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HomeMy WebLinkAbout2022-02-01 Agenda Packet - Hybrid-Revised AGENDA - Revised City Council/Public Financing Authority Regular Meeting Tuesday, February 1, 2022 Closed Session – 5:00 PM Regular Meeting – 6:00 PM MAYOR AND CITY COUNCIL BARBARA DELGLEIZE, Mayor MIKE POSEY, Mayor Pro Tem RHONDA BOLTON, Councilmember KIM CARR, Councilmember DAN KALMICK, Councilmember NATALIE MOSER, Councilmember ERIK PETERSON, Councilmember Council Chambers 2000 Main Street Huntington Beach, CA 92648 -or- Virtual via Zoom Webinar STAFF SEAN JOYCE, Interim City Manager MICHAEL E. GATES, City Attorney ROBIN ESTANISLAU, City Clerk ALISA BACKSTROM, City Treasurer IN-PERSON PUBLIC PARTICIPATION/ZOOM ACCESS: In keeping with the Governor’s mandate to limit in-person gatherings that can spread COVID-19, the Tuesday, February 1, 2022 meeting remains virtually accessible. In addition, the Council Chambers will be open for public attendance to provide public comments only. Members of the public wishing to attend the meeting in person are required to wear a face covering due to the state mask mandate. Assembly Bill 361 (AB 361) authorizes public meetings to take place via teleconference (i.e., virtual using Zoom), or in person if in part, State and Local officials continue to recommend measures to promote social distancing. In addition to this hybrid format, alternate ways to view City Council meetings live or on-demand remain: livestreamed on HBTV Channel 3 (replayed on Wednesday’s at 10:00 a.m. and Thursday’s at 6:00 p.m.); live and archived meetings for on-demand viewing accessed from https://huntingtonbeach.legistar.com/calendar; or, from any Roku, Fire TV or Apple device by downloading the Cablecast Screenweave App and searching for the City of Huntington Beach channel. PUBLIC COMMENTS: To ensure the public’s right to fully participate in providing meaningful public comments at the February 1, 2022 City Council meeting, the Council Chambers will be open for public attendance to provide public comments on agendized or non-agendized items. Social distancing measures will be in place, and once a participant has made a public comment, the participant will be asked to exit the Council Chambers. Individuals may also provide a comment from a virtual location by entering Zoom Webinar ID 971 5413 0528 via computer device, or by phone at (669) 900-6833. The Zoom Webinar can be accessed here: https://huntingtonbeach.zoom.us/j/97154130528. Instructions for those utilizing computer or telephone devices to request to speak are provided in each section of the agenda where public comments are accepted. Members of the public unable to personally participate in the meeting but interested in communicating with the City Council on agenda-related items are encouraged to submit a written (supplemental) communication via email at SupplementalComm@Surfcity-hb.org, or City.Council@surfcity-hb.org. Supplemental Communications are public record, and if received by 2:00 PM on the day of the meeting, will be distributed to the City Council prior to consideration of agenda- related items, posted to the City website, and announced, but not read, at the meeting. Communications received following the 2:00 PM deadline will be incorporated into the administrative record. MEETING 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. City Council/Public Financing Authority AGENDA February 1, 2022 5:00 PM - COUNCIL CHAMBERS CALL TO ORDER ROLL CALL Peterson, Bolton, Posey, Delgleize, Carr, Moser, Kalmick ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEMS (3 Minute Time Limit) – At approximately 5:00 PM, individuals wishing to provide a comment on item(s) scheduled for Closed Session may do so either in person by filling out a Request to Speak form delivered to the City Clerk, via computer through Zoom Webinar ID 971 5413 0528, or Zoom Webinar by phone by calling (669) 900-6833. Once the Mayor opens Public Comments, in-person participants will be called to speak first. Zoom Webinar participants wishing to speak will be provided a 15-minute window to select the “Raise Hand” feature in the Webinar Controls section. Attendees entering the Webinar and requesting to speak by phone can enter *9 to enable the “Raise Hand” feature, followed by the *6 prompt that unmutes their handheld device microphone. Individuals will be prompted to speak when the Clerk announces their name or the last three digits of their phone number. All speakers are encouraged, but not required to identify themselves by name. Each speaker may have up to 3 minutes unless the volume of speakers warrants reducing the time allowance. RECESS TO CLOSED SESSION CLOSED SESSION ANNOUNCEMENT(S) 1. 22-089 Mayor Delgleize to Announce: Pursuant to Government Code § 54957.6, the City Council takes this opportunity to publicly introduce and identify designated labor negotiator Sean Joyce, Interim City Manager; also in attendance: Brittany Mello, Director of Administrative Services, who will be participating in today's Closed Session discussions regarding labor negotiations with: Non-Represented (Non-Associated) Employees (NA) CLOSED SESSION 2. 22-085 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Name of case: Davis (Kesean Harvey) v. City of Huntington Beach, et al., USDC Case No.: 8:21-cv-01032-JVS (ADSx). City Council/Public Financing Authority AGENDA February 1, 2022 3. 22-095 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION. Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of Section 54956.9: Number of cases, one (1) - Threat ***Revised of Litigation re Oil Spill Air Show. 4. 22-088 Pursuant to Government Code § 54957.6, the City Council shall recess into Closed Session to meet with its designated labor negotiator: Sean Joyce, Interim City Manager; also in attendance: Brittany Mello, Director of Administrative Services, regarding the following: Non-Represented (Non-Associated) Employees (NA). 6:00 PM – COUNCIL CHAMBERS RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING ROLL CALL Peterson, Bolton, Posey, Delgleize, Carr, Moser, Kalmick 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. 5. 21-963 Rev. Steve Wright of St. Peter’s by the Sea Presbyterian Church, and member of the Greater Huntington Beach Interfaith Council CLOSED SESSION REPORT BY CITY ATTORNEY AWARDS AND PRESENTATIONS 6. 22-083 Mayor Delgleize to proclaim February as Black History Month 7. 22-063 Mayor Delgleize to call on Orange County Mosquito and Vector Control District Communications Director, Lora Young to provide information on the District’s Sterile Insect Technique Technology program and recognize Mayor Pro Tem Posey for his service as 2021 OCMVCD President of the Board of Trustees ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) PUBLIC COMMENTS (3 Minute Time Limit) - At approximately 6:00 PM, individuals wishing to City Council/Public Financing Authority AGENDA February 1, 2022 provide a comment on agendized or non-agendized items may do so either in person by filling out a Request to Speak form delivered to the City Clerk, via computer through Zoom Webinar ID 971 5413 0528, or Zoom Webinar by phone by calling (669) 900-6833. Once the Mayor opens Public Comments, in-person participants will be called to speak first. Zoom Webinar participants wishing to speak will be provided a 15-minute window to select the “Raise Hand” feature in the Webinar Controls section. Attendees entering the Webinar and requesting to speak by phone can enter *9 to enable the “Raise Hand” feature, followed by the *6 prompt that unmutes their handheld device microphone. Individuals will be prompted to speak when the Clerk announces their name or the last three digits of their phone number. After a virtual speaker concludes their comment, their microphone will be muted but they may remain in Webinar attendance for the duration of the meeting. All speakers are encouraged, but not required to identify themselves by name. Each speaker may have up to 3 minutes unless the volume of speakers warrants reducing the time allowance. While the City Council welcomes public involvement and free speech, it rejects comments from anyone that are discriminatory, defamatory or otherwise not protected speech. Those comments will not inform nor be considered by the City Council and may be cause for the Mayor to interrupt the public speaker. Such public comments will not be consented to or otherwise adopted by the City Council in its discussions and findings for any matter tonight. COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES CITY MANAGER'S REPORT 8. 22-076 Re-scope of Huntington and Talbert Channels Effort CITY TREASURER'S REPORT 9. 22-036 Receive and File the City Treasurer's December 2021 Quarterly Investment Summary Report Recommended Action: Receive and File the City Treasurer’s Quarterly Investment Report for December 2021, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach . CONSENT CALENDAR 10. 22-033 Approve and Adopt Minutes Recommended Action: Approve and adopt the City Council/Public Financing Authority regular meeting minutes dated January 18, 2022, as written and on file in the office of the City Clerk. City Council/Public Financing Authority AGENDA February 1, 2022 11. 22-031 Receive and file the 2022 annual update of the Council Manual digitally compiled to incorporate policy information previously adopted by Resolution No. 2019-09 Recommended Action: Receive and file the updated Council Manual 2022. 12. 22-064 Adopt Resolution No. 2022-03 approving the 2022 Investment Policy Recommended Action: Adopt Resolution No. 2022-03, “A Resolution of the City Council of the City of Huntington Beach Approving the Statement of Investment Policy 2022.” 13. 22-075 Consider positions on legislation pending before the State Legislature, as recommended by the Intergovernmental Relations Committee (IRC) Recommended Action: Approve a letter of support for Assembly Bill 1595 (Quirk-Silva & Choi): Veterans Cemetery. 14. 22-001 Approve and authorize execution of a Professional Service Agreement for the preparation of an Americans with Disabilities Act (ADA) Self-Evaluation and Transition Plan with Disability Access Consultants (DAC) Recommended Action: Approve and authorize the Mayor and City Clerk to execute “Professional Services Contract Between the City of Huntington Beach and Disability Access Consultants, LLC for ADA Self-Evaluation and Transition Plan.” 15. 22-069 Approve and authorize execution of a Professional Services Contract with K Street Consulting, LLC for Legislative Advocacy and Grant Management Services Recommended Action: Approve and authorize the Mayor and City Clerk to execute a “Professional Services Contract Between the City of Huntington Beach and K Street Consulting , LLC for Legislative Advocacy and Grant Management Services.” 16. 22-061 Approve and authorize execution of Amendment No. 5 to Agreement with Biggs Cardosa Associates, Inc. (BCA) for bridge design services in the amount of $301,857.00, for a total contract amount not to exceed $3,115,654.00 and extending the contract term 3 years Recommended Action: Approve and authorize the Mayor and City Clerk to execute “Amendment No. 5 to Agreement Between the City of Huntington Beach and Biggs Cardosa Associates, Inc. for Bridge Design Services.” City Council/Public Financing Authority AGENDA February 1, 2022 17. 22-062 Approve the purchase of 23 replacement vehicles from National Auto Fleet Group using lease financing and authorize the City Manager to enter into all documents necessary to lease finance the purchase of the vehicles Recommended Action: Approve the purchase of 23 replacement vehicles utilizing 5-year lease financing at an interest rate not to exceed 2.375 percent and authorize the City Manager to enter into all documents necessary to lease finance the purchase of the vehicles and take all administrative and budgetary actions necessary to complete the purchase and financing. ADMINISTRATIVE ITEMS 18. 22-074 Orange County Power Authority (OCPA) Default Rate Selection Recommended Action: Select Basic Choice, Smart Choice, or 100% Renewable Choice as the default energy product offering for residential and commercial customers in Huntington Beach, and consider the same or a different energy product offering (and corresponding rate and environmental benefits) for the City’s municipal energy accounts. COUNCILMEMBER ITEMS 19. 22-079 Submitted by Mayor Delgleize, Councilmember Moser and Councilmember Bolton - Consider support of a Blood Drive in collaboration with the UCI Health Bloodmobile, and direct staff to coordinate with UCI Health to host the event at a City Facility Recommended Action: We are recommending the following: 1. Direct staff to collaborate with UCI Health to host a blood drive at a City of Huntington Beach facility tentatively on March 5, 2022; and, 2. Direct staff to highlight and promote resources for additional opportunities for the community to participate in blood drives. COUNCILMEMBER COMMENTS (Not Agendized) ADJOURNMENT A Strategic Planning Workshop has been scheduled for 9:00 AM, Friday, February 4, 2022 at Huntington Beach Central Library, Rooms C & D, 7111 Talbert Avenue, Huntington Beach, California. The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Tuesday, February 15, 2022, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street, Huntington Beach, California. City Council/Public Financing Authority AGENDA February 1, 2022 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 of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-089 MEETING DATE:2/1/2022 Mayor Delgleize to Announce: Pursuant to Government Code § 54957.6, the City Council takes this opportunity to publicly introduce and identify designated labor negotiator Sean Joyce, Interim City Manager; also in attendance: Brittany Mello, Director of Administrative Services, who will be participating in today's Closed Session discussions regarding labor negotiations with: Non-Represented (Non-Associated) Employees (NA) City of Huntington Beach Printed on 1/26/2022Page 1 of 1 powered by Legistar™8 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-085 MEETING DATE:2/1/2022 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Name of case: Davis (Kesean Harvey) v. City of Huntington Beach, et al., USDC Case No.: 8:21-cv-01032-JVS (ADSx). City of Huntington Beach Printed on 1/26/2022Page 1 of 1 powered by Legistar™9 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-095 MEETING DATE:2/1/2022 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION. Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of Section 54956.9: Number of cases, one (1) - Threat of Litigation re Oil Spill. City of Huntington Beach Printed on 1/26/2022Page 1 of 1 powered by Legistar™10 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-088 MEETING DATE:2/1/2022 Pursuant to Government Code § 54957.6, the City Council shall recess into Closed Session to meet with its designated labor negotiator: Sean Joyce, Interim City Manager; also in attendance: Brittany Mello, Director of Administrative Services, regarding the following: Non- Represented (Non-Associated) Employees (NA). City of Huntington Beach Printed on 1/26/2022Page 1 of 1 powered by Legistar™11 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:21-963 MEETING DATE:2/1/2022 Rev. Steve Wright of St. Peter’s by the Sea Presbyterian Church, and member of the Greater Huntington Beach Interfaith Council City of Huntington Beach Printed on 1/26/2022Page 1 of 1 powered by Legistar™12 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-083 MEETING DATE:2/1/2022 Mayor Delgleize to proclaim February as Black History Month City of Huntington Beach Printed on 1/26/2022Page 1 of 1 powered by Legistar™13 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-063 MEETING DATE:2/1/2022 Mayor Delgleize to call on Orange County Mosquito and Vector Control District Communications Director, Lora Young to provide information on the District’s Sterile Insect Technique Technology program and recognize Mayor Pro Tem Posey for his service as 2021 OCMVCD President of the Board of Trustees City of Huntington Beach Printed on 1/26/2022Page 1 of 1 powered by Legistar™14 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-076 MEETING DATE:2/1/2022 Re-scope of Huntington and Talbert Channels Effort City of Huntington Beach Printed on 1/26/2022Page 1 of 1 powered by Legistar™15 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-036 MEETING DATE:2/1/2022 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Sean Joyce, Interim City Manager PREPARED BY:Alisa Backstrom, City Treasurer Subject: Receive and File the City Treasurer's December 2021 Quarterly Investment Summary Report Statement of Issue: Receive and File the City Treasurer’s Quarterly Investment Report for December 2021, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Financial Impact: Not Applicable Recommended Action: Receive and File the City Treasurer’s Quarterly Investment Report for December 2021, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Alternative Action(s): Deny or Critique Quarterly Report Analysis: Not Applicable Environmental Status: Not Applicable Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Treasurer’s Quarterly Investment Report for December 2021 2. Treasurer’s PowerPoint Presentation for December 2021 City of Huntington Beach Printed on 1/26/2022Page 1 of 1 powered by Legistar™16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 CITY OF HUNTINGTON BEACH QUARTERLY INVESTMENT REPORT CITY TREASURER, ALISA BACKSTROM, MBA, CCMT, CPFIM QUARTER ENDED: DECEMBER 31, 2021 50 INVESTMENT PORTFOLIO –SUMMARY: Investment Type $ in 000's Market Value Book Value Federal Agency Issues 122,464$ 122,693$ Local Agency Investment Fund (LAIF) 8,679$ 8,679$ Treasury Securities 36,872$ 36,976$ Medium Term Notes - IADB/IBRD 35,028$ 35,214$ Corporate Bonds 47,377$ 47,028$ OC Investment Pool 50,508$ 50,508$ TOTAL 300,928$ 301,098$ AS OF: December 31, 2021 51 INVESTMENT PORTFOLIO –INVESTMENTS BY TYPE: 41%17%16%12%11%3% Federal Agencies OC Investment Pool Corporate Bonds Treasuries MTN-Supras LAIF 52 INVESTMENT PORTFOLIO –QUARTERLY ACTIVITY (OCT-DEC): Purchases: (In 000's) Federal Agency Issues 28,650$ Corporate Bonds 5,000$ Treasury Securities 13,000$ TOTAL 46,650$ Maturities/Calls/Withdrawals in 000's: Local Agency Investment Fund (LAIF) 4,000$ US Bank Sweep First AM Gov*5,044$ OC Investment Pool 15,000$ TOTAL 24,044$ *Sweep account from Oct, no longer utilized.53 Current Year -Month Dec 2021:$260,935 vs. budget: $100,000 Current Fiscal Year-to-date Through 12/31: $1,559,409 vs. budget:$600,000 Effective Rate of Return Dec 2021: 1.13% Fiscal Year-to-date: 1.12% Benchmark Dec 2021: 0.20% 12-month moving average 1.5-year Treasury INVESTMENT PORTFOLIO –EARNINGS: 54 INTEREST RATES –US TREASURY RATES DECEMBER 31, 2020 –DECEMBER 31, 2021 5-year US Treasury 1.23% at 12/31 2-year US Treasury 0.68% at 12/31 55 SELECTED INVESTMENT POLICY COMPLIANCE REQUIREMENTS: INVESTMENT TYPE MAXIMUM MATURITY MAXIMUM SPECIFIED % OF PORTFOLIO/ MAXIMUM PER ISSUER MINIMUM QUALITY REQUIREMENTS IN COMPLIANCE? U.S. Treasury Obligations 5 years None None YES U.S. Government Agency Obligations 5 years None None YES Supranationals 5 years 10%"AA" Rating YES Corporate Notes 5 years 30%/10%"A" Rating YES Local Agency Investment Fund (LAIF) N/A Up to $75,000,000 None YES Orange County Investment Pool (OCIP) N/A Up to $75,000,000 None YES Maximum Maturities No more than 50% of portfolio maturing over 4 years.YES (Requirements are at purchase)56 SUMMARY: Safety –No principal losses Liquidity –Sufficient funds for operations Market rate of return –1.13% December, 1.12% Fiscal Year-to- date (upward trend) Prudently managed –No compliance issues Positive contributor to City –Earnings of $1,559,409 fiscal year- to -date to be utilized for operating and other expenses 57 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-033 MEETING DATE:2/1/2022 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 of January 18, 2022, require review and approval. Financial Impact: None. Recommended Action: Approve and adopt the City Council/Public Financing Authority regular meeting minutes dated January 18, 2022, 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. January 18, 2022 CC/PFA regular meeting minutes City of Huntington Beach Printed on 1/26/2022Page 1 of 1 powered by Legistar™58 Minutes City Council/Public Financing Authority City of Huntington Beach Tuesday, January 18, 2022 5:00 PM — Closed Session 6:00 PM — Regular Meeting Virtual Location Huntington Beach, California 92648 A video recording of the 5:00 PM and 6:00 PM portions of this meeting is on file in the Office of the City Clerk, and archived at www.surfcity-hb.org/government/agendas/ 5:00 PM — VIRTUAL LOCATION CALLED TO ORDER — 5:00 PM ROLL CALL Present: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick Absent: None ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS FOR CLOSED SESSION ITEMS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications received by her office following distribution of the Council Agenda packet: Closed Session #3 (22-049) Letter on behalf of City Attorney Michael Gates received from Derek P. Cole of Cole Huber LLP. PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEMS (3 Minute Time Limit) — None A motion was made by Posey, with a second by Carr, to recess to Closed Session for Items 1 — 4. With no objections, the motion passed. RECESSED TO CLOSED SESSION — 5:02 PM CLOSED SESSION 1. 22-037 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Name of case: Hernandez (Angela) v. City of Huntington Beach, et al., OCSC Case No. 30-2020-01137506. 2. 22-038 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Name of case: Emmer (Cynthia) v. City of Huntington Beach, OCSC Case No. 30-2020-01145487. 59 City Council/PFA Regular Meeting Minutes January 18, 2022 Page 2 of 11 3. 22-049 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION. Significant Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of Section 54956.9: Litigation threatened in December 21, 2021 letter from Cole/Huber, LLP. 4. 22-058 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Name of case: Malaszewski (Aaron) v. City of Huntington Beach, et al., OCSC Case No.: 30-2021-01206676. 6:00 PM — VIRTUAL LOCATION RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 6:00 PM ROLL CALL Present: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick Absent: None PLEDGE OF ALLEGIANCE — Led by Councilmember Carr 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. 5. 21-962 Marsha Rechsteiner, of Saints Simon and Jude Catholic Church, and member of the Greater Huntington Beach Interfaith Council CLOSED SESSION REPORT BY CITY ATTORNEY — None AWARDS AND PRESENTATIONS 6. 22-025 Mayor Delgleize presented commendation to 15-year-old Huntington Beach resident, Jack Rico, the youngest graduate ever at the University of Nevada, Las Vegas Mayor Delgleize invited Jack Rico to share his story. Jack explained his struggle in school during early years, leading to a decision by his mother for homeschooling in the third grade. At the time his mom felt he needed more educationally, she and Jack decided he should enroll in Fullerton College and take university-level courses. Jack eventually transferred to the University of Nevada on full scholarship and received his Bachelor's Degree in History in December 2021. Mayor Delgleize displayed Jack’s Certificate of Commendation, and shared her hopes to present the acknowledgment to him in person in the very near future. 7. 22-026 Mayor Delgleize presented commendations to Murdy Community Center Recreation Leader Valerie Sanudo, and Parking and Camping Assistant Monica Candelario for their individual heroic actions Mayor Delgleize invited Camping Assistant Monica Candelario to describe the situation where she assisted an individual who had a mental health crisis until appropriate support services could respond. 60 City Council/PFA Regular Meeting Minutes January 18, 2022 Page 3 of 11 Mayor Delgleize invited Murdy Community Center Recreation Leader Valerie Sanudo to describe her experience of coming to the aid of a park visitor who was found unconscious in the outside restrooms until the Fire Department arrived. Ms. Sanudo explained that she was trained in CPR at the age of 15, but this was the first time she used that training in a real-life situation. Mayor Delgleize displayed Certificate of Commendations for Ms. Candelario and Ms. Sanudo, and shared her hopes to present their acknowledgments in person in the very near future. 8. 22-027 Mayor Delgleize presented the Mayor’s HB Excellence Award for the month of January to Richard Crosthwaite, Media Services Specialist, Community and Library Services Department Mayor Delgleize presented the Mayor's HB Excellence Award to Richard Crosthwaite, Media Services Specialist, to acknowledge his humility, social awareness, passion, exceptionality, integrity and, according to his co-workers, always being team oriented. Mr. Crosthwaite serves the public and staff as Library Specialist, Security Staff supervisor, and assisting with food distribution services for senior residents. Mayor Delgleize displayed Mr. Crosthwaite’s Mayor’s Award, and shared her hopes to present his acknowledgment in person in the very near future. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications received by her office following distribution of the Council Agenda packet: Consent Calendar #9 (22-1014) Inter-departmental Communication Memo received from Robin Estanislau, City Clerk, regarding minor corrections to the December 21, 2021, City Council/Public Financing Authority meeting minutes. #10 (22-006) One (1) email communication regarding the annual review of the City Code of Ethics. Mayor Delgleize announced that a recent resident survey, regarding the proposed construction of the Trails to the Sea project, produced overwhelming public opposition. Therefore, she informed the public of her plans to ask her City Council colleagues to reconsider and support exploration of another concept at a future meeting. PUBLIC COMMENTS (2 Minute Time Limit) — 30 Call-In Speakers 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. Carol Rohr, President of the Skandia Homeowners Association, was invited to speak and shared details related to the recent purchase of the mobile home park by what she described as a predatory investment group, IPG, which resulted in plummeting home values and unfair space rental increases. Ms. Rohr asked City Council to ensure an amendment to City Charter Section 803 be placed on the November 2022 ballot which would create a carve out for mobile home parks as a fair and equitable solution to the problem. (00:33:19) Bob Mark, a resident of Huntington Beach for over 35 years, was invited to speak and stated his opposition to the Trails to the Sea project. (00:35:15) 61 City Council/PFA Regular Meeting Minutes January 18, 2022 Page 4 of 11 Guy Morrow, speaking on behalf of neighbors at Skandia Mobile Home Park, was invited to speak and shared devastating cost increases for the mostly fixed-income residents since the Park was purchased by an investment group in August 2021. Mr. Morrow asked that a Rent Stabilization Ordinance be presented to the voters in November 2022. (00:39:03) Jeanne Farrens, a resident of Skandia Mobile Home Park and retired middle school teacher, was invited to speak and shared devastating cost increases since the Park was purchased recently by an investment group, which she suspects may result in many current residents losing their homes. (00:41:20) Suzan Neil, a resident of Skandia Mobile Home Park, was invited to speak and asked that City Council place a measure on the November 2022 ballot which would amend City Charter Section 803 with a carve out for mobile home parks. (00:45:18) Michael Lugenbuehl, a resident of Skandia Mobile Home Park, was called to speak and shared his opinions on what he described as predatory increases by the investment group that recently purchased the Park, and stated fixed income residents cannot afford to stay in their homes. (00:47:25) John Hennessy, speaking on behalf of the veterans living in Skandia Mobile Home Park, was invited to speak and asked that City Council ensure a mobile home carve out for City Charter Section 803 be placed on the November 2022 ballot. (00:50:24) Robin Locklin, a resident of Skandia Mobile Home Park, was invited to speak and stated she cannot sign a lease with an investment group that appears to be putting their profits above the welfare of struggling seniors. Ms. Locklin asked that the City Council ensure a mobile home carve out in City Charter Section 803 be placed on the November 2022 ballot. (00:51:57) Lisa Yorath, a resident of Skandia Mobile Home Park who was born and raised in Huntington Beach, was invited to speak and described the unacceptable new lease requirement options from IPG, and requested that City Council support rent stabilization for senior parks in Huntington Beach. (00:53:39) Cathy Crossmire, a resident of Skandia Mobile Home Park, was invited to speak and described increased lease fees which are beyond the capacity to pay for anyone living on a fixed income. Ms. Crossmire asked that City Council ensure an amendment to City Charter Section 803 for a carve out for mobile home parks be placed on the November 2022 ballot. (00:55:58) Sheryl Engstrom, a resident of Skandia Mobile Home Park, was invited to speak and described increased lease fees which are beyond the capacity to pay for anyone living on a fixed income. Ms. Engstrom asked that City Council ensure that a Rent Stabilization Ordinance (RSO) be placed on the November 2022 ballot. (00:59:11) Dan Pantano, a resident of Huntington Beach for 35 years and currently living in Skandia Mobile Home Park, was called to speak and asked that City Council support efforts to ensure rent protection for residents living on fixed incomes. (01:00:57) Sheila Lugenbuehl, a resident of Skandia Mobile Home Park, was invited to speak and stated as homeowners who pay property taxes, the fair way to address the current situation is to amend City Charter Section 803 to create a carve out for mobile home parks. (01:03:18) David Reynoso, a resident of Skandia Mobile Home Park, was invited to speak and asked that City Council intervene to help protect quality of life for residents on fixed incomes. (01:04:41) 62 City Council/PFA Regular Meeting Minutes January 18, 2022 Page 5 of 11 Karen Sybrandt, a resident of Skandia Mobile Home Park, was called to speak and asked for City Council's support to stop the unaffordable rent increases being implemented by IPG. (01:06:20) Patricia Goodman was invited to speak and welcomed Interim City Manager Joyce and Police Chief Parra to the leadership team for Huntington Beach. Ms. Goodman congratulated Mayor Barbara for accepting the challenge and thanked former Mayor Carr for her extraordinary leadership during the past year. Ms. Goodman offered to help City Council address the issue of stabile housing for Huntington Beach fixed income residents. (01:07:08) Nancy Buchoz, a resident of southeast Huntington Beach, was invited to speak and shared her concerns regarding the Edison Park Conceptual Plan, specifically the removal of existing mature trees, and considerations related to the area previously being a landfill. (01:09:24) Don Albrecht, a 46-year resident of Huntington Beach, currently residing near Edison Park, was called to speak and stated his opposition to the Edison Park plan. Mr. Albrecht asked that any actions on the Edison Park plan be tabled until all impacted residents have been notified and provided an opportunity to provide input. (01:11:53) Ruben Lopez a veteran resident of Skandia Mobile Home Park, was invited to speak, and asked for the City Council to help residents address the current situation due to new Park ownership. (01:13:34) Mary Jo Baretich, a 39-year resident in the Cabrillo Beach Mobile Home Park, was called to speak and asked that City Council listen to the many veterans, disabled and senior residents on fixed incomes who are asking for help to address the issue of increasing rental costs. Ms. Baretich asked that the City Council ensure a Rent Stabilization Ordinance (RSO) to amend City Charter Section 803 for a mobile home carve out is on the November 2022 ballot. (01:14:43) Frank Daniels, a resident of southeast Huntington Beach for over 50 years, was invited to speak and stated his disappointment that City Council has illegally hired outside legal counsel. Mr. Daniels stated his support for City Attorney Michael Gates. (01:17:50) Caller #0586 was invited to speak and stated his opinions that the flood channel Trail to the Sea proposal is flawed and impacted residents have not been included in the plans. He expressed concerns that Huntington Beach Police and Fire Departments have no jurisdiction on Flood Control property, and that the plan, if implemented, would create quality of life issues for adjoining properties and negatively affect the wetlands and local wild life. (01:19:02) Eddie Castro, speaking on behalf of his father, a 21-year resident of Huntington Beach currently living in Skandia Mobile Home Park, was invited to speak. Mr. Castro asked that City Council prevent developers from coming in and dramatically increasing costs beyond the limit for many fixed income mobile home owners, who may become homeless because of impending rent increases. (01:21:01) Mark Sheldon was invited to speak and stated his opinion that the number of Environmental Board members should not be changed due to the size of some of the environmental reports that need to be reviewed, and having more people involved will ensure more thorough reviews and solutions. (01:23:50) Douglas Taylor, a resident of Huntington Beach for his whole life, currently living in Skandia Mobile Home Park, was invited to speak and he asked that City Council listen to the concerns of the residents living on fixed incomes and help to provide a fair solution. (01:26:01) 63 City Council/PFA Regular Meeting Minutes January 18, 2022 Page 6 of 11 Amy, a resident of a Huntington Beach mobile home park, was invited to speak and noted that "rent control" is different from "rent stabilization." Amy suggested that rent stabilization could be a viable component to addressing affordable housing issues, and asked Council to take seriously the concerns of the City's mobile park residents. (01:27:42) Erica Shane, a resident living adjacent to Edison Park for over 28 years, was invited to speak and shared her concerns related to lack of proper neighborhood notification, and apparent staff lack of response to address resident concerns regarding the Park’s conceptual plan. Ms. Shane stated that the project survey should have included area residents, rather than just the people who have signed up to use the park facilities. (01:29:57) Tim Geddes, a resident of Huntington Beach for over 37 years, actively involved in civic affairs for the last 20 years, and Mobile Home Advisory Board member, was invited to speak and shared his opinions on the existential threat to the residents living in the City's 18 mobile home parks. Mr. Geddes asked that City Council place an initiative on the November 2022 ballot and let the voters decide whether or not to create a mobile home carve out in City Charter Section 803 to protect affordable housing for fixed income residents. (01:32:20) Candace Brenner, retired biologist from Golden West College and long-time supporter of the Huntington Beach Wetlands Conservancy, was invited to speak, and noted that human activities have destroyed much of California's wetlands through the years. She stated her opposition to the plan for a trail near the Brookhurst wetlands, a protected habitat that needs to be preserved for the health and safety of the birds. (01:34:22) Caller #2823 was invited to speak and shared that her quality of life is impacted by increased rental costs when living on a fixed income in Huntington Beach. (01:36:36) CITY MANAGER’S REPORT — None COUNCIL COMMITTEE — APPOINTMENTS — LIAISON REPORTS, AB 1234 REPORTING, AND OPENNESS IN NEGOTIATIONS DISCLOSURES Mayor Pro Tem Posey reported that the Regional Council of the Southern California Association of Government (SCAG) voted in favor of the Voter Community Planning Initiative. Mayor Pro Tem Posey explained his opinion that it is appropriate for SCAG (a body of elected officials and a municipal planning organization), but not appropriate for City Councils (an elected body composed of elected officials) to take positions of support for or opposition to voter issues. He reported that the Orange County Power Authority (OCPA) has adopted three pricing tiers with different renewable energy content: 38 percent, 69 percent, and 100 percent. Mayor Pro Tem Posey also stated that he plans to report on genetically modified mosquitoes in February. He also reported speaking with the Huntington Beach Police Officers’ Association (HBPOA). Councilmember Carr reported attending meetings of the Youth Board to continue planning for the Youth in Government Day on April 26, 2022, and the Huntington Beach Downtown Business Improvement District (HBDBID) Board. She expressed her best wishes for Sara Kruer, Former Executive Director and thanked her for assistance in recent Downtown improvements. Councilmember Kalmick reported attending recent meetings of the Southern California Association of Government (SCAG), and the Energy and Environment Committee for Orange County Council of Governments (OCCOG). He also reported meeting with members of the Huntington Beach Police Officers’ Association (HBPOA). 64 City Council/PFA Regular Meeting Minutes January 18, 2022 Page 7 of 11 Councilmember Moser reported attending meetings of the Youth Board, Huntington Beach Downtown Business Improvement District (HBDBID) echoing Councilmember Carr's comments for Former HBDBID Executive Director Sara Kruer, Human Relations Committee and Sunset Beach Community Association Townhall. Councilmember Bolton reported attending a meeting of the Human Relations Committee, and announced she will be serving as Councilmember Posey's Alternate for meetings of the Southern California Association of Government (SCAG) and attended a SCAG Community, Economic and Human Development Committee meeting. Mayor Delgleize reported meeting with members of the Huntington Beach Police Officers' Association (HBPOA), and participating in a virtual meeting of the Orange County Transportation Authority (OCTA). CONSENT CALENDAR 9. 21-1014 Approved and Adopted Minutes A motion was made by Kalmick, second Carr to approve and adopt the City Council/Public Financing Authority special meeting minutes dated November 12, 2021, as written and on file in the office of the City Clerk; and, approve and adopt the City Council/Public Financing Authority special meeting minutes dated December 14, 2021, as written and on file in the office of the City Clerk; and, approve and adopt the City Council/Public Financing Authority regular and special meeting minutes of the Housing Authority, Parking Authority, and Successor Agency dated December 21, 2021, as written and on file in the office of the City Clerk, as amended by Supplemental Communication to revise minutes dated December 21, 2021. The motion carried by the following vote: AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick NOES: None 10. 22-006 Conducted Annual Review of the City Code of Ethics A motion was made by Kalmick, second Carr to direct the City Clerk to record in the official minutes that the City Code of Ethics was presented to the City Council, City Manager, Chairpersons, and City Department Directors for their review and distribution as required by Resolution No. 2016-73. The motion carried by the following vote: AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick NOES: None 11. 21-972 Reaffirmed adoption of Resolution No. 2021-62 finding a proclaimed state of emergency continues to impact the ability to meet safely in person, and allows meetings of the City Council and all City boards, commissions and committees to be conducted remotely as needed in compliance with new Brown Act provisions identified in Assembly Bill 361 65 City Council/PFA Regular Meeting Minutes January 18, 2022 Page 8 of 11 A motion was made by Kalmick, second Carr to reaffirm Resolution No. 2021-62, "A Resolution of the City Council of the City of Huntington Beach, California, Finding that the Proclaimed State of Emergency Continues to Impact the Ability to Meet Safely in Person." The motion carried by the following vote: AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick NOES: None 12. 21-1010 Approved appointment of Iliana Velazquez to the Huntington Beach Human Relations Committee (HBHRC) as recommended by City Council Liaisons, Councilmember Bolton and Councilmember Moser A motion was made by Kalmick, second Carr to approve the appointment of Iliana Velazquez as a member of the Huntington Beach Human Relations Committee through December 31, 2025, the end of term for the current unscheduled vacancy, as recommended by City Council Liaisons Bolton and Moser. The motion carried by the following vote: AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick NOES: None 13. 22-030 Approved and authorized execution of Professional Services Contracts for On-Call Professional Design/Landscape Architectural Services with David Volz Design, Integrated Consulting Group, Inc., Michael Baker International, Inc., Moore Iacofano Goltsman, Inc., NUVIS, and RJM Design Group, Inc. each in an amount not to exceed $1,000,000 over a three-year term A motion was made by Kalmick, second Carr to approve and authorize the Mayor and City Clerk to execute a "Professional Services Contract Between the City of Huntington Beach and David Volz Design Landscape Architects, Inc. for As-Needed Professional Design/Landscape Architectural Services" in an amount not to exceed $1,000,000 over a three-year term; and, approve and authorize the Mayor and City Clerk to execute a "Professional Services Contract Between the City of Huntington Beach and Integrated Consulting Group, Inc. for As-Needed Professional Design/Landscape Architectural Services" in an amount not to exceed $1,000,000 over a three-year term; and, approve and authorize the Mayor and City Clerk to execute Professional Services Contract Between the City of Huntington Beach and Michael Baker International, Inc. for As-Needed Professional Design/Landscape Architectural Services" in an amount not to exceed $1,000,000 over a three-year term; and, approve and authorize the Mayor and City Clerk to execute a "Professional Services Contract Between the City of Huntington Beach and Moore Iacofano Goltsman, Inc. (MIG, Inc.) for As-Needed Professional Design/Landscape Architectural Services" in an amount not to exceed $1,000,000 over a three-year term; and, approve and authorize the Mayor and City Clerk to execute a "Professional Services Contract Between the City of Huntington Beach and NUVIS for As-Needed Professional Design/Landscape Architectural Services" in an amount not to exceed $1,000,000 over a three-year term; and, approve and authorize the Mayor and City Clerk to execute a "Professional Services Contract Between the City of Huntington Beach and RJM Design Group, Inc. for As-Needed Professional Design/Landscape Architectural Services" in an amount not to exceed $1,000,000 over a three-year term. The motion carried by the following vote: AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick 66 City Council/PFA Regular Meeting Minutes January 18, 2022 Page 9 of 11 NOES: None 14. 22-032 Affirmed the Employment Agreements for Sean Joyce as Interim City Manager and Eric Parra as Chief of Police A motion was made by Kalmick, second Carr to pursuant to Government Code Section 54956 (b), approve the following actions: affirm the employment agreement with Mr. Joyce who has been appointed to serve as Interim City Manager; and affirm the employment agreement with Mr. Parra who has been appointed to serve as the Chief of Police. The motion carried by the following vote: AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick NOES: None 15. 21-1016 Adopted Ordinance No. 4245 amending Ch. 3.02 of the Huntington Beach Municipal Code, Ordinance No. 4246 adding Ch. 17.52 to the Huntington Beach Municipal Code, and Ordinance No. 4247 amending Chapter 8.21 and adding Ch. 8.22 of the Huntington Beach Municipal to comply with State Mandated Organics Collection and Recycling Services, Edible Food Recovery, and Procurement As Required by CalRecycle Approved for Introduction December 21, 2021 — Vote: 7 – 0 A motion was made by Kalmick, second Carr to adopt Ordinance No. 4245, "An Ordinance of the City Council of the City of Huntington Beach Amending Chapter 3.02 of the Huntington Beach Municipal Code Purchase of Goods and Services;" and, adopt Ordinance No. 4246, "An Ordinance of the City Council of the City of Huntington Beach Adding Chapter 17.52 to the Huntington Beach Municipal Code Green Building Standards Code;" and, adopt Ordinance No. 4247, "An Ordinance of the City Council of the City of Huntington Beach Amending Chapter 8.21 of the Huntington Beach Municipal Code Refuse Management and Adding Chapter 8.22 Mandatory Organic Waste Disposal Reduction." The motion carried by the following vote: AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick NOES: None 16. 21-1017 Adopted Ordinance No. 4248 amending Chapter 5.48 of the Huntington Beach Municipal Code regulating Taxicabs to comply with California Government Code Section 53075.5 and Adopt Resolution No. 2021-78 to establish fees for the City of Huntington’s Taxicab Program Approved for Introduction December 21, 2021 — Vote: 7 – 0 A motion was made by Kalmick, second Carr to adopt Ordinance No. 4248, "An Ordinance of the City of Huntington Beach Amending Chapter 5.48 of the Huntington Beach Municipal Code Taxicab-Vehicles for Hire." The motion carried by the following vote: AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick NOES: None 67 City Council/PFA Regular Meeting Minutes January 18, 2022 Page 10 of 11 ADMINISTRATIVE ITEMS 17. 