260 Fire Safety Program Specialist MEA260 31.81 33.56 35.40 37.35 39.40 627 0173 Fire Training Maintenance Tech MEA173 29.23 30.84 32.53 34.32 36.20 0470 Forensic Systems Specialist MEA470 35.13 37.07 39.11 41.26 43.53 0576 GIS Analyst I MEA576 35.85 37.82 39.91 42.10 44.41 0178 GIS Analyst II MEA178 38.83 40.96 43.22 45.60 48.11 0390 Groundsworker MEA390 20.83 21.97 23.18 24.45 25.79 0190 Haz Mat Program Specialist MEA190 35.49 37.44 39.50 41.67 43.97 0337 Helicopter Maintenance Tech MEA337 28.77 30.36 32.03 33.80 35.66 0113 Human Services Program Supv MEA113 32.77 34.57 36.48 38.49 40.61 0115 Info Systems Analyst I MEA115 35.85 37.82 39.91 42.10 44.41 0505 Info Systems Analyst II MEA505 38.83 40.96 43.22 45.60 48.11 0117 Info Systems Analyst III MEA117 41.44 43.72 46.12 48.66 51.34 0118 Info Systems Analyst IV MEA118 45.55 48.06 50.70 53.48 56.43 0495 Info Systems Technician I MEA495 22.33 23.56 24.85 26.21 27.65 0494 Info Systems Technician II MEA494 25.14 26.53 27.99 29.54 31.17 0493 Info Systems Technician III MEA493 28.20 29.76 31.40 33.12 34.94 0492 Info Systems Technician IV MEA492 31.19 32.90 34.71 36.62 38.63 0491 Info Systems Technician Senior MEA491 33.43 35.27 37.21 39.25 41.41 0155 Irrigation Crewleader MEA155 33.43 35.27 37.21 39.25 41.41 0357 Irrigation Specialist MEA357 25.03 26.40 27.85 29.39 31.01 0359 Landscape Equip Operator MEA359 25.81 27.23 28.72 30.30 31.96 0145 Landscape Maint Crewleader MEA145 33.43 35.27 37.21 39.25 41.41 0402 Landscape Maint Leadworker MEA402 27.94 29.47 31.09 32.81 34.60 0163 Latent Fingerprint Examiner MEA163 31.48 33.22 35.05 36.98 39.01 0164 Latent Fingerprint ExamTrainee MEA164 26.05 27.48 29.00 30.59 32.28 0300 Legal Assistant MEA300 26.31 27.76 29.28 30.89 32.59 0114 Librarian MEA114 28.50 30.06 31.72 33.46 35.30 0311 Library Clerk MEA311 17.99 18.99 20.03 21.13 22.30 0305 Library Clerk Specialist (T) MEA305 17.99 18.99 20.03 21.13 22.30 0432 Library Facilities Coordinator MEA432 25.67 27.08 28.57 30.14 31.80 0310 Library Processing Clerk MEA310 19.91 21.00 22.15 23.37 24.65 0451 Library Services Clerk MEA451 19.91 21.00 22.15 23.37 24.65 0257 Library Specialist MEA257 23.69 25.00 26.37 27.82 29.36 0302 Literacy Program Specialist MEA302 28.50 30.06 31.72 33.46 35.30 0303 Mail Services Clerk MEA303 17.58 18.54 19.56 20.64 21.77 628 0392 Maint Service Worker MEA392 23.69 25.00 26.37 27.82 29.36 0394 Maintenance Worker MEA394 20.83 21.97 23.18 24.45 25.79 0448 Marine Equipment Mechanic MEA448 31.04 32.74 34.54 36.44 38.44 0344 Masonry Worker MEA344 28.20 29.76 31.40 33.12 34.94 0384 Mechanic I MEA384 24.53 25.87 27.30 28.81 30.39 0348 Mechanic II MEA348 27.25 28.75 30.33 32.00 33.76 0347 Mechanic III MEA347 28.93 30.52 32.20 33.97 35.84 0206 Media Production Coordinator MEA206 27.11 28.60 30.18 31.84 33.59 0380 Media Services Specialist MEA380 23.69 25.00 26.37 27.82 29.36 0306 Office Assistant I MEA306 16.88 17.81 18.79 19.83 20.92 0304 Office Assistant II MEA304 20.31 21.43 22.60 23.84 25.15 0290 Office Specialist MEA290 21.43 22.60 23.85 25.17 26.55 0341 Painter MEA341 28.20 29.76 31.40 33.12 34.94 0378 Painter Leadworker MEA378 30.55 32.23 34.01 35.89 37.86 0485 Paralegal MEA485 31.19 32.90 34.71 36.62 38.63 0153 Park Maintenance Crewleader MEA153 34.29 36.17 38.16 40.26 42.47 0177 Parking Meter Repair Tech MEA177 27.25 28.75 30.33 32.00 33.76 0395 Parking Meter Repair Worker MEA395 25.14 26.53 27.99 29.54 31.17 0570 Parking/Camping Assistant MEA570 20.83 21.97 23.18 24.45 25.79 0459 Parking/Camping Crewleader MEA459 33.43 35.27 37.21 39.25 41.41 0401 Parking/Camping Leadworker MEA401 27.94 29.47 31.09 32.81 34.60 0455 Parking/Traffic Control Coord MEA455 26.31 27.76 29.28 30.89 32.59 0262 Parking/Traffic Control Officr MEA262 20.83 21.97 23.18 24.45 25.79 0577 Parking/Traffic Control Supv MEA577 28.08 29.62 31.25 32.96 34.77 0458 Payroll Specialist MEA458 36.56 38.57 40.70 42.94 45.30 0447 Payroll Technician MEA447 24.66 26.01 27.44 28.95 30.54 0295 Permit Technician MEA295 22.66 23.91 25.22 26.60 28.06 0279 Personnel Assistant MEA279 23.95 25.26 26.65 28.11 29.65 0154 Pest Contrl Advisor Crewleader MEA154 33.43 35.27 37.21 39.25 41.41 0367 Pest Control Specialist MEA367 25.03 26.40 27.85 29.39 31.01 0136 Planning Aide MEA136 26.31 27.76 29.28 30.89 32.59 0342 Plumber MEA342 29.65 31.28 33.01 34.83 36.74 0197 Police Photo/Imaging Specialst MEA197 29.23 30.84 32.53 34.32 36.20 0307 Police Records Specialist MEA307 21.43 22.60 23.85 25.17 26.55 629 0283 Police Records Supervisor MEA283 25.03 26.40 27.85 29.39 31.01 0282 Police Records Technician MEA282 19.42 20.49 21.61 22.79 24.04 0308 Police Services Specialist MEA308 23.69 25.00 26.37 27.82 29.36 0215 Police Systems Coordinator MEA215 27.65 29.18 30.78 32.48 34.27 0399 Printing Services Technician MEA399 21.99 23.20 24.48 25.82 27.24 0584 Program Coord - Human Srvcs MEA584 29.23 30.84 32.53 34.32 36.20 0259 *Property and Evidence Officer MEA259 26.05 27.48 29.00 30.59 32.28 0261 *Property and Evidence Supervisor MEA261 30.11 31.76 33.50 35.35 37.29 0205 Public Information Specialist MEA205 31.19 32.90 34.71 36.62 38.63 0583 Rideshare Coordinator MEA583 32.45 34.23 36.12 38.11 40.20 0256 Risk Management Specialist MEA256 23.69 25.00 26.37 27.82 29.36 0515 SCADA Coordinator MEA515 33.43 35.27 37.21 39.25 41.41 0346 SCADA Technician MEA346 29.65 31.28 33.01 34.83 36.74 0110 Senior Accountant MEA110 36.56 38.57 40.70 42.94 45.30 0288 Senior Accounting Technician MEA288 26.71 28.18 29.73 31.36 33.08 0434 Senior Code Enforcement Ofcr MEA434 34.12 35.99 37.97 40.05 42.26 0171 Senior Construction Inspector MEA171 36.75 38.77 40.90 43.16 45.53 0120 Senior Criminalist MEA120 40.02 42.22 44.54 46.99 49.57 0135 Senior Deputy City Clerk MEA135 32.77 34.57 36.48 38.49 40.61 0586 Senior Engineering Technician MEA586 37.49 39.56 41.74 44.03 46.46 0343 Senior Facilities Maint Tech MEA343 28.93 30.52 32.20 33.97 35.84 0334 Senior Helicopter Maint Tech MEA334 39.82 42.01 44.32 46.75 49.33 0188 Senior Inspector Water Constr MEA188 35.13 37.07 39.11 41.26 43.53 0309 Senior Library Services Clerk MEA309 21.86 23.07 24.34 25.68 27.10 0450 Senior Library Specialist MEA450 25.93 27.36 28.86 30.45 32.12 0363 Senior Marine Equip Mechanic MEA363 34.46 36.35 38.35 40.46 42.68 0446 Senior Payroll Technician MEA446 27.11 28.60 30.18 31.84 33.59 0437 Senior Permit Technician MEA437 28.93 30.52 32.20 33.97 35.84 0168 Senior Printing Services Tech MEA168 26.45 27.90 29.43 31.05 32.75 0265 Senior Services Assistant MEA265 15.82 16.69 17.61 18.58 19.61 0481 Senior Services Transp Coord MEA481 25.29 26.68 28.15 29.69 31.32 0350 Senior Vehicle Body Technician MEA350 27.25 28.75 30.33 32.00 33.76 0349 Senior Wastewtr Pump Mechanic MEA349 25.81 27.23 28.72 30.30 31.96 0396 Senior Water Meter Reader MEA396 24.90 26.27 27.72 29.24 30.85 630 0436 Senior Workers' Comp Examiner MEA436 32.29 34.07 35.94 37.92 40.00 0148 Signs & Markings Crewleader MEA148 34.29 36.17 38.16 40.26 42.47 0338 Signs Leadworker MEA338 28.50 30.06 31.72 33.46 35.30 0354 Signs/Markings Equip Operator MEA354 25.81 27.23 28.72 30.30 31.96 0266 Social Worker MEA266 27.80 29.32 30.93 32.64 34.44 0386 Stock Clerk MEA386 20.83 21.97 23.18 24.45 25.79 0361 Street Equip Operator MEA361 25.81 27.23 28.72 30.30 31.96 0150 Street Maint Crewleader MEA150 33.43 35.27 37.21 39.25 41.41 0406 Street Maint Leadworker MEA406 29.37 30.99 32.69 34.49 36.38 0183 Survey Party Chief MEA183 37.68 39.76 41.95 44.26 46.69 0174 Survey Technician I MEA174 26.31 27.76 29.28 30.89 32.59 0185 Survey Technician II MEA185 28.50 30.06 31.72 33.46 35.30 0195 Telecommunications Specialist MEA195 37.87 39.96 42.16 44.48 46.92 0203 Television Producer/Director MEA203 31.19 32.90 34.71 36.62 38.63 0433 Theater/Media Technician MEA433 23.69 25.00 26.37 27.82 29.36 0388 Tire Service Worker (T) MEA388 23.81 25.12 26.51 27.97 29.50 0181 Traffic Engineering Technician MEA181 34.29 36.17 38.16 40.26 42.47 0389 Traffic Maint Service Worker MEA389 23.69 25.00 26.37 27.82 29.36 0410 Traffic Markings Leadworker MEA410 27.94 29.47 31.09 32.81 34.60 0336 Traffic Signal Electrician MEA336 30.88 32.57 34.36 36.26 38.25 0140 Traffic Signal/Light Crewleadr MEA140 34.29 36.17 38.16 40.26 42.47 0365 Tree Equipment Operator MEA365 25.81 27.23 28.72 30.30 31.96 0144 Trees Maintenance Crewleader MEA144 33.43 35.27 37.21 39.25 41.41 0460 Trees Maintenance Leadworker MEA460 27.94 29.47 31.09 32.81 34.60 0372 Vehicle Body Repair Crewleader MEA372 31.33 33.06 34.88 36.80 38.82 0351 Vehicle Body Technician MEA351 20.91 22.06 23.28 24.56 25.92 0480 Video Engineer MEA480 26.31 27.76 29.28 30.89 32.59 0137 Video Engineer Supervisor MEA137 35.67 37.63 39.71 41.89 44.19 0268 Volunteer Services Coordinator MEA268 25.29 26.68 28.15 29.69 31.32 0385 Warehousekeeper MEA385 26.31 27.76 29.28 30.89 32.59 0362 Wastewater Equip Operator MEA362 25.81 27.23 28.72 30.30 31.96 0454 Wastewater Maint Service Workr MEA454 23.69 25.00 26.37 27.82 29.36 0146 Wastewater Ops Crewleader MEA146 33.43 35.27 37.21 39.25 41.41 0404 Wastewater Ops Leadworker MEA404 27.94 29.47 31.09 32.81 34.60 631 0387 Wastewater Pump Mechanic MEA387 25.14 26.53 27.99 29.54 31.17 0582 Water Conservation Coordinator MEA582 32.45 34.23 36.12 38.11 40.20 0189 Water Construction Inspector MEA189 31.04 32.74 34.54 36.44 38.44 0151 Water Dist Maint Crewleader MEA151 33.43 35.27 37.21 39.25 41.41 0379 Water Dist Maint Leadworker MEA379 30.26 31.92 33.67 35.53 37.48 0147 Water Dist Meters Crewleader MEA147 33.43 35.27 37.21 39.25 41.41 0377 Water Dist Meters Leadworker MEA377 27.94 29.47 31.09 32.81 34.60 0364 Water Equip Operator MEA364 27.94 29.47 31.09 32.81 34.60 0397 Water Meter Reader MEA397 23.00 24.26 25.59 27.00 28.48 0356 Water Meter Repair Technician MEA356 25.67 27.08 28.57 30.14 31.80 0152 Water Operations Crewleader MEA152 33.43 35.27 37.21 39.25 41.41 0371 Water Operations Leadworker MEA371 31.19 32.90 34.71 36.62 38.63 0156 Water Quality Coordinator MEA156 33.43 35.27 37.21 39.25 41.41 0191 Water Quality Technician MEA191 29.37 30.99 32.69 34.49 36.38 0461 Water Service Worker MEA461 24.41 25.76 27.18 28.67 30.24 0368 Water Systems Technician I MEA368 24.41 25.76 27.18 28.67 30.24 0369 Water Systems Technician II MEA369 26.05 27.48 29.00 30.59 32.28 0370 Water Systems Technician III MEA370 28.77 30.36 32.03 33.80 35.66 0449 Water Utility Locator MEA449 29.37 30.99 32.69 34.49 36.38 0202 Workers Comp Claims Examiner MEA202 21.43 22.60 23.85 25.17 26.55 *10/19/15 Modifications to Class Plan Approved by Personnel Commission 632 2% EFFECTIVE SEPTEMBER 24, 2016 HOURLY WAGE PAY RATE Job type Description PayGrade A B C D E 0111 Accountant MEA111 32.45 34.23 36.11 38.09 40.19 0286 Accounting Technician I MEA286 22.54 23.78 25.09 26.47 27.92 0287 Accounting Technician II MEA287 24.78 26.14 27.58 29.10 30.70 0294 Accounting Technician Supv MEA294 28.64 30.21 31.88 33.62 35.47 0428 Administrative Aide MEA428 31.81 33.56 35.40 37.35 39.40 0278 Administrative Assistant MEA278 28.08 29.62 31.25 32.97 34.78 0289 Administrative Secretary MEA289 23.92 25.24 26.63 28.10 29.64 0297 Art Programs Curator MEA297 28.36 29.91 31.55 33.29 35.12 0108 Assistant Planner MEA108 33.27 35.09 37.02 39.06 41.21 0267 Assistant Social Worker MEA267 23.11 24.38 25.72 27.14 28.63 0358 Beach Equip Operator MEA358 26.33 27.77 29.30 30.90 32.60 0149 Beach Maint Crewleader MEA149 34.10 35.98 37.95 40.04 42.24 0452 Beach Maint Service Worker MEA452 24.17 25.50 26.90 28.38 29.94 0210 Building Inspector I MEA210 30.71 32.39 34.17 36.05 38.04 0211 Building Inspector II MEA211 33.94 35.80 37.77 39.84 42.03 0208 Building Inspector III MEA208 37.49 39.55 41.72 44.02 46.44 0176 Building Plan Checker I MEA176 36.94 38.97 41.11 43.37 45.76 0520 Building Plan Checker II MEA520 42.89 45.25 47.74 50.37 53.14 0112 Buyer MEA112 31.96 33.72 35.58 37.53 39.59 0106 Civil Engineering Assistant MEA106 37.86 39.94 42.14 44.46 46.91 0162 Civilian Check Investigator MEA162 25.40 26.79 28.27 29.82 31.46 0186 Code Enforcement Officer I MEA186 25.53 26.93 28.41 29.98 31.63 0182 Code Enforcement Officer II MEA182 31.50 33.22 35.05 36.98 39.01 0511 Code Enforcement Technician MEA511 21.24 22.41 23.64 24.93 26.31 0263 Community Relations Specialist MEA263 26.83 28.31 29.87 31.51 33.25 0597 Community Services Officer MEA597 27.51 29.03 30.62 32.31 34.09 0269 Community Srvcs Rec Specialist MEA269 24.17 25.50 26.90 28.38 29.94 0258 Community Srvcs Rec Supv MEA258 33.43 35.26 37.21 39.26 41.42 0172 Construction Inspector I MEA172 30.71 32.39 34.17 36.05 38.04 0463 Construction Inspector II MEA463 33.94 35.80 37.77 39.84 42.03 633 0312 Court Liaison Specialist MEA312 23.92 25.24 26.63 28.10 29.64 0166 Crime Analyst MEA166 31.81 33.56 35.40 37.35 39.40 0165 Crime Analyst Senior MEA165 37.11 39.15 41.31 43.59 45.98 0255 Crime Scene Investigator MEA255 29.95 31.61 33.34 35.18 37.11 0119 Criminalist MEA119 33.43 35.26 37.21 39.26 41.42 0192 Cross Connection Control Spec MEA192 31.50 33.22 35.05 36.98 39.01 0400 Custodian MEA400 21.76 22.96 24.22 25.55 26.95 0134 Deputy City Clerk MEA134 26.19 27.62 29.14 30.74 32.44 0138 Development Specialist MEA138 33.43 35.26 37.21 39.26 41.42 0339 Electrician MEA339 31.01 32.72 34.52 36.42 38.43 0232 Emergency Medical Srvcs Coord MEA232 47.40 50.00 52.75 55.65 58.72 0198 Emergency Services Coordinator MEA198 40.82 43.07 45.43 47.93 50.56 0175 Engineering Aide MEA175 26.83 28.31 29.87 31.51 33.25 0180 Engineering Technician MEA180 32.93 34.75 36.66 38.68 40.80 0445 Environmental Specialist MEA445 37.86 39.94 42.14 44.46 46.91 0382 Equip Services Crewleader MEA382 35.15 37.08 39.12 41.27 43.53 0142 Equip/Auto Maint Crewleader MEA142 35.15 37.08 39.12 41.27 43.53 0472 Equip/Auto Maint Leadworker MEA472 31.96 33.72 35.58 37.53 39.59 0383 Equipment Support Assistant MEA383 24.90 26.27 27.72 29.24 30.85 0061 Executive Assistant MEA061 32.29 34.06 35.92 37.90 39.98 0143 Facilities Maint Crewleader MEA143 34.97 36.89 38.92 41.06 43.32 0407 Facilities Maint Leadworker MEA407 27.24 28.74 30.32 31.98 33.74 0391 Facilities Maintenance Tech MEA391 25.15 26.53 27.99 29.53 31.15 0398 Field Service Representative MEA398 25.93 27.35 28.85 30.44 32.11 0588 Fire Prevention Inspector MEA588 38.44 40.55 42.79 45.14 47.62 0260 Fire Safety Program Specialist MEA260 32.45 34.23 36.11 38.09 40.19 0173 Fire Training Maintenance Tech MEA173 29.81 31.45 33.18 35.01 36.93 0470 Forensic Systems Specialist MEA470 35.84 37.81 39.90 42.09 44.40 0576 GIS Analyst I MEA576 36.57 38.58 40.70 42.94 45.30 0178 GIS Analyst II MEA178 39.60 41.78 44.08 46.51 49.07 0190 Haz Mat Program Specialist MEA190 36.20 38.19 40.29 42.51 44.85 0337 Helicopter Maintenance Tech MEA337 29.35 30.97 32.67 34.48 36.38 0115 Info Systems Analyst I MEA115 36.57 38.58 40.70 42.94 45.30 0505 Info Systems Analyst II MEA505 39.60 41.78 44.08 46.51 49.07 634 0117 Info Systems Analyst III MEA117 42.27 44.59 47.04 49.63 52.36 0118 Info Systems Analyst IV MEA118 46.46 49.02 51.71 54.55 57.55 0495 Info Systems Technician I MEA495 22.78 24.03 25.34 26.74 28.21 0494 Info Systems Technician II MEA494 25.65 27.06 28.55 30.13 31.79 0493 Info Systems Technician III MEA493 28.77 30.35 32.03 33.79 35.64 0492 Info Systems Technician IV MEA492 31.81 33.56 35.40 37.35 39.40 0491 Info Systems Technician Senior MEA491 34.10 35.98 37.95 40.04 42.24 0155 Irrigation Crewleader MEA155 34.10 35.98 37.95 40.04 42.24 0359 Landscape Equip Operator MEA359 26.33 27.77 29.30 30.90 32.60 0145 Landscape Maint Crewleader MEA145 34.10 35.98 37.95 40.04 42.24 0402 Landscape Maint Leadworker MEA402 28.50 30.06 31.71 33.46 35.30 0163 Latent Fingerprint Examiner MEA163 32.11 33.88 35.75 37.71 39.79 0300 Legal Assistant MEA300 26.83 28.31 29.87 31.51 33.25 0114 Librarian MEA114 29.07 30.67 32.35 34.13 36.01 0432 Library Facilities Coordinator MEA432 26.19 27.62 29.14 30.74 32.44 0451 Library Services Clerk MEA451 20.30 21.42 22.59 23.83 25.14 0257 Library Specialist MEA257 24.17 25.50 26.90 28.38 29.94 0302 Literacy Program Specialist MEA302 29.07 30.67 32.35 34.13 36.01 0392 Maint Service Worker MEA392 24.17 25.50 26.90 28.38 29.94 0394 Maintenance Worker MEA394 21.24 22.41 23.64 24.93 26.31 0448 Marine Equipment Mechanic MEA448 31.66 33.40 35.23 37.16 39.20 0384 Mechanic I MEA384 25.02 26.39 27.85 29.38 31.00 0348 Mechanic II MEA348 27.79 29.33 30.94 32.64 34.43 0347 Mechanic III MEA347 29.51 31.13 32.85 34.65 36.56 0380 Media Services Specialist MEA380 24.17 25.50 26.90 28.38 29.94 0306 Office Assistant I MEA306 17.22 18.17 19.17 20.23 21.34 0304 Office Assistant II MEA304 20.71 21.86 23.06 24.32 25.66 0290 Office Specialist MEA290 21.86 23.06 24.33 25.67 27.08 0378 Painter Leadworker MEA378 31.16 32.88 34.69 36.60 38.62 0153 Park Maintenance Crewleader MEA153 34.97 36.89 38.92 41.06 43.32 0177 Parking Meter Repair Tech MEA177 27.79 29.33 30.94 32.64 34.43 0395 Parking Meter Repair Worker MEA395 25.65 27.06 28.55 30.13 31.79 0570 Parking/Camping Assistant MEA570 21.24 22.41 23.64 24.93 26.31 0459 Parking/Camping Crewleader MEA459 34.10 35.98 37.95 40.04 42.24 635 0401 Parking/Camping Leadworker MEA401 28.50 30.06 31.71 33.46 35.30 0455 Parking/Traffic Control Coord MEA455 26.83 28.31 29.87 31.51 33.25 0262 Parking/Traffic Control Officr MEA262 21.24 22.41 23.64 24.93 26.31 0577 Parking/Traffic Control Supv MEA577 28.64 30.21 31.88 33.62 35.47 0458 Payroll Specialist MEA458 37.29 39.34 41.51 43.80 46.21 0447 Payroll Technician MEA447 25.15 26.53 27.99 29.53 31.15 0295 Permit Technician MEA295 23.11 24.38 25.72 27.14 28.63 0279 Personnel Assistant MEA279 24.43 25.77 27.18 28.67 30.25 0367 Pest Control Specialist MEA367 25.53 26.93 28.41 29.98 31.63 0136 Planning Aide MEA136 26.83 28.31 29.87 31.51 33.25 0342 Plumber MEA342 30.25 31.91 33.67 35.52 37.48 0197 Police Photo/Imaging Specialist MEA197 29.81 31.45 33.18 35.01 36.93 0307 Police Records Specialist MEA307 21.86 23.06 24.33 25.67 27.08 0283 Police Records Supervisor MEA283 25.53 26.93 28.41 29.98 31.63 0282 Police Records Technician MEA282 19.81 20.90 22.04 23.25 24.52 0308 Police Services Specialist MEA308 24.17 25.50 26.90 28.38 29.94 0215 Police Systems Coordinator MEA215 28.21 29.76 31.40 33.13 34.95 0584 Program Coord - Human Srvcs MEA584 29.81 31.45 33.18 35.01 36.93 0259 *Property and Evidence Officer MEA259 26.58 28.03 29.58 31.21 32.92 0261 *Property and Evidence Supervisor MEA261 30.71 32.40 34.17 36.06 38.04 0583 Rideshare Coordinator MEA583 33.09 34.92 36.84 38.87 41.01 0256 Risk Management Specialist MEA256 24.17 25.50 26.90 28.38 29.94 0515 SCADA Coordinator MEA515 34.10 35.98 37.95 40.04 42.24 0346 SCADA Technician MEA346 30.25 31.91 33.67 35.52 37.48 0110 Senior Accountant MEA110 37.29 39.34 41.51 43.80 46.21 0288 Senior Accounting Technician MEA288 27.24 28.74 30.32 31.98 33.74 0434 Senior Code Enforcement Officer MEA434 34.80 36.71 38.73 40.86 43.10 0171 Senior Construction Inspector MEA171 37.49 39.55 41.72 44.02 46.44 0135 Senior Deputy City Clerk MEA135 33.43 35.26 37.21 39.26 41.42 0586 Senior Engineering Technician MEA586 38.24 40.35 42.57 44.91 47.39 0343 Senior Facilities Maint Tech MEA343 29.51 31.13 32.85 34.65 36.56 0334 Senior Helicopter Maint Tech MEA334 40.62 42.85 45.21 47.69 50.31 0450 Senior Library Specialist MEA450 26.45 27.90 29.44 31.05 32.76 0363 Senior Marine Equip Mechanic MEA363 35.15 37.08 39.12 41.27 43.53 636 0446 Senior Payroll Technician MEA446 27.65 29.18 30.78 32.48 34.26 0437 Senior Permit Technician MEA437 29.51 31.13 32.85 34.65 36.56 0265 Senior Services Assistant MEA265 16.14 17.02 17.96 18.95 20.00 0481 Senior Services Transp Coord MEA481 25.80 27.21 28.71 30.29 31.95 0349 Senior Wastewtr Pump Mechanic MEA349 26.33 27.77 29.30 30.90 32.60 0396 Senior Water Meter Reader MEA396 25.40 26.79 28.27 29.82 31.46 0148 Signs & Markings Crewleader MEA148 34.97 36.89 38.92 41.06 43.32 0338 Signs Leadworker MEA338 29.07 30.67 32.35 34.13 36.01 0354 Signs/Markings Equip Operator MEA354 26.33 27.77 29.30 30.90 32.60 0266 Social Worker MEA266 28.36 29.91 31.55 33.29 35.12 0386 Stock Clerk MEA386 21.24 22.41 23.64 24.93 26.31 0361 Street Equip Operator MEA361 26.33 27.77 29.30 30.90 32.60 0150 Street Maint Crewleader MEA150 34.10 35.98 37.95 40.04 42.24 0406 Street Maint Leadworker MEA406 29.95 31.61 33.34 35.18 37.11 0183 Survey Party Chief MEA183 38.44 40.55 42.79 45.14 47.62 0174 Survey Technician I MEA174 26.83 28.31 29.87 31.51 33.25 0185 Survey Technician II MEA185 29.07 30.67 32.35 34.13 36.01 0195 Telecommunications Specialist MEA195 38.63 40.76 43.00 45.37 47.86 0181 Traffic Engineering Technician MEA181 34.97 36.89 38.92 41.06 43.32 0389 Traffic Maint Service Worker MEA389 24.17 25.50 26.90 28.38 29.94 0410 Traffic Markings Leadworker MEA410 28.50 30.06 31.71 33.46 35.30 0336 Traffic Signal Electrician MEA336 31.50 33.22 35.05 36.98 39.01 0140 Traffic Signal/Light Crewleadr MEA140 34.97 36.89 38.92 41.06 43.32 0365 Tree Equipment Operator MEA365 26.33 27.77 29.30 30.90 32.60 0144 Trees Maintenance Crewleader MEA144 34.10 35.98 37.95 40.04 42.24 0460 Trees Maintenance Leadworker MEA460 28.50 30.06 31.71 33.46 35.30 0268 Volunteer Services Coordinator MEA268 25.80 27.21 28.71 30.29 31.95 0385 Warehousekeeper MEA385 26.83 28.31 29.87 31.51 33.25 0362 Wastewater Equip Operator MEA362 26.33 27.77 29.30 30.90 32.60 0454 Wastewater Maint Service Workr MEA454 24.17 25.50 26.90 28.38 29.94 0146 Wastewater Ops Crewleader MEA146 34.10 35.98 37.95 40.04 42.24 0404 Wastewater Ops Leadworker MEA404 28.50 30.06 31.71 33.46 35.30 0387 Wastewater Pump Mechanic MEA387 25.65 27.06 28.55 30.13 31.79 0582 Water Conservation Coordinator MEA582 33.09 34.92 36.84 38.87 41.01 637 0151 Water Dist Maint Crewleader MEA151 34.10 35.98 37.95 40.04 42.24 0379 Water Dist Maint Leadworker MEA379 30.86 32.56 34.35 36.24 38.23 0147 Water Dist Meters Crewleader MEA147 34.10 35.98 37.95 40.04 42.24 0377 Water Dist Meters Leadworker MEA377 28.50 30.06 31.71 33.46 35.30 0364 Water Equip Operator MEA364 28.50 30.06 31.71 33.46 35.30 0397 Water Meter Reader MEA397 23.46 24.74 26.10 27.54 29.05 0356 Water Meter Repair Technician MEA356 26.19 27.62 29.14 30.74 32.44 0152 Water Operations Crewleader MEA152 34.10 35.98 37.95 40.04 42.24 0371 Water Operations Leadworker MEA371 31.81 33.56 35.40 37.35 39.40 0156 Water Quality Coordinator MEA156 34.10 35.98 37.95 40.04 42.24 0191 Water Quality Technician MEA191 29.95 31.61 33.34 35.18 37.11 0461 Water Service Worker MEA461 24.90 26.27 27.72 29.24 30.85 0368 Water Systems Technician I MEA368 24.90 26.27 27.72 29.24 30.85 0369 Water Systems Technician II MEA369 26.58 28.03 29.58 31.21 32.92 0370 Water Systems Technician III MEA370 29.35 30.97 32.67 34.48 36.38 0449 Water Utility Locator MEA449 29.95 31.61 33.34 35.18 37.11 2.0% Effective September 24, 2016 CLASS PLAN MODIFICATIONS: *Modified 8/07/17; **Modified 11/06/17; ***Modified 01/16/18 Job type Description Pay Grade A B C D E 0111 Accountant MEA111 32.45 34.23 36.11 38.09 40.19 0286 Accounting Technician I MEA286 22.54 23.78 25.09 26.47 27.92 0287 Accounting Technician II MEA287 24.78 26.14 27.58 29.10 30.70 0294 Accounting Technician Supv MEA294 28.64 30.21 31.88 33.62 35.47 0428 Administrative Aide MEA428 31.81 33.56 35.40 37.35 39.40 0278 Administrative Assistant MEA278 28.08 29.62 31.25 32.97 34.78 0289 Administrative Secretary MEA289 23.92 25.24 26.63 28.10 29.64 0297 Art Programs Curator MEA297 28.36 29.91 31.55 33.29 35.12 0698 **Assistant Civil Engineer MEA698 32.45 34.23 36.11 38.09 40.19 0108 Assistant Planner MEA108 33.27 35.09 37.02 39.06 41.21 638 0267 Assistant Social Worker MEA267 23.11 24.38 25.72 27.14 28.63 0358 Beach Equip Operator MEA358 26.33 27.77 29.30 30.90 32.60 0149 Beach Maint Crewleader MEA149 34.10 35.98 37.95 40.04 42.24 0452 Beach Maint Service Worker MEA452 24.17 25.50 26.90 28.38 29.94 0210 Building Inspector I MEA210 30.71 32.39 34.17 36.05 38.04 0211 Building Inspector II MEA211 33.94 35.80 37.77 39.84 42.03 0208 Building Inspector III MEA208 37.49 39.55 41.72 44.02 46.44 0176 Building Plan Checker I MEA176 36.94 38.97 41.11 43.37 45.76 0520 Building Plan Checker II MEA520 42.89 45.25 47.74 50.37 53.14 0366 ***Business License Supervisor MEA366 33.43 35.26 37.21 39.26 41.42 0112 Buyer MEA112 31.96 33.72 35.58 37.53 39.59 0106 Civil Engineering Assistant MEA106 37.86 39.94 42.14 44.46 46.91 0162 Civilian Check Investigator MEA162 25.40 26.79 28.27 29.82 31.46 0186 Code Enforcement Officer I MEA186 25.53 26.93 28.41 29.98 31.63 0182 Code Enforcement Officer II MEA182 31.50 33.22 35.05 36.98 39.01 0511 Code Enforcement Technician MEA511 21.24 22.41 23.64 24.93 26.31 0263 Community Relations Specialist MEA263 26.83 28.31 29.87 31.51 33.25 0597 Community Services Officer MEA597 27.51 29.03 30.62 32.31 34.09 0269 Community Srvcs Rec Specialist MEA269 24.17 25.50 26.90 28.38 29.94 0258 Community Srvcs Rec Supv MEA258 33.43 35.26 37.21 39.26 41.42 0172 Construction Inspector I MEA172 30.71 32.39 34.17 36.05 38.04 0463 Construction Inspector II MEA463 33.94 35.80 37.77 39.84 42.03 0312 Court Liaison Specialist MEA312 23.92 25.24 26.63 28.10 29.64 0166 Crime Analyst MEA166 31.81 33.56 35.40 37.35 39.40 0165 Crime Analyst Senior MEA165 37.11 39.15 41.31 43.59 45.98 0255 Crime Scene Investigator MEA255 29.95 31.61 33.34 35.18 37.11 0119 Criminalist MEA119 33.43 35.26 37.21 39.26 41.42 0192 Cross Connection Control Spec MEA192 31.50 33.22 35.05 36.98 39.01 0400 Custodian MEA400 21.76 22.96 24.22 25.55 26.95 0134 Deputy City Clerk MEA134 26.19 27.62 29.14 30.74 32.44 639 0138 Development Specialist MEA138 33.43 35.26 37.21 39.26 41.42 0339 Electrician MEA339 31.01 32.72 34.52 36.42 38.43 0232 Emergency Medical Srvcs Coord MEA232 47.40 50.00 52.75 55.65 58.72 0198 Emergency Services Coordinator MEA198 40.82 43.07 45.43 47.93 50.56 0175 Engineering Aide MEA175 26.83 28.31 29.87 31.51 33.25 0180 Engineering Technician MEA180 32.93 34.75 36.66 38.68 40.80 0445 Environmental Specialist MEA445 37.86 39.94 42.14 44.46 46.91 0382 Equip Services Crewleader MEA382 35.15 37.08 39.12 41.27 43.53 0142 Equip/Auto Maint Crewleader MEA142 35.15 37.08 39.12 41.27 43.53 0472 Equip/Auto Maint Leadworker MEA472 31.96 33.72 35.58 37.53 39.59 0383 Equipment Support Assistant MEA383 24.90 26.27 27.72 29.24 30.85 0061 Executive Assistant MEA061 32.29 34.06 35.92 37.90 39.98 0143 Facilities Maint Crewleader MEA143 34.97 36.89 38.92 41.06 43.32 0407 Facilities Maint Leadworker MEA407 27.24 28.74 30.32 31.98 33.74 0391 Facilities Maintenance Tech MEA391 25.15 26.53 27.99 29.53 31.15 0398 Field Service Representative MEA398 25.93 27.35 28.85 30.44 32.11 0588 Fire Prevention Inspector MEA588 38.44 40.55 42.79 45.14 47.62 0260 Fire Safety Program Specialist MEA260 32.45 34.23 36.11 38.09 40.19 0173 Fire Training Maintenance Tech MEA173 29.81 31.45 33.18 35.01 36.93 0470 Forensic Systems Specialist MEA470 35.84 37.81 39.90 42.09 44.40 0576 GIS Analyst I MEA576 36.57 38.58 40.70 42.94 45.30 0178 GIS Analyst II MEA178 39.60 41.78 44.08 46.51 49.07 0190 Haz Mat Program Specialist MEA190 36.20 38.19 40.29 42.51 44.85 0337 Helicopter Maintenance Tech MEA337 29.35 30.97 32.67 34.48 36.38 0115 *Info Systems Technology Analyst I MEA115 36.57 38.58 40.70 42.94 45.30 0505 *Info Systems Technology Analyst II MEA505 39.60 41.78 44.08 46.51 49.07 0117 *Info Systems Technology Analyst III MEA117 42.27 44.59 47.04 49.63 52.36 0118 *Info Systems Technology Analyst IV MEA118 46.46 49.02 51.71 54.55 57.55 0495 *Info Systems Technology Technician I MEA495 22.78 24.03 25.34 26.74 28.21 0494 *Info Systems Technology Technician II MEA494 25.65 27.06 28.55 30.13 31.79 640 0493 *Info Systems Technology Technician III MEA493 28.77 30.35 32.03 33.79 35.64 0492 *Info Systems Technology Technician IV MEA492 31.81 33.56 35.40 37.35 39.40 0491 *Info Systems Technology Technician Sr. MEA491 34.10 35.98 37.95 40.04 42.24 0155 Irrigation Crewleader MEA155 34.10 35.98 37.95 40.04 42.24 0357 Irrigation Specialist MEA357 25.53 26.93 28.41 29.98 31.63 0359 Landscape Equip Operator MEA359 26.33 27.77 29.30 30.90 32.60 0145 Landscape Maint Crewleader MEA145 34.10 35.98 37.95 40.04 42.24 0402 Landscape Maint Leadworker MEA402 28.50 30.06 31.71 33.46 35.30 0163 Latent Fingerprint Examiner MEA163 32.11 33.88 35.75 37.71 39.79 0300 Legal Assistant MEA300 26.83 28.31 29.87 31.51 33.25 0114 Librarian MEA114 29.07 30.67 32.35 34.13 36.01 0432 Library Facilities Coordinator MEA432 26.19 27.62 29.14 30.74 32.44 0451 Library Services Clerk MEA451 20.30 21.42 22.59 23.83 25.14 0257 Library Specialist MEA257 24.17 25.50 26.90 28.38 29.94 0302 Literacy Program Specialist MEA302 29.07 30.67 32.35 34.13 36.01 0392 Maint Service Worker MEA392 24.17 25.50 26.90 28.38 29.94 0394 Maintenance Worker MEA394 21.24 22.41 23.64 24.93 26.31 0448 Marine Equipment Mechanic MEA448 31.66 33.40 35.23 37.16 39.20 0384 Mechanic I MEA384 25.02 26.39 27.85 29.38 31.00 0348 Mechanic II MEA348 27.79 29.33 30.94 32.64 34.43 0347 Mechanic III MEA347 29.51 31.13 32.85 34.65 36.56 0380 Media Services Specialist MEA380 24.17 25.50 26.90 28.38 29.94 0306 Office Assistant I MEA306 17.22 18.17 19.17 20.23 21.34 0304 Office Assistant II MEA304 20.71 21.86 23.06 24.32 25.66 0290 Office Specialist MEA290 21.86 23.06 24.33 25.67 27.08 0378 Painter Leadworker MEA378 31.16 32.88 34.69 36.60 38.62 0153 Park Maintenance Crewleader MEA153 34.97 36.89 38.92 41.06 43.32 0177 Parking Meter Repair Tech MEA177 27.79 29.33 30.94 32.64 34.43 0395 Parking Meter Repair Worker MEA395 25.65 27.06 28.55 30.13 31.79 641 0570 Parking/Camping Assistant MEA570 21.24 22.41 23.64 24.93 26.31 0459 Parking/Camping Crewleader MEA459 34.10 35.98 37.95 40.04 42.24 0401 Parking/Camping Leadworker MEA401 28.50 30.06 31.71 33.46 35.30 0455 Parking/Traffic Control Coord MEA455 26.83 28.31 29.87 31.51 33.25 0262 Parking/Traffic Control Officr MEA262 21.24 22.41 23.64 24.93 26.31 0577 Parking/Traffic Control Supv MEA577 28.64 30.21 31.88 33.62 35.47 0458 Payroll Specialist MEA458 37.29 39.34 41.51 43.80 46.21 0447 Payroll Technician MEA447 25.15 26.53 27.99 29.53 31.15 0295 Permit Technician MEA295 23.11 24.38 25.72 27.14 28.63 0279 Personnel Assistant MEA279 24.43 25.77 27.18 28.67 30.25 0367 Pest Control Specialist MEA367 25.53 26.93 28.41 29.98 31.63 0136 Planning Aide MEA136 26.83 28.31 29.87 31.51 33.25 0342 Plumber MEA342 30.25 31.91 33.67 35.52 37.48 0197 Police Photo/Imaging Specialist MEA197 29.81 31.45 33.18 35.01 36.93 0307 Police Records Specialist MEA307 21.86 23.06 24.33 25.67 27.08 0283 Police Records Supervisor MEA283 25.53 26.93 28.41 29.98 31.63 0282 Police Records Technician MEA282 19.81 20.90 22.04 23.25 24.52 0308 Police Services Specialist MEA308 24.17 25.50 26.90 28.38 29.94 0215 Police Systems Coordinator MEA215 28.21 29.76 31.40 33.13 34.95 0584 Program Coord - Human Srvcs MEA584 29.81 31.45 33.18 35.01 36.93 0259 *Property and Evidence Officer MEA259 26.58 28.03 29.58 31.21 32.92 0261 *Property and Evidence Supervisor MEA261 30.71 32.40 34.17 36.06 38.04 0583 Rideshare Coordinator MEA583 33.09 34.92 36.84 38.87 41.01 0256 Risk Management Specialist MEA256 24.17 25.50 26.90 28.38 29.94 0515 SCADA Coordinator MEA515 34.10 35.98 37.95 40.04 42.24 0346 SCADA Technician MEA346 30.25 31.91 33.67 35.52 37.48 0110 Senior Accountant MEA110 37.29 39.34 41.51 43.80 46.21 0288 Senior Accounting Technician MEA288 27.24 28.74 30.32 31.98 33.74 0434 Senior Code Enforcement Officer MEA434 34.80 36.71 38.73 40.86 43.10 0171 Senior Construction Inspector MEA171 37.49 39.55 41.72 44.02 46.44 642 0135 Senior Deputy City Clerk MEA135 33.43 35.26 37.21 39.26 41.42 0586 Senior Engineering Technician MEA586 38.24 40.35 42.57 44.91 47.39 0343 Senior Facilities Maint Tech MEA343 29.51 31.13 32.85 34.65 36.56 0334 Senior Helicopter Maint Tech MEA334 40.62 42.85 45.21 47.69 50.31 0450 Senior Library Specialist MEA450 26.45 27.90 29.44 31.05 32.76 0363 Senior Marine Equip Mechanic MEA363 35.15 37.08 39.12 41.27 43.53 0446 Senior Payroll Technician MEA446 27.65 29.18 30.78 32.48 34.26 0437 Senior Permit Technician MEA437 29.51 31.13 32.85 34.65 36.56 0265 Senior Services Assistant MEA265 16.14 17.02 17.96 18.95 20.00 0481 Senior Services Transp Coord MEA481 25.80 27.21 28.71 30.29 31.95 0709 *Senior Telecommunications Technician MEA709 34.10 35.98 37.95 40.04 42.24 0349 Senior Wastewtr Pump Mechanic MEA349 26.33 27.77 29.30 30.90 32.60 0396 Senior Water Meter Reader MEA396 25.40 26.79 28.27 29.82 31.46 0148 Signs & Markings Crewleader MEA148 34.97 36.89 38.92 41.06 43.32 0338 Signs Leadworker MEA338 29.07 30.67 32.35 34.13 36.01 0354 Signs/Markings Equip Operator MEA354 26.33 27.77 29.30 30.90 32.60 0266 Social Worker MEA266 28.36 29.91 31.55 33.29 35.12 0386 Stock Clerk MEA386 21.24 22.41 23.64 24.93 26.31 0361 Street Equip Operator MEA361 26.33 27.77 29.30 30.90 32.60 0150 Street Maint Crewleader MEA150 34.10 35.98 37.95 40.04 42.24 0406 Street Maint Leadworker MEA406 29.95 31.61 33.34 35.18 37.11 0183 Survey Party Chief MEA183 38.44 40.55 42.79 45.14 47.62 0174 Survey Technician I MEA174 26.83 28.31 29.87 31.51 33.25 0185 Survey Technician II MEA185 29.07 30.67 32.35 34.13 36.01 0195 Telecommunications Specialist MEA195 38.63 40.76 43.00 45.37 47.86 0181 Traffic Engineering Technician MEA181 34.97 36.89 38.92 41.06 43.32 0389 Traffic Maint Service Worker MEA389 24.17 25.50 26.90 28.38 29.94 0410 Traffic Markings Leadworker MEA410 28.50 30.06 31.71 33.46 35.30 0336 Traffic Signal Electrician MEA336 31.50 33.22 35.05 36.98 39.01 0140 Traffic Signal/Light Crewleadr MEA140 34.97 36.89 38.92 41.06 43.32 643 0365 Tree Equipment Operator MEA365 26.33 27.77 29.30 30.90 32.60 0144 Trees Maintenance Crewleader MEA144 34.10 35.98 37.95 40.04 42.24 0460 Trees Maintenance Leadworker MEA460 28.50 30.06 31.71 33.46 35.30 0268 Volunteer Services Coordinator MEA268 25.80 27.21 28.71 30.29 31.95 0385 Warehousekeeper MEA385 26.83 28.31 29.87 31.51 33.25 0362 Wastewater Equip Operator MEA362 26.33 27.77 29.30 30.90 32.60 0454 Wastewater Maint Service Workr MEA454 24.17 25.50 26.90 28.38 29.94 0146 Wastewater Ops Crewleader MEA146 34.10 35.98 37.95 40.04 42.24 0404 Wastewater Ops Leadworker MEA404 28.50 30.06 31.71 33.46 35.30 0387 Wastewater Pump Mechanic MEA387 25.65 27.06 28.55 30.13 31.79 0582 Water Conservation Coordinator MEA582 33.09 34.92 36.84 38.87 41.01 0151 Water Dist Maint Crewleader MEA151 34.10 35.98 37.95 40.04 42.24 0379 Water Dist Maint Leadworker MEA379 30.86 32.56 34.35 36.24 38.23 0147 Water Dist Meters Crewleader MEA147 34.10 35.98 37.95 40.04 42.24 0377 Water Dist Meters Leadworker MEA377 28.50 30.06 31.71 33.46 35.30 0364 Water Equip Operator MEA364 28.50 30.06 31.71 33.46 35.30 0397 Water Meter Reader MEA397 23.46 24.74 26.10 27.54 29.05 0356 Water Meter Repair Technician MEA356 26.19 27.62 29.14 30.74 32.44 0152 Water Operations Crewleader MEA152 34.10 35.98 37.95 40.04 42.24 0371 Water Operations Leadworker MEA371 31.81 33.56 35.40 37.35 39.40 0156 Water Quality Coordinator MEA156 34.10 35.98 37.95 40.04 42.24 0191 Water Quality Technician MEA191 29.95 31.61 33.34 35.18 37.11 0461 Water Service Worker MEA461 24.90 26.27 27.72 29.24 30.85 0368 Water Systems Technician I MEA368 24.90 26.27 27.72 29.24 30.85 0369 Water Systems Technician II MEA369 26.58 28.03 29.58 31.21 32.92 0370 Water Systems Technician III MEA370 29.35 30.97 32.67 34.48 36.38 0449 Water Utility Locator MEA449 29.95 31.61 33.34 35.18 37.11 644 * Per Resolution 2017-37 adopted on 08/07/17 amending the titles of Information SystemsTechnician I-IV to Information Technology Technician I - IV; Senior Information Systems Technician to Senior Information Technology Technician; Information Systems Analyst I-IV to Information Technology Analyst I-IV; Senior Information Systems Analyst to Senior Information Technology Analyst; and adding the new job classification of Senior Telecommunications Technician. ** Per Resolution 2017-49 adopted on 11/06/17 the position of Assistant Civil Engineer was created. *** Per Resolution 2018-07 adopted on 01/16/18 the position of Business License Supervisor was created. 645 UNIFORM POLICY A. General The City shall furnish uniforms to those employees designated by the various Department Heads as required to wear a standard uniform for appearance, uniformity and public recognition purposes, in the procedures and guidelines set forth hereinafter. B. Affected Employees All employees listed in Exhibit B-1 shall wear a standard City adopted uniform. Each Department Head shall determine which employees must wear a uniform. The Uniform Listing by Category/Class shall be indicated in the document attached hereto and by this reference incorporated herein as Exhibit B-1. C. Personal Protective Equipment (PPE) All personal protective equipment as related to employee job duties and responsibilities shall be provided based upon Supervisor designated need. Examples of personal protective equipment include, but may not be limited to the following: hardhats, foul weather gear, steel-toed rubber boots, steel-toed caps, wood heat resistant soles, special hazard gloves, safety glasses, face shields, ear protectors and arm and shin guards. R-1 safety vests shall be furnished to all employees having occasion to work within travel ways. D. Safety Shoes 1. Safety toe shoes or boots as each assignment dictates. a. Two pair per year. b. Damaged shoes shall be turned into operating Supervisor who shall authorize replacement or repair. 2. The maximum amount to be reimbursed for a pair of safety shoes will not exceed two hundred and twenty-five dollars ($225.00) per pair every six months or sooner, if necessary. 3. Shoes or boots shall be purchased through designated standard outlets. E. Employee Responsibilities 1. Wear a clean and complete uniform as required. 2. Uniform appearance shall include: a. Patch to be worn above left shirt or jacket pocket. b. Pants to have no cuffs. c. Worn with pride in appearance to public (i.e., shirt buttoned, shirttail tucked in, etc). 3. Wash and provide minimum repair (i.e., buttons, small tears, etc). 646 4. Provide any alterations necessary including sewing on of City patches. 5. Wear the uniform only when on duty or performing work. 6. Notify the Supervisor of the need to replace due to disrepair or severe staining producing an undesirable appearance. 7. Turn in all uniform components, including patches upon termination. 8. Turn in all personal protective equipment upon termination. 9. Wear all personal protective equipment prescribed by the City Safety Officer and Supervisor of the division. F. City Responsibilities 1. Furnish funding for the agreed uniform allowances. 2. Report to the California Public Employees Retirement System (CalPERS) the cost of uniforms provided as set forth in Uniform Listing by Cate gory/Class, Exhibit B-1, for each class as special compensation in accordance with Title 2, California Code of Regulations, Section 571(a)(5). For employees that are not required to wear uniforms on a daily basis or who are not actively employed for an entire payroll calendar year, a prorated cost of uniforms may apply. 3. Provide and maintain one or more retail clothing outlets for the various allotments. City reserves the right to name vendor. 4. Maintain records of purchases. G. Department Head or Designee Responsibilities 1. Ensure employee compliance with the Uniform Policy. 2. Approve replacement of deteriorated uniform component(s) and personal protective equipment as required and to maintain a listing for each eligible employee, by name and class, of all uniform component(s) and personal protective equipment purchased. 3. Confirm receipt of uniforms, patches and personal protective equipment from an employee upon termination. A Termination Checklist Form is to be completed, signed by the employee, and submitted to the Human Resources Office. 4. Report to the Human Resources Director any changes to the Uniform Listing by Category/Class (Exhibit B-1). The City reserves the right to add, delete, change or modify the Uniform Listing as required. 647 Exhibit B-1 Category of Uniform Category of Uniform Group 1: 5 Shirts, T-Shirts and Pants, Patches, 1 Jacket (PW/CS Field Issue), Group 2: 1 Blue Suit, 2 Pants/ Polo Shirts, 1 Sweater, 1 Pair Shoes (Fire) Group 3: 2 Blue Shirts, 3 Pants/Skirts, 1 (choice) Jacket/Sweater/Sweatshirt (PD) Group 4: 2 Polo Shirts, 2 Pants or 2 Shorts, 1 Hat (CS) Group 5: 5 Polo Shirts, 1 Jacket, 1 Windbreaker (not annually), 1 Hat (Inspection), Shoes PPE/Safety for Inspectors only (not CalPERS reportable) Group 6: 2 T-Shirts (CS) Group 8: 4 Battle Dress Uniform, 4 Polo Shirts, 1 Jacket, 1 Rain suit (PD) Group 9: 4 Blue Pants, 2 Shorts, 4 Polos or Blue Shirts,1 Jacket, 1 Rain suit (PD) Group 10: 5 Shirts, 5 Pants, Shoes PPE/Safety not PERS reportable Group 11: 3 Shirts, 3 Pants, Boots PPE/Safety not PERS reportable Group 12: 5 Polo Shirts, 3 Pants, 1 Sweatshirt or Windbreaker (IS) Uniform Listing by Category/Class* Department Job Type Class Category of Uniform Notes Comm Svcs 0358 Beach Equip Operator 1 Comm Svcs 0149 Beach Maint Crewleader 1 Comm Svcs 0452 Beach Maint Service Worker 1 Comm Svcs 0258 Community Services Recreation Supervisor 6 Daily wear not required. Used for special events and/or sports leagues. Frequency of use varies - seasonal from weekly to monthly Comm Svcs 0269 Community Services/Recreation Specialist 6 Daily wear not required. Special events and/or sports leagues use only. Frequency varies from weekly to monthly according to season. Comm Svcs 0448 Marine Equipment Mechanic 1 Comm Svcs 0177 Parking Meter Repair Tech 1 Comm Svcs 0395 Parking Meter Repair Worker 1 Comm Srvc 0570 Parking/Camping Assistant 4 Comm Svcs 0459 Parking/Camping Crewleader 4 Comm Svcs 0401 Parking/Camping Leadworker 4 Comm Svcs 0363 Senior Marine Equip Mechanic 1 648 Department Job Type Class Category of Uniform Notes Comm Svcs 0265 Senior Services Assistant 6 Bus Driver only Finance Public Works 0398 Field Services Representative 1 Fire 0232 Emergency Medical Svcs Coord 2 Fire 0198 Emergency Services Coordinator 2 Daily wear not required Fire 0260 Fire Safety Program Specialist 2 Fire 0173 Fire Training Maintenance Tech 11 Fire 0190 Haz Mat Program Specialist 10 Information Services 0492 Info Systems Technology Technician IV 12 Daily wear not required Community Development 0210 Building Inspector I 5 Community Development 0211 Building Inspector II 5 Community Development 0208 Building Inspector III 5 Community Development 0186 Code Enforcement Officer I 5 Community Development 0182 Code Enforcement Officer II 5 Community Development 0511 Code Enforcement Tech 5 Community Development 0434 Senior Code Enforcement Officer 5 Police 0263 Community Relations Specialist 3 Daily wear not required Police 0471 Community Services Officer 9 Police 0255 Crime Scene Investigator 8 Police 0337 Helicopter Maintenance Tech 1 Police 0455 Parking/Traffic Control Coordinator 9 Police 0262 Parking/Traffic Control Officer 9 Police 0577 Parking/Traffic Control Supv 9 Police 0307 Police Records Specialist 3 In Records Division only Police 0283 Police Records Supervisor 3 Police 0282 Police Records Technician 3 Police 0308 Police Services Specialist 3 In Records Division only Police 0215 Police Systems Coordinator 3 Police 0259 Property and Evidence Officer 9 Police 0261 Property and Evidence Supervisor 9 Police 0334 Senior Helicopter Maint Tech 1 Public Works 0172 Construction Inspector I 5 Public Works 0463 Construction Inspector II 5 Public Works 0192 Cross Connection Control Spec 5 Public Works 0339 Electrician 1 Public Works 0445 Environmental Specialist 5 Public Works 0382 Equip Services Crewleader 1 Public Works 0142 Equip/Auto Maint Crewleader 1 Public Works 0472 Equip/Auto Maint Leadworker 1 Public Works 0383 Equipment Support Assistant 1 Public Works 0407 Facilities Maint Leadworker 1 649 Department Job Type Class Category of Uniform Notes Public Works 0391 Facilities Maintenance Tech 1 Public Works 0155 Irrigation Crewleader 1 Public Works 0359 Landscape Equip Operator 1 Public Works 0145 Landscape Maint Crewleader 1 Public Works 0402 Landscape Maint Leadworker 1 Public Works 0392 Maintenance Service Worker 1 Public Works 0394 Maintenance Worker 1 Public Works 0384 Mechanic I 1 Public Works 0348 Mechanic II 1 Public Works 0347 Mechanic III 1 Public Works 0378 Painter Leadworker 1 Public Works 0153 Park Maintenance Crewleader 1 Public Works 0367 Pest Control Specialist 1 Public Works 0342 Plumber 1 Public Works 0515 SCADA Coordinator 5 Public Works 0346 SCADA Technician 1 Public Works 0171 Senior Construction Inspector 5 Public Works 0343 Senior Facilities Maint Tech 1 Public Works 0350 Senior Vehicle Body Technician 1 Public Works 0349 Senior Wastewater Pump Mechanic 1 Public Works 0396 Senior Water Meter Reader 1 Public Works 0338 Signs Leadworker 1 Public Works 0148 Signs/Markings Crewleader 1 Public Works 0354 Signs/Markings Equip Operator 1 Public Works 0361 Street Equip Operator 1 Public Works 0150 Street Maint Crewleader 1 Public Works 0406 Street Maint Leadworker 1 Public Works 0183 Survey Party Chief 5 Public Works 0174 Survey Technician 5 Public Works 0185 Survey Technician II 5 Public Works 0389 Traffic Maint Service Worker 1 Public Works 0410 Traffic Markings Leadworker 1 Public Works 0336 Traffic Signals Electrician 1 Public Works 0140 Traffic Signal/Light Crewleader 1 Public Works 0365 Tree Equipment Operator 1 Public Works 0460 Trees Maint Leadworker 1 Public Works 0144 Trees Maintenance Crewleader 1 Public Works 0385 Warehousekeeper 1 Public Works 0362 Wastewater Equipment Operator 1 Public Works 0454 Wastewater Maint Service Worker 1 Public Works 0146 Wastewater Ops Crewleader 5 Public Works 0404 Wastewater Ops Leadworker 1 Public Works 0387 Wastewater Pump Mechanic 1 Public Works 0151 Water Dist Maint Crewleader 1 Public Works 0379 Water Dist Maint Leadworker 1 Public Works 0147 Water Dist Meters Crewleader 5 Public Works 0377 Water Dist Meters Leadworker 1 650 Department Job Type Class Category of Uniform Notes Public Works 0364 Water Equipment Operator 1 Public Works 0397 Water Meter Reader 1 Public Works 0356 Water Meter Repair Technician 1 Public Works 0152 Water Operations Crewleader 1 Public Works 0371 Water Operations Leadworker 1 Public Works 0461 Water Service Worker 1 Public Works 0368 Water Systems Technician I 1 Public Works 0369 Water Systems Technician II 1 Public Works 0370 Water Systems Technician III 1 Public Works 0449 Water Utility Locator 1 *Note: unless otherwise indicated, uniforms are required for daily wear. 651 VEHICLE USE POLICY Section 1 - Purpose The purpose of these regulations is to establish and implement City policies and procedures relative to the assignment, utilization and control of City-owned vehicles as transportation for employees who engage in official City business, to establish reimbursement procedures for privately-owned vehicles used for City business, and to clarify the City's responsibility for damage and/or liability for private vehicles used on official City business. Section 2 - Scope These regulations cover the use of City and private vehicles for conducting official City business and shall be applicable to all City departments and employees. Section 3 - Policy When necessary during the course of an employee's official duties, transportation or reimbursement therefore shall be provided by the City. In the event no City vehicle is available, the employee may use the personal vehicle with their approval of the Department Head. Employees authorized to drive either their own or a City-owned vehicle on official business must possess a valid California Driver License for the class of vehicle they will be operating. The transportation method authorized will be determined in terms of the best interests of the City. The general program set forth in this regulation will be implemented by the City Manager Office upon approval of the City Council and administered by the Department Heads in accordance with the policies herein established. It is the responsibility of each Department Head to enforce the provisions of this regulation as it relates to employees of his/her department. City-owned vehicles shall only be used for official City business. City-owned vehicles shall not be driven to and kept at the employee's home or any location other than the regular work location or Corporation Yard, except as provided by this regulation. Section 4 – Vehicle Use Criteria I. Assigned Vehicles: A. Assigned City vehicles may be taken home by employees whose residence is within ten (10) miles of City Hall for the uses as described below: 1. Executive use includes the City Manager, Assistant City Manager and Department Heads. 