22-014 Adopted Resolution No. 2022-02 approving and implementing the Memorandum of Understanding (MOU) between the Huntington Beach Municipal Teamsters (HBMT) and the City of Huntington Beach for January 1, 2022, through December 31, 2024 Administrative Services Director Brittany Mello presented a PowerPoint communication entitled Consideration of the Proposed Memorandum of Understanding with the Huntington Beach Municipal Teamsters with slides titled: Overview, Proposed Memorandum of Understanding, and City Council Options. A motion was made by Carr, second Posey to adopt Resolution No. 2022-02, "A Resolution of the City Council of the City of Huntington Beach Approving and Implementing the Memorandum of Understanding Between the Huntington Beach Municipal Teamsters (HBMT) and the City for January 1, 2022, Through December 31, 2024;" and, authorize appropriations for all costs related to implementation of Resolution No. 2022-02 and all labor contracts approved by City Council on December 21, 2021. The motion carried by the following vote: AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick NOES: None COUNCILMEMBER COMMENTS (Not Agendized) Mayor Pro Tem Posey welcomed both Interim City Manager Joyce and Police Chief Parra, and reported on the recent Surf City Classics Annual Cruise in remembrance of members who have passed on. Mayor Pro Tem Posey personally, and on behalf of Surf City Classics, thanked Public Works for ensuring the commemoration banner for Daniel "Dano" Patten was hung on Main Street at Lake Park. Councilmember Carr stated her appreciation to Sunset Beach Community Association President Kevin Paulson for his handling of the recent Townhall Meeting; reported attending the ribbon cutting for the Central Park Playground renovation, and thanked Community and Library Services Director Chris Slama and staff for an outstanding job on this project; attending a virtual meeting on the Bolsa Chica Wetlands describing efforts to protect and preserve the Bolsa Chica Mesa; and attending the Tet Parade Fundraising Gala in Westminster. Councilmember Moser reported attending a Sunset Remembrance on New Year's Eve at Pier Plaza to remember people lost in 2021; attending the New Year's Splash (without getting into the water because of the rains and high bacteria counts); Central Park Playground ribbon cutting; and announced that the Point in Time count for the County has been moved from the end of January to near the end of February. Full details can be found at everyonecountsoc.org. Councilmember Moser also encouraged people to participate in a virtual dialogue event on Saturday, January 22, 4:30 PM, to honor the legacy of Dr. Martin Luther King, and stated that further details will be shared with anyone who emails Mark Currie at mcurrie@goldstarinc.com. Mayor Delgleize reported attending the Sunset Remembrance event, and gave a shout-out to Lovely, KC Fockler, and Tony from the Surfrider Foundation for their Splash efforts on January 1. She reported that the Sunset Beach community is responding very gratefully for the recent Townhall Meeting led by the Police Department and Chief Parra. Mayor Delgleize gave a big shout out to the Community and Library Services Department and all staff members who worked on the wonderful Central Park Playground renovation. 68 City Council/PFA Regular Meeting Minutes January 18, 2022 Page 11 of 11 ADJOURNMENT — 7:57 PM to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Tuesday, February 1, 2022, 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 69 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-031 MEETING DATE:2/1/2022 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: Receive and file the 2022 annual update of the Council Manual digitally compiled to incorporate policy information previously adopted by Resolution No. 2019-09 Statement of Issue: The Council Manual formally adopted by Resolution No. 2019-09 has been updated to reflect information for current calendar and/or fiscal years. The annual update as presented does not include any Council-initiated amendments that would require adoption by Resolution. Financial Impact: None. Recommended Action: Receive and file the updated Council Manual 2022. Alternative Action(s): Deny the request, and provide staff alternative direction. Analysis: In March 2019, the City Council via Resolution No. 2019-09 (attached) adopted a new, digitally compiled Council Manual that incorporated policy information previously adopted by resolution with enhanced formatting and links to local government resource material. The Manual described as a “living document” is updated on an annual basis to ensure that its contents remain current and relevant. The City Council at its discretion can amend the Manual by resolution at any time. The 2022 update of the Council Manual does not include any Council-initiated amendments. Administrative revisions for 2022 include: ·References to calendar/fiscal years ·City Organizational Chart FY 2021/22 ·City Council Agenda Deadline Schedule - 2022 ·Inclusion of AR 509 - Social Media Policy for Elected and Appointed Officials, effective City of Huntington Beach Printed on 1/26/2022Page 1 of 2 powered by Legistar™70 File #:22-031 MEETING DATE:2/1/2022 May 3, 2021 ·Maddy Act Local Appointments List - 2022 ·New Mayor Protocal Handbook ·Council Liaison List - 2022 Environmental Status: Not applicable. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Council Manual 2022 2. Resolution No. 2019-09 City of Huntington Beach Printed on 1/26/2022Page 2 of 2 powered by Legistar™71 72 Council Manual Material Provided By: City of Huntington Beach; Institute for Local Government (ILG) Table of Contents CITY OF HUNTINGTON BEACH INFORMATION Foreword ………...……………………………………………………………………………………………………………………………………..………………...…………4 City Charter ……...……………………………………………………………………………………………………………………………………..………………...…………5 Organization Chart – from Adopted FY 2021/22 Budget ………………….……………………….…………………………………….…..………. 28 Council Meetings and Parliamentary Procedure……………………………………………………………………………..………….………..…………30 The Agenda Process ………………..………………………………………………………………………………………………………………………….…..……...…35 Procedure for Selection of Mayor Pro Tem …………………………..…………………………………….………………….……………………….…..…38 Code of Ethics ……………………………………..…………………………………………….………………….……………………………….……….……………..……40 Required Trainings (AB 1234 Ethics; AB 1661 Sexual Harassment Prevention)……………………………………....……………………45 AR 509 - Social Media Policy……………………………..…………………………………………….………………….………….…….……….……………..……52 Statewide Ballot Propositions, Appeal of Planning Decisions, Guidelines for Representing the City at Conferences or Other Such Meetings..……………………………………………………57 Appointments to Boards, Commissions and Committees ……………………………………………….......………………..…..…………………65 Statement of Economic Interests – Form 700 Reporting ………………..………………….……………………………………..…………………..85 Conflict of Interest Map ………………………………………………………………………………………………………………………….......……………….…116 General Rules for Gifts and Honoraria …………………………………..………..………………….……………………………………..……………….…118 New Mayor Protocol Handbook (includes current Council Liaison List) ……………………………………………….……………….…..120 ILG RESOURCES RESPONSIBILITIES AND POWERS Types and Responsibilities of Local Agencies LINKS TO ARTICLES Local Agency Powers and Limitations What are the Sources of Law Affecting Local Agencies Legislative versus Adjudicative Decision Making BUDGETING AND FINANCE The Basics of Municipal Revenues in California The Financial Management for Elected Officials: Questions to Ask LEADERSHIP SKILLS Governing Board Member Strategies Transparency in Local Government: Protecting Your Community Against Corruption Tips for Promoting Civility in Public Meetings 73 Council Manual Material Provided By: City of Huntington Beach; Institute for Local Government (ILG) PUBLIC TRUST & TRANSPARENCY The Ethics of Speaking One's Mind The ABCs of Open Government Laws (Brown Act) Ethics Law Principles for Public Servants: Key Things to Know MAKING DECISIONS How Local Agencies Make Things Happen How Your Agency Counsel Should Advise You When Agency Contracts Represent a Conflict of Interest LAND USE The Nuts and Bolts of Project Review WORKING WITH STAFF Board/Executive Staff Communications Strategies Elected Official Direction to Staff WORKING WITH RESIDENTS AND THE MEDIA Why Engage the Public? Media Relations Tips for Newly Elected Officials Dealing with Emotional Audiences Social Media and Public Agencies: Legal Issues to be Aware of Taking the Bite Out of Blogs: Ethics in Cyberspace WHEN BAD THINGS HAPPEN Saying Your Sorry A Leader's Role When Tragedy Strikes 74 Sister City: Anjo, Japan Foreword February 1, 2022 Honorable Mayor and City Council, On September 20, 1976, the Huntington Beach City Council adopted Resolution No. 4330, adopting a Council Manual that provided resource information on a number of processes, duties and responsibilities related to local government service. Significant updates to the Council Manual occurred in 1989 and 2019. In a continued effort to enhance the experience of our elected officials and provide a wealth of solid, relevant, easily accessible information, staff is pleased to present a revised Council Manual. The Council Manual begins with items germane to Huntington Beach, and then incorporates a variety of webpage links to public domain offerings by the Institute for Local Government (ILG). ILG is a nonprofit research and education affiliate of the League of California Cities and the California State Association of Counties, whose mission is to promote good government at the local level throughout California. In addition to the linked publications provided in the Council Manual, videos covering basic Government 101 topics are accessible at www.ca-ilg.org/post/local-government-basics-videos. By resolution, the City Council is bound by the rules and processes established hereto. Any information contained in the Council Manual that conflicts with Federal, State or Huntington Beach law is superseded by the conflicting law. The Council Manual is a living document, updated as necessary to ensure its contents remain current and relevant. Council may request to revise the Council Manual at any time, and staff will present such requests in the form of a Resolution for Council approval. The Council Manual located at https://huntingtonbeachca.gov/government/elected_officials/city_council/ is accessible from City-issued iPads or personal devices used by Council to review agenda-related material. Staff will make efforts to keep the Council Manual a convenient size, but realizes that Councilmembers will define its depth and breadth. It is our hope that this living document will assist Council to successfully conduct business in a prescribed, qualified and ethical manner while representing the citizens of Huntington Beach. Sean Joyce, Interim City Manager Robin Estanislau, CMC, City Clerk City of Huntington Beach 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 ♦ www.huntingtonbeachca.gov 75 76 77 City Charter Formatting of the original Council Manual adopted in 1976 and revised versions thereafter outlined language taken directly from the City Charter and referenced section numbers. This revised Council Manual includes the City Charter in its entirety (attached) as a complete reference guide that includes the topics outlined in prevision versions:  Rules of Office of Councilpersons (Charter § 300)  Duties and Limitations of the City Council (Charter § 301, 303, 304, 307, 308, 311, 313, 400, 401, 403, 405, 500, 602, 603, 604, 608, 610, 615, 616)  Duties of the Mayor (Charter § 303, 305, 613)  Duties of the Mayor Pro Tempore (Charter § 306)  Compensation of Councilpersons (Charter § 302; HBMC § 2.28.010) 78 City Charter City of Huntington BeaCH Incorporated February 17, 1909 79 City of Huntington Beach City Charter Page 1 of 20 12/6/10 CITY OF HUNTINGTON BEACH CITY CHARTER Incorporated, February 17, 1909 (Election February 9, 1909; 94 votes cast for incorporation and 25 votes against) CHARTER AMENDMENTS Effective Dates Charter Election Certified - Res. 773 Results 5/3/37........…………5/17/37 Amendments……………………………………………………..…..2/2/40 Amendments…………………………………………………….….1/29/47 Amendments……………………………………………………..…1/27/49 Amendments……………………………………………………..…..5/9/49 Revised.............................……………………........……………..….5/1/50 New Charter………………………………………………….….….2/10/66 Amendments………………………………………………….….…1/18/71 Amendments………………………………………………….….…..6/5/75 Amendments……………………………………………………....12/10/76 Amendments……………………………………………………..…7/17/78 Amendments..(Consolidation November)……………………..…...12/9/82 Amendments…………………………………………………..……12/7/84 Amendments……………………………………………………..…12/7/90 Amendments……………………………………………………......4/22/02 Revised……..(Certified by the Secretary of State 1/6/11).…….….12/6/10 80 City of Huntington Beach City Charter Page 2 of 20 12/6/10 CITY CHARTER TABLE OF CONTENTS ARTICLE I. INCORPORATION AND POWERS OF THE CITY Section 100. Name Section 101. Seal Section 102. Boundaries Section 103. Powers of City Section 104. Construction Section 105. Intergovernmental Relations ARTICLE II. FORM OF GOVERNMENT Section 200. Council-Manager Form of Government ARTICLE III. ELECTIVE OFFICES Section 300. City Council, Attorney, Clerk and Treasurer. Terms Section 301. Powers Vested in City Council Section 302. Compensation Section 303. Meetings and Location Section 304. Quorums, Proceedings and Rules of Order Section 305. Presiding Officer Section 306. Mayor Pro Tempore Section 307. Non-interference with Administration Section 308. Official Bonds Section 309. City Attorney. Powers and Duties Section 310. City Clerk. Powers and Duties Section 311. City Treasurer. Powers and Duties Section 312. Vacancies, Forfeitures and Replacement Section 313. Conflict of Interest, Nepotism ARTICLE IV. APPOINTIVE OFFICES AND PERSONNEL Section 400. City Manager. Composition, Term, Eligibility, Removal Section 401. Powers and Duties Section 402. Acting City Manager Section 403. Personnel Section 404. Retirement System Section 405. Boards, Commissions and Committees ARTICLE V. ORDINANCES AND RESOLUTIONS Section 500. Regular Ordinances. Enactment, Adoption, Publication, Amendment, When Effective and Codification Section 501. Emergency Ordinances Section 502. Resolutions Section 503. Publishing of Legal Notices 81 City of Huntington Beach City Charter Page 3 of 20 12/6/10 ARTICLE VI. FISCAL ADMINISTRATION Section 600. Fiscal Year Section 601. Annual Budget, Preparation by the City Manager Section 602. Annual Budget. Submission to the City Council Section 603. Annual Budget. Public Hearing Section 604. Annual Budget. Further Consideration and Adoption Section 605. Annual Budget Appropriations Section 606. Determination of City Tax Rate Section 607. Tax Limits Section 608. Vote Required for Tax Measures Section 609. Real Estate Transfer Tax Section 610. Bonded Debt Limit Section 611. Revenue Bonds Section 612. Public Utilities and Parks and Beaches Section 613. Execution of Contracts Section 614. Contracts on Public Works Section 615. Granting of Franchises Section 616. Independent Audit Section 617. Infrastructure Fund ARTICLE VII. ELECTIONS Section 700. General Municipal Elections Section 701. Special Municipal Elections Section 702. Procedure for Holding Elections Section 703. Initiative, Referendum and Recall Section 704. Nomination Papers ARTICLE VIII. MISCELLANEOUS Section 800. Transition Section 801. Definitions Section 802. Violations Section 803. Property Rights Protection Measure Section 804. Charter Review 82 City of Huntington Beach City Charter Page 4 of 20 12/6/10 CHARTER We, the people of the City of Huntington Beach, State of California believe fiscal responsibility and the prudent stewardship of public funds is essential for confidence in government, that ethics and integrity are the foundation of public trust and that just governance is built upon these values. Through the enactment of this Charter as the fundamental law of the City of Huntington Beach under the Constitution of the State of California, we do hereby exercise the privilege of retaining for ourselves, the benefits of local government, by enacting the laws, rules, regulations and procedures set forth herein pertaining to the governance and operation of our City. It is incumbent upon those who govern and make decisions for and on behalf of the City of Huntington Beach to legally, as well as morally, abide by the provisions of this Charter, in its strictest sense, to assure the continued success and well-being of our fair City. ARTICLE I INCORPORATION AND POWERS OF THE CITY Section 100. NAME. The municipal corporation now existing and known as the City of Huntington Beach shall remain and continue to exist as a municipal corporation under its present name of "City of Huntington Beach." Section 101. SEAL. The City shall have an official seal which may be changed from time to time by ordinance. The present official seal shall continue to be the official seal of the City until changed in the manner stated. Section 102. BOUNDARIES. The boundaries of the City shall continue as now established until changed in the manner authorized by law. Section 103. POWERS OF CITY. The City shall have the power to make and enforce all laws and regulations in respect to municipal affairs, subject only to such restrictions and limitations as may be provided in this Charter or in the Constitution of the State of California. Section 104. CONSTRUCTION. The general grant of power to the City under this Charter shall be construed broadly in favor of the City. The specific provisions enumerated in this Charter are intended to be and shall be interpreted as limitations upon the general grant of power and shall be construed narrowly. If any provisions of this Charter, or the application thereof to any person or circumstance is held invalid, the remainder of the Charter and the application of such provision to other persons or circumstances, shall not be affected thereby. Section 105. INTERGOVERNMENTAL RELATIONS. The City may exercise any of its powers or perform any of its functions and may participate in the financing thereof, jointly or in cooperation, by contract or otherwise, with any one or more states or civil divisions or agencies thereof, or the United States or any agency thereof. ARTICLE II FORM OF GOVERNMENT Section 200. COUNCIL-MANAGER FORM OF GOVERNMENT. The municipal government provided by this Charter shall be known as the Council-Manager form of government. 83 City of Huntington Beach City Charter Page 5 of 20 12/6/10 ARTICLE III ELECTIVE OFFICES Section 300. CITY COUNCIL, ATTORNEY, CLERK AND TREASURER. TERMS. The elective officers of the City shall consist of a City Council of seven members, a City Clerk, a City Treasurer and a City Attorney, all to be elected from the City at large at the times and in the manner provided in this Charter and who shall serve for terms of four years and until their respective successors qualify. Subject to the provisions of this Charter, the members of the City Council in office at the time this Charter takes effect shall continue in office until the expiration of their respective terms and until their successors are elected and qualified. Four members of the City Council shall be elected at the general municipal election held in 1966, and each fourth year thereafter. Three members of the City Council shall be elected at the general municipal election held in 1968, and each fourth year thereafter. No person shall be elected as a member of the City Council for more than two consecutive terms and no person who has been a member for more than two years of a term to which some other person was elected a member shall be elected to the City Council more than one further consecutive term. Subject to the provisions of this Charter, the City Clerk, City Treasurer and City Attorney in office at the time this Charter takes effect shall continue in office until the expiration of their respective terms and the qualification of their successors. A City Clerk and City Treasurer shall be elected at the general municipal election held in 1968, and each fourth year thereafter. A City Attorney shall be elected in 1966, and each fourth year thereafter. The term of each member of the City Council, the City Clerk, the City Treasurer and the City Attorney shall commence on the first Monday following the certification of the election. Ties in voting among candidates for office shall be settled by the casting of lots. If no candidate meets the qualifications for office of the City Clerk, City Treasurer, or City Attorney, the City Council shall fill that position by appointment until the next municipal general election in which a qualified candidate is elected. Section 301. POWERS VESTED IN CITY COUNCIL. All powers of the City shall be vested in the City Council except as otherwise provided in this Charter. Section 302. COMPENSATION. The members of the City Council including the Mayor shall receive as compensation for their services as such a monthly salary in the sum of One Hundred Seventy-five Dollars per month. In addition, each member of the City Council shall receive reimbursement on order of the City Council for Council authorized traveling and other expenses when on official duty upon submission of itemized expense accounts therefor. In addition, members shall receive such reasonable and adequate amounts as may be established by ordinance, which amounts shall be deemed to be reimbursement to them of other routine and ordinary expenses, losses and costs imposed upon them by virtue of their serving as City Councilpersons. Section 303. MEETINGS AND LOCATION. (a) Regular Meetings. The City Council shall hold regular meetings at least twice each month at such time as it shall fix by ordinance or resolution and may adjourn or re-adjourn any regular meeting to a date and hour certain which shall be specified in the order of adjournment and when so adjourned each adjourned meeting shall be a regular meeting for all purposes. If the hour to which a meeting is adjourned is not stated in the order of adjournment, such meeting shall be held at the hour for holding regular meetings. If at any time any regular meeting falls on a holiday such regular meeting shall be held on the next business day. (b) Special Meetings. A special meeting may be called at any time by the Mayor, or by a majority of the members of the City Council, by written notice to each member of the City Council and to each local newspaper of general circulation, radio or television station requesting notice in writing. Such 84 City of Huntington Beach City Charter Page 6 of 20 12/6/10 notice must be delivered personally or by mail at least twenty-four hours before the time of such meeting as specified in the notice. The call and notice shall specify the time and place of the special meeting and the business to be transacted. No other business shall be considered at such meeting. If any person entitled to such written notice files a written waiver of notice with the City Clerk, it may be dispensed with. This notice requirement shall be considered fulfilled as to any person who is actually present at the meeting at the time it convenes. In the event of an emergency affecting the public peace, health or safety, a special meeting may be called as provided in this section with less than twenty-four hours written notice by the Mayor Pro Tem in the Mayor's absence or by any member of the City Council in the absence of both the Mayor and Mayor Pro Tem provided that the nature of the emergency is set forth in the minutes of the meeting. (c) Place of Meetings. All regular meetings shall be held in the Council Chambers of the City or in such place within the City to which any such meeting may be adjourned. If, by reason of fire, flood or other emergency, it shall be unsafe to meet in the place designated, the meetings may be held for the duration of the emergency at such place within the City as is designated by the Mayor, or, if he should fail to act, by a majority of the members of the City Council. (d) Open Meetings. All regular and special meetings of the City Council shall be open and public, and all persons shall be permitted to attend such meetings, except that the provisions of this section shall not apply to executive sessions. Subject to the rules governing the conduct of City Council meetings, no person shall be denied the right to be heard by the City Council. (e) Dissemination of Information. The City Council shall adopt rules to ensure thorough and timely dissemination of information via current technology by resolution. Section 304. QUORUMS, PROCEEDINGS AND RULES OF ORDER. (a) Quorum. A majority of the members of the City Council shall constitute a quorum to do business but a lesser number may adjourn from time to time. In the absence of all the members of the City Council from any regular meeting or adjourned regular meeting, the City Clerk may declare the same adjourned to a stated day and hour. The City Clerk shall cause written notice of a meeting adjourned by less than a quorum or by the City Clerk to be delivered personally or by mail to each Council member at least twenty-four hours before the time to which the meeting is adjourned, or such notice may be dispensed with in the same manner as specified in this Charter for dispensing with notice of special meetings of the City Council. (b) Proceedings. The City Council shall judge the qualification of its members as set forth by the Charter. It shall judge all election returns. Each member of the City Council shall have the power to administer oaths and affirmations in any investigation or proceeding pending before the City Council. The City Council shall have the power and authority to compel the attendance of witnesses, to examine them under oath and to compel the production of evidence before it. Subpoenas shall be issued in the name of the City and be attested by the City Clerk. They shall be served and complied with in the same manner as subpoenas in civil actions. Disobedience of such subpoenas, or the refusal to testify (upon other than constitutional grounds), shall constitute a misdemeanor, and shall be punishable in the same manner as violations of this Charter are punishable. The City Council shall have control of all legal business and proceedings and all property of the legal department, and may employ other attorneys to take charge of or may contract for any prosecution, litigation or other legal matter or business. (c) Rules of Order. The City Council shall establish rules for the conduct of its proceedings and evict or prosecute any member or other person for disorderly conduct at any of its meetings. Upon adoption of any ordinance, resolution, or order for payment of money, or upon the demand of any 85 City of Huntington Beach City Charter Page 7 of 20 12/6/10 member, the City Clerk shall call the roll and shall cause the ayes and noes taken on the question to be entered in the minutes of the meeting. Section 305. PRESIDING OFFICER. At the Council meeting at which any Council member is installed following any general or special municipal election, and at any time when there is a vacancy in the office of Mayor, the City Council shall meet and shall elect one of its members as its presiding officer, who shall have the title of Mayor. The Mayor may make and second motions and shall have a voice and vote in all its proceedings. The Mayor shall be the official head of the City for all ceremonial purposes; shall have the primary but not the exclusive responsibility for interpreting the policies, programs and needs of the City government to the people, and as occasion requires, may inform the people of any major change in policy or program; and shall perform such other duties consistent with the office as may be prescribed by this Charter or as may be imposed by the City Council. The Mayor shall serve in such capacity at the pleasure of the City Council. Section 306. MAYOR PRO TEMPORE. The City Council shall also designate one of its members as Mayor Pro Tempore, who shall serve in such capacity at the pleasure of the City Council. The Mayor Pro Tempore shall perform the duties of the Mayor during the Mayor's absence or disability or at the Mayor's request. Section 307. NON-INTERFERENCE WITH ADMINISTRATION. Except as otherwise provided in this Charter, no member of the City Council shall order, directly or indirectly, the appointment by the City Manager, or by any of the department heads in administrative service of the City, of any person to any office or employment, or removal therefrom. Except for the purpose of investigation and inquiry, the members of the City Council shall deal with the administrative service under the jurisdiction of the City Manager solely through the City Manager, and no member of the City Council shall give orders to any subordinate of the City Manager, either publicly or privately. No elected department head or staff of the Office of the elected department head shall be a member of the management negotiation team for the purposes of negotiations of memorandums of understanding with the employee bargaining units. Section 308. OFFICIAL BONDS. The City Council shall fix by ordinance or resolution the amounts and terms of the official bonds of all officials or employees who are required by this Charter or by ordinance to give such bonds. All bonds shall be executed by responsible corporate surety, shall be approved as to form by the City Attorney, and shall be filed with the City Clerk. Premiums on official bonds shall be paid by the City. A blanket bond may be used if it provides the same protection as the required separate bond would provide. In all cases wherein an employee of the City is required to furnish a faithful performance bond, there shall be no personal liability upon, or any right to recover against, the employee's superior officer or other officer or employee or the bond of the latter, unless such superior officer, or other officer or employee is a party to the act or omission, or has conspired in the wrongful act directly or indirectly causing the loss. Section 309. CITY ATTORNEY. POWERS AND DUTIES. To become and remain eligible for City Attorney the person elected or appointed shall have graduated from a law school accredited by the American Bar Association, be an attorney at law, duly licensed as such under the laws of the State of California, shall have been engaged in the practice of law in this State for at least five years prior to their election or appointment. The City Attorney shall have the power and may be required to: (a) Represent and advise the City Council and all City officers in all matters of law pertaining to their offices. 86 City of Huntington Beach City Charter Page 8 of 20 12/6/10 (b) Prosecute on behalf of the people any or all criminal cases arising from violation of the provisions of this Charter or of City ordinances and such state misdemeanors as the City has the power to prosecute, unless otherwise provided by the City Council. (c) Represent and appear for the City in any or all actions or proceedings in which the City is concerned or is a party, and represent and appear for any City officer or employee, or former City officer or employee, in any or all civil actions or proceedings in which such officer or employee is concerned or is a party for any act arising out of their employment or by reason of their official capacity. (d) Attend all regular meetings of the City Council, unless excused, and give their advice or opinion orally or in writing whenever requested to do so by the City Council or by any of the boards or officers of the City. (e) Approve in writing the form of all contracts made by and all bonds and insurance given to the City. (f) Prepare any and all proposed ordinances and City Council resolutions and amendments thereto. (g) Devote such time to the duties of their office and at such place as may be specified by the City Council. (h) Perform such legal functions and duties incident to the execution of the foregoing powers as may be necessary. (i) Surrender to their successor all books, papers, files, and documents pertaining to the City's affairs. (j) Assist and cooperate with the City Manager consistent with Section 403 of the City Charter. (k) Provide advice related to compliance with the City Charter to all elected and appointed officials of the City. Section 310. CITY CLERK. POWERS AND DUTIES. To become and remain eligible for City Clerk, the person elected or appointed shall have a Bachelor’s Degree in business, public administration, or a related field, and hold a certification as a Municipal Clerk or obtain such certification within the first three years in office. The City Clerk shall have the power and shall be required to: (a) Attend all meetings of the City Council, unless excused, and be responsible for the recording and maintaining of a full and true record of all of the proceedings of the City Council in records that shall bear appropriate titles and be devoted to such purpose. (b) Maintain separate records, in which shall be recorded respectively all ordinances and resolutions, with the certificate of the Clerk annexed to each thereof stating the same to be the original or a correct copy, and as to an ordinance requiring publication, stating that the same has been published or posted in accordance with this Charter. (c) Maintain separate records of all written contracts and official bonds. (d) Keep all records in their possession properly indexed and open to public inspection when not in actual use. (e) Be the custodian of the seal of the City. 87 City of Huntington Beach City Charter Page 9 of 20 12/6/10 (f) Administer oaths or affirmations, take affidavits and depositions pertaining to the affairs and business of the City and certify copies of official records. (g) Be ex officio Assessor, unless the City Council, has availed itself, or does in the future avail itself, of the provisions of the general laws of the State relative to the assessment of property and the collection of City taxes by county officers, or unless the City Council by ordinance provides otherwise. (h) Have charge of all City elections. (i) Perform such other duties consistent with this Charter as may be required by ordinance or resolution of the City Council. (j) Assist and cooperate with the City Manager consistent with Section 403 of the City Charter. The City Clerk may, subject to the approval of the City Council, appoint such deputy or deputies to assist them or act for them, at such salaries or compensation as the Council may by ordinance or resolution prescribe. Section 311. CITY TREASURER. POWERS AND DUTIES. To become and remain eligible for City Treasurer, the person elected or appointed shall have a minimum of five years of financial and/or treasury experience, and have either: A Master’s Degree in accounting, finance, business, or public administration; or A Bachelor’s Degree in accounting, finance, business, or public administration with certification by the California Municipal Treasurer’s Association, or their successor, within three years of election or appointment. The City Treasurer shall have the power and shall be required to: (a) Receive on behalf of the City all taxes, assessments, license fees and other revenues of the City, or for the collection of which the City is responsible, and receive all taxes or other money receivable by the City from the County, State or Federal governments, or from any court, or from any office, department or agency of the City. (b) Have and keep custody of all public funds belonging to or under control of the City or any office, department or agency of the City government and deposit or cause to be deposited all funds coming into their hands in such depository as may be designated by resolution of the City Council, or, if no such resolution be adopted, then in such depository designated in writing by the City Manager, and in compliance with all of the provisions of the State Constitution and laws of the State governing the handling, depositing and securing of public funds. (c) Pay out moneys only on proper orders or warrants in the manner provided for in this Charter. (d) Prepare and submit to the Director of Finance monthly written reports of all receipts, disbursements and fund balances, and shall file copies of such reports with the City Manager and City Council. (e) Perform such other duties consistent with this Charter as may be required by ordinance or resolution of the City Council. 88 City of Huntington Beach City Charter Page 10 of 20 12/6/10 (f) Assist and cooperate with the City Manager consistent with Section 403 of the City Charter. The City Treasurer may, subject to the approval of the City Council, appoint such deputy or deputies to assist them or act for them, at such salaries or compensation as the Council may by ordinance or resolution prescribe. Section 312. VACANCIES, FORFEITURES AND REPLACEMENT. (a) Vacancies. A vacancy in the City Council or in any other office designated as elective by this Charter, from whatever cause arising, shall be filled by appointment by the City Council. (b) Forfeiture. If a member of the City Council is absent from all regular meetings of the City Council for a period of thirty consecutive days from and after the last regular City Council meeting attended by such member, unless by permission of the City Council expressed in its official minutes, th e office shall become vacant. If an elected City officer pleads guilty or no contest to or is convicted of a felony or any crime of moral turpitude, or ceases to be an elector of the City, the office shall become vacant. The City Council shall declare the existence of such vacancy. Any elective officer of the City who shall accept or retain any other elective public office, except as provided in this Charter, shall be deemed thereby to have vacated the office under the City Government. (c) Replacement. In the event it shall fail to fill a vacancy by appointment within sixty days after such office shall become vacant, the City Council shall forthwith cause an election to be held to fill such vacancy for the remainder of the unexpired term. Section 313. CONFLICT OF INTEREST, NEPOTISM. (a) Conflict of Interest. The City Council shall adopt or approve rules and regulations regulating conflicts of interest and promoting fair dealing in all City business. (b) Nepotism. The City Council shall not appoint to a salaried position under the City government any person who is a relative by blood or marriage within the third degree of any one or more of the members of such City Council, nor shall the City Manager or any department head or other officer having appointive power appoint any relative of such person or of any Council member within such degree to any such position. This provision shall not affect the employment or promotional status of a person who has attained a salaried position with the City prior to the existence of a situation contemplated by this provision; however, Council members or officers with appointive powers in such a situation shall disqualify themselves from all decisions affecting the employment and promotional status of such person. ARTICLE IV APPOINTIVE OFFICES AND PERSONNEL Section 400. CITY MANAGER. COMPOSITION, TERM, ELIGIBILITY, REMOVAL. (a) Composition. There shall be a City Manager who shall be the chief administrative officer of the City. (b) Term. The City Manager shall be appointed by the affirmative vote of at least a majority of the members of the City Council and shall serve at the pleasure of the City Council; provided, however, that the person occupying the office shall not be removed from office except as herein provided. 89 City of Huntington Beach City Charter Page 11 of 20 12/6/10 (c) Eligibility. The City Manager shall be chosen on the basis of executive and administrative qualifications, with special reference to actual experience in and knowledge of accepted practice as regards the duties of the office as herein set forth. No person shall be eligible to be appointed City Manager or Acting City Manager while serving as a member of the City Council nor within one year following the termination of membership on the City Council. (d) Removal. The City Manager shall not be removed from office during or within a period of ninety days next succeeding any municipal election at which a member of the City Council is elected. At any other time the City Manager may be removed only at a regular meeting of the City Council and upon the affirmative vote of a majority of the members of the City Council. At least thirty days prior to the effective date of removal, the City Manager shall be furnished with a written notice stating the Council's intentions and, if requested by the City Manager, the reasons therefor. Within seven days after receipt of such notice, the City Manager may by written notification to the City Clerk request a public hearing before the City Council, in which event the Council shall fix a time for a public hearing which shall be held at its regular meeting place before the expiration of the thirty-day period above referred to. The City Manager shall appear and be heard at such hearing. After furnishing the City Manager with written notice of the intended removal, the City Council may suspend the City Manager from duty, but his compensation shall continue until removal as herein provided. In removing the City Manager, the City Council shall use its uncontrolled discretion and its action shall be final and shall not depend upon any particular showing or degree of proof at the hearing, the purpose of which is to allow the City Council and the City Manager to present to each other and to the public all pertinent facts prior to the final action of removal. Section 401. POWERS AND DUTIES. Except as otherwise provided in this Charter, the City Manager shall be responsible to the City Council for the proper administration of all affairs of the City. Without limiting this general grant of powers and responsibilities, the City Manager shall have the power and be required to: (a) Appoint, promote, demote, suspend or remove department heads, officers and employees of the City except elective officers and the Chief of Police. The Chief of Police shall not be appointed or removed until the City Manager shall first have reviewed such appointment or removal with the City Council and have received approval for such appointment or removal by a majority vote of the full City Council. (b) Prepare the budget annually, submit it to the City Council, and be responsible for its administration upon adoption. (c) Prepare and submit to the City Council as of the end of each fiscal year, a complete report on the finances of the City, and annually or more frequently, a current report of the principal administrative activities of the City. (d) Keep the City Council advised of the financial condition and future needs of the City and make such recommendations as may seem desirable. (e) Maintain a centralized purchasing system for all City offices, departments and agencies. (f) Prepare, administer and enforce rules and regulations recommended to and adopted by the City Council governing the contracting for, purchase, inspection, storage, inventory, distribution and disposal of all supplies, materials and equipment required by any office, department or agency of the City government. (g) Be responsible for the compliance by the City with the laws of the State pertaining to the City, the provisions of this Charter and the ordinances, franchises and rights of the City. 90 City of Huntington Beach City Charter Page 12 of 20 12/6/10 Subject to policy established by the City Council, exercise control of all administrative offices and departments of the City and of all appointive officers and employees, and prescribe such general rules and regulations as deemed necessary or proper for the general conduct of the administrative offices and departments of the City under their jurisdiction. (h) Perform such other duties consistent with this Charter as may be required by the City Council. Section 402. ACTING CITY MANAGER. During any temporary absence or disability of the City Manager, the City Manager shall appoint one of the other officers or department heads of the City to serve as Acting City Manager. In the event the City Manager fails to make such appointment, such appointment may be made by the City Council. Section 403. PERSONNEL. In addition to the City Council, a City Clerk, a City Treasurer, a City Attorney and City Manager, the officers and employees of the City shall consist of such other officers, assistants, deputies and employees as the City Council may provide by ordinance or resolution. The City Council shall establish such reasonable compensation and fringe benefits as are appropriate by ordinance or resolution for such offices, officials and employees except as herein provided. The City Council shall maintain by ordinance a comprehensive personnel system for the City. The City Manager and any officers designated as elective by the Charter shall be exempt. The system shall consist of the establishment of minimum standards of employment and qualifications for the various classes of employment and procedures to be followed in advancement, demotion, suspension and discharge of employees included within the system, as the City Council shall determine to be for the best interest of the public service. The ordinance shall designate the appointive officers and employees who shall be included within the system. By subsequent ordinances the City Council may amend the system or the list of appointive officers and employees included within the system. The system shall comply with all other provisions of this Charter. It shall be the duty of all department heads, whether appointed or elected, to assist and cooperate with the City Manager in administering the affairs of the City in the most efficient, fiscally responsible, and harmonious manner consistent with the duties as prescribed by law, City Charter, or by ordinance. Section 404. RETIREMENT SYSTEM. The City shall participate in a retirement system. Section 405. BOARDS, COMMISSIONS AND COMMITTEES. The City Council shall establish such boards, commissions and committees as are deemed necessary for the orderly functioning of the City. All such boards, commissions and committees shall report directly to the City Council. ARTICLE V ORDINANCES AND RESOLUTIONS Section 500. REGULAR ORDINANCES. ENACTMENT, ADOPTION, PUBLICATION, AMENDMENT, WHEN EFFECTIVE AND CODIFICATION. (a) Enactment. In addition to such other acts of the City Council as are required by this Charter to be taken by ordinance, every act of the City Council establishing a fine or other penalty, or granting a franchise, shall be by ordinance. The enacting clause of all ordinances shall be substantially as follows: "The City Council of the City of Huntington Beach does ordain as follows:" No order for the payment of money shall be adopted or made at other than a regular or adjourned regular meeting. Upon introduction, an ordinance shall be read by title only. Unless a higher vote is required by other provision s of this Charter, the affirmative vote of at least four of the City Council shall be required for the enactment of any ordinance or for the making or approving of any order for the payment of money. All ordinances shall be signed by the Mayor and attested by the City Clerk. 