2. Emergency Response Units: a. Employees who are required to respond more than once per week on an average without delay in order to protect the public health, safety and property. b. Employees who are required to carry special emergency equipment in their vehicles, which must be utilized on a regular and frequent basis. (A radio in and of itself does not constitute special emergency equipment.) 3. Continuous use outside of regular working hours -- Employees who are called back on an unscheduled basis to perform official city business outside of regular working hours more than once per week on an average and who meet one of the following criteria: a. Mileage driven on official City business exceeds an average of five hundred (500) miles per month, or 652 b. Who regularly and frequently supervises subordinates or conducts inspections in the field, or c. Whose duties require the employee to be away from his/her base workstation greater than fifty percent (50%) of his/her working time, on an average. B. City vehicles, which shall not be taken home, may be assigned based on meeting one of the following criteria: 1. Monthly mileage driven exceeds an average of five hundred (500) miles per month and the vehicle is used for the purpose of supervision or inspection in the field, or 2. Duties require the employee to be away from his/her workstation, greater than fifty percent (50%) of his/her working time, on an average. II. Reimbursement of Use of Personal Vehicle: A. Executive Use – The City Manager, Assistant City Manager and Department Heads may, at their option, receive the automobile allowance as established by Resolution. B. Mileage Reimbursement -- Employees, upon authorization of their Department Head, may use their own vehicles on official City business and shall be reimbursed at current Internal Revenue Service (IRS) regulations while driving on official City business. 1. Employees shall submit monthly claims for reimbursement to their Department Head 2. Employees shall not be reimbursed for commuting to and from work, except that employees who are required to attend scheduled meetings outside of normal working hours may be reimbursed for mileage required. Section 5 – Insurance Requirements All privately-owned vehicles authorized to be used on official City business shall be insured by the individual employee in the minimum amount of fifty thousand dollars ($50,000.00) public liability for any one person and one hundred thousand dollars ($100,000.00) public liability for all persons, any one accident. They must also be insured for twenty thousand dollars ($25,000.00) property damage and fifteen thousand dollars ($15,000.00) for any one uninsured motorist and thirty thousand dollars ($30,000.00) for all uninsured motorists any one accident. Employee private vehicle information shall be reviewed and updated annually by the respective departments. The record maintained should contain the following current information.  Name of Employee  Operator’s License  Insurance Company  Driver’s License Expiration Date  Insurance Policy Number  Insurance Expiration Date  Amount of Coverage It shall be the Department Head's responsibility to insure that no privately owned vehicle is operated on City business without insurance coverage and a valid operator’s license as required by this regulation. Clarification on City Liability on Use of Private Vehicle: 653 In the event of damage to private vehicles, while on City business where a third party is negligent, the employee should collect damages (including insurance deductibles) from the third party. Where the employee is negligent, the City cannot be held liable for damages to the automobile, but the City can be held responsible for liability to third parties. The City shall be responsible to such employee for the first one hundred dollars ($100.00) of comprehensive and/or collision damages suffered by such employee to the extent that such employee's personal automobile insurance policy does not cover s uch first one hundred dollars ($100.00) damage. The employee's insurance policy is considered as the primary coverage, and the City liability begins after the limitations of the employee's coverage is exhausted. In the event a City employee's personal vehicle is damaged due to accident/collision while being used for official City business and the employee is deprived the use thereof, the City shall furnish such employee with a vehicle during such time as is reasonably required to repair said employee's vehicle. 654 PROVISIONS OF THE RETIREE MEDICAL SUBSIDY PLAN Employees hired on or after October 1, 2014 shall not be eligible for this benefit. An employee who has retired from the City shall be entitled to participate in the City sponsored medical insurance plans and the City shall contribute toward monthly premiums for coverage in an amount as specified in accordance with this Plan, provided: A. On the date of retirement the employee has a minimum of ten (10) years of continuous full time City service or is granted an industrial disability retirement; and B. At the time of retirement, the employee is employed by the City; and C. Following official separation from the City, the employee is granted a retirement allowance by the California Public Employees’ Retirement System. The City’s obligation to pay the monthly premium as indicated shall be modified downward or cease during the lifetime of the retiree upon the occurrence of any one of the following: 1. On the first of the month in which a retiree or dependent reaches age sixty five (65) or on the date the retiree or dependent can first apply and become eligible, automatically or voluntarily, for medical coverage under Medicare (whether or not such application is made) the City’s obligation to pay monthly premiums may be adjusted downward or eliminated. Benefit coverage at age sixty five (65) under the City’s medical plans shall be governed by applicable plan document. 2. In the event the federal government or state government mandates an employer- funded health plan or program for retirees, or mandates that the City make contributions toward a health plan (either private or public) for retirees, the City’s contribution rate as set forth in this plan shall first be applied to the mandatory plan. If there is any excess, that excess may be applied toward the City medical plan as supplemental coverage provided the retired employee pays the balance necessary for such coverage, if any. 3. In the event of the death of any employee, whether retired or not, the amount of the retiree medical insurance subsidy benefit which the deceased employee was receiving at the time of his/her death, or would be eligible to receive if he/she were retired at the time of death, shall be paid on behalf of the spouse or family for a period not to exceed twelve (12) months. SCHEDULE OF BENEFITS D. Minimum Eligibility for Benefits - With the exception of an industrial disability retirement, eligibility for benefits begin after an employee has completed ten (10) years of continuous service with the City of Huntington Beach. Said service must be continuous for ten (10) years unless prior service is reinstated at the time of his/her rehire in accordance with the City’s Personnel Rules. 655 E. Disability Retirees - Industrial disability retirees with less than ten (10) continuous years of service shall receive a maximum monthly payment toward the premium for health insurance of one hundred twenty one dollars ($121.00). Payments shall be in accordance with the stipulations and conditions that exist for all retirees. Payment shall not exceed the dollar amount that is equal to the full cost of premium for employee only. F. Marital Status – Married unit retirees eligible for benefits under the Retiree Medical Subsidy Plan may each receive the benefit earned pursuant to Section G – Maximum Monthly Subsidy Payments, whether enrolled individually as the plan enrollee or whether enrolled as a dependent on any City-sponsored medical plan. 1. In the case where a retired unit member is married to a City employee (active or retired) outside of this bargaining unit, this provision shall remain applicable. 2. This provision shall apply to State of California registered domestic partners the same as married spouses. 3. Upon City Council approval of this agreement, this provision shall become effective the first day of the month following MEA open enrollment for Medical plans. G. Maximum Monthly Subsidy Payments - All retirees, including those retired as a result of disability whose number of continuous years of service on the date of retirement exceeds ten (10), shall be entitled to a maximum monthly payment of premiums by the City for each year of completed City service as follows: Maximum Monthly Payment For Retirements After: Years of Service Subsidy 10 $ 121 11 136 12 151 13 166 14 181 15 196 16 211 17 226 18 241 19 256 20 271 21 286 22 300 23 315 24 330 25 344 Note: The above payment amounts may be reduced each month as dependent eligibility ceases due to death, divorce or loss of dependent child status. However, the amount shall not be reduced 656 if such reduction would cause insufficient funds needed to pay the full premium for the employee and the remaining dependents. In the event no reduction occurs and the remaining benefit premium is not sufficient to pay the premium amount for the employee and the eligible dependents, said needed excess premium amount shall be paid by the employee. H. Medicare: 1. All persons are eligible for Medicare coverage at age sixty-five (65). Those with sufficient credit quarters of Social Security will receive Part A of Medicare at no cost. Those without sufficient credited quarters are still eligible for Medicare at age sixty five (65), but will have to pay for Part A of Medicare if the individual elects to take Medicare. In all cases, Part B of Medicare is paid for by the participant. 2. When a retiree and his/her spouse are both sixty-five (65) or over, and neither is eligible for paid Part A of Medicare, the subsidy shall pay for Part A for each of them or the maximum subsidy, whichever is less. 3. When a retiree at age sixty-five (65) is eligible for paid Part A of Medicare and his/her spouse is not eligible for paid Part A, the spouse shall not receive subsidy. When a retiree at age sixty-five (65) is not eligible for paid Part A of Medicare and his/her spouse who is also age sixty-five (65) is eligible for paid Part A of Medicare, the subsidy shall be for the retiree’s Part A only. I. Cancellation: 1. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply: 1. Coverage for a retiree under the Retiree Medical Subsidy Plan will be eliminated on the first day of the month in which the retiree reaches age sixty-five (65). If such retiree was covering dependents under the Plan, dependents will be eligible for COBRA continuation benefits effective as of the retiree’s sixty-fifth (65th) birthday. 2. Dependent coverage will be eliminated upon whichever of the following occasions comes first: i. After thirty six (36) months of COBRA continuation coverage, or ii. When the covered dependent reaches age sixty-five (65) and in the event such dependent reaches age sixty-five (65) prior to the retiree reaching age sixty-five (65). 3. At age sixty-five (65) retirees are eligible to make application for Medicare. Upon being considered “eligible to make application,” whether or not application has been made for Medicare, the Retiree Medical Subsidy Plan will be eliminated. 657 2. Retiree Medical Subsidy Plan and COBRA participants shall be notified of non-payment of premium by means of a certified letter from Human Resources in accordance with the provisions of this Memorandum of Understanding. 3. A retiree who fails to pay premiums due for coverage and is in arrears for sixty (60) days shall be terminated from the Plan and shall not have reinstatement rights. 658 9/80 WORK SCHEDULE This work schedule is known as the “9/80.” The 9/80 work schedule is designed to be in compliance with the requirements of the Fair Labor Standards Act (FLSA). In the event that there is a conflict with the current rules, practices and/or procedures regarding work schedules and leave plans, then the rules listed below shall govern. 9/80 Work Schedule Defined The 9/80 work schedule shall be defined as working nine (9) days for eighty (80) hours in a two (2) week pay period by working eight (8) days at nine (9) hours per day and working one (1) day for eight (8) hours, with a scheduled unpaid lunch break during each work shift, totaling forty (40) hours in each FLSA workweek. The 9/80 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. A. The FLSA workweek for each employee on a 9/80 schedule shall begin and end four (4) hours into that employee’s regularly scheduled shift on the day of the week that the employee alternatively works an eight (8) hour shift and takes off. For example, employees on a 9/80 schedule who are assigned to the Civic Center shall have an FLSA workweek that starts and ends four (4) hours into the employee’s regularly scheduled shift each Friday, as these employees may only have 9/80 schedules that provide for alternating Fridays off with working eight (8) hour days on Fridays. Employees may only take their lunch break on their eight (8) hour day after first having worked four (4) hours in that shift, unless the employee receives prior approval of their Supervisor, as overtime may occur in such situations. B. Two (2) Week Pay Period – The pay period for employees starts Friday mid-shift (P.M.) and continues for fourteen (14) days until Friday mid-shift (A.M.). During this period, each week is made up of four (4) nine (9) hour workdays totaling (thirty-six (36) hours) and one (1) four (4) hour Friday and those hours equal forty (40) work hours in each workweek (e.g. the Friday is split into four (4) hours for the A.M. shift, which is charged to workweek one and four (4) hours for the P.M. shift, which is charged to workweek two). C. A/B Schedules – To continue to provide service to the public every Friday, employees on a 9/80 schedule assigned to the Civic Center, are to be divided between two schedules, known as the “A” schedule and the “B” schedule, based upon the departmental needs. For identification purposes, the “A” schedule shall be known as the schedule with a day off on the Friday in the middle of the pay period, or, “off on payday”, the “B” schedule shall have the first Friday (P.M.) and the last Friday (A.M.) off, or “working on payday.” An example is listed below: AM PM AM PM AM PM F F S S M T W Th F F S S M T W Th F F A Schedule 4 4 - - 9 9 9 9 - - - - 9 9 9 9 4 4 B Schedule - - - - 9 9 9 9 4 4 - - 9 9 9 9 - - D. Schedule Changes – FLSA non-exempt employees cannot change their assigned schedules, without prior approval of their Supervisor, Department Head, and the Human 659 Resources Director or designee. The purpose of this authorization is to review the impact on overtime. FLSA exempt employees may change their schedules at the beginning of any pay period with Supervisor and Department Head approval. E. Emergencies – All employees on the 9/80 work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions which, in the opinion of the City Manager, Department Head or designee may require such service from any of said employees. Overtime Defined FLSA Non-Exempt Employees – All non-exempt employees under the 9/80 work schedule shall earn overtime for all hours worked after the first forty (40) hours in their designated FLSA workweek as required under FLSA. Employees are required to obtain Supervisor authorization prior to working any overtime. 1. Overtime Compensation – As stated in Article IX.B. 2. Compensatory Time – As stated in Article IX.B. Leave Benefits When an employee is off on a scheduled workday under the 9/80 work schedule, then nine (9) hours of eligible leave per workday shall be charged against the employee’s leave balance or eight (8) hours shall be charged if the day off is a Friday. All leaves shall continue under the current accrual, eligibility, request and approval requirements. 1. General Leave – As stated in Article XII.A.1. 2. Sick Leave – As stated in Article XII.A.3. 3. Bereavement Leave – As stated in Article XII.A.4. 4. Holidays a. If a holiday falls on an FLSA non-exempt employee’s flex day off, the employee must then take the work shift before or after the holiday off with their Supervisor and Department Head approval. If the employee cannot take the work shift before or after the holiday off, the employee will be credited General Leave with the number of hours of the employee’s regularly scheduled work shift. b. If a holiday falls on an FLSA exempt employee’s flex day off, the employee must then take the work shift before or after the holiday off with Supervisor and Department Head approval. FLSA exempt employees shall not be granted any Administrative/General Leave or any added compensation for not taking a work shift off on a scheduled holiday. 5. Jury Duty - The provisions of the Personnel Rules shall continue to apply, however, if an FLSA exempt employee is called to serve on jury duty during a the employee’s flex day off, Saturday or Sunday or on a City holiday, then the jury duty shall be considered the same as having occurred during the employee’s day off from work; therefore, the employee will receive no added compensation. 660 4/10 WORK SCHEDULE This work schedule is known as the “4/10” work schedule. The 4/10 work schedule is designed to be in compliance with the requirements of the Fair Labor Standards Act (FLSA). In the event that there is a conflict with the current rules, practices and/or procedures regarding work schedules and leave plans, then the rules listed below shall govern. 4/10 Work Schedule Defined The 4/10 work schedule shall be defined as working four (4) days for forty (40) hours in an FLSA workweek by working four (4) days at ten (10) hours per day, plus a minimum of thirty (30) minutes unpaid lunch during each work shift. The FLSA workweek shall be defined as Saturday 12:00:00 A.M. to Friday 11:59:59 P.M. The 4/10 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. All employees on the 4/10 work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions which, in the opinion of the City Manager, Department Head or designee may require such service from any of said employees. Overtime Defined FLSA Non-Exempt Employees – All non-exempt employees under the 4/10 work schedule shall earn overtime for all hours worked after the first forty (40) hours in an FLSA workweek as required under FLSA. Employees are required to obtain Supervisor authorization prior to working any overtime. 1. Overtime Compensation – As stated in Article IX.B. 2. Compensatory Time – As stated in - Article IX.B. Leave Benefits When an employee is off on a scheduled workday under the 4/10 work schedule, then ten (10) hours of eligible leave per workday shall be charged against the employee’s leave balance. All leaves shall continue under the current accrual, eligibility, request and approval requirements. 1. General Leave – As stated in - Article XII.A.1. 2. Sick Leave – As stated in Article XII.A.3. 3. Bereavement Leave – As stated in - Article XII.A.4. 4. Holidays a. If a holiday falls on an FLSA non-exempt employee’s Friday off, the employee must then take the work shift before or after the holiday off with Supervisor and Department Head approval. If the employee cannot take the work shift before or after the holiday off, the employee will be credited with General Leave the number of hours of the employee’s regularly scheduled work shift. 661 b. If a holiday falls on an FLSA exempt employee’s Friday off, the employee must then take the work shift before or after the holiday off with Supervisor and Department Head approval. FLSA exempt employees shall not be granted any Administrative/General Leave or any added compensation for not taking a work shift off on a scheduled holiday. 5. Jury Duty - The provisions of the Personnel Rules shall continue to apply, however, if an FLSA exempt employee is called to serve on jury duty during a normal Friday off, Saturday or Sunday or on a City holiday, then the jury duty shall be considered the same as having occurred during the employee’s day off from work; therefore, the employee will receive no added compensation. 662 AGENCY SHOP AGREEMENT Legislative Authority The City of Huntington Beach (City) and the Huntington Beach Municipal Employees Association (Association) mutually understand and agree that in accordance with State of California law, per adoption of SB 739 (specifically, Government Code Section 3502.5), and SB 866 (Government Code Section(s) 3550, 3551, 3552, 3553, 3555.5 and 3556) the Association will be covered by an Agency Shop. As a result of this Agency Shop Agreement between the City and the Association, and as a condition of continued employment, this Agency Shop Agreement hereby requires that all bargaining unit employees represented by the Association: 1. Make the voluntary election to join the Association and pay Association Dues; 2. Or opt-out of Association membership 2. Pay an Agency Fee for representation; 3. Or with a Religious exemption, pay a fee equal to the Agency Fee to be donated to selected charities. The following Agency Shop Agreement will be implemented in conformity with California Government Code Section 3502.5 and applicable law (SB 866) and will be incorporated into any successor Memorandum of Understanding entered into between City and Association, unless rescinded pursuant to the terms of this Agreement. Association Dues/Agency Fee Collection Effective July 31, 2004, Tthe City shall deduct Association Dues, Agency Fee and Religious Exemption Fees from all employees who have signed a written authorization, and a copy of that authorization has been provided to the Human Resources Director at least three weeks before that date. The authorization shall indicate whether the Association Dues, Agency Fee or Religious Exemption Fees shall to be deducted and shall be jointly developed by the City and the Association. Employees who do not sign the written authorization, or whose written authorization is not provided to the Human Resources Director at least three weeks before the beginning of the pay period when deductions under this Agency Shop Agreement are to begin, shall be subject deemed to opt-out of Association membershipthe Agency Fee deduction. Employees on leave without pay or employees who earn a salary less than the Association deduction shall not have Association Dues, Agency Fee, or Religious Exemption Fees deducted for that pay period. The Agency Fee is a fee equal to direct representation costs as determined by the Association’s certified financial report. The Association shall notify the Human Resources Director of the amount of the Association Dues and the Agency Fee to be deducted from the unit members’ paychecks. three weeks prior to the date of the first deduction and then once per year thereafter by September 1st, for implementation in the first full pay period beginning in October of each year. New Hire Notification Effective July 31, 2004, aAll new hires in the bargaining unit shall be informed by the Human Resources Director or designee, at the time of hire, that an Agency Shop Agreement is in effect for their classification, by providing a copy of this Agreement, the Memorandum of Understanding and a form, mutually developed between the City and the Association that outlines the employee’s choices under the Agency Shop Agreement. The employee shall be provided thirty (30) calendar days from the date of hire to elect their choice and provide a signed copy of that choice to the Human Resources Director. Deductions under this Agency Shop Agreement for new hires will 663 start with the first full payroll period beginning thirty (30) days after the new hire submits his/her selection to the Human Resources Director. The Association may request to meet with new hires at a time and place mutually agreed upon between the City and the Association. Failure To Pay Dues/Fees All unit employees who choose not to become members of the Association or resign from Association membership shall be required to pay to the Association a representation service fee (the Agency Fee referenced in this Agency Shop Agreement) that represents such employee's proportionate share of the Association’s cost of legally authorized representation services on behalf of unit employees in their relations with the City. Such Agency Fee shall in no event exceed the regular, periodic membership dues paid by unit employees who are members of the Association. Unit employees who change their status (from Association member to Agency Fee payer or to Religious exemption, or vice-versa) after the effective date of this Agency Shop Agreement shall be subject to the terms of the changed status with the first full pay period beginning thirty (30) days or more after the employee informs the Human Resources Director of the change in writing on a form to be jointly developed by the City and the Association. Religious Exemption Any employee who is a member of a religious body whose traditional tenets or teachings include objections to joining or financially supporting employee organizations shall not be required to pay an Agency Fee, but shall pay by means of mandatory payroll deduction an amount equal to the Agency Fee to a non-religious, non-labor charitable organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code. Those fees shall be remitted by the Association to any of the non-labor, non-religious charitable organizations offered by the Association for this purpose, at the choice of the employee. To qualify for the Religious exemption the employee must provide to the Association a written statement of objection, along with verifiable evidence of membership in a religious body as described above. The City will implement the change in status, with the first full pay period beginning thirty (30) days or more after the employee submits the appropriate form to the City to change his/her status, unless notified by the Association in writing that the requested exemption is not valid. The City shall not be made a party to any dispute arising relative to the determination of Religious exemptions. Records The Association shall keep an adequate itemized record of its financial transactions and shall make a written financial report thereof, in the form of a balance sheet certified as to accuracy by its president and treasurer or corresponding principal officer, or by a certified public accountant, available annually, to the City, to Agency Fee payers and to unit members who elect the Religious exemption relating to this Agency Shop Agreement, within 60 days following the end of its fiscal year. All forms submitted by an employee to the City, or by the Association on behalf of an employee, shall be retained by the City in the employee’s personnel file. The Human Resources Director or designee shall provide the Association a list of all unit members with dues paying status with each Association Dues check remitted to the Association. This list and the Association Dues shall be submitted by the City to the Association within three weeks of each pay period. 664 Rescission Of Agreement The Agency Shop Agreement may be rescinded at any time during the period of time that the Association remains the exclusive bargaining agent for the unit employees by a majority vote of all the employees in the bargaining unit. A request for such vote must be supported by a petition containing the signatures of at least thirty percent (30%) of the employees in the unit. The election shall be by secret ballot and conducted by California State Mediation and Conciliation and in accordance with state law. INDEMNIFICATION The Association shall indemnify, defend and hold the City harmless from and against all claims and liabilities as a result of implementing and maintaining this Agency Shop Agreement. The City and the Association recognize the right of the employees to form, join and participate in lawful activities of employee organizations and the equal alternative right of employees to refuse to join or participate in employee organization activities. During the life of this Agreement all unit members who choose to become members of the Association shall be required to maintain their membership in the Association in good standing, subject however, to the right to resign from membership no sooner than April 15 or later than May 15, of any year this Agreement remains in effect. Any unit member may exercise the right to resign by submitting a written notice to the Association and to the City during the resignation period on the Deduction Authorization/Change in Status form. The change in deductions from the employee’s payroll will be effective with the first full pay period beginning thirty (30) days or more after the Human Resources Director receives the employee’s written notice. The City and the Association agree that neither shall discriminate nor retaliate against any employee for the employee’s participation or non-participation in any Association activity. Payroll Deduction Effective July 31, 2004, tThe City will deduct from each paycheck of unit employees, and remit to the Association, the normal and regular Association Dues and Agency Fees, in the timelines described as voluntarily authorized in writing by the employee, subject to the following conditions: 1. Such deductions shall be made only upon submission of a Deduction Authorization/Change in Status form to the Human Resources Director. Said form shall be duly completed and signed by the employee. If no form is completed by the employee, the employee shall be considered to have elected to opt-out subject to the Agency Fee. 2. The City shall not be obligated to put into effect any new, changed or discontinued deduction until the first full pay period commencing thirty (30) days or longer after such submission. Every effort will be made by the City to remit dues to the Association within three (3) weeks of receipt. The Association agrees to indemnify and hold the City harmless against any and all suits, claims, demands and liabilities that may arise out of, or by reason of, any action that shall be taken by the City for the purpose of complying with this Section. 665 Guidelines 1. Purpose The purpose of the voluntary catastrophic leave donation program is to bridge employees who have been approved leave time to either; return to work, long-term disability, or medical retirement. Permanent employees who accrue vacation, general leave or compensatory time may donate such leave to another permanent employee when a catastrophic illness or injury befalls that employee or because the employee is needed to care for a seriously ill family member. The leave-sharing Leave Donation Program is Citywide across all departments and is intended to provide an additional benefit. Nothing in this program is intended to change current policy and practice for use and/or accrual of vacation, general, or sick leave. 2. Definitions Catastrophic Illness or Injury - A serious debilitating illness or injury, which incapacitates the employee or an employee's family member. Family Member - For the purposes of this policy, the definition of family member is that defined in the Family Medical Leave Act (child, parent, spouse or domestic partner). 3. Eligible Leave Accrued compensatory time off, vacation or general leave hours may be donated. The minimum donation an employee may make is two (2) hours and the maximum is forty (40) hours. 4. Eligibility Permanent employees who accrue vacation or general leave may donate such hours to eligible recipients. Compensatory time off accrued may also be donated. An eligible recipient is an employee who:  Accrues vacation or general leave;  Is not receiving disability benefits or Workers' Compensation payments; and  Requests donated leave. 5. Transfer of Leave The maximum donation credited to a recipient's leave account shall be the amount necessary to ensure continuation of the employee's regular salary during the employee's period of approved catastrophic leave. Donations will be voluntary, confidential and irrevocable. Hours donated will be converted into a dollar amount based on the hourly wage of the donor. The dollar amount will then be converted into accrued hours based on the recipient’s hourly wage. An employee needing leave will complete a Leave Donation Request Form and submit it to the Department Director for approval. The Department Director will forward the form to Human Resources for processing. Human Resources, working with the department, will send out the request for leave donations. 666 Employees wanting to make donations will submit a Leave Donation Form to the Finance Department (payroll). All donation forms submitted to payroll will be date stamped and used in order received for each bi-weekly pay period. Multiple donations will be rotated in order to insure even use of time from donors. Any donation form submitted that is not needed will be returned to the donor. 667 Please return this form to the Human Resources Office for processing Voluntary Catastrophic Leave Donation Program Leave Request Form Requestor, Please Complete According to the provisions of the Voluntary Catastrophic Leave Donation Program, I hereby request donated Vacation, Administrative Leave, General Leave or Exempt Compensatory Time. MY SIGNATURE CERTIFIES THAT:  A Leave of absence in relation to a catastrophic illness or injury has been approved by my Department; and  I am not receiving disability benefits or Workers' Compensation payments. Name: (Please Print or Type: Last, First, MI) Work Phone: Department: Job Title: Employee ID#: Requester Signature: Date: Department Director Signature of Support: Date: Human Resources Department Use Only End donation date will bridge to: Long Term Disability Medical Retirement beginning Length of FMLA leave ending Return to work End donation date: Human Resources Director Signature: Date signed: 668 Voluntary Catastrophic Leave Donation Program Leave Donation Form Donor, please complete Donor Name: (Please Print or Type: Last, First, MI) Work Phone: Donor Job Title: Type of Accrued Leave: Vacation Compensatory Time General Leave Administrative Leave Number of Hours I wish to Donate: Hours of Vacation Hours of Exempt Compensatory Time Hours of General Leave Hours of Administrative Leave I understand that this voluntary donation of leave credits, once processed, is irrevocable; but if not needed, the donation will be returned to me. I also understand that this donation will remain confidential. I wish to donate my accrued Vacation, Exempt Compensatory Time Administrative Leave or General Leave hours to the Catastrophic Leave Donation Program for: Eligible recipient employee's name (Last, First, MI): Donor Signature: Date: Please submit to Payroll in the Finance Department. 669  The Teamsters Miscellaneous Security Trust Fund contracts with the City of Huntington Beach to provide medical benefit plan options.  Coverage for MEA employees shall begin the first of the month following employment. The City of Huntington Beach shall remit one (1) payment of three (3) months of medical premiums for new enrollees. 670 671 672 673 City of Huntington Beach File #:18-431 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Michele Warren, Director of Human Resources Subject: Approve Tentative Agreement and introduction of proposed Memorandum of Understanding (MOU) between the Huntington Beach Firefighters’ Association (HBFA) and the City of Huntington Beach for July 1, 2018 through June 30, 2021 Statement of Issue: The City and the Huntington Beach Firefighters’ Association (HBFA) have tentatively agreed to enter into a new Memorandum of Understanding (MOU) for the period July 1, 2018 through June 30, 2021 . Financial Impact: Funding for the implementation of the fiscal items contained in the proposed Memorandum of Understanding will come from the General Fund. The net fiscal impact over the term of the agreement is estimated by Finance to be $55,107. Funds for FY 2018/19 have been included in the approved budget. No additional appropriation is required. Recommended Action: Approve the Tentative Agreement and the introduction of the proposed Memorandum of Understanding Between the Huntington Beach Firefighters’ Association and the City of Huntington Beach for the period July 1, 2018 through June 30, 2021. Alternative Action(s): Do not approve the tentative agreement and the introduction of the proposed successor MOU for HBFA employees and direct staff to continue to meet and confer with the Association or utilize the impasse procedures contained within the City’s Employer-Employee Relations Resolution. Analysis: The prior HBFA MOU expired June 30, 2018. Representatives for the City and HBFA have been involved in active labor negotiations and have successfully completed the meet and confer process with a tentative agreement on a proposed Memorandum of Understanding (MOU) for the period of July 1, 2018 through June 30, 2021. City of Huntington Beach Printed on 10/10/2018Page 1 of 3 powered by Legistar™674 File #:18-431 MEETING DATE:10/15/2018 Highlights from the listing of tentatively agreed upon contract changes include the following: Term of Agreement July 1, 2018 through June 30, 2021 Retirement HBFA members will make additional contributions towards CalPERS retirement. “Classic” members will contribute an additional three percent (3%) above the required nine percent (9%) contribution for a total of twelve percent (12%) employee contribution. “New” members will contribute an additional one percent (1%) above the required eleven percent (11%) contribution for a total of twelve percent (12%) employee contribution. The “New” member contribution percentage is subject to change/increase due to legislative mandate requiring the contribution to equal 50% of the normal retirement cost. Work Schedules The City and the Association agree to a trial period of a 48/96 work schedule. Minimum Staffing The City and the Association agree to the elimination of the 40 employee constant manning requirement per work shift and agree to maintain 16 paramedics per work shift. Medical Benefits The City’s monthly contribution towards HBFA medical plan premiums will increase as follows upon City Council final approval: ·Single $100 ·Two Party $100 ·Family $100 ·Opt-Out $100 The City’s monthly contribution towards HBFA medical plan premiums will increase $100 per month, effective July 1, 2019, and July 1, 2020. City contributions to dental and vision benefits will not increase during the term of the agreement. There were other appropriate modifications to a variety other provisions including, but not limited to, modification to operational policy subject to meeting and confer, C-2 (Uniforms), D-3 (Callback Staffing System), D-9 (Physical Fitness), and D-10 (Promotional and Open Competitive Examinations), the deletion of obsolete language, the inclusion of regulatory (IRS) compliance language changes regarding constructive receipt of vacation and compensatory time and, general clean-up language. A summary of these and all other negotiated provisions are included as Exhibit “A”. City of Huntington Beach Printed on 10/10/2018Page 2 of 3 powered by Legistar™675 File #:18-431 MEETING DATE:10/15/2018 Environmental Status: N/A Strategic Plan Goal: Strengthen economic and financial sustainability Attachment(s): 1. Tentative Agreement 2. Fiscal Impact Report 3. Proposed Memorandum of Understanding - Exhibit “A” 4. PowerPoint Presentation - HBFA City of Huntington Beach Printed on 10/10/2018Page 3 of 3 powered by Legistar™676 Tentative Agreement Between The City of Huntington and the Huntington Beach Firefighters’ Association October 4, 2018 Article # Subject Proposal VI, VII, XII Policies During the term of the MOU, either side may seek to bargain over the following policies and It does not require a mutual agreement: C-2 (Uniforms); D-9 (Physical Fitness); and D-10 (Promotional and Open Competitive Examinations). VII A Work Schedules Effective January 3, 2019, employees shall work the 48/96 work schedule. The parties agree that the 48/96 work schedule will be in effect for a trial period of exactly 360 days (fifteen (15) twenty-four (24) day work periods) at which time it will sunset unless the parties both agree to continue it. In the 90 day period prior to the expiration of the trial period, the parties shall inform each other if they want the 48/96 work schedule to end or continue. If both parties agree that it should continue (and therefore become the work schedule in effect for 24-hour shift employees) it shall continue unless and until it is changed in the future through labor negotiations. If either party wishes the 48/96 work schedule to end at the end of the trial period, it shall end. However, the parties agree to meet and discuss their respective positions prior to terminating the schedule to try to resolve any issues causing the desire to terminate the schedule. VII D2b1 Cash out of comp time The parties agree to address constructive receipt by providing for an irrevocable election related to the cash out of comp time. VII H1a Minimum Staffing The parties agree to eliminate the provision that there will be at all times, a minimum number of Firefighters, Firefighter/Paramedics, Fire Engineers and Fire Captains. The parties also agree that minimum staffing in the Fire Department is set forth in Policy D-14 which is attached to the MOU as Appendix G. The parties also agree to modify their MOU to provide that If the Fire Chief determines the need to convert a Truck 677 Company to a PAU or Paramedic Truck Company, the overall number of on-duty paramedics shall be no less than 16. VIII B2 City Contribution to Health Insurance Effective at the beginning of the pay period following City Council final approval of the MOU, the City will provide an increase of $100 per employee per month for the purchase of health insurance. Effective on the first day of the pay period which includes July 1, 2019, The City will provide another increase of $100 per employee per month for the purchase of health insurance. Effective on the first day of the pay period which includes July 1, 2020, the City will provide another increase of $100.00 per employee per month. The increases for health insurance will also be provided to the amounts provided for those who opt out of health insurance. IX A1b Retirement Effective the beginning of the pay period following City Council approval of the MOU, all classic members shall pay three percent (3%) additional compensation earnable as employer cost sharing in accordance with Government Code section 20516(f) – for an employee pension contribution of twelve percent (12%). The parties agree that this cost sharing agreement per Government Code section 20516(f) shall continue after the expiration of this MOU unless/until otherwise negotiated to either an agreement (in a successor MOU) or the expiration of the impasse process by the parties. Effective the beginning of the pay period following City Council approval of this MOU, all new members shall, pay at least twelve percent (12%) of pensionable compensation as their retirement contribution. If the required contribution per PEPRA (half the normal cost) is less than twelve percent (12%), employees shall pay the difference between the required PEPRA contribution and twelve percent (12%) as cost sharing per Government Code section 20516(f). If the required PEPRA contribution is at least twelve percent (12%) or more, new members will pay the required PEPRA contribution. X A1c Conversion of Vacation to Cash The parties agree to address constructive receipt by providing for an irrevocable election related to the cash out 678 of vacation. XIV Term of MOU July 1, 2018 – June 30, 2021. Additional MOU clean-up language is agreed to and set forth in the track changed MOU to which the parties have agreed and will sign following Council approval of the MOU. CITY OF HUNTINGTON BEACH A Municipal Corporation HUNTINGTON BEACH FIREFIGHTERS’ ASSOCIATION By: By: Fred A. Wilson City Manager Chad Stewart HBFA President By: By: Peter Brown Chief Negotiator Stuart D. Adams Chief Negotiator 679 City of Huntington Beach DRAFTHBFA Tentative AgreementDated October 4, 2018Item #Description$ / % RateEstimated ImpactNotesTerm of MOU: July 1, 2018 to June 30, 20211 Additional CalPERS pick up for Classic Members3% (386,880)         As of the June 8, 2018 payroll2 Additional CalPERS pick up for PEPRA Members1% (26,863)$          As of the June 8, 2018 payroll3 48/96 Work Schedule Trial Period33,250$            Effective January 3, 2019, sunsets after 360 days; estimated impact essentially adds 3.5 hours of overtime annually.  Does not account for potential increase in backfill overtime due to increased use of leave.4.a Increase Medical Insurance Contribution100$          145,200$          Effective on the first day of the pay period following City Council approval4.b Increase Medical Insurance Contribution100$          145,200$          Effective July 1, 20194.c. Increase Medical Insurance Contribution100$          145,200$          Effective July 1, 20205 Minimum Staffing:  Eliminate the provision that there will be at all times, a minimum number of Firefighters, Firefighter/Paramedics, Fire Engineers and Fire Captains; Modify MOU language regarding minimum of 16 paramedics  per day per shift.TOTAL BUDGET IMPACT55,107$            These estimates are subject to change and represent Management's best estimate and analysis of the fiscal impact and costs of the above proposal, given the information that is available at this time.These estimates are subject to change.For Discussion Purposes Only680 Tentative Agreement Memorandum of Understanding Between The Huntington Beach Firefighters’ Association And The City of Huntington Beach July 1, 20187 through June 30, 202118 681 ARTICLE I - REPRESENTATIONAL UNIT/CLASSIFICATIONS ..................................................................................... 1 ARTICLE II – EXISTING CONDITIONS OF EMPLOYMENT ........................................................................................... 1 ARTICLE III - SEVERABILITY ............................................................................................................................................... 2 ARTICLE IV – SALARY SCHEDULES ................................................................................................................................... 2 ARTICLE V – SPECIAL PAY .................................................................................................................................................... 2 A. EDUCATION...................................................................................................................................................... 2 1. Incentive Plan ................................................................................................................................................................... 2 a. Level I ..................................................................................................................................................................... 2 b. Level II ................................................................................................................................................................... 2 c. Maximum Education Incentive Pay......................................................................................................................... 2 d. Degree Majors ........................................................................................................................................................ 2 e. Education Committee ............................................................................................................................................. 3 f. Effective Date ......................................................................................................................................................... 3 B. ACTING ASSIGNMENTS .................................................................................................................................... 3 C. ADMINISTRATIVE APPOINTMENTS .................................................................................................................. 3 1. Administrative Appointments .......................................................................................................................................... 3 2. Pay Upon Completion of Administrative Appointment ................................................................................................... 3 D. PAY UPON COMPLETION OF PARAMEDIC DUTIES ........................................................................................... 4 E. SPECIAL CERTIFICATION/SPECIAL ASSIGNMENT SKILL PAY .......................................................................... 4 1. Special Certification Pay .................................................................................................................................................. 4 a. Chief Officer Certification ...................................................................................................................................... 4 b. Fire Officer Certification ........................................................................................................................................ 4 c. Chief Fire Officer Courses/Classes ......................................................................................................................... 4 d. Company Officer Courses/Classes ......................................................................................................................... 5 2. State Board of Fire Service Certification ......................................................................................................................... 5 3. Paramedic Re-certification ............................................................................................................................................... 5 4. Preceptors ......................................................................................................................................................................... 6 5. Firefighter Tiller Certification .......................................................................................................................................... 6 a. Tiller Certification .................................................................................................................................................. 6 b. Class A,B, C Driver License ................................................................................................................................... 6 c. Light Air Unit ......................................................................................................................................................... 6 6. Bilingual Skill Pay ........................................................................................................................................................... 6 7. Investigator ....................................................................................................................................................................... 7 8. Urban Search and Rescue (USAR) Team Assignment Pay ............................................................................................. 8 9. Hazardous Materials (Hazmat) Team Assignment Pay .................................................................................................... 8 10. Rank Paramedic Assignment Pay..................................................................................................................................... 8 11. Special Certification Pay .................................................................................................................................................. 8 F. HOLIDAY PAY-IN-LIEU .................................................................................................................................... 9 G. LONGEVITY PAY ............................................................................................................................................ 10 H. EMERGENCY MEDICAL TECHNICIAN PAY………………………………………………………………….. 10 I. REPORTING TO CALPERS………………………………………………………………….. ........................ 10 ARTICLE VI – UNIFORMS, CLOTHING, TOOLS AND EQUIPMENT .......................................................................... 10 A. UNIFORMS PROVIDED BY CITY ...................................................................................................................... 10 B. UNIFORM ALLOWANCE/FITNESS ................................................................................................................... 10 C. UNIFORM CARE AND REPLACEMENT............................................................................................................. 11 D. UNIFORM POLICIES AND ADVISORY COMMITTEE ......................................................................................... 11 E. REPORTABLE TO PERS .................................................................................................................................. 11 ARTICLE VII – HOURS OF WORK/OVERTIME ............................................................................................................... 12 A. WORK SCHEDULE .......................................................................................................................................... 12 B. HOURS OF WORK - DEFINED .......................................................................................................................... 12 C. LEVEL PAY PLAN ........................................................................................................................................... 13 682 1. Twenty-four (24) Hour Shift Personnel ......................................................................................................................... 13 3. Lost Time Defined ......................................................................................................................................................... 13 4. Forty (40) Hour Work Week .......................................................................................................................................... 13 5. 4/10 Work Schedule Defined ......................................................................................................................................... 13 D. OVERTIME/COMPENSATORY TIME ................................................................................................................ 14 1. Paid Overtime ................................................................................................................................................................ 14 2. Compensatory Time ....................................................................................................................................................... 14 a. Non-Exempt.......................................................................................................................................................... 15 b. Staff Personnel ...................................................................................................................................................... 15 c. Compensatory Time Paid Off ............................................................................................................................... 16 3. Callback ......................................................................................................................................................................... 16 4. Mandatory Standby ........................................................................................................................................................ 16 5. Electronic Communication Devices ............................................................................................................................... 16 6. Required Training Attendance ....................................................................................................................................... 16 7. Cancellation of Overtime ............................................................................................................................................... 17 8. Court Time ..................................................................................................................................................................... 17 9. Pay out of Rank .............................................................................................................................................................. 16 E. JURY DUTY .................................................................................................................................................... 16 F. SHIFT EXCHANGE/RELIEF .............................................................................................................................. 17 G. ASSIGNED SHIFT POLICY ............................................................................................................................... 17 H. MINIMUM STAFFING AND FILLING VACANCIES ............................................................................................ 17 1. Minimum Staffing Levels .............................................................................................................................................. 18 I. PROBATIONARY PERIOD ................................................................................................................................ 17 1. Lengthh of the Probationary Period ............................................................................................................................... 18 2. Extension of the Probationary Period ............................................................................................................................. 18 ARTICLE VIII – HEALTH AND OTHER INSURANCE BENEFITS ................................................................................ 19 A. HEALTH INSURANCE ...................................................................................................................................... 18 B. ELIGIBILITY CRITERIA AND COST ................................................................................................................. 19 1. City Paid Medical Insurance – Employee and Dependents ............................................................................................ 19 2. Employer Contribution to Health and Other Insurance Benefits .................................................................................... 18 C. PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT (PEMHCA) OPTION ......................................... 22 D. MEDICAL CASH-OUT ..................................................................................................................................... 22 E SECTION 125 PLAN ........................................................................................................................................ 22 F. LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT ............................................................................... 22 1. Life ................................................................................................................................................................................. 22 2. Accidental Death and Dismemberment .......................................................................................................................... 22 G. LONG TERM DISABILITY ................................................................................................................................ 22 H. RETIREE MEDICAL COVERAGE FOR RETIREES NOT ELIGIBLE FOR THE CITY MEDICAL RETIREE SUBSIDY PLAN ........... 22 I. POST-65 SUPPLEMENTAL MEDICARE COVERAGE ......................................................................................... 23 J. MISCELLANEOUS ........................................................................................................................................... 23 ARTICLE IX – RETIREMENT ............................................................................................................................................... 23 A. BENEFITS ................................................................................................................................................... 3633 1. Public Employees’ Retirement System ...................................................................................................................... 3633 h. Reporting of Base Salary ...................................................................................................................................... 24 2. Self-Funded Supplemental Retirement Benefit .......................................................................................................... 3835 3. Medical Insurance for Retirees....................................................................................................................................... 25 B. REINSTATEMENT PRIVILEGES FOR DISABILITY RETIREES ............................................................................ 26 ARTICLE X – LEAVE BENEFITS .......................................................................................................................................... 26 A. LEAVE WITH PAY ........................................................................................................................................... 26 1. Vacation ......................................................................................................................................................................... 26 a. Accrual ................................................................................................................................................................. 26 b. Eligibility and Permission ..................................................................................................................................... 27 c. Conversion to Cash ............................................................................................................................................... 27 683 d. Pay-Off at Termination ......................................................................................................................................... 28 2. Sick Leave ...................................................................................................................................................................... 28 a. Accrual ................................................................................................................................................................. 28 b. Pay-Off at Termination ......................................................................................................................................... 28 c. Utilization in Conjunction with Industrial Disability Leave ................................................................................. 28 3. Leave Benefit Entitlements ............................................................................................................................................ 28 4. Bereavement ................................................................................................................................................................... 29 5. Association Business ...................................................................................................................................................... 29 ARTICLE XI – CITY RULES .................................................................................................................................................. 29 A. PERSONNEL RULES ........................................................................................................................................ 29 B. PRECEDENCE OF AGREEMENT ....................................................................................................................... 29 C. DISCIPLINE ..................................................................................................................................................... 29 D. LAYOFF RULES .............................................................................................................................................. 29 ARTICLE XII - MISCELLANEOUS ....................................................................................................................................... 29 A. FIRE DEPARTMENT PROMOTIONAL EXAMS – POLICY D-10 ......................................................................... 29 B. LIVING QUARTERS ......................................................................................................................................... 29 C. PAYCHECKS ................................................................................................................................................... 30 1. Bi-Weekly Pay ............................................................................................................................................................... 30 2. Paycheck Stub ................................................................................................................................................................ 30 3. Direct Deposit ................................................................................................................................................................ 30 4. Vacation Payroll Advance .............................................................................................................................................. 30 D. CA DRIVER LICENSE FOR FIREFIGHTING EQUIPMENT .................................................................................. 30 E. DEFERRED COMPENSATION LOAN PROGRAM ............................................................................................... 31 ARTICLE XIII – MANAGEMENT RIGHTS ......................................................................................................................... 31 ARTICLE XIV – TERM OF MOU .......................................................................................................................................... 31 ARTICLE XV - CITY COUNCIL APPROVAL ..................................................................................................................... 32 ARTICLE XVI - SUCCESSOR NEGOTIATIONS ................................................................................................................ 32 EXHIBIT A – EMPLOYER-EMPLOYEE RELATIONS RESOLUTION .......................................................................... 33 EXHIBIT B - SALARY SCHEDULE ....................................................................................................................................... 34 EXHIBIT C – RETIREE SUBSIDY MEDICAL PLAN ......................................................................................................... 36 EXHIBIT D – TILLER CERTIFICATION ............................................................................................................................. 41 EXHIBIT E – INCOME PROTECTION PLAN ..................................................................................................................... 42 EXHIBIT F – 56-HOUR VACATION AND SICK LEAVE ACCRUAL – LEAVE BENEFITS (EXAMPLE) ................ 43 EXHIBIT G - POLICY D-14, MINIMUM STAFFING AND FILLING OF VACANCIES ............................................... 45 EXHIBIT H - FIREFIGHTERS' RIGHTS TO APPEAL DISCIPLINARY ACTION ……………………………………49 684 MEMORANDUM OF UNDERSTANDING Between THE CITY OF HUNTINGTON BEACH (Hereinafter called CITY) and THE HUNTINGTON BEACH FIREFIGHTERS’ ASSOCIATION (Hereinafter called ASSOCIATION or HBFA) July 1, 20187 through June 30, 202118 ARTICLE I - REPRESENTATIONAL UNIT/CLASSIFICATIONS A. It is recognized that the Huntington Beach Firefighters’ Association is the employee organization, which has the right to meet and confer in good faith with the City on behalf of employees of the City of Huntington Beach within the following classifications: Administrative Fire Captain* Firefighter Fire Captain Firefighter Paramedic Fire Engineer Administrative Fire Captain* *Administrative Appointment Administrative Fire Captain B. The City and Association have agreed to a procedure whereby the City, by and through the Human Resources Director, would be entitled to propose a Unit Modification. This agreement, Exhibit A, consists of a modification of the City of Huntington Beach Employer-Employee Relations Resolution (Resolution Number 3335). The City hereby agrees not to propose a unit modification of the existing Association unit. ARTICLE II – EXISTING CONDITIONS OF EMPLOYMENT A. Except as expressly provided herein, the existing wages, hours, and other terms and conditions of employment within the lawful scope of representation of the Association that are contained in prior Memoranda of Understanding between the parties hereto and which are currently applicable to employees covered herein, shall remain in full force and effect. B. When used in this Memorandum of Understanding (MOU), the word “staffing” shall have the same meaning as the word “manning” and are used interchangeably. 685 ARTICLE III - SEVERABILITY If any section, subsection, sentence, clause, phrase or portion of this MOU or any additions or amendments thereof, or the application thereof to any person, 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 MOU or its application to other persons. The City Council hereby declares that it would have adopted this MOU and each section, subsection, sentence, clause, phrase or portion, and any additions or amendments thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions, or the application thereof to any person, be declared invalid or unconstitutional. ARTICLE IV – SALARY SCHEDULES For each year of this MOU, the base salary of each classification represented by the Association shall be as set forth in the Salary Schedules, Exhibit B. All employees are required to utilize direct deposit of payroll checks. The City shall issue each employee direct deposit advice (payroll receipt) each pay period that details all income, withholdings, and deductions. ARTICLE V – SPECIAL PAY C.A. Education: 1. Incentive Plan – It is the purpose and intent of the City to provide an Education Incentive Plan to motivate the employee to participate in, and continue with his/her education so as to improve his/her knowledge and general proficiency which will, in turn, result in additional benefits to the Fire Department and to the City. As the levels of additional education listed below are satisfactorily completed and attained, the employee will receive additional monetary compensation in recognition of his/her educational achievement. a. Level I – Any employee who has attained an Associate Degree, or attained Junior status in a degree program, shall receive educational incentive pay of three percent (3%) of his/her base rate of pay. An employee may only receive this education incentive pay for one degree. b. Level II – Any employee who has attained a Bachelor’s Degree in Fire Administration, Public Administration, Public Policy or an equivalent degree as determined by the Education Committee and Fire Chief will receive education incentive pay of six percent (6%) of his/her base rate of pay. An employee may only receive this education incentive pay for one degree. c. Maximum Education Incentive Pay - The maximum education incentive pay an employee may receive is six percent (6%) of his/her base rate of pay for a Bachelor’s Degree. . d. Degree Majors – Degree majors in an equivalent course of study other than Fire Science, Fire Administration, Public Administration or Public Policy shall be approved in advance by the Education Committee. 686 e. Education Committee – An Education Committee shall be established and composed of three (3) members. Of said three (3) members, one shall be appointed by the Association, one appointed by the Fire Chief, and the third shall be the Human Resources Director. f. Effective Date – Following certification by the Education Committee, the additional education incentive pay shall commence the beginning of the pay period following the employee’s submission of a completed application that qualifies for education incentive pay. The parties agree that to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(2) Educational Incentive Pay. D.B. Acting Assignments – Employees acting in a higher classification shall be qualified as defined within Department Policy. Employees shall be paid at the step in the classification in which they are acting which provides them with at least a 5% increase. The acting assignment shall end at the discretion of the City. The parties agree that to the extent permitted by law, Acting Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(3) Temporary Upgrade Pay. C. Administrative Appointments: 1. Administrative Appointments – The City may, from time to time, administratively appoint employees to administrative or specialist positions. Employees so appointed to the positions of Captain Paramedic, Engineer Paramedic, or Administrative Fire Captain, shall serve at the discretion of the Fire Chief and may be returned to their regular position at any time as determined by the Fire Chief. An administrative appointment shall not affect the employee’s regular classification or rank. Persons administratively appointed shall retain their highest previous permanent classification and the anniversary date of their appointment to the permanent classification. 2. Pay Upon Completion of Administrative Appointment: a. An employee administratively appointed to the positions of Captain Paramedic; Engineer Paramedic, or Administrative Fire Captain, who is subsequently voluntarily or involuntarily reassigned to a position within their permanent classification with a lower rate of pay, shall receive a two (2) step reduction in pay to initially coincide with their reduced assignment and at each anniversary date of the original reduction thereafter, until their rate of pay equals the rate of pay entitled as if they had not received the administrative appointment. b. An employee administratively appointed to the positions of Captain Paramedic, Engineer Paramedic, or Administrative Fire Captain who has completed four (4) years of service in the appointed or any other appointed parallel position, may request to return to their permanent classification, and shall within one (1) year thereafter, be entitled to return to his/her permanent classification. The pay rate changes associated 687 with the appointment or reappointment shall follow the process and procedures established for all positions within the classified service. c. This section shall not apply to demotions or layoffs. F.D. Pay Upon Completion of Paramedic Duties - Any Firefighter Paramedic with a minimum of five (5) years of continuous service as a Paramedic may request reinstatement to his/her previously held classification. Such request must be submitted in writing to the Fire Chief at least one (1) year prior to the date of the requested reinstatement. Upon reinstatement, if the employee’s current base salary is equivalent to or in excess of Step E of the respective Firefighter salary range, his/her salary will be set at Step E of the respective Firefighter salary range. If the employee’s Paramedic salary is less than Step E, his/her salary shall be set at a step in the range closest to his/her existing current base salary. This section shall not apply to demotions or layoffs. E. Special Certification/Special Assignment Skill Pay: 1. Special Certification Pay a. Chief Officer Certification – Employees in the classifications of Fire Captain and Administrative Fire Captain who are certified by the California State Board of Fire Services as a Chief Officer or who have completed the Chief Fire Officer courses and additional classes set forth in section c. below shall receive special certification pay of three percent (3%) of their base rate of pay. The parties agree that, to the extent permitted by law, this Chief Officer Certification pay is special compensation and shall be reported as such to PERS pursuant to Title 2 CCR Section 571(a)(2) as Recertification Bonus. b. Fire Officer Certification – Employees in the classifications of Firefighter, Firefighter Paramedic, and Fire Engineer who are certified by the California State Board of Fire Services as a Fire Officer or who have completed the Company Officer courses and additional classes set forth in section d. below shall receive special certification pay of three percent (3%) of their base rate of pay. The parties agree that, to the extent permitted by law, this Fire Officer Certification pay is special compensation and shall be reported as such to PERS pursuant to Title 2 CCR Section 571 (a)(2) as Recertification Bonus. c. Chief Fire Officer Courses/Classes: 1) Chief Fire Officer 3A: Human Resources Management 2) Chief Fire Officer 3B: General Administration Functions 3) Chief Fire Officer 3C: Budget and Fiscal Responsibilities 4) Chief Fire Officer 3D: Emergency Service Delivery Responsibilities Completion of additional courses 688 1) S234: Ignition Operations 2) S270: Basic Air Operations 3) AR330: Strike Team Leader 4) S404: Safety Officer 5) S290: Intermediate Wildland Behavior – Classroom based d. Company Officer Courses/Classes 1) Company Officer 2A: Human Resources Management 2) Company Officer 2B: General Administration Functions 3) Company Officer 2C: Fire Inspections and Investigations 4) Company Officer 2D: All-Risk Command Operations 5) Company Officer 2E: Wildland Incident Operations 6) Instructor I: Instructional Methodology, and Completion of additional courses 1) I300: Incident Command System 300 2) S230: Crew Boss 3) S231: Engine Boss 4) S290: Intermediate Wildland Behavior – Classroom BasedVersion 2. State Board of Fire Service Certification - Any employee in a position that did not require certification as a condition of employment, and who at any time has been or becomes certified by the State Board of Fire Services in a classification then occupied, shall be entitled, upon request, to a lump sum cash payment of two hundred fifty dollars ($250). Each employee may only receive one such payment irrespective of the number of times he/she is certified in any position. 3. Paramedic Re-certification - Each time a Firefighter Paramedic assigned as a Firefighter Paramedic is re-certified by the State of California as a Paramedic, the Firefighter Paramedic shall be entitled to a lump sum cash payment of five hundred dollars ($500). Each time a Fire Captain or Fire Engineer is re-certified by the State of California as a paramedic, the employee shall be entitled to a lump sum cash payment of five hundred dollars ($500). Eligible employees are Fire Engineers or Fire Captains who currently possess a State of California Paramedic License and/or are re-certified by the State of California as a Paramedic to practice as a Paramedic. Re-certification pay for Captains and Engineers shall be limited to thirty (30) positions. The City will allow Fire Engineers and Fire Captains who are certified by the State of California as a paramedic to maintain local (Orange County) accreditation and to practice as a paramedic based upon established department standards. The parties agree that to the extent permitted by law, Paramedic Recertification Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(2) Paramedic Pay. 689 4. Preceptors - Firefighter Paramedics who possess the qualifications necessary to be a preceptor and are assigned preceptor duties by the Fire Chief or his/her sworn designee shall be paid a special pay of 5.34% of the base hourly rate of Firefighter Step E for each hour worked. It is the intention to provide all eligible Firefighter Paramedics the same dollar value in this special pay. For employees who are appointed as a new Firefighter Paramedic, the preceptor partner (i.e., the employee receiving preceptor pay) shall receive preceptor pay until the end of the first probationary rotation. The Fire Chief or designee may request the preceptor duties and the associated preceptor pay be extended after the first rotation for a designated term. For an internally promoted Firefighter Paramedic, not more than two persons on each crew may receive preceptor pay. The parties agree that to the extent permitted by law, Preceptor Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(4) Training Premium. 5. Firefighter Tiller Certification - Firefighters who obtain and maintain the certifications and qualifications as outlined in (a) through (c) below shall receive a special pay of 1.78% of the bi-weekly base rate of Firefighter Step E. It is the intention to provide all eligible Firefighters the same dollar value in this special pay - Firefighter Step E. a. Tiller Certification – Obtain and maintain Huntington Beach Tiller Certification. The parties agree that to the extent permitted by law, Tiller Certification Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(4) Tiller Premium. b. Class A. B, C Driver License – Obtain and maintain a minimum of a valid Class A, Class B or Class C California driver license with firefighter endorsement or Class B restrictive California driver license. c. Light Air Unit – Ability to drive and operate, the Light Air Unit as required, and identified in Exhibit D. The parties agree that to the extent permitted by law, Light Air Unit Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(4) Tiller Premium. 6. Bilingual Skill Pay - Employees who are qualified may be called upon to use Spanish, Vietnamese, or American Sign Language skills shall be paid an additional five percent (5%) of their base rate of pay in addition to their regular bi-weekly salary. Additional languages may be approved at the discretion of the City Manager. Employees may accept assignments utilizing bilingual skills in Japanese or other languages on a short-term assignment with approval by the City Manager. Such employees shall receive the additional five percent (5%) of their base rate of pay for the pay period that the assignment is in effect. 690 In order to be qualified and certified for said compensation, employee's language proficiency will be tested and certified by the Human Resources Director or designee. Basic conversational proficiency will be evaluated based on response to a scenario driven oral evaluation. Human Resources will notify candidates of the results of the oral evaluation. If the candidate’s attempt is unsuccessful, he/she may repeat the process in six (6) months’ time from the date of the previous exam. Bilingual skill pay shall begin the first day of the pay period following certification. Employees certified and receiving bilingual skill pay for American Sign Language shall be required to re-certify bilingual skills with the Human Resources Director or designee every five (5) years. The parties agree that to the extent permitted by law, Bilingual Skill Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(4) Bilingual Premium. 7. Investigator: a. Level I Arson Investigators are appointed by the Fire Chief. Level I Arson Investigators are Level II Arson Investigator trainees. Level I Arson rate is 4.6% above a Firefighter Paramedic 40-hour rate at time and one-half. 1) Level I Arson Investigators assigned to an incident while off duty will be compensated the full Level I Arson Investigator rate. 2) Level I Arson Investigators assigned to an incident while on duty will be compensated the difference between their current hourly rate and the current Arson Level I Investigator rate (differential). b. Level II Arson Investigators are appointment by the Fire Chief. The Level II Arson Investigator rate is 11% above the Arson Level I Investigator rate. a.1) Level II Arson Investigators assigned to an incident while off duty will be compensated the full Level II Arson Investigator rate. b.2) Level II Arson Investigators assigned to an incident while on duty will be compensated the difference between their current hourly rate and the current Arson Level II Investigator rate (differential). The parties agree that to the extent permitted by law, Investigator Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(4) Fire Investigator Premium. 8. Urban Search and Rescue (USAR) Team Assignment Pay: a. Employees certified and assigned to a Type 3 (Light Duty) USAR team shall receive special assignment pay of one percent (1%) of their base rate of pay. b. Employees certified and assigned to a Type 2 (Medium Duty) USAR team shall receive special assignment pay of three percent (3%) of their base rate of pay. 691 c. Employees certified and assigned to a Type 1 (Heavy Duty) USAR team who are qualified and regularly assigned to the Team (not to exceed 24 employees) shall receive special assignment pay of five percent (5%) of their base rate of pay. The parties agree that to the extent permitted by law, USAR Team Assignment Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(4) Hazard Premium. 9. Hazardous Materials (Hazmat) Team Assignment Pay: a. Employees assigned to the Hazmat team as a Hazmat Technician shall receive special assignment pay of five percent (5%) of their base rate of pay. b. Employees assigned to the Hazmat team as a Hazmat Specialist shall receive special assignment pay of seven and one-half percent (7.5%) of their base rate of pay. The parties agree that to the extent permitted by law, Hazmat Team Assignment Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(4) Hazard Premium. 10. Rank Paramedic Assignment Pay – Employees in the classification of Fire Engineer and Fire Captain who are assigned to perform paramedic duties shall receive special assignment pay of fourteen percent (14%) of their base rate of pay. The parties agree that to the extent permitted by law, Rank Paramedic Assignment Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(2) Paramedic Pay. 11. Special Certification Pay - Employees who are licensed paramedics and have obtained the following special certifications shall receive special certification pay as follows: a. Advanced Paramedic Certification – Each employee who possesses a current certification of (1) Advanced Cardiac Life Support through the American Heart Association, (2) Pediatric Advanced Life Support through the American Heart Association or Pediatric Education for Pre-hospital Personnel through the American Academy of Pediatrics and (3) Pre-Hospital Trauma Life Support or Basic Trauma Life Support shall receive special certification pay of one percent (1%) of their base rate of pay. Any licensed Paramedic who did not acquire their advance Paramedic certifications through the American Heart Association and the American Academy of Pediatrics prior to July 1, 2017 and was receiving this special certification pay, shall continue to receive the pay, but must meet the requirements herein when their current certification expires in order to continue to receive the pay. Employees who did not acquire their Advanced Paramedic certifications through the American Heart Association and the American Academy of Pediatrics prior to July 1, 2017, but have obtained the special certifications through other providers, and 692 have submitted for this special certification pay, shall receive the pay. However, they must meet the requirements herein when their current certification expires in order to continue to receive the pay. The parties agree that to the extent permitted by law, Advanced Paramedic Certification is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(2) Paramedic Pay. All special certification/special assignment/skill pay provided in Article V (E) shall be effective the beginning of the first full pay period following certification. The certification process shall be as follows: 1. The employee shall complete an Official Report including evidence that he/she has completed all required courses necessary to receive the certifications noted above. 2. Upon approval of the Fire Chief, the Official Report shall be submitted to the Education Committee for approval. 3. The effective date of the certification pays as defined above shall begin as defined in Article V.A.1.f. F. Holiday Pay-In-Lieu - Employees shall be compensated by the City in-lieu of the ten (10) listed holidays at their appropriate assigned work schedule rate, either at a forty-hour (40) or fifty-six hour (56) workweek. Employees assigned to the 40-hour workweek shall be compensated eight (8) hours per holiday. Employees assigned to the 56-hour workweek shall be compensated eleven hours and twelve minutes (11.2) hours per holiday. Personnel who change from a fifty- six (56) hour schedule to a forty (40) hour schedule shall multiply the existing hours by .7143. Personnel who change from a forty (40) hour schedule to a fifty-six (56) hour schedule shall divide their existing hours by .7143. The following are the recognized legal holidays under this MOU: 1. New Year’s Day (January 1) 2. Martin Luther King’s Birthday 3. President’s Day (third Monday in February) 4. Memorial Day (last Monday in May) 5. Independence Day (July 4) 6. Labor Day (first Monday in September) 7. Veterans’ Day (November 11) 8. Thanksgiving Day (fourth Thursday in November) 9. Friday after Thanksgiving 10. Christmas Day (December 25) Any day declared by the President of the United States to be a national holiday, or by the Governor of the State of California to be a State holiday, and adopted as an employee holiday by the City Council of Huntington Beach. 693 The parties agree that to the extent permitted by law, Holiday in Lieu Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(5) Statutory Items. G. Longevity Pay - All employees with the following full time, continuous service in the City of Huntington Beach shall receive the following longevity pay: 1. Five (5) years or more, but less than ten (10) years, of service shall receive longevity pay equal to 2.5% of base salary as set forth in Exhibit B. 2. Ten (10) years or more, but less than twenty (20) years, of service shall receive longevity pay equal to 5% of base salary as set forth in Exhibit B. 3. Twenty (20) years or more of service shall receive longevity pay equal to 7.5% of base salary as set forth in Exhibit B. The parties agree that to the extent permitted by law, Longevity Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(1) Longevity Pay. H. Emergency Medical Technician Pay –All employees in the unit who possess an Emergency Medical Technician (EMT) certification shall receive one and sixty-seven one hundredths percent (1.67%) of base salary. The parties agree that to the extent permitted by law, Emergency Medical Technician (EMT) Pay is special compensation and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(2) Emergency Medical Technician Pay. I. Reporting to CalPERS – In the event that CalPERS challenges the City’s report of any special compensation as compensation earnable and informs the City that it cannot not report the pay since it does not qualify as special compensation per Title 2 CCR section 571, the City is not obligated to continue to report the pay. This is provided for per Title 2 Section 571(c) & (d). ARTICLE VI – UNIFORMS, CLOTHING, TOOLS AND EQUIPMENT A. Uniforms Provided by City – The City will provide all employees with uniforms as described in the most current Policy C-2 (Uniforms) executed by the City and HBFA. Either party may request to meet and confer during the MOU on Policy C-2. B. Uniform Allowance/Fitness – The City shall provide each employee who participates in the Fire Department’s current physical fitness program, Policy D-9, one hundred fifty dollars ($150) per fiscal year for the purchase of physical fitness uniforms and physical fitness shoes, payable in the first payroll period of December. New employees must actively participate a minimum of 90 days prior to December 1st to be eligible for the December uniform allowance. Either party may request to meet and confer during the MOU on Policy D-9. 