91 City of Huntington Beach City Charter Page 13 of 20 12/6/10 (b) Adoption. A regular ordinance shall be adopted only at a regular or adjourned regular meeting held no less than five days after its introduction. In the event that any ordinance is altered after its introduction, it shall be finally adopted only at a regular or adjourned regular meeting held no less than five days after the date it was so altered. The correction of typographical or clerical errors shall not constitute the making of an alteration within the meaning of the foregoing sentence. (c) Publication. The City Clerk shall cause each ordinance to be posted in three places designated by the City Council within the City and to be published by title with a brief summary at least once within fifteen days after its adoption in a daily, semiweekly or weekly newspaper, published in the County or the City and circulated in the City, which is selected by the City Council for that purpose. Current technology shall be used to ensure the widest possible dissemination. (d) Amendment. The amendment of any section or subsection of an ordinance may be accomplished solely by the re-enactment of such section or subsection at length, as amended. (e) When Effective. Every ordinance shall become effective thirty days from and after the date of its adoption, except the following, which shall take effect upon adoption: (1) An ordinance calling or otherwise relating to an election; (2) An improvement proceeding ordinance adopted under some special law or procedural ordinance relating thereto; (3) An ordinance declaring the amount of money necessary to be raised by taxation, or fixing the rate of property taxation, or levying the annual tax upon property. (4) An emergency ordinance adopted in the manner provided in this Charter. (f) Codification. Detailed regulations pertaining to any subject and comprehensive codifications of valid ordinances may be adopted by reference, with the same effect as an ordinance, in the manner set forth herein; however, such regulations and codifications need not be published in the manner required for other ordinances, but not less than three copies thereof shall be filed for use and examination by the public in the office of the City Clerk prior to adoption. Ordinances codified shall be repealed as of the effective date of the codification. Amendments to the code shall be enacted by ordinance. Section 501. EMERGENCY ORDINANCES. Any ordinance declared by the City Council to be necessary as an emergency measure for the immediate preservation of the public peace, health, or safety, and containing a statement of the reasons for its urgency, may be adopted in the manner provided in Section 500 except that such emergency ordinance may be introduced, enacted and adopted at one and the same regular or special meeting and shall take effect immediately upon adoption if passed by at least five affirmative votes. An emergency ordinance shall expire automatically after 120 days. Section 502. RESOLUTIONS. The City Council may act by resolution or minute order in all actions not required by this Charter to be taken by ordinance. Section 503. PUBLISHING OF LEGAL NOTICES. The City Council shall cause to be published all legal notices and other matters required to be published by law in a daily, semiweekly or weekly newspaper published in the County or the City and circulated in the City which is selected by the City Council for that purpose and using current technology. No defect or irregularity in proceedings taken under this section shall invalidate any publication where it is otherwise in conformity with this Charter or law or ordinance. 92 City of Huntington Beach City Charter Page 14 of 20 12/6/10 ARTICLE VI FISCAL ADMINISTRATION Section 600. FISCAL YEAR. The fiscal year of the City shall be as set forth by resolution of the City Council. Section 601. ANNUAL BUDGET, PREPARATION BY THE CITY MANAGER. At such date as the City Manager shall determine, each board or commission and each department head shall furnish to the City Manager, personally, or through the Director of Finance, estimates of the department's, board's or commission's revenue and expenditures for the ensuing fiscal year, detailed in such manner as may be prescribed by the City Manager. In preparing the proposed budget, the City Manager shall review the estimates, hold conferences thereon with the respective department heads, boards or commissions as necessary, and may revise the estimates as may be deemed advisable. Section 602. ANNUAL BUDGET. SUBMISSION TO THE CITY COUNCIL. The City Manager shall submit the proposed budget to the City Council at least thirty days prior to the beginning of each fiscal year. After reviewing the proposed budget and making such revisions as it may deem advisable, the City Council shall hold a public hearing thereon at least fifteen days prior to the beginning of each fiscal year and shall cause to be published a notice thereof not less than ten days prior to said hearing. Copies of the proposed budget shall be available for inspection by the public in the office of the City Clerk at least ten days prior to said hearing. Section 603. ANNUAL BUDGET. PUBLIC HEARING. At the time so advertised or at any time to which such public hearing shall from time to time be adjourned, the City Council shall hold a public hearing on the proposed budget, at which interested persons desiring to be heard shall be given such opportunity. Section 604. ANNUAL BUDGET. FURTHER CONSIDERATION AND ADOPTION. At the conclusion of the public hearing the City Council shall further consider the proposed budget and make any revisions thereof that it may deem advisable and on or before the last day of the fiscal year it shall adopt the budget with revisions, if any, by the affirmative vote of at least a majority of the total members of the Council. Upon final adoption, the budget shall be in effect for the ensuing fiscal year. Copies thereof, certified by the City Clerk, shall be filed with the City Manager, Director of Finance, City Treasurer and the person retained by the City Council to perform the post audit function, and a further copy shall be placed, and shall remain on file in the office of the City Clerk where it shall be available for public inspection. The budget so certified shall be reproduced and copies made available for the use of the public and of departments, offices and agencies of the City. Section 605. ANNUAL BUDGET APPROPRIATIONS. From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several departments, offices and agencies for the respective objects and purposes therein named; provided, however, that the City Manager may transfer funds from one object or purpose to another within the same department, office or agency. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered. At any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative vote of at least a majority of the total members of the City Council. Section 606. DETERMINATION OF CITY TAX RATE. The City Council shall prescribe by ordinance for the assessment, levy and collection of taxes upon property which is taxable for municipal purposes. If the City Council fails to fix the rate and levy taxes on or before August 31 in any year, the rate for the next preceding fiscal year shall thereupon be automatically adopted and a tax at such rate shall be deemed to have been levied on all taxable property in the City for the current fiscal year. 93 City of Huntington Beach City Charter Page 15 of 20 12/6/10 Section 607. TAX LIMITS. (a) The City Council shall not levy a property tax for municipal purposes in excess of One Dollar annually on each One Hundred Dollars of the assessed value of taxable property in the City, except as otherwise provided in this section, unless authorized by the affirmative vote of a majority of the electors voting on a proposition to increase such levy at any election at which the question of such additional levy for municipal purposes is submitted to the electors. The number of years that such additional levy is to be made shall be specified in such proposition. (b) There shall be levied and collected at the same time and in the same manner as other property taxes for municipal purposes are levied and collected, as additional taxes not subject to the above limitation, if no other provision for payment thereof is made: 1. A tax sufficient to meet all liabilities of the City of principal and interest of all bonds and judgments due and unpaid, or to become due during the ensuing fiscal year, which constitute general obligations of the City; and 2. A tax sufficient to meet all obligations of the City for the retirement system in which the City participates, due and unpaid or to become due during the ensuing fiscal year. (c) Special levies, in addition to the above and not subject to the above limitation, may be made annually, based on City Council approved estimates, for the following specific purposes, but not to exceed the following respective limits for those purposes for which limits are herein set forth, to wit: parks and recreation and human services not to exceed $0.20 per One Hundred Dollars; Libraries not to exceed $0.15 per One Hundred Dollars; promotional interests and cultural affairs not to exceed $0.07 per One Hundred Dollars; and civil defense and disaster preparedness not to exceed $0.03 per One Hundred Dollars. The proceeds of any special levy shall be used for no other purpose than that specified. Section 608. VOTE REQUIRED FOR TAX MEASURES. No tax, property tax, or other measure whose principal purpose is the raising of revenue, or any increase in the amount thereof, shall be levied, enacted or established except by ordinance adopted by the affirmative vote of at least five (5) members of the City Council; provided, however, that any tax levied or collected pursuant to Section 607(b) of this Charter shall be exempt from the minimum voting requirement of this section. This section shall not apply to any license, permit, or any other fee or charge whose principal purpose is to pay or reimburse the City for the cost of performing any regulatory function of the City under its police power in connection with the City's duty to preserve or maintain the public peace, health, safety and welfare. This section shall not apply to any user or service fee or charge provided such fee or charge is directly related to such use or service, is charged to the user or person receiving such service, and is to pay or reimburse the City for the costs of providing such use or service. This section shall not apply to any fee or charge relating to any franchise or proprietary function of the City. Section 609. REAL ESTATE TRANSFER TAX. The City Council shall not levy a tax on the transfer or conveyance of any interest in real property unless authorized by the affirmative vote of a majority of the electors voting on a proposition submitted to the electors to authorize such tax at a general or special election. 94 City of Huntington Beach City Charter Page 16 of 20 12/6/10 Section 610. BONDED DEBT LIMIT. The City shall not incur an indebtedness evidenced by general obligation bonds which shall in the aggregate exceed the sum of 12 percent of the total assessed valuation, for purposes of City taxation, of all the real and personal property within the City. No bonded indebtedness which shall constitute a general obligation of the City may be created unless authorized by the affirmative vote of the majority required by law of the electors voting on such proposition at any election at which the question is submitted to the electors. Section 611. REVENUE BONDS. Bonds which are payable only out of such revenues, other than taxes, as may be specified in such bonds, may be issued when the City Council by ordinance shall have established a procedure for the issuance of such bonds. Such bonds, payable only out of revenues, shall not constitute an indebtedness or general obligation of the City. No such bonds payable out of revenues shall be issued without the assent of the majority of the voters voting upon the proposition for issuing the same at an election at which such proposition shall have been duly submitted to the registered voters of the City. It shall be competent for the City to make contracts and covenants for the benefit of the holders of any such bonds payable only from revenues and which shall not constitute a general obligation of the City for the establishment of a fund or funds, for the maintaining of adequate rates or charges, for restrictions upon further indebtedness payable out of the same fund or revenues, for restrictions upon transfer out of such fund, and other appropriate covenants. Money placed in any such special fund for the payment of principal and/or interest on any issue of such bonds or to assure the application thereof to a specific purpose shall not be expended for any other purpose whatever except for the purpose for which such special funds were established and shall be deemed segregated from all other funds of the City and reserved exclusively for the purpose for which such special fund was established until the purpose of its establishment shall have been fully accomplished. Section 612. PUBLIC UTILITIES AND PARKS AND BEACHES. (a) No public utility or park or beach or portion thereof now or hereafter owned or operated by the City shall be sold, leased, exchanged or otherwise transferred or disposed of unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted. (b) No golf course, driving range, road, building over three thousand square feet in floor area nor structure costing more than $161,000.00 may be built on or in any park or beach or portion thereof now or hereafter owned or operated by the City unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted after the appropriate environmental assessment, conceptual cost estimate, and reasonable project description has been completed and widely disseminated to the public. Effective January 1, 2011, and each year thereafter, the maximum cost will be adjusted by the Consumer Price Index for the Los Angeles-Riverside-Orange County area. (c) Section 612(a) and 612(b) shall not apply; (1) to libraries or piers; (2) to any lease, franchise, concession agreement or other contract where; - the contract is to perform an act or provide a service in a public park or beach AND - such act was being performed or service provided at the same location prior to January 1, 1989 AND 95 City of Huntington Beach City Charter Page 17 of 20 12/6/10 - the proposed lease, franchise, concession agreement or other contract would not increase the amount of parkland or beach dedicated to or used by the party performing such act or providing such service. (3) to above ground public works utility structures under 3,000 square feet; (4) to underground public works utility structures if park or beach use is not impeded; (5) to any public works construction, maintenance or repair mandated by state or federal law that does not negatively impact recreational opportunities; or (6) to renewable energy projects that do not negatively impact recreational opportunities. (d) If any section, subsection, part, subpart, paragraph, clause or phrase of this amendment, or any amendment or revision of this amendment, is for any reason held to be invalid or unconstitutional, the remaining sections, subsections, parts, subparts, paragraphs, clauses or phrases shall not be affected but shall remain in full force and effect. Section 613. EXECUTION OF CONTRACTS. Except as hereinafter provided, the City shall be bound by a contract only if it is made in writing, approved by the City Council and signed on behalf of the City by the Mayor and City Clerk or by a City officer designated by the City Council and only upon the direction of the City Council. Exceptions to this procedure are as follows: (a) By ordinance or resolution the City Council may authorize the City Manager or other officer to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services or other items included within the budget approved by the City Council, and may impose a monetary limit upon such authority. (b) By ordinance or resolution, the City Council may provide a method for the sale or exchange of personal property not needed in the City service or not fit for the purpose for which intended, and for the conveyance of title thereto. (c) Contracts for the sale of the products, commodities or services of any public utility owned, controlled or operated by the City may be made by the manager of such utility or by the head of the department or City Manager upon forms approved by the City Manager and at rates fixed by the City Council. Section 614. CONTRACTS ON PUBLIC WORKS. Except as hereinafter expressly provided, every contract involving an expenditure as set forth by ordinance of the City Council for the construction or improvement (excluding maintenance and repair) of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds, and each separate purchase of materials or supplies for the same, where the expenditure required for such purchase shall exceed the amount set by ordinance, shall be let to the lowest responsible bidder after notice by publication in accordance with Section 503 by two or more insertions, the first of which shall be at least ten days before the time for opening bids. The City Council may reject any and all bids presented and may readvertise in its discretion. After rejecting bids, or if no bids are received, or without advertising for bids if the total amount of the contract or project is below the amount set by ordinance, the City Council may declare and determine that in its opinion, the work in question may be performed better or more economically by the City with its own employees, or that the materials or supplies may be purchased at lower price in the open market, and after the adoption of a resolution to this effect by the affirmative vote of a majority of the total members of the 96 City of Huntington Beach City Charter Page 18 of 20 12/6/10 City Council, it may proceed to have said work done or such materials or supplies purchased in the manner stated without further observance of the provisions of this section. All public works contracts exceeding the amount set by ordinance may be let and purchases exceeding the amount set by ordinance may be made without advertising for bids if such work or the purchase of such materials or supplies shall be deemed by the City Council to be of urgent necessity for the preservation of life, health, or property and shall be authorized by at least five affirmative votes of the City Council. Projects for the extension, replacement or expansion of the transmission or distribution system of any existing public utility operated by the City or for the purchase of supplies or equipment for any such project or any such utility may be excepted from the requirements of this section by the affirmative vote of a majority of the total members of the City Council. Section 615. GRANTING OF FRANCHISES. The City Council shall by ordinance regulate the granting of franchises for the City. Section 616. INDEPENDENT AUDIT. The City Council shall provide for an independent annual audit of all City accounts and may provide for such more frequent audits as it deems necessary. Such audits shall be made by a certified public accountant or firm of such accountants who have no personal interest, direct or indirect, in the fiscal affairs of the City government or any of its officers. The Council may, without requiring competitive bids, designate such accountant or firm annually provided that the designation for any particular fiscal year shall be made no later than thirty days after the beginning of such fiscal year. As soon as practicable after the end of the fiscal year, a final audit and report shall be submitted by such accountant to the City Council, one copy thereof to be distributed to each member. Additional copies of the audit shall be placed on file in the office of the City Clerk where they shall be available for inspection by the general public, and a copy of the financial statement as of the close of the fiscal year shall be published in the official newspaper. Section 617. INFRASTRUCTURE FUND. (a) All revenue raised by vote of the electors or imposed by vote of the City Council on or after March 5, 2002, by a measure which states that the revenue to be raised is for the purpose of infrastructure, as said term is defined in this paragraph, shall be placed in a separate fund entitled "Infrastructure Fund." The term "Infrastructure" shall mean long-lived capital assets that normally are stationary in nature and normally can be preserved for significantly greater number of years. They include storm drains, storm water pump stations, alleys, streets, highways, curbs and gutters, sidewalks, bridges, street trees, landscaped medians, parks, beach facilities, playgrounds, traffic signals, streetlights, block walls along arterial highways, and all public buildings and public ways. Interest earned on monies in the Infrastructure Fund shall accrue to that account. Monies in said Fund shall be utilized only for direct costs relating to infrastructure improvements or maintenance, including construction, design, engineering, project management, inspection, contract administration and property acquisition. Monies in said Fund shall not be transferred, loaned or otherwise encumbered for any other purpose. (b) Revenues placed in the Infrastructure Fund shall not supplant existing infrastructure funding. The average percentage of general fund revenues utilized for infrastructure improvements and maintenance, for the five- (5) year period of 1996 to 2001, is and was 14.95%. Expenditures for infrastructure improvements and maintenance, subsequent to 2001, shall not be reduced below 15% of general fund revenues based on a five- (5) year rolling average. (c) The City Council shall by ordinance establish a Citizens Infrastructure Advisory Board to conduct an annual review and performance audit of the Infrastructure Fund and report its findings to the City Council prior to adoption of the following fiscal-year budget. 97 City of Huntington Beach City Charter Page 19 of 20 12/6/10 ARTICLE VII ELECTIONS Section 700. GENERAL MUNICIPAL ELECTIONS. General municipal elections shall be held in the city on the first Tuesday after the first Monday in November in each even-numbered year. Section 701. SPECIAL MUNICIPAL ELECTIONS. All other municipal elections that may be held by authority of this Charter, or of any law, shall be known as special municipal elections. Section 702. PROCEDURE FOR HOLDING ELECTIONS. All elections shall be held in accordance with the provisions of the Elections Code of the State of California, as the same now exists or hereafter may be amended, for the holding of municipal elections, so far as the same are not in conflict with this Charter. Section 703. INITIATIVE, REFERENDUM AND RECALL. There are hereby reserved to the electors of the City the powers of the initiative and referendum and of the recall of municipal elective officers. The provisions of the Elections Code of the State of California, as the same now exists or hereafter may be amended, governing the initiative and referendum and the recall of municipal officers, shall apply to the use thereof in the City so far as such provisions of the Elections Code are not in conflict with the provisions of this Charter. Section 704. NOMINATION PAPERS. Nomination papers for candidates for elective municipal office must be signed by not less than twenty nor more than thirty electors of the City. ARTICLE VIII MISCELLANEOUS Section 800. TRANSITION. Elective officers and elective officers whose offices are made appointive of the City shall continue to hold such offices until the completion of their current terms and the election or appointment and qualification of their respective successors under this Charter. All boards, commissions and committees presently in existence shall continue to act in accordance with their original grant of authority until such time as the City Council adopts appropriate ordinances pertaining to their activities or for one year, whichever occurs first. All lawful ordinances, resolutions, rules and regulations, and portions thereof, in force at the time this Charter takes effect and not in conflict or inconsistent herewith, are hereby continued in force until the same shall have been duly repealed, amended, changed or superseded by proper authority. Section 801. DEFINITIONS. Unless the provisions or the context otherwise requires, as used in this Charter: (a) "Shall" is mandatory, and "may" is permissive. (b) "City" is the City of Huntington Beach and "department," "board," "commission," "agency," "officer," or "employee" is a department, board, commission, agency, officer or employee, as the case may be, of the City of Huntington Beach. (c) "County" is the County of Orange. (d) "State" is the State of California. (e) The masculine includes the feminine and the feminine includes the masculine. (f) The singular includes the plural and the plural the singular. 98 City of Huntington Beach City Charter Page 20 of 20 12/6/10 (g) "Person" includes firm and corporation. Section 802. VIOLATIONS. The violation of any provision of this Charter shall be a misdemeanor. Section 803. PROPERTY RIGHTS PROTECTION MEASURE. (a) The City shall not enact or enforce any measure which mandates the price or other consideration payable to the owner in connection with the sale, lease, rent, exchange or other transfer by the owner of real property. Any such measure is hereby repealed. (b) The word "mandates" as used in subsection (a) includes any measure taken by ordinance, resolution, administrative regulation or other action of the City to establish, continue, implement or enforce any control or system of controls on the price or other terms on which real property in the city may be offered, sold, leased, rented, exchanged or otherwise transferred by its owner. The words "real property" as used in subsection (a) refer to any parcel of land or site, either improved or unimproved, on which a dwelling unit or residential accommodation is or may be situated for use as a home, residence or sleeping place. (c) This Section 803 shall not apply to: (1) any real property which contains serious health, safety, fire or building code violations, excluding those caused by disasters, for which a civil or criminal citation has been issued by the City and remains unabated for six months or longer; (2) any real property owned by a public entity, and real property where the owner has agreed by contract with the public entity, including the City and any of its related agencies, to accept a financial contribution or other tangible benefit including without limitation, assistance under the Community Redevelopment Law; (3) any planning or zoning power of the City as relates to the use, occupancy or improvement of real property and to any real property which the City or any of its related agencies may acquire by eminent domain, purchase, grant or donation; (4) any power of the City to require a business license for the sale or rental of real property, whether for regulation or general revenue purposes; (5) any dwelling unit or accommodation in any hotel, motel or other facility when the transient occupancy of that dwelling unit or accommodation is subject to a transient occupancy tax; or (6) to impair the obligation of any contract entered into prior to the enactment of this Section 803 or otherwise required by State law. Section 804. CHARTER REVIEW. The City Council shall determine if there is a need to convene a citizen’s Charter Review Commission to conduct a review of the City Charter no less frequently than every ten years. 99 100 101 102 Council Meetings (All meetings are subject to the Brown Act) Regular Council Meetings. Regular meetings of the City Council/Public Financing Authority are held on the first and third Tuesday Mondays of each month, and typically begin on or preceding the hour of 4:00 P.M in the Council Chambers. A Study Session used to present information to Council for discussion purposes only with no objection being taken or Closed Session may be convened subject to the Brown Act, and may be scheduled prior to the main, public meeting that convenes at 6:00 P.M. in the Council Chambers. If a regularly scheduled meeting falls on a holiday, the meeting will be held on the next business day. Special Council Meetings. Special meetings including meetings to adjourn to Closed Session may be called by the Mayor or a majority of the members of the Council, and noticed accordingly to identify the time and place of the special meeting. Public Input. Each regular meeting shall provide an opportunity for members of the public to address the Council on items that are within the subject matter jurisdiction of the Council. The Mayor, subject to appeal as a decision of the chair, may establish time limits for particular issues and individual speakers. Members of the public wishing to speak shall follow public comment instructions provided within the agendafill out a form provided by the City Clerk, and will be called to speak the podium at the appropriate time to provide comments within a 3-minute time limit. No person may donate his or her time to another speaker. Parliamentary Procedure Roberts Rules of Order. In all matters of parliamentary procedure not expressly provided for in the City Charter or the ordinances or resolutions of the City of Huntington Beach, the procedure contained in the current edition of Roberts Rules of Order, as it now exists or future revisions thereof, shall control. Failure to comply with technical procedural rules shall not affect the Council’s ultimate decision except to the extent the failure violates due process. Parliamentarian. The City Attorney is parliamentarian for the City Council, and upon the request of the Mayor or upon his own initiative, shall make rulings on points of parliamentary procedure. Motions. Motions may be made by any member of the Council and require a second, except when a second is not required by Roberts Rules of Order. A motion may be withdrawn by the mover with the consent of the second and in the absence of objection from any other member of the Council. The Vote. The vote on all motions shall be by roll call, and recorded by electronic or other means necessary to record the vote. 103 Division of Question (“Split Vote”). If the question contains two (2) or more divisible propositions, the Mayor may, and at the request of any Councilperson shall, divide the question (also called “split vote”). Example: 1. Waive further reading of ordinance/resolution (requires unanimous vote) 2. Adopt Tie votes. If a vote results in a tie, the motion fails except that on appellate matters a tie vote on a motion to sustain the lower body’s decision has the effect of sustaining the decision of the lower body. A tie vote on a negative motion does not approve the affirmative side of the motion. Thus, a tie vote on a motion to disapprove or not to do something does not automatically adopt the opposite. After such tie vote, the question should be made in the affirmative mode. Rights of Mayor. Each member of Council including the Mayor may make motions, second motions and vote on motions. The practice of some deliberative bodies where the Chairman does not vote except to break a tie does not apply to the Council. Other Actions. Actions which are not required by the City Charter or City ordinances to be in the form of ordinances or resolutions may be effectuated by minute action. Minute Actions. In all situations where an action of the Council under the express provisions of the City Charter or ordinances shall or may be by resolution, a “minute action” of the Council adopted by at least four (4) affirmative votes shall be deemed a resolution for all purposes, and such action shall not fail merely because it lacks the form or title of a resolution. Minute actions require the affirmative votes of a majority of Councilpersons present and voting, but not less than three (3), except when less than a quorum is present, the lesser number may adjourn from time to time. Motion to Reconsider. A motion to reconsider, when appropriate under the Brown Act and Roberts Rules of Order, may be made at the same meeting or no later than the next regular meeting if the item is placed on the agenda of the City Council by a Councilperson who voted on the prevailing side of the motion to which it applies. • The vote required to adopt a motion to reconsider shall be a simple majority of Councilpersons present and voting, except that such motion shall require four (4) affirmative votes in order to reconsider any motion which required four (4) affirmative votes for adoption. • A motion to reconsider may be made only once with respect to any motion to which it applies. However, a motion to reconsider a main motion does not preclude the making 104 of a motion to which it applies. • A motion to reconsider a main motion does not preclude the making of a motion to reconsider the main motion as amended. • A motion to amend may be reconsidered. • A motion to reconsider a motion to reconsider is not permitted. The vote on the motion to reconsider shall be taken at the time the motion to reconsider is made except that the vote on a motion “to reconsider and enter upon the minutes” shall be taken at the next regular meeting of the City Council if said minutes are on the agenda. • The effect of the adoption of a motion to reconsider is to vacate the vote taken on the motion to which it applies and to present the motion to which it applies to the body for action as if no vote had been taken on it. The new vote on the motion to which it applies neither sustains nor overrules such motion because the old vote is vacated, and the new vote is taken as though no previous vote had been taken. Vote Required on Appellate Matters. Where action has been taken by a lower body that would be final if not appealed, such as decisions by the Zoning Administrator or the Planning Commission, and is subsequently appealed to the higher body, the following procedure applies: 1. If the motion is to sustain the lower body’s decision, a majority of those present and voting is sufficient (four (4) affirmative votes not required). It is not necessary to make a motion to overrule. When there is a tie vote, the lower body is sustained. However, if the motion to sustain gets less than a tie vote, a motion to overrule must be made. 2. If the motion is to overrule the decision of the lower body, four (4) affirmative votes are required. If there are less than four (4) affirmative votes, the decision of the lower body is deemed sustained and no further vote is required. 3. If a motion is made to modify the decision of the lower body, two separate steps must be taken: a) First, the motion to modify requires four (4) affirmative votes. b) Second, if the motion to modify is adopted, a motion to sustain the decision of the lower body as modified requires the same vote as the motion to sustain. c) A motion to overrule the decision of the lower body, as modified, requires four (4) affirmative votes. If there are less than four affirmative votes, the decision of the lower body, as modified, is deemed sustained without further vote. 105 d) If a motion to modify fails, the next motion is either to sustain or to overrule the subordinate body. Doing Business After 11:00 P.M. No meeting shall continue beyond 11:00 P.M. without a majority vote of the Council (Resolution No. 2015-46). 106 107 The Agenda Process The Agenda Process is a schedule of activities that occur prior to placing an item on the City Council/Public Financing Authority agenda. In March 2003, Council approved a policy that provided a timeline for agenda-related activities to facilitate timely compilation and delivery of the agenda packet to Council, staff, and the public. Agenda activities include creation of a Request for Council Action (RCA/staff report), and depending upon the type of request, may require scheduling a public hearing, submitting a Request for Legal Service (RLS) to the City Attorney (legal review of a document or request to prepare a resolution or ordinance), review of fiscal impact information by the Finance Department, and others. All RCAs must be submitted to the City Manager for review and approval. The City Manager may request department modifications to the RCA, and once approved, the RCA is forwarded to the City Clerk for additional review for complete materials and final placement on a future agenda. The City Clerk prepares a draft agenda and presents it to the City Manager, City Attorney, department heads and select Councilmembers at Agenda Review, a meeting held each Monday afternoon the week preceding a regularly scheduled City Council meeting. This meeting is designed to provide staff and the Mayor an opportunity to share information, ask questions or make recommendations to the agendized items. Agenda Review is also the last day a Councilmember can place an item on the agenda. Exceptions can be made for a time-sensitive item that cannot be delayed to a future Council meeting. Items placed on the agenda by individual Councilmembers will be agendized for future action by the City Manager. Following Agenda Review, agenda packet material is finalized and electronically compiled into iLegislate, the application used by Council and staff to review agenda-related materials on City- issued iPads or personal e-devices. At 5:00 p.m. on the Wednesday preceding a regularly scheduled City Council meeting, Council is advised by email communication that the e-packet is accessible and ready for downloading onto their City-issued iPads or personal e-devices. Following release to Council, agenda material is made visible to staff and the public at https://huntingtonbeach.legistar.com/Calendar.aspx. If a holiday occurs on the Monday or Tuesday prior to Wednesday’s scheduled agenda packet release, delivery of packet material to Council and the public may delayed by one additional day. Please refer to the 2022 2021 City Council Agenda Deadline Schedule (attached) as an outline of the agenda process schedule for staff and Councilmembers. 108 2022 CITY COUNCIL AGENDA DEADLINE SCHEDULE MEETING DATE PUBLIC HEARING NOTICE DUE TO CITY CLERK (20 Days Prior) RCA DUE TO FINANCE MON. 5 PM (15 Days Prior) RCA DUE TO CITY MANAGER WED. 5 PM (13 Days Prior) CITY MANAGER’S AGENDA REVIEW (Councilmember Items Due) MON. 4 PM (8 Days Prior) PACKET RELEASE WED. 5 PM (6 Days Prior) 01/18 12/29/21 01/03 01/05 01/10 01/12 02/01 01/12 *01/18 01/19 01/24 01/26 02/15 01/26 01/31 02/02 02/07 02/09 03/01 02/09 02/14 02/16 02/22 02/23 03/15 02/23 02/28 03/02 03/07 03/09 04/05 03/16 03/21 03/23 03/28 03/30 04/19 03/30 04/04 04/06 04/11 04/13 05/03 04/13 04/18 04/20 04/25 04/27 05/17 04/27 05/02 05/04 05/09 05/11 06/07 05/18 05/23 05/25 05/31 06/01 06/21 06/01 06/06 06/08 06/13 06/15 07/05 06/15 06/20 06/22 06/27 06/29 07/19 06/29 *07/05 07/06 07/11 07/13 08/02 07/13 07/18 07/20 07/25 07/27 08/16 07/27 08/01 08/03 08/08 08/10 09/06 08/17 08/22 08/24 08/29 08/31 09/20 08/31 *09/06 09/07 09/12 09/14 10/04 09/14 09/19 09/21 09/26 09/28 10/18 09/28 10/03 10/05 10/10 10/12 11/01 10/12 10/17 10/19 10/24 10/26 11/15 10/26 10/31 11/02 11/07 11/09 12/06 11/16 11/21 11/23 11/28 11/30 12/20 11/30 12/05 12/07 12/12 12/14 *Holiday 109 110 Procedure for Selection of Mayor Pro Tem The procedure for selection of the Mayor Pro Tem, pursuant to Resolution No. 6320, Charter Sections 305 and 306, shall be as follows: 1. At the City Council meeting following any general or special municipal election at which any Councilmember is installed, or as soon thereafter as the results of the election are certified, the Council shall elect a Mayor and a Mayor Pro Tem. In non-election years, the selection of Mayor and Mayor Pro Tem shall be made at the first regular meeting held in December. 2. The Mayor and Mayor Pro Tem shall serve terms of one year. 3. The member of the Council serving as Mayor Pro Tem shall become the Mayor upon the expiration of the seated Mayor’s term. 4. The member of the Council having the longest consecutive City Council service shall become the Mayor Pro Tem. a) In the event that two Councilmembers have the same length of service, then the member who received the greatest number of votes in the last Council election in which such member was elected shall become Mayor Pro Tem. b) If any member declines his/her term as it arises in rotation, that member shall remain in the same place in the rotation cycle as if he/she had served. c) Any Councilmember who has served as Mayor within the last four years will not be eligible for election as Mayor Pro Tem. 111 112 Code of Ethics In October 1993, the City Council adopted a City Code of Ethics by ordinance and resolution that would set a standard of conduct for all elected officials, officers, employees, and members of advisory boards, commissions, and committees of the City of Huntington Beach. The most recent revision to the Code of Ethics was approved in November 2016. Resolution No. 2016-73 requires that the City Council, City Departments, and all boards, commissions and committees are to formally review the Code of Ethics with their members on an annual basis. In January of each year, the Mayor presents the Code of Ethics to the City Council, and “directs the City Clerk to record in the official minutes that the City Code of Ethics was presented to the City Council, City Manager, Chairpersons, and City Department Directors for their review and distribution as required by Resolution No. 2016-73.”(1) The Council also finds that “Any official found to be in violation of the Code of Ethics may be subject to censure by the City Council. Any member of an advisory board, commission or committee found to be in violation may be subject to dismissal. In the case of an employee, appropriate action shall be taken by the City Manager or by an authorized designee.”(2) (1)Resolution 2016-73 (2)Resolution Nos. 6524 (10/93); 6540 (11/93) 113 City of Huntington Beach Code of Ethics Preamble The citizens of the City of Huntington Beach are entitled to responsible, fair and honest city government that operates in an atmosphere of respect and civility. Accordingly, the Huntington Beach City Council, adopts this code to: 1. Describe the standards of behavior to which its leaders and staff aspire. 2. Provide an ongoing source of guidance to elected leaders, city officials and staff in their day-to-day service to the city. 3. Promote and maintain a culture of ethics. Pledge On , the City Council of the City of Huntington Beach adopted a Code of Ethics, which applies to all City elected or appointed officials, city employees, and members of its boards, commissions, committees, and task forces and requires the following pledge: Code of Ethics Responsibility • I understand that the community expects me to serve with dignity and respect, as well as be an agent of the democratic process. • I avoid actions that might cause the public to question my independent judgment. • I do not use my office or the resources of the city for personal or political gain. • I am a prudent steward of public resources and actively consider the impact of my decisions on the financial and social stability of the city and its citizens. Fairness • I promote consistency, equity and non-discrimination in public agency decision-making. • I make decisions based on the merits of an issue, including research and facts. • I encourage diverse public engagement in our decision-making processes and support the public's right to know. Respect • I treat my fellow city officials, staff, commission members and the public with patience, courtesy, civility, and respect, even when we disagree on what is best for the community and its citizens. Honesty • I am honest with all elected officials, staff, commission members, boards, the public and others. • I am prepared to make decisions when necessary for the public's best interest, whether those decisions are popular or not. • I take responsibility for my actions, even when it is uncomfortable to do so. 114 ACKNOWLEDGEMENT PROCESS FOR THE CITY OF HUNTINGTON BEACH CODE OF ETHICS • All current elected and appointed city officials including current members of all city boards, commissions, committees, and task forces, and all current city employees will be given a copy of the newly adopted City Code of Ethics following its adoption on and asked to sign an acknowledgement form at that time. THEREAFTER: • All elected officials of the city will be given a copy of the City Code of Ethics and asked to sign an acknowledgement form at the time of their swearing in. • All new employees of the city will be given a copy of the City Code of Ethics and asked to sign an acknowledgement form as part of their new employee orientation. • Each new member of a city board, commission, committee, or task force will be given a copy of the City Code of Ethics and asked to sign an acknowledgement form at their first meeting. 115 CITY OF HUNTINGTON BEACH CODE OF ETHICS ACKNOWLEDGEMENT OF RECEIPT FORM Name Title Board/Department Date Signature 116 117 Required Trainings for Council Members AB 1234 – Ethics; AB 1661 – Sexual Harassment Prevention Ethics Training In addition to the City Code of Ethics, effective January 1, 2016, each local official of cities, counties, and special districts in California are mandated by state law to receive at least two hours of training in general ethics principles and ethics laws relevant to his or her public service every two years. The City Attorney's Office runs training sessions in compliance with the requirements of AB 1234 approximately every six months. An online training program by FPPC on a cost-free basis can be accessed via their website at http://www.fppc.ca.gov/learn/public-officials-and-employees-rules- /ethics-training.html. The Institute of Local Government (ILG) also offers two one-hour self-study exercises (https://www.ca-ilg.org/ethics-education-and-training-ab-1234) as an option for local officials to satisfy AB 1234 requirements. Sexual Harassment Prevention Training and Education State law requires all city officials in California to complete at least 2-hours of sexual harassment prevention training and education if the local agency provides any type of compensation, salary, or stipend to those officials. This training content includes federal and state statutes outlawing sexual harassment, solutions available to victims, and “practical examples” to teach officials how to prevent sexual harassment, discrimination, and retaliation in the workplace. Thus, City Council member must receive training within the first six months of taking office and renew at least once every two years. Attendance to this training is aligned with the City’s commitment to preventing inappropriate conduct at all times and creating a work environment that is safe, respectful, and free of any types of harassment, discrimination and retaliation. See Administrative Regulation 412 (attached) for more details. Training and/or education may be offered internally through the City Attorney’s Office, or by ILG, nonprofits, or commercial organizations -- please consult with the City Clerk’s office. Costs related to attend such trainings can be reimbursed by the City. NOTE: When these trainings are finished, you must print the Certification of Completion (both) provided at the end of such trainings and submit a copy of the certificate to the City Clerk in a timely manner. These laws require the City Clerk to retain training records for five (5) years minimum as these public records are subject to disclosure under the California Public Records Act, as specified. 118 119 120 121 122 123 124 125 126 127 128 129 Statewide Ballot Propositions The City Council shall take no stand, either pro or con, with respect to any statewide ballot proposition. (Resolution 4344 – 10/76) Appeal of Planning Decisions A City Council member may appeal a decision of the director, Design Review Board, Environmental Assessment Committee, Subdivision Committee, Planning Commission or Zoning Administrator. The appeal shall be processed in the same manner as an appeal by any other person but need not be accompanied by the fee prescribed for an appeal. (HBZSO §248.28) The City Council member appealing the decision is not disqualified by that action from participating in the appeal hearing and the deliberations nor from voting as a member of the reviewing body. (HBZSO §248.28) The time limit for filing the appeal is ten (10) calendar days after the decision. The appeal must specify in detail the reasons for the appeal, and the hearing is limited to the specific reasons. Guidelines for Councilpersons representing the City at conferences or other such meetings At any conference or other such meeting where the City is represented by one or more members of the City Council, the following guidelines shall be followed per Resolution 4366- 12/76: 1. Whenever possible, Councilpersons shall represent the City as “instructed delegates by majority vote of the City Council.” 2. In the event no prior instructions or directions have been given, a poll shall be taken of the delegates attending such conference, or other such meeting, so that any vote or action taken by such Councilpersons shall reflect the wishes of a majority of delegates. 3. In the event no prior instructions or directions have been given delegates, or in the event that the City of Huntington Beach is not represented at a conference or other such meeting, but the matter at issue is one on which the Orange County League of Cities has taken a stand concurred in by the City of Huntington Beach, the City Council shall be bound by the action taken on such issue by the Orange County League of Cities. Additional guidelines include: 4. Members of the Council should avoid discussion or comment on the City matters at conferences or other such meetings or on social media, other than as part of the scheduled program. Discussions where 4 or more City Councilmembers are present could 130 inadvertently create a “serial meeting” of a majority of the members of the Council in violation of the Brown Act. 5. Each Councilmember has a travel budget used for expenses when attending conferences or training. The Council’s Administrative Assistant can verify each year the amount budgeted for travel, and guidelines for use of funds can be found in Resolution No. 2006- 79 (attached). A per diem allowance is available for each full day of out-of-town travel to a conference or training, and/or on official business authorized by the Council. If/when a Councilmember depletes allocated travel funds, additional travel may be funded by another Councilmember who still has travel funds available. 6. If any more than 3 Councilmembers want to attend the same conference, then seniority would determine who attends. Seniority is determined by the Councilmember position with the Mayor having first right of refusal and the immediate past Mayor placed at the bottom of the list. 131 132 133 134 135 136 137 Appointments to Boards, Commissions and Committees When a vacancy occurs for any reason on any board or agency over which Council has power to fill by appointment, subject to the provisions of the Maddy Act (Government Code § 54970), the following procedure shall be used to fill such vacancy: 1. On or before December 31 of each year, the City Clerk shall prepare and bring before Council for approval the Maddy Act Local Appointments List (attached), that alerts citizens of vacancies scheduled to occur on regular and ongoing boards, commissions and committees appointed by Council in the following year. 2. The Local Appointments List will be published and remain on the City’s website for the entire year, and shall also be posted at bulletin board locations accessible to the public. 3. When an unscheduled vacancy occurs, a special Notice of Vacancy (NOV) shall be published and posted not earlier than twenty (20) days before, or not later than twenty (20) days after, the vacancy occurs. A final appointment shall not be made for at least ten (10) working days after a posting of vacancy. If Council finds that an emergency exists, it may fill the vacancy immediately provided that the person appointed shall serve only on an acting basis until the final appointment is made. 4. The Council shall, as soon as is reasonably possible, fill any such vacancies, but nothing herein shall be construed to limit its choice to a person who has submitted an application, as outlined above. Based on applications received per each board, commission or committee, Council and staff liaisons will work together to evaluate each applicant’s qualifications, and put forth a recommendation to the City Council for approval. 138 City of Huntington Beach LOCAL APPOINTMENTS LIST – 2022 Opportunity for Public Service on City Boards, Commissions, Committees CITY BOARDS, COMMISSIONS AND COMMITTEES TERMS WHICH HAVE EXPIRATION DATES OCCURING IN CALENDAR YEAR 2022 This list is prepared to inform members of the community of opportunities to serve on City boards, commissions, committees, and to invite applications from interested parties per Chapter 11, Section 54970, Part 1, Division 2, Title 5 of the California Government Code. Please note that the following information pertains to openings that will be available in 2022 because of expiration of members’ terms. Very often during the year there will be openings on boards, commissions and committees because members resign. These openings are posted separately at the Civic Center and Huntington Central Library, and are listed on the city’s website at: https://www.huntingtonbeachca.gov/government/boards_commissions/notice_of_vacancies.cfm. Applications for public service on a City Board, Commission, Committee can be accessed here: https://huntingtonbeachca.gov/government/boards_commissions/. ROBIN ESTANISLAU, CITY CLERK Office of the City Clerk 2000 Main Street, 2nd Floor 714-536-5227 139 CHARTER REVISION COMMITTEE (Ad-hoc Committee with Individual Council Appointees; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Appointed By Cynthia Benton 10-05-2021 Rhonda Bolton Casey McKeon 09-21-2021 Erik Peterson Scott Miller 10-19-2021 Dan Kalmick Damon Mircheff 10-05-2021 Natalie Moser Leonie Mulvihill 09-21-2021 Kim Carr Charles Ray 09-21-2021 Mike Posey Dianne Thompson 10-05-2021 Barbara Delgleize Mission/Purpose: Charter Revision Committees periodically review the City Charter and potentially recommend amendments to improve the structure, transparency, and efficacy of City operations. Amendments should reflect the systems, culture, and needs of the community as they evolve over time. Members and Appointments: The Charter Revision Committee includes seven members who are individually appointed by a City Councilmember. Each member’s term also coincides with the term of their appointing Council Member. This is an ad-hoc committee formed by Council action and may be disbanded once its mission/purpose are achieved. Committee Members Meeting Dates and Times: The Charter Revision Committee meets the second and fourth Thursday of each month at 6:00 p.m. in Room B-7 of the Civic Center; additional meetings may be scheduled, as necessary. All meetings are open to the public, and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by the City Manager’s Office at (714) 536-5553. Necessary Requirements: Must be a U.S. citizen and elector / resident of the City of Huntington Beach. Basic knowledge about the City Charter and the revision process is desirable. Vacancies: In the event a member retires or is unable to complete his / her term, an appointment shall be made to fill the remainder of the unexpired term. To find out the current vacancies, please visit the Notice of Vacancies webpage. 140 CIAB/PUBLIC WORKS COMMISSION* (Term Limits Not Applicable; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Appointed By David Gins, Chair 12-21-2020 Natalie Moser Karla Tucker, Vice Chair 01-06-2019 Kim Carr David Cicerone 01-18-2017 Erik Peterson Michael Elliott 02-19-2019 Kim Carr Jaclyn Ferlita 03-01-2020 Mike Posey Cory Johnson 12-21-2020 Dan Kalmick Quang Nguyen 01-18-2017 Barbara Delgleize Alex Schlosser 07-06-2015 Mike Posey Steven Shepherd 01-19-2021 Dan Kalmick Stacy Taylor 02-01-2021 Barbara Delgleize John Villa 11-16-2021 Rhonda Bolton Mission/Purpose: The mission of the CIAB/Public Works Commission is to review and make recommendations related to Public Works capital improvement projects and programs. In 2021, the City Council voted in favor of consolidating the Citizens’ Infrastructure Advisory Board, Beautification, Landscape, and Trees (BLT) Committee, and the Public Works Commission. Members and Appointments: All current members of the Citizens Infrastructure Advisory Board (CIAB) and Public Works Commission members in good standing will continue to serve until their terms sunsets. The Commission will thereafter consist of seven (7) members made by direct appointment of each City Councilmember to a term that coincides with the City Councilmember's term. Members may have no interest in any contract with the City, either during their term or for a period of one year after cessation of Commission service. All members serve without compensation, may hold no other office or employment in city government and no other employment that is incompatible with Commission service. Appointments to this board must file California Form 700 - "Statement of Economic Interests." Meeting Times and Dates: The CIAB/Public Works Commission holds regular monthly meetings on the third Wednesday of each month at 5:00 PM at the Utilities Yard located on 19021 Huntington Street. All meetings are open to the public and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by the Public Works Department at (714) 375-5055. Necessary Requirements: Must be a U.S. citizen and elector / resident of the City of Huntington Beach with special interest, training, and/or experience in the field of Public Works. Vacancies: In the event a member retires or is unable to complete his / her term, an appointment shall be made to fill the remainder of the unexpired term. To find out the current vacancies, please visit the Notice of Vacancies webpage. *Pending City Council approval on 12/21/2021. 141 CITIZENS PARTICIPATION ADVISORY BOARD (Term Limits Not Applicable; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Appointed By Peter Andres 02-01-2017 Barbara Delgleize Parna Ghosh 01-01-2021 Dan Kalmick Gigi Jackson 08-01-2020 Kim Carr Macey Lachman 01-01-2021 Natalie Moser Mike Massie 01-01-2020 Erik Peterson VACANT TBD Rhonda Bolton VACANT TBD Mike Posey Mission/Purpose: The mission of the Citizens Participation Advisory Board (CPAB) is to review and submit recommendations to City Council on allocations for Community Development Block Grant (CDBG) funds. Members and Appointments: The CPAB includes seven members made by direct appointment of each City Councilmember to a term that coincides with the City Councilmember's term. Meeting Dates and Times: The CPAB holds regular meetings January through March, per a schedule determined annually. Meetings begin at 6:00 p.m. in Room B-8 of the Civic Center; additional meetings may be required depending on the number of grant applications received or as other issues arise. All meetings are open to the public, and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by Community Enhancement at (714) 536-5470. Necessary Requirements: Must be a U.S. citizen and elector / resident of the City of Huntington Beach; members shall have an interest in assessing the needs of the community, particularly that of low- and moderate-income households. Low-income and disadvantaged persons are encouraged to apply. Vacancies: In the event a member retires or is unable to complete his / her term, an appointment shall be made to fill the remainder of the unexpired term. To find out the current vacancies, please visit the Notice of Vacancies webpage. 142 COMMUNITY AND LIBRARY SERVICES COMMISSION* (Term Limits Not Applicable; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Appointed By Pat Burns 01-21-2021 Erik Peterson Laura Costelloe 12-21-2020 Natalie Moser Dr. Richard Harrison 10-19-2021 Dan Kalmick Lisa Kemmerer 12-17-2018 Kim Carr Janis Mantini 12-13-2017 Barbara Delgleize Elaine Parker 09-03-2019 Library Board of Trustee Rev. James Pike 05-18-2020 Mike Posey Faith Vogel 04-06-2009 Library Board of Trustee Mission/Purpose: The mission of the Community and Library Services Commission is to make recommendations to City Council on matters relating to development, acquisition, and renovation of parks, beach, libraries, and recreational facilities. In 2021, the City Council voted in favor of consolidating the Community Services Commission and the Library Board. Members and Appointments: All current members of the Community Services Commission and the Library Board members in good standing will continue to serve until their terms sunsets. The Commission will thereafter consist of seven (7) members made by direct appointment of each City Councilmember to a term that coincides with the City Councilmember's term. The Commission cooperates with other governmental agencies and civic groups in the advancement of sound parks, recreational planning, and library services under the direction of the City Council. Commissioners study, report and interpret the needs of the public to the City Council, including conducting public meetings to garner community input on projects and facilities. The Commission reviews the annual Capital Improvement Projects budget as presented to the City Council and advises them on the current needs and long-range plans. Meeting Dates and Times: The Commission meets regularly on the second Wednesday of each month at 6:00 p.m. in the City Council Chambers, 2000 Main Street, Huntington Beach, CA. Al l meetings are open to the public, and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by the Community and Library Services Department at (714) 536-5486. Necessary Requirements: Must be a U.S. citizen and elector / resident of the City of Huntington Beach; interested in recreational programming, development of parks and the operation and conduct of City libraries Vacancies: In the event a member retires or is unable to complete their term, an appoint ment shall be made to fill the remainder of the unexpired term. To find out the current vacancies, please visit the Notice of Vacancies webpage. *Pending City Council approval on 12/21/2021. 143 DESIGN REVIEW BOARD (Resignations Occur; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Date of Expiration Kathie Schey, October 2012 June 2025 Historic Resources Board Rep. Connie Mandic, August 2021 December 2022 Planning Commission Rep. Jeffery Dahl November 2016 July 2023 At-Large Member VACANT Pending CC Appointment N/A At-Large Member VACANT Pending CC Appointment N/A At-Large Member Mission/Purpose: The Design Review Board (DRB) assists the Community Development Director, Zoning Administrator, and Planning Commission in reviewing development plans and architectural drawings within designated geographic areas of the City, makes recommendations and may impose conditions or modifications on projects reviewed. Specifically, the DRB reviews design, colors and materials for projects located within Specific Plan Areas, and areas designated by City Council, City facilities or projects abutting or adjoining City facilities, projects in or abutting or adjoining OS-PR and OS-S districts, and General Plan primary and secondary entry nodes. This process ensures that the aesthetic values of the adopted Urban Design Guidelines are implemented through high quality architectural style, superior landscaping and compatibility of design with surrounding properties. Members and Appointments: The DRB is comprised of five members: one Planning Commission member, one Historic Resources Board member, and three at-large members that are recommended by two Council liaisons, and appointed by a majority of the City Council. At-large members serve four-year terms. Appointments to this board must file California Form 700 - "Statement of Economic Interests." Meeting Dates and Times: The DRB meets regularly on the second Thursday of each month at 3:30 P.M. in Room B-8 located at the Lower Level of City Hall. All meetings are open to the public, and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by the Community Development Department at (714) 536-5271. Necessary Requirements: Must be a U.S. citizen and a elector / resident of the City of Huntington Beach; interested in guiding, encouraging and promoting the maintenance of harmonious, compatible, attractive and aesthetic developments within special and unique areas of the City. Members must have training, education or work experience in design-related fields including, but not limited to, architecture, landscaping, art, urban/environmental design and aesthetics. Vacancies: In the event a member retires or is unable to complete his / her term, an appointment shall be made to fill the remainder of the unexpired term. To find out the current vacancies, please visit the Notice of Vacancies webpage. 144 ENVIRONMENTAL AND SUSTAINABILITY BOARD* (Resignations Occur; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Date of Expiration Tony Soriano, Chair 10-21-2019 06-30-2023 Bud Benneman, Vice-Chair 10-21-2019 06-30-2023 KC Fockler 10-21-2019 06-30-2023 Kathleen McGowan 10-21-2019 06-30-2023 Joan Siegal 10-21-2019 06-30-2023 Mission/Purpose: The Environmental & Sustainability Board has the duty to provide advice and monitor the City’s comprehensive Sustainability Master Plan that incorporates water and energy conservation, resource recovery/waste management, renewable/recycle products, air quality, mobility and other pertinent issues that affect the overall sustainability of Huntington Beach. Members and Appointments: The Board consists of seven (7) voting members including five individuals that are recommended by two Council liaisons and appointed by the City Council, and plus two City Council liaisons. The City Council liaisons shall serve as chair and vice chair of the Board. Meeting Dates and Times: The Board meets regularly on the second Wednesday of the month at 6:00 pm in Room B-8, Lower Level of City Hall. All meetings are open to the public. Staff support is provided by the Community Development Department at (714) 536-5271. Necessary Requirements: Must be a U.S. citizen and elector / resident of the City of Huntington Beach; have a general interest in the environment and protecting its quality, state and federal environmental legislation and its impact upon the community, energy conservation, and solid waste disposal. Vacancies: In the event a member retires or is unable to complete his / her term, an appointment shall be made to fill the remainder of the unexpired term. For current vacancies, check out the Notice of Vacancies page. *Pending City Council approval on 12/21/2021. 145 FINANCE COMMISSION (Term Limits Not Applicable; See Notices of Vacancies for Potential Openings) Date of Appointment Appointed By 12-04-2017 Erik Peterson 12-23-2020 Natalie Moser 01-22-2019 Kim Carr 09-07-2021 Rhonda Bolton 03-02-2020 Barbara Delgleize 12-14-2020 Dan Kalmick Current Appointee Frank Lo Grasso Jamie Craver Stephanie Gledhill Janet Michels Lawrence Owen Robert Sternberg Tony Strickland 09-21-2021 Mike Posey Mission/Purpose: The purpose of the Finance Commission is to act in an advisory capacity to the City Council in matters pertaining to financial planning, specifically: Mid-Year Budget Review & Budget Kickoff Year End Audit, Single Audit, and new GASB Standards Review CIP & Infrastructure Calculation Review Adopted Budget Review Investment Update & Debt and Refinancing Opportunities Year-End Review Members and Appointments: The Commission includes seven members made by direct appointment of each City Councilmember to a term that coincides with the City Councilmember's term. Meeting Dates and Times: The Finance Commission holds regular meetings on the fourth Wednesday of every other month (6x per year) at 5:00 PM in Meeting Rooms B-7 / B-8 of City Hall. All meetings are open to the public, and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by the Finance Department at (714) 536-5630. Note: Appointments to this board must file California Form 700 - "Statement of Economic Interests." Necessary Requirements: Must be a U.S. citizen and elector / resident of the City of Huntington Beach. Vacancies: In the event a member retires or is unable to complete his / her term, an appointment shall be made to fill the remainder of the unexpired term. For current vacancies, check out the Notice of Vacancies page. 146 FOURTH OF JULY EXECUTIVE BOARD (Resignations Occur; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Date of Expiration Andi Hamamoto-Kowal March 2011 TBD upon reappointment Pat Love TBD upon reappointment Karen Pedersen December 2002 TBD upon reappointment Linda Virks December 2008 TBD upon reappointment Chris Young December 2008 TBD upon reappointment VACANT TBD 12/31/2025 VACANT TBD 12/31/2025 VACANT TBD 12/31/2025 VACANT TBD 12/31/2025 Mission/Purpose: The Fourth of July Executive Board assists in the production of the Fourth of July Parade and festivities. Members and Appointments: The Board shall consist of nine to fifteen members, recommended for appointment by two City Council liaisons, and approved by a majority of the City Council. The Executive Board serves as an advisory body to the City Council, implementing policy as set by the City Council, and shall work with staff and volunteers to assist in coordinating the City’s annual Fourth of July parade (fundraising, coordination and presentation of the City's annual Fourth of July Celebration, including a parade, fireworks, 5K run, and related entertainment). Meeting Dates and Times: The Board meets monthly on the 1st Wednesday at 6:00 pm year- round, with two meetings in May and weekly or as-needed meetings in June. All meetings are open to the public, and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by the Community and Library Services Department at (714) 536- 5486. Necessary Requirements: Must be a U.S. citizen and elector / resident of the City of Huntington Beach. Preferred candidates will have experience in one or more of the following areas: fundraising, event planning, public relations, marketing, and volunteer coordination. Vacancies: In the event a member retires or is unable to complete his / her term, an appointment shall be made to fill the remainder of the unexpired term. To find out the current vacancies, please visit the Notice of Vacancies webpage. 147 HARBOR COMMISSION (Resignations Occur; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Date of Expiration William (Bill) Larkin, Chair 3-04-2019 12-31-2022 Michael (Mike) Vanvoorhis, Vice Chair 3-04-2019 12/31/2024 Kimberley Milligan 3-04-2019 12-31-2022 Chris Nielsen 3-16-2020 12-31-2022 Craig Schauppner 3-04-2019 12-31-2022 Van Vu* 12-21-2021 12-31-2024 Diane Wood* 12-21-2021 12-31-2024 *Pending CC Appointment approval on 12/21/2021 Mission/Purpose: The Harbor Commission serves in an advisory capacity to the City Council in all matters related to Huntington Beach Harbor, its beaches, facilities, and parks. The Commission advises the City Council about waterway safety, general infrastructure (e.g. seawalls, pier headlines, bulkheads etc.), water quality and Municipal Code amendments. The Harbor Commission also cooperates with other governmental agencies and civic groups for the advancement of the Huntington Harbor and recreational planning under the direction of the City Council. Members and Appointments: The Commission shall consist of seven (7) members, recommended for appointment by two City Council liaisons, and approved by a majority of the City Council. Meeting Dates and Times: The Commission meets on the fourth Thursday of each month at 5:00 p.m. in meeting Room B-8 on the Lower Level of the Civic Center, 2000 Main Street, Huntington Beach, CA. All meetings are open to the public, and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by the Fire Department at (714) 536-5411. Staff support is provided by Fire Chief Scott Haberle, Fire Division Chief Eric McCoy and Senior Administrative Analyst Kevin Justen. Necessary Requirements: Must be a U.S. citizen and elector / resident of the City of Huntington Beach. Vacancies: In the event a member retires or is unable to complete his term, an appointment shall be made to fill the remainder of the unexpired term. To find out the current vacancies, please visit the Notice of Vacancies webpage. 148 HISTORIC RESOURCES BOARD (Resignations Occur; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Date of Expiration Kathie Schey, Chair 7-01-2021 6-30-2025 Amory Hanson 7-01-2021 6-30-2025 Susan Nguyen 7-01-2021 6-30-2025 Joe Santiago 7-01-2019 6-30-2023 Dave Wentworth, Sr. 7-01-2019 6-30-2023 Duane Wentworth 7-01-2021 6-30-2025 Mark Zambrano 7-01-2021 6-30-2025 Mission/Purpose: The purpose of the Historic Resources Board is to encourage and promote programs and activities that enhance public awareness of historic resources. The Board shall serve as an advisory body to City Council, as well as a liaison to Council for local, state and federal groups and agencies whose interest involves historic issues . Members and Appointments: The Board includes not less than seven (7) nor more than nine (9) members, recommended for appointment by two City Council liaisons, and approved by a majority of the City Council. Meeting Dates and Times: The Board meets as needed on the 3rd Wednesday of each month at 5:00 p.m. in Room B-7 (lower level) of Civic Center. All meetings are open to the public, and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by the Community and Library Services Department at (714) 960-8836. Necessary Requirements: Must be a U.S. citizen and elector / resident of the City of Huntington Beach; preferably general interest in local history. Vacancies: In the event a member retires or is unable to complete his term, an appointment shall be made to fill the remainder of the unexpired term. To find out the current vacancies, please visit the Notice of Vacancies webpage. 149 HUMAN RELATIONS COMMITTEE (Resignations Occur; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Date of Expiration V.C. Rhone, Chair 12-18-2017 12-31-2023 Chris Hoff, Vice Chair 03-15-2021 12-31-2025 Debbi Parrott, Secretary 03-15-2021 12-31-2023 Antonio Benitez 01-21-2020 12-31-2025 Teresa Carlisle 01-21-2020 12-31-2023 Elaine Keeley 10-05-2021 12-31-2025 Hemesh Patel 01-21-2020 12-31-2025 Jonathan Smith 10-05-2021 12-31-2023 Timothy Stuart 01-21-2020 12-31-2023 Mission/Purpose: The Human Relations Committee’s mission is to inspire and promote mutual understanding, respect, safety, and the wellbeing of all in our community through education and engagement. Members and Appointment: The Committee shall consist of nine (9) members recommended for appointment by two City Council liaisons, and approved by a majority of the City Council. The Committee sponsors community events through the year and serves as a resource to the community in promoting human dignity and cooperation. Meeting Dates and Times: The Human Relations Committee meets monthly on the 2nd Tuesday of each month at 6:45 p.m. at Huntington Beach City Hall, Lower Level Meeting Room B-7. All meetings are open to the public, and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by the City Manager’s Office at (714) 536 -5910. Necessary Requirements: Must be a U.S. citizen and elector / resident of the City of Huntington Beach; interested in promoting cultural diversity and inclusion efforts within the community. Fundraising and public information work experience is beneficial. Vacancies: In the event a member retires or is unable to complete his / her term, an appointment shall be made to fill the remainder of the unexpired term. To find out the current vacancies, please visit the Notice of Vacancies webpage. 150 INVESTMENT ADVISORY BOARD (Term Limits Not Applicable; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Appointed By Syndia Attardo, Chair December 2018 Kim Carr Scott Dowds December 2014 Barbara Delgleize Mark Ellett April 2017 Erik Peterson Sean Heymann December 2020 Dan Kalmick Dennis Kelly December 2020 Natalie Moser Rita Pitcher September 2020 Mike Posey VACANT TBD Rhonda Bolton Mission/Purpose: The purpose of the Investment Advisory Board (IAB) is to act in an advisory capacity to the City Treasurer and the City Council in matters pertaining to the financial planning and the City's investments as per Municipal Code Chapter 2.109. Members and Appointments: The IAB currently consists of seven members made by direct appointment of each City Councilmember to a term that coincides with the City Councilmember's term. Meeting Dates and Times: The IAB meets on a quarterly basis (January, April, July, October) on the third Thursday of the month at 6:00 PM via ZOOM teleconference. All ZOOM meetings are open to the public, and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by the City Treasurer’s Office at (714) 536-5200. Necessary Requirements: Must be a U.S. citizen and elector / resident of the City of Huntington Beach. Vacancies: In the event a member retires or is unable to complete his / her term, an appointment shall be made to fill the remainder of the unexpired term. To find out the current vacancies, please visit the Notice of Vacancies webpage. 151 JET NOISE COMMISSION (Resignations Occur; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Date of Expiration Jeff Morin, Chair 2-04-2019 12-31-2022 Phillip Burtis, Vice Chair 2-04-2019 12-31-2022 Keith Bohr 2-04-2019 12-31-2022 Michael Bourgeault 2-04-2019 12-31-2022 Christopher Kunze 2-04-2019 12-31-2022 David Porter 2-04-2019 12-31-2022 Mario Tabernig 2-04-2019 12-31-2022 Mission/Purpose: The Jet Noise Commission (JNC) was formed to monitor issues related to jet noise from commercial aviation traffic flying over the City. The Commission acts as an advisory body to the Council on matters pertaining to jet noise from commercial aviation traffic over the City and engages with neighboring cities, regulatory bodies, airlines, and staff regarding the impact of air traffic activities on the quality of life in Huntington Beach. Members and Appointments: The JNC shall consist of seven at-large members recommended by two Council liaisons, and appointed by a majority of the City Council. Meeting Dates and Times: The JNC holds regular monthly meetings, generally on the fourth Monday at 5:30 PM in B-7 of the lower level of City Hall or via Zoom. All meetings are open to the public, and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by the City Manager’s Office at (714) 536-5202. Necessary Requirements: Must be a U.S. citizen and elector / resident of the City of Huntington Beach. Members shall hold no paid office or employment in the City government while serving on the JNC. Vacancies: In the event a member retires or is unable to complete his / her term, an appointment shall be made to fill the remainder of the unexpired term. To find out the current vacancies, please visit the Notice of Vacancies webpage. 152 MOBILE HOME ADVISORY BOARD (Resignations Occur; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Date of Expiration Donald Hart, Chair March 2020 August 2024 Terrance Pham, Chair Elect June 2021 August 2025 Mary Jo Baretich October 2020 August 2024 Jerry Bleiweiss October 2020 August 2024 Chris Houser July 2021 August 2025 Allison Plum March 2020 August 2025 Eric Silkenson Mary 2021 August 2025 Vickie Talley July 2021 August 2025 VANCANT TBA August 2024 Mission/Purpose: The Mobile Home Advisory Board (MHAB) ensures the quality of life in mobile home parks and to review matters concerning mobile home parks in the City of Huntington Beach, through healthy communication with park owners, manufactured home owners and the City Council. The Board acts in an advisory capacity to the City Council on matters concerning the mobile home community. Members and Appointments: Nine members, three each as follows: Park representatives, Resident/Owner representatives, and citizens at-large who have no affiliation or relationship with mobile home parks. All members are recommended by two Council liaisons and appointed by a majority of the City Council. Meeting Dates and Times: The MHAB meets quarterly at 5:00 p.m. on the 4th Monday of the month in January, April, July, and October at a Civic Center, Lower level B-8 and via Zoom. All meetings are open to the public, and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by the City Manager’s Office at (714) 536 -5910. Necessary Requirements: Must be a U.S. citizen and elector / resident of the City of Huntington Beach, except park representative. Depending on type of vacant membership position, one has to be a mobilehome owner in the City or park representative. Vacancies: In the event a member retires or is unable to complete his term, an appointment shall be made to fill the remainder of the unexpired term. To find out the current vacancies, please visit the Notice of Vacancies webpage. 153 PERSONNEL COMMISSION (Resignations Occur; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Date of Expiration George Rivera, Chair 6-15-2021 6-30-2023 Cindy Vellucci, Vice-Chair 6-15-2021 6-30-2023 Katherine Elford 1-19-2021 6-30-2022 Dianne Thompson 6-15-2021 6-30-2023 Patricia Quintana 1-19-2021 6-30-2022 Mission/Purpose: The primary focus of the Personnel Commission is employee arbitration issues. The Commissions function and duties include:  Hear appeals on grievance matters for final decision except for such matters as may be submitted to final and binding arbitration;  Hear appeals from decisions of the City Manager or his/her designee made pursuant to the employer-employee relations resolution;  Determine hearing procedures and select hearing officers and advisory arbitrators for hearings (subject to provisions of the MOU);  Review impasse matters as provided in the employer employee relations resolution; and  Perform such other functions as may be prescribed by ordinance or resolution. Members and Appointments: The Personnel Commission consists of five members, each of which are recommended by two Council liaisons and appointed by a majority of the City Council. The members serve a two-year term, and are limited to serve two consecutive terms. No member shall hold any paid office or employment with City during, or for a period of one year after terminating service as a member of the Commission. Meeting Dates and Times: Meetings take place at least quarterly and on an as-needed basis. All meetings are open to the public, and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by Brittany Mello, Administrative Services Department at (714) 536-5537. Necessary Requirements: Must be a U.S. citizen and elector / resident of the City of Huntington Beach. Experience with human resources and/or labor law is beneficial. Vacancies: In the event a member retires or is unable to complete his term, an appointment shall be made to fill the remainder of the unexpired term. To find out the current vacancies, please visit the Notice of Vacancies webpage. 154 PLANNING COMMISSION (Term Limits Not Applicable; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Appointed By Alan Ray, Chair 04-03-2017 Erik Peterson Brendon Perkins 01-23-2019 Kim Carr Kayla Acosta-Galvan 01-12-2021 Dan Kalmick Ian Adam 10-27-2021 Rhonda Bolton Connie Mandic 01-13-2015 Mike Posey Oscar Rodriguez 01-12-2021 Natalie Moser John Scandura 12-13-2016 Barbara Delgleize Mission/Purpose: In addition to power and duties specified in the Government Code, the Planning Commission shall have the power and duties to:  Recommend to the City Council after a public hearing thereon, the adoption, amendment or repeal of a master or general plan, or any part thereof, for guidance in the physical development of the City;  Exercise such functions with respect to land subdivisions as shall be provided by the Subdivision Map Act, and by ordinance not inconsistent with the provisions of the Charter;  Exercise such functions with respect to zoning, building, land use, precise pl ans, specific plans, and related matters which may be prescribed by ordinance not inconsistent with the provisions of the Charter; and  Perform such other functions not inconsistent with the Charter as may be delegated to it by the City Council. Projects typically acted upon by the Planning Commission are major development proposals, tentative tract maps, zoning map amendments, zoning text amendments, general plan amendments, and various similar applications. Members and Appointments: The Planning Commission, a quasi-judicial body that is empowered by State law and the City Council, consists of seven members made by direct appointment of each City Councilmember to a term that coincides with the City Councilmember's term. Appointments to this board must file California Form 700 - "Statement of Economic Interests." Meeting Times and Dates: The Planning Commission meets on the second and fourth Tuesday of each month at 6:00 p.m. in the Council Chambers. Study sessions ar e frequently held at 5:15 p.m. prior to the meeting in Council Chambers. All meetings are open to the public, and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by the Community Development at (714) 536-5276. Necessary Requirements: Must be a U.S. citizen and elector / resident of the City of Huntington Beach. Vacancies: In the event a member retires or is unable to complete his term, an appointment shall be made to fill the remainder of the unexpired term. To find out the current vacancies, please visit the Notice of Vacancies webpage. 155 YOUTH BOARD (Resignations Occur; See Notices of Vacancies for Potential Openings) Current Appointee Date of Appointment Date of Expiration Acacia Bartel 09-07-2021 05-31-2022 Luke Blankenbaker 07-20-2020 05-31-2022 Vivian Bui 07-20-2020 05-31-2022 Faith Nguyen 09-07-2021 05-31-2022 Kenady Osborne 07-20-2020 05-31-2022 Colin Parrott 09-07-2021 05-31-2022 Sarah Rizvi 09-07-2021 05-31-2022 Adam Vo 09-07-2021 05-31-2022 Emma Weston 07-20-2020 05-31-2022 Mission/Purpose: The objective of the Huntington Beach Youth Board is to act as a voluntary advisory board to the Huntington Beach City Council regarding youth achievements, problems and needs. The board will represent, involve and promote youth participation in community affairs. Members and Appointments: The Youth Board shall consist of nine (9) members composed in the following manner: One member each representing four Huntington Beach public high schools (Edison, Huntington Beach, Marina and Ocean View), and five members chosen from the community at large. Members at-large are recommended by two Council liaisons and appointed by a majority of the City Council Members of the Youth Board shall be appointed annually in June and shall serve a term of one year. After serving they must be reappointed by the City Council in order to continue serving on the Youth Board. Meeting Dates and Times: The board meets on the second Monday of each month at 3:30 p.m. in the Community & Library Services Department, 5th Floor, 2000 Main Street, Civic Center. All meetings are open to the public, and special meetings may be called in conformance with the Ralph M. Brown Act. Staff support is provided by the Community & Library Services Department at (714) 374-5312. Necessary Requirements: Must be enrolled in public schools (grades 8th- 12th) and residents of the City of Huntington Beach during their service on the board. No board member may be a full or part-time officer or employee of the City. Vacancies: In the event a member retires or is unable to complete his term, an appointment shall be made to fill the remainder of the unexpired term. To find out the current vacancies, please visit the Notice of Vacancies webpage. 