694 C. Uniform Care and Replacement: 1. The City at no cost to the employee, shall replace any uniforms with the exception of the physical fitness uniforms that are destroyed, become unacceptable, or were damaged by circumstances involving the Firefighter’s regular work while on duty. 2. The uniforms described in paragraph A of this Article and Policy C -2 (Uniforms) shall be replaced by the City whenever the Fire Chief or his/her sworn designee determines that such replacement is necessary. 3. The employee shall be responsible for the preservation and cleaning of all uniforms. 4. All uniforms and equipment furnished by the City, with the exception of T-shirts, shall remain the property of the City and be returned or replaced if the employee terminates. D. Uniform Policies and Advisory Committee: 1. The present uniform and clothing policies, as delineated in this Article, shall remain in effect. until the Fire Chief or his/her sworn designee and the Association mutually agrees on a new uniform system and on the date of implementation. Either party may seek to meet and confer over a change to the policy during the term of this MOU. On said implementation date, Aall safety clothing and uniforms required by the City to be worn by employees during working hours shall meet all applicable State and Federal regulations relating to said clothing and, with the exception of station uniforms, be of a high quality, fire resistant material. 2. A uniform advisory committee composed of two (2) members appointed by the Association and two (2) representatives appointed by the Fire Chief, shall make recommendations on the uniforms to be worn, the method of said uniforms will be provided and obtained and further recommendations on safety clothing and uniforms may be required during the term of this MOU. E. Reportable to PERS - The City will report as special compensation, in accordance with Title 2, California Code of Regulations, Section 571(a)(5) to the California Public Employees’ Retirement System (CalPERS), for each classification the average annual cost of uniforms provided by the City as well as the physical fitness uniform described in Subsection (B). For employees who are not actively employed for an entire payroll calendar year, a prorated cost of uniforms shall apply. Upon request, the City will inform HBFA of the amounts reported as special compensation under this provision. For “new members” as defined by the Public Employees’ Pension Reform Act of 2013, the cost of uniforms will not be reported as compensation earnable to CalPERS. 695 ARTICLE VII – HOURS OF WORK/OVERTIME A. Work Schedule: 1. All twenty-four (24) hour shift employees shall work an average of fifty-six (56) hours per week pursuant to the current schedule of five (5) twenty-four (24) hour shifts in a fifteen (15) day period with six (6) consecutive days off. Effective January 3, 2019, employees[City1] shall work the 48/96 work schedule in which they are scheduled to work two (2) consecutive days on followed by four (4) consecutive days off. 2. All twenty-four (24) hour shift employees shall be on a fifteen (15) day work period consistent with the 7(K) exemption set forth in the Fair Labor Standards Act (FLSA). Effective January 3, 2019, all twenty-four (24) hour shift employees shall be on a twenty- four (24) day work period consistent with the 7(K) exemption set forth in the Fair Labor Standards Act (FLSA). The parties agree that the 48/96 work schedule will be in effect for a trial period of exactly 360 days (fifteen (15) twenty-four (24) day work periods) at which time it will sunset unless the parties both agree to continue it. In the 90 day period prior to the expiration of the trial period, the parties shall inform each other if they want the 48/96 work schedule to end or continue. If both parties agree that it should continue (and therefore become the work schedule in effect for 24-hour shift employees) it shall continue unless and until it is changed in the future through labor negotiations. If either party wishes the 48/96 work schedule to end at the end of the trial period, it shall end. However, the parties agree to meet and discuss their respective positions. prior to terminating the schedule to try to resolve an y issues causing the desire to terminate the schedule. 3. Fire Prevention staff and administrative work schedules are to be forty (40) hours per week on a four (4) day workweek, ten (10) hours per day, twenty eight (28) day 7(K) FLSA work period. B. Hours of Work - Defined: 1. Hours worked shall be defined as actual time worked, approved vacation, sick leave, compensatory time off, bereavement leave, and industrial injury or illness leave, with the exception of exchange of shift not being included. 2. Exchange of shifts (aka as shift trades) shall occur at 0800 hours each day and comply with Fire Department Rules and Regulations, Policy B-2. 3. Meal periods are paid as hours worked for personnel who are subject to call for emergency duty. 4. The maximum time allowed within the forty (40) hour workweek (for employees assigned to work 40 hours per week) schedule for physical fitness shall not exceed four (4) hours within any given workweek. All physical fitness activities considered to be 696 work activities shall be conducted on duty at the fire stations or as provided in the current fitness policy D-9. Fitness activities shall be conducted under supervision as appropriate. 5. An employee who is held over beyond the end of his/her regular shift shall be compensated for the actual time he/she is required to remain on duty, computed to nearest quarter (1/4) hour. If an employee works seven minutes or less, the time will be rounded down and if eight minutes or more will be rounded up to the nearest quarter (1/4) hour. 6. Exchanges of time (aka shift trades) count as hours worked for the employee whose shift was worked, not for the employee who worked the shift. These hours count as hours worked for FLSA purposes only. 7. An employee shall be considered to be working if he/she is ordered to duty by the Fire Chief or his/her sworn designee. C. Level Pay Plan: 1. Twenty-four (24) Hour Shift Personnel – The 15 day FLSA work period for each employee shall begin at 8 a.m. on the first shift worked by the A shift following six days off. All hours worked in excess of 114 hours in an FLSA work period shall be compensated at the premium rate (one and one half times the regular rate of pay). All regularly scheduled non “lost time” hours shall be counted as hours worked. Each employee assigned to twenty-four hour shifts for a full FLSA work period shall receive 106.4 hours of regular pay and 5.6 hours at the overtime rate of pay, as defined in subsection D.1.a.of this Article, in each bi-weekly pay period, which shall compensate the employee for FLSA overtime for regularly scheduled shift work. The intent of this system is that all FLSA overtime hours worked shall be compensated by the first payday following the end of the 15 day FLSA work period. In the event that an employee receives FLSA overtime on a payday before that employee has actually worked FLSA overtime hours, the amount received shall be credited for FLSA purposes toward the next occasion on which the employee works FLSA overtime. If an employee who is paid FLSA overtime in advance of working FLSA hours leaves City employment, there shall be an adjustment in his/her final paycheck to reflect such advance payment. The 24 day FLSA work period for each employee shall begin at 8 a.m. All hours worked in excess of 182 hours in an FLSA work period shall be compensated at the premium rate (one and one half times the regular rate of pay). All regularly scheduled non “lost time” hours shall be counted as hours worked. Each employee assigned to twenty-four hour shifts for a full FLSA work period shall receive 106.15 hours of regular pay and 5.85 hours at the overtime rate of pay, as defined in subsection D.1.a. of this Article, in each bi-weekly pay period, which shall compensate the employee for FLSA overtime for regularly scheduled shift work. 2. In addition to the overtime pay as provided in subsection 1 above, twenty-four (24) hour shift employees shall receive pay at the overtime rate for hours worked in excess of regularly 697 scheduled hours unless the employee has “lost time” in a regularly scheduled shift. If there is “lost time” in any regularly scheduled shift, the employee shall receive overtime pay for only those overtime hours worked in excess of the number of lost time hours in the bi- weekly pay period. 3. Lost Time Defined – “Lost time” is defined as time when the employee does not work when regularly scheduled to do so and does not receive a leave of absence with pay. 4. Forty (40) Hour Work Week – Personnel who are not assigned to twenty-four hour shifts but are assigned to work forty (40) hours per week shall have a twenty-eight (28) day FLSA work period, which shall correspond to exactly two City pay periods and shall begin at the same time as a City pay period. Forty (40) hour personnel shall continue to receive overtime pay for working hours in excess of their regularly scheduled hours. 5. 4/10 Work Schedule Defined – The 4/10 work schedule shall be defined as working four (4) days at ten (10) hours per day in an FLSA designated work week. Meal periods are regarded as hours worked for personnel who are subject to call for emergency duty. All employees on the 4/10 work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions which, in the opinion of the City Manager, Department Head or designee may require such service from said employees. 1.D. Overtime/Compensatory Time Off: 1. Paid Overtime: a. All employees covered by this MOU shall be eligible for overtime pay at one and one- half (1½) times their regular rate of pay, as defined by the FLSA, for all actual work performed in excess of the employees’ scheduled hours in their declared work period. Employees assigned to fire suppression duties are scheduled to work 120 hours in the declared 15 day FLSA work period. Effective January 3, 2019, while the 48/96 work schedule is in effect, employees assigned to fire suppression duties are scheduled to work 192 hours in the declared 24 day FLSA work period. b. Any employee who works overtime in either a higher or lower classification shall be compensated at the rate of pay consistent with the classification worked. However, if an employee is force hired to work in a lower classification (e.g., a Fire Engineer is force hired to work as a Firefighter) the employee shall be compensated at the rate attendant to his/her regular classification. c. The City will maintain and adhere to the overtime system as set out in the most current Policy D-3 executed by the parties. The overtime system and/or Policy D -3 may be modified by mutual agreement of the parties at any time during the term of the MOU. 2. Compensatory Time Off: 698 a. Non-Exempt – All overtime worked by non-exempt employees shall be compensated at the employee’s overtime rate of pay and shall not be compensated by compensatory time off. b. Staff Personnel – For all employees in the classification of Administrative Fire Captain, in lieu of compensation by cash payment for overtime as provided in this Article, such employees may, at their option and with the approval of the Fire Chief or designee, be compensated by compensatory time off at time and one half for each overtime hour worked. 1) Compensatory time off may be accumulated to a maximum of one hundred- twenty (120) hours. Compensatory time off may be taken on an hour-for-hour basis, with the approval of the Fire Chief or his/her sworn designee. Permission shall be granted unless granting the request will unduly disrupt the Department, or unless denying the request will violate the FLSA. Until December 31, 2018, Uupon his/her request, any employee may elect to convert all or a portion of compensatory time to a cash payment at the employee’s regular rate of pay. Any such payment shall be made on the next regular payday, following the request, provided the request is made by the end of the previous payroll period. The parties agree that during the term of this MOU, either party can reopen negotiations on the limited subject of when, during the year, an employee may make an election to cash out of compensatory time. Any agreement must be mutually agreed to by the parties. Effective for calendar year 2019 and every year thereafter the previous paragraph is eliminated and the following shall apply: By December 15 (the first year being 2018) of each year, an employee may make an irrevocable election to cash out compensatory time off hours which he/she may earn in the following calendar year. An employee will receive the cash for the compensatory time off (assuming he/she has earned it) he/she irrevocably elected to cash out in the following calendar year. He/she can either receive the cash all in the first pay period in December or half the cash in the second pay period in July and the other half in the first pay period in December. However, if the employee has not earned the compensatory time off for which he/she elected to cash out (either in July or December) the employee will receive cash for the amount of compensatory time off he/she has accrued in the calendar year. If an employee makes an irrevocable election to cash out compensatory time off in the following calendar year and uses compensatory time off in that subsequent year, the compensatory time off used will come from annual leave the employee had earned prior to January 1 of the year the employee has elected to cash out annual leave. This is to ensure that assuming an employee had a compensatory time off balance prior to January 1, the compensatory time off used will not result in a reduction in the amount of compensatory time off the employee will be eligible to cash out. 699 In addition to the above, starting in calendar year 2019, an employee who has an “unforeseen emergency” (defined as an unanticipated emergency that is caused by an event beyond the control of the employee and that would result in severe financial hardship to the employee if early withdrawal were not permitted) shall be entitled to make a request to the Director of Human Resources for a payoff of accrued compensatory time. The amount of compensatory time off which may be paid off is limited to the amount necessary to meet the emergency. The maximum payoff the employee can receive for an emergency what is in his/her compensatory time off bank. 2) Compensatory time off may not be received in lieu of a cash payment for time worked during major emergencies when, in the opinion of the Fire Chief or his/her sworn designee, the City may be eligible for reimbursement from another agency for said cash payment. c. Compensatory Time Paid Off – Immediately prior to the time of any change in the salary schedule, any accumulated time, which has not been used or paid off, shall be eligible to be paid in cash at the regular rate of pay based upon the salary schedule for forty (40) hour per week personnel in effect prior to the change. 3. Callback – Employees who are ordered to return to duty on other than their regularly scheduled shift shall receive a minimum of two (2) hours compensation at the employee’s overtime rate of pay. 4. Mandatory Standby – Any employee may be placed on “mandatory standby” by the Fire Chief or his/her sworn designee. Employees on mandatory standby must remain available for immediate response during the designated standby period. All personnel placed on mandatory standby shall receive a minimum of two (2) hours compensation for each twelve (12) hours of off duty standby time or fraction thereof. 5. Electronic Communication Devices – Recognizing that electronic communication devices are part of the Fire Department’s business and emergency alerting system, electronic communication devices shall be issued and worn only on a voluntary basis with the exception of members who are placed on mandatory standby who may be required to wear an electronic communication device while on such standby. An employee placed on mandatory standby may voluntarily wear an electronic communication device, and if so, shall receive a minimum of two (2) hours compensation for each twenty-four (24) hours of off duty standby time or fraction thereof. Electronic communications devices, as described above, shall not include cell phones. Members assigned to special staff or prevention duties and voluntarily recei ving other types of consideration (i.e., twenty-four (24) hour assigned vehicle) may be required to wear pagers and respond while off duty when within pager call range. 6. Required Training Attendance – An employee who is required to attend a class or seminar to maintain his/her current position shall have his/her related expenses paid by the City. If attendance occurs at a time when the employee is not scheduled to work, he/she shall be compensated on an hourly basis. 700 7. Cancellation of Overtime – Any employee who is scheduled by the City to work overtime in advance of the time set forth for such scheduling in Huntington Beach Fire Department Organization Manual, Policy D-3, which is subsequently cancelled less than seventy-two (72) hours in advance of the commencement of the scheduled overtime shift, shall receive a minimum of two (2) hours pay at the employee’s overtime rate. 8. Court Time: a. Employees placed on standby for a court appearance involving City business during other than their scheduled working hours shall receive a minimum of two (2) hours base rate of pay for each morning and/or afternoon session. b. Employees appearing in court on City business during other than their scheduled working hours shall receive a minimum of three (3) hours pay at the overtime rate; provided, however, that if such time overlaps with the employee’s scheduled working hours, said pay shall be limited to those hours occurring prior to or after the employee’s scheduled work time. c. Employees shall not receive both standby pay and overtime pay for the same court session. An employee who is on standby and reports to court will be paid in accordance with (b) above. 9. Pay out of Rank - Subject to the approval of the Fire Chief or his/her sworn designee, an employee may voluntarily work in a classification below his/her rank. 2.E. Jury Duty – Employees who are summoned to perform jury service shall be entitled to their regular compensation while serving; provided the fees, except mileage and subsistence allowance, if any, which they receive as jurors, are remitted to the City. If an employee calls in at night and finds out that he/she must report to jury duty the next day (and are scheduled to be working that day as part of a regular shift or on an overtime basis) he/she must contact his/her Battalion Chief as soon as possible so that coverage can be arranged for his/her shift. Employees are required to return to work if dismissed by the Court from jury duty. The returning employee will go back to his/her shift and the employee who replaced him/her will be relieved from duty at that time for the remainder of the shift. 3.F. Shift Exchange/Relief: The Fire Department shall allow Association members’ exchanges of schedule pursuant to the most current Policy D-7 of the Huntington Beach Fire Department Organization Manual that has been executed by the parties. Policy D-7 (Exchange of Work Schedule) may be modified by mutual agreement of the parties at any time during the term of this MOU. 701 1. An employee may be relieved by any other employee who is qualified to relieve him/her at any time by utilizing appropriate leave (i.e., vacation). In addition, the parties acknowledge Department of Labor regulation, 29 CFR section 553.225 which provides: It is a common practice among employees engaged in fire protection activities to relieve employees on the previous shift prior to (between the hours of 0600 and 0800) the scheduled starting time. Such early relief time may occur pursuant to employee agreement, either expressed or implied. This practice will not have the effect of increasing the number of compensable hours of work for employees employed under section 7(k) where it is voluntary on the part of the employees and does not result, over a period of time, in their failure to receive proper compensation for all hours actually worked. On the other hand, if the practice is required by the employer, the time involved must be added to the employee's tour of duty and treated as compensable hours of work. 4.G. Assigned Shift Policy – Employees of equal rank shall have the option to change assigned shifts on an employee for employee basis upon written request to and approved by the Fire Chief. 5.H. Minimum Staffing and Filling Vacancies: 1. Minimum Staffing Levels – The City shall cause apparatus to be staffed with sufficient employees to assure the safety of employees and the control of risk. For these purposes, the minimum staffing of apparatus shall be as defined by Policy D-14, Minimum Staffing and Filling of Vacancies, a copy of which is attached as Exhibit GH and incorporated by reference herein. a. For the duration of this MOU, on each shift, there will be on duty at all times a minimum number of 4 Firefighters, 16 Firefighter/Paramedics, 10 Fire Engineers, and 10 Fire Captains. This minimum staffing provision shall sunset at the expiration of this MOU on June 30, 202018, unless the parties agree to incorporate it into a successor MOU. a. Minimum staffing of in the Fire Department is set forth in Policy D-14 which is in Appendix G to this MOU. b. If a Rank Paramedic is activated on a Paramedic Engine, the overall number of on - duty Firefighters will increase and the overall number of Firefighter/Paramedics will decrease for each Rank Paramedic. However, the total number of on-duty Paramedics will be no less than 16. c. If the Fire Chief determines the need to convert a Truck Company to a PAU or Paramedic Truck Company, the overall number of on-duty paramedics shall be no less than 16.increase accordingly. D.I. Probationary Period: 1. Length of the Probationary Period - Employees in the bargaining unit shall serve a probationary period when initially appointed to a position in the unit and also when they 702 promote into a higher rank. The probationary period shall be one year from the time of initial appointment or promotion into a higher rank. 2. Extension of the Probationary Period - An employee who uses more than 120 hours of leave for any purpose by the last day of his/her probationary period will have his/her probationary period extended by the total amount of leave (paid or unpaid) used during the probationary period. ARTICLE VIII – HEALTH AND OTHER INSURANCE BENEFITS A. Health Insurance - The City shall continue to make available group health, dental and vision benefits to all HBFA employees. B. Eligibility Criteria and Cost: 2.1. City Paid Health Insurance – Employees and Dependents - An employee, eligible dependents, and qualifying domestic partners per state law, shall become eligible to participate in the City’s insurance plan described below effective the first of the month following the employee’s date of hire. Any required employee payroll deduction shall begin with the first full pay period following the effective date of coverage and shall continue through the end of the month in which the employee separates. 3.2. Employer Contributions to Health and Other Insurance Benefits - The City’s maximum monthly employer contributions for health and other insurance premiums is set forth in the charts below. The amounts listed below are inclusive of the CalPERS statutory minimum amount. i. Employee only (“EE”) – Effective the beginning of the pay period following City Council approval of this MOU, tThe cost of the premium up to a maximum of $500.00. Effective the beginning of the pay period following City Council approval of this MOU, the cost of the premium up to a maximum of $600.00. Effective on the first day of the pay period which includes July 1, 2019, the cost of the premium up to a maximum of $700.00.  Effective on the first day of the pay period which includes July 1, 2020, the cost of the premium up to a maximum of $800.00. ii. Employee + one dependent (“EE” + 1) – Effective the beginning of the pay period following City Council approval of this MOU, tThe cost of the premium up to a maximum of $815.00. Effective the beginning of the pay period following City Council approval of this MOU, the cost of the premium up to a maximum of $915.00. 703 Effective on the first day of the pay period which July 1, 2019, the cost of the premium up to a maximum of $1,015.00.  Effective on the first day of the pay period which July 1, 2020, the cost of the premium up to a maximum of $1,115.00. iii. Employee + two or more dependents (“EE” + 2) – Effective the beginning of the pay period following City Council approval of this MOU, tThe cost of the premium up to a maximum of $1,325.00. Effective the beginning of the pay period following City Council approval of this MOU, the cost of the premium up to a maximum of $1,425.00. Effective on the first day of the pay period which includes July 1, 2019, the cost of the premium up to a maximum of $1,525.00.  Effective on the first day of the pay period which includes July 1, 2020, the cost of the premium up to a maximum of $1,625.00. Tier Upon City Council Approval (per month) Beginning of the pay period which includes July 1, 2019 (per month) Beginning of the pay period which includes July 1, 2020 (per month) *Single $600.00 $700.00 $800.00 *Two-Party $915.00 $1,015.00 $1,115.00 *Family $1,425.00 $1,525.00 $1,625.00 Opt Out $600.00 $700.00 $800.00 704 2017 Health Premiums and Contributions So CA Region - Effective 1/1/2017 HBFA Plan Tier Monthly Premium Employer Monthly Contribution Employee Monthly Contribution Employee Bi-Weekly Contribution PERS Anthem HMO Select Single 659.03 500.00 159.03 73.40 Two-Party 1,318.06 815.00 503.06 232.18 Family 1,713.48 1,325.00 388.48 179.30 PERS Anthem HMO Traditional Single 799.15 500.00 299.15 138.07 Two-Party 1,598.30 815.00 783.30 361.52 Family 2,077.79 1,325.00 752.79 347.44 PERS Blue Shield Access+ Single 778.45 500.00 278.45 128.52 Two-Party 1,556.90 815.00 741.90 342.42 Family 2,023.97 1,325.00 698.97 322.60 PERS Health Net Salud y Mas Single 473.46 473.46 0.00 0.00 Two-Party 946.92 815.00 131.92 60.89 Family 1,231.00 1,231.00 0.00 0.00 PERS Health Net SmartCare Single 537.20 500.00 37.20 17.17 Two-Party 1,074.40 815.00 259.40 119.72 Family 1,396.72 1,325.00 71.72 33.10 PERS Kaiser Single 599.54 500.00 99.54 45.94 Two-Party 1,199.08 815.00 384.08 177.27 Family 1,558.80 1,325.00 233.80 107.91 PERS UnitedHealthcare Single 549.76 500.00 49.76 22.97 Two-Party 1,099.52 815.00 284.52 131.32 Family 1,429.38 1,325.00 104.38 48.18 PERS Choice Single 714.43 500.00 214.43 98.97 Two-Party 1,428.86 815.00 613.86 283.32 Family 1,857.52 1,325.00 532.52 245.78 PERS Select Single 633.46 500.00 133.46 61.60 Two-Party 1,266.92 815.00 451.92 208.58 Family 1,647.00 1,325.00 322.00 148.62 PERS Care Single 802.24 500.00 302.24 139.50 Two-Party 1,604.48 815.00 789.48 364.38 Family 2,085.82 1,325.00 760.82 351.15 PORAC Single 699.00 500.00 199.00 91.85 Two-Party 1,467.00 815.00 652.00 300.92 Family 1,876.00 1,325.00 551.00 254.31 705 Delta Dental PPO Single 58.10 42.88 15.22 7.02 Two-Party 108.60 81.82 26.78 12.36 Family 143.20 116.36 26.84 12.39 Delta Care HMO Single 30.11 23.00 7.11 3.28 Two-Party 51.19 39.11 12.08 5.58 Family 78.29 59.81 18.48 8.53 VSP Vision Single 23.86 17.58 6.28 2.90 Two-Party 23.86 17.58 6.28 2.90 Family 23.86 17.58 6.28 2.90 Medical Opt Out Benefit: $500.00 per month ($230.77 bi-weekly). Effective the beginning of pay period following Council approval of this MOU, the cost of the single party premium up to a maximum of $600.00 per month ($276.92 bi-weekly). Effective the beginning of the pay period including July 1, 2019, the cost of the single party premium up to a maximum of $700.00 per month ($323.08 bi-weekly). Effective the beginning of the pay period including July 1, 2020 the cost of the single party premium up to a maximum of $800.00 per month ($369.23 bi-weekly). CalPERS PEMHCA 20187 employer contribution = $133.0028.00 per month, $61.3859.08 bi-weekly CalPERS PEMHCA 2019 employer contribution = $136.00 per month, $62.77 bi -weekly Employee and City contributions subject to change as a result of contract negotiations Other Southern California Region: Fresno, Imperial, Inyo, Kern, Kings, Madera, Riverside, Orange, San Diego, San Luis Obispo, Santa Barbara, Tulare 2017 Health Premiums and Contributions LA Region - Effective 1/1/2017 HBFA Plan Tier PERS Anthem HMO Select Single Two-Party Family PERS Anthem HMO Traditional Single Two-Party Family PERS Blue Shield Access+ Single Two-Party Family PERS Health Net Salud y Mas Single Two-Party Family PERS Health Net SmartCare Single Two-Party 706 Family PERS Kaiser Single Two-Party Family PERS UnitedHealthcare Single Two-Party Family PERS Choice Single Two-Party Family PERS Select Single Two-Party Family PERS Care Single Two-Party Family PORAC Single Two-Party Family Delta Dental PPO Single Two-Party Family Delta Care HMO Single Two-Party Family VSP Vision Single Two-Party Family Medical Opt Out Benefit: $500.00 per month ($230.77 bi-weekly) CalPERS PEMHCA 2017 employer contribution = $128.00 per month, $59.08 bi -weekly Employee and City contributions subject to change as a result of contract negotiations Los Angeles Area Region: Los Angeles, San Bernardino, Ventura 2018 Health Premiums and Contributions So CA Region - Effective 1/1/2018 HBFA Plan Tier Monthly Premium Employer Monthly Contribution Employee Monthly Contribution Employee Bi-Weekly Contribution Single 659.69 500.00 159.69 73.70 707 PERS Anthem HMO Select Two- Party 1,319.38 815.00 504.38 232.79 Family 1,715.19 1,325.00 390.19 180.09 PERS Anthem HMO Traditional Single 735.08 500.00 235.08 108.50 Two- Party 1,470.16 815.00 655.16 302.38 Family 1,911.21 1,325.00 586.21 270.56 PERS Blue Shield Access+ Single 695.97 500.00 195.97 90.45 Two- Party 1,391.94 815.00 576.94 266.28 Family 1,809.52 1,325.00 484.52 223.62 PERS Health Net Salud y Mas Single 461.56 461.56 0.00 0.00 Two-Party 923.12 815.00 108.12 49.90 Family 1,200.06 1,200.06 0.00 0.00 PERS Health Net SmartCare Single 607.68 500.00 107.68 49.70 Two- Party 1,215.36 815.00 400.36 184.78 Family 1,579.97 1,325.00 254.97 117.68 PERS Kaiser Single 666.80 500.00 166.80 76.98 Two- Party 1,333.60 815.00 518.60 239.35 Family 1,733.68 1,325.00 408.68 188.62 PERS UnitedHealthcare Single 616.66 500.00 116.66 53.84 Two- Party 1,233.32 815.00 418.32 193.07 Family 1,603.32 1,325.00 278.32 128.46 PERS Choice Single 698.96 500.00 198.96 91.83 Two- Party 1,397.92 815.00 582.92 269.04 Family 1,817.30 1,325.00 492.30 227.22 PERS Select Single 654.74 500.00 154.74 71.42 Two- Party 1,309.48 815.00 494.48 228.22 Family 1,702.32 1,325.00 377.32 174.15 PERS Care Single 733.50 500.00 233.50 107.77 Two- Party 1,467.00 815.00 652.00 300.92 Family 1,907.10 1,325.00 582.10 268.66 PORAC Single 734.00 500.00 234.00 108.00 708 Two- Party 1,540.00 815.00 725.00 334.62 Family 1,970.00 1,325.00 645.00 297.69 Delta Dental PPO Single 56.00 42.88 13.12 6.06 Two- Party 104.60 81.82 22.78 10.51 Family 137.90 116.36 21.54 9.94 Delta Care HMO Single 30.11 23.00 7.11 3.28 Two- Party 51.19 39.11 12.08 5.58 Family 78.29 59.81 18.48 8.53 VSP Vision Single 23.86 17.58 6.28 2.90 Two- Party 23.86 17.58 6.28 2.90 Family 23.86 17.58 6.28 2.90 Medical Opt Out Benefit: $500.00 per month ($230.77 bi -weekly) CalPERS PEMHCA 2018 employer contribution = $133.00 per month, $61.38 bi -weekly Employee and City contributions subject to change as a result of contract negotiations Other Southern California Region: Fresno, Imperial, Inyo, Kern, Kings, Madera, Riverside, Orange, San Diego, San Luis Obispo, Santa Barbara, Tulare 2018 Health Premiums and Contributions LA Region - Effective 1/1/2018 HBFA Plan Tier Monthly Premium Employer Monthly Contribution Employee Monthly Contribution Employee Bi-Weekly Contribution PERS Anthem HMO Select Single 660.17 500.00 160.17 73.92 Two- Party 1,320.34 815.00 505.34 233.23 Family 1,716.44 1,325.00 391.44 180.66 PERS Anthem HMO Traditional Single 784.72 500.00 284.72 131.41 Two- Party 1,569.44 815.00 754.44 348.20 Family 2,040.27 1,325.00 715.27 330.12 PERS Blue Shield Access+ Single 613.29 500.00 113.29 52.29 Two-Party 1,226.58 815.00 411.58 189.96 Family 1,594.55 1,325.00 269.55 124.41 Single 404.32 404.32 0.00 0.00 709 PERS Health Net Salud y Mas Two- Party 808.64 808.64 0.00 0.00 Family 1,051.23 1,051.23 0.00 0.00 PERS Health Net SmartCare Single 577.15 500.00 77.15 35.61 Two- Party 1,154.30 815.00 339.30 156.60 Family 1,500.59 1,325.00 175.59 81.04 PERS Kaiser Single 642.70 500.00 142.70 65.86 Two-Party 1,285.40 815.00 470.40 217.11 Family 1,671.02 1,325.00 346.02 159.70 PERS UnitedHealthcare Single 602.78 500.00 102.78 47.44 Two- Party 1,205.56 815.00 390.56 180.26 Family 1,567.23 1,325.00 242.23 111.80 PERS Choice Single 620.39 500.00 120.39 55.56 Two- Party 1,240.78 815.00 425.78 196.51 Family 1,613.01 1,325.00 288.01 132.93 PERS Select Single 573.21 500.00 73.21 33.79 Two- Party 1,146.42 815.00 331.42 152.96 Family 1,490.35 1,325.00 165.35 76.32 PERS Care Single 673.73 500.00 173.73 80.18 Two- Party 1,347.46 815.00 532.46 245.75 Family 1,751.70 1,325.00 426.70 196.94 PORAC Single 734.00 500.00 234.00 108.00 Two- Party 1,540.00 815.00 725.00 334.62 Family 1,970.00 1,325.00 645.00 297.69 Delta Dental PPO Single 56.00 42.88 13.12 6.06 Two- Party 104.60 81.82 22.78 10.51 Family 137.90 116.36 21.54 9.94 Delta Care HMO Single 30.11 23.00 7.11 3.28 Two- Party 51.19 39.11 12.08 5.58 Family 78.29 59.81 18.48 8.53 VSP Vision Single 23.86 17.58 6.28 2.90 710 Two- Party 23.86 17.58 6.28 2.90 Family 23.86 17.58 6.28 2.90 Medical Opt Out Benefit: $500.00 per month ($230.77 bi -weekly) CalPERS PEMHCA 2018 employer contribution = $133.00 per month, $61.38 bi -weekly Employee and City contributions subject to change as a result of contract negotiations Los Angeles Area Region: Los Angeles, San Bernardino, Ventura 2018 Health Premiums and Contributions So CA Region - Effective 11/17/2018 HBFA Plan Tier Monthly Premium Employer Monthly Contribution Employee Monthly Contribution Employee Bi-Weekly Contribution PERS Anthem HMO Select Single 659.69 600.00 59.69 27.55 Two- Party 1,319.38 915.00 404.38 186.64 Family 1,715.19 1,425.00 290.19 133.93 PERS Anthem HMO Traditional Single 735.08 600.00 135.08 62.34 Two- Party 1,470.16 915.00 555.16 256.23 Family 1,911.21 1,425.00 486.21 224.40 PERS Blue Shield Access+ Single 695.97 600.00 95.97 44.29 Two- Party 1,391.94 915.00 476.94 220.13 Family 1,809.52 1,425.00 384.52 177.47 PERS Health Net Salud y Mas Single 461.56 600.00 461.56 213.03 Two- Party 923.12 915.00 8.12 3.75 Family 1,200.06 1,425.00 1,200.06 553.87 PERS Health Net SmartCare Single 607.68 600.00 7.68 3.54 Two- Party 1,215.36 915.00 300.36 138.63 Family 1,579.97 1,425.00 154.97 71.52 PERS Kaiser Single 666.80 600.00 66.80 30.83 Two- Party 1,333.60 915.00 418.60 193.20 Family 1,733.68 1,425.00 308.68 142.47 Single 616.66 600.00 16.66 7.69 711 PERS UnitedHealthcare Two- Party 1,233.32 915.00 318.32 146.92 Family 1,603.32 1,425.00 178.32 82.30 PERS Choice Single 698.96 600.00 98.96 45.67 Two- Party 1,397.92 915.00 482.92 222.89 Family 1,817.30 1,425.00 392.30 181.06 PERS Select Single 654.74 600.00 54.74 25.26 Two- Party 1,309.48 915.00 394.48 182.07 Family 1,702.32 1,425.00 277.32 127.99 PERS Care Single 733.50 600.00 133.50 61.62 Two- Party 1,467.00 915.00 552.00 254.77 Family 1,907.10 1,425.00 482.10 222.51 PORAC Single 734.00 600.00 134.00 61.85 Two- Party 1,540.00 915.00 625.00 288.46 Family 1,970.00 1,425.00 545.00 251.54 Delta Dental PPO Single 56.00 42.88 13.12 6.06 Two- Party 104.60 81.82 22.78 10.51 Family 137.90 116.36 21.54 9.94 Delta Care HMO Single 30.11 23.00 7.11 3.28 Two- Party 51.19 39.11 12.08 5.58 Family 78.29 59.81 18.48 8.53 VSP Vision Single 23.86 17.58 6.28 2.90 Two- Party 23.86 17.58 6.28 2.90 Family 23.86 17.58 6.28 2.90 Medical Opt Out Benefit: $600.00 per month ($276.92 bi-weekly) Effective the beginning of pay period following Council approval of this MOU, the cost of the single party premium up to a maximum of $600.00 per month ($276.92 bi -weekly). CalPERS PEMHCA 2018 employer contribution = $133.00 per month, $61.38 bi -weekly Employee and City contributions subject to change as a result of contract negotiations Other Southern California Region: Fresno, Imperial, Inyo, Kern, Kings, Madera, Riverside, Orange, San Diego, San Luis Obispo, Santa Barbara, Tulare 712 2018 Health Premiums and Contributions LA Region - Effective 11/17/2018 HBFA Plan Tier Monthly Premium Employer Monthly Contribution Employee Monthly Contribution Employee Bi-Weekly Contribution PERS Anthem HMO Select Single 660.17 600.00 60.17 27.77 Two- Party 1,320.34 915.00 405.34 187.08 Family 1,716.44 1,425.00 291.44 134.51 PERS Anthem HMO Traditional Single 784.72 600.00 184.72 85.26 Two- Party 1,569.44 915.00 654.44 302.05 Family 2,040.27 1,425.00 615.27 283.97 PERS Blue Shield Access+ Single 613.29 600.00 13.29 6.13 Two- Party 1,226.58 915.00 311.58 143.81 Family 1,594.55 1,425.00 169.55 78.25 PERS Health Net Salud y Mas Single 404.32 404.32 0.00 0.00 Two- Party 808.64 808.64 0.00 0.00 Family 1,051.23 1,051.23 0.00 0.00 PERS Health Net SmartCare Single 577.15 577.15 0.00 0.00 Two- Party 1,154.30 915.00 239.30 110.45 Family 1,500.59 1,425.00 75.59 34.89 PERS Kaiser Single 642.70 600.00 42.70 19.71 Two- Party 1,285.40 915.00 370.40 170.95 Family 1,671.02 1,425.00 246.02 113.55 PERS UnitedHealthcare Single 602.78 600.00 2.78 1.28 Two- Party 1,205.56 915.00 290.56 134.10 Family 1,567.23 1,425.00 142.23 65.64 PERS Choice Single 620.39 600.00 20.39 9.41 Two- Party 1,240.78 915.00 325.78 150.36 Family 1,613.01 1,425.00 188.01 86.77 713 PERS Select Single 573.21 573.21 0.00 0.00 Two- Party 1,146.42 915.00 231.42 106.81 Family 1,490.35 1,425.00 65.35 30.16 PERS Care Single 673.73 600.00 73.73 34.03 Two- Party 1,347.46 915.00 432.46 199.60 Family 1,751.70 1,425.00 326.70 150.78 PORAC Single 734.00 600.00 134.00 61.85 Two- Party 1,540.00 915.00 625.00 288.46 Family 1,970.00 1,425.00 545.00 251.54 Delta Dental PPO Single 56.00 42.88 13.12 6.06 Two- Party 104.60 81.82 22.78 10.51 Family 137.90 116.36 21.54 9.94 Delta Care HMO Single 30.11 23.00 7.11 3.28 Two- Party 51.19 39.11 12.08 5.58 Family 78.29 59.81 18.48 8.53 VSP Vision Single 23.86 17.58 6.28 2.90 Two- Party 23.86 17.58 6.28 2.90 Family 23.86 17.58 6.28 2.90 Medical Opt Out Benefit: $600.00 per month ($276.92 bi-weekly) Effective the beginning of pay period following Council approval of this MOU, the cost of the single party premium up to a maximum of $600.00 per month ($276.92 bi-weekly). CalPERS PEMHCA 2018 employer contribution = $133.00 per month, $61.38 bi -weekly Employee and City contributions subject to change as a result of contract negotiations Los Angeles Area Region: Los Angeles, San Bernardino, Ventura 2019 Health Premiums and Contributions So CA Region - Effective 7/1/2019 HBFA 714 Plan Tier Monthly Premium Employer Monthly Contribution Employee Monthly Contribution Employee Bi-Weekly Contribution PERS Anthem HMO Select Single 625.07 625.07 0.00 0.00 Two- Party 1,250.14 1,015.00 235.14 108.53 Family 1,625.18 1,525.00 100.18 46.24 PERS Anthem HMO Traditional Single 830.89 700.00 130.89 60.41 Two- Party 1,661.78 1,015.00 646.78 298.51 Family 2,160.31 1,525.00 635.31 293.22 PERS Blue Shield Access+ Single 760.04 700.00 60.04 27.71 Two- Party 1,520.08 1,015.00 505.08 233.11 Family 1,976.10 1,525.00 451.10 208.20 PERS Health Net Salud y Mas Single 427.81 427.81 0.00 0.00 Two- Party 855.62 855.62 0.00 0.00 Family 1,112.31 1,112.31 0.00 0.00 PERS Health Net SmartCare Single 642.71 642.71 0.00 0.00 Two- Party 1,285.42 1,015.00 270.42 124.81 Family 1,671.05 1,525.00 146.05 67.41 PERS Kaiser Single 628.63 628.63 0.00 0.00 Two- Party 1,257.26 1,015.00 242.26 111.81 Family 1,634.44 1,525.00 109.44 50.51 PERS UnitedHealthcare Single 646.65 646.65 0.00 0.00 Two- Party 1,293.30 1,015.00 278.30 128.45 Family 1,681.29 1,525.00 156.29 72.13 PERS Choice Single 721.11 700.00 21.11 9.74 Two- Party 1,442.22 1,015.00 427.22 197.18 Family 1,874.89 1,525.00 349.89 161.49 PERS Select Single 462.71 462.71 0.00 0.00 Two- Party 925.42 925.42 0.00 0.00 Family 1,203.05 1,203.05 0.00 0.00 715 PERS Care Single 907.29 700.00 207.29 95.67 Two- Party 1,814.58 1,015.00 799.58 369.04 Family 2,358.95 1,525.00 833.95 384.90 PORAC Single 774.00 700.00 74.00 34.15 Two- Party 1,623.00 1,015.00 608.00 280.62 Family 2,076.00 1,525.00 551.00 254.31 Delta Dental PPO Single 56.00 42.88 13.12 6.06 Two- Party 104.60 81.82 22.78 10.51 Family 137.90 116.36 21.54 9.94 Delta Care HMO Single 30.11 23.00 7.11 3.28 Two- Party 51.19 39.11 12.08 5.58 Family 78.29 59.81 18.48 8.53 VSP Vision Single 23.33 17.58 5.75 2.65 Two- Party 23.33 17.58 5.75 2.65 Family 23.33 17.58 5.75 2.65 Medical Opt Out Benefit: $700.00 per month ($323.08 bi -weekly) Effective the beginning of the pay period including July 1, 2019, the cost of the single party premium up to a maximum of $700.00 per month ($323.08 bi-weekly). Effective the beginning of the pay period including July 1, 2020 the cost of the single party premium up to a maximum of $800.00 per month ($369.23 bi -weekly). CalPERS PEMHCA 2019 employer contribution = $136.00 per month, $62.77 bi -weekly Employee and City contributions subject to change as a result of contract negotiations Other Southern California Region: Fresno, Imperial, Inyo, Kern, Kings, Madera, Riverside, Orange, San Diego, San Luis Obispo, Santa Barbara, Tulare 2019 Health Premiums and Contributions LA Region - Effective 07/01/2019 HBFA 716 Plan Tier Monthly Premium Employer Monthly Contribution Employee Monthly Contribution Employee Bi-Weekly Contribution PERS Anthem HMO Select Single 627.07 627.07 0.00 0.00 Two- Party 1,254.14 1,015.00 239.14 110.37 Family 1,630.38 1,525.00 105.38 48.64 PERS Anthem HMO Traditional Single 878.48 700.00 178.48 82.38 Two- Party 1,756.96 1,015.00 741.96 342.44 Family 2,284.05 1,525.00 759.05 350.33 PERS Blue Shield Access+ Single 669.75 669.75 0.00 0.00 Two- Party 1,339.50 1,015.00 324.50 149.77 Family 1,741.35 1,525.00 216.35 99.85 PERS Health Net Salud y Mas Single 356.50 356.50 0.00 0.00 Two- Party 713.00 713.00 0.00 0.00 Family 926.90 926.90 0.00 0.00 PERS Health Net SmartCare Single 584.27 584.27 0.00 0.00 Two- Party 1,168.54 1,015.00 153.54 70.86 Family 1,519.10 1,519.10 0.00 0.00 PERS Kaiser Single 618.64 618.64 0.00 0.00 Two- Party 1,237.28 1,015.00 222.28 102.59 Family 1,608.46 1,525.00 83.46 38.52 PERS UnitedHealthcare Single 669.61 669.61 0.00 0.00 Two- Party 1,339.22 1,015.00 324.22 149.64 Family 1,740.99 1,525.00 215.99 99.69 PERS Choice Single 654.50 654.50 0.00 0.00 Two-Party 1,309.00 1,015.00 294.00 135.69 Family 1,701.70 1,525.00 176.70 81.55 PERS Select Single 420.77 420.77 0.00 0.00 Two- Party 841.54 841.54 0.00 0.00 Family 1,094.00 1,094.00 0.00 0.00 PERS Care Single 843.78 700.00 143.78 66.36 Two- Party 1,687.56 1,015.00 672.56 310.41 717 Family 2,193.83 1,525.00 668.83 308.69 PORAC Single 774.00 700.00 74.00 34.15 Two- Party 1,623.00 1,015.00 608.00 280.62 Family 2,076.00 1,525.00 551.00 254.31 Delta Dental PPO Single 56.00 42.88 13.12 6.06 Two- Party 104.60 81.82 22.78 10.51 Family 137.90 116.36 21.54 9.94 Delta Care HMO Single 30.11 23.00 7.11 3.28 Two- Party 51.19 39.11 12.08 5.58 Family 78.29 59.81 18.48 8.53 VSP Vision Single 23.33 17.58 5.75 2.65 Two- Party 23.33 17.58 5.75 2.65 Family 23.33 17.58 5.75 2.65 Medical Opt Out Benefit: $700.00 per month ($323.08 bi -weekly) Effective the beginning of the pay period including July 1, 2019, the cost of the single party premium up to a maximum of $700.00 per month ($323.08 bi - weekly). Effective the beginning of the pay period including July 1, 2020 the cost of the single party premium up to a maximum of $800.00 per month ($369.23 bi- weekly). CalPERS PEMHCA 2019 employer contribution = $136.00 per month, $62.77 bi -weekly Employee and City contributions subject to change as a result of contract negotiations Los Angeles Area Region: Los Angeles, San Bernardino, Ventura In no event shall the employee be entitled to the difference between the employer contribution and the premiums for insurance plan(s) selected by the employee. 718 C. Public Employees’ Medical and Hospital Care Act (PEMHCA) OPTION – The City contracts with CalPERS to provide medical benefits to bargaining unit members in accordance with the Public Employees' Medical and Hospital Care Act (PEMHCA). The City contracts for the unequal method of employee contribution in accordance with Government Code section 22893. D. Medical Opt-Out - If an employee is covered by a group health insurance outside of a City- provided program (evidence of which must be supplied to the Employee Benefits Division the employee may elect to discontinue City health insurance coverage and receive two hundred and thirty dollars and seventy-seven cents ($230.77) bi-weekly (effective the beginning of pay period following Council approval of this MOU, the cost of the single party premium up to a maximum of $600.00 per month ($276.92 bi-weekly). Effective the beginning of the pay period including July 1, 2019, the cost of the single party premium up to a maximum of $700.00 per month ($323.08 bi-weekly). Effective the beginning of the pay period including July 1, 2020 the cost of the single party premium up to a maximum of $800.00 per month ($369.23 bi-weekly) to deposit into the employee’s deferred compensation account or any other pre-tax program offered by the City. In order to be eligible for the opt-out payment the employee must be able to demonstrate to the City’s satisfaction that they have minimum essential coverage as defined by the Affordable Care Act, (through another source other than coverage in the individual market, whether or not obtained through Covered California) and will not incur penalties under the ACA. E. Section 125 Plan – Employees shall be eligible to participate in a City approved Internal Revenue Code Section 125 Flexible Spending Plan under the same terms and conditions as all other eligible City employees. This plan allows employees to use pre-tax salary to pay for regular childcare, adult dependent care and/or non-reimbursable medical expenses up to maximums provided by law. F. Life and Accidental Death and Dismemberment: 1. Life – The City shall provide a $50,000 (fifty thousand dollars) Life Insurance plan for each employee. 