156 157 Statements of Economic Interests - Form 700 Reporting (1)The Political Reform Act (Act) prohibits a public official from using his or her official position to influence a governmental decision in which he or she has a financial interest. Every state and local agency must adopt a conflict of interest code that identifies all officials and employees within the agency who make governmental decisions based on the positions they hold. The individuals in the designed positions must disclose their financial interests as specified in the agency’s conflict of interest code. To help identify potential conflicts of interest, the law requires public officials and employees in designated positions in a conflict of interest code to report their financial interests on a form called Statement of Economic Interests – Form 700. The conflict of interest codes and the Form 700s are fundamental tools in ensuring that officials are acting in the public’s best interest and not their own. The Fair Political Practices Commission (FPPC) is the agency responsible to provide public officials with answers to questions related to the content they report on their Form 700. Frequently asked questions and other resource information including an online advice system can be accessed at http://www.fppc.ca.gov/Form700.html. The City’s Conflict of Interest Code (Resolution No. 2018-58, attached), details provisions, filing of statements, designation of positions, exclusions, and level of disclosure by category. All designated filers must file Form 700 information electronically through NetFile, the City’s online portal certified by the FPPC to accept Form 700 and FPPC campaign disclosure documents. The City Clerk’s office administers the NetFile application, and keeps in contact with all new and existing filers to provide account information, alert filers of deadlines, and assist them with navigational issues. The filer portal is located at https://netfile.com/Filer/. Form 700 information is also used by City staff to create a conflict of interest map for each public official who is responsible to make policy decisions for the City. (1)http://www.fppc.ca.gov/learn/rules-on-conflict-of-interest-codes.html 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 CONFLICT OF INTEREST MAP CREATED FOR EACH MEMBER OF THE CITY COUNCIL BY THE CITY’S GIS ANALYST 189 190 General Rules for Gifts and Honoraria1 $10 Lobbyist Gift Limit: Elected officials, including members of the legislature, and legislative employees may not accept a gift or gifts totaling more than $10 in a calendar month from any individual who is registered as a lobbyist under state law. The $10 limit also applies to gifts received by officials and employees of state agencies if their agency is listed on the registration statement of the lobbyist's employer or firm. $520 Gift Limit (Effective January 1, 2021 - December 31, 2022): State and local officials and employees are prohibited from receiving a gift or gifts totaling more than $520 in a calendar year from certain sources. For elected state officials and many others, the prohibition is applicable to gifts from any source, although there are exceptions (for example, gifts from family members). For state and local officials and employees who file Statements of Economic Interests (Form 700s) under an agency's conflict of interest code, the gift limit is applicable only to individuals and entities that would have to be disclosed on the Form 700. This gift limit is adjusted for inflation every odd-numbered year. (Note: Judges are not subject to the Act's gift prohibitions, but are covered by the Code of Civil Procedure.) Honoraria: An honorarium is a payment received for making a speech, publishing an article or attending any public or private conference, convention, meeting, social event, meal or similar gathering. State and local elected officers and candidates for those offices and all officials holding positions listed in Government Code Section 87200 are prohibited from receiving honoraria payments. Likewise, an employee designated under a state or local government agency's conflict of interest code is prohibited from receiving honoraria payments from any source of gifts or income the employee is required to report on his or her Statement of Economic Interests (Form 700). Some limited exceptions apply, such as income earned from a bona fide business or profession. Exceptions for Travel: Certain payments for travel are excluded from the gift limits and honoraria prohibition. Refer to the City’s travel reimbursement policy guidelines. Loan Restrictions: Public officials who are required to file Statements of Economic Interests (Form 700s) or who are exempt employees may not receive any personal loan aggregating more than $250 from an official, employee, or consultant of, or from anyone who contracts with, their governmental agencies. In addition, elected officials may not receive any personal loan aggregating more than $500 from a single lender unless certain terms of the loan are specified in writing. Under certain circumstances, a personal loan that is not being repaid or is being repaid below certain amounts may become a gift to the official who received it. 1 Retrieved from California Fair Political Practices Commission http://www.fppc.ca.gov/learn/public-officials-and-employees-rules-/gifts-and-honoraria.html. For more information, please refer to California Government Code Section 89503. 191 192 Mayor Protocol Page 1 New Mayor Protocol Handbook  The Mayor is the Ppresiding Officer of the City Council.  The Mayor may make first and second motions and shall have both voice and vote in all City Council proceedings.  The Mayor is the ceremonial head of the cCity and shall have the primary, but not exclusive, duty to interpret the policies, programs, and needs of city government to the people.  The Mayor may inform the people of any major change in policy or program, as necessary.  The Mayor may call special meetings of the City Council.  The Mayor may execute contracts on behalf of the Ccity when the contracts have been approved by the City Council.  The Mayor shall serve in such capacity at the pleasure of the City Council.* *City Charter Sections 303, 305, & 613 193 Mayor Protocol Page 2 DAIS SEATING ASSIGNMENTS – Mid November 1. Mayor develops the seating chart. (based on input from other City Council Members) 2. In general, pProtocol has been calls for the Mayor Pro Tem to sits to the right of the Mayor and the Past Mayor sits to the left of the Mayor. The other remaining seats are up to assigned by the Mayor and Councilmembers. 3. Final dais seating assignments will be relayed to the City Council Administrative Assistant and City Clerk. ARRANGEMENTS FOR OATH OF OFFICE MEETING - 1st Meeting in December 1. Meeting Festivities - Planned by Mayor and City Council’s Administrative Assistant. a) Refreshments – Cake, punch, and coffee will be ordered by Administration in recognition of the incoming and outgoing Mayors (Mayor may provide their own cakes) b) Dinner - Usually a A light meal is provided by Administration in the Caucus Room (may not need) c) Guest Invitations - Handled by the Mayor, as desired d) Meeting Time – Regular session begins at 6:00 PM (no study session) e) Council Agenda – mMay include closed sessions but the primary objective is to maintain , objective is a light agenda to focus on the Oath of Office ceremony. 2. Meeting Agenda Order a) Meet with the Community Relations Officer, City Council Administrative Assistant and , City Clerk with and outgoing Mayor to review specific the agenda order of events for first meeting in December. • Incoming Mayor presents a special “Ultimate Surfer” surfer statue (or other award) to the outgoing Mayor in appreciation of the Mayor’s service • Outgoing Mayor presents a gavel and with a wooden box case to the new Mayor • Gifts, if the Mayor, so chooses are presented by the outgoing Mayor, Council Members, elected officials (Clerk, Attorney & Treasurer) and City Manager • Outgoing City Council Members are given the opportunity to speak about the past term. • Outgoing Mayor gives an end of term speech. b) Incoming Mayor’s Speech will be agendize and will signal the transition between Mayors. c) Meet with City Clerk regarding Robert’s Rules, meeting protocol, etc. (optional) OFFICE ASSIGNMENTS 1. Relocation to Mayor’s Office a) Personal items to be moved by Mayor, with help from Administrative Assistant.assistance from staff as requested. IMMEDIATE ITEMS FOR ACTION 194 Mayor Protocol Page 3 b) Staff will assist in moving other items c) Notify City Council Administrative Assistant if furniture is to be moved 2. Assignment of City Council Offices a) Mayor coordinates office move with incoming Mayor b) Incoming Mayor coordinates office assignments with new City Council (as requiredneeded). Historically, the Mayor is at the far end on the south side of the fourth floor; the Mayor Pro Tem is next to the Mayor (#6) (optional), and offices #4 & #5 are for councilmembers with more seniority. The offices on the north side of the floor (#1 - #3, 2, & 3) are for the newer Council Members. c) Notify City Council Administrative Assistant of new office assignments PARKING SPACE Public Works staff will change parking signs following the swearing-in ceremony, moving the immediate past Mayor to the end of the row of City Council parking spaces. This protocol is for the Mayor to have the first space, the Mayor Pro Tem the second and the remainder of the parking spaces to be assigned based on the anticipated succession to Mayor and Mayor Pro Tem as described in Resolution #6320. ASSIGNMENT OF CITY COUNCIL LIAISONS TO ADVISORY BODIES 1. The assignment of City Council Liaisons is conducted annually by the Mayor and is governed by Resolution 99-83 (adopted 10/4/99). A summary of the process is described below: a) In early November, the incoming Mayor distributes a memo asking that each City Council Member advise him/her on the Council liaison assignments that are of interest to them and for which they will be available. b) Council responses are to be submitted to the incoming Mayor about mid-November. c) Based on the requests received, the incoming Mayor will prepare a preliminary list of assignments. d) The Mayor’s preliminary list of assignments will be distributed to all the City Council Members and the City Clerk at least one week prior to the City Council meeting at which the appointments are made. e) Appointments are approved at the 2nd City Council Meeting in December (see attached current Council Liaison List, attached). 2. In considering these assignments, it should be noted that the Mayor and Mayor Pro Tem are assigned to the following bodies as prescribed by originating documents: a) The Mayor or their designee represents the cCity at the Orange County City Selection Committee meetings. b) The Mayor, Mayor Pro Tem, and most recent Past Mayor are the prescribed members of the Economic Development Committee and Downtown EDC. Additionally, the Mayor traditionally participates in the following bodies: a) Visit Huntington Beach. b) League of California Cities – Orange County City Selection Committee Formatted: Font: Not Bold Formatted: Not Expanded by / Condensed by Formatted: Body Text, Right: 0.45", Space Before: 0 pt,Numbered + Level: 1 + Numbering Style: a, b, c, … +Start at: 1 + Alignment: Left + Aligned at: 0.3" + Indentat: 0.55", Tab stops: 0.72", Left Formatted: Indent: Left: 0.29" 195 Mayor Protocol Page 4 CITY COUNCIL MEETINGS 1. (a) Presentation of Mayor’s HB Excellence Award The purpose of the Mayor’s HB Excellence Award is to recognize outstanding employee performance. The award is presented on a monthly basis, typically at the 2nd regular City Council meeting of month. The only exception is the first meeting in month of December when the outgoing Mayor recognizes staff members of their choice. (b) Presentation of “Making a Difference Award” The award recognizes selflessness, volunteerism, and exceptional community service, and applauds the unsung heroes in Huntington Beach. Placing tremendous value on individuals, businesses, and grou0ps whose good work consistently improves our community, this award brings attention to the efforts of volunteers who make a positive difference. 2. Presentations at City Council Meetings • Requests: All requests should be submitted to the Mayor in writing with a copy to the Community Relations Officer. Presentations may be requested by department heads, members of the community, or other City Council Members. All requests must be approved by the Mayor. • Schedule: Requests should be made a minimum of two weeks prior to the date of the City Council meeting and should include contact information for the recipient. • Confirmation of Presentation(s): The final review of presentations is conducted at Agenda Review (the Monday preceding the City Council meeting at 4:00 PM). • Presentation: The Mayor is responsible for presenting and receiving all awards at City Council meetings. The Mayor may invite other City Council Members and/or staff to participate with him/her as desired ONGOING MEETINGS 1. Attendance of Mayor/Mayor Pro Tem at Agenda Review Meeting The purpose of this meeting is to allow the City Manager to review the items scheduled for the next City Council meeting with the department heads prior to the printing of the final agenda. Questions regarding specific items or the order of the items may be discussed here. The Mayor and/or Mayor Pro Tem attend at their discretion. Schedule: The Monday prior to each City Council Meeting, B-8 or Zoom, 4:00 pm. MAYORAL FUNCTIONS Formatted: Indent: Left: 0" Formatted: Indent: Left: 0.59", Right: 0", Line spacing: single Formatted: Font: Calibri Formatted: Font: 12 pt Formatted: Indent: Hanging: 0.01" Formatted: Font: Not Bold Formatted: Font: 12 pt, Bold 196 Mayor Protocol Page 5 2. City Council Meeting Preparation with the City Manager The purpose of this meeting is to review the agenda packet materials with the City Manager prior to the City Council meeting. Schedule: Occurs sometime between Agenda Packet Delivery and the City Council Meeting depending on the Mayor’s schedule (to be arranged with City Manager). 197 Mayor Protocol Page 6 LEGISLATIVE POSITIONS The Intergovernmental Relations Committee (IRC) reviews recommendations from staff and other agencies on the need for the city to take a position on legislation pending before either the State or Federal governments. Recommendations of the IRC are taken to the City Council for approval. The Mayor is authorized to send letters stating the city position on the specified legislation on behalf of the city to the legislators. When legislation is moving quickly and requires decisive action, the chair of the IRC, with approval from the Mayor and the City Manager can take a position on behalf of the city. If the Mayor is unavailable, the Mayor Pro Tem can act on the Mayor’s behalf. If the Mayor is a member of the IRC then the chair of the IRC and the Mayor Pro Tem, and the City Manager would make the decision. When neither the Mayor nor Mayor Pro Tem is available, the senior most member of the Council can act on their behalf. This position will subsequently be brought to the IRC and the City Council. The IRC is also responsible for preliminary review of the cCity's funding priorities and for working with State and Federal legislators and the city's lobbyists in seeking to seek funding. To that end, the Mayor and/or the IRC chair may travel to Washington D.C. and Sacramento each year. CEREMONIAL FUNCTIONS Throughout the year, there are a number of ceremonial functions to attend. While the entire City Council is usually invited to most of these events, the public often anticipates the Mayor’s presence as the ceremonial head of the cCity. Generally, there are three types of functions: • City Functions (i.e. opening of new city facilities and employee or volunteer award lunches, etc.) • Community Events (i.e. Miss. Huntington Beach Pageant, Chamber of Commerce Ribbon Cuttings, Boy Scout Eagle meetings, etc.) • Other Local, County, and Regional Agencies (Functions of the County or special district i.e. OCTA, etc.) 1. Mayoral Ceremonial Acceptance Protocol According to the City Charter, the Mayor is the ceremonial head of the city. Therefore, the Mayor traditionally represents the city at community events and functions. If the Mayor is not able to attend a particular function, the City Council’s Administrative Assistant will utilize the following order in accepting the invitation: a) Mayor Pro Tem b) Immediate Past Mayor c) Remaining City Council Members as directed by the Mayor according to interest 198 Mayor Protocol Page 7 2. Mayoral Ceremonial Absence Protocol If the Mayor accepts an invitation to any of these events, and later finds that he/she is unable to attend due to sickness or other reasons, staff will utilize the above protocol for identifying a replacement. The City Council Administrative Assistant will contact the organization hosting the event and notify them that the Mayor will be unable to attend due to extenuating circumstances. 3. Proclamations, Certificates of Recognition, & Commendations a) Purpose of Proclamations, Commendations, Recognitions: To recognize citizens, individuals, or organizations that have provided outstanding service to the community as leaders of charitable or business associations or are recognized in the community for outstanding achievements (i.e. Little League champions) b) Presentation of: Presented by the Mayor at a City Council Meeting, an off-site ceremony, or mailed c) Final Draft: Prepared by the Community Relations Officer and City Council Administrative Assistant prior to signature d) Signature: Mayor typically signs on behalf of the City Council. At times, the Mayor may request that the document be signed by the full City Council. RECOMMENDED INTERGOVERNMENTAL PARTICIPATION • League of California Cities – The Orange County Division of the Leagues holds monthly general membership (dinner) meetings. The Mayor and other Council Members have traditionally been active participants in these meetings as well as the League’s committee structure. • The City Selection Committee (A Committee of the 34 Orange County Mayors) meets monthly in conjunction with the League dinners. This committee has responsibility for decisions relating to the county as a whole and makes appointments to powerful boards such as the South Coast Air Quality Management District (SCAQMD), the Orange County Transportation Authority (OCTA), and the Orange County Local Agency Formation Commission (LAFCO). It is very important for the Mayor or their designee to attend these meetings. TERM EXPIRATION ACTIVITIES • At Mayor’s discretion, provide gifts to fellow City Council Members, City Treasurer, City Clerk, City Attorney, City Manager • Prepare outgoing “Accomplishments” Speech • Outgoing Mayor presents gavel to incoming Mayor Staff Contact: Community Relations Officer 199 Mayor Protocol Page 8 APPROVED BY CITY COUNCIL 1. Code of Ethics In January of each year, the City Council affirms the Council approved Code of Ethics (Code) for all elected officials, officers, employees and members of advisory boards, commissions, and committees. The current code requests that all employees and board/commission members sign an acknowledgement indicating that they received a copy. Specifically, the code states that it should be reviewed annually by the City Council, as well as by all employees, boards, commissions, and committees. The Mayor, City Manager, and chairpersons shall be responsible for accomplishing this review. Copies of the code, along with the acknowledgement form, will be sent to all department heads, and board/commission staff liaisons requesting that they review the code with their employees/members. EXISTING PRACTICES 1. Board Appreciation or Mayor’s Reception An appreciation reception for the members of the City Council appointed board and commission members has been held in the past. If it is an informational meeting, staff will prepare the appropriate notices and publicize the meeting via a press release and directed mailings. This is optional and has been funded in the past by the City. 2. Meetings with Chairs of Advisory Boards (optional) Also at the discretion of the Mayor, meetings may be scheduled between the Mayor and the chairs of each of the city’s advisory bodies. Some Mayors have opted to schedule individual/small group meetings with chairs and/or attend a regular meeting of each of the different citizen boards. If preferable, a round-table meeting can be scheduled with the chairs as a group. 3. Master Calendar of Events A master calendar of events is maintained and filed with the Administrative Assistant to the City Council. The calendar highlights many of the annual events the Mayor and the City Council are invited to attend or speak at. This calendar is also scheduled on the City Council’s Outlook calendar and is updated frequently to reflect any changes. The Mayor and City Council should decide how he/she would like to respond to these invitations and advise the Administrative Assistant. The calendar shown below highlights many of the annual events the Mayor and the City Council are invited to. The events denoted with an asterisk (*) mark some of the events in which the Mayor is often invited to address the audience. Other events may only require the Mayor to give an award or read a proclamation. The purpose of this draft calendar is to alert the Mayor to the MAYORAL ACTIVITIES FOR UPCOMING YEAR 200 Mayor Protocol Page 9 number of events during the upcoming year. Jan: HB Chamber of Commerce Annual Dinner Annual Police Department Employee Awards Presentation Ceremony Feb: Miss Huntington Beach Scholarship Pageant Surf City USA Marathon Washington DC trip to meet with Lobbyists Mar: Southeast Huntington Beach Neighborhood Association Annual General Meeting Chamber of Commerce Planning Conference Lifeguard Tryouts C.E.R.T. Training Class Sister City trip to Anjo, Japan (Not City funded) April: Council on Aging Senior Team (C.O.A.S.T) Volunteer Luncheon Youth in Government Day Annual Easter Egg Hunt/Kiwanis May: Library Volunteers Luncheon Annual Duck-A-Thon Memorial Day Service Soroptimist Awards Dinner June: Project Self-Sufficiency June Recognition Awards Literacy Volunteers of America Annual Meeting and Ice Cream Social Concours d’Elegance Annual Pier Swim; Junior Lifeguard Program opening day July: Fourth of July Parade & Activities Junior Lifeguard Annual Hot Dog BBQ Friends of Junior Lifeguard Annual Pancake Breakfast Aug: U.S. Open of Surfing Sept: Opening of Oktoberfest at Old World Village Council on Aging Senior Saturday League of Cities Annual Conference Patriot’s Day Ceremony City’s Green Expo OC Division of the League - Installation Oct: HB Chamber of Commerce Public Safety Awards Luncheon Annual Distance Derby Public Safety Awards Luncheon Interfaith Council Annual Procession of Lights Formatted: Indent: Hanging: 0" 201 Mayor Protocol Page 10 Nov: Veteran’s Day Ceremony Dec: Changing of the Mayor Annual Economic Conference Holiday Tree Trimming Festivities In addition to these, there are other ongoing events such as community service club meetings and charitable organization fundraising events. Some of these are also listed below. The Mayor should decide how he/she would like to respond to these invitations and advise the City Council Administrative Assistant. Other Ongoing Activities of Interest • Citizen’s Police Academy Graduations (As needed – No regular schedule) • Cub Scouts Blue and Gold Dinners • Eagle Scouts Courts of Honor • Kiwanis Meetings • Rotary Meetings • Requests for Lunch with the Mayor as a Raffle Prize for Charitable Organizations (Mayor should advise City Council Administrative Assistant on the number of guests they will pay for) OFFICE HOURS It is recommended that regular office hours be established (based on outside job availability). This assists staff in scheduling meetings without the need to contact the Mayor each time a meeting is required. Consideration should also be given to scheduling a weekly block of time that may be used to meet with the public or review documents. RESPONDING TO CITIZEN INQUIRIES Citizen inquiries are processed through the MyHB online content management system. RESPONDING TO REQUESTS FOR MEETINGS BY CITIZENS The following process is currently followed when citizens request meetings with the Mayor and City Council. 1. Before scheduling a meeting, Administrative staff advises citizen of other available options, such as: a) Sending a letteran e-mail or current technology explaining the nature of the issue b) Speaking directly to the appropriate department staff If this is not satisfactory to the resident, a meeting is scheduled. The City Council’s 202 Mayor Protocol Page 11 Administrative Assistant is directed to notify the department head of the meeting and schedule the appropriate staff to meet with the resident. Note: Meetings are not scheduled if the issue involves matters in litigation, when a claim has been filed against the city, or when a traffic citation has been issued. SIGNATURE PROTOCOL 1. The Mayor is required to sign the following documents in person: a) All County, State, and Federal agreements or documents b) Documents which must be notarized 2. A signature stamp is currently used for the following items: (per City Council Resolution) a) All other local documents/agreements approved by City Council 3. Other documents signed by the Mayor: a) Proclamations, etc. - signed by Mayor and/or full City Council b) Letters to citizens applying for and receiving a board/commission appointment c) Specific letters relating to Citizen Inquires d) Letters on Legislative Positions as directed by City Council/Intergovernmental Relations 203 CITY OF HUNTINGTON BEACH 2022 COUNCIL LIAISON LIST Page 1 of 6 CITIZEN BOARDS, COMMISSIONS, AND COMMITTEES (Citizen Members Appointed by City Council to Four-Year Terms) Citizen Group Council Liaisons Meeting Date/Place** Staffing Department 1. Citizen Infrastructure Advisory Board / Public Works Commission* Individual Appointments 3rd Wed. Monthly, 5:00 PM Utilities Yard, 19021 Huntington St Public Works 2. Citizen Participation Advisory Board (CPAB) Individual Appointments 1st Thurs. Monthly, 6:00 PM, City Hall Lower-Level B-8 Community Development 3. Community & Library Services Commission* Individual Appointments 2nd Wed. Monthly, 6:00 PM, Zoom / City Hall Council Chamber Community & Library Services 4. Design Review Board (DRB) Kalmick, Peterson 2nd Thurs. Monthly, 3:30 PM, City Hall Lower Level, B-8 Community Development 5. Environmental & Sustainability Board* Kalmick, Moser (also served as Chair and Vice Chair of the Board) 2nd Wed. Every other month, 6:00 PM, City Hall Lower Level, B-8 City Manager’s Office 6. Finance Commission Individual Appointments 4th Wed. Monthly, 5:00 PM Location varies month to month (Zoom, B-7/B-8, Caucus Room) Finance 7. Fourth of July Executive Board Moser, Peterson 1st Wed. Monthly, 6:00 PM, Zoom / City Hall Lower-Level B-8 Community & Library Services 8. Harbor Commission Peterson, Posey 4th Thurs. Monthly, 5:00 PM, City Hall Lower-Level B-8 Fire 9. Historic Resources Board Bolton, Peterson 3rd Wed. Monthly, 5:00 PM, City Hall Lower-Level B-7 Community & Library Services 10. Human Relations Committee Bolton, Moser 2nd Tues. Monthly, 6:45 PM, City Hall Lower-Level B-7 City Manager’s Office 11. Investment Advisory Board Individual Appointments 3rd Thur. Quarterly (January, April, July, October), 6:00 PM, Via Zoom City Treasurer 204 2022 Council Liaison List 2 of 6 Rev. 1/6/2022 1:53 PM Citizen Group Council Liaisons Meeting Date/Place** Staffing Department 12. Jet Noise Commission Bolton, Delgleize 4th Mon. Monthly, 5:30 PM, City Hall Lower Level B-7 City Manager’s Office 13. Mobile Home Advisory Board Carr, Kalmick 4th Mon, 5:00 PM Quarterly (January, April, July, October), Zoom / City Hall Lower-Level B-8 City Manager’s Office 14. Personnel Commission*** Carr, Moser 3rd Wed. Monthly, 5:30 PM, City Hall Lower-Level B-8 Administrative Services 15. Planning Commission Individual Appointments 2nd & 4th Tues. Monthly, 6:00 PM City Hall Council Chambers Community Development 16. Youth Board Carr, Moser 2nd Mon, Monthly, 3:30 PM (No Meetings – June, July, Aug.) City Hall, 5th Floor Conf. Room Community & Library Services 17. Sunset Beach Local Coastal Program Review Board**** N/A 2n Tues., Monthly, 7:30 PM Nobles Family Community Center Community Development 18. Charter Review Committee (Ad-hoc) Individual Appointments TBD City Manager’s Office * Pending approval of ordinances on 12/21/2021. **Meeting Date/Place is subject to change. *** 2-year term ****The primary structure of the Sunset Beach Local Coastal Program Review Board remains the same after the annexation. This Board is comprised of seven members initially appointed by the OC Board of Supervisors and subsequent members elected by the Review Board itself. The City is in the process of preparing an ordinance to incorporate the LCPRB in the municipal code. 205 2022 Council Liaison List 3 of 6 Rev. 1/6/2022 1:53 PM CITY OF HUNTINGTON BEACH COUNCIL COMMITTEES (STANDING) (Created by City Council Action, consisting of three Council members; subject to the Brown Act) Council Committee Committee Members Meeting Date/Place** Department 1. Communications Committee Carr, Kalmick, Moser 4th Tues. Monthly, 3:30 PM, City Hall 4th Floor, CR #1 City Manager’s Office 2. Economic Development Committee (EDC) Delgleize, Carr, Posey (Mayor, Mayor Pro Tem, Immediate Past Mayor – prescribed) 2nd Wed., Every Other Month, 3:30 PM, City Hall Lower Level B8 Community Development 3. Intergovernmental Relations Committee (IRC) Carr, Delgleize, Posey 3rd Wed. Monthly, 4:00 PM, City Hall 4th Floor, CR #2 City Manager’s Office 4. Oversight Board of the Huntington Beach Successor Agency Posey (Mayor’s appointee, two County Board Supervisors Appointees& OCSD rep). Twice per year and as needed. 4:30 PM, City Hall Lower Level, Room B-8 City Clerk’s Office 5. Smart Cities & Technology Committee Delgleize, Kalmick, Moser As needed, TBD Public Works COUNCIL COMMITTEES (AD-HOC) (Created by City Council Action; not subject to the Brown Act) Council Committee Committee Members Meeting Date/Place Department 1. Downtown Urban Design Study (Ad-hoc) Carr, Kalmick, Moser As Needed Community Development 2. Housing / RHNA Committee (Ad-hoc) Bolton, Kalmick, Posey As Needed Community Development 3. Short Term Rental Committee (Ad-hoc) Bolton, Carr, Delgleize As Needed Community Development 206 2022 Council Liaison List 4 of 6 Rev. 1/6/2022 1:53 PM OTHER CITY AND CITIZEN COMMITTEES (Created by City Council Action; not subject to the Brown Act, Community Meetings w/ Roundtable format) Citizen Group Council Liaisons Meeting Date/Place** Department 1. Specific Events Executive Committee Bolton, Delgleize As needed City Hall Lower Level, Room B-8 Community & Library Services 2. Homeless Task Force Bolton, Delgleize, Moser 3rd Wednesday, 3:00 p.m., City Hall Lower Level B-7 Police Department 3. Huntington Central Park Collaborative Delgleize, Moser Last Tuesday of the Month, 4:30-6:40 PM City Hall Lower Level Room B-8 Community & Library Services 4. Oakview Task Force / Community Meetings Bolton, Carr, Moser Quarterly, 3rd Thursday of March, June, September, December, 4:00PM, Oak View Elementary Community & Library Services 5. School District / City Delgleize, Moser 2nd Mon. Quarterly, 3:30 PM, City Hall Lower Level B-7 City Manager’s Office 6. Southeast Area Committee Bolton, Carr, Peterson 4th Wed., 4:30 PM, Every two month (Jan. March, May, July, September, Nov.) City Hall Lower Level Room B8 and Zoom City Manager’s Office 7. Sunset Beach Area Committee Bolton, Delgleize, Peterson As needed, City Hall Lower Level Room B-8 Community Development COMMUNITY GROUPS/ INDEPENDENT CITY-AFFILIATED BOARDS (Community groups both local and regional requiring participation by one or two Council Members; Citizen Members are not appointees) Citizen Group Council Liaisons Meeting Date/Place** Department 1. Huntington Beach Council on Aging Carr, Delgleize 1st Thurs, Monthly, 9:00 AM Senior Center (EMG, Room 1) Community & Library Services 2. Huntington Beach Downtown Business Improvement District (Downtown BID)* Carr, Moser 2nd Thursday, 9:00 AM, Huntington Beach Art Center Community Development 3. Neighborhood Watch Bolton, Posey 2nd Tues, 6:30 PM (No meeting in July, Aug, Dec), Police Dept, 2nd Fl. Conf. Room Police Department 4. Sister City Association Carr, Peterson 2nd Wednesday, Central Library (Room TBA), 6:00 PM Community & Library Services *subject to the Brown Act 207 2022 Council Liaison List 5 of 6 Rev. 1/6/2022 1:53 PM COMMUNITY & REGIONAL AGENCIES AND COMMITTEES (Appointed by Mayor) Name of Agency/Committee Appointee Meeting Date/ Place** 1. California Coastal Coalition (CalCoast) Board Bolton, Kalmick 2-3 meetings/year, various places 2. Huntington Beach Chamber of Commerce Government Affairs Committee Kalmick, Posey Quarterly, meeting time varies. Golden West College, 15744 Golden West St., Admin Bldg. 4-Room137 4. O.C. Council of Governments (OCCOG) Posey, Bolton (Alternate) 4th Thurs, 10:30 AM, Monthly, Irvine City Hall, City Council Chambers, 1 Civic Center Plaza, Irvine 5. Orange County Power Authority (OCPA) Term: Four (4) years Posey, Kalmick (Alternate) 2nd Tues, 10 AM, Monthly, Virtual Meeting via Zoom 6. O.C. Sanitation District (OCSD) Board of Directors (Plus Committee assigned by Chair) $212.50 per meeting Carr, Kalmick (Alternate) 4th Wed of every month, 6:00 PM, Virtual Meeting via Zoom / OCSD Administrative Office, 10844 Ellis Ave., Fountain Valley, CA 7. O.C. Mosquito & Vector Control District Board of Trustees $100 per meeting Posey 3rd Thurs of every month, 3:00 PM. Virtual Meeting / OCMVCD Headquarter, 13001 Garden Grove Blvd, 92843 8. Santa Ana River Flood Protection Agency (SARFPA) Delgleize, Bolton (Alternate) Executive Committee Meetings: 4th Thurs, 4:00 PM, January, March, May, July, September Via Zoom Full Agency Meetings: June, November 9. Southern California Association of Governments (SCAG) Regional Council District 64 Delegate* Term: Two (2) years /$120 per meeting Posey, Bolton (Alternate) (Whoever is on SCAG is also on OCCOG) 1st Thurs, 9:00 AM – 2:00 PM Virtual Meeting / SCAG Office, Downtown L.A. 10. Visit Huntington Beach Advocacy Committee Delgleize, Moser (Alternate) Monthly, usually Tuesday at 3:30 PM but varies. Virtual Meeting via Zoom / VHB Office, 155 Fifth Street, Suite 111, Huntington Beach 11. West O.C. Water Board (WOCWB) $100 per quarterly meeting Kalmick, Moser 3rd Wednesday, 4:00 PM, (January, April, July and October), Utilities Operations Building, 19001 Huntington St. 208 2022 Council Liaison List 6 of 6 Rev. 1/6/2022 1:53 PM APPOINTMENTS BY STATE & REGIONAL AGENCIES (FOR INFORMATIONAL PURPOSES ONLY) Name of Agency/Committee Appointments 1. Association of California Cities – Orange County (ACC-OC) Board of Directors Delgleize 2. California Commission on Aging Carr (appointed by Speaker Anthony Rendon) 3. City Selection Committee-- Held with League of Cities O.C. Division Meeting Mayor or Council Member designee (prescribed) 4. League of California Cities –Orange County Division Executive Board Carr 5. League of California Cities – Environmental Quality Board Carr 6. League of California Cities – Housing, Community and Economic Development Policy Committee (Meetings occur quarterly Jan, Apr, June, & Sept. Thurs. 7. League of California Cities – Public Safety Policy Committee (Meetings occur quarterly: Jan, Apr, June, & Sept. Thurs. 8. League of California Cities – Community Services Policy Committee (Meetings occur quarterly: Jan, Apr, June, & Sept. Thurs. 9. League of California Cities –Administrative Services Policy Committee 10. League of California Cities - Coastal Cities Group / Leadership Committee 11. Orange County Transportation Authority (OCTA) Board of Directors 2nd & 4th Monday, 9:00 AM, OCTA Headquarters, 550 S. Main St., Orange, CA Conf. Room 07-08 / Zoom Delgleize (as elected by City Selection) 12. OCTA Citizen Advisory Committee Kalmick 13. Orange County Waste Management Commission (OCWMC) Quarterly-2nd Thursday in March, June, September & December, 2:00 PM Virtual Meeting via Zoom 14. SCAG - Energy and Environmental Policy Committee Kalmick 15. SCAG –Transportation & Communications Committee 1st Thurs, 10 am, SCAG Offices, Downtown L.A. 16. SCAG –Community, Economic, & Human Development (CEHD) 1st Thurs, 10 am, SCAG Offices, Downtown L.A. Posey 209 210 RESOLUTION NO. 2019-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING A REVISED COUNCIL MANUAL WHEREAS, on September 20, 1976, the City Council approved a Council Manual by the adoption of Resolution No. 4330. Amendments to the Council Manual have been approved by resolution; and, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT: The revised Council Manual attached hereto for the City of Huntington Beach be adopted. This Resolution shall take effect immediately upon its adoption by the City Council. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 18 th day of March 2019. Mayor REVIEWED AND APPROVED INITIATED AND APPROVED Ci Mana er City Clerk APPROVED AS FORM rty Attorney NA, 19-7403/198226 1 211 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-064 MEETING DATE:2/1/2022 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Sean Joyce, Interim City Manager PREPARED BY:Alisa Backstrom, City Treasurer Subject: Adopt Resolution No. 2022-03 approving the 2022 Investment Policy Statement of Issue: Pursuant to California Government Code, the Treasurer of the local agency may render an annual statement of investment policy to the legislative body for consideration and adoption. The City Treasurer, with the assistance of the Investment Advisory Board, has prepared an updated investment policy. Financial Impact: Not Applicable. Recommended Action: Adopt Resolution No. 2022-03, “A Resolution of the City Council of the City of Huntington Beach Approving the Statement of Investment Policy 2022.” Alternative Action(s): Do not adopt Resolution No. 2022-03. Analysis: The City Treasurer is responsible for the administration of the investments of City of Huntington Beach. The purpose of the Investment Policy is to establish cash management and investment guidelines for the investment of the City’s unexpended cash balances, which exclude employee retirement funds, funds governed by bond indenture agreements and other funds managed separately. This policy shall apply to each investment transaction and the entire portfolio, which must comply with the California Government Code, Sections 53600 through 53683, and all other applicable laws and regulations. The City’s Investment Policy may be rendered annually to the City Council to ensure its consistency with the overall objectives of preservation of principal, liquidity and return. The attached Investment Policy has been reviewed by the City’s Investment Advisory Board and approved as to form by the City of Huntington Beach Printed on 1/26/2022Page 1 of 2 powered by Legistar™212 File #:22-064 MEETING DATE:2/1/2022 City Attorney. Environmental Status: Not Applicable. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Resolution No. 2022-03 of the City Council of the City of Huntington Beach adopting the 2022 Investment Policy 2. 2022 Investment Policy City of Huntington Beach Printed on 1/26/2022Page 2 of 2 powered by Legistar™213 214 1 CITY OF HUNTINGTON BEACH STATEMENT OF INVESTMENT POLICY 2022 215 2 CITY OF HUNTINGTON BEACH STATEMENT OF INVESTMENT POLICY 2022 TABLE OF CONTENTS SECTION 1.0 Purpose..................................................................................................................... 3 2.0 Policy ........................................................................................................................ 3 3.0 Scope......................................................................................................................... 3 4.0 Prudence .................................................................................................................. 4 5.0 Objective .................................................................................................................. 4 6.0 Investment Advisory Board ................................................................................... 5 7.0 Delegation of Authority .......................................................................................... 5 8.0 Ethics and Conflicts of Interest ............................................................................. 6 9.0 Authorized Financial Dealers & Institutions ....................................................... 6 10.0 Authorized & Suitable Investments ...................................................................... 7 11.0 Portfolio Adjustment ............................................................................................ 13 12.0 Collateralization .................................................................................................... 13 13.0 Safekeeping and Custody ..................................................................................... 14 14.0 Diversification ....................................................................................................... 14 15.0 Maximum Maturities ............................................................................................ 15 16.0 Internal Control .................................................................................................... 15 17.0 Performance Standards ........................................................................................ 16 18.0 Reporting ............................................................................................................... 17 19.0 Investment Policy Adoption ................................................................................ 18 Glossary ................................................................................................................. 19 216 3 CITY OF HUNTINGTON BEACH Statement of Investment Policy 1.0 Purpose: This policy is intended to provide guidelines for the prudent investment of the City’s unexpended cash balances, and to outline the policies to assist in maximizing the efficiency of the City’s cash management system while meeting the daily cash flow demands of the City. 2.0 Policy: The investment practices and policies of the City of Huntington Beach are based upon California state law and prudent money management. 3.0 Scope: This investment policy applies to all financial assets as indicated in Section 3.1 below of the City of Huntington Beach. These funds are accounted for in the City’s Comprehensive Annual Financial Report. 3.1 Funds: The City Treasurer is responsible for investing the unexpended cash in the City Treasury for all funds, except for the employee’s pension funds, which are invested separately by CALPERS, those funds which are invested separately by the City Treasurer under bond indenture agreements, and funds which are invested separately by the City Treasurer or trustees under other agreements approved by Council such as the Retiree Medical Trust, the Post-Employment Section 115 Trust and the Supplemental Pension Trust. The City Treasurer will strive to maintain the level of investment of this cash (that is not to be utilized for operating cash flow in the next six months), as close as possible to 100%. These funds are described in the City’s annual financial report and include: 3.1.1 General Fund 3.1.2 Special Revenue Funds 3.1.3 Capital Project Funds 3.1.4 Enterprise Funds 3.1.5 Trust and Agency Funds 3.1.6 Debt Service Funds 217 4 3.1.7 Infrastructure Funds 3.1.8 Capital Improvement Reserve Funds 3.1.9 Any new fund created by the legislative body, unless specifically exempted This investment policy applies to all transactions involving the financial assets and related activity of the foregoing funds. It is the City’s policy to pool funds for investment purposes to provide efficiencies and economies of scale. Investing through a pooled account will provide for greater use of funds by allowing for a more efficient cash flow, a reduction in transaction costs and a greater access to the market. 4.0 Prudence: The standard of prudence to be used by the City Treasurer shall be the “prudent investor” standard. This shall be applied in the context of managing an overall portfolio. The “Prudent Investor Rule” provides, pursuant to California Government Code Section 53600.3, that investments shall be made with judgment and care—under circumstances then prevailing—which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The City Treasurer and any designee of the City Treasurer, as investment officers acting in accordance with written procedures and the investment policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is taken to control adverse developments. 5.0 Objective: Consistent with this aim, investments are made under the terms and conditions of California Government Code Section 53600, et seq. Criteria for selecting investments and the absolute order of priority are: 5.1 Safety: Safety of principal is the foremost objective of the investment program. Investments of the City of Huntington Beach shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. 218 5 5.2 Liquidity: The investment portfolio will remain sufficiently liquid to enable the City of Huntington Beach to meet all reasonably anticipated operating requirements and to maintain compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of principal. Furthermore, since all possible cash demands cannot be anticipated, the portfolio will invest primarily in securities with active secondary and resale markets. 5.3 Return on Investments: The investment portfolio shall be designed with the objective of attaining a market-average rate of return throughout budgetary and economic cycles (market interest rates), within the City of Huntington Beach’s investment policy’s risk parameters and the cash flow needs of the City. See also Section 17.0. 6.0 Investment Advisory Board: By City Charter, the City Treasurer is the custodian of all public funds of the City of Huntington Beach. The City Council members may each appoint one Huntington Beach resident to serve on an Investment Advisory Board for the purpose of advising the City Treasurer and the City Council on the City’s investment program. The Investment Advisory Board will review the investment portfolio for compliance with the adopted investment policy on a quarterly basis and will prepare an Annual Report. 7.0 Delegation of Authority: In accordance with the State of California Government Code § 53607, the City Council delegates investment authority to the City Treasurer for a period of one year and such investment authority must be renewed annually. Adoption of this policy constitutes delegation of investment authority to the City Treasurer for the following year unless revoked in writing. Within the City Treasurer’s office, the responsibility for the day to day investment of City funds will be the City Treasurer and may be delegated to such deputy chosen by the City Treasurer in the absence of the City Treasurer (as allowable per State of California Government Code § 41006). The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. 219 6 8.0 Ethics and Conflicts of Interest: In addition to state and local statutes relating to conflicts of interest, all persons involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers are required to file annual disclosure statements as required for "public officials who manage public investments" (as defined and required by the Political Reform Act and related regulations, being Government Code Sections 81000 and the Fair Political Practices Commission (FFPC)). 