2. Accidental Death and Dismemberment – The City shall provide a fifty thousand dollars ($50,000) Accidental Death and Dismemberment Insurance plan for each employee. G. Long Term Disability – The City shall pay to the Association on behalf of each employee covered by this MOU, on a monthly basis, an amount not to exceed thirty-eight dollars ($38.00) per member for a Long Term Disability policy. The program shall be subject to the terms and conditions contained in Exhibit E. H. Retiree Medical Coverage for Retirees Not Eligible for the City Medical Retiree Subsidy Plan Employees who retire from the City after January 1, 2004, are granted a retirement allowance by the California Public Employees’ Retirement System and are not eligible for the City’s Retiree Subsidy Medical Plan, may choose to participate in any health insurance plans available to all active employees in this bargaining unit until the first of the month in which they turn age sixty-five (65). The retirees shall pay the full premium for any - health insurance for themselves and/or qualified dependents without any City subsidy. 719 Employees who retire from the City, receive a retirement allowance from the California Public Employees’ Retirement System, are not eligible for the City’s Retiree Subsidy Medical Plan and choose not to participate in City medical insurance plans available to eligible retirees in this bargaining unit upon retirement, will permanently lose eligibility for this insurance. However, if a retiree who is not eligible for the City’s Retiree Subsidy Medical Plan chooses not to participate in available medical insurance plans because the retiree has access to other group medical insurance, and subsequently loses eligibility for that group medical insurance, the retiree and their qualified dependents will have access to medical insurance plans available to retirees eligible for reinstatement. Eligibility for Retiree Medical Coverage terminates the first of the month in which the retiree or qualified dependent turns age sixty-five (65). I. Post-65 Supplemental Medicare Coverage - Retirees who are participating in the Retiree Subsidy Medical Plan as of January 1, 2004 and all future retirees who meet the criteria to participate in available medical insurance, with or without the Retiree Medical Subsidy Plan, may participate in available medical insurance plans that are supplemental to Medicare. A retiree or qualified dependent must choose to participate in available medical insurance plans that are supplemental to Medicare beginning the first of the month in which the retiree or qualified dependent turns age sixty-five (65). The retiree shall pay the full premium to participate in available medical insurance plans that are supplemental to Medicare for themselves or qualified dependents without any City subsidy. Retirees or qualified dependents, upon turning age 65, who choose not to participate in available medical insurance plans that are supplemental to Medicare permanently lose eligibility for this insurance. J. Miscellaneous: 1. Nothing in this Article shall be deemed to restrict the City’s right to change insurance carriers should circumstances warrant. 2. Nothing in this Article shall be deemed to obligate the City to improve the benefits outlined in this Article. 3. Whenever an eligible employee is absent because of illness or injury, the City shall continue to provide to the employee and his/her dependents, all of the insurance benefits set forth in this Article for the duration of any such approved absence not to exceed twenty-four (24) months. ARTICLE IX – RETIREMENT A. Benefits: 1. Public Employees’ Retirement System: 720 a. The City shall provide all safety employees described as “classic members by the Public Employees’ Pension Reform Act of 2013 – “PEPRA” with that certain retirement program commonly known and described as the “3%” at age 50 plan” which is based on the retirement formula as set forth in the California Public Employees’ Retirement System (PERS), Sections 21362.2 of the California Government Code, including the one-half continuance option (Government Code Sections 21624 and 21626) for safety employees and the Fourth Level of the 1959 survivor option for all employees as established by the California Public Employees’ Retirement System, Section 21571 of the California Government Code. b. All “classic members” shall pay their CalPERS member contribution of nine percent (9%) of pensionable income. Effective the beginning of the pay period following City Council approval of this MOU, all classic members shall pay three percent (3%) additional compensation earnable as employer cost sharing in accordance with Gov ernment Code section 20516(f) – for an employee pension contribution of twelve percent (12%). The parties agree that this cost sharing agreement per Government Code section 20516(f) shall continue after the expiration of this MOU unless/until otherwise negotiated to either an agreement (in a successor MOU) or the expiration of the impasse process by the parties. c. The City contracts with PERS to have retirement benefits calculated based upon the employee’s highest one year’s compensation, pursuant to the provisions of Section 20042 (highest single year). This benefit is available to “classic members” of CalPERS. d. The obligations of the City and the retirement rights of employees as provided in this Article shall survive the term of this MOU. e. The City provides the Pre-Retirement Optional Settlement 2 Death Benefit as set forth in California Government Code Section 21548 for all safet y employees represented by the Association. f. For “New Members” within the meaning of the California Public Employees’ Pension Reform Act of 2013. 1) New Members shall be governed by the two and seven tenths percent at age 57 (2.7% @ 57) retirement formula set forth in Government Code section 7522.25(d) 2) Final compensation will be based on the highest annual average compensation earnable during the 36 consecutive months immediately preceding the effective date of his or her retirement, or some other 36 consecutive month period designated by the member as required by Government Code section 7522.32(a). 721 3) New members shall contribute one half of the normal cost rate, as established by CalPERS. 3) Effective the beginning of the pay period following City Council approval of this MOU, all new members shall, pay at least twelve percent (12%) of pensionable compensation as their retirement contribution. If the required contribution per PEPRA (half the normal cost) is less than twelve percent (12%), employees shall pay the difference between the required PEPRA contribution and twelve percent (12%) as cost sharing per Government Code section 20516(f). If the required PEPRA contribution is at least twelve percent (12%) or more, new members will pay the required PEPRA contribution. g.4) The City has adopted the CalPERS Resolution in accordance with IRS Code section 414(h)(2) to ensure that both the employee contribution and the City pickup of the required member contribution are made on a pre-tax basis. However, ultimately, the tax status of any benefit is determined b y the law. h.g. Reporting of Base Salary – Provisions of the Level Pay plan, Article VII.C, shall be used for purposes of reporting the bi-weekly pay of twenty-four (24) hour shift employees to the Public Employees’ Retirement System (PERS). 2. Self-Funded Supplemental Retirement Benefit: a. In the event a member elects Option #1, #2, #2W, #3, #3W or #4 of the Public Employees’ Retirement Law, the City shall pay the difference between such elected option and the unmodified allowance which the member would have received for his/her life alone as provided in California Government Code sections 21455, 21456, 21457, and 21548 as said referenced Government Code sections exist as of the date of this agreement. This payment shall be made only to the member, shall be payable by the City during the life of the member, and upon that member’s death, the City’s obligation shall cease. The method of funding this benefit shall be the sole discretion of the City. This benefit is vested for employees covered by this MOU. b. Employees hired on or after October 4, 1999, shall not be eligible for the “Supplemental Retirement Benefit” referenced in Article IX.A.2a above. 3. Medical Insurance for Retirees: a. Upon retirement, whether service or disability, each employee shall have the following options in regards to medical insurance under available plans: 1) With no change in benefits, retirees can stay in any of the plans offered by the City, to active members in this bargaining unit, at the retiree’s own expense, for the maximum time period required by Federal Law (COBRA), or 2) Early retirees (under age 65) may participate in the available health plans currently being offered to active employees. 722 3) Retirees over age 65 may participate in the Post-65 Supplemental Medicare Coverage described in Article VIII.I. b. Retired employees exercising either of the options in Article IX.A.3.a may cause any premiums not paid by the City to be paid out of funds due and owed to them for unused sick leave benefits upon retirement, as provided in Article IX.A.3.a. However, whenever a retired employee does not have any such available funds, he/she shall have the opportunity to provide the City with sufficient funds to pay the premiums. At retirement, the sick leave hours remaining may, at the employee’s option, be converted to a dollar figure, as provided in Article IX.A.3.a, and an estimate shall be provided by the City to the retired employee as to the approximate number of months the group insurance can be paid by such sick leave dollars. The City shall notify any retired employee whose funds available for unused sick leave benefits are about to be exhausted of such fact, in writing by certified mail, return receipt requested, at the retired employee’s most recent address of record with the City no later than three (3) months prior to the date upon which there will not be sufficient funds to pay premiums. It shall be the individual retiree’s responsibility either to insure that there are sufficient sick leave dollars available to pay premiums or to make premium payments at least one (1) month in advance, to continue the group insurance in effect. If following exhaustion of sick leave funds a retired employee fails to provide the City with sufficient additional funds to pay premiums, the City shall have the right to notify said retired employee in the manner prescribed above that it intends to cause his/her coverage to be terminated for non-payment of premiums, and the further right to terminate such coverage, if such default has not been cured within thirty (30) days following receipt of such notice. Any retired employee electing to obtain such medical coverage after retirement shall have no further option to terminate such coverage following the provision of thirty (30) days written notice to the City, whereupon any funds due and owed to him/her for unused sick leave benefits that have not been exhausted to pay these health insurance premiums shall be paid in a lump sum to the retired employee within thirty (30) days following receipt by the City of such notice. Once a retired employee elects to terminate such coverage, he/she shall be precluded from securing it at a later date at the group rate. B. Reinstatement Privileges for Disability Retirees – If a retiree seeks to cause PERS to revoke his/her disability retirement (within three years of the effective date of the disability retirement) on the grounds that he/she is no longer incapacitated from performing the duties of the position held at the time of retirement, the City will not certify that he/she is no longer incapacitated from performing those duties until the employee passes the Departmental physical agility test. If PERS revokes his/her disability retirement, the City shall immediately reinstate the employee at his/her former position and pay step. 723 ARTICLE X – LEAVE BENEFITS A. Leave with Pay: 1. Vacation – The purpose of annual vacation is to provide a rest period, which will enable each employee to return to work physically and mentally refreshed. All employees shall be entitled to annual vacation, with pay, in accordance with this Article. A.a. Accrual – Employees shall accrue annual vacations at their appropriate assigned work schedule rate, either forty hour (40) or fifty-six hour (56) workweek. Paychecks will identify the accrued vacation (Accrued) and accrual rate (Constant) based on their actual work schedule, either a forty (40) hour or fifty-six (56) hour schedule. In the event of a change in work schedules, personnel will have their accrued vacation (Accrued) and accrual rate (Constant) changed to the new schedule using th e conversion factor .7143 (40  56). Personnel who change from a fifty-six (56) hour schedule to a forty (40) hour schedule shall multiply the existing hours by .7143, (see Exhibit G). Personnel who change from a forty (40) hour schedule to a fifty-six (56) hour schedule shall divide their existing hours by .7143. Personnel shall accrue annual vacations at the following rates1: For the first four (4) years of continuous service vacation time shall be accrued at the rate of one hundred and twelve (112) hours per year for forty (40) hour per week employees, and one hundred and fifty-seven (157) hours per year for fifty-six (56) hour per week employees. After four (4) years of continuous service to the completion of nine (9) years of continuous service, vacation time shall be accrued at the rate of one hundred thirty- six (136) hours per year for forty (40) hour per week employees, and one hundred and ninety (190) hours per year for fifty-six (56) hour per week employees. After nine (9) years of continuous service to the completion of fourteen (14) years of continuous service, vacation time shall be accrued at the rate of one hundred sixty (160) hours per year for forty (40) hour per week employees, and two hundred and twenty-four (224) hours per year for fifty-six (56) hour per week employees. After fourteen (14) years of continuous service vacation, time shall be accrued at the rate of one hundred ninety-two (192) hours per year for forty hour (40) per week employees, and two hundred sixty-nine (269) hours per year for fifty-six hour (56) per week employees. Vacation allowance shall not be accumulated in excess of three hundred forty-two (342) hours for forty (40) hour per week employees, and four hundred and eighty (480) hours per year for fifty-six (56) hour per week employees. B.b. Eligibility and Permission – No vacation may be taken until the completion of six (6) months of employment. No employee shall be permitted to take vacation in excess 1 For a detailed explanation regarding conversion refer to Exhibit F 724 of actual time earned and no employee shall take vacation that is being accrued while the employee is on vacation. Vacations shall be taken only with permission of the Fire Chief or his/her sworn designee, who shall schedule all vacations with due consideration for the request of the employee and particular regard for the need of the Department. The Fire Department operates on a three-shift basis, with personnel being assigned to the “A, B or C” Shift for work scheduling purposes. On each such shift, there shall be four (4) available vacation absences (referred to as “vacation slots”). That is, at any one time, there may be four (4) persons absent from duty on each such shift due to vacation. These slots shall be made available by rank, one (1) to Firefighters, one (1) to Fire Engineers, one (1) to Firefighter Paramedics; and one (1) to Captains. Thereafter, each additional employee shall be entitled to receive time off for requested vacation leave, so long as a qualified replacement is available to serve in his/her absence. c. Conversion to Cash – Until December 31, 2018, Oon two (2) occasions during each fiscal year each employee shall have the option to convert into a cash payment up to a total of eighty (80) hours, at the forty (40) hour rate, or one hundred twelve (112) hours at the fifty-six (56) hour rate, of earned vacation benefits during any one (1) fiscal year. The employee shall give two (2) weeks advanced notice of his/her desire to exercise such option. Effective for calendar year 2019 and every year thereafter the previous paragraph is eliminated and the following shall apply: By December 15 (the first year being 2018) of each year, an employee may make an irrevocable election to cash out up eighty (80) hours (for employees assigned to the 40 hour workweek) at the 40 hour rate, or one hundred and twelve (112) hours (for employees assigned to the 24 hour suppression shift) at the 56 hour rate, which will be earned in the following calendar year. In the following year, the employee can receive the cash for the vacation he/she irrevocably elected to cash out in either two (2) equal increments of half of what he/she elected to cash out or one (1) increment of up the maximum they elected to cash out. The employee would be paid one half of what he/she irrevocably elect to cash out on both the second pay day in July and the first pay day on December or the employee can elect to be paid the full amount he/she elected to cash out on the first pay day in December. However, if the employee’s vacation balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of vacation the employee has accrued at the time of the cash out. If an employee makes an irrevocable election to cash out vacation in the following calendar year and uses vacation in that subsequent year, the vacation used will come from vacation the employee had earned prior to January 1 of the year the employee has elected to cash out vacation. This is to ensure that assuming an employee had a vacation balance prior to January 1, the vacation used will not result in a reduction in the amount of vacation the employee will be eligible to cash out. 725 In addition to the above, starting in calendar year 2019, an employee who has an “unforeseen emergency” (defined as an unanticipated emergency that is caused by an event beyond the control of the employee and that would result in severe financial hardship to the employee if early withdrawal were not permitted) shall be entitled to make a request to the Director of Human Resources for a payoff of accrued vacation. The amount of vacation which may be paid off is limited to the amount necessary to meet the emergency. The maximum payoff the employee can receive for an emergency is limited to eighty (80) for forty hour employees and 112 hours for 56 hour employees. In addition to the employee’s election to cash out vacation, any Vvacation accumulated in excess of three hundred-forty-two (342) hours at the forty (40) hour rate shall be paid in cash at the straight time forty (40) hour rate, or four hundred and eighty (480) hours at the fifty-six (56) hour rate shall be paid in cash at the straight time fifty-six (56) hour rate on the first payday following such accumulation. The parties agree that during the term of this MOU, either party can reopen negotiations on the limited subject of when, during the year, an employee may make an election to convert vacation to cash. Any agreement must be mutually agreed to by the parties. 1.d. Pay-Off at Termination – Except as provided in Section A.1.c. of this Article, no employee shall be paid for unused vacation other than upon termination of employment. Any vacation pay off at termination shall be at the regular rate of pay and the accrual rate the employee is earning at the time of separation. 1.2. Sick Leave: a. Accrual – The conversion factor for sick leave accrual shall be in accordance with Rule 18-9 of the City’s Personnel Rules. Employees covered by this MOU shall accrue sick leave at the rate of 3.6923 hours per pay period for 40-hour week employees, and 5.1691 for fifty-six hour (56) week employees. Paychecks will identify the accrued sick leave (Accrued) and accrual rate (Constant) based on their actual work schedule, either a forty (40) hour or fifty-six (56) hour schedule. In the event of a change in work schedules, personnel will have their accrued sick leave (Accrued) and accrual rate (Constant) changed to the new schedule using the conversion factor .7143. Personnel who change from a fifty-six hour (56) schedule to a forty (40) hour schedule shall multiply their accrual rate by .7143, (see Exhibit FG). Personnel who change from a forty (40) hour schedule to a fifty-six (56) hour schedule shall divide their accrual rate by .7143. b. Pay-Off at Termination – Upon termination for reasons other than for industrial disability retirement, an employee shall have his/her accrued sick leave paid at the regular rate of pay and the accrual rate the employee is earning at the time of separation. Sick Leave shall be paid (or have paid on his/her behalf as provided in Article IX.A.3.b) at twenty-five percent (25%) of unused, earned sick leave from four hundred-eighty (480) through seven hundred-twenty (720) hours, and at fifty percent (50%) of all unused, earned sick leave for hours in excess of seven hundred-twenty (720) hours. 726 Upon termination for industrial disability retirement, an employee shall have his/her accrued sick leave paid (or have paid on him/her behalf as provided in Article IX.A.3.b) at the regular rate of pay and the accrual rate at the time of separation at twenty-five percent (25%) of unused, earned sick leave from zero (0) through four hundred-eighty (480) hours, and at fifty percent (50%) of all unused, earned sick leave in excess of four hundred-eighty (480) hours. c. Utilization in Conjunction with Industrial Disability Leave – Sick leave cannot be used to extend absences due to work-related (industrial) injuries or illnesses. 2.3. Leave Benefit Entitlements - As required by law, employees will be allowed to use up to one-half of their annual Sick Leave accrual for family sick leave, pursuant to the provisions of California Labor Code Section 233. The City shall comply with all state and federal leave benefit entitlement laws and regulations. An eligible employee on an approved leave may be allowed to use earned Sick Leave, Vacation and/or Compensatory Time Off. 3.4. Bereavement - Employees shall be entitled to bereavement leave not to exceed two (2) work shifts for those employees on the twenty-four (24) hour work schedule, or three (3) work shifts for all other employees in each instance of death in the immediate family. Immediate family is defined as father, mother, sister, brother, spouse, children, registered domestic partner; grandfather, grandmother, step-father, step-mother, step- grandfather, step-grandmother, grandchildren, stepsisters, step-brothers, mother-in-law, father-in-law, in-laws of registered domestic partner, brother-in-law, sister-in-law, son- in-law, daughter in-law, step-children, or wards of which the employee is the legal guardian. 4.5. Association Business – During the term of this MOU, authorized representatives of the Association shall be entitled to receive up to a total of four hundred (400) collective hours without any loss of compensation per contract year to be utilized for lawful Association activities. In addition, up to one hundred-fifty (150) unused hours may be carried forward to the next contract year. ARTICLE XI – CITY RULES B.A. Personnel Rules - All MOU provisions that supersede the City’s Personnel Rules shall automatically be incorporated in the City’s Personnel Rules. C.B. Precedence of Agreement - In any case in which any provision of this MOU is inconsistent with any City ordinance, rule, regulation, resolution, including provisions of any Fire Department Manual, the provisions of this MOU shall supersede and take precedence. D.C. Discipline - The procedure and practice regarding discipline is set forth in Exhibit H. 727 E.D. Layoff Rules - The procedure and practice regarding layoffs as contained in the City’s Personnel Rules in effect on July 1, 1980 shall remain in full force and effect during the entire term of this MOU. ARTICLE XII - MISCELLANEOUS a.A. Fire Department Promotional Exams – Policy D-10 – Promotional and open competitive examinations shall be held in accordance with the most current Policy D-10 of the Huntington Beach Fire Department Organization Manual executed by the parties. Policy D -10 may be modified by mutual agreement of the parties at any time during the term of this MOU. Either party may request to meet and confer during the MOU on Policy D-10. b.B. Living Quarters – The City shall provide necessary kitchen, living and sleeping quarters in all fire stations and shall continue to provide facilities for Association meetings. c.C. Paychecks: 1. Bi-Weekly Pay – Salary shall be paid on a bi-weekly basis. By mutual consent of the City and the Association, early payment and other modifications may be made. 2. Paycheck Stub An on-line pay stub shall contain an itemization of amounts paid under various categories of pay, including educational incentive pay, holiday pay, and all overtime, and shall also include an itemization of the nature and the purpose of each deduction withheld from the employee’s gross earnings. 3. Direct Deposit – Employees hired on or after January 1, 2007 shall receive their bi-weekly compensation through the City’s direct deposit system. Employees currently participating in the City’s direct deposit program must remain in that program. 4. Vacation Payroll Advance – Each employee shall, at his/her option, by written notice to the City’s Human Resources Director, be given at least two (2) weeks prior to the commencement of said employee’s scheduled vacation, be entitled to receive his/her earned vacation pay, less deductions in advance of said vacation. Said right to receive advance payment of earned vacation pay shall be limited to one such advancement during each calendar year. D. California Driver License for Firefighting Equipment – Employees required by the City to obtain a valid Class A, Class B or Class C California driver license with firefighter endorsement or Class B restrictive California driver license will be reimbursed for fees paid to the California Department of Motor Vehicles to obtain the Driver License with Firefighter Endorsement. All employees in the classification of Fire Engineer shall be required to possess a valid Class A, Class B or Class C California driver license with firefighter endorsement or Class B restrictive California driver license. All other bargaining unit employees shall be required to obtain the following: 728 All employees hired after February 19, 2008, must acquire a valid Class A, Class B or Class C California driver license with firefighter endorsement or Class B restrictive California driver license prior to completing their probationary period. All employees assigned to the USAR team who possess a valid Class A, Class B or Class C California driver license with firefighter endorsement or Class B restrictive California driver license as of the program’s implementation date shall be required to maintain their license. All current employees assigned to the USAR team prior to the program’s implementation date are not required to have a Firefighter Endorsed Driver License. All current employees assigned to the USAR team after the program’s implementation shall obtain and maintain a valid Class A, Class B or Class C California driver license with firefighter endorsement within one (1) year of their assignment. All employees assigned to the Hazardous Materials team who possess a valid Class A, Class B or Class C California driver license with firefighter endorsement or Class B restrictive California driver license shall maintain their license. All employees assigned to the Hazardous Materials team prior to February 19, 2008, are not required to obtain a Firefighter Endorsed Driver License. All current employees assigned to the Hazardous Materials team after February 19, 2008 shall obtain and maintain a valid Class A, Class B or Class C California driver license with firefighter endorsement or Class B restrictive California driver license within one (1) year of their assignment. E. Deferred Compensation Loan Program – Employees may utilize the Deferred Compensation Loan Program, under which employees may borrow up to fifty percent (50%) of their deferred compensation funds for critical needs such as medical costs, college tuition, or purchase of a home. The value of any unused earned leave benefits may be transferred to deferred compensation in connection with separation but the employee must request the transfer no later than the pay period prior to the employee’s last day of employment. E. Requirement to Live Within 150 Miles - to provide a reasonable response time in case of an emergency call back, effective on the first day following City Council approval of this 2018- 2021 MOU all members of the bargaining unit must live within a 150 miles of the Central Net Training Center, 18301 Gothard Street[SA2]. ARTICLE XIII – MANAGEMENT RIGHTS Except as expressly abridged or modified herein, the City retains all rights, powers, and authority with respect to the management and direction of the performance of fire services and the work forces performing such services. Such rights include, but are not limited to, determination of the merits, necessity, level or organization of fire services, the necessity for overtime, number and location of work stations, nature of work to be performed, contracting for any work or operation, reasonable employee performance standards, including work and safety rules and regulations, in order to maintain the efficiency and economy desirable for the performance of City services. ARTICLE XIV – TERM OF MOU 729 This MOU shall be in effect commencing on July 1, 20187 through June 30, 202118. This MOU constitutes the entire agreement of the parties as to the changes in wages, hours, and other terms and conditions of employment of employees covered hereunder for the term hereof. 730 ARTICLE XV - CITY COUNCIL APPROVAL It is the understanding of the City and the Association that this Memorandum of Understanding is of no force or effect whatsoever unless and until ratified by the membership of HBFA and adopted by Resolution of the City Council of the City of Huntington Beach. ARTICLE XVI – SUCCESSOR NEGOTIATIONS The parties agree to commence labor negotiations for a successor MOU no later than April 1, 202118. At that meeting, the parties shall discuss ground rules and meeting dates. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding this ______ day of _____________, 20187. CITY OF HUNTINGTON BEACH A Municipal Corporation 0B0B0BHUNTINGTON BEACH FIREFIGHTERS’ ASSOCIATION. By: By: Fred A. Wilson City Manager Chad Stewart HBFA President By: By: Michele Warren Director of Human Resources Carl Corbin HBFA Negotiation Team Leader – HBFA By: By: David Segura Fire Chief Stuart D. Adams Esq. Chief Negotiator By: Peter J. Brown Chief Negotiator By: JoAnn Diaz Principal Human Resources Analyst APPROVED AS TO FORM By: By: Sandy Henderson Senior Human Resources Analyst Michael E. Gates City Attorney 731 7.3 Human Resources Officer Motion of Unit Modification – The Human Resources Officer may propose, during the same period for filing a Petition for Decertification, that an established unit be modified in accordance with the following procedure: a. The Human Resources Officer shall give written notice of the proposed unit modification to all employee organizations that may be affected by the proposed change. Said written notification shall contain the Human Resources Officer’s rationale for the proposed change including all information which justifies the change pursuant to the criteria established in Section 6-5 for Appropriateness of Units. Additionally, the Human Resources Officer shall provide all affected employee organizations with all correspondence, memoranda, and other documents, which relate to any input regarding the unit modification which may have been received by the City or from affected employees and/or sent by the City to affected employees; b. Following receipt of the Human Resources Officer’s proposal for unit modification, any affected employee organization shall be afforded not less than thirty (30) days to receive input from its members regarding the proposed change and to formulate a written and/or oral response to the motion for unit modification to the Personnel Commission; c. The Personnel Commission shall conduct a noticed Public Hearing regarding the motion for unit modification at which time all affected employee organizations and other interested parties shall be heard. The Personnel Commission shall make a determination regarding the proposed unit modification which determination may include a granting of the motion, a denying of the motion, or other appropriate orders relating to the appropriate creation of bargaining units. Following the Personnel Commission’s determination of the composition of the appropriate unit or units, it shall give written notice of such determination to all affected employee organizations; d. Any party who chooses to appeal from the decision of the Personnel Commission is entitled to appeal in accordance with the provision of Section 14-4 of Resolution Number 3335. 732 2.0% Effective September 24, 2016 40-Hour Rate (Hourly) Job Code Classification Pay Grade A B C D E 229 Firefighter FA0229 34.97 36.88 38.90 41.04 43.30 160 Fire Engineer FA0160 40.80 43.04 45.41 47.91 50.54 226 Firefighter Paramedic FA0226 40.80 43.04 45.41 47.91 50.54 101 Fire Captain FA0101 46.91 49.49 52.21 55.08 58.11 100 Administrative Fire Captain FA0100 52.35 55.22 58.26 61.47 64.84 40-Hour Rate (Bi-Weekly) Job Code Classification Pay Grade A B C D E 229 Firefighter FA0229 2,797.60 2,950.40 3,112.00 3,283.20 3,464.00 160 Fire Engineer FA0160 3,264.00 3,443.20 3,632.80 3,832.80 4,043.20 226 Firefighter Paramedic FA0226 3,264.00 3,443.20 3,632.80 3,832.80 4,043.20 101 Fire Captain FA0101 3,752.80 3,959.20 4,176.80 4,406.40 4,648.80 100 Administrative Fire Captain FA0100 4,188.00 4,417.60 4,660.80 4,917.60 5,187.20 40-Hour Rate (Monthly) Job Code Classification Pay Grade A B C D E 229 Firefighter FA0229 6,061.47 6,392.53 6,742.67 7,113.60 7,505.33 160 Fire Engineer FA0160 7,072.00 7,460.27 7,871.07 8,304.40 8,760.27 226 Firefighter Paramedic FA0226 7,072.00 7,460.27 7,871.07 8,304.40 8,760.27 101 Fire Captain FA0101 8,131.07 8,578.27 9,049.73 9,547.20 10,072.40 100 Administrative Fire Captain FA0100 9,074.00 9,571.47 10,098.40 10,654.80 11,238.93 733 2.0% Effective September 24, 2016 56-Hour Rate (Hourly) Job Code Classification Pay Grade A B C D E 229 Firefighter FA0229 24.97 26.34 27.80 29.31 30.93 160 Fire Engineer FA0160 29.14 30.74 32.44 34.22 36.11 226 Firefighter Paramedic FA0226 29.14 30.74 32.44 34.22 36.11 101 Fire Captain FA0101 33.50 35.35 37.29 39.34 41.51 100 Administrative Fire Captain FA0100 37.39 39.44 41.62 43.91 46.32 56-Hour Rate (Bi-Weekly) Job Code Classification Pay Grade A B C D E 229 Firefighter FA0229 2,796.64 2,950.08 3,113.60 3,282.72 3,464.16 160 Fire Engineer FA0160 3,263.68 3,442.88 3,633.28 3,832.64 4,044.32 226 Firefighter Paramedic FA0226 3,263.68 3,442.88 3,633.28 3,832.64 4,044.32 101 Fire Captain FA0101 3,752.00 3,959.20 4,176.48 4,406.08 4,649.12 100 Administrative Fire Captain FA0100 4,187.68 4,417.28 4,661.44 4,917.92 5,187.84 56-Hour Rate (Monthly) Job Code Classification Pay Grade A B C D E 229 Firefighter FA0229 6,059.39 6,391.84 6,746.13 7,112.56 7,505.68 160 Fire Engineer FA0160 7,071.31 7,459.57 7,872.11 8,304.05 8,762.69 226 Firefighter Paramedic FA0226 7,071.31 7,459.57 7,872.11 8,304.05 8,762.69 101 Fire Captain FA0101 8,129.33 8,578.27 9,049.04 9,546.51 10,073.09 100 Administrative Fire Captain FA0100 9,073.31 9,570.77 10,099.79 10,655.49 11,240.32 734 An employee who has retired from the City shall be entitled to participate in the available medical insurance plans and the City shall contribute toward monthly premiums for coverage in an amount as specified in accordance with this plan, provided: d.A. At the time of retirement the employee has a minimum of ten (10) continuous years of regular (permanent) City service immediately prior to retirement or is granted an industrial disability retirement. Said service must be continuous unless prior service is reinstated at the time of his/her rehire in accordance with the City’s Personnel Rules; and e.B. At the time of retirement, the employee is employed by the City; and f.C.Following official separation from the City, the employee is granted a retirement allowance by the California Public Employees’ Retirement System. The City’s obligation to pay the monthly premium, as indicated, shall be modified downward or cease during the lifetime of the retiree upon the occurrence of any one of the following: a.1. On the first of the month in which a retiree or dependent reaches age 65 or on the date the retiree or dependent can first apply and become eligible, automatically or voluntarily, for medical coverage under Medicare (whether or not such application is made), the City’s obligation to pay monthly premiums may be adjusted downward or eliminated. Benefit coverage at age 65 under the City’s sponsored medical insurance plans shall be governed by applicable plan document. b.2.In the event of the death of any employee, whether retired or not, the amount of the retiree medical insurance subsidy benefit which the deceased employee was receiving at the time of his/her death or would be eligible to receive if he/she were retired at the time of death, shall be paid on behalf of the spouse or dependent(s) for a period not to exceed twelve (12) months. g.D. Industrial Disability Retirees -Industrial disability retirees with less than ten (10) continuous years of regular (permanent) service shall receive a maximum monthly payment toward the premium for health insurance of $121. Payments shall be in accordance with the stipulations and conditions, which exist for all retirees. Payment shall not exceed dollar amount, which is equal to the full cost of premium for employee only. h.E. Maximum Monthly Subsidy Payments - The payment amounts may be reduced each month as dependent eligibility ceases due to death, divorce or loss of dependent child status. However, the amount shall not be reduced if such reduction would cause insufficient funds needed to pay the full premium for the employee and the remaining dependents. In the event no reduction occurs and the remaining benefit premium is not sufficient to pay the premium amount for the employee and the eligible dependents, said needed excess premium amount shall be paid by the employee. All retirees, including those retired as a result of industrial disability whose number of years of continuous regular (permanent) service immediately prior to retirement exceeds ten (10) years, shall be entitled to maximum monthly payment of premiums by the City for each year of completed City service as follows: 735 Maximum Monthly Payment for Retirees After: Years of Service 10 $ 121 11 136 12 151 13 166 14 181 15 196 16 211 17 226 18 241 19 256 20 271 21 286 22 300 23 315 24 330 25 344 i.F. Eligibility: a.1. The effective start-up date of the Retiree Subsidy Medical Plan for the eligible retirees shall be the first of the month following retirement date. b.2.A retiree may change plans, add dependents, etc., during annual open enrollment. The City shall notify covered retirees of this opportunity each year. c.3. Years of service computed for the Retiree Subsidy Medical Plan are actual years of completed continuous regular (permanent) service with the City of Huntington Beach immediately prior to retirement. d.4.When a retiree is eligible for medical plan coverage at the expense of an other employer due to post-retirement employment of the retiree or spouse of the retiree, the retiree and his/her spouse must take that coverage regardless of benefit level and shall be deleted from any City sponsored health insurance Plan. Exceptions to this requirement are limited to the following: a. A retiree is not required to enroll in such “other” medical insurance plan coverage if there is significant disparity between the benefits provided by the “other” medical insurance plan and the City sponsored health insurance plan as defined below. “Significant disparity” means coverage available under the “other” medical plan is restrictive or limited in one or more of the following ways: 1) No in-patient hospitalization coverage. 736 2) No major medical benefits. 3) Annual deductible is greater than or equal to $1,000 per person. 4) Major medical benefits are paid at 60% or less of covered expenses in network. b. The City Manager or designee will have the authority to provide additional exceptions following review of the “other” medical insurance plan policy. Exceptions will be made only if the “other” medical plan benefit provisions are comparable to the guidelines under (F.4.a.) above. c. Miscellaneous Provisions: 1) Benefits provided under the available medical insurance plan will be coordinated with the “other” medical insurance plan as the primary carrier. 2) The City shall have the right to require any retiree to provide a copy of the “other” medical insurance plan policy for review by the City Manager or designee. e.5. When a retiree under age 65 becomes eligible for the other group coverage and then becomes no longer eligible, he/she may have the Retiree Subsidy Medical Plan reinstated for the purchase of available health insurance. f.6. Dependents of a retiree under age 65 may follow him/her into the Retiree Subsidy Medical Plan or they may choose to exercise COBRA rights along with the retiree. g.7.When a retiree becomes 65 and has eligible dependents under 65, said dependents are eligible to exercise COBRA rights. h.8.When a retiree is under 65 and his/her spouse is over 65, the spouse is not covered. j.G.Premium payments are to be received at least one month in advance of the coverage period. Retiree Subsidy Medical Plan and COBRA participants shall be notified of non-payment of premium by means of a certified letter from the City in accordance with provisions of the Memorandums of Understanding. A retiree who fails to pay premiums due for coverage and is in arrears for sixty (60) days shall be terminated from the plan and shall not have reinstatement rights. k.H. Subsidies: a.1. The subsidy payments will pay for: a. Available health insurance plans for eligible retirees. 737 b. Part A of Medicare for those retirees not eligible for paid Part A. b.2.Subsidy payments will not pay for: a. Part B Medicare. b. Any other City sponsored benefit plan. c. Any other commercially available benefit plan. d. Medicare supplements l.I. Medicare: a.1. All persons are eligible for Medicare coverage at age 65. Those with sufficient credit quarters of Social Security will receive Part A of Medicare at no cost. Those without sufficient credited quarters are still eligible for Medicare at age 65, but will have to pay for Part A of Medicare if the individual elects to take Medicare. In all cases, Part B of Medicare is paid for by the participant. b.2.When a retiree and his/her spouse are both 65 or over and neither is eligible for paid Part A of Medicare, the subsidy shall pay for Part A for each of them or the maximum subsidy, whichever is less. c.3. When a retiree at age 65 is eligible for paid Part A of Medicare and his/her spouse is not eligible for paid Part A, the spouse shall not receive subsidy. When a retiree at age 65 is not eligible for paid Part A of Medicare and his/her spouse who is also age 65 is eligible for paid Part A of Medicare, the subsidy shall be for the retiree’s Part A only. m.J. Cancellation: a.1. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply: A.a. Coverage for a retiree under the Retiree Subsidy Medical Plan will be eliminated on the first day of the month in which the retiree reaches age 65 whether or not the retiree applies for Medicare coverage. If such retiree was covering dependents under the Plan, dependents will be eligible for COBRA continuation benefits effective as of first day of the month in which the retiree reaches age 65. B.b. When one of the following occurs, dependent coverage will be eliminated: 1) After 36 months of COBRA continuation coverage, or 2) When the covered dependent reaches age 65 in the event such dependent reaches age 65 prior to the retiree reaching age 65. b.2.Premium payments are to be received at least one month in advance of the coverage period. 738 c.3. A retiree who fails to pay premiums due for coverage and is in arrears for sixty (60) days shall be terminated from the plan and shall not have reinstatement rights. 739 Following is the method of application regarding Tiller C ertification, Article V, Section E-4 of the Huntington Beach Firefighter's Association MOU: Article V, Section E-4-Tiller Certification a. Tiller Certification -- The Huntington Beach Training Manual identifies the method and requirements for Tiller Certification. b. Class A, B, or C California Driver License with a Firefighter Endorsement or Class B Firefighter Restrictive License.--.State Department Of Motor Vehicles established. c. Light Air Unit -- The intent is for a Firefighter to be able to drive, set up, and safely operate the Light Air unit. Proper operation for the Light Air Unit is defined in policy. Note! All Fire Department personnel have been trained in the past in the operation of the Light Air Unit. All Firefighters who were previously trained have been grandfathered into meeting the requirements. This process will provide the following options for compensation: If the Firefighter was Tiller Certified and had a Class B Firefighter Restrictive License as of September 5, 1998, they will receive the identified compensation effective that date.  If, after September 5, 1998, a Firefighter obtains Tiller Certification and the Class A, B or C California Driver’s License with a Firefighter Endorsement or a Class B Firefighter Restrictive Drivers License, they will be eligible for compensation following application. Firefighters will be required to become certified in light air operation.  For Firefighters to request compensation for the Light Air Unit they must complete the appropriate training per policy, including obtaining Tiller Certification, Class A, B or C California Driver’s License with a Firefighter Endorsement or a Class B Firefighter Restrictive Drivers License, and be certified in light air operations. They will be eligible for compensation following application. Note! If a Firefighter elects not to participate in the above mentioned Tiller Certification compensation, it does not preclude the currently established requirement by the Department for a firefighter to be Tiller Certified, as identified in the Huntington Beach Training Manual. 