9.0 Authorized Financial Dealers and Institutions: The City Treasurer will maintain a list of the financial institutions and broker/dealers authorized to provide investment and depository services and will perform an annual review of the financial condition and registrations of such qualified providers. The City Treasurer will also require annual audited financial statements to be on file for each company. The City shall annually send a copy of the current investment policy to all financial institutions and broker/dealers approved to do business with the City. As far as feasibly possible, all money belonging to, or in the custody of, a local agency, including money paid to the City Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in national or state chartered banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the City Treasurer or other official having legal custody of the money; or may be invested in the investments set forth in Section 10.0. To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities, including low- and moderate-income neighborhoods. In order to be approved by the City, the dealer must be a “primary” dealer or regional dealer that qualifies under Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capitol Rule). The institution must have an office in California. The dealer must be experienced in institutional and public fund trading practices and familiar with the 220 7 California Government Code as related to investments appropriate for the City; and, other criteria as may be established in the investment procedures. All broker/dealers and financial institutions who desire to become qualified bidders for investment transactions must submit a “Broker/Dealer Application” and related documents relative to eligibility including a current audited annual financial statement, U4 form for the broker, proof of state registration, proof of Financial Industry Regulatory Authority, Inc. (“FINRA”) certification and a certification of having read and understood the City’s investment policy and agreeing to comply with the policy. Capital requirements for registered government securities brokers and dealers shall meet or exceed the requirements as set forth by the Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capitol Rule). Such companies shall also have a minimum of five years of operation. 10.0 Authorized and Suitable Investments: The City is authorized by California Government Code Section 53600, et. seq. to invest in specific types of securities. Investments not specifically listed below are deemed inappropriate and are prohibited: A. BANKERS ACCEPTANCES, maximum 25% of portfolio (up to 40% with City Council approval). Maximum term of 180 days. Banks must have a short term rating of at least A1/P1 and a long-term rating of “A” or higher as provided by a nationally recognized statistical rating organization (“NRSRO”). No more than 10 percent of the agency’s money may be invested in the bankers accepta nces of any one commercial bank pursuant to this section. B. NEGOTIABLE CERTIFICATES OF DEPOSIT, maximum 30% of portfolio. Maximum term of 3 years (up to 5 years with City Council approval). May be issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally- licensed or state-licensed branch of a foreign bank. Issuer must have a short term rating of A1/P1 and a long term rating of “A” or higher as provided by an NRSRO. No more than 10 percent of the agency’s money may be invested in negotiable certificates of deposit of any one issuer. C. COMMERCIAL PAPER, maximum 25% of portfolio. Maximum term of 270 days. Commercial paper must be of "prime" quality of the highest ranking or of the highest letter and number rating as provided by an NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2): 221 8 (1) The entity meets the following criteria: (A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated "A" or higher by an NRSRO. (2) The entity meets the following criteria: (A) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (B) Has program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or surety bond. (C) Has commercial paper that is rated "A-1" or higher, or the equivalent, by an NRSRO. Split ratings (i.e. A2/P1) are not allowable. No more than 10 percent of the outstanding commercial paper of any single corporate issue may be purchased. No more than 10 percent of the agency’s money may be invested in Commercial Paper of any one issuer. D. BONDS ISSUED BY THE STATE OF CALIFORNIA OR ANY OF THE OTHER 49 UNITED STATES. Maximum term of 5 years. Bonds must have an “A” rating or higher by an NRSRO. No more than 10 percent of the agency’s money may be invested in state bonds of any one issuer. E. BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE STATE OF CALIFORNIA. Maximum term of 5 years. Bonds must have an “A” rating or higher by an NRSRO. No more than 10 percent of the agency’s money may be invested in city or local agency bonds of any one issuer. F. OBLIGATIONS OF THE UNITED STATES TREASURY. Maximum term of 5 years. United States Treasury bills, bonds and notes or certificates of indebtedness, for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limit on the percentage of the portfolio that can be invested in this category. G. U.S. GOVERNMENT AGENCY SECURITIES (FEDERAL AGENCIES). Maximum term of 5 years. Obligations, participations or other instruments of or issued by a federal agency or a United States government-sponsored enterprise. There is no limit on the percentage of the portfolio that can be invested in this category. H. REPURCHASE AGREEMENT. Maximum term of 3 months. Investments in repurchase agreements may be made, on any investment authorized in this section, when the term of the agreement does not exceed 3 months. A Master Repurchase Agreement must be signed with the bank or broker/dealer who is selling the securities to the City. I. REVERSE-REPURCHASE AGREEMENTS. (Requires City Council approval for each transaction). 222 9 Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met: (A) The security to be sold on reverse repurchase agreement or securities lending agreemen t has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale. (B) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20 percent of the base value of the portfolio. (C) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. (D) Funds obtained, or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty (by way of a reverse repurchase agreement or securities lending agreement), shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturit y date of the same security. Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security, shall only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with a local agency. (A) For purposes of this chapter, "significant banking relat ionship" means any of the following activities of a bank: (i) Involvement in the creation, sale, purchase, or retirement of a local agency's bonds, warrants, notes, or other evidence of indebtedness. (ii) Financing of a local agency's activities. (iii) Acceptance of a local agency's securities or funds as deposits. J. MEDIUM-TERM CORPORATE NOTES, maximum 30% of portfolio with a maximum remaining maturity of 5 years or less. Notes eligible for investment must be rated “A” or higher by an NRSRO. No more than 10 percent of the agency’s money may be invested in medium-term corporate notes of any one issuer. K. TIME DEPOSITS-CERTIFICATES OF DEPOSIT (non-negotiable certificates of deposit). Maximum term of 3 years. 223 10 Deposits must be made with banks or savings & loan that have a short term rating of A1/P1 or a long-term rating of at least an “A” rating or higher by an NRSRO. No more than 10 percent of the agency’s money may be invested in time-deposits of any one issuer L. MONEY MARKET FUNDS, maximum 15% of portfolio. No more than 10 percent of the agency’s surplus funds may be invested in shares of beneficial interest of any one Money Market fund. Local agencies may invest in “shares of beneficial interest” issued by diversified management companies which invest only in direct obligations in U.S. Treasury bills, notes and bonds, U.S. Government Agencies and repurchase agreements with a weighted average of 60 days or less. They must have the highest rating from at least two NRSROs, must maintain a daily principal per share value of $1.00 per share and distribute interest monthly, and must have a minimum of $500 million in assets under management. The purchase price of the shares may not include commission. M. THE LOCAL AGENCY INVESTMENT FUND (LAIF) LAIF is a special fund of the California State Treasury through which any local government may pool investments. The City may invest up to the maximum allowable by the State Treasurer’s Office (currently $75,000,000). Investments in LAIF are highly liquid and may be converted to cash within 24 hours. N. JOINT POWERS AUTHORITY INVESTMENTS Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. The City may invest up to $20,000,000 per joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria: (1) The adviser is registered or exempt from registration with the Securities and Exchange Commission. (2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000). O. SUPRANATIONALS United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IDB), with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated “AA” or better by an NRSRO and shall not exceed 10 percent of the agency’s moneys that may be invested pursuant to this section. 224 11 P. ORANGE COUNTY INVESTMENT POOL (OCIP) As provided for in California Government Code Section 53684, the local agency may invest excess funds which are not required for immediate use. The OCIP is a pooled fund managed by the Orange County Treasurer pursuant to California Government Code sections 53601 and 53635. The City may invest up to Seventy-five million $75,000,000 in the OCIP. 225 12 INVESTMENT TYPE MAXIMUM MATURITY MAXIMUM SPECIFIED % OF PORTFOLIO/ MAXIMUM PER ISSUER MINIMUM QUALITY REQUIREMENTS Bankers' Acceptances 180 days 25% (up to 40% with Council approval) / 10% A1/P1, "A" Rating Negotiable Certificates of Deposit 3 years (Up to 5 years with Council approval) 30% / 10% A1/P1, "A" Rating Commercial Paper 270 days 25% / 10% A1, "A" Rating State Obligations-- CA And Others 5 years None / 10% "A" Rating City/Local Agency of CA Obligations 5 years None / 10% "A" Rating U.S. Treasury Obligations 5 years None None U.S. Government Agency Obligations 5 years None None Supranationals: IBRD, IFC, IDB 5 years 10% "AA" Rating Repurchase Agreements 3 Months None None Reverse Repurchase Agreements 92 days 20% of the base value of the portfolio. Requires City Council Approval None Medium-Term Corporate Notes 5 years 30% / 10% "A" Rating Non-negotiable Certificates of Deposit 3 years None / 10% A1/P1, "A" Rating Money Market Mutual Funds 60 days 15% / 10% "AAA" Rating Local Agency Investment Fund (LAIF) N/A Up to $75,000,000 None Orange County Investment Pool (OCIP) N/A Up to $75,000,000 None Joint Powers Authority N/A None / $20,000,000 See 10.0N above 226 13 10.1 Investment Pools/Money Market funds: The City Treasurer or designee shall be required to investigate all local government investment pools and money market mutual funds prior to investing and performing at least a quarterly review thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in Section 16429.1 of the California Government Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency. The Orange County Investment Pool is maintained for the County and other non-County entities for the purpose of benefiting from economies of scale through pooled investment activities and is authorized by Government Code Section 27130. The County is authorized by Government Code Section 53600 et seq. to invest in specific types of securities. These codes are the same as are applicable to investment by the City. 11.0 Portfolio Adjustments: California government code section 53601 states that if a percentage limitation for a particular category of investment is specified, then that percentage is applicable only at the date of purchase. Should any investment listed in section 10.0 exceed a percentage-of- portfolio limitation or a percentage-by-issuer limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Treasurer may consider reconstructing the portfolio basing his/her decision on the expected length of time the portfolio will be unbalanced. As well, the credit criteria listed herein refers to the credit rating at the time the security is purchased. If a security held in the portfolio is downgraded by an NRSRO to a level below the quality required by this investment policy, the City Treasurer will review the credit and make a determination as to whether to sell or retain such security. The City Treasurer will review the portfolio for such compliance no less than quarterly. 12.0 Collateralization: Under provisions of the California Government Code, California banks, and other depository institutions are required to secure the City’s deposits by pledging government securities with a value of 110 % of principal and accrued interest. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of City’s total deposits. Collateral will always be held by an 227 14 independent third party. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 percent no later than the next business day. The City Treasurer, at his/her discretion, may waive the collateral requirement for deposits that are fully insured (current limit is $250,000) by the Federal Deposit Insurance Corporation. The right of collateral substitution is granted. The City Treasurer or designee shall ensure that all demand deposits that exceed the FDIC limit (currently $250,000) shall be fully collateralized with securities authorized under state law and this Investment Policy. 13.0 Safekeeping and Custody: All City investments shall have the City of Huntington Beach as its registered owner, and all interest and principal payments and withdrawals shall indicate the City of Huntington Beach as the payee. All securities will be held with a qualified financial institution, contracted by the City as a third party custodian with a separate custodial agreement (does not apply to insured Certificates of Deposit, money market funds, or the Local Agency Investment Fund). All agreements and statements will be subject to review annually by external auditors in conjunction with their audit. All securities shall be acquired by the safekeeping institution on a “Delivery-Vs-Payment” (DVP) basis. For Repurchase Agreements, the purchase may be delivered by book entry, physical delivery or by third - party custodial agreement consistent with the Government Code. The transfer of securities to the counterparty bank’s customer book entry account may be used for book entry delivery. The City Treasurer or designee shall require a Broker Trade confirmation for all trades. 14.0 Diversification: The City’s investment portfolio will be diversified to mitigate incurring unreasonable and avoidable risks associated with concentrating investments in specific security types, maturity segment, or in individual financial institutions. 228 15 A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by investing in those securities with an "A" or above rating and approved in the investment policy and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City’s cash flow. B. Market risk, defined as the risk of market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by structuring the portfolio so that securities mature as much as possible in conjunction with major cash outflows, thus minimizing the need to sell securities prior to their maturity. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of overall investment return. The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. 15.0 Maximum Maturities: To the extent possible, the City of Huntington Beach will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five (5) years from the date of purchase, unless the legislative body has granted express authority to make that investment either specifically, or as a part of an investment program approved by the City Council. The City of Huntington Beach shall not permit more than 50% of its investment portfolio to be invested in securities with maturities over four years. 16.0 Internal Control: The City Treasurer and the Finance Department shall establish a system of internal controls designed to prevent loss of public funds due to fraud, employee error, misrepresentation by third parties, or unanticipated market changes. No investment personnel may engage in an investment transaction except as provided for under the terms of this policy and the procedure established by the City Treasurer. The external auditors shall annually review the investments with respect to the investment policy. This review will provide internal control by assuring compliance with policies and procedures for the investments that are selected for testing. Additionally, account reconciliation and verification of general ledger balances relating to the purchasing or maturing of investments and allocation of interest on investments to fund balances shall be performed by the Finance Department and approved 229 16 by the City Treasurer. To provide further protection of City funds, written procedures prohibit the wiring of any City funds without the authorization of at least two of the four designated City officials: 1. City Treasurer 2. Treasury Manager 3. Chief Financial Officer 4. Assistant Chief Financial Officer 17.0 Performance Standards: This investment policy shall be reviewed at least annually by the Investment Advisory Board and the City Council to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends. The moneys entrusted to the City Treasurer will be primarily a passively managed portfolio. However, the City Treasurer will make best efforts to observe, review, and react to changing conditions that affect the portfolio. 17.1 Market Yield (Benchmark): The investment portfolio shall be managed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow. Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been met. Because the investment portfolio is designed to operate on primarily a ‘hold-to-maturity’ premise, and because of the safety, liquidity, and yield priorities, the performance benchmark that will be used by the Treasurer to determine whether market yields are being achieved shall be the 12-month moving average of the interpolated 1.5-Year Constant Maturity Treasury (CMT) rate. This interpolated rate shall be utilized in order to best match the average duration of the portfolio. However, since return on investment is the least important objective of the investment portfolio, the benchmark will be used only as a reference tool. The reporting of a benchmark does not imply that the City Treasurer will add additional risk to the investment portfolio in order to attain or exceed the benchmark. The prohibition of highly speculative investments precludes pursuit of gain or profit through unusual risk and precludes investments primarily directed at gains or profits from conjectural fluctuations in market prices. The City Treasurer will not directly pursue any investments that are 230 17 leveraged or deemed derivative in nature. However, as long as the original investments can be justified by their ordinary earning power, trading in response to changes in market value can be used as part of ongoing portfolio management. 18.0 Reporting: The City Treasurer shall submit a quarterly report to the City Council, City Manager, Chief Financial Officer and the Investment Advisory Board within 30 days following the end of the quarter. This report will include the following elements pursuant to State law and Government Accounting Standard Board (GASB) #40: 18.1 Type of investment 18.2. Institution/Issuer 18.3 Purchase Date 18.4 Date of maturity 18.5 Amount of deposit or cost of the investment 18.6 Face value of the investment 18.7 Current market value of securities and source of valuation 18.8 Rate of interest 18.9 Interest earnings 18.10 Statement relating the report to its compliance with the Statement of Investment Policy or the manner in which the portfolio is not in compliance 18.11 Statement on availability of funds to meet the next six month’s obligations 18.12 Monthly and Year to date City Treasurer Budget Amounts for Interest Income 18.13 Percentage of Portfolio by Investment Type 18.14 Days to Maturity for all Investments 18.15 Comparative report on Monthly Investment Balances & Interest Yields 18.16 Monthly transactions This quarterly report shall be placed on the City Council Agenda for Council and public review. In addition, a commentary on capital markets and economic conditions may be included with the report. The City Treasurer shall submit to the City Council, City Manager and Chief Financial Officer a monthly report listing the above stated (18.1 – 18.16) financial transactions. 231 18 19.0 Investment Policy Adoption: By virtue of a resolution of the City Council of the City of Huntington Beach, the Council shall acknowledge the receipt and filing of this annual statement of investment policy for the respective year. 232 19 GLOSSARY AGENCIES: Federal agency securities. ASKED: The price at which securities are offered. (The price at which a firm will sell a security to an investor.) BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. The drafts are drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. An acceptance is a high grade negotiable instrument. BASIS POINT: One one-hundredth of a percent (i.e. 0.01%) BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) BROKER: A broker brings buyers and sellers together for a commission. He/she does not take a position. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. 233 20 COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation (including limited liability companies) to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank of America, etc. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City. It includes combined statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material and a detailed Statistical section. COUPON: a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions; buying and selling for his/her own account. DEBENTURE: An unsecured bond backed only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is 234 21 derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities). DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value (e.g. US Treasury Bills). DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions (e.g. S&L’s, Small business firms, students, farmers, farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits, currently up to $250,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve though open-market operations. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other presidents serve on a rotating basis. The committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. 235 22 FEDERAL RESERVE SYSTEM: The central bank of the United States created by congress and consisting of a seven-member Board of Governors in Washington, D.C.; 12 regional banks and approximately 38 percent of the 8,039 commercial banks in the United States are members of the Federal Reserve System. National banks must be members; state- chartered banks may join if they meet certain requirements. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and a reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. 236 23 NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (“NRSRO”): Firms that review and assess the creditworthiness of an obligor as an entity or with respect to specific securities or money market instruments and express their opinion in the form of a letter rating. A credit rating agency may apply to the SEC for registration as a nationally recognized statistical rating organization (“NRSRO”). The primary rating agencies are Standard & Poor’s Corporation, Moody’s Investor Services, Inc. and Fitch, Inc. NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the financial institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They are high-grade negotiable instruments, paying a higher interest rate than regular certificates of deposit. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See “Asked” and “Bid”. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit: Sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool. PORTFOLIO: Collection of securities held by an investor. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker/dealers, banks and a few unregulated firms. 237 24 PRUDENT PERSON RULE: An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called “legal list”. In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity; on a bond, the current income return. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, FHLMC, etc.) and Corporations, which have imbedded option (e.g. call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. 238 25 SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See “Uniform Net Capital Rule”. SMALL BUSINESS ADMINISTRATION (SBA): The portion of these securities which are guaranteed by Federal government to provide financial assistance through direct loans and loan guarantees to small businesses. Cash flows from these instruments may not be in equal installments because of prepayments. SUPRANATIONAL SECURITIES: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IDB), with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated “AA” or better by an NRSRO and shall not exceed 10 percent of the agency’s moneys that may be invested pursuant to this section. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years. TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury having initial maturities of from one year to ten years. 239 26 UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus an y discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 240 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-075 MEETING DATE:2/1/2022 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Sean Joyce, Interim City Manager PREPARED BY: Travis K. Hopkins, Assistant City Manager Subject: Consider positions on legislation pending before the State Legislature, as recommended by the Intergovernmental Relations Committee (IRC) Statement of Issue: On January 19, 2022, the Intergovernmental Relations Committee (IRC) comprised of Mayor Barbara Delgleize, Mayor Pro Tem Mike Posey, and Council Member Kim Carr discussed local, State and Federal issues with relevance to Huntington Beach. Following discussion, the IRC chose to take positions on one proposed state legislation that is presented to the City Council for further consideration. Financial Impact: None Recommended Action: Approve a letter of support for Assembly Bill 1595 (Quirk-Silva & Choi): Veterans Cemetery. Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis: On January 19, 2022, the IRC reviewed and discussed local, state and federal issues, with relevance to Huntington Beach priorities and projects identified by the City Council. The following is an analysis of one item that the Committee chose to take a position on and is presented to the City Council for consideration: 1. Approve a letter of support for AB 1595 (Quirk-Silva & Choi): Veterans Cemetery in Orange County -Orange County is the State’s largest county without a veteran’s cemetery. As such, the Legislature approved AB 1453 in 2014 requiring the Department of Veterans Affairs to acquire study, design, develop, construct and equip a state-owned and operated Veterans Cemetery in Irvine. After much deliberation, the State adopted AB 368 directing CalVet to conduct a site study analysis of two locations in Irvine, which ultimately did not move forward. Another location at Gypsum Canyon in Anaheim is under consideration with support City of Huntington Beach Printed on 1/26/2022Page 1 of 2 powered by Legistar™241 File #:22-075 MEETING DATE:2/1/2022 forward. Another location at Gypsum Canyon in Anaheim is under consideration with support from the Orange County Board of Supervisors and all 34 Orange County cities. Huntington Beach adopted Resolution 2021-53 in support on September 7, 2021 (see attached). However, each time a new location is proposed, the Legislature must engage in a lengthy process to amend the current law which limits the site placement to Irvine. AB 1595 simplifies the process by authorizing CalVet to cooperate with local government agencies to locate, design, build and equip a cemetery generally within the County. Environmental Status: Not applicable. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. AB 1595 Legislative Language 2. AB 1595 Fact Sheet 3. AB 1595 Template Letter of Support 4. Resolution 2021-53 in support of a Veterans Cemetery in Anaheim City of Huntington Beach Printed on 1/26/2022Page 2 of 2 powered by Legistar™242 california legislature—2021–22 regular session ASSEMBLY BILL No. 1595 Introduced by Assembly Members Quirk-Silva and Choi January 3, 2022 An act to amend Section 1410 of the Military and Veterans Code, relating to veterans, and declaring the urgency thereof, to take effect immediately. legislative counsel’s digest AB 1595, as introduced, Quirk-Silva. Veterans cemetery: County of Orange. Existing law requires the Department of Veterans Affairs to acquire, study, design, develop, construct, and equip a state-owned and state-operated Southern California Veterans Cemetery in the County of Orange at one of 2 possible sites, as specified. Existing law requires the department to, after completing acquisition studies on both sites, consult with the Department of General Services to determine which site to pursue based on the economic feasibility, benefits to veterans and City of Irvine residents, and availability of each location. Existing law makes honorably discharged veterans, their spouses, and dependent children eligible for interment in the cemetery, as specified. This bill would delete those site selection requirements and would instead require the department to acquire, study, design, develop, construct, and equip a state-owned and state-operated Southern California Veterans Cemetery in the County of Orange. This bill would declare that it is to take effect immediately as an urgency statute. Vote: 2⁄3. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: no.​ 99 243 The people of the State of California do enact as follows: line 1 SECTION 1. Section 1410 of the Military and Veterans Code line 2 is amended to read: line 3 1410. (a)  (1)  Pursuant to Section 1412, the department, in line 4 voluntary cooperation with local government entities in the County line 5 of Orange, shall acquire, study, design, develop, construct, and line 6 equip a state-owned and state-operated Southern California line 7 Veterans Cemetery, which shall be located at either the site of the line 8 former Marine Corps Air Station El Toro, on 125 acres known as line 9 the Amended and Restated Development Agreement Site in the line 10 Orange County Great Park in the City of Irvine or at the line 11 approximately 100 acres known as the Golf Course Site in the line 12 Orange County Great Park in the City of Irvine, as described and line 13 adopted by the City Council of the City of Irvine at the July 23, line 14 2019, special joint meeting. The department shall, after completing line 15 acquisition studies on both sites, consult with the Department of line 16 General Services to determine which site to pursue based on the line 17 economic feasibility, benefits to veterans and City of Irvine line 18 residents, and availability of each location. in the County of line 19 Orange. line 20 (2)  The department shall oversee and coordinate the acquisition, line 21 study, design, development, and construction of the cemetery. line 22 (3)  For purposes of this chapter, “department” shall mean means line 23 the Department of Veterans Affairs. line 24 (b)  (1)  Subject to the eligibility requirements described in line 25 Section 2402 of Title 38 of the United States Code, as it may be line 26 amended, honorably discharged veterans and their spouses and line 27 eligible dependent children are eligible for interment in the line 28 cemetery. The department shall establish a fee to be charged for line 29 interment of veteran spouses and eligible dependent children. The line 30 amount of the fee shall not exceed the reasonable costs to the line 31 department for interment in the cemetery. line 32 (2)  Subject to Section 1418, for the purposes of this subdivision, line 33 the department shall adopt regulations to specify the eligibility line 34 requirements for interment in the cemetery. line 35 (3)  All fees received pursuant to paragraph (1) shall be deposited line 36 in the Southern California Veterans Cemetery Perpetual line 37 Maintenance Fund created pursuant to Section 1412. 99 — 2 — AB 1595 244 line 1 SEC. 2. This act is an urgency statute necessary for the line 2 immediate preservation of the public peace, health, or safety within line 3 the meaning of Article IV of the California Constitution and shall line 4 go into immediate effect. The facts constituting the necessity are: line 5 It is necessary that this act take effect immediately in order to line 6 commence with the design, development, and construction of the line 7 Southern California Veterans Cemetery at the earliest possible line 8 time. O 99 AB 1595 — 3 — 245 ASSEMBLYWOMAN QUIRK-SILVA, 65TH DISTRICT AB 1595 (QUIRK-SILVA & CHOI): VETERANS CEMETERY SUMMARY Assembly Bill 1595 seeks to authorize a state veterans cemetery at a location within the County of Orange. BACKGROUND Orange County is the State’s largest county without a veterans cemetery. In 2014, the California Department of Veterans Affairs (CalVet) estimated that the County of Orange was home to approximately 117,000 veterans. Yet, Orange County veterans and their families must travel to the Riverside National Cemetery in order for their service members to be interred at a final and proper resting place. In 2014, the Legislature approved Assembly Bill (AB) 1453 to begin the process of bringing a state veterans cemetery to Orange County at the Amended and Restated Development Agreement (ARDA) site located at the decommissioned Marine Corps Air Station El Toro in the City of Irvine. However, a lack of consensus, public opposition, and cost concerns prompted a renewed debate around the most suitable location for an Orange County Veterans Cemetery. In 2017, a second local site known as the “Strawberry Fields” was proposed and accepted by the City of Irvine for consideration. Subsequently, in 2018, a grass roots initiative was passed at the local level overturning the City’s previous action. The City then directed staff to study a third proposed site known as the “Golf Course” site, prompting the introduction and passage of AB 368 in 2019. AB 368 directed CalVet to work with the Department of General Services to deliver a site study analysis on both the ARDA and Golf Course locations. Upon the completion of the study in 2021, the Irvine City Council received a presentation on the outcome of the site study and took no action, effectively preventing CalVet from submitting an application for a federal grant to move the process of building an Orange County Veterans Cemetery forward. Each time a new site is proposed, the Legislature has to introduce a new bill to amend the current law. The legislative process takes a year or more. AB 1595 removes the legislative step out of the process by broadly authorizing CalVet to: acquire, study, design, develop, construct, and equip a state owned and state- operated Southern California Veterans Cemetery within the County of Orange. EXISTING LAW Existing law only authorizes CalVet to evaluate the placement of a veterans cemetery in one of two locations in Orange County, thereby excluding from consideration any other site that might be deemed suitable by CalVet and the local community. AB 1595 simplifies this process by broadly authorizing CalVet in cooperation with the regional local government entities, to acquire, study, design, develop, construct and equip a state owned and operated Southern California Veterans Cemetery within the County of Orange. THIS BILL AB 1595 will authorize a state veterans cemetery within the County of orange with input and support by the local community. The bill also includes an urgency clause so that CalVet can promptly start an acquisition study of a proposed cemetery location, as required by law. AB 1595 represents an important milestone in finding a final resting place for Orange County veterans and their families. SUPPORT  None received 246 ASSEMBLYWOMAN QUIRK-SILVA, 65TH DISTRICT AB 1595 (QUIRK-SILVA & CHOI): VETERANS CEMETERY CONTACT INFORMATION Christopher Aguilera Legislative Aide Office of Assemblymember Sharon Quirk-Silva, (916) 319-2065 Christopher.Aguilera@asm.ca.gov 247 (DATE) The Honorable Sharon Quirk-Silva Assemblymember, 65th District 1440 North Harbor Boulevard, Suite 270 Fullerton, CA 92835 The Honorable Steven Choi, Ph.D. Assemblymember, 68th District 3240 El Camino Real, Suite 110 Irvine, CA 92602 SUBJECT: AB 1595 –Veterans Cemetery, County of Orange–SUPPORT Dear Assemblymember Quirk-Silva and Assemblymember Choi: On behalf of (CITY) thank you for authoring Assembly Bill (AB) 1595 to allow the California Department of Veterans Affairs (CalVet) to design, develop, and construct a state-operated veterans cemetery in Orange County. Home to former Army, Navy, and Marine bases and an estimated 104,949 veterans, Orange County is California’s largest county without a veterans cemetery. On July 27, 2021, the Board of Supervisors unanimously approved allocating $20 million exclusively for site development of a veterans cemetery at Gypsum Canyon and adopted a resolution to move forward with planning and developing a site to honor and respect the men and women who served our great country. The Board previously allocated over 200 acres of county-owned land at Gypsum Canyon in Anaheim Hills near the intersection of the 91 freeway and 241 toll road, which has been deeded to the Orange County Cemetery District (OCCD) for the purpose of building a veterans cemetery. The County and OCCD have met with CalVet regarding the Gypsum Canyon site. CalVet is aware that the property will have a separate public civilian cemetery adjacent to it, and that it will be constructed and financed by OCCD separately from a veterans cemetery. OCCD will pay all costs to bring utilities and shared infrastructure to the property. After years of delay due to lack of consensus on a location, the County’s $20 million commitment along with OCCD’s financing plan offer an unprecedented opportunity to immediately begin funding the site. All 34 Orange County cities have adopted resolutions supporting the Gypsum Canyon site. In addition, a bipartisan majority of Orange County state and federal delegation members, numerous veterans organization leaders, and more than 140 local elected officials all enthusiastically support a veterans cemetery at Gypsum Canyon. However, legislation is needed to amend the Military & Veterans Code in order to proceed. AB 1595 would allow CalVet to acquire, study, design, develop, construct, and equip a state-owned and state-operated Southern California Veterans Cemetery in Orange County so that we may honor the men and women who served our country and who deserve the right to be buried in Orange County. For these reasons, (CITY) supports AB 1595. Sincerely, 248 (Signature) Cc: Assemblymember Jacqui Irwin: Chair, Assembly Military & Veterans Affairs Committee Senator Bob Archuleta, Chair – Senate Military & Veterans Affairs Committee Christian Burkin – Chief Consultant, Assembly Military & Veterans Affairs Committee Veronica Badillo – Staff Director, Senate Military & Veterans Affairs Committee Members, Orange County Legislative Delegation Members, Orange County Board of Supervisors 249 250 251 252 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-001 MEETING DATE:2/1/2022 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Sean Joyce, Interim City Manager PREPARED BY:Sean Crumby, Director of Public Works Subject: Approve and authorize execution of a Professional Service Agreement for the preparation of an Americans with Disabilities Act (ADA) Self-Evaluation and Transition Plan with Disability Access Consultants (DAC) Statement of Issue: The City originally prepared a Transition Plan for park and building facilities in 2007, but the public right-of-way, including parking lots, street intersections, and sidewalks, was not evaluated as part of the 2007 Transition Plan. The Federal Americans with Disabilities Act (ADA) has been in place since 1990, and the Code of Federal Regulations mandates public agencies to comply by maintaining an up-to-date Self Evaluation and Transition Plan for the facilities it owns and maintains. The scope of services for this effort will include the compilation of a comprehensive ADA Self-Evaluation and Transition Plan for City buildings, parks, and public right-of-way. The consultant will be performing field investigations within the city right-of-way and at city facilities and parks in order to identify obstacles limiting accessibility, describe methods to improve accessibility and specify a schedule for achieving ADA compliance. The Self Evaluation will evaluate the City’s services, practices, and policies. The Transition Plan component will evaluate physical barriers at all City-owned facilities and public right-of-way; the plan will provide recommendations for removing identified barriers and complying with accessibility requirements as mandated by the ADA and State of California Access codes. The Transition Plan will provide the basis for prioritizing, budgeting, implementing, and monitoring barrier removal. A comprehensive City ADA Transition Plan will ensure that City facilities will become accessible to the public. Financial Impact: The total cost for the project, including contingency is $676,296, and funds are available from the Infrastructure Fund account 31485201.69365. Therefore, Disability Access Consultant’s (DAC) cost of services in the amount of $563,580 is within the appropriated budget amount for the project. Recommended Action: Approve and authorize the Mayor and City Clerk to execute “Professional Services Contract Between City of Huntington Beach Printed on 1/26/2022Page 1 of 2 powered by Legistar™253 File #:22-001 MEETING DATE:2/1/2022 the City of Huntington Beach and Disability Access Consultants, LLC for ADA Self-Evaluation and Transition Plan.” Alternative Action(s): Do not authorize the agreement and direct staff accordingly. Analysis: In September 2021, a Request for Proposals (RFP) was issued for professional services to prepare an updated Self-Evaluation and Transition Plan. Three firms submitted proposals for the project. The proposals were reviewed by a selection team comprised of staff in Public Works and evaluated based on criteria established for consultant selection. The criteria included relevant project experience, availability of personnel, ability to meet schedule, and comprehensiveness of the proposal. After consideration of the proposals, it was unanimously agreed upon that DAC is best equipped to perform the work prescribed in the RFP. DAC had, by far, the most extensive and relevant experience, including successfully completing the previous Transition Plan for the City’s parks and building facilities in 2007. Having prepared over 400 Self-Evaluations and Transition Plans for public agencies in California alone, DAC also offered the most extensive recent Orange County references for similar projects within the past five years, including in the cities of San Juan Capistrano, Fullerton,and Fountain Valley.Additionally, DAC was the only proposal to include their own cloud-based management software,which will allow for integration into the City's ArcGIS to manage the data once the Self-Evaluation and Transition Plan are completed. DAC will be engaged with the City throughout the process to ensure that City input is considered in all aspects of the plan and how it is set up for implementation. DAC references were verified and several positive remarks were received regarding DAC’s approach, comprehensiveness, and cooperative effort in working with both the agencies and the public. Environmental Status: Not applicable. Strategic Plan Goal: Infrastructure & Parks Attachment(s): 1. Professional Services Contract between the City of Huntington Beach and Disability Access Consultants for preparation of the ADA Self-Evaluation and Transition Plan. 2. Professional Services Award Analysis City of Huntington Beach Printed on 1/26/2022Page 2 of 2 powered by Legistar™254 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND DISABILITY ACCESS CONSULT ANTS, LLC FOR ADA SELF-EVALUATION AND TRANSITION PLAN THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY," and Disability Access Consultants, a Limited Liability Corporation hereinafter referred to as "CONSULT ANT." WHEREAS, CITY desires to engage the services of a consultant to provide ADA Self- evaluation and Transition Plan; and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service contracts have been complied with; and CONSULT ANT has been selected to perform these services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows: 1. SCOPE OF SERVICES CONSUL TANT shall provide all services as described in Exhibit 11 A,11 which is attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." CONSULT ANT hereby designates Barbara Thorpe who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULT ANT in the performance of this Agreement. agree/ surfnet/professional svcs mayor 5/19-204082 1 of 11 255 3. TERM; TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSUL TANT are to commence on _________ , 20 __ (the "Commencement Date"). This Agreement shall automatically terminate three (3) years from the Commencement Date, unless extended or sooner terminated as provided herein. All tasks specified in Exhibit 11 A 11 shall be completed no later than three (3) years from the Commencement Date. The time for performance of the tasks identified in Exhibit 11 A 11 are generally to be shown in Exhibit 11 A.11 This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSUL TANT. In the event the Commencement Date precedes the Effective Date, CONSULT ANT shall be bound by all terms and conditions as provided herein. 4. COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time and materials basis at the rates specified in Exhibit 11 B," which is attached hereto and incorporated by reference into this Agreement, a fee, including all costs and expenses, not to exceed Six Hundred Seventy Six Thousand Two Hundred Ninety-Six Dollars ($676,296.00). 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit "A" or changes in the scope of services described in Exhibit "A," CONSULT ANT will undertake such work only after receiving written authorization from CITY. Additional compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. 6. METHOD OF PAYMENT CONSULT ANT shall be paid pursuant to the terms of Exhibit "B." agree/ surfnet/professional svcs mayor 5/l 9-204082 2of11 256 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONSULT ANT agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations, computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to CITY, and CONSULTANT shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion, whichever shall occur first. These materials may be used by CITY as it sees fit. 8. HOLD HARMLESS A. CONSULT ANT hereby agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with CONSULT ANT's (or CONSULT ANT's subcontractors, if any) negligent (or alleged negligent) performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by CONSULTANT, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of CITY. CONSULT ANT will conduct all defense at its sole cost and expense and CITY shall approve selection of CONSULT ANT's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CONSULT ANT. B. To the extent that CONSULTANT performs "Design Professional Services" within the meaning of Civil Code Section 2782.8, then the following Hold Harmless provision applies in place of subsection A above: agree/ surfnet/professional svcs mayor 5/19-204082 3of11 257 "CONSUL TANT hereby agrees to protect, defend, indemnify and hold harmless CITY and its officers, elected or appointed officials, employees, agents and volunteers, from and against any and all claims, damages, losses, expenses, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) to the extent that the claims against CONSUL TANT arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULT ANT. In no event shall the cost to defend charged to CONSULTANT exceed CONSULTANT's proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more other defendants to the claims and/or litigation is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, CONSULT ANT shall meet and confer with CITY and other defendants regarding unpaid defense costs. The duty to indemnify, including the duty and the cost to defend, is limited as provided in California Civil Code Section 2782.8. C. Regardless of whether subparagraph A or B applies, CITY shall be reimbursed by CONSULTANT for all costs and attorney's fees incurred by CITY in enforcing this obligation. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONSULT ANT. 9. PROFESSIONAL LIABILITY INSURANCE CONSULT ANT shall obtain and furnish to CITY a professional liability insurance policy covering the work performed by it hereunder. This policy shall provide coverage for CONSULT ANT' s professional liability in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and in the aggregate. The above-mentioned insurance shall not contain a self-insured retention without the express written consent of CITY; however an insurance agree/ surfnet/professional svcs mayor 5/19-204082 4of11 258 policy "deductible" of Ten Thousand Dollars ($10,000.00) or less is permitted. A claims-made policy shall be acceptable if the policy further provides that: A. The policy retroactive date coincides with or precedes the initiation of the scope of work (including subsequent policies purchased as renewals or replacements). B. CONSUL TANT shall notify CITY of circumstances or incidents that might give rise to future claims. CONSULT ANT will make every effort to maintain similar insurance during the required extended period of coverage following PROJECT completion. If insurance is terminated for any reason, CONSULT ANT agrees to purchase an extended reporting provision of at least two (2) years to report claims arising from work performed in connection with this Agreement. If CONSUL TANT fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the CITY with required proof that insurance has been procured and is in force and paid for, the CITY shall have the right, at the CITY's election, to forthwith terminate this Agreement. Such termination shall not effect Consultant's right to be paid for its time and materials expended prior to notification of termination. CONSULT ANT waives the right to receive compensation and agrees to indemnify the CITY for any work performed prior to approval of insurance by the CITY. 10. CERTIFICATE OF INSURANCE Prior to commencing performance of the work hereunder, CONSUL TANT shall furnish to CITY a certificate of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverage as required by this Agreement; the certificate shall: A. provide the name and policy number of each carrier and policy; B. state that the policy is currently in force; and agree/ surfnet/professional svcs mayor 5/19-204082 5of11 259 C. shall promise that such policy shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice; however, ten (10) days' prior written notice in the event of cancellation for nonpayment of premium. CONSULT ANT shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverage shall not derogate from CONSULT ANT's defense, hold harmless and indemnification obligations as set forth in this Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of the policy of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on the insurance hereinabove required. 11. INDEPENDENT CONTRACTOR CONSULT ANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of CITY. CONSUL TANT shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSUL TANT and its officers, agents and employees and all business licenses, if any, in connection with the PROJECT and/or the services to be performed hereunder. 12. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. CITY may terminate CONSULT ANT's services hereunder at any time with or without cause, and whether or not the PROJECT is fully complete. Any termination of this Agreement by CITY shall be made in writing, notice of which shall be delivered to CONSUL TANT as provided herein. In the agree/ surfnet/professional svcs mayor 5/19-204082 6of11 260 event of termination, all finished and unfinished documents, exhibits, report, and evidence shall, at the option of CITY, become its property and shall be promptly delivered to it by CONSULTANT. 13. ASSIGNMENT AND DELEGATION This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by CONSULT ANT to any other person or entity without the prior express written consent of CITY. If an assignment, delegation or subcontract is approved, all approved assignees, delegates and subconsultants must satisfy the insurance requirements as set forth in Sections 9 and 10 hereinabove. 14. COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 15. CITY EMPLOYEES AND OFFICIALS CONSUL TANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 16. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and CONSULT ANT may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U. S. certified mail-return receipt requested: agree/ surfnet/professional svcs mayor 5/19-204082 7of11 261 TO CITY: City of Huntington Beach ATTN: Director of Public Works 2000 Main Street Huntington Beach, CA 92648 17. CONSENT TO CONSULTANT: Disability Access Consultants, LLc ATTN: Barbara Thorpe 2862 Olive Highway, Suite D Oroville, CA 95966 When CITY's consent/approval 1s required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event. 18. MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 19. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 20. INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or agree/ surfnet/professional svcs mayor 5/19-204082 8of11 262 neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 21. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 22. IMMIGRATION CONSULT ANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 23. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULT ANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. agree/ surfnet/professional svcs mayor 5/19-204082 9of11 263 24. ATTORNEY'S FEES In the event suit is brought by either party to constrne, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. 25. SURVIVAL Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 26. GOVERNINGLAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 27. SIGNATORIES Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 28. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this agree/ surfnet/professional svcs mayor 5/19-204082 10of11 264 Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. 29. EFFECTIVE DATE This Agreement shall be effective on the date of its approval by the City Council. This Agreement shall expire when terminated as provided herein. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. CONSULTANT, DISABIILTY ACCESS CONSULTANTS, LLC By: ea.k},~~~ Barbara Thorpe print name ITS: (circle one) Chairnrnn/President/Vice President AND CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor City Clerk By. __jj_!Yh ~ L..J.f!1!./!1!lr74 ~ . _,,/, ~-!?J., J INITIATED AND APPROVED: TimOfhy Mah e : ~ print nam e ----D--i1-·e-c-to_r_o_f_P_u_b_l_ic_W_o_1_·k_s ___ _ ITS: (circle one) Secretary/Chief Finan cia l Officer/Asst. Secretary -Treasurer agree/ surfnct/profes sional svcs mayor 5119-204082 REVIEWED AND APPROVED: City Manager APPROVED AS TO FORM: City Attorney ~~ 11 of I I 265 Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. 29. EFFECTIVE DATE This Agreement shall be effective on the date of its approval by the City Council. This Agreement shall expire when terminated as provided herein. IN WITNESS WHEREOF , the parties hereto have caused this Agreement to be executed by and through their authorized officers. CONSULTANT, DISABIILTY ACCESS CONSULTANTS, LLC By:. ___________ _ print name ITS: (circle one) Chairman/PresidentNice Pres ident AND By:. ___________ _ print name ITS: (circle one) Secretary/Chief Financial Officer/ Asst. Secretary -Treasurer CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor City Clerk REVIEWED AND APPROVED: ~ City Manage? APPROVED AS TO FORM: City Attorney ~ agree / surfnet/professional svcs mayo r 5/19-204082 11 of 11 266 EXHIBIT "A" A. STATEMENT OF WORK: (Narrative of work to be performed) SEE ATTACHED EXHIBIT A B. CONSULTANT'S DUTIES AND RESPONSIBILITIES: SEE ATTACHED EXHIBIT A C. CITY'S DUTIES AND RESPONSIBILITIES: SEE ATTACHED EXHIBIT A D. WORK PROGRAM/PROJECT SCHEDULE: SEE ATTACHED EXHIBIT A EXHIBIT A 267 EXHIBIT A In order to be concise, our DAC response does not reiterate the City's RFP in its entirety. It is understood that the scope of services will be completed in three (3) phases that include a) City right-of-way, b) City buildings, and c) City parks. Task 1. Project Management and Meeting_s DAC will conduct an initial project kickoff meeting with selected City staff and provide a Project Management Plan (PMP) with five (5) copies provided at the kick-off meeting. The kick-off meeting will clarify roles and lines of communication, refine project goals, review the overall project schedule scope and, schedule surveys of City facilities, recreational areas and public rights-of-way and identify key City personnel related to the project scope. Information that is needed will be clarified at the initial orientation meeting. Progress meetings, agendas, and monthly status meeting schedule will be generated by DAC. Barbara Thorpe will be designated as the project manager and will also serve as policy and program analyst. She will be the DAC contact for the project and serve as the point of contact for the City. The designated team members that will coordinate the inspection team during the facility reviews will be Michael Boga and Candice Pursch. The management approach will include coordination and assistance from DAC office staff under the direction of Jennie Grover, Director of Administrative Services, Tim Mahoney, General Manager. Task 2: Initial Investigation and Document Review Document review by DAC will include previous plans, as-built drawings, accessibility standards and City regulatory policies related to accessibility. DAC will develop the process, procedure and forms needed to conduct the self-evaluation of the City's programs, activities and services for ADA compliance and compile the findings and recommendations into a City ADA Self-evaluation and Transition plan Executive Summary. DAC will develop a master list of City programs, services, and activities; accessibility policies; disability customer service training; communication practices and any additional available information regarding program accessibility. DAC will review appropriate and existing City transition plans, master plans, reports, and programs, as well as meet with City staff to gain insight into the City's facilities and programs in order to identify issues, which may be discriminatory to people with disabilities. The review will also include City policy and program accessibility, including eligibility requirements, participation requirements, facilities used, transportation, communication, grievance procedures and emergency procedures. DAC will review, analyze and make recommendations based on current or plans, including but not limited to the City's 2007 ADA plan, the City's General Plan and latest zoning map. DAC will conduct barrier assessment DAC Proposal For the City of Huntington Beach ADA Self-Evaluation and Transition Plan 12 268 surveys to collect information on each program and activity. Based on the barrier assessment surveys and policy reviews, DAC will evaluate the access of existing programs and services and provide recommendations where deficiencies are identified. DAC will provide the City with an Executive Summary report that will summarize the data and findings from the ADA self-evaluation and transition plan for City buildings, parks, programs, communications, open spaces and public rights-of-way. DAC will assist the City is designating an ADA coordinator and ADA liaisons for relevant City departments and provide training to City staff described in the City's RFP and additional areas. Task 3. Field Survey and Self-Evaluation The field surveys will be conducted in three (3) phases. DAC will conduct the surveys of the interior and exterior areas of each City building, facility, park and public right-of-way identified in the RFP and confirmed at the kickoff meeting. DAC will prepare reports identifying each physical element within the public areas of each of the City buildings, facilities, recreational areas and public right-of-way that is out of compliance with the ADA and related codes and regulations or otherwise hinders or prevents access to persons with disabilities. As required by the ADA, the 2010 ADA Standards will be compared with state codes and the standard that provides the greater level of accessibility utilized. As DAC collects actual measurements of as-is field conditions and records all information, data can be reprocessed if codes change without conducting a re-inspection, thus resulting in a significant savings when codes change, and the plan needs to be updated. DAC will provide the City with DACTrak online accessibility management software for City staff to generate reports in multiple styles and file formats. DACTrak reports will include but may not be limited to as-built dimensions as they relate to the ADA and other relevant code and guideline access, initial prioritizing of noncompliant findings relative to the level of impact to access, reference to accessibility codes, proposed solution(s) to eliminate the barrier, cost estimate for each solution, at least one digital photograph of each barrier to access, and a detailed location description, including GlS coordinates and mapping. The DACTrak software provides the user with the capability to generate reports in multiple formats such as progress reports, additional prioritizations, preset reporting features and other custom reports. The inclusion of photographs showing the as-is condition has proven to be valuable assistance to clients in the formulation of the decisions regarding barrier removal priorities. The DACTrak software provides an easy-to-use accessibility management platform that exceeds the ability to manage the plan by hard copies and binders. The assessment report of each facility will include cost estimates to correct deficiencies in accordance with the ADA or other applicable federal or state accessibility DAC Proposal For the City of Huntington Beach ADA Self-Evaluation and Transition Plan 13 269 codes. Barriers are identified by building, floor or location and given a unique identifier record number to assist with navigation in the accessibility software and location of the finding and recommendation by area and site. Estimated applicable costs will be given by item and element in accordance with industry standards. Costs can be easily adjusted to adhere to any cost estimates the City may utilize. The proposed method for barrier removal will be provided. The transition plan will identify physical barriers that may limit accessibility of the City programs, services or activities for individuals with disabilities. The schedule for removal of barriers and appropriate timelines will be developed in collaboration with the City. Identified barriers and obstacles will be initially prioritized. Use of the DACTrak software will provide the City with an additional tool to update prioritizations, budget, implement and monitor barrier removal. Sidewalks and curb ramps measurements include width, cross slope, running slope, changes in elevation greater than 1/4 inch or a beveled up to Yz inch, type of curb ramp, slope, landing area, warning surface, curb ramp area, obstructions in the sidewalk, street furniture, collection of GIS information and photographs. Signalized intersections include crosswalks, pedestrian ramps-curb ramps, width, slope, side flares, grooved borders, truncated domes, alignment with the crosswalk, accessible pedestrian signals and traffic stop bars. DAC uses a comprehensive approach to inspecting public rights-of-way and records actual as-is measurements, not just an indicator of compliant or not compliant. DAC has found that the use of automated equipment for compliance measurements of sidewalks do not provide actual comprehensive measurement of areas required to be assessed, such as protruding objects. DAC team members will conduct onsite inspections on our DACTrak tablets and export the on-site field conditions for processing by our servers the same day of the inspection. An Executive Summary of the entire project will also be provided to the City. DAC will provide the City with access to DACTrak, allowing the City's users to generate details reports in multiple formats, including PDF and Excel, as well as map style formats of KML and Shapefile for available exterior areas where GIS coordinates can be collected. The DACTrak online accessibility management software will provide the City with comprehensive ! reports for the interior and exterior of each facility. DACTrak also includes tools that will allow the City to plan a schedule of barrier removal, adjust priorities and update the implementation of the transition plan. Many report options are available in DACTrak that can show detailed information for every noncom pliant finding along each area of sidewalk, through high level summary reports that can offer a concise synopsis of noncompliant City-wide findings by category. DAC Proposal For the City of Huntington Beach ADA Self-Evaluation and Transition Plan 14 270 Buildings, parks and open space assessments will include an assessment of all interior and exterior elements. The reports prepared from the assessments will include details of all elements surveyed. DAC will conduct barrier assessment surveys with field reviews of all City-owned public buildings that provide programs, services or activities to the public, as appropriate. The surveys will identify physical barriers at each facility that could limit accessibility. The information collected in the field will be compared to the Federal ADA codes as well as applicable state codes and the standard that provides the greater level of accessibility utilized. Based on the results of the barrier assessment surveys, DAC will develop access compliance assessment reports issued through our DACTrak online accessibility management software in order to provide the City with the comprehensive assessment results. The reports will include as-is condition measurements and verifications as they relate to ADA access, a detailed barrier description and initial priority order related to access, at least one digital photograph for documentation of each barrier, detailed location description identifying the location of the barrier, maps will also be provided for findings where GIS coordinates can be collected for available outdoor findings, a proposed solution to eliminate the barrier; and individual cost estimates for each solution. An Executive Summary of the entire project will also be provided to the City. DAC will provide the City with access to DACTrak, allowing the City's users to generate details reports in multiple formats, including PDF and Excel, as well as map style formats of KML and Shapefile for available exterior areas where GIS coordinates can be collected. The DACTrak online accessibility management software will provide the City with comprehensive reports for the interior and exterior of each facility. DACTrak also includes tools that will allow the City to plan a schedule of barrier removal, adjust priorities and update the implementation of the transition plan. Many report options are available in DACTrak that can show detailed information for every noncompliant finding in each building, through high level summary reports that can offer a concise synopsis of noncompliant findings by category across all facilities City-wide. Estimated costs are available in all reports, however a DACTrak user can choose to generate a report without estimated costs if needed. Report information for public rights-of-way, buildings and parks will include: as-is condition measurements and verifications as they relate to ADA access, a detailed barrier description and initial priority order related to relative impact to access, at least one digital photograph for documentation of each barrier, detailed location description identifying the location of the barrier, maps will also be provided for findings where GIS coordinates can be collected for available outdoor findings, a proposed solution DAC Proposal For the City of Huntington Beach ADA Self-Evaluation and Transition Plan 15 271 to eliminate the barrier; and individual cost estimates for each solution. An Executive Summary of the entire project will also be provided to the City that will include the method and process for conducting the self-evaluation and developing the transition plan, as well as an overview of the barriers found in the City's parks and open spaces. DAC will conduct an accessibility review of City programs, services, activities and policies. In consultation with the City, DAC will identify which City programs and services including but not limited to, classes, workshops, meetings, and events, are subject to the requirements of the ADA and perform reviews of program policies, procedures, including but not limited to eligibility requirements, location(s) of services, methods of providing information and procedure for processing requests for accommodations. The information prepared from the programmatic assessments will be included in the self-evaluation and transition plan Executive Summary. A spreadsheet can be generated from DACTrak summarizing findings and recommendations that may include sidewalk grinding, sidewalk cutting, sidewalk replacement, tree root removal, crack and hole filling and other identified deficiencies. GIS information is collected for deficiencies. Task 4. GIS Integration DAC will provide the integration of the collected GIS data of the City where applicable and will include the phases and tasks identified in the RFP and will include reference maps, curb ramp condition data, GIS information, reference mapping, and polygon shapefiles and collection of sidewalk center line as line shapefile. As DAC developed and maintains DACTrak, custom fields can be added. A city-wide reference map will be included with ramp conditions and GIS coordinates. A polygon shapefile will be provided along with a sidewalk centerline shapefile. Notes can be added in the DACTrak software. Task 5. Public Outreach The City is required to provide opportunities for public input to the ADA plan. DAC will recommend and lead a public participation and outreach process that will incorporate the requirements of the ADA. The outreach portion of the self-evaluation and transition plan project will include multiple methods to provide opportunities for public input from members of the community as well as area organizations that provide services to persons with disabilities. The surveys that will be prepared for use in acquiring public input will encourage respondents to describe current accessibility needs and DAC Proposal For the City of Huntington Beach ADA Self-Evaluation and Transition Plan 16 272 challenges to assist the City in developing accessible programs and facilities. DAC will work with the City to determine the most effective methods to gather input from individuals and groups who would like to participate in the development of the plan. DAC will compile all comments and feedback from public outreach efforts to be incorporated in the final transition plan. While not required by the ADA, DAC can assist the City to organize (3) virtual community meetings to collect public input and necessary materials Task 6. Database Based on experience and knowledge of the accessibility field and best practices, DAC continues to develop innovative methodologies, easy to use ADA management tools, and proven, successful strategies for evaluating programs, services, activities, events, facilities, parks and public rights-of- way. DACTrak was developed by DAC for the purpose of easy and useful importing and management of the accessibility data collected in the field. DACTrak is interactive online software and is not an enhanced excel spread sheet. The ability to collect, compile, analyze and use report data in a practical format was one of the driving forces to develop the DACTrak intake and management software. Our DAC accessibility management software, DACTrak, provides our clients with a powerful management tool to document compliance, project costs, print custom reports and record progress. Findings and recommendations, in addition to other data are preloaded into the DACTrak software. As DAC owns and licenses the DACTrak online software which is accessed through a secure website that is compatible with all current major internet browsers. There is no software program file to download or install on the City's servers or computers in order to access and manage report data on DACTrak. All maintenance and updates to the DACTrak software are performed by DAC's in-house IT Team, therefore there is no burden on the City's IT staff to maintain or administer any software, programs or databases. The data contained in the database shall be the property of the City. DAC proposes that the City use DACTrak to facilitate ongoing monitoring and updating of the final transition plan. If the City chooses not to use the DACTrak online management software, DAC can provide reports to the City in a compatible format such as Excel and PDF. Task 7. Preliminary Cost Estimates DAC will provide the City with preliminary cost estimates for each phase to remediate the barriers identified in the DACTrak database. Furthermore, DAC will work with City to further refine costs. DAC Proposal For the City of Huntington Beach ADA Self-Evaluation and Transition Plan 17 273 Task 8. Comprehensive ADA Self-Evaluation and Transition Plan DAC will assist the City to develop a comprehensive ADA Self-evaluation and Transition plan and will include at a minimum an executive summary signed by a CASp, a summary of findings of the self- evaluation of facilities, policies, programs, and practices, the recommendations for remedial measures to correct deficiencies and a methodology for prioritizing barrier remediation, cost estimates for recommended remediation measures, assistance with an implementation schedule that includes milestones or measures of achievement for monitoring implementation, recommendations for procedures and forms for monitoring implementation, recommendations for procedures for periodically reviewing and updating the ADA transition plan, recommendations for procedures and forms for performing evaluations of additional barriers, recommendations for procedures and forms for filing requests for accommodation, a list of references and contact information for ADA and accessibility related resources; and identification of the City official(s) with overall responsibility for implementation of the plan. DAC will present the draft ADA transition plan and subsequently, the final proposed ADA transition plan findings to City Staff by issuing logins to the DACTrak accessibility management software and conducting and interactive training session via teleconference. DAC can also present the final document to the City Council. DAC will provide the City with DACTrak online accessibility management software which will allow City staff to review and print standard and custom reports on demand, as well as implement and update the transition plan and schedule of barrier removal overtime. There are no per user seat licenses to access DACTrak, DAC can establish password protected logins to as many City staff as needed. In addition to providing the City with access to DACTrak to view and download reports, DAC can deliver ten (10) bound copies of the final self-evaluation and transition plan to the City if requested, as well as electronic copies in PDF, Microsoft Excel, KML and ESRI Shapefile for available exterior reports. The Executive Summary will be provided to the City in both Word and PDF formats and can also be printed if requested. If the City chooses not to use DACTrak, all data files and project maps and drawings associated with the self-evaluation report and transition plan will be provided to the City in a mutually agreed format. All data collected will be property of the City. DAC Proposal For the City of Huntington Beach ADA Self-Evaluation and Transition Plan 18 274 EXHIBIT "B" Payment Schedule (Hourly Payment) A. Hourly Rate CONSULTANT'S fees for such services shall be based upon the following hourly rate and cost schedule: SEE ATTACHED EXHIBIT B B. Travel Charges for time during travel are not reimbursable. C. Billing 1. All billing shall be done monthly in fifteen (15) minute increments and matched to an appropriate breakdown of the time that was taken to perform that work and who performed it. 2. Each month's bill should include a total to date. That total should provide, at a glance, the total fees and costs incurred to date for the project. 3. A copy of memoranda, letters, repo1is, calculations and other documentation prepared by CONSULT ANT may be required to be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. 4. CONSULTANT shall submit to CITY an invoice for each monthly payment due. Such invoice shall: A) Reference this Agreement; B) Describe the services performed; C) Show the total amount of the payment due; D) Include a certification by a principal member of CONSULT ANT's firm that the work has been performed in accordance with the provisions of this Agreement; and E) For all payments include an estimate of the percentage of work completed. Upon submission of any such invoice, if CITY is satisfied that CONSULT ANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULT ANT in writing of the reasons for non-approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULT ANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 1 Exhibit B 275 5. Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. 2 Exhibit B 276 Disabillity Access Consultants, LLC -Detailed Labor and Fee Breakdown City of Huntington Beach Americans with Disabilities Act (ADA) Self-Evaluation and Transition Plan ATTACHMENT H -COST PROPOSAL/RA TE SHEET DAC DlS.~-B\LHY ACCESS :.iffe®:tM$tl$N~ .. STAFF POSITIONS AND BILLING RATES Task/Phase Task Description Director of Director of No. Project General Administrative Accessibility Accessibility Manaaer CASo Manaaer Services Services Specialist Director of IT Burdened Hourlv Rate $110 $100 $90 $65 $90 $75 $0 Task1: Prolect Manaaement and.Meet!nas ·. ,· ',, ·.·.·. ... ,', '• ' ',. ,.,., ', " "" ·, -· .... ·'. ... ' ;>,' •.· •' ... Task 1.1 Proiect Meetinas 12 4 12 12 8 0 2 Task 1.2 Proaress Reporfina 12 2 12 12 8 Task 1.3 Proiect Manaaement Plan 12 8 8 " Subtotal Task 1 36 6 32 32 16 0 ,., 2 Task 2:Jnitial lnvestioation and DocumentReview · ·< ' .' · .. ·.····' ' ,,' -·-.-_. :.-.' ; .. ,, .· -·; .... ' ' :_--.---·-.. '• Task 2.1-3 Initial lnvestiaation and document review 30 I 8 I 30 I I I '' ,', · Subtotal Task 2 30 I .. 8 0 I 30 0 0 I 0 Task3: Field Survev.and Self-Evaluation. · ,' ... ·• ,• '' ' ':•· ' .: -~' ' ' ··'·' .. .... ' '' ·.: ... ·"·';..'-:. " " .... Phase Al Public Riaht-of-wav 24 80 12 12 440 3880 Phase Bl Public buildinas 20 50 8 8 160 1020 Phase Cl Parks 16 40 6 12 130 920 ',,' ',, .. Subtotal Task 3 60 .170 26 32 730 "" 5820 0 Task.4: GISJntearation Proiect DatabaSe/Maooina · ,·' ',••' ·• '',',. ' ' ,', ', ;' ,•/ ' ·· .. ... .•• ... .·"'· ...... , .. ·, ,' Phase Al Public Riaht-of-wav 8 8 20 Phase Bl Public buildinas 4 4 10 Phase C Parks 4 4 10 ,,· ,',,,, ,' · .. Subtotal Task 4 16 ' ', 0 '.' 0 16 . ; 0 , ... 0 • 40 ''. Task 5: Public Outreach .•. .. · .,, '' "" ;:' •.·.-.'." '·; ··.' ' .. ' ' ·'' . ":. : . ; ··~ .. •'' ,", ; ''• ' ·.······· " ', ' Task 5.1 Development of Public Outreach Plan 12 I I I 24 I I I Task 5.21Attendance of Virtual /ln-oerson oublic outreach meetinas 8 I I I 8 I I I '" '' '" Subtotal Task 5 20 ·I 0 , I 0 32 .·. I 0 '' I.·• 0 .,, I 0 Task .6: Database ' ,' ',, / ', . '' : , . c:::··.· '•'' · .. ·; ' ' ' . ' "· " _-.. · .,.·-,-.·:.··''" ' ' Phase A Public Riaht-of-wav 4 4 4 Phase B Public buildinas 4 4 4 Phase CIParks 4 4 4 ' ' ' ', ·Subtotal Task 6 12 · .• 0 ... 0 12 0 ' 0 . 12 Task7: Preliminarv Cost Estimates .... -· . .,.,, -: ·. •.' ·-... -:,._-:_ .-.c -:_: ' : '' ' >. ' ',' .. .... '· ' ;..-.,. _'.;·: .. -. ., ·-----.''' .. Phase A Public Right of-wav 4 4 6 4 Phase Bl Public buildinas 6 4 6 6 Phase C!Parks 4 4 6 6 """ ' Subtotal Task 7 14 ,' .·· 0 ; 12 18 0 ,,.• ".·· .. 0 ,', 16 Tasks: Final ADA Self-evaluation ·and Transition Plan ' · .. ... ', ''. ',,' ,' ' ' ' ... ,,/ •,,, ~ : ' . ; ·• ···•.• ; ,' · . Task 8.1 Development of ADA Se~-Evaluation and Transition Plan 12 4 f 4 20 I I I ' ' ' ..... ' ' SUBTOTAL 12 I 4 I 4 20 I ',•' 0 I ,' 0 I .. 0 TOTAL Tasks1,2,5&8 98 18 36 114 16 0 2 Phase A SUBTOTAL (Tasks 3,4,6 & 7) 40 80 16 30 440 3880 28 Phase B SUBTOTAL (Tasks 3,4,6 & 7) 34 50 12 22 160 1020 20 Phase C SUBTOTAL (Tasks 3,4,6 & 7) 28 40 10 26 130 920 20 ,, ·._.' . ;.·' ' ' ',' ;' •,,; · .. " . TOTAL FEE •200 ' ·. •.188 :•; . 74 192 ·.· .. , .. 746 ·5820 70 ;, ' Total Proiect Fee Labor and Direct Costs ($) ·.· ,·; $4 300 $4.100 $2 560 $10,960 '' ', •,, $6,050 $6 050 ', ,, $343100 $99,340 $87,780 $530,220 ';· '', . ;• $1,400 $700 $700 $2,800 '• '. ·.•·,;' ,•', $2 880 $1400 $4,280 .. ·.·, ,, ' :, .. ··,.·· ... ' $700 $700 $700 •' $2100 •' ' ', $1,190 $1 410 $1,190 $3 790 ,' . ,. ' $3,380 $3;380 $24,670 $346 390 $102,150 $90 370 ··:: $563,580; 277 ACORD® CERT IFICATE OF LIABILITY INSURANCE I DATE (MMIDDIYYYY) ~ 01/11 /2022 T HI S CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPO N THE CERTIFICATE HOL DER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER TH E COVERAGE AFFORDED BY TH E POLIC IES BELOW. T HIS CERTIFICATE OF I NS URANCE DOES N O T CONSTITUTE A CONTRACT BETWEEN THE ISS UI NG I NSURER(S), AUTHORIZED RE PRESENTATIVE OR PRODUCER, AND THE C ERT IF ICATE HO L DER. IMPORTANT: If t h e certificat e holder i s a n A D DITIONAL INSURED, t h e policy(ies) mus t have ADDITIONAL IN SURED provisions or b e e ndorsed . If S UBROGATION IS WAIVED, s u bj ect to the t e rm s and con ditions o f t h e policy, certai n polic ies may requir e an e ndorse m e nt. A s ta tement on t h is certificate does not con fer rig h ts to the certificate hol der in lie u o f s u c h e ndorsement(s). PRODUCE R CONTAC T Ceil Provo NAME: AssuredPa rtners of Minnesota L LC rA~gNJ0 Extl: (651) 644-7200 I f,C~ Nol : (651) 6 44-9137 236 1 Hwy 36 W E-MAIL ceil.provo@assuredpartn ers .com ADDRESS: INSURER (S) AFFORDING COVERAGE NAIC # St. Paul MN 55 113 INSU RERA: Continental Cas Co 20443 INSURE D INSU RER B: American Casualty Co Reading 20427 Disability Access Consu ltan ts, LLC INSURER C: Tra nsportation Ins Co 20494 2862 Olive Highway INSURER D : Th e Sentine l In surance Co mpany 110 00 INSURERE: QBE Insurance Com pa ny Orov ille CA 95965 INSURER F : COVERAGES CERTIFICATE NUMBER: 22/23 Master/21/22 Prof REVISION NUMBE R: TH IS IS TO CERTIFY THAT TH E POLIC IES OF IN SURANCE LISTED BELOW HAVE BEEN ISSUED TO TH E INSURED NAMED ABOVE FOR THE POLICY PERIO D INDICATED . NOlWlTHSTANDING ANY REQUIREME NT, TERM OR CONDITION OF ANY CO NTRACT OR OTHER DOC UMENT WITH RESPECT TO WH ICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HER EI N IS SUBJECT TO ALL THE TERMS, EXC LU SIONS AND CO NDITI ONS OF SUC H POLIC IE S. LI MI TS SHOWN MAY HAVE BEE N REDUCE D BY PAID CLAI MS. INSR l"uu• S UDO< POLI CYEFF POLICY EXP LI MITS LTR TYPE OF IN SURANCE INSD WVD POLI CY NUM BER (MMIDDIYYYYI (MMIDDIYYYY I x COM MERCIA L GENERAL LI ABI LITY EAC H OCCURRENCE s 2,0 00,000 -D CLAIMS.MADE [8] OCCUR DAMAGE TO RENTED 1,0 00,000 PREMISES IEa occurrence\ s - -MED EXP (Any one person) s 10,000 A y B6020 052587 01/01/2022 01 /01/2023 PERSONAL & ADV INJURY s 2 ,000 ,0 00 - GEN'LAGGREGATE LIMIT APPLIES PER: GENERALAGGREGATE s 4,000 ,000 ::8j POLICY D ~:8-r D LOC PRODUCTS -COMP/OP AGG s 4,000 ,0 00 OTHER: Employee Benefits s 1,000 ,000 AUTOMOBILE LIAB ILI TY COMBINED SINGLE LIMIT s 1,000 ,000 IEa acciden tl X ANYAUTO BODILY INJURY (Pe r person) s -B O'IVNED SCHEDULED y 60 20004782 01/0 1/2022 0 1/01/2023 BODILY INJURY (Per accident) s -AUTOS ONLY -AUTOS HIRED NON-O'IVNED PROPERTY DAMAGE s -AUTOS ONLY -AU TOS ONLY (Per accident) Medical payments s 5,000 ~ Ur.I BRELLA LIAB ~OCCUR EACH OCCURREN CE s 5,000 ,000 c EXCESS LI AB CLAIM S.MADE y B6020052637 0 1/0 1/2022 01 /01/2023 AGGREGATE s 5,000,0 00 OED I XI RETEN TION s 0 s WORKERS COMPENSATION X I ~~fTUTE I I OTH- AND EMPLOYERS' LI ABILI TY ER Y IN 1,000,000 D ANY PROPRIETOR/PARTNER/EXECUTIVE 12] N/A 4 1WBCAC5W3 P 01/08/2022 0 1/08/2023 E.L. EACH ACC IDE NT s OFFICER/MEMBER EXCLUDED? 1,000,000 (M andatory in NH) E.L. DISEASE -EA EMPLOYEE s II yes, describe under 1,000,000 DESCRIPTION OF OPERATIONS below E.L. DISEASE -POLICY LIMIT s E Professiona l Liabi lity 130000 005 03/13/202 1 03/13/2022 Li mi t $5 ,000,000 DESCRIPTI ON OF OPERATI ONS I LOCATIONS I VEHICLES (A CORD 10 1, Addiliona l Rema rk s Schedul e, may be att ac hed II more space Is req ui re d) The Ci ty of Hu ntington Beach, its officers, elected or appoin ted officals, employees, agents and volu nteers are ad diti onal in su reds as respect to General Li ability, Au to Li ability a nd Umb rella Li abili ty. A PP ROV ED AS TO FORM By ;~-· ~ CITY AlTORNEY CERTIFICATE HOL DER CANCELLATION \..1 1 Y lJt-H I •i. . !J\l\ 1 l \Jiii D< •l'_,f-, SHOULD AN Y OF THE ABOVE DESCRIBED POLICIES BE CAN CELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WI LL BE DELIVERED IN City of Huntington Beach ACCORDANCE WITH THE POLI CY PROVISIONS. 2000 Main Street AUTH ORIZED REPRESENTATIVE Huntin gton Beach CA 926 48 ~ ~.4 I © 1988-2015 A CORD CORPORATION . A ll rights res erved. ACORD 25 (2016/03) The ACORD name and l ogo a re registered mar ks of ACORD 278 = CNA80103XX (09-14) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. PRIMARY AND NONCONTRIBUTORY- OTHER INSURANCE CONDITION This endorsement modifies insurance provided under the following: BUSINESSOWNERS COMMON POLICY CONDITIONS The following is added to Paragraph H. Other Insurance and supersedes any provision to the contrary: Primary And Noncontributory Insurance This insurance is primary to and will not seek contribution from any other insurance available to an additional insured under your policy provided that: 1. The additional insured is a Named Insured under such other insurance; and 2. You have agreed in writing in a contract or agreement that this insurance would be primary and would not seek contribution from any other insurance available to the additional insured. All other terms and conditions of the Policy remain unchanged. CNA80103XX (09-14) Page 1 of 1 Copyright, CNA All Rights Reserved. Includes copyrighted material of Insurance Services Office, Inc., with its permission 279 SB146932G (Ed. 10-19) BLANKET ADDITIONAL INSURED AND LIABILITY EXTENSION ENDORSEMENT This endorsement modifies insurance provided under the following: I. II. BUSINESSOWNERS LIABILITY COVERAGE FORM BUSINESSOWNERS COMMON POLICY CONDITIONS TABLE OF CONTENTS Blanket Additional Insured Provisions A. Additional Insured -Blanket Vendors B. Miscellaneous Additional Insureds c. Additional Provisions Pertinent to Additional Insured Coverage 1.a. Primarv -Noncontributory provision 1.b. Definition of "written contract" 2. Additional Insured -Extended Coverage Liability Extension Covera~es A. Bodily Injury -Expanded Definition B. Broad Knowledge of Occurrence c. Estates, Legal Representatives and Spouses D. Fellow Employee First Aid E. Leaal Liability-Damage to Premises F. Personal and Advertising Injury -Discrimination or Humiliation G. Personal and Advertising Injury -Broadened Eviction H. Waiver of Subrogation -Blanket . I. BLANKET ADDITIONAL INSURED PROVISIONS A. ADDITIONAL INSURED -BLANKET VENDORS Who Is An Insured is amended to include as an additional insured any person or organization (referred to below as vendor) with whom you agreed under a "written contract" to provide insurance, but only with respect to "bodily injury" or "property damage" arising out of "your products" which are distributed or sold in the regular course of the vendor's business, subject to the following additional exclusions: 1. The insurance afforded the vendor does not apply to: a. "Bodily injury" or "property damage" for which the vendor is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the vendor would have in the absence of the contract or agreement; b. Any express warranty unauthorized by you; c. Any physical or chemical change in the product made intentionally by the vendor; d. Repackaging, except when unpacked solely for the purpose of inspection, demonstration, testing, or the substitution of parts under instructions from the manufacturer, and then repackaged in the original container; e. Any failure to make such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products; f. Demonstration, installation, servicing or repair operations, except such operations performed at the vendor's premises in connection with the sale of the product; g. Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or ingredient of any other thing or substance by or for the vendor; or SB146932G (10-19) Page 1 of 7 Copyright, CNA All Rights Reserved. 280 = SB146932G (Ed. 10-19) h. "Bodily injury" or "property damage" arising out of the sole negligence of the vendor for its own acts or omissions or those of its employees or anyone else acting on its behalf. However, this exclusion does not apply to: (1) The exceptions contained in Subparagraphs d. or f.; or (2) Such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products. 2. This insurance does not apply to any insured person or organization, from whom you have acquired such products, or any ingredient, part or container, entering into, accompanying or containing such products. 3. This provision 2. does not apply to any vendor included as an insured by an endorsement issued by us and made a part of this Policy. 4. This provision 2. does not apply if "bodily injury" or "property damage" included within the "products- completed operations hazard" is excluded either by the provisions of the Policy or by endorsement. B. MISCELLANEOUS ADDITIONAL INSUREDS 1. Who Is An Insured is amended to include as an insured any person or organization (called additional insured) described in paragraphs 3.a. through 3.j. below whom you are required to add as an additional insured on this policy under a "written contract." 2. However, subject always to the terms and conditions of this policy, including the limits of insurance, we will not provide the additional insured with: · a. A higher limit of insurance than required by such "written contract;" b. Coverage broader than required by such "written contract" and in no event greater than that described by the applicable paragraph a. through k. below; or c. Coverage for "bodily injury" or "property damage" included within the "products-completed operations hazard." But this paragraph c. does not apply to the extent coverage for such liability is provided by paragraph 3.j. below. Any coverage granted by this endorsement shall apply only to the extent permitted by law. 3. Only the following persons or organizations can qualify as additional insureds under this endorsement: a. Controlling Interest Any persons or organizations with a controlling interest in you but only with respect to their liability arising out of: (1) such person or organization's financial control of you; or (2) Premises such person or organization owns, maintains or controls while you lease or occupy these premises; provided that the coverage granted to such additional insureds does not apply to structural alterations, new construction or demolition operations performed by or for such additional insured. b. Co-owner of Insured Premises A co-owner of a premises co-owned by you and covered under this insurance but only with respect to the co-owners liability for "bodily injury," "property damage" or "personal and advertising injury" as co- owner of such premises. c. Granter of Franchise Any person or organization that has granted a franchise to you, but only with respect to such person or organization's liability for "bodily injury,'' "property damage,'' or "personal and advertising injury" as granter of a franchise to you. SB146932G (10-19) Page 2 of? Copyright, CNA All Rights Reserved. 