740 This is to memorialize an agreement between the City of Huntington Beach (City) and the Huntin gton Beach Firefighter’s Association (HBFA) regarding authorizing the HBFA to administer its own Long Term Disability (LTD) insurance program providing the following conditions are adhered to: a.1. The City and HBFA agree that the City shall not provide a City-sponsored LTD Insurance Program for employees represented by HBFA. b.2.HBFA shall contract with an insurance provider for LTD insurance for the employees represented by the HBFA. c.3. The City shall pay to HBFA for the cost of LTD premiums not to exceed $38.00 per month per occupied covered position represented by HBFA. d.4.Non-dues paying represented employees shall be covered by the LTD Policy at the same premium rate as dues paying represented employees. e.5. City payment to HBFA is to be made for each represented employee per month based on the bi- weekly payroll. f.6. HBFA shall pay the insurance company for the cost of premiums and any charges incurred for administering the program. g.7.HBFA shall provide the City with a monthly listing of covered employees. h.8.No self-funding/self-insurance of LTD benefits is permitted under this agreement. i.9. HBFA shall authorize the City to have the insurance company provide documentation to the City as follows: i.a. A copy of the most current audited financial statements. ii.b. A copy of the latest actuarial report, which should be completed by an independent “Fellow of the Society of Actuaries”; iii.c. A copy of the in-force re-insurance Policy; j.10. H BFA will provide a statement certifying that premiums collected are for LTD benefits for HBFA represented employees only. 741 Permanent, full-time employees shall accrue annual vacations or sick leave at their appropriate assigned work schedule rate, either 40-hour or 56-hour workweek. The actual accrual, as reflected on their payroll check will also reflect their actual work schedule. In the event of a chan ge in work schedules, personnel will have their accrual rate (Constant) and actual accrual (Accrued) change to the new schedule using the conversion factor, .7143. Paychecks will reflect the accrual rate based on the actual work schedule, either forty (40) or fifty-six (56) hour schedule. All maximum accruals will be modified to reflect the proper number of hours, either 40-hour or 56-hour workweek. EXAMPLE – CURRENT EXCEPTION 40-HOUR EXAMPLE Paycheck stub shows 1000 hours accrued sick leave. Employee uses 24 hours sick time. 1000 hours – 24 hours = 976 hours. 56-HOUR FIREFIGHTER PARAMEDIC Paycheck stub shows 1000 hours accrued sick leave. Employee uses 24 hours sick time. 1000 hours – 24 x .7143 = 17.1 hours = 982.9 hours (This mathematical transaction takes place for each exception.) EXCEPTION ALL 56-HOUR PERSONNEL Modify to 56-hour schedule - current accrued hours divided by .7143. 40-hour rate paycheck stub indicates 1000 hours sick leave. 1000 hours divided by .7143 = 1400 hours 1400 hours would be reflected on the employee’s 56-hour workweek paycheck stub. 56-hour schedule employee uses 24-hours sick time - hours are taken hour for hour. 1400 hours – 24 hours = 1376 hours remaining. 742 ACCRUAL RATE Current 40-hour employees - sick leave accrual - 3.6923 hours per pay period. 56-hour Firefighter Paramedic employee would accrue sick leave at 5.1691 (3.6923 divided by .7143 = 5.1691) hours per pay period. This would accurately indicate accrual at the 56-hour rate. 56-HOUR EMPLOYEE ASSIGNED TO A 40-HOUR POSITION Upon change of 56-hour Firefighter Paramedic employee to a 40-hour employee. Accrued sick leave = 1400 hours 1400 x .7143 = 1000 hours 1000 hours would be reflected on pay check. Sick leave accrual would return to 3.6923 per pay period 743  Applicable() to the following personnel:  Fire Administration  Fire Prevention Fire Captain Firefighter Paramedic  Chief Officer  Fire Suppression Fire Engineer Firefighter INTENT To establish and maintain the minimum staffing levels for the Huntington Beach Fire Department. DEFINITIONS 1. Apparatus - Any vehicle utilized to respond to fires, other emergencies or work assignments that requires a California Class A, Class B, or Class B firefighter restrictive driver's license. a.• Fire Engine- An apparatus with fire pump, fire hose, water tank, ground ladders, necessary firefighting equipment, and may include a "telesquirt" type ladder, but specifically excluding aerial ladder or platform capabilities. b.• Fire Truck- An apparatus that has mounted on the chassis, an aerial ladder or aerial platform, "TRUCK COMPANY" equipment, and may include a fire pump, fire hose, and water tank. c.• Hazardous Materials (HAZMAT) Unit- An apparatus that has tools and equipment used in the mitigation of Hazardous Materials incidents. · d.• Paramedic Engine or Paramedic Assessment Engine -A fire engine that carries Advanced Life Support equipment. e.• Paramedic Unit- Any Fire Department vehicle, other than a fire engine or fire truck, that carries Advanced Life Support equipment. f.• Special Purpose Apparatus -Apparatus (as described in No. 1 above), not otherwise defined in this policy and utilized for response to alarms. 2. Fire Company- A firefighting force commanded by a single Fire Captain (or a person assigned/qualified as such). 3. In-Service - Personnel, apparatus, and/or equipment that are available for dispatch to an alarm or actively involved in an alarm. 4. Qualified Personnel - Any Huntington Beach Fire Department employee meeting the minimum qualifications for the position as detailed in Policy D-10 who is operating/ functioning with the approval of the on-duty Battalion Chief. 744 POLICY The Duty Battalion Chief shall be responsible to ensure that each fire station and each apparatus are fully staffed according to this policy. A. MINIMUM STAFFING The City of Huntington Beach (City) shall cause apparatus to be staffed with sufficient personnel to ensure the safety of employees and the control of risk. For these purposes, the minimum staffing shall be as follows: 1. Each Fire Company shall be staffed with a minimum of three (3) personnel and may be assigned various firefighting or other emergency related activities, as well as routine duties. Fire Companies are generally assigned as engine companies or truck companies when they operate with a fire engine or fire truck apparatus. They may, however, operate without apparatus or with more than one (1) vehicle or apparatus. When operating with more than one (1) vehicle or apparatus, the minimum staffing requirements of this section shall be required when the vehicle is operated on an incident scene. Apparatus responding Code 3 shall be staffed with a minimum of two (2) persons. 2. Each in-service engine company shall be staffed with no less than one (1) Fire Captain, one (1) Fire Engineer, and one (1) Firefighter. Any member may be a Paramedic. oa. In the event a Fire Company drops below minimum staffing and "Qualified Personnel" are available, that Fire Company may continue to respond to augment single engine alarms. A second fully staffed engine shall be dispatched. 3. Each in-service truck company shall be staffed with no less than one (1) Fire Captain, one (1) Fire Engineer and two (2) Firefighters. Any member may be a Paramedic. 1.a. In the event a Fire Company drops below minimum staffing and "Qualified Personnel" are available, that Fire Company may continue to respond to augment single engine alarms. A second fully staffed engine shall be dispatched. 4. Each in-service paramedic unit shall be staffed with no less than two (2) certified Paramedics. 5. Each in-service paramedic engine company shall be staffed with no less than one (1) Fire Captain, one (1) Fire Engineer, and two (2) Firefighters. Two (2) of the members must be certified Paramedics. 1.a. In the event a Fire Company drops below minimum staffing and "Qualified Personnel" are available, that Fire Company may continue to respond to augment single engine alarms. A second fully staffed engine shall be dispatched. 745 6. Each in-service paramedic assessment engine company shall be staffed with no less than one (1) Fire Captain, one (1) Fire Engineer, and one (1) Firefighter. One (1) of the members must be a certified Paramedic. 1.a. In the event a Fire Company drops below minimum staffing and "Qualified Personnel" are available, that Fire Company may continue to respond to augment single engine alarms. A second fully staffed engine shall be dispatched. 7. Each in-service hazardous materials apparatus shall be staffed with a fire company of which the regularly assigned personnel shall be specially trained in hazardous materials incident practices and procedures. One or more of the personnel staffing the hazardous materials apparatus may be assigned as technical advisors to an emergency's Incident Commander. When this occurs, the remaining personnel may be reassigned to other companies involved in the incident or other Hazardous Materials Joint Powers Authority providers. 8. Special purpose apparatus shall be staffed with no less than one (1) person (Fire Engineer or Firefighter assigned/qualified as such) when responding Code 2, and with no less than two (2) personnel (one of whom must be a Fire Engineer or a Firefighter assigned/qualified as a Fire Engineer) when responding Code 3 to alarms. 9. Fire apparatus not considered to be in service shall not be required to have personnel assigned to them for the purposes of this Article. 10. The minimum staffing as set forth in this Article shall be specifically and exclusively from public safety employees of the Huntington Beach Fire Department for all routine activities and normal shift duties. Reserve Firefighters shall not be used to meet minimum staffing levels. a. No employee shall be assigned to more than one (1) fire-company at the same time for all routine activities and normal shift duties. b. Routine activities and normal shift duties shall include those emergencies that would normally be handled by the on-duty suppression force. 2.C. FILLING VACANCIES a.1. Employees acting in a higher classification, when properly qualified, shall be considered equivalent to the required classification. c. Employees acting in a higher classification shall be paid acting pay for all time worked in the higher class when the time cumulatively exceeds two (2) hours within one (1) 24 -hour shift. Acting pay will be calculated based on the step range of the higher classification, which provides at least a five percent range differential. For example, a Firefighter at E step who is 746 qualified and acts as an Engineer will be compensated at the hourly rate of a D step Engineer, which is equal to or greater than a five percent differential. b.2.Any employee assigned to serve in the capacity of Battalion Chief's Aide shall not be utilized to satisfy any of the minimum staffing requirements except as set forth in this Article. The BC's Aide may be utilized to fill a position for which he/she is qualified to serve in cases of temporary fill-in of four (4) hours or less. c.3. Either one (1) Firefighter or one (1) Firefighter Paramedic assigned to a truck company may be utilized for special assignments for a period not to exceed four (4) hours in a 24 hour period. d.4.REPLACEMENT CALLBACK. When a vacancy exists on any apparatus, the Department wi ll be obligated to meet minimum staffing obligations of this Article by use of off-duty personnel on an overtime basis. In the event an apparatus is placed out of service, those persons previously assigned thereto may be utilized to fill any vacancy prior to the use of off-duty personnel on an overtime basis. e.5. When a vacancy exists on any apparatus, the vacancy shall be filled rank for rank based upon the provisions of the Fire Department's Policy D-3 (Callback Staffing System). 3.D. NEW EQUIPMENT 1)1. If the City makes a managerial decision to change staffing levels provided for in the MOU, or to utilize any new apparatus over and above that presently in use, the City and the Association shall Meet and Confer in good faith prior to such action being implemented. 2)2. The Meet and Confer process/obligation shall apply to any managerial decision to eliminate any paramedic unit(s) / van(s). 4.E. CHANGES IN STAFFING 1)1. If either party requests a Meet and Confer, as indicated in New Equipment and Changes in Staffing sections above, the parties shall complete the process (including any impasse procedure) within 60 days, unless otherwise extended by mutual agreement. 747 The following appeals procedures are adopted pursuant to Government Code § 3254.5 of the Firefighters Procedural Bill of Rights Act and supersede any personnel rules to the contrary. 1. DEFINITIONS a. The term “firefighter” means an employee who is considered a “firefighter” under Government Code § 3251(a). b. The term “punitive action” means any action defined by Government Code §3251(c), i.e., “any action that may lead to dismissal, demotion, suspension, reduction in salary, written reprimand, or transfer for purposes of punishment.” 2. APPEAL OF A PUNITIVE ACTION NOT INVOLVING DISCHARGE, DEMOTION OR SUSPENSION OR REDUCTION IN SALARY OF A FIREFIGHTER Pursuant to Government Code § 11445.20, the following informal hearing procedure shall be utilized for an appeal by a firefighter of a punitive action not involving discharge, demotion, reduction in salary or suspension. a. Notice of Appeal - Within fifteen (15) calendar days of receipt by a firefighter of notification of punitive action as set forth above, the firefighter shall notify the office of the Fire Chief in writing of the firefighter’s intent to appeal the punitive action. The notice of appeal shall specify the action being appealed and the substantive and procedural grounds for the appeal. b. Presiding Officer - In an informal hearing, a Division Chief shall be the presiding officer. A Division Chief shall conduct the informal hearing in accordance with these procedures and shall make the final decision. If the Division Chief cannot serve as th e hearing officer because of actual bias, prejudice or interest as defined by Government Code §11425.40, then the Fire Chief or his/her designee shall serve as the Presiding Officer and shall make the final decision. Written reprimands adjudicated follo wing the informal process provided herein shall be removed from the employee’s personnel file after two years if no similar occurrence takes place within that time. If a similar occurrence takes place (as determined by the Fire Chief) the discipline shall remain until two years have passed without such an occurrence. c. Burden of Proof - The employer shall bear the burden of proof at the hearing. 4.1) If the action being appealed does not involve allegations of employee misconduct, the limited purpose of the hearing shall be to provide the officer the opportunity to establish a record of the circumstances surrounding the action. The Department’s burden of proof shall be satisfied if the Department establishes by a preponderance of the evidence that the action was reasonable. The Department’s burden of proof may be satisfied even though reasonable persons may disagree about the appropriateness of the action. 748 5.2) However, if the punitive action involves charges of misconduct, the Department shall have the burden of proving by a preponderance of the evidence the facts which form the basis for the charge and that the punitive action was reasonable under the circumstances. d. Conduct of Hearing 8.1) The formal rules of evidence do not apply, although the Presiding Officer shall have discretion to exclude evidence which is incompetent, irrelevant or cumulative, or the presentation of which will otherwise consume undue time. 9.2) The parties may present opening statements. 10.3) The parties may present evidence through documents and testimony. aa. Witnesses shall testify under oath. bb. Subpoenas may be issued pursuant to Government Code §§11450.05- 11450.50. 11.4) Following the presentation of evidence, if any, the parties may submit oral and/or written closing arguments for consideration by the hearing officer. e. Recording of the Hearing - The hearing may be tape recorded or stenographically recorded by a Certified Court Reporter by either party . The per diem cost of the court reporter shall be equally borne by the parties. The cost to receive a transcript of the hearing shall be borne by the party requesting the transcript. f. Representation - The firefighter may be represented by an association representative and/or attorney of his or her choice at all stages of the proceedings. All costs associated with such representation shall be borne by the firefighter. g. Decision - The decision shall be in writing pursuant to Government Code §11425.50. The decision shall be served personally or by first class mail, postage pre-paid, upon the firefighter as well as his/her attorney or representative, shall be accompanied by an affidavit or certificate of mailing, and shall advise the firefighter that the time within which judicial review of the decision may be sought is governed by Code of Civil Procedure § 1094.6. 3. APPEAL OF A DISCIPLINARY DECISION INVOLVING DISCHARGE, REDUCTION IN SALARY, DEMOTION OR SUSPENSION OF A FIREFIGHTER a. In those instances where the procedures in Government Code §§ 11400, et seq. are inapplicable to an administrative appeal, the administrative appeal shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the California Government Code. b. Notice of Discipline as Accusation - The final notice of discipline which may be issued at the conclusion of any pre-disciplinary procedures shall serve as the Accusation as described in Government Code §§ 11500, et seq. Pursuant to Government Code section 3254, 749 subsection (f), the discipline shall not be effective sooner than 48 hours of issuance of the final notice of discipline. The notice shall be prepared and served in conformity with the requirements of Government Code §§11500, et seq. A copy of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the California Government Code shall be provided to the firefighter concurrently with the notice of discipline. c. Notice of Defense/Request for Hearing - Within 15 calendar days after service of the accusation the respondent may file with the office of the Fire Chief a notice of defense in which the respondent may: d.1) Request a hearing; e.2) Object to the accusation upon the ground that it does not state acts or omissions upon which the agency may proceed; f.3) Object to the form of the accusation on the ground that it is so indefinite or uncertain that the respondent cannot identify the transaction or prepare a defense; g.4) Admit the accusation in whole or in part; h.5) Present new matter by way of defense; i.6) Object to the accusation upon the ground that, under the circumstances, compliance with the requirements of a regulation would result in a material violation of another regulation enacted by another department affecting substantive rights; Within the time specified respondent may file one or more notices of defense upon any or all of these grounds but all of these notices shall be filed within that period unless the agency in its discretion authorizes the filing of a later notice. The respondent shall be entitled to a hearing on the merits if the respondent files a notice of defense, and the notice shall be deemed a specific denial of all parts of the accusation not expressly admitted. Failure to timely file a notice of defense shall constitute a waiver of respondent's right to a hearing, but the agency in its discretion may nevertheless grant a hearing. Unless objection is taken as provided in Government Code Section 11506, all objections to the form of the accusation shall be deemed waived. The notice of defense shall be in writing signed by or on behalf of the respondent and shall state the respondent's mailing address. It need not be verified or follow any particular form. d. Administrative Law Judge - Pursuant to Government Code § 11512, the City has determined that appeals shall continue to be heard by the Personnel Commission with the administrative law judge presiding at the hearing, pursuant to Government Code § 11512(b). The administrative law judge shall rule on the admission and exclusion of evidence and advise the Personnel Commission on matters of law. The Personnel Commission shall exercise all other powers relating to the conduct of the hearing pursuant to pre-established Huntington 750 Beach Rules. The process contemplated in this subsection may be “reopened” for discussion after three years. e. Time and Place of Hearing - Pursuant to Government Code § 11508, unless otherwise decided by the Personnel Commission, a hearing shall be conducted at City Hall at a time to be determined by the Personnel Commission. f. Notice of the Hearing - Notice of the hearing shall be provided to the parties pursuant to Government Code § 11509. g. The Personnel Commission may recommend to sustain, reduce, or rescind the disciplinary action taken where evidence produced in the hearing warrants such recommendation. The standard at the hearing shall be “Just Cause.” In all instances, the Personnel Commission shall certify copies of its findings and decision to the City Manager, the department head from whose action the appeal was made, and the appellant employee. The Board’s decision shall be final. Requests for reconsideration by the Personnel Commission shall be governed by Government Code §11527. The decision shall be in writing. The decision shall be served personally or by first class mail, postage pre-paid, upon the firefighter as well as his/her attorney or representative, and shall be accompanied by an affidavit or certificate of mailing. Judicial review of the decision may be sought pursuant to Government Code § 11523 and the Code of Civil Procedure. h. In the event California Law cited herein is modified, these rules shall also be automatically modified in accordance thereto. 751 752 753 City of Huntington Beach File #:18-432 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Fred A. Wilson, City Manager PREPARED BY:Michele Warren, Director of Human Resources Subject: Approve Tentative Agreement and introduction of proposed Memorandum of Understanding (MOU) between the Huntington Beach Management Employees’ Organization (MEO) and the City of Huntington Beach for November 1, 2017 through October 31, 2019 Statement of Issue: The City and the Huntington Beach Management Employees’ Organization (MEO) have tentatively agreed to enter into a new Memorandum of Understanding (MOU) for the period November 1, 2017 through October 31, 2019. Financial Impact: Funding for the implementation of the fiscal items contained in the proposed Memorandum of Understanding will come from the General Fund. The fiscal impact over the term of the agreement is estimated by Finance to total $417,720. Funds for FY 2018/19 have been included in the approved budget. No additional appropriation is required. Recommended Action: Approve the Tentative Agreement and the introduction of the proposed Memorandum of Understanding Between the Huntington Beach Management Employees’ Organization (MEO) and the City of Huntington Beach for the period November 1, 2017 through October 31, 2019. Alternative Action(s): Do not approve the tentative agreement and the introduction of the proposed successor MOU for MEO employees and direct staff to continue to meet and confer with the Association or utilize the impasse procedures contained within the City’s Employer-Employee Relations Resolution. Analysis: Representatives for the City and MEO have been involved in active negotiations over an extended period and have successfully completed the meet and confer process with a tentative agreement on a proposed Memorandum of Understanding (MOU) for the period of November 1, 2017, through City of Huntington Beach Printed on 10/10/2018Page 1 of 3 powered by Legistar™754 File #:18-432 MEETING DATE:10/15/2018 October 31, 2019. Highlights from the listing of tentatively agreed upon contract changes include the following: Term of Agreement November 1, 2017 through October 31, 2019 Medical Benefits The City’s monthly contribution to MEO medical plan premiums will increase as follows upon final City Council approval: ·Single $100 ·Two Party $100 ·Family $100 ·Opt-Out $100 Effective January 1, 2019, the City’s monthly contribution to MEO medical plan premiums will increase by $100 per month, per medical plan, per tier. City contributions to dental and vision benefits will not increase during the term of the agreement. Administrative Leave Association employees shall receive a one-time (only) additional allotment of 10 hours of Administrative Leave effective the beginning of the pay period following City Council final approval. Administrative Leave hours have no cash value. Administrative Leave hours unused as of 12/31/18 will be forfeited. This provision regarding the one-time (only) additional allotment of 10 hours of Administrative Leave will sunset at the expiration of the MOU. The Association and the City intend to execute a separate side letter agreement related to Holiday Closure for 2018 for December 24, 2018 and December 31, 2018. There were other appropriate modifications to a variety other provisions including, but not limited to, deletion of obsolete language, regulatory compliance language changes and, general clean-up language. A summary of these and all other negotiated provisions are included as Exhibit “A”. Environmental Status: N/A Strategic Plan Goal: Strengthen economic and financial sustainability Attachment(s): City of Huntington Beach Printed on 10/10/2018Page 2 of 3 powered by Legistar™755 File #:18-432 MEETING DATE:10/15/2018 1. Tentative Agreement 2. Fiscal Impact Report 3. Proposed Memorandum of Understanding - Exhibit “A” 4. PowerPoint Presentation - MEO City of Huntington Beach Printed on 10/10/2018Page 3 of 3 powered by Legistar™756 757 758 MEMORANDUM OF UNDERSTANDING BETWEEN HUNTINGTON BEACH MANAGEMENT EMPLOYEES’ ORGANIZATION AND CITY OF HUNTINGTON BEACH November 1, 20157 – October 31, 20179 759 PREAMBLE ................................................................................................................................. 1 ARTICLE I - TERM OF MOU ....................................................................................................... 1 ARTICLE II - REPRESENTATIONAL UNIT/CLASSIFICATIONS ............................................... 1 ARTICLE III - MANAGEMENT RIGHTS ...................................................................................... 2 ARTICLE IV - EXISTING CONDITIONS OF EMPLOYMENT ...................................................... 2 ARTICLE V - SEVERABILITY ..................................................................................................... 2 ARTICLE VI - SALARY SCHEDULE ........................................................................................... 2 A. SALARY SCHEDULE ............................................................................................................................. 2 1. Wage Increases .................................................................................................................................................. 3 ARTICLE VII - SPECIAL PAY ..................................................................................................... 3 A. EDUCATIONAL TUITION ....................................................................................................................... 3 B. BILINGUAL PAY ................................................................................................................................... 3 ARTICLE VIII - UNIFORMS ......................................................................................................... 4 A. GENERAL POLICY ............................................................................................................................... 4 B. AFFECTED PERSONNEL ....................................................................................................................... 4 C. PERSONAL PROTECTIVE EQUIPMENT ................................................................................................... 4 D. EMPLOYEE RESPONSIBILITIES ............................................................................................................. 4 E. CITY RESPONSIBILITIES ....................................................................................................................... 5 F. DEPARTMENT HEAD OR DESIGNEE RESPONSIBILITIES .......................................................................... 5 ARTICLE IX - HOURS OF WORK/ADMINISTRATIVE LEAVE ................................................... 6 A. OVERTIME ......................................................................................................................................... 6 B. ADMINISTRATIVE LEAVE ...................................................................................................................... 6 C. FLEX SCHEDULE AND HOURS OF WORK ............................................................................................... 6 1. 5/40 Work Schedule ............................................................................................................................................ 6 2. 9/80 Work Schedule ............................................................................................................................................ 7 3. 4/10 Work Schedule ............................................................................................................................................ 7 ARTICLE X - HEALTH AND OTHER INSURANCE BENEFITS .................................................. 7 A. HEALTH ............................................................................................................................................. 7 B. ELIGIBILITY CRITERIA AND COST .......................................................................................................... 7 1. City and Employee Paid Medical Insurance – Employee and Dependents ..................................................... 7 2. Health and Other Insurance Premiums ............................................................................................................ 8 a. Health Premiums and Contributions ........................................................................................................... 8 3. Future Premiums and City Contributions ........................................................................................................ 9 4. Medical Cash-Out .......................................................................................................................................... 10 5. Section 125 Plan ............................................................................................................................................ 10 C. LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT ......................................................................... 10 D. LONG TERM DISABILITY INSURANCE .................................................................................................. 11 E. MISCELLANEOUS .............................................................................................................................. 11 1. City Paid Premiums While On Medical Disability .......................................................................................... 11 2. Insuance Benefits Advisory Committee ......................................................................................................... 11 F. RETIREE MEDICAL COVERAGE FOR RETIREES NOT ELIGIBLE FOR CITY MEDICAL SUBSIDY PLAN ................ 12 G. POST 65 SUPPLEMENTAL MEDICARE COVERAGE ................................................................................. 12 760 H. ANNUAL MAXIMUM BENEFIT FOR DENTAL PPO PLAN ............................................................................ 12 ARTICLE XI - RETIREMENT BENEFITS .................................................................................. 13 A. BENEFITS......................................................................................................................................... 13 1. Self Funded Supplemental Retirement Benefit ............................................................................................. 13 2. Medical Insurance for Retirees ...................................................................................................................... 13 a. Medical Insurance Upon Retirement ......................................................................................................... 13 B. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM CONTRIBUTIONS AND REPORTING ..................................... 14 1. Miscellaneous Unit Members......................................................................................................................... 14 2. Safety Unit Members .................................................................................................................................... 14 3. Pre-Retirement Optional Settlement 2 Death Benefit .................................................................................... 14 4. Fourth Level of 1959 Survivor Benefits ......................................................................................................... 14 ARTICLE XII - LEAVE BENEFITS ............................................................................................. 15 A. GENERAL LEAVE .............................................................................................................................. 15 1. Accrual ........................................................................................................................................................... 15 2. Eligibility and Approval ................................................................................................................................... 15 3. Leave Benefit Entitlements............................................................................................................................ 15 4. Conversion to Cash ....................................................................................................................................... 16 B. CITY PAID HOLIDAYS ........................................................................................................................ 16 C. SICK LEAVE ..................................................................................................................................... 16 D. VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM .................................................................. 18 E. BEREAVEMENT LEAVE ....................................................................................................................... 18 F. RELEASE TIME .................................................................................................................................. 18 ARTICLE XIII - CITY RULES ..................................................................................................... 18 A. PERSONNEL RULES ......................................................................................................................... 18 B. EMPLOYER-EMPLOYEE RELATIONS RESOLUTION .............................................................................. 18 1. Modification of Section 7 - Decertification and Modification ............................................................................... 19 C. RULES GOVERNING LAYOFF, REDUCTION IN LIEU OF LAYOFF AND RE-EMPLOYMENT .......................... 20 1. Part 1 - Layoff Procedure .................................................................................................................................. 20 2. Order of Layoff .................................................................................................................................................. 21 3. Notification of Employees .................................................................................................................................. 22 4. Part 2 - Bumping Rights .................................................................................................................................... 23 5. Part 3 - Re-Employment .................................................................................................................................... 24 ARTICLE XIV - MISCELLANEOUS ........................................................................................... 25 A. PHYSICAL EXAMINATION ................................................................................................................... 25 B. VEHICLE POLICY .............................................................................................................................. 26 C. DEFERRED COMPENSATION LOAN PROGRAM ..................................................................................... 27 D. COLLECTION OF PAYROLL OVERPAYMENTS ........................................................................................ 27 E. REQUIRED FINGERPRINTING OF EMPLOYEES THAT W ORK WITH SENIOR CITIZENS ................................ 28 F. ACTING ASSIGNMENT ....................................................................................................................... 28 G. RETURN TO WORK ........................................................................................................................... 28 H. CONTROLLED SUBSTANCE AND ALCOHOL TESTING............................................................................. 28 I. MANAGEMENT AND EXECUTIVE MANAGEMENT RELATIONS COMMITTEE ............................................... 28 J. PUBLIC EMPLOYEE DISASTER W ORKER ............................................................................................. 28 ARTICLE XV - CITY COUNCIL APPROVAL ............................................................................. 29 EXHIBIT A - SALARY SCHEDULE ........................................................................................................ 30 761 EXHIBIT B - RETIREE SUBSIDY MEDICAL PLAN ................................................................................ 36 SCHEDULE OF BENEFITS ...................................................................................................................... 36 A. MINIMUM ELIGIBILITY FOR BENEFITS .............................................................................................. 36 B. DISABILITY RETIREES.................................................................................................................... 36 C. MAXIMUM MONTHLY SUBSIDY PAYMENTS .................................................................................................. 37 RETIREE SUBSIDY MEDICAL PLAN/MISCELLANEOUS PROVISIONS ........................................................... 37 A. ELIGIBILITY ................................................................................................................................... 37 B. BENEFITS ..................................................................................................................................... 37 C. SUBSIDIES ................................................................................................................................... 38 D. MEDICARE ................................................................................................................................... 38 E. CANCELLATION ............................................................................................................................. 39 EXHIBIT C - VEHICLE USE/ASSIGNMENT ........................................................................................... 40 EXHIBIT D - PHYSICAL EXAMINATION DESCRIPTION....................................................................... 41 EXHIBIT E - 9/80 WORK SCHEDULE .................................................................................................... 42 9/80 WORK SCHEDULE DEFINED ........................................................................................................... 42 A. FORTY (40) HOUR W ORK W EEK ....................................................................................................... 42 B. TWO-W EEK PAY PERIOD .................................................................................................................. 42 C. A/B SCHEDULES .............................................................................................................................. 42 D. EMERGENCIES ................................................................................................................................. 43 LEAVE BENEFITS .................................................................................................................................. 43 EXHIBIT F- 4/10 WORK SCHEDULE ..................................................................................................... 44 EXHIBIT G - VOLUNTARY CATASTROPHIC LEAVE DONATION PROGRAM GUIDELINES .............. 45 762 MEMORANDUM OF UNDERSTANDING between THE CITY OF HUNTINGTON BEACH (Hereinafter called CITY) and THE HUNTINGTON BEACH MANAGEMENT EMPLOYEES’ ORGANIZATION (Hereinafter called ASSOCIATION or MEO) PREAMBLE This Memorandum of Understanding is entered into by and between the City of Huntington Beach, a Municipal Corporation of the State of California, herein called “City,” and the Huntington Beach Management Employees’ Organization, a California Organization, herein called “Association.” WHEREAS, pursuant to California law, the City, acting by and through its designated representatives, duly appointed by the governing body of said City, and the representatives of the Association, a duly recognized employee association have met and conferred in good faith and have fully communicated and exchanged information concerning wages, hours, and other terms and conditions of employment for the period November 1, 20157 through October 31, 20179. WHEREAS, except as otherwise expressly provided herein, all terms and conditions of this Agreement shall apply to all employees represented by the Association, and WHEREAS, the representatives of the City and Association desire to reduce their agreements to writing, NOW THEREFORE, this Memorandum of Understanding (MOU) is made to become effective November 1, 20157 and it is agreed as follows: ARTICLE I - TERM OF MOU This Agreement shall be in effect for a period of two (2) years commencing November 1, 20157 and ending midnight October 31, 201 79. The parties agree to commence negotiations on a successor MOU by not later than July August 1, 20179. ARTICLE II - REPRESENTATIONAL UNIT/CLASSIFICATIONS It is recognized that the Association is the employee association which has the right to meet and confer in good faith with the City on the behalf of employees whose classifications are li sted in Exhibit A, attached hereto and incorporated by reference herein. 763 ARTICLE III – MANAGEMENT’S RIGHTS The parties agree the City has the right to make unilateral management decisions that are outside the scope of bargaining, as defined by state and federal law and Public Employment Relations Board (PERB) decisions. Except as expressly abridged or modified here in, the City retains all rights, powers and authority with respect to the management and direction of the performance of City services and the work forces performing such services, provided that nothing herein shall change the City’s obligation to meet and confer as to the effects of any such management decision upon wages, hours and terms and conditions of employment or be construed as granting the City the right to make unilateral changes in wages, hours and terms and conditions of employment. Such rights include, but are not limited to, consideration of the merits, necessity, level or organization of City services, including establishing of work stations, nature of work to be performed, contracting for any work or operation, reasonable employee performance standards, including reasonable work and safety rules and regulations in order to maintain the efficiency and economy desirable for the performance of City services. ARTICLE IV - EXISTING CONDITIONS OF EMPLOYMENT Except as otherwise expressly provided herein, the adoption of this Memorandum of Understanding shall not change existing benefits and terms and conditions of employment which have been established in prior Memoranda of Understanding, and/or provided for in the Personnel and Departmental Rules of the City of Huntington Beach. ARTICLE V - SEVERABILITY If any section, subsection, sentence, clause, phrase, or portion of this MOU or any additions or amendments thereof, or the application thereof to any person, 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 resolution or its application to other persons. The City Council hereby declares that it would have adopted this MOU and each section, subsection, sentence, clause, phrase , or portion, and any additions or amendments thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions, or the application thereof to any person, be declared invalid or unconstitutional. ARTICLE VI - SALARY SCHEDULE A. Salary Schedule All employees are required to utilize direct deposit of payroll checks. The City shall issue each employee direct deposit advice (payroll receipt) each pay period that details all income, withholdings, and deductions. 1. Wage Increases 764 a. Effective the beginning of the pay period that includes October 1, 2016, all bargaining unit members will receive a two-percent (2%) wage increase. ARTICLE VII - SPECIAL PAY A. Educational Tuition 1. Upon approval of the Department Head and the Director of Human Resources, permanent employees may be compensated for courses from accredited educational institutions, including vocational schools. Tuition reimbursement shall be limited to job- related courses or job-related educational degree objectives and requires prior approval by the Department Head and the Director of Human Resources. 2. Education costs shall be reimbursed to permanent employees for tuition, books, parking (if a required fee) and any other required fees upon presentation of receipts. However, the maximum reimbursement shall be not more than one thousand seven hundred and fifty dollars ($1,750) in any fiscal year period per employee. a. Employees may not carry-over and be reimbursed for prior fiscal year education costs in successive fiscal years. 3. Reimbursements shall be made when the employee presents proof to the Director of Human Resources that he/she has successfully completed the course with a grade of “C” or better; or a “Pass” if taken for credit. B. Bilingual Pay Permanent employees who are required by their Department Head to use Spanish, Vietnamese, or American Sign Language skills as part of their job assignment, shall be paid an additional five-percent (5%) of their base hourly rate in addition to their regular bi-weekly salary. Permanent employees may accept assignment s utilizing bilingual skills in other languages on a short-term assignment with approval by the City Manager. Such employees shall receive the additional five percent (5%) for every bi-weekly pay period that the assignment is in effect. In order to be eligible for said compensation, an employee’s language proficiency will be tested and certified by the Director of Human Resources or designee. The special pay shall be effective the first full pay period following certification as verified to the Department Head in writing by the Director of Human Resources or designee. The parties agree that to the extent permitted by law, Bilingual Pay is special compensation and shall be reported to CalPERS as such pursuant to Title 2 CCR, Section 571(a)(4) Bilingual Premium. ARTICLE VIII - UNIFORMS 765 The City agrees to provide uniforms to employees on active duty who are required to wear uniforms. A. General Policy The City shall furnish uniforms to those employees designated by the various Department Heads as required to wear a standard uniform for appearance, uniformity and public recognition purposes, in the procedures and guidelines set forth hereinafter. B. Affected Personnel All employees in classifications listed below shall wear a standard City adopted uniform. Each Department Head shall determine which employees must wear a uniform. Department Job Type Classification Uniform Items Community Dev 0125 Code Enforcement Supervisor 3-polo shirts, 2-pair of paints (khaki style), one hat and one pair of safety boots. Community Dev 0072 Principal Electrical Inspector 5 Polo Shirts, 1 Jacket, 1 Windbreaker (not annually), 1 Hat, shoes PPE/Safety Community Dev 0073 Inspection Supervisor 5 Polo Shirts, 1 Jacket, 1 Windbreaker (not annually), 1 Hat, shoes PPE/Safety Community Dev 0076 Principal Inspector Plum/Mech 5 Polo Shirts, 1 Jacket, 1 Windbreaker (not annually), 1 Hat, shoes PPE/Safety Community Dev 0075 Inspection Manager 5 Polo Shirts, 1 Jacket, 1 Windbreaker (not annually), 1 Hat, shoes PPE/Safety Community Dev 0598 Building Manager 5 Polo Shirts, 1 Jacket, 1 Windbreaker (not annually), 1 Hat, shoes PPE/Safety Community Srvcs 0044 Beach Operations Supervisor 5 Polo Shirts, 1 jacket (not annually), 1 pair boots (not annually), 1 hat Community Srvcs 0133 Supv Parking & Camping Facility 5 shirts, 1 Jacket (not annually), 1 hat Fire 0595 Assistant Fire Marshall 5 shirts, 5 pants, 1 dress shirt, 1 belt, 1 pair boots, 1 badge Fire 0131 Fire Med Coordinator 1 blouse, 1 pant, 1 dress pant, 1 skirt, 1 pair dress shoes, 1 badge Fire 0130 Fire Protection Analyst 5 shirts, 5 pants, 1 dress shirt, 1 belt, 1 pair boots, 1 badge Police 0486 Detention Administrator 1 shirt/1 pants/1 jacket, 1 BDU pants/1 polo, name tag, tie, tie bar C. Personal Protective Equipment All personal protective equipment shall be provided based on employee safety needs for the performance of duties as approved by the Department Head. D. Employee Responsibilities 1. Wear a clean and complete uniform as required. 2. Uniform appearance shall include: a. Patch to be worn above left shirt or jacket pocket. b. Pants to have no cuffs. c. Worn with pride in appearance to public, i.e., shirt buttoned, shirttail tucked in. 3. Wash and provide minimum repair; i.e., buttons, small tears. 4. Provide any alterations necessary including sewing on of City patches. 766 5. Wear uniform only when on duty or performing work for the City. 6. Notify supervisor of need to replace due to disrepair or severe staining prod ucing an undesirable appearance. 7. Turn in all uniform components, including patches, upon termination. 8. Turn in all personal protective equipment upon termination. 9. Wear all personal protective equipment prescribed by the City safety officer and/or Supervisor of the division. E. City Responsibilities 1. Pay for City-required uniforms. 2. Report to the California Public Employees’ Retirement System (CalPERS) the cost of uniforms provided as set forth in Section B (above) for each classification as special compensation in accordance with Title 2, California Code of Regulations, Section 571(a)(5). For employees that are not required to wear uniforms on a daily basis or who are not actively employed for an entire payroll calendar year, a prorated cost of unifo rms may apply. 3. Provide one or more retail clothing outlets for the various allotments. City reserves the right to name vendor. 4. Maintain records of purchases. F. Department Head or Designee Responsibilities 1. Ensure employee compliance with the Uniform Policy. 2. Approve replacement of deteriorated uniform component(s) and personnel protective equipment as required and to maintain a listing for each eligible employee, by name and classification, of all uniform component(s) and personal protective equipment purchased. 3. Confirm receipt of uniforms, patches and personal protective equipment from an employee upon termination. A Termination Checklist Form is to be completed, signed by the employee, and submitted to the Human Resources Department. 4. Report to the Director of Human Resources any changes to the Uniform Listing by Category/Classification (Section B above). The City reserves the right to add, delete, change or modify the Uniform Listing as required. ARTICLE IX - HOURS OF WORK/ADMINISTRATIVE LEAVE It is the intent of the City to provide an opportunity for MEO employees to select a flex schedule and/or alternative work schedule that is consistent with the City’s objective th at such schedules shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. 767 A. Overtime Employees represented herein shall not be eligible for paid overtime compensation. B. Administrative Leave 1. Effective the beginning of the pay period following City Council final approval of this agreement, full-time unit employees shall be granted a one-time increased allocation of ten (10) hours of administrative leave for t he 2016 calendar year allotment. Part-time (50%) employees shall be granted a one-time increased allocation of five(5) hours of administrative leave for the 2016 calendar year allotment. Effective January 2017 and therafter, all All full-time unit employees shall be entitled to sixty (60) hours of administrative leave per calendar year. All part-time (50%) employees shall be entitled to thirty (30) hours of administrative leave per calendar year. Administrative leave shall not carry over to the next year and holds no cash value. a.Effective the beginning of the pay period following City Council final approval of this agreement, full time unit employees shall be granted a one -time (only) additional allotment of ten (10) hours of Administrative Leave for the 2018 calendar year. Part time (50%) employees shall be granted a one-time (only) additional allotment of five (5) hours of Administ rative Leave for the 2018 calendar year. Administrative Leave shall not carry over to the next year and holds no cash value. i. The MOU provision regarding the additional one-time allotment of ten (10) hours of Administrative Leave for calendar year 2018, will expire with the expiration of this agreement and will not continue beyond the original expiration date of the agreement (even if the MOU is subsequently extended or amended), nor will it be automatically included as part of any successor MOU. The language as written herein sunsets. C. Flex Schedule and Hours of Work With supervisor and Department Head approval, MEO employees may flex regularly scheduled start times between the hours of 7:00 a.m. to 9:00 a.m. Flex schedules shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. MEO employees will have the option of working a 5/40 or 9/80 work schedule with supervisor and Department Head approval. MEO employees assigned the 4/10-work schedule shall retain the option of working the 4/10-work schedule with supervisor and Department Head approval. In order to maintain service to the public, departmental effectiveness, productivity and/or efficiency a Department Head may assign an employee a different work schedule that is in compliance with the requirements of the Fair Lab or Standards Act (FLSA) with City Manager approval. 1. 5/40 Work Schedule 768 The 5/40 work schedule shall be defined as working five (5) eight (8) hour days Monday through Friday each week plus a one-hour lunch during each work shift, totaling a forty (40) hour work week. 2. 9/80 Work Schedule The 9/80 work schedule, as outlined in Exhibit HE, shall be defined as working nine (9) days for eighty (80) hours in a two-week pay period by working eight (8) days at nine (9) hours per day and working one (1) day for eight (8) hours (Friday), plus a one -hour lunch during each work shift, totaling forty (40) hours in each FLSA work week. The 9/80-work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. 3. 4/10 Work Schedule The 4/10 work schedule, as outlined in Exhibit IF, shall be defined as working four (4) ten (10) hour days Monday through Thursday or Tuesday thru Friday each week plus a one - hour lunch during each work shift, totaling a forty (40) hours work week. The assigned 4/10-work schedule must be in compliance with the requirements of FLSA and all other applicable laws. The 4/10-work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. ARTICLE X - HEALTH AND OTHER INSURANCE BENEFITS A. Health The The City shall make available group medical, dental and vision benefits to all employees. A copy of the medical, dental and vision plan brochures may be obtained from the Human Resources Department. B. Eligibility, Criteria and Cost 1. City and Employee Paid Medical Insurance – Employees and Dependents The City and employee shall each pay for health insurance premiums for qualified employees and dependent(s) effective the first of the month following the employee’s date of hire. The employee deduction for premium contributions shall be aligned with the effective date of coverage and the ending date of coverage upon the employee’s separation. The payroll deduction amount shall begin no later than the first full pay period following the effective date of coverage and pro-rated for coverage through the end of the month in which employment was separated. 769 2. Health and Other Insurance Premiums a. Health Premiums and Contributions City of Huntington Beach 2016 Health Premiums and Contributions Effective 1/1/2016 MEO Plan Tier Monthly Premium Employer Monthly Contrib Employee Monthly Contrib Employee Bi-Weekly Contrib Kaiser Single 466.65 373.12 93.53 43.17 Two-Party 1,022.11 653.53 368.58 170.11 Family 1,343.90 817.56 526.34 242.93 Blue Shield HMO Single 671.00 401.43 269.57 124.42 Two-Party 1,466.00 711.06 754.94 348.43 Family 1,896.00 892.20 1,003.80 463.29 Blue Shield PPO Single 736.00 501.17 234.83 108.38 Two-Party 1,555.00 857.80 697.20 321.78 Family 1,927.00 1,023.36 903.64 417.06 Blue Shield CDHP Single 541.00 501.17 39.83 18.38 Two-Party 1,144.00 857.80 286.20 132.09 Family 1,416.00 1,023.36 392.64 181.22 Delta Dental PPO Single 58.10 42.88 15.22 7.02 Two-Party 108.60 81.82 26.78 12.36 Family 143.20 116.36 26.84 12.39 Delta Care HMO Single 30.11 23.00 7.11 3.28 Two-Party 51.19 39.11 12.08 5.58 Family 78.29 59.81 18.48 8.53 VSP Vision Single 25.12 17.84 7.28 3.36 Two-Party 25.12 17.84 7.28 3.36 Family 25.12 17.84 7.28 3.36 Medical Opt-Out: $373.12 per month 770 City of Huntington Beach 2016 Health Premiums and Contributions Premiums Effective 1/1/2016 (Employer contributions (medical plans) effective pay period following final City Council approval of agreement) MEO Plan Tier Monthly Premium Employer Monthly Contrib Employee Monthly Contrib Employee Bi-Weekly Contrib Kaiser Single 466.65 466.65 0.00 0.00 Two-Party 1,022.11 853.53 168.58 77.81 Family 1,343.90 1,017.56 326.34 150.62 Blue Shield HMO Single 671.00 601.43 69.57 32.11 Two-Party 1,466.00 911.06 554.94 256.13 Family 1,896.00 1,092.20 803.80 370.99 Blue Shield PPO Single 736.00 701.17 34.83 16.08 Two-Party 1,555.00 1,057.80 497.20 229.48 Family 1,927.00 1,223.36 703.64 324.76 Blue Shield CDHP Single 541.00 541.00 0.00 0.00 Two-Party 1,144.00 1,057.80 86.20 39.78 Family 1,416.00 1,223.36 192.64 88.91 Delta Dental PPO Single 58.10 42.88 15.22 7.02 Two-Party 108.60 81.82 26.78 12.36 Family 143.20 116.36 26.84 12.39 Delta Care HMO Single 30.11 23.00 7.11 3.28 Two-Party 51.19 39.11 12.08 5.58 Family 78.29 59.81 18.48 8.53 VSP Vision Single 25.12 17.84 7.28 3.36 Two-Party 25.12 17.84 7.28 3.36 Family 25.12 17.84 7.28 3.36 Medical Opt-Out: $466.65 per month ($215.38 bi-weekly) 2018 Health Premiums and Contributions Effective 11/1/2018 MEO Plan Tier Monthly Premium Employer Monthly Contribution Employee Monthly Contribution Employee Bi-Weekly Contribution Kaiser Single 530.00 530.00 0.00 0.00 Two-Party 1,142.00 953.53 188.47 86.99 771 Family 1,495.00 1,117.56 377.44 174.20 Blue Shield HMO Single 705.00 701.43 3.57 1.65 Two-Party 1,540.00 1,011.06 528.94 244.13 Family 1,992.00 1,192.20 799.80 369.14 Blue Shield PPO Single 750.00 750.00 0.00 0.00 Two-Party 1,585.00 1,157.80 427.20 197.17 Family 1,964.00 1,323.36 640.64 295.68 Blue Shield CDHP Single 551.00 551.00 0.00 0.00 Two-Party 1,166.00 1,157.80 8.20 3.78 Family 1,443.00 1,323.36 119.64 55.22 Delta Dental PPO Single 56.00 42.88 13.12 6.06 Two-Party 104.60 81.82 22.78 10.51 Family 137.90 116.36 21.54 9.94 Delta Care HMO Single 30.11 23.00 7.11 3.28 Two-Party 51.19 39.11 12.08 5.58 Family 78.29 59.81 18.48 8.53 VSP Vision Single 23.86 17.84 6.02 2.78 Two-Party 23.86 17.84 6.02 2.78 Family 23.86 17.84 6.02 2.78 Medical Opt-Out (As stated in Article X.4): $530.00 per month ($244.62 bi -weekly) Employee and City contributions subject to change as a result of contract negotiations 2019 Health Premiums and Contributions Effective 1/1/2019 MEO Plan Tier Monthly Premium Employer Monthly Contribution Employee Monthly Contribution Employee Bi-Weekly Contribution Kaiser Single 551.00 551.00 0.00 0.00 Two-Party 1,188.00 1,053.53 134.47 62.06 Family 1,555.00 1,217.56 337.44 155.74 Blue Shield HMO Single 733.00 733.00 0.00 0.00 Two-Party 1,602.00 1,111.06 490.94 226.59 Family 2,072.00 1,292.20 779.80 359.91 Blue Shield PPO Single 780.00 780.00 0.00 0.00 Two-Party 1,649.00 1,257.80 391.20 180.55 Family 2,043.00 1,423.36 619.64 285.99 Blue Shield CDHP Single 573.00 573.00 0.00 0.00 Two-Party 1,213.00 1,213.00 0.00 0.00 Family 1,501.00 1,423.36 77.64 35.83 772 Delta Dental PPO Single 56.00 42.88 13.12 6.06 Two-Party 104.60 81.82 22.78 10.51 Family 137.90 116.36 21.54 9.94 Delta Care HMO Single 30.11 23.00 7.11 3.28 Two-Party 51.19 39.11 12.08 5.58 Family 78.29 59.81 18.48 8.53 VSP Vision Single 23.33 17.84 5.49 2.53 Two-Party 23.33 17.84 5.49 2.53 Family 23.33 17.84 5.49 2.53 Medical Opt-Out (As stated in X.4): $551.00 per month ($254.31 bi-weekly) Employee and City contributions subject to change as a result of contract negotiations 3. Future Premiums and City Contributions Effective the beginning of the pay period following City Council final approval of this agreement, the City’s contribution to medical premiums (only) will be increased $2100.00 per month, per medical plan, per enrollment tier, up to, but not to exceed the monthly plan premium cost. Effective January 1, 20179, the City’s monthly contribution to medical premiums (only) will be increased $100.00 per month, per medical plan, per enrollment tier, up to, but not to exceed the monthly plan premium cost. toward Kaiser (SINGLE ONLY PLAN), will be increased a maximum of $106.47. Effective January 1, 2017, the City’s monthly contribution towards Blue Shield CHDP (SINGLE ONLY PLAN ) will be increased a maximum of $160.17. All other City contributions towards medical plan rates will remain unchanged. For the term of this agreement, and thereafter unless modified by negotiated agreement of the parties, the City’s monthly contributions to medical, dental and vision insurance shall remain as specified for the 20169 Health Premiums and Contribution amounts, unless otherwise specified herein. As a result of these formulas, it is understood that the employee contribution shall not decrease during the term of this Agreement nor is there any expectation of compensation or benefit in the event the City’s contribution cap is not reached. Employee payroll deductions shall be made on a pre-tax basis. 4. Medical Cash-Out If an employee is covered by a group medical plan outside of a city-provided program (evidence of which must be supplied to the Human Resources Department), the employee may elect to discontinue City medical coverage and receive the amount equal to the City’s contribution to the lowest cost, Employee-only medical premium offered to this unit. 5. Section 125 Plan 773 This plan allows employees to use pre-tax salary to pay for childcare, adult dependent care and/or medical expenses allowable under the Internal Revenue Service rules for a Section 125 plan. C. Life and Accidental Death & Dismemberment Each employee is provided with $50,000 (fifty thousand) life insurance and $50,000 (fifty thousand) accidental death & dismemberment insurance paid for by the City. Each employee shall have the option, at his or her own expense, to purchase additional amounts of life insurance and accidental death & dismemberment insurance to the extent provided by the City’s current providers. Evidence of insurability is contingent upon total participation in additional amounts. 774 D. Long Term Disability Insurance This program provides, for each incident of illness or injury, a waiting period of thirty (30) calendar days, during which the employee may use accumulated sick leave, general leave pay, or the employee may elect to be in an unpaid status. Subsequent to the thirty (30) day waiting period, the employee will be covered by an insurance plan paid for by the City, providing 66 2/3 (sixty six and two-third) percent of the first $12,500 (twelve thousand five hundred) of the employee’s basic monthly earnings. The maximum benefit period for disability due to accident or sickness shall be to age sixty five (65). Days and months refer to calendar days and months. Benefits under the plan are integrated with sick leave, Worker’s Compensation, Social Security and other non-private program benefits to which the employee may be entitled. Disability is defined as: “The inability to perform all of the duties of regular occupation during two years, and thereafter the inability to engage in any employment or occupation for which the employee is fitted by reason of education, training or experience.” Rehabilitation benefits are provided in the event the individual, due to disability, must engage in another occupation. Survivor’s benefits continue plan payment for three (3) months beyond death. A copy of the plan is on file in the Human Resources Department. The intent of long term disability is to assist employees who are off work for an extended period of time. While long term disability benefits can be coordinated with accrued leave benefits to achieve one hundred percent (100%) of regular salary, no employee may receive more than their regular salary while receiving disability benefits and paid leave. E. Miscellaneous 1. City-Paid Premiums While on Medical Disability When an employee is off work without pay for reason of medical disability, the City shall maintain the City-paid employee’s insurance premiums during the period the employee is in an unpaid status for the length of said leave, not to exceed twenty-four (24) months. 2. Insurance and Benefits Advisory Committee The City and the Association participate in a City-wide joint labor and management insurance and benefits advisory committee to discuss and study issues relating to insurance and benefits available for employees. F. Retiree Medical Coverage for Retirees Not Eligible for the City Medical Retiree Subsidy Plan 775 Employees who retire from the City after January 1, 2004 and are granted a retirement allowance by the California Public Employees’ Retirement System and are not eligible for the City’s Retiree Subsidy Medical Plan may choose to participate in City-sponsored medical insurance plans until the first of the month in which they turn age sixty-five (65). The retiree shall pay the full premium for City-sponsored medical insurance for him/her self and/or qualified dependents without any City subsidy. Employees who retire from the City and receive a retirement allowance from the California Public Employees’ Retirement System and are not eligible for the City’s Retiree Subsidy Medical Plan and choose not to participate in City-sponsored medical insurance upon retirement, permanently lose eligibility for this insurance. However, if a retiree who is not eligible for the City’s Retiree Subsidy Medical Plan chooses not to participate in City-sponsored medical insurance plans because the retiree has access to other group medical insurance and subsequently loses eligibility for that group medical insurance, the retiree and qualified dependents will have access to City -sponsored medical insurance plans reinstated. Eligibility for Retiree Medical Coverage terminates the first of the month in which the retiree or qualified dependent turns age sixty-five (65). G. Post-65 Supplemental Medicare Coverage Retirees who are participating in the Retiree Subsidy Medical Plan as of January 1, 2004 and all future retirees who meet the criteria to participate in City -sponsored medical insurance, with or without the Retiree Medical Subsidy Plan, may participate in City - sponsored medical insurance plans that are supplemental to Medicare. A retiree or qualified dependent must choose to participate in City-sponsored medical insurance plans that are supplemental to Medicare beginning the first of the month in which the retiree or qualified dependent turns age sixty-five (65). The retiree shall pay the full premium to participate in City-sponsored medical insurance plans that are supplemental to Medicare for him/herself or qualified dependents without any City subsidy. Retirees or qualified dependents, upon turning age sixty five (65), who choose not to participate in City-sponsored medical insurance plans that are supplemental to Medicare permanently lose their eligibility for this insurance. H. Annual Maximum Benefit for Dental PPO Plan The Dental PPO plan maximum annual benefit is $2,000. ARTICLE XI - RETIREMENT BENEFITS A. Benefits 776 1.2. Self Funded Supplemental Retirement Benefit Employees hired prior to August 17, 1998 are eligible for the Self -Funded Supplemental Retirement Benefit, which provides that: a. In the event a member elects Option #1, #2, #2W, #3, #3W or #4 of the Public Employees’ Retirement Law, the City shall pay the difference between such elected options and the unmodified allowance which the member would have received for his or her life alone as provided in California Government Code sectio ns 21455, 21456, 21457, and 21458 as said referenced Government Code sections exist as of the date of this agreement. This payment shall be made only to the member, shall be payable by the City during the life of the member, and upon that member’s death, the City’s obligation shall cease. The method of funding this benefit shall be at the sole discretion of the City. This benefit is vested for employees covered by this Agreement. b. Employees hired on or after August 17, 1998 shall not be eligible for this benefit referenced in A.1.a. herein above. 2.3. Medical Insurance for Retirees a. Medical Insurance Upon Retirement Upon retirement, whether service or disability, each employee shall have the following options in regards to medical insurance under City-sponsored plans: i. With no change in benefits, retirees can stay in any of the plans offered by the City, at the retiree’s own expense, for the maximum time period allowed by Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) Federal or State Law, or ii. Retirees retiring after approval of this MOU may participate in the Retiree Subsidy Medical Plan, attached hereto as Exhibit B, or the Health Maintenance Organization (HMO) Plan currently being offered to retirees at the retiree’s own expense if the requirements set forth in Exhibit B are met, or if the retiree meets the eligibility requirements described in Exhibit B, the retiree may receive a subsidy from the City for retiree medical insurance pursuant to the schedule set forth in Exhibit B. B. Public Employees’ Retirement System Reimbursement and Reporting 1. Miscellaneous Unit Members a. The City shall provide all miscellaneous employees described as “classic” members by the California Public Employees’ Pension Reform Act of 2013 – “PEPRA” with that 777 certain retirement program commonly known and described as the “2.5% at age 55 plan” which is based on the retirement formula as set forth in the California Public Employees’ Retirement System (CalPERS), Section 21354 of the California Government Code. b. All miscellaneous bargaining unit “classic” members shall pay to CalPERS as part of the required member retirement contribution eight percent (8%) of pensionable income. This provision shall not sunset at the end of this agreement. c. The City shall contract with CalPERS to have retirement benefits calculated based upon the “classic” member employee’s highest one year’s compensation, pursuant to the provisions of Section 20042 (highest single year). d. The obligations of the City and the retirement rights of employees as provided in this Article shall survive the term of this MOU e. For “New” Members within the meaning of the California Public Employees’ Pension Reform Act of 2013. i. “New” Members shall be governed by the two percent at age 62 (2% @ 62) retirement formula set forth in Government Code section 7522.20. ii. Final compensation will be based on the highest annual average co mpensation earnable during the 36 consecutive months immediately preceding the effective date of his or her retirement, or some other 36 consecutive month period designated by the member. iii. All “new” members as defined by PEPRA and determined by CalPERS, shall contribute one half (50%) of the normal cost as established by CalPERS. 2. Pre-Retirement Optional Settlement 2 Death Benefit Employees receive the benefit of the Pre-Retirement Optional Settlement 2 Death Benefit, as identified in Government Code Section 21548 with CalPERS. 3. Fourth Level of 1959 Survivor Benefits Employees receive the benefit of the Fourth Level of the 1959 Survivor Benefit, as identified in Government Code Section 21574 with CalPERS. 4. The City has adopted the CalPERS Resolution in accordance with IRS Code section 414(h)(2) and both the employee contribution and the City pickup of the required member contribution are made on a pre-tax basis. However, ultimately, the tax status of any benefit is determined by the law. ARTICLE XII - LEAVE BENEFITS A. General Leave 1. Accrual 778 Employees accrue General leave at the accrual rates outlined below. General leave may be used for any purpose, including vacation, sick leave, and personal leave. 2. Eligibility and Approval a. General leave must be pre-approved except for illness, injury or family sickness, which may require a physician’s statement for approval. General leave accrued time is to be computed from the employee’s anniversary of their hiring date. b. Employees are not permitted to take general leave in excess of actual time earned. Employees shall not accrue general leave in excess of six hundred forty (640) hours. An employee who earns general leave hours in excess of six hundred forty (640) hours shall be paid the cash value of those additional hours in their paycheck . i. Employees in this unit hired on or after October 1, 2016, shall not be eligible for this benefit. General Leave shall be capped at six hundred forty hours (640) for employees hired on or after 10/1/16. This provision shall not sunset at the expiration of this agreement. c. Employees may not use their general leave to advance their separation date on retirement or other separation from employment. 3. Leave Benefit Entitlements The City shall comply with all State and Federal leave benefit entitlement laws. An eligible employee on an approved leave is permitted to use earned Sick Leave, General Leave, and/or Administrative Leave for serious and non-serious family or personal health issues. For more information on employee leave options contact the Human Resources Department. 4. Conversion to Cash Twice during each fiscal year, each employee has the option to convert into a cash payment or deferred compensation up to a total of one hundred sixty (160) hours of earned general leave benefits at the base hourly rate. The employee shall give two (2) weeks advance notice to Payroll of his/her desire t o exercise such option. B. City Paid Holidays Years of Service Annual General Leave Allowance Bi-Weekly General Leave Allowance First through Fourth Year 176 Hours 6.77 Fifth through Ninth Year 200 Hours 7.69 Tenth through Fourteenth Year 224 Hours 8.62 Fifteenth Year and Thereafter 256 Hours 9.85 779 Permanent full-time employees shall receive the following paid holidays per the employee’s regularly scheduled work shift: 1. New Year’s Day (January 1) 2. Martin Luther King Jr., (third Monday in January) 3. Presidents Day (third Monday in February 4. Memorial Day (last Monday in May) 5. Independence Day (July 4) 6. Labor Day (first Monday in September) 7. Veteran’s Day (November 11) 8. Thanksgiving Day (fourth Thursday in November) 9. The Friday after Thanksgiving 10. Christmas Day (December 25) Any day declared by the President of the United States to be a national holiday and adopted as an employee holiday by the City Council of Huntington Beach. City paid holidays which fall on Saturday shall be observed the preceding Friday, and those falling on Sunday shall be observed the following Monday. a. In the event that an employee is required to work on a City paid holiday, the holiday hours shall be credited to the employee’s general leave bank. Approval of this transaction shall be handled by the Department Head or designee, in the payroll period that includes the holiday worked. b. If a City paid holiday falls on an employee’s scheduled day off and with approval from the Department Head or designee, the employee may take another day off during the same payroll period as the holiday or opt to be credited with general leave the number of hours of the employee’s regularly scheduled work shift. c. A permanent half-time (1/2) or three quarter-time (3/4) employee shall have City paid holidays paid as time off with a pro-rated amount of four (4) or six (6) hours, respectively. C. Sick Leave 1. Accrual – No employee shall accrue sick leave after December 24, 1999. 2. Credit – Employees shall carry forward their sick leave balance and shall no longer accrue sick leave credit. 3. Usage – Employees may use accrued sick leave for the same purposes for which it was used prior to December 25, 1999. 4. Pay Off At Termination 780 a. Employees on the payroll on November 20, 1978 are entitled to the following sick leave payoff plan: At involuntary termination by reason of disability, or retirement, employees (or in the case of death, their beneficiary) shall be compensated at their then current rate of pay for seventy-five percent (75%) of all unused sick leave accumulated as of July 1, 1972, plus fifty percent (50%) of unused sick leave accumulated subsequent to July 1, 1972, up to a maximum of seven hundred twenty (720) hours of unused, accumulated sick leave, except as provided in paragraph 4 below. Upon termination for any other reason, employees shall be compensated at their then current rate of pay for fifty percent (50%) of all unused, accumulated sick leave, up to a maximum of seven hundred twenty (720) hours of such accumulated sick leave. b. Employees hired after November 20, 1978 shall be entitled to the following sick leave payoff plan: Upon termination, all employees shall be paid, at their then current salary rate, for twenty-five percent (25%) of unused, earned sick leave to four hundred eighty (480) hours accrued, and for thirty-five percent (35%) of all unused, earned sick leave in excess of four hundred eighty (480) hours, but not to exceed seven hundred twenty (720) hours, except as provided in paragraph 4 below. c. Except as provided in paragraph 4d. below, no employee shall be paid at termination for more than seven hundred twenty (720) hours of unused, accumulated sick leave. However, employees may utilize accumulated sick leave on the basis of “last in, first out” meaning that sick leave accumulated in excess of the maximum for payoff may be utilized first for sick leave, as defined in Personnel Rule 18-8. d. Employees who had unused, accumulated sick leave in excess of seven hundred twenty (720) hours as of July 5, 1980, shall be compensated for such excess sick leave remaining on termination under the formulas described in paragraphs 1 and 2 above. In no event shall any employee be compensated upon termination for any accumulated sick leave in excess of the “cap” established by this paragraph (i.e., seven hundred twenty (720) hours plus the amount over seven hundred twenty (720) hours existing on July 5, 1980). Employees may continue to utilize sick leave accrued after that date in excess of such “cap” on a “last in, first out” basis. e. To the extent that any “capped” amount of excess sick leave over seven hundred twenty (720) hours is utilized, the maximum compensable amount shall be correspondingly reduced. (Example: Employee had 1,000 hours accumulated. Six months after July 5, 1980, employee has accumulated another 48 hours. Employee is then sick for 120 hours. Employee’s maximum sick leave “cap” for compensation at termination is now reduced by seventy two (72) hours to nine hundred twenty eight (928) hours). f. Employees electing to participate in the City’s group health ins urance program after retirement can request the premiums to be paid by the City out of any available funds due and owing them under the terms of this agreement for unused sick leave benefits upon retirement. D. Voluntary Catastrophic Leave Donation Program 781 Under certain conditions, an employee may donate leave time to another employee in need. The program is outlined in Exhibit G. E. Bereavement Leave Employees shall be entitled to bereavement leave not to exceed twenty-four (24) work hours in each instance of death in the immediate family. Immediate family is defined as father, mother, sister, brother, spouse, registered domestic partner, children, grandfather, grandmother, stepfather, stepmother, step grandfather, step grandmother, grandchildren, stepsisters, stepbrothers, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother- in-law, sister-in-law, stepchildren, or wards of which the employee is the legal guardian. F. Release Time Notwithstanding any other provisions of this Agreement, the Association and the City agree to continue discussion during the term of the MOU on Release Time for negotiation, including City’s consideration of the number of hours, based on the establishment of a mutually agreed upon written provision for the use of such leave by Association representatives and its members. Such leave shall be limited to use for the purpose of Association business not covered within the scope of legal requirements. It remains the City’s intent to enforce reasonable standards for the administration and control of current Release Time use. ARTICLE XIII - CITY RULES A. Personnel Rules All MOU provisions that supersede the City’s Personnel Rules shall automatically update the City’s Personnel Rules and be incorporated into such rules. B. Employer-Employee Relations Resolution During the term of the agreement, the City and the Association agree to update the Employee-Employer Relations Resolution to reflect current State law. 782 1. Modification of Section 7 – Decertification and Modification a. The City and the Association desire to maintain labor stability within the representational unit to the greatest extent possible, consi stent with the employee's right to select the representative of his or her own choosing. For these purposes, the parties agree that this Agreement shall act as a bar to appropriateness of this unit and the selection of the representative of this unit, except during the month of August prior to the expiration of this Agreement. Changes in bargaining unit shall not be effective until expiration of the MOU except as may be determined by the Personnel Commission pursuant to the procedures outlined below. This p rovision shall modify and supersede the time limits, where inconsistent, contained in Section 7 of the current Employer-Employee Relations Resolution of the City of Huntington Beach. b. The City and the Association have agreed to a procedure whereby the City , by and through the Director of Human Resources, would be entitled to propose a Unit Modification. The Association and the City agree to jointly recommend a modification of the City of Huntington Beach Employer-Employee Relations Resolution (Resolution Number 3335) upon the City having completed its obligation to meet and confer on this issue with all other bargaining units. The proposed change to the Employer-Employee Relations Resolution is as follows: 7.3 Director of Human Resources Motion of Unit Modification - The Director of Human Resources may propose, during the same period for filing a petition for decertification, that an established unit be modified in accordance with the following procedure: i. The Director of Human Resources shall give written notice of the proposed modification(s); to any affected employee organization and any affected employees. ii. The Personnel Commission shall hold a meeting concerning the proposed modification(s) at which time all affected employee organizatio ns and employees shall be heard. iii. Thereafter, the Personnel Commission shall determine the composition of the appropriate unit or units and shall give written notice of such determination to the affected employee organizations and any affected employees. The City Manager, employee organization or employee aggrieved by an appropriate unit determination of the Personnel Commission may, within ten (10) days of notice thereof, request a review of such determination by the City Council. Within thirty (30) days of receipt of a request to review a unit determination of the Personnel Commission the City Council shall review the matter. The City Council’s decision shall be final. iv. Except as provided otherwise in this MOU, the salary, benefit, and working conditions specified by this MOU shall be provided to employees in classifications listed in Exhibit A and have completed or are in the process of completing a 783 probationary period in a permanent position in the competitive service in which the employee regularly works twenty (20) hours or more per week. C. Rules Governing Layoff, Reduction in Lieu of Layoff and Re -Employment 1. Part 1 – Layoff Procedure a. General Provisions 1) Whenever it is necessary, because of lack of work or funds to reduce the staff of a City department, employees may be laid off pursuant to these rules. 2) Whenever an employee is to be separated from the competitive service because the tasks assigned are to be eliminated or substantially changed due to management-initiated changes, including but not limited to automation or other technological changes, it is the policy of the City that steps be taken by the Human Resources Department on an interdepartmental basis to assist such employee in locating, preparing to qualify for, and being placed in other position s in the competitive service. This shall not be construed as a restriction on the City government in effecting economies or in making organizational or other changes to increase efficiency. 3) A department shall reduce staff by identifying which positions wi thin the department are to be eliminated. 4) The employee who has the least City-wide service credit in the class within the department shall have City-wide transfer rights in the class pursuant to Part 1, Section 3, Transfer or Reduction to Vacancies in Lieu of Layoffs, or within the occupational series pursuant to Part 2, Bumping Rights. 5) If a deadline within this procedure falls on a day that City Hall is closed, the deadline shall be the next day City Hall is open. b. Service Credit 1) Service credit means total time of full-time continuous service within the City at the time the layoff is initiated, including probation, paid leave, or military leave. Permanent part-time employees earn service credit on a pro-rata basis. 2) Except as required by law, leaves of absence without pay shall not earn service credit. 3) As between two or more employees who have the same amount of service credit, the employee who has the least amount of service in class shall be deemed to be the least senior employee. c. Transfer or Reduction to Vacancies in Lieu of Layoff 784 1) In lieu of layoff, a transfer within class shall be offered to an employee(s) with the least amount of service credit in the class designated for staff reduction within a department subject to the following: a) The employee has the necessary qualifications to perform the duties of the position. b) The employee shall be given the opportunity, in order of service credit, to accept a transfer to a vacant position in the same class within the City, provided the employee has the necessary qualifications to perform the duties of the position. c) If no position in the same class is vacant, the employee shall be given the opportunity, in order of service credit, to transfer to the position in the same class that is held by an incumbent in another department with the least amount of service credit whose position the employee has the necessary qualifications to perform. 2) If an employee(s) is not eligible for transfer within the employee's class, the employee shall be offered, in order of service credit, a reduction to a vacant position in the next lower class within the City in the occupational series in lieu of layoff provided the employee has the necessary qualifications to perform the duties of the position. 3) If the employee refuses to accept a transfer or reduction pursuant to a. or b., above, the employee shall be laid off. a) If the employee(s) in the class with the least amount of service credit is in the position(s) to be eliminated or displaced by transfer, the employee shall be offered bumping rights, pursuant to Part 2, Bumping Rights. b) Any employee who takes a reduction to a positi on in a. lower class within the occupational series in lieu of layoff shall be placed on the reinstatement/reemployment list(s) pursuant to Part 3. Re-employment. 2. Order of Layoff a. Prior to implementing a layoff, vacant positions that are authorized to be filled shall be identified by City-wide occupational series. If the employee refuses to accept a position pursuant to Section 3. above, the employee shall be laid off. b. No promotional probationary employee or permanent employee within a class in the department shall be laid off until all temporary, nonpermanent part-time and non- promotional probationary employees in the class are laid off. Permanent employees whose positions have been eliminated may exercise citywide bumping rights to a lower class in the occupational series pursuant to Part 2. 785 c. When a position in a class and/or occupational series is eliminated, any employee in the class who is on authorized leave of absence or is holding a temporary acting position in another class shall be included for determining order of service credit and be subject to these layoff procedures as if the employee was in his or her permanent position. 3. Notification of Employees a. The Human Resources Department shall give written notice of layoff to the employee by personal service or by sending it by certified mail to the last known mailing address at least thirty (30) calendar days prior to the effective date of the layoff. Normally notices will be served on employees personally at work. b. Layoff notices may be initially issued to all employees who may be subject to layoff as a result of employees exercising voluntary reduction/bumping rights. c. The notice of layoff shall include the reason for the layoff, the effective date of the layoff, the employee's hire date, and the employee's service credit ranking. The notice shall also include the employee's right to bump the person in a lower class with the least service credit within the occupational series provided the employee possesses the necessary qualifications to successfully perform the duties in the lower class and the employee has more service credit than the incumbent in the lower class. d. The written layoff notice given to an employee shall include notice that he or she has seven (7) calendar days from the date of personal service, or date of delivery of mail if certified, to notify the Director of Human Resources in writing if the employee intends to exercise the employee's bumping rights, if any, pursuant to Part 2, Bumping Rights. e. Whenever practicable, any employee with the least amount of service credit in a lower class within an occupational series which is identified for work force reduction shall also be given written notice that such employee may be bumped pursuant to Part 2. This notice shall include the items referred to in C., above. f. If an employee disagrees with the City's computation of service credit or listed date of hire, the employee shall notify the Director of Human Resources as soon as possible, but in no case later than five (5) calendar days after the personal service or certified mail delivery. Disputes regarding date of hire or service credit shall be jointly reviewed by the Director of Human Resources and the employee and/or the employee's representative as soon as possible, but in no case later than five (5) calendar days from the date the employee notifies the Director of Human Resources of the dispute. Within five (5) calendar days after the dispute is reviewed, the employee shall be notified in writing of the decision. 4. Part 2 – Bumping Rights a. Voluntary Reduction or Bumping in Lieu of Layoff 786 1) A promotional probationary employee or permanent employee who receives a layoff notice may request a reduction to a position in a lower class within the occupational series provided the employee possesses the necessary qualifications to perform the duties of the position. 2) Employees electing reduction under “a” above, shall be reduced to a position authorized to be filled in a lower class within the employee's occupational series. The employee may reduce to a lower class in his/her occupational series by: 1) filling a vacancy in that class, or 2) if no vacancy exists, displacing the employee in the class with the least service credit whose position the employee has the necessary qualifications to perform. A displaced employee shall have bumping rights. 3) An employee who receives a layoff notice must exercise bumping rights within seven (7) calendar days of receipt of the notice as specified in Part 1 - Layoff Procedure. Failure to respond within the time limit shall result in a reputable presumption that the employee does not intend to exercise any right of reduction or bumping to a lower class. The employee must carry the burden of proof to show that the employee's failure to respond within the time limits was reasonable. If the employee establishes that failure to respond within the time limit was reasonable, to the Director of Human Resources satisfaction, the employee shall be permitted to exercise bumping rights, but shall not be reinstated to a paid position until the employee to be bumped has vacated the position. If the employee disagrees with the Director of Human Resources decision, the employee may appeal pursuant to the provisions of Sections 3 and 4 below. b. Reinstatement/Re-Employment Lists Any employee who takes a reduction to a position in a lower class within the occupational series in lieu of layoff shall be placed on tile reinstatement/re - employment list pursuant to Part 3, Re-Employment. c. Qualifications Appeal Any employee who is denied a reduction to a position in a lower class wi thin the occupational series on the basis that the employee does not possess the necessary qualifications to successfully perform the duties of the lower position may appeal the decision. The appeal shall be filed with the Director of Human Resources within five (5) calendar days of the employee's receipt of written notice of the decision and reason(s) for denial. The employee's appeal shall be in writing and shall include supporting facts or documents supporting the appeal. d. Qualifications Appeal Hearing 787 1) Upon receipt of an appeal, the Director of Human Resources shall contact a mediator from the California State Mediation and Conciliation Service to schedule a hearing within two (2) weeks after receipt of the appeal. If the California State Mediation and Conciliation Service is not available within that time fram e, the parties shall mutually select a person who is available within the time frame. If the California State Mediation and Conciliation Service and the person mutually selected are not available within the time frame, the parties shall select the earliest date either is available to conduct the hearing. The parties shall split the cost, if any, of the hearing officer. In addition, the parties shall meet within three (3) workdays to attempt to resolve the dispute. If the dispute remains unresolved, the parties shall endeavor in good faith to submit to the hearing officer a statement of all agreed upon facts relevant to the hearing. 2) Appeal hearings shall be limited to two (2) hours, except as otherwise agreed by the parties or directed by the hearing officer. 3) The hearing officer shall attempt to resolve the dispute by mutual agreement if possible. If no agreement is reached, the hearing officer shall render a decision at the conclusion of the hearing, which shall be final and binding 5. Part 3 – Re-Employment a. Re-Employment 1) Employees who are laid off or reduced in class to avoid layoff shall have their names placed upon a re-employment list, for each class in the occupational series, in seniority order at or below the level of the class from which laid off or reduced. 2) Names of persons placed on the re-employment lists shall remain on the list for two (2) years from the date of layoff or reduction. 3) Vacancies shall be filled from the re-employment list for a class, starting at tile top of the list, providing that the person meets the necessary qualifications for tile position. 4) Names of persons are to be removed from the reemployment list for a class if on two (2) occasions they decline an offer of employment or on two (2) occasions fail to respond to offers of employment in a particular class within five (5) calendar days of receipt of written notice of an offer. Any employee who is dismissed from the City service for cause shall have his or her name removed from all re - employment lists. 5) Re-employment lists shall be available to HBMEO and affected employees upon reasonable request, 6) Qualification appeals involving re-employment rights shall be resolved in the same manner as that identified in Part 2. Section 4. 788 b. Status on Re-Employment 1) Persons re-employed from layoff within a two (2) year period from the date of layoff shall receive the following considerations and benefits: a) Service credit held upon layoff shall be restored, but no credit shall be added for the period of layoff. b) Prior service credit shall be counted toward General Leave accruals. c) Employees may cash in sick leave upon layoff or at any time after layoff in the manner and amount set forth in existing Memoranda of Understa nding for that employee's unit. General Leave shall be paid to an employee when the re-employment list(s) expire(s), if not previously paid. d) Upon reinstatement the employee may have his or her General Leave re- credited by repayment to the City the cashed amount. e) The employee shall be returned to the salary step of the classification held at the time of the layoff and credited with the time previously served at that step prior to being laid off. f) The probationary status of the employee shall resume if incomplete. 2) Employees who have been reduced in class to avoid layoff and are returned within two (2) years to their former class shall be placed at the salary step of the class they held at the time of reduction and have their merit increase eligibility date recalculated. ARTICLE XIV - MISCELLANEOUS A. Physical Examination Employees shall be provided, once every two (2) years, with a City-paid physical examination. Said exam shall be comprehensive in nature and shall include: 1. A complete medical history, physical exam, laboratory testing and review of results by a physician. (See Exhibit D, Physical Exam Description.) 2. A stress EKG will be provided for employees forty (40) years of age or older. No more than one-half (1/2) of the eligible employees shall receive examinations in any one fiscal year. B. Vehicle Policy 1. Approval is required by the City Manager or his/her designee for any City vehicle to be taken home by an employee. 789 2. Approval is required by the City Manager for any individual occupying a classification eligible for the auto allowance to receive the compensation. 3. The auto allowance for qualifying employees is two hundred seven dollars and sixty-nine cents ($207.69) bi-weekly. 4. No unit employee shall have their automobile allowance eliminated until the City’s Fleet Management Policy is re-negotiated. 5. Eligibility for automobile allowance shall be determined in accordance with the City’s Fleet Management Program dated August 1999 and as specified pursuant to Administrative Regulation 407 6. Employees assigned to drive a city vehicle and/or employees receiving an Auto Allowance will participate in the DMV Pull Notice Program. 7. Employees in the following classifications are eligible to receive Auto Allowance:  Assistant to the City Manager  Assistant Fire Marshal  Beach Operations Supervisor  Building Manager  Business Systems Manager  City Engineer  Community Services Manager  Construction Manager  Deputy City Treasurer*  Deputy Director of Economic Development  Detention Administrator  Facilities, Development & Concessions Manager  Facilities Maintenance Supervisor  Fleet Operations Supervisor  General Services Manager  Inspection Manager  Inspection Supervisor  Landscape Maintenance Supervisor  Maintenance Operations Manager  Parking/Camping Facility Supervisor  Police Administrative Division Services Manager  Police Communications Manager  Police Records Administrator  Principal Electrical Inspector  Principal Plumbing Mechanical Inspector  Street Maintenance Supervisor  Transportation Manager  Tree Maintenance Supervisor  Utilities Manager 790  Wastewater Supervisor  Water Distribution Supervisor  Water Production Supervisor  Water Quality Supervisor *Grandfathered incumbent only. C. Deferred Compensation 1. Loan Program In accordance with federal law, employees may borrow from their deferred compensation funds for critical needs such as medical costs, college tuition, or purchase of a home. 2. Deferred Compensation Contribution at Time of Separation In accordance with Internal Revenue Service rules, the value of any unused earned leave benefits may be transferred to deferred compensation at separation (including retirement), but only during the time that the employee is actively employed with the City. The latest opportunity for such transfer must be the pay period prior to the employee’s last day of employment. D. Collection of Payroll Overpayments In the event that a payroll overpayment is discovered and verified, and considering all reasonable factors including the length of time that the overpayment was made and if and when the employee could have reasonably known about such overpayment, the City shall take action to collect from the employee the amount of overpayment(s). Such collection shall be processed by payroll deduction over a reasonable period of time considering the total amount of overpayment. In the event the employee separates from employment during the collection period, the final amount shall be deducted from the last payroll check of the employee. If applicable, the balance due from the employee shall be communicated upon employment separation if the last payroll check does not sufficiently cover the amount due the City. It shall be the responsibility of the employee and the City to periodically monitor the accuracy of compensation payments or reimbursements due to the possibility of a clerical oversight or error. The City reserves the right to also collect compensation overpayments caused by or the result of misinterpretation of a pay provision by non -authorized personnel. The interpretation of all pay provisions shall be administered by the City Manager or designee and as adopted by the City Council. Unauthorized compensation payments shall not constitute a past practice. E. Required Fingerprinting of Employees The City requires all employees who are hired, transferred, or promoted to positions with oversight responsibilities for senior citizens to be fingerprinted for California Department of Justice (DOJ) clearance that require fingerprinting by federal, state or local law(s ). 791 Fingerprinting shall be done in accordance with said law(s). The City may also require employees be fingerprinted if they are transferred, or promoted to positions with oversight responsibilities for senior citizens or oversight responsibilities for confidential, and/or sensitive documents or equipment. F. Acting Assignment Acting assignments are not intended to exceed six (6) months unless extraordinary circumstances warrant an extension as recommended and approved by the Director of Human Resources. Under no circumstances shall an acting assignment exceed one (1) year nor shall it be considered a reclassification or a promotion. Acting pay must be a minimum of 5.5% and the Department Head has the discretion to set compensation at any step on the pay range of the acting class, not to exceed the top step of the range. G. Return to Work Policy The City and Association agree to reopen this agreement to establish a Return to Work Policy for employees who experience industrial and non-industrial injury and/or illness. H. Controlled Substance and Alcohol Testing The City maintains the right to conduct a controlled substance and/or alcohol test during working hours of any employee that it reasonably suspects is under the influence of alcohol or a controlled substance in the workplace. I. Management and Executive Management Relations Committee During the term of this agreement, the City and MEO agree to meet quarterly to discuss ways to improve management and executive management relations. J. Public Employee Disaster Service Worker In accordance with Government Code Section 3100, all Huntington Beach City employees, including all members of this bargaining unit, are required to perform assigned disaster service worker duties in the event of an emergency or a disaster. 792 ARTICLE XV - CITY COUNCIL APPROVAL It is the understanding of the City and the Association that this Memorandum of Understanding is of no force or effect unless and until adopted by resolution of the City Council of the City of Huntington Beach. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding this _____ day of________, 20168. CITY OF HUNTINGTON BEACH A Municipal Corporation HUNTINGTON BEACH MANAGEMENT EMPLOYEES’ ORGANIZATION By: By: Fred A. Wilson City Manager Scott Smith MEO President By: By: Ken DomerLori-Ann Farrell Harrison Assistant City Manager Jane Cameron MEO Vice President By: By: Michele Warren Director of Human Resources Debra Jubinsky Negotiations Team By: By: JoAnn Diaz Principal Human Resources Analyst Jaymie Liu Mary Wilson Negotiations Team By: Approved as to Form: Aaron Peardon OCEA Representative By: Michael E. Gates City Attorney 793 Effective September 27, 2014 Job No Job Description Pay Grade A B C D E 0025 Admin Analyst MEO025 35.67 37.63 39.71 41.89 44.19 0084 Admin Analyst Principal MEO084 44.43 46.87 49.45 52.17 55.04 0089 Admin Analyst Sr MEO089 41.04 43.29 45.67 48.18 50.83 0078 Assistant City Attorney MEO078 63.02 66.48 70.13 73.98 78.05 0132 Assistant City Clerk MEO132 38.26 40.36 42.58 44.92 47.39 0595 Assistant Fire Marshal MEO595 45.78 48.30 50.95 53.76 56.71 0057 Assistant to the City Manager MEO057 47.88 50.51 53.29 56.22 59.31 0123 **Associate Civil Engineer MEO123 41.44 43.72 46.12 48.66 51.34 0071 Associate Planner MEO071 38.83 40.96 43.22 45.60 48.11 0569 Beach Maint Operations Mgr MEO569 49.83 52.57 55.46 58.51 61.73 0044 Beach Operations Supervisor MEO044 40.83 43.07 45.44 47.94 50.58 0064 Budget Analyst Senior MEO064 39.42 41.59 43.88 46.29 48.84 0598 Building Manager MEO598 57.29 60.45 63.77 67.27 70.98 0501 Business Application Supervisor MEO501 51.08 53.90 56.86 59.98 63.28 0500 Business Systems Manager MEO500 56.45 59.55 62.83 66.29 69.93 0070 Chief Criminalist MEO070 52.37 55.25 58.29 61.49 64.88 0024 City Engineer MEO024 65.24 68.83 72.62 76.61 80.82 0092 Claims Supervisor MEO092 42.48 44.82 47.28 49.89 52.63 0125 Code Enforcement Supervisor MEO125 40.62 42.85 45.21 47.70 50.32 0471 Community Relations Officer MEO471 44.43 46.87 49.45 52.17 55.04 0353 Community Services Manager MEO353 49.83 52.57 55.46 58.51 61.73 0097 Construction Manager MEO097 49.83 52.57 55.46 58.51 61.73 0085 Contract Administrator MEO085 42.48 44.82 47.28 49.89 52.63 0045 Criminalist Supervisor MEO045 45.55 48.06 50.70 53.48 56.43 0253 Cultural Affairs Supervisor MEO253 32.29 34.07 35.94 37.92 40.00 0081 Deputy City Attorney I MEO081 41.44 43.72 46.12 48.66 51.34 0080 Deputy City Attorney II MEO080 49.83 52.57 55.46 58.51 61.73 0079 Deputy City Attorney III MEO079 57.29 60.45 63.77 67.27 70.98 0068 Deputy City Engineer MEO068 55.60 58.66 61.89 65.29 68.88 0571 Deputy Dir of Econ Development MEO571 56.45 59.55 62.83 66.29 69.93 0027 Deputy Dir of Recr/Bch Devlpmt MEO027 58.17 61.37 64.74 68.30 72.06 0035 Deputy Director of Public Wrks MEO035 65.56 69.17 72.98 76.99 81.22 0486 Detention Administrator MEO486 41.04 43.29 45.67 48.18 50.83 0039 Econ Development Proj Mgr MEO039 45.31 47.81 50.44 53.21 56.14 794 0580 Energy Project Manager MEO580 45.31 47.81 50.44 53.21 56.14 0474 Facilities, Devel & Conc Mgr MEO474 47.41 50.01 52.76 55.66 58.72 0050 Facilities Maint Supervisor MEO050 40.83 43.07 45.44 47.94 50.58 0879 Finance Manager - Accounting MEO879 51.34 54.16 57.15 60.29 63.60 0889 Finance Manager - Budget MEO889 51.34 54.16 57.15 60.29 63.60 0899 Finance Manager - Fiscal Services MEO899 51.34 54.16 57.15 60.29 63.60 0869 Finance Manager - Treasury MEO869 51.34 54.16 57.15 60.29 63.60 0131 Fire Medical Coordinator MEO131 40.40 42.63 44.98 47.45 50.07 0130 Fire Protection Analyst MEO130 40.40 42.63 44.98 47.45 50.07 0590 Fleet Operations Supervisor MEO590 40.83 43.07 45.44 47.94 50.58 0581 General Services Manager MEO581 55.06 58.09 61.28 64.65 68.20 0498 GIS Manager MEO498 52.64 55.54 58.58 61.81 65.21 0043 Housing Manager MEO043 52.11 54.98 58.00 61.19 64.55 0006 Human Resources Manager MEO006 54.24 57.22 60.36 63.69 67.19 0489 Info Syst Communications Mgr MEO489 52.64 55.54 58.58 61.81 65.21 0200 Info Syst Computer Ops Manager MEO200 52.64 55.54 58.58 61.81 65.21 0038 Info Systems Manager MEO038 56.73 59.85 63.15 66.62 70.28 0075 Inspection Manager MEO075 50.56 53.35 56.28 59.38 62.65 0073 Inspection Supervisor MEO073 43.13 45.50 48.00 50.64 53.42 0251 Investigator MEO251 35.13 37.07 39.11 41.26 43.53 0158 Landscape Architect MEO158 40.40 42.63 44.98 47.45 50.07 0049 Landscape Maint Supervisor MEO049 40.83 43.07 45.44 47.94 50.58 0095 Law Office Manager MEO095 35.67 37.63 39.71 41.89 44.19 0572 Liability Claims Coordinator MEO572 36.93 38.96 41.11 43.38 45.76 0030 Maintenance Operations Mgr MEO030 55.06 58.09 61.28 64.65 68.20 0032 Marine Safety Division Chief MEO032 52.37 55.25 58.29 61.49 64.88 0048 Mechanical Maint Supervisor MEO048 40.83 43.07 45.44 47.94 50.58 0441 Neighbrhd Preservtion Prog Mgr MEO441 50.07 52.82 55.73 58.80 62.03 0490 Network Systems Administrator MEO490 47.16 49.75 52.49 55.38 58.43 0443 Payroll Systems Analyst MEO443 43.13 45.50 48.00 50.64 53.42 0098 Permit & Plan Check Manager MEO098 57.29 60.45 63.77 67.27 70.98 0209 Permit & Plan Check Supervisor MEO209 40.62 42.85 45.21 47.70 50.32 0453 Personnel Analyst MEO453 35.49 37.44 39.50 41.67 43.97 0060 Personnel Analyst Principal MEO060 44.43 46.87 49.45 52.17 55.04 0464 Personnel Analyst Senior MEO464 40.40 42.63 44.98 47.45 50.07 0099 Plan Check Engineer MEO099 48.36 51.02 53.82 56.79 59.91 795 0444 Planning Manager MEO444 52.64 55.54 58.58 61.81 65.21 0625 ***Police Admin Division Srvcs Mgr MEO625 57.29 60.45 63.77 67.27 70.98 0594 Police Admin Services Manager MEO594 45.78 48.30 50.95 53.76 56.71 0022 Police Communications Manager MEO022 41.04 43.29 45.67 48.18 50.83 0094 Police Records Administrator MEO094 41.04 43.29 45.67 48.18 50.83 0028 Principal Accountant MEO028 41.85 44.16 46.58 49.15 51.84 0096 Principal Civil Engineer MEO096 54.79 57.80 60.98 64.33 67.87 0072 Principal Electrical Inspector MEO072 39.23 41.39 43.66 46.07 48.60 0076 Principal Inspector Plb/Mech MEO076 39.23 41.39 43.66 46.07 48.60 0482 Principal Librarian MEO482 39.03 41.18 43.44 45.83 48.35 0074 Principal Planner MEO074 50.07 52.82 55.73 58.80 62.03 0579 Project Manager MEO579 45.31 47.81 50.44 53.21 56.14 0037 Project Manager Assistant MEO037 38.83 40.96 43.22 45.60 48.11 0496 Public Safety Systems Manager MEO496 53.43 56.37 59.47 62.74 66.19 0497 Public Safety Systems Supv MEO497 51.60 54.44 57.43 60.58 63.92 0083 Purchasing & Central Svcs Mgr MEO083 44.66 47.11 49.71 52.44 55.31 0839 Real Estate & Project Manager MEO839 45.31 47.81 50.44 53.21 56.14 0054 Risk Manager MEO054 52.11 54.98 58.00 61.19 64.55 0519 Safety/Loss Prevention Analyst MEO519 40.40 42.63 44.98 47.45 50.07 0069 Senior Civil Engineer MEO069 46.25 48.79 51.47 54.30 57.28 0484 Senior Deputy City Attorney MEO484 60.24 63.55 67.04 70.72 74.62 0499 Senior Info Systems Analyst MEO499 46.93 49.52 52.24 55.11 58.14 0077 Senior Librarian MEO077 33.60 35.45 37.40 39.45 41.62 0036 Senior Planner MEO036 45.31 47.81 50.44 53.21 56.14 0046 Senior Recreation Supervisor MEO046 38.26 40.36 42.58 44.92 47.39 0575 Senior Sprvsr Cultural Affairs MEO575 38.26 40.36 42.58 44.92 47.39 0578 Senior Sprvsr Human Services MEO578 38.26 40.36 42.58 44.92 47.39 0034 Senior Traffic Engineer MEO034 46.25 48.79 51.47 54.30 57.28 0457 Special Events Coordinator MEO457 32.29 34.07 35.94 37.92 40.00 0488 Street Maint Supervisor MEO488 40.83 43.07 45.44 47.94 50.58 0473 Supervisor, Dev & Petro-Chem MEO473 41.23 43.49 45.89 48.41 51.08 0133 Supervisor, Prkng & Cmping Fac MEO133 38.26 40.36 42.58 44.92 47.39 0033 Transportation Manager MEO033 57.01 60.14 63.45 66.94 70.63 0051 Tree Maintenance Supervisor MEO051 40.83 43.07 45.44 47.94 50.58 0483 Utilities Manager MEO483 56.16 59.25 62.51 65.95 69.58 796 0487 Wastewater Supervisor MEO487 40.83 43.07 45.44 47.94 50.58 0052 Water Distribution Supervisor MEO052 40.83 43.07 45.44 47.94 50.58 0053 Water Production Supervisor MEO053 40.83 43.07 45.44 47.94 50.58 0056 *Water Quality Supervisor MEO056 40.83 43.07 45.44 47.94 50.58 *Modified Per Resolution 2014-105 **Modified Per Resolution 2015-60 ***Modified Per Resolution 2016-22 MEO Salary Schedule 2% Effective 9-24-16 Job No Job Description Pay Grade A B C D E 0025 Admin Analyst MEO025 36.38 38.38 40.50 42.73 45.07 0084 Admin Analyst Principal MEO084 45.32 47.81 50.44 53.21 56.14 0089 Admin Analyst Sr MEO089 41.86 44.16 46.58 49.14 51.85 0078 Assistant City Attorney MEO078 64.28 67.81 71.53 75.46 79.61 0132 Assistant City Clerk MEO132 39.03 41.17 43.43 45.82 48.34 0595 Assistant Fire Marshal MEO595 46.70 49.27 51.97 54.84 57.84 0057 Assistant to the City Manager MEO057 48.84 51.52 54.36 57.34 60.50 0123 Associate Civil Engineer MEO123 42.27 44.59 47.04 49.63 52.37 0071 Associate Planner MEO071 39.61 41.78 44.08 46.51 49.07 0569 Beach Maint Operations Mgr MEO569 50.83 53.62 56.57 59.68 62.96 0044 Beach Operations Supervisor MEO044 41.65 43.93 46.35 48.90 51.59 0064 Budget Analyst Senior MEO064 40.21 42.42 44.76 47.22 49.82 0598 Building Manager MEO598 58.44 61.66 65.05 68.62 72.40 0500 Business Systems Manager MEO500 57.58 60.74 64.09 67.62 71.33 0024 City Engineer MEO024 66.54 70.21 74.07 78.14 82.44 0125 Code Enforcement Supervisor MEO125 41.43 43.71 46.11 48.65 51.33 0471 Community Relations Officer MEO471 45.32 47.81 50.44 53.21 56.14 0353 Community Services Manager MEO353 50.83 53.62 56.57 59.68 62.96 0097 Construction Manager MEO097 50.83 53.62 56.57 59.68 62.96 0085 Contract Administrator MEO085 43.33 45.72 48.23 50.89 53.68 0081 Deputy City Attorney I MEO081 42.27 44.59 47.04 49.63 52.37 0080 Deputy City Attorney II MEO080 50.83 53.62 56.57 59.68 62.96 0079 Deputy City Attorney III MEO079 58.44 61.66 65.05 68.62 72.40 0068 Deputy City Engineer MEO068 56.71 59.83 63.13 66.60 70.26 0571 Deputy Dir of Econ Development MEO571 57.58 60.74 64.09 67.62 71.33 0486 Detention Administrator MEO486 41.86 44.16 46.58 49.14 51.85 797 0039 Econ Development Proj Mgr MEO039 46.22 48.77 51.45 54.27 57.26 0580 Energy Project Manager MEO580 46.22 48.77 51.45 54.27 57.26 0474 Facilities, Devel & Conc Mgr MEO474 48.36 51.01 53.82 56.77 59.89 0050 Facilities Maint Supervisor MEO050 41.65 43.93 46.35 48.90 51.59 0879 Finance Manager - Accounting MEO879 52.37 55.24 58.29 61.50 64.87 0889 Finance Manager - Budget MEO889 52.37 55.24 58.29 61.50 64.87 0899 Finance Manager - Fiscal Services MEO899 52.37 55.24 58.29 61.50 64.87 0869 Finance Manager - Treasury MEO869 52.37 55.24 58.29 61.50 64.87 0131 Fire Medical Coordinator MEO131 41.21 43.48 45.88 48.40 51.07 0130 Fire Protection Analyst MEO130 41.21 43.48 45.88 48.40 51.07 0590 Fleet Operations Supervisor MEO590 41.65 43.93 46.35 48.90 51.59 0581 General Services Manager MEO581 56.16 59.25 62.51 65.94 69.56 0498 GIS Manager MEO498 53.69 56.65 59.75 63.05 66.51 0043 Housing Manager MEO043 53.15 56.08 59.16 62.41 65.84 0006 Human Resources Manager MEO006 55.32 58.36 61.57 64.96 68.53 0489 Info Syst Communications Mgr MEO489 53.69 56.65 59.75 63.05 66.51 0200 Info Syst Computer Ops Manager MEO200 53.69 56.65 59.75 63.05 66.51 0075 Inspection Manager MEO075 51.57 54.42 57.41 60.57 63.90 0073 Inspection Supervisor MEO073 43.99 46.41 48.96 51.65 54.49 0251 Investigator MEO251 35.83 37.81 39.89 42.09 44.40 0158 Landscape Architect MEO158 41.21 43.48 45.88 48.40 51.07 0049 Landscape Maint Supervisor MEO049 41.65 43.93 46.35 48.90 51.59 0572 Liability Claims Coordinator MEO572 37.67 39.74 41.93 44.25 46.68 0030 Maintenance Operations Mgr MEO030 56.16 59.25 62.51 65.94 69.56 0032 Marine Safety Division Chief MEO032 53.42 56.36 59.46 62.72 66.18 0490 Network Systems Administrator MEO490 48.10 50.75 53.54 56.49 59.60 0443 Payroll Systems Analyst MEO443 43.99 46.41 48.96 51.65 54.49 0098 Permit & Plan Check Manager MEO098 58.44 61.66 65.05 68.62 72.40 0209 Permit & Plan Check Supervisor MEO209 41.43 43.71 46.11 48.65 51.33 0453 Personnel Analyst MEO453 36.20 38.19 40.29 42.50 44.85 0060 Personnel Analyst Principal MEO060 45.32 47.81 50.44 53.21 56.14 0464 Personnel Analyst Senior MEO464 41.21 43.48 45.88 48.40 51.07 0099 Plan Check Engineer MEO099 49.33 52.04 54.90 57.93 61.11 0444 Planning Manager MEO444 53.69 56.65 59.75 63.05 66.51 0625 Police Admin Division Srvcs Mgr MEO625 58.44 61.66 65.05 68.62 72.40 0594 Police Admin Services Manager MEO594 46.70 49.27 51.97 54.84 57.84 0022 Police Communications Manager MEO022 41.86 44.16 46.58 49.14 51.85 0094 Police Records Administrator MEO094 41.86 44.16 46.58 49.14 51.85 0028 Principal Accountant MEO028 42.69 45.04 47.51 50.13 52.88 798 0096 Principal Civil Engineer MEO096 55.89 58.96 62.20 65.62 69.23 0072 Principal Electrical Inspector MEO072 40.01 42.22 44.53 46.99 49.57 0076 Principal Inspector Plb/Mech MEO076 40.01 42.22 44.53 46.99 49.57 0482 Principal Librarian MEO482 39.81 42.00 44.31 46.75 49.32 0074 Principal Planner MEO074 51.07 53.88 56.84 59.98 63.27 0579 Project Manager MEO579 46.22 48.77 51.45 54.27 57.26 0037 Project Manager Assistant MEO037 39.61 41.78 44.08 46.51 49.07 0496 Public Safety Systems Manager MEO496 54.50 57.50 60.66 63.99 67.51 0497 Public Safety Systems Supv MEO497 52.63 55.53 58.58 61.79 65.20 0839 Real Estate & Project Manager MEO839 46.22 48.77 51.45 54.27 57.26 0054 Risk Manager MEO054 53.15 56.08 59.16 62.41 65.84 0519 Safety/Loss Prevention Analyst MEO519 41.21 43.48 45.88 48.40 51.07 0069 Senior Civil Engineer MEO069 47.18 49.77 52.50 55.39 58.43 0484 Senior Deputy City Attorney MEO484 61.44 64.82 68.38 72.13 76.11 0499 Senior Info Systems Analyst MEO499 47.87 50.51 53.28 56.21 59.30 0077 Senior Librarian MEO077 34.27 36.16 38.15 40.24 42.45 0036 Senior Planner MEO036 46.22 48.77 51.45 54.27 57.26 0575 Senior Sprvsr Cultural Affairs MEO575 39.03 41.17 43.43 45.82 48.34 0578 Senior Sprvsr Human Services MEO578 39.03 41.17 43.43 45.82 48.34 0034 Senior Traffic Engineer MEO034 47.18 49.77 52.50 55.39 58.43 0457 Special Events Coordinator MEO457 32.94 34.75 36.66 38.68 40.80 0488 Street Maint Supervisor MEO488 41.65 43.93 46.35 48.90 51.59 0133 Supervisor, Prkng & Cmping Fac MEO133 39.03 41.17 43.43 45.82 48.34 0033 Transportation Manager MEO033 58.15 61.34 64.72 68.28 72.04 0051 Tree Maintenance Supervisor MEO051 41.65 43.93 46.35 48.90 51.59 0483 Utilities Manager MEO483 57.28 60.44 63.76 67.27 70.97 0487 Wastewater Supervisor MEO487 41.65 43.93 46.35 48.90 51.59 0052 Water Distribution Supervisor MEO052 41.65 43.93 46.35 48.90 51.59 0053 Water Production Supervisor MEO053 41.65 43.93 46.35 48.90 51.59 0056 Water Quality Supervisor MEO056 41.65 43.93 46.35 48.90 51.59 799 RETIREE SUBSIDY MEDICAL PLAN Employees hired on or after October 1, 2014, shall not be eligible for this benefit. An employee who has retired from the City shall be entitled to participate in the City -sponsored medical insurance plans and the City shall contribute toward monthly premiums for coverage in an amount as specified in accordance with this Plan, provided: A. At the time of retirement the employee has a minimum of ten (10) years of continuous full-time City service or is granted an industrial disability retirement; and B. At the time of retirement, the employee is employed by the City; and C. Following official separation from the City, the employee is granted a retirement allowance by the California Public Employees’ Retirement System. The City’s obligation to pay the monthly premium as indicated shall be modified downward or cease during the lifetime of the retiree upon the occurrence of any one of the following: 1. On the first of the month in which a retiree or dependent reaches age 65 or on the date the retiree or dependent can first apply and become eligible, automatically or voluntarily, for medical coverage under Medicare (whether or not such application is made) the City’s obligation to pay monthly premiums may be adjusted downward or eliminated. Benefit coverage at age 65 under the City’s medical plans shall be governed by applicable plan document. 2. In the event of the death of any employee, whether retired or not, the amount of the retiree medical insurance subsidy benefit which the deceased e mployee was receiving at the time of his/her death would be eligible to receive if he/she were retired at the time of death, shall be paid on behalf of the spouse or family for a period not to exceed twelve (12) months. SCHEDULE OF BENEFITS A. Minimum Eligibility for Benefits - With the exception of an industrial disability retirement, eligibility for benefits begin after an employee has completed ten (10) years of continuous full time service with the City of Huntington Beach. Said service must be continuous unless prior service is reinstated at the time of his/her rehire in accordance with the City’s Personnel Rules. B. Disability Retirees - Industrial disability retirees with less than ten (10) years of service shall receive a maximum monthly payment toward the premium for health insurance of $121 (one hundred twenty-one dollars). Payments shall be in accordance with the stipulations and conditions, which exist for all retirees. Payment shall not exceed dollar amount, which is equal to the full cost of premium for employee only. 800 C. Maximum Monthly Subsidy Payments - Payment amounts may be reduced each month as dependent eligibility ceases due to death, divorce or loss of dependent child status. However, the amount shall not be reduced if such reduction would cause insufficient funds needed to pay the full premium for the employee and the remaining dependents. In the event no reduction occurs and the remaining benefit premium is not sufficient to pay the premium amount for the employee and the eligible dependents, said needed excess premium amount shall be paid by the employee. All retirees, including those retired as a result of disability whose number of continuous, full time years of City service prior to retirement City exceeds ten (10), shall be entitled to maximum monthly payment of premiums by the for each year of completed City service as follows: Maximum Monthly Payment for Retirements After: Years of Service Subsidy 10 $ 121 11 136 12 151 13 166 14 181 15 196 16 211 17 226 18 241 19 256 20 271 21 286 22 300 23 315 24 330 25 344 RETIREE SUBSIDY MEDICAL PLAN / MISCELLANEOUS PROVISIONS A. Eligibility: 1. The effective start-up date of the Retiree Subsidy Medical Plan for the various employee groups shall be the first of the month following retirement date. 2. A retiree may change plans, add dependents, etc., during annual open enrollment. The Human Resources Department shall notify covered retirees of this opportunity each year. 801 3. Years of service computed for the Retiree Subsidy Medical Plan are actual years of completed service with the City of Huntington Beach. B. Benefits: 1. Retiree Subsidy Medical Plan includes the available group medical plans offered to active unit members at the time of retirement Managed Health Network (MHN), Prescription Card System (PCS), Orange County Foundation for Medical Care (OCFMC) and Medical Stop Loss insurance[WM1]. 2. City Plans are the primary payer for active employees age 65 and over, with Medicare the secondary payer. Retirees age 65 and over have no City Plan options and are eligible only for Medicare. 3. Premium payments are to be received at least one month in advance of the coverage period. C. Subsidies: 1. The subsidy payments will pay for: a. Retiree Subsidy Medical Plan. b. HMO. c. Part A of Medicare for those retirees not eligible for paid Part A. 2. Subsidy payments will not pay for: a. Part B Medicare. b. Any other employee benefit plan. c. Any other commercially available benefit plan. d. Medicare supplements. D. Medicare: 1. All persons are eligible for Medicare coverage at age sixty five (65). Those with sufficient credit quarters of Social Security will receive Part A of Medicare at no cost. Those without sufficient credited quarters are still eligible for Medicare at age sixty five (65, but will have to pay for Part A of Medicare if the individual elects to take Medicare. In all cases, Part B of Medicare is paid for by the participant. 802 2. When a retiree and his/her spouse are both sixty five (65 or over, and neither is eligible for paid Part A of Medicare, the subsidy shall pay for Part A for each of them or the maximum subsidy, whichever is less. 3. When a retiree at age sixty five (65 is eligible for paid Part A of Medicare and his/her spouse is not eligible for paid Part A, the spouse shall not receive subsidy. When a retiree at age sixty five (65 is not eligible for paid Part A of Medicare and his/her spouse who is also age sixty five (65is eligible for paid Part A of Medicare, the subsidy shall be for the retiree’s Part A only. E. Cancellation: 1. For retirees/dependents eligible for paid Part A of Medicare, the following cancellation provisions apply: a. Coverage for a retiree under the Retiree Subsidy Medical Plan will be eliminated on the first day of the month in which the retiree reaches age sixty five (65. If such retiree was covering dependents under the Plan, dependents will be eligible for state and or federal COBRA continuation benefits effective as of the retiree’s sixty-fifth (65th) birthday. b. Dependent coverage will be eliminated upon whichever of the following occasions comes first: i. After thirty six (36) months of COBRA continuation coverage, or ii. When the covered dependent reaches age sixty five (65) in the event such dependent reaches age sixty five (65) prior to the retiree reaching age sixty five (65). c. At age sixty five (65) retirees are eligible to make application for Medicare. Upon being considered “eligible to make application,” whether or not application has been made for Medicare, the Retiree Subsidy Medical Plan will be eliminated. 2. See provisions under “Benefits,” ”Subsidies,” and “Medicare” for those retirees/dependents not eligible for paid Part A of Medicare. 3. Retiree Subsidy Medical Plan and COBRA participants sha ll be notified of non- payment of premium by means of a certified letter from Employee Benefits in accordance with provisions of the Memorandums of Understanding. 4. A retiree who fails to pay premiums due for coverage and is in arrears for sixty (60) days shall be terminated from the Plan and shall not have reinstatement rights. 803 VEHICLE USE ASSIGNMENT ADMINISTRATIVE REGULATION See Administrative Regulations 804 PHYSICAL EXAMINATION DESCRIPTION I. Complete Health History II. Complete Physical Examination by Physician III. Computer Printout: A. Physiological Tests: 1. Temperature 2. Height 3. Weight 4. Vision 5. Audiometry (Hearing Screening) 6. Blood Pressure 7. Pulse 8. Chest X-Ray 9. EKG 10. History 11. Tonometry (Glaucoma) for patients 35 and over. 12. Spirometry (Breathing) B. Laboratory Tests: 1. Blood Chemistry Screening Tests: SGPT Triglycerides SGOT Glucose Fasting LDH BUN Alk. Phosphatase Creatinine Total Bilirubin Uric Acid Total Protein Calcium Albumin-Serum Inorganic Phosphate Globulin Sodium Cholesterol Postassium 2. Complete Blood Count 3. Urinalysis 4. Stool Test for Blood 5. RPR 6. Pap Smear on Females 7. HDL IV. Examination Findings: A. Consultation with Physician B. Written Report of Findings 805 9/80 WORK SCHEDULE This work schedule is known as the “9/80.” In the event that there is a conflict with the current rules, practices and/or procedures regarding work schedules and leave plans, then the rules listed below shall govern. 9/80 WORK SCHEDULE DEFINED The 9/80 work schedule shall be defined as working nine (9) days for eighty (80) hours in a two - week pay period by working eight (8) days at n ine (9) hours per day and working one (1) day for eight (8) hours (Friday), with a one -hour lunch during each work shift, totaling forty (40) hours in each work week. The 9/80 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. A. Forty (40) Hour Work Week The actual work week is from Friday at mid-shift (p.m.) to Friday at mid-shift (a.m.). No employee working the 9/80 work schedule will be able to flex their Friday start time nor the time they take their lunch break, which will be from 12:00 p.m. to 1:00 p.m. on Fridays. All employee work shifts will start at 8:00 a.m. on their Friday worked. The start of the work week is 12:00 noon Friday. B. Two-Week Pay Period The pay period for employees starts Friday mid-shift (p.m.) and continues for fourteen (14) days until Friday mid-shift (a.m.). During this period, each week is made up of four (4) nine (9) hour work days (thirty-six (36) hours) and one (1) four (4) hour Friday and those hours equal forty (40) work hours in each work week (e.g. the Friday is split into four (4) hours for the a.m. shift, which is charged to work week one and four (4) hours for the p.m. shift, which is charged to work week two). C. A/B Schedules To continue to provide service to the public every Friday, employees are to be divided between two schedules, known as the “A” schedule and the “B” schedule, based upon the departmental needs. For identification purposes, the “A” schedule shall be known as the schedule with a day off on the Friday in the middle of the pay period, or, “off on payday”, the “B” schedule shall have the first Friday (p.m.) and the last Friday (a.m.) off, or “working on payday”. An example is listed below: AM PM AM PM AM PM F F S S M T W Th F F S S M T W Th F F A Schedule 4 4 - - 9 9 9 9 - - - - 9 9 9 9 4 4 B Schedule - - - - 9 9 9 9 4 4 - - 9 9 9 9 - - 806 A/B Schedule Changes Employees cannot change schedules without prior approval of their supervisor, Department Head, and the Director of Human Resources or designee. D. Emergencies All employees on the 9/80 work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions which, in the opinion of the City Manager, Department Head or designee may require such service from any of said employees. LEAVE BENEFITS When an employee is off on a scheduled workday under the 9/80 work schedule, then nine (9) hours of eligible leave per workday shall be charged against the employee’s leave balance or eight (8) hours shall be charged if the day off is a Friday. All leaves shall continue under the current accrual, eligibility, request and approval requirements. 1. General Leave – As stated in Memorandum of Understanding 2. Sick Leave – As stated in Memorandum of Understanding 3. Administrative Leave – As stated in Memorandum of Understanding 4. Bereavement Leave – As stated in Memorandum of Understanding 5. Holidays - As stated in Memorandum of Understanding 6. Jury Duty – The provisions of the Personnel Rules shall continue to apply; however, if an employee is called to serve on jury duty during a normal Friday off, Saturday, or Sunday, or on a City holiday, then the jury duty shall be considered the same as having occurred during the employees day off work; therefore, the employee will receive no added compensation. 807 4/10 WORK SCHEDULE In the event that there is a conflict with the current rules, practices and/or procedures regarding work schedules and leave plans, then the rules listed below shall govern. 4/10 WORK SCHEDULE DEFINED The 4/10 work schedule shall be defined as working eight (8) days for eighty (80) hours in a two week pay period by working eight (8) days (Monday through Thursday, Fridays off) at ten (10) hours per day, plus a one-hour lunch during each work shift, totaling forty (40) hours in each work week. The 4/10 work schedule shall not reduce service to the public, departmental effectiveness, productivity and/or efficiency as determined by the City Manager or designee. All employees on the 4/10 work schedule are subject to be called to work any time to meet any and all emergencies or unusual conditions which, in the opinion of the City Manager, Department Head or designee may require such service from any of said employees. LEAVE BENEFITS When an employee is off on a scheduled workday under the 4/10 work schedule, then ten (10) hours of eligible leave per workday shall be charged again st the employee’s leave balance. All leaves shall continue under the current accrual, eligibility, request, and approval requirements. 1. General Leave – As stated in Memorandum of Understanding 2. Sick Leave – As stated in Memorandum of Understanding 3. Administrative Leave – As stated in Memorandum of Understanding 4. Bereavement Leave – As stated in Memorandum of Understanding 5. Holidays - As stated in Memorandum of Understanding 6. Jury Duty – The provisions of the Personnel Rules shall continue to apply; however, if an employee is called to serve on jury duty during a normal Friday off, Saturday, or Sunday, or on a City holiday, then the jury duty shall be considered the same as having occurred during the employees day off work; therefore, the employee will receive no added compensation. 808 Voluntary Catastrophic Leave Donation Program Leave Request Form Requestor, Please Complete According to the provisions of the Voluntary Catastrophic Leave Donation Program, I hereby request donated Vacation, Administrative or General Leave or Exempt Compensatory Time. MY SIGNATURE CERTIFIES THAT:  A Leave of absence in relation to a catastrophic illness or injury has been approved by my Department; and  I am not receiving disability benefits or Workers' Compensation payments. Name: (Please Print or Type: Last, First, MI) Work Phone: Department: Job Title: Employee ID#: Requester Signature: Date: Department Director Signature of Support: Date: Human Resources Department Use Only End donation date will bridge to: Long Term Disability Medical Retirement beginning Length of FMLA leave ending Return to work End donation date: Human Resources Director Signature: Date signed: 809 Voluntary Catastrophic Leave Donation Program Leave Donation Form Donor, please complete Donor Name: (Please Print or Type: Last, First, MI) Work Phone: Donor Job Title: Type of Accrued Leave: Vacation Compensatory Time General Leave _ _Administrative Leave Number of Hours I wish to Donate: Hours of Vacation Hours of Exempt Compensatory Time Hours of General Leave _____ Hours of Administrative Leave I understand that this voluntary donation of leave credits, once processed, is irrevocable; but if not needed, the donation will be returned to me. I also understand that this donation will remain confidential. I wish to donate my accrued Vacation, Exempt Compensatory Time, Administrative or General Leave hours to the Catastrophic Leave Donation Program for: Eligible recipient employee's name (Last, First, MI): Donor Signature: Date: Please submit to Payroll in the Finance Department. 810 811 812 813 City of Huntington Beach File #:18-429 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Mike Posey, Mayor Subject: Item Submitted by Mayor Posey for the October 15, 2018, City Council Meeting - Exploration of Legal Remedies to hold CalPERS Accountable to their Fiduciary Responsibilities Statement of Issue: The mission of CalPERS is simple, “Deliver retirement and health care benefits to members and their beneficiaries.” This mission is slowly being eroded as investment strategies championed by the California Legislature, like Senate Bill 964 (Allen), seek to direct CalPERS and CalSTRS to make investments that are “socially and environmentally” responsible. SB 964 is just one example of the environmental, social, governance investment strategies championed by the California Legislature and pushed onto the governing Board of CalPERS. The CalPERS website sites their pension beliefs one of which states, “as a leader, CalPERS should advocate for retirement security for America’s workers and for the value of defined benefit plans…” How can the Board achieve these goals when they are forced to direct their participants funds into investments that often do not yield profits that will make their promised returns? Thus, passing the buck onto municipalities and special districts who are left to make cuts to services to fund their mistakes. Recommended Action: Direct the City Attorney to explore any and all legal remedies to hold CalPERS accountable to their fiduciary responsibilities of providing a sustainable retirement system for those that serve California. Return to City Council within 90 days with a proposed strategy. City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™814 City of Huntington Beach File #:18-430 MEETING DATE:10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Mike Posey, Mayor Subject: Item Submitted by Mayor Posey for the October 15, 2018, City Council Meeting - Filing of Claim with the Commission on State Mandates Related to the Passage of Assembly 109 Statement of Issue: In 2011, the California Legislature passed the Public Safety Realignment Act (Assembly Bill 109) that transferred responsibility for supervising specific low-level inmates and parolees from the California Department of Corrections and Rehabilitation to counties. This Act tasked local government at the county level with developing a new approach to reducing recidivism among its population. AB 109 took effect October 1, 2011, and realigned three major areas of the criminal justice system: 1. Transferred the location of incarceration for individuals convicted of lower level specified non- violent, non-serious, non-sex offences from state prison to local county jail; 2. Transferred responsibility from the State to the County for post-release supervision of those released from prison after having served a sentence for a non-violent, non-serious, non-sex offense by creating a new category of supervision called Post-Release Community Supervision; and 3. Transferred the housing responsibility for parole and PRCS revocations to local jail custody. These changes to the criminal justice system resulted in an influx of so called “non-violent” offenders into our community. The impact of AB 109 was that while it decreased the prison population it increased the county jail population and many local jurisdictions saw an increase in property crimes. This realignment has caused local jurisdictions to experience an increase in public safety costs related to the influx of offenders. While the actual amount is unknown at this time, it would be prudent for the City to analyze the costs related to the implementation of AB 109. Recommended Action: Direct the City Manager and the Police Chief to conduct an analysis of the existence of financial distress placed upon the City due to the implementation of Assembly Bill 109 and report back to the City Council within 90 days. If such financial distress exists, the City should investigate whether this would qualify as a Test Claim with the Commission on State Mandates. City of Huntington Beach Printed on 10/10/2018Page 1 of 1 powered by Legistar™815