281 d. Lessor of Equipment SB146932G (Ed. 10-19) Any person or organization from whom you lease equipment, but only with respect to liability for "bodily injury,'' "property damage" or "personal and advertising injury" caused in whole or in part by your maintenance, operation or use of such equipment, provided that the "occurrence" giving rise to such "bodily injury" or "property damage" or the offense giving rise to such "personal and advertising injury" takes place prior to the termination of such lease. e. Lessor of Land Any person or organization from whom you lease land, but only with respect to liability for "bodily injury,'' "property damage" or "personal and advertising injury" arising out of the ownership, maintenance or use of that specific part of the land leased to you, provided that the "occurrence" giving rise to such "bodily injury" or "property damage" or the offense giving rise to such "personal and advertising injury,'' takes place prior to the termination of such lease. The insurance hereby afforded to the additional insured does not apply to structural alterations, new construction or demolition operations performed by, on behalf of or for such additional insured. f. Lessor of Premises An owner or lessor of premises leased to you, or such owner or lessor's real estate manager, but only with respect to liability for "bodily injury,'' "property damage" or "personal and advertising injury" arising out of the ownership, maintenance or use of such part of the premises leased to you, and provided that the "occurrence" giving rise to such "bodily injury" or "property damage" or the offense giving rise to such "personal and advertising injury,'' takes place prior to the termination of such lease. The insurance hereby afforded to the additional insured does not apply to structural alterations, new construction or demolition operations performed by, on behalf of or for such additional insured. g. Mortgagee, Assignee or Receiver A mortgagee, assignee or receiver of premises but only with respect to such mortgagee, assignee, or receiver's liability for "bodily injury,'' "property damage" or "personal and advertising injury" arising out of the ownership, maintenance, or use of a premises by you. This insurance does not apply to structural alterations, new construction or demolition operations performed by, on behalf of or for such additional insured. h. State or Political Subdivisions A state or government agency or subdivision or political subdivision that has issued a permit or authorization, but only with respect to such government agency or subdivision or political subdivision's liability for "bodily injury,'' "property damage" or "personal and advertising injury" arising out of: (1) The following hazards in connection with premises you own, rent, or control and to which this insurance applies: (a) The existence, maintenance, repair, construction, erection, or removal of advertising signs, awnings, canopies, cellar entrances, coal holes, driveways, manholes, marquees, hoistaway openings, sidewalk vaults, street banners, or decorations and similar exposures; or (b) The construction, erection, or removal of elevators; or (c) The ownership, maintenance or use of any elevators covered by this insurance; or (2) The permitted or authorized operations performed by you or on your behalf. But the coverage granted by this paragraph does not apply to: (a) "Bodily injury", "property damage" or "personal and advertising injury" arising out of operations performed for the state or government agency or subdivision or political subdivision; or (b) "Bodily injury" or "property damage" included within the "products-completed operations hazard.11 With respect to this provision's requirement that additional insured status must be requested under a "written contract," we will treat as a "written contract" any governmental permit that requires you to add the governmental entity as an additional insured. SB146932G (10-19) Page 3 of 7 Copyright, CNA All Rights Reserved. 282 = = i. Trade Show Event Lessor SB146932G (Ed. 10-19) With respect to your participation in a trade show event as an exhibitor, presenter or displayer, any person or organization whom you are required to include as an additional insured, but only with respect to such person or organization's liability for "bodily injury," "property damage," or "personal and advertising injury" caused by: a. Your acts or omissions; or b. Acts or omissions of those acting on your behalf; in the performance of your ongoing operations at the trade show premises during the trade show event. j. Other Person or Organization Any person or organization who is not an additional insured under paragraphs a. through i. above. Such additional insured is an insured solely for "bodily injury," "property damage" or "personal and advertising injury" for which such additional insured is liable because of your acts or omissions. The coverage granted by this paragraph does not apply to any person or organization: (1) For "bodily injury," "property damage," or "personal and advertising injury" arising out of the rendering or failure to render any professional services; (2) For "bodily injury" or "property damage" included in the "products-completed operations hazard." But this provision (2) does not apply to such "bodily injury" or "property damage" if: (a) It is entirely due to your negligence and specifically results from your work for the additional insured which is the subject to the "written contract"; and (b) The "written contract" requires you to make the person or organization an additional insured for such 11 bodily injury 11 or 11 property damage 11 ; or (3) Who is afforded additional insured coverage under another endorsement attached to this policy. C. ADDITIONAL PROVISIONS PERTINENT TO ADDITIONAL INSURED COVERAGE 1. With respect only to additional insured coverage provided under paragraphs A. and 8. above: a. The BUSINESSOWNERS COMMON POLICY CONDITIONS are amended to add the following to the Condition entitled Other Insurance: This insurance is excess of all other insurance available to an additional insured whether primary, excess, contingent or on any other basis. However, if a "written contract" requires that this insurance be either primary or primary and noncontributing, then this insurance will be primary and non-contributory relative solely to insurance on which the additional insured is a named insured. b. Under Liability and Medical Expense Definitions, the following definition is added: "Written contract" means a written contract or agreement that requires you to make a person or organization an additional insured on this policy, provided the contract or agreement: (1) Is currently in effect or becomes effective during the term of this policy; and (2) Was executed prior to: (a) The "bodily injury" or "property damage;" or (b) The offense that caused the "personal and advertising injury"; for which the additional insured seeks coverage. 2. With respect to any additional insured added by this endorsement or by any other endorsement attached to this Coverage Part, the section entitled Who Is An Insured is amended to make the following natural persons insureds. If the additional insured is: a. An individual, then his or her spouse is an insured; SB146932G (10-19) Page 4 of 7 Copyright, CNA All Rigt1ts Reserved. 283 b. A partnership or joint venture, then its partners, members and their spouses are insureds; c. A limited liability company, then its members and managers are insureds; SB146932G (Ed. 10-19) d. An organization other than a partnership, joint venture or limited liability company, then its executive officers, directors and shareholders are insureds; or e. Any type of entity, then its employees are insureds; but only with respect to locations and operations covered by the additional insured endorsement's provisions, and only with respect to their respective roles within their organizations. Furthermore, employees of additional insureds are not insureds with respect to liability arising out of: (1) "Bodily injury" or "personal and advertising injury" to any fellow employee or to any natural person listed in paragraphs a. through d. above; (2) "Property damage" to property owned, occupied or used by their employer or by any fellow employee; or (3) Providing or failing to provide professional health care seivices. II. LIABILITY EXTENSION COVERAGES It is understood and agreed that this endorsement amends the Businessowners Liability Coverage Form. If any other endorsement attached to this policy amends any provision also amended by this endorsement, then that other endorsement controls with respect to such provision, and the changes made by this endorsement to such provision do not apply. A. Bodily injury -Expanded Definition Under Liability and Medical Expenses Definitions, the definition of "Bodily injury" is deleted and replaced by the following: "Bodily injury" means physical injury, sickness or disease sustained by a person, including death, humiliation, shock, mental anguish or mental injury by that person at any time which results as a consequence of the physical injury, sickness or disease. B. Broad Knowledge of Occurrence Under Businessowners Liability Conditions, the Condition entitled Duties In The Event of Occurrence, Offense, Claim or Suit is amended to add the following: Paragraphs a. and b. above apply to you or to any additional insured only when such "occurrence," offense, claim or 11 suit1 1 is known to: (1) You or any additional insured that is an individual; (2) Any partner, if you or an additional insured is a partnership; (3) Any manager, if you or an additional insured is a limited liability company; (4) Any "executive officer" or insurance manager, if you or an additional insured is a corporation; (5) Any trustee, if you or an additional insured is a trust; or (6) Any elected or appointed official, if you or an additional insured is a political subdivision or public entity. This paragraph applies separately to you and any additional insured. C. Estates, Legal Representatives and Spouses The estates, heirs, legal representatives and spouses of any natural person insured shall also be insured under this policy; provided, however, coverage is afforded to such estates, heirs, legal representatives and spouses only for claims arising solely out of their capacity as such and, in the case of a spouse, where such claim seeks damages from marital common property, jointly held property, or property transferred from such natural person insured to such spouse. No coverage is provided for any act, error or omission of an estate, heir, legal representative or spouse outside the scope of such person's capacity as such, provided however that the spouse of a natural person Named Insured and the spouses of members or partners of joint venture or partnership Named Insureds are insureds with respect to such spouses' acts, errors or omissions in the conduct of the Named lnsured's business. SB146932G (10-19) Page 5 of7 Copyright, CNA All Rights ReseNed. 284 = = ....... --= = = D. Fellow Employee First Aid Coverage In the section entitled Who Is An Insured, paragraph 2.a.1. is amended to add the following: SB146932G (Ed. 10-19) The limitations described in subparagraphs 2.a.1.(a), (b) and (c) do not apply to your "employees" for "bodily injury" that results from providing cardiopulmonary resuscitation or other first aid services to a co-"employee" or "volunteer worker" that becomes necessary while your "employee" is peliorming duties in the conduct of your business. Your "employees" are hereby insureds for such services. But the insured status conferred by this provision does not apply to "employees" whose duties in your business are to provide professional health care services or health examinations. E. Legal Liability-Damage To Premises 1. Under B. Exclusions, 1. Applicable to Business Liability Coverage, Exclusion k. Damage To Property, is replaced by the following: k. Damage To Property "Property damage" to: 1. Property you own, rent or occupy, including any costs or expenses incurred by you, or any other person, organization or entity, for repair, replacement, enhancement, restoration or maintenance of such property for any reason, including prevention of injury to a person or damage to another's property; 2. Premises you sell, give away or abandon, if the "property damage" arises out of any part of those premises; 3. Property loaned to you; 4. Personal property in the care, custody or control of the insured; 5. That particular part of any real property on which you or any contractors or subcontractors working directly or indirectly in your behalf are peliorming operations, if the "property damage" arises out of those operations; or 6. That particular part of any property that must be restored, repaired or replaced because "your work" was incorrectly peliormed on it. Paragraph 2 of this exclusion does not apply if the premises are "your work" and were never occupied, rented or held for rental by you. Paragraphs 1, 3, and 4, of this exclusion do not apply to "property damage" (other than damage by fire or explosion) to premises: (1) rented to you: (2) temporarily occupied by you with the permission of the owner, or (3) to the contents of premises rented to you for a period of 7 or fewer consecutive days. A separate limit of insurance applies to Damage To Premises Rented To You as described in Section D - Liability and Medical Expenses Limits of Insurance. Paragraphs 3, 4, 5, and 6 of this exclusion do not apply to liability assumed under a sidetrack agreement. Paragraph 6 of this exclusion does not apply to "property damage" included in the "products- completed operations hazard." 2. Under B. Exclusions, 1. Applicable to Business Liability Coverage, the following paragraph is added, and replaces the similar paragraph, if any, beneath paragraph (14) of the exclusion entitled Personal and Advertising Injury: Exclusions c, d, e, f, g, h, i, k, I, m, n, and o, do not apply to damage by fire to premises while rented to you or temporarily occupied by you with permission of the owner or to the contents of premises rented to you for a period of 7 or fewer consecutive days. A separate limit of insurance applies to this coverage as described in Section D. Liability And Medical Expenses Limits Of Insurance. SB146932G (10-19) Page 6 of 7 Copyright, CNA All Rights Reserved. 285 SB146932G (Ed. 10-19) 3. The first Paragraph under item 5. Damage To Premises Rented To You Limit of the section entitled Liability And Medical Expenses Limits Of Insurance is replaced by the following: The most we will pay under Business Liability for damages because of "property damage" to any one premises, while rented to you or temporarily occupied by you with the permission of the owner, including contents of such premises rented to you for a period of 7 or fewer consecutive days, is the Damage to Premises Rented to You Limit. The Damage to Premises Rented to You Limit is the greater of: a. $1,000,000; or b. The Damage to Premises Rented to You Limit shown in the Declarations. F. Personal and Advertising Injury-Discrimination or Humiliation 1. Under Liability and Medical Expenses Definitions, the definition of "personal and advertising injury" is amended to add the following: h. Discrimination or humiliation that results in injury to the feelings or reputation of a natural person, but only if such discrimination or humiliation is: (1) Not done intentionally by or at the direction of: (a) The insured; or (b) Any "executive officer," director, stockholder, partner, member or manager (if you are a limited liability company) of the insured; and (2) Not directly or indirectly related to the employment, prospective employment, past employment or termination of employment of any person or person by any insured. 2. Under B. Exclusions, 1. Applicable to Business Liability Coverage, the exclusion entitled Personal and Advertising Injury is amended to add the following additional exclusions: (15) Discrimination Relating to Room, Dwelling or Premises Caused by discrimination directly or indirectly related to the sale, rental, lease or sub-lease or prospective sale, rental, lease or sub-lease of any room, dwelling or premises by or at the direction of any insured. (16)Employment Related Discrimination Discrimination or humiliation directly or indirectly related to the employment, prospective employment, past employment or termination of employment of any person by any insured. (17) Fines or Penalties Fines or penalties levied or imposed by a governmental entity because of discrimination. 3. This provision (Personal and Advertising Injury -Discrimination or Humiliation) does not apply if Personal and Advertising Injury Liability is excluded either by the provisions of the Policy or by endorsement. G. Personal and Advertising Injury -Broadened Eviction Under Liability and Medical Expenses Definitions, the definition of "Personal and advertising injury" is amended to delete Paragraph c. and replace it with the following: c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room dwelling or premises that a person or organization occupies committed by or on behalf of its owner, landlord or lessor. H. Waiver of Subrogation -Blanket We waive any right of recovery we may have against: a. Any person or organization with whom you have a written contract that requires such a waiver. All other terms and conditions of the Policy remain unchanged. SB146932G (10-19) Page 7 of 7 Copyright, CNA All Rights Reserved. 286 ~ SB-300000-D (Ed. 04/14) BUSINESSOWNERS LIABILITY COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we," "us" and "our" refer to the company providing the insurance. The word "insured" means any person or organization qualifying as such under Section C. -Who Is An Insured. Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION F -LIABILITY DEFINITIONS. A. Coverages 1. Business Liability (Bodily Injury, Property Damage, Personal and Advertising Injury) a. We will pay those sums that the insured becomes legally obligated to pay as damages because of "bodily injury," "property damage" or "personal and advertising injury" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury," "property damage" or "personal and advertising injury," to which this insurance does not apply. We may at our discretion, investigate any "occurrence 11 or any offense and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in Section D - Liability And Medical Expenses Limits Of Insurance; and (2) Our right and duty to defend ends when we have used up the applicable limit of insurance in the payment of judgments or settlements or medical expenses to which this insurance applies. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Coverage Ex1ension -Supplementary Payments. b. This insurance applies: (1) To "bodily injury" and "property damage" only if: (a) The "bodily injury" or "property damage" is caused by an "occurrence" that takes place in the 11coverage territory"; (b) The "bodily injury" or "property damage" occurs during the policy period; and (c) Prior to the policy period, no insured listed under Paragraph C.1. Who Is An Insured and no "employee" authorized by you to give or receive notice of an "occurrence 11 or clain1, knew that the "bodily injury" or "property damage" had occurred, in whole or in part. If such a listed insured or authorized "employee" knew, prior to the policy period, that the "bodily injury" or "property damage" occurred, then any continuation, change or resumption of such "bodily injury" or "property damage" during or after the policy period will be deemed to have been known before the policy period. (2) To "personal and advertising injury" caused by an offense arising out of your business, but only if the offense was committed in the "coverage territory" during the policy period. c. "Bodily injury" or "property damage" which occurs during the policy period and was not, prior to the policy period, known to have occurred by any insured listed under Section C.1. Who Is An Insured or any "employee" authorized by you to give or receive notice of an "occurrence 11 or claim, includes any continuation, change or resumption of "bodily injury" or "property damage" after the end of the policy period. d. "Bodily injury" or "property damage" will be deemed to have been known to have occurred at the earliest time when any insured listed under Section C.1. Who Is An Insured or any "employee" authorized by you to give or receive notice of an 11 occurrence" or claim: (1) Reports all, or any part, of the "bodily injury" or "property damage" to us or any other insurer; (2) Receives a written or verbal demand or claim for damages because of the "bodily injury" or "property damage"; or SB-300000-D (Ed. 04/14) Includes copyrighted material of Insurance Services Office, Inc., v.iith its permission Page 1 of 16 287 (3) Becomes aware by any other means that "bodily injury" or "property damage" has occurred or has begun to occur. e. Damages because of "bodily injury" include damages claimed by any person or organization for care, loss of services or death resulting at any time from the "bodily injury." f. Coverage Extension -Supplementary Payments (1) In addition to the Limit of Insurance of Liability we will pay, with respect to any claim we investigate or settle, or any "suit" against an insured we defend: (a) All expenses we incur. (b) Up to $1,000 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which Business Liability Coverage for "bodily injury" applies. We do not have to furnish these bonds. (c) The cost of bonds to release attachments, but only for bond amounts within our Limit of Insurance. We do not have to furnish these bonds. (d) All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit," including actual loss of earnings up to $250 a day because of time off from work. (e) All court costs taxed against the insured in the "suit." However, these payments do not include attorneys' fees or attorney expenses taxed against the insured. (f) Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the Limit·of Insurance, we will not pay any prejudgment interest based on that period of time after the offer. (g) All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, offered to pay, or deposited in court the part of the judgment that is within our Limit of Insurance. These payments will not reduce the Limits of Insurance. SB-300000-D (Ed. 04/14) (2) If we defend an insured against a "suit" and an indemnitee of the insured is also named as a party to the "suit," we will defend that indemnitee if all of the following conditions are met: (a) The "suit" against the indemnitee seeks damages for which the insured has assumed the liability of the indemnitee in a contract or agreement that is an "insured contract''; (b) This insurance applies to such liability assumed by the insured; (c) The obligation to defend, or the cost of the defense of, that indemnitee, has also been assumed by the insured in the same "insured contract"; (d) The allegations in the "suit" and the information we know about the 11 occurrence 11 are such that no conflict appears to exist between the interests of the insured and the interests of the indemnitee: (e) The indemnitee and the insured ask us to conduct and control the defense of that indemnitee against such "suit" and agree that we can assign the same counsel to defend the insured and the indemnitee; and (f) The indemnitee: (i) Agrees in writing to: i. Cooperate with us in the investigation, settlement or defense of the "suit"; ii. Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the "suit"; iii. Notify any other insurer whose coverage is available to the indemnitee; and iv. Cooperate with us with respect to coordinating other applicable insurance available to the indemnitee; and (ii) Provides us with written authorization to: SB-300000-D (Ed. 04/14) Includes copyrighted material of Insurance Services Office, Inc., with its permission Page 2of16 288 = = = i. Obtain records and other information related to the 11 suit 11 ; and ii. Conduct and control the defense of the indemnitee in such "suit." (3) So long as the above conditions are met, attorneys' fees incurred by us in the defense of that indemnitee, necessary litigation expenses incurred by us and necessary litigation expenses incurred by the indemnitee at our request will be paid as Supplementary Payments. Notwithstanding the provisions of Paragraph B.1.b.(2) Exclusions in Section B -EXCLUSIONS, such payments will not be deemed to be damages for "bodily injury" and "property damage" and will not reduce the limits of insurance. Our obligation to defend an insured's indemnitee and to pay for attorneys' fees and necessary litigation expenses as Supplementary Payments ends when: (a) We have used up the applicable limit of insurance in the payment of judgments or settlements; or (b) The conditions set forth above, or the terms of the agreement described in f. above are no longer met. 2. Medical Expenses a. We will pay medical expenses as described below for "bodily injury" caused by an accident: (1) On premises you own or rent; (2) On ways next to premises you own or rent; or (3) Because of your operations; provided that: (a) The accident takes place in the "coverage territory" and during the policy period; (b) The expenses are incurred and reported to us within one year of the date of the accident; and (c) The injured person submits to examination, at our expense, by physicians of our choice as often as we reasonably require. b. We will make these payments regardless of fault. These payments will not exceed the SB-300000-D (Ed. 04/14) applicable Limit of Insurance. We will pay reasonable expenses for: (1) First aid administered at the time of an accident; (2) Necessary medical, surgical, dental services, including devices; and x-ray and prosthetic (3) Necessary ambulance, hospital, professional nursing and funeral services. B. Exclusions 1. Applicable To Business Liability Coverage This insurance does not apply to: a. Expected Or Intended Injury "Bodily injury" or "property damage" expected or intended from the standpoint of the insured. This exclusion does not apply to "bodily injury" resulting from the use of reasonable force to protect persons or property. b. Contractual Liability "Bodily injury" or "property damage" for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages: (1) That the insured would have in the absence of the contract or agreement; or (2) Assumed in a contract or agreement that is an "insured contract," provided the "bodily injury" or "property damage" occurs subsequent to the execution of the contract or agreement. Solely for the purposes of liability assumed in an "insured contract," reasonable attorney fees and necessary litigation expenses incurred by or for a party other than an insured are deemed to be damages because of "bodily injury" or "property damage," provided: (a) Liability to such party for, or for the cost of, that party's defense has also been assumed in the same "insured contract"; and (b) Such attorney fees and litigation expenses are for defense of that party against a civil or alternative dispute resolution proceeding in which damages to which this insurance applies are alleged. c. Liquor Liability "Bodily injury" or "property damage" for which any insured may be held liable by reason of: SB-300000-D (Ed. 04/14) Includes copyrighted material of Insurance Services Office, Inc., with its permission Page 3 of 16 289 (1) Causing or contributing to the intoxication of any person; (2) The furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or (3) Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages. This exclusion applies even if the claims allege negligence or other wrongdoing in: (a) The supervision, hiring, employment, training or monitoring of others by an insured; or (b) Providing or failing to provide transportation with respect to any person that may be under the influence of alcohol This exclusion applies only if you are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. d. Workers' Compensation And Similar Laws Any obligation of the insured under a workers' compensation, disability benefits or unemployment compensation law or any similar law. e. Employer's Liability "Bodily Injury" to: (1) An "employee" of the insured arising out of and in the course of: (a) Employment by the insured; or (b) Performing duties related to the conduct of the insured's business; or (2) The spouse, child, parent, brother or sister of that "employee" as a consequence of (1) above. This exclusion applies: (1) Whether the insured may be liable as an employer or in any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. This exclusion does not apply to liability assumed by the insured under an "insured contract.11 f. Pollution (1) "Bodily injury" or "property damage" arising out of the actual, alleged or threatened discharge, dispersal, seepage, SB-300000-D (Ed. 04114) migration, release or escape of "pollutants": (a) At or from any premises, site or location which is or was at any time owned or occupied by, or rented or loaned to, any insured. However, this subparagraph does not apply to: (i) "Bodily injury" if sustained within a building and caused by smoke, fumes, vapor or soot from equipment used to heat, cool or dehumidify the building or equipment that is used to heat water for personal use by the buildings occupants or their guests; (ii) "Bodily injury" or "property damage" for which you may be held liable, if you are a contractor and the owner or lessee of such premises, site or location has been added to your policy as an additional insured with respect to your ongoing operations performed for that additional insured at that premises, site or location and such premises, site or location is not and never was owned or occupied by, or rented or loaned to, any insured, other than that additional insured; or (iii) "Bodily injury" or "property damage" arising out of heat, smoke or fumes from a "hostile fire 11 ; (b) At or from any premises, site or location which is or was at any time used by or for any insured or others for the handling, storage, disposal, processing or treatment of waste; (c) Which are or were at any time transported, handled, stored, treated, disposed of, or processed as waste by or for: (i) Any insured; or (ii) Any person or organization for whom you may be legally responsible; or (d) At or from any premises, site or location on which any insured or any contractors or subcontractors working directly or indirectly on any insured's behalf are performing operations if the "pollutants" are brought on or to the premises, site or location in SB-300000-D (Ed. 04114) Includes copyrighted n1aterial of Insurance Services Office, Inc., with its pennission Page 4 of 16 290 --= - connection with such operations by such insured, contractor or subcontractor. However, this subparagraph does not apply to: (i) "Bodily injury" or "property damage" arising out of the escape of fuels, lubricants or other operating fluids which are needed to perform the normal electrical, hydraulic or mechanical functions necessary for the operation of "mobile equipment" or its parts, if such fuels, lubricants or other operating fluids escape from a vehicle part designed to hold, store or receive them. This exception does not apply if the "bodily injury" or "property damage" arises out of the intentional discharge, dispersal or release of the fuels, lubricants or other operating fluids, or if such fuels, lubricants or other operating fluids are brought on or to the premises, site or location with the intent that they be discharged, dispersed or released as part of the operations being performed by such insured, contractor or subcontractor; (ii) "Bodily injury" or "property damage" sustained within a building and caused by the release of gases, fumes or vapors from materials brought into that building in connection with operations being performed by you or on your behalf by a contractor or subcontractor; or (iii) "Bodily injury" or "property damage" arising out of heat, smoke or fumes from a "hostile fire.11 (e) At or from any premises, site or location on which any insured or any contractors or subcontractors working directly or indirectly on any insured's behalf are performing operations if the operations are to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants." (2) Any loss, cost or expense arising out of any: SB-300000-0 (Ed. 04114) a. Request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants 11 ; or b. Claim or "suit" by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of, "pollutants." However, this paragraph does not apply to liability for damages because of "property damage" that the insured would have in the absence of such request, demand, order or statutory or regulatory requirement or such claim or "suit" by or on behalf of a governmental authority. g. Aircraft, Auto Or Watercraft "Bodily injury" or "property damage" arising out of the ownership, maintenance, use or entrustment to others of any aircraft, "auto" or watercraft owned or operated by or rented or loaned to any insured. Use includes operation and "loading or unloading." This exclusion applies even if the claims allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by an insured, if the "occurrence" which caused the "bodily injury" or "property damage" involved the ownership, maintenance, use or entrustment to others of any aircraft, 11auto 11 or watercraft that is owned or operated by or rented or loaned to any insured. This exclusion does not apply to: (1) An aircraft that is: (a) Hired, chartered, or loaned with a paid crew; but (b) Not owned by any insured; (2) A watercraft while ashore on premises you own or rent; (3) A watercraft you do not own that is: (a) Less than 51 feet long; and (b) Not being used to carry persons or property for a charge; (4) Parking an "auto" on, or on the ways next to, premises you own or rent, provided SB-300000-0 (Ed. 04114) Includes copyrighted material of Insurance Services Office, Inc., with its pennission Page 5of16 291 the "auto" is not owned by or rented or loaned lo you or the insured; (5) Liability assumed under any "insured contract" for the ownership, maintenance or use of aircraft or watercraft; or (6) "Bodily injury" or "property damage" arising out of the operation of any of the following equipment: (a) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (b) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well seNicing equipment. h. Mobile Equipment "Bodily injury" or "property damage" arising out of: (1) The transportation of "mobile equipment" by an "auto" owned or operated by or rented or loaned lo any insured; or (2) The use of "mobile equipment" in, or while in practice for, or while being prepared for, any prearranged racing, speed, demolition or stunting activity. i. War "Bodily injury" or "property damage" due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. This exclusion applies only to liability assumed under a contract or agreement. j. Professional Services "Bodily injury," "property damage," "personal and advertising injury" caused by the rendering or failure to render any professional seNice. This includes but is not limited to: (1) Legal, accounting or advertising seivices; (2) Preparing, approving, or failing to prepare or approve maps, drawings, opinions, reports, surveys, change orders, designs or specifications; (3) Supeivisory, inspection or engineering seivices; (4) Medical, surgical, dental, x-ray or nursing seNices treatment, advice or instruction; (5) Any health or therapeutic seNice treatment, advice or instruction; SB-300000-D (Ed, 04/14) (6) Any seNice, treatment, advice or instruction for the purpose of appearance or skin enhancement, hair removal or replacement or personal grooming; (7) Optometry or optical or hearing aid seNices including the prescribing, preparation, fitting, demonstration or distribution of ophthalmic lenses and similar products or hearing aid devices; (8) Body piercing seNices; (9) SeNices in the practice of pharmacy; (10) Veterinary medicine seNices; (11)Mortician seNices; and (12)SeNices rendered in connection with the creation and/or development, modification, or repair of "software," including, but not limited to design, specifications, system or 11software" configuration and consultation. This exclusion applies even if the claims allege negligence or other wrongdoing in the supeNision, hiring, employment, training or monitoring of others by an insured, if the "occurrence" which caused the "bodily injury" or "property damage," or the offense which caused the "personal and advertising injury," involved the rendering or failure to render any professional seNice. k. Damage To Property "Property damage" to: (1) Property you own, rent or occupy, including any costs or expenses incurred by you, or any other person, organization or entity, for repair, replacement, enhancement, restoration or maintenance of such property for any reason, including prevention of injury to a person or damage to another's property; (2) Premises you sell, give away or abandon, if the "property damage" arises out of any part of those premises; (3) Property loaned to you; (4) Personal property in the care, custody or control of the insured; (5) That particular part of real property on which you or any contractor or subcontractor working directly or indirectly on your behalf is performing operations, if the "property damage" arises out of those operations; or SB-300000-D (Ed. 04/14) Includes copyrighted material of Insurance Services Office, Inc., with its permission Page 6of16 292 iiiiiii = = (6) That particular part of any property that must be restored, repaired or replaced because "your work" was incorrectly performed on it. Paragraphs (1), (3) and (4) of this exclusion do not apply to "property damage" (other than damage by fire or explosion) to premises, including the contents of such premises, rented to you for a period of 7 or fewer consecutive days. A separate limit of insurance applies to Damage To Premises Rented To You as described in Paragraph D. Liability And Medical Expenses Limit Of Insurance. Paragraph (2) of this exclusion does not apply if the premises are "your work" and were never occupied, rented or held for rental by you. Paragraphs (3), (4), (5) and (6) of this exclusion do not apply to liability assumed under a sidetrack agreement. Paragraph (6) of this exclusion does not apply to "property damage" included in the "products -completed operations hazard." I. Damage To Your Product "Property damage" to "your product" arising out of it or any part of it. m. Damage To Your Work "Property damage" to "your work" arising out of it or any part of it and included in the "products -completed operations hazard." This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor. n. Damage To Impaired Property Or Property Not Physically Injured "Property damage" to "impaired property" or property that has not been physically injured, arising out of: (1) A defect, deficiency, inadequacy or dangerous condition in "your product" or 11your work"; or (2) A delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms. This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to "your product" or "your work" after it has been put to its intended use. SB-300000-D (Ed. 04/14) o. Recall Of Products, Work Or Impaired Property Damages claimed for any loss, cost or expense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of: (1) "Your product"; (2) "Your work"; or (3) "Impaired property"; if such product, work or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it. p. Personal And Advertising Injury "Personal and advertising injury": (1) Caused by or at the direction of the insured with the knowledge that the act would violate the rights of another and would infiict "personal and advertising injury"; (2) Arising out of oral or written publication of material, if done by or at the direction of the insured with knowledge of its falsity; (3) Arising out of oral or written publication of material whose first publication took place before the beginning of the policy period; (4) Arising out of a criminal act committed by or at the direction of any insured; (5) For which the insured has assumed liability in a contract or agreement. This exclusion does not apply to liability for damages that the insured would have in the absence of the contract or agreement; (6) Arising out of a breach of contract, except an implied contract to use another's advertising idea in your "advertisement"; (7) Arising out of the failure of goods, products or services to conform with any statement of quality or performance made in your 11 advertisement"; (8) Arising out of the wrong description of the price of goods, products or services stated in your "advertisement"; (9) Committed by an insured whose business is: (a) Advertising, broadcasting, publishing or telecasting; SB-300000-D (Ed. 04/14) Includes copyrighted material of Insurance Services Office, Inc., \.\lith its pennission Page 7of16 293 (b) Designing or determining content of web-sites for others; or (c) An Internet search, access, content or service provider. However, this exclusion does not apply to Paragraphs 14.a., b. and c. of "personal and advertising injury" under Paragraph F. Liability And Medical Expenses Definitions. For the purposes of this exclusion, the placing of frames, borders or links, or advertising, for you or others anywhere on the Internet, by itself, is not considered the business of advertising, broadcasting, publishing or telecasting, (10)Arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants" at any time. (11) With respect to any loss, cost or expense arising out of any: (a) Request, demand or order that any insured or others test for, monitor, clean-up, remove, contain, treat, detoxify or neutralize or in any way respond to, or assess the effects of, "pollutants"; or (b) Claim or "suit" by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing or in any way responding to, or assessing the effects of, "pollutants." (12)Arising out of an electronic chatroom or bulletin board the insured hosts, owns or over which the insured exercises control. (13)Arising out of the infringement of copyright, patent, trademark, trade secret or other intellectual property rights. However, this exclusion does not apply to infringement, in your "advertisement,'' of copyright, trade dress or slogan. (14)Arising out of the unauthorized use of another's name or product in your e-mail address, domain name or metatags, or any other similar tactics to mislead another's potential customers. Exclusions c., d., e., f., g., h., i., k., I., m., n. and o. in Section 11 -Liability do not apply to damage by fire or explosion to premises while rented to you, or temporarily occupied by you with permission of the owner. A separate SB-300000-D (Ed. 04/14) Damage To Premises Rented To You Limit of Insurance applies to this coverage as described in Paragraph D. Liability And Medical Expenses Limits of Insurance. q. Electronic Data Damages arising out of the loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate electronic data. As used in this exclusion, electronic data means information, facts or programs stored as or on, created or used on, or transmitted to or from computer software, including systems and applications software, hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other media which are used with electronically controlled equipment 2. Applicable To Medical Expenses Coverage We will not pay expenses for "bodily injury": a. To any insured, except "volunteer workers." b. To a person hired to do work for or on behalf of any insured or a tenant of any insured. c. To a person injured on that part of premises you own or rent that the person normally occupies, d. To a person, whether or not an "employee" of any insured, if benefits for the "bodily injury" are payable or must be provided under a workers' compensation or disability benefits law or a similar law. e. To a person injured while taking part in athletics. f. Included within the "products -completed operations hazard." g. Excluded under Business Liability Coverage. h. Due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. 3. Applicable To Both Business Liability Coverage And Medical Expenses Coverage -Nuclear Energy Liability Exclusion This insurance does not apply: a. Under Business Liability Coverage, to "bodily injury" or "property damage": (1) With respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by the Nuclear Energy Liability Insurance Association, Mutual Atomic Energy SB-300000-D (Ed. 04/14) Includes copyrigh!ed n1aterial of Insurance Services Office, Inc., with its permission Page 8of16 294 = = = = ...... = --= = Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or (2) Resulting from the "hazardous properties" of "nuclear material" and with respect to which: (a) Any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof; or (b) The insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization. b. Under Medical Expenses Coverage, to expenses incurred with respect to "bodily injury" resulting from the "hazardous properties" of "nuclear material" and arising out of the operation of a "nuclear facility" by any person or organization. c. Under Business Liability Coverage, to "bodily injury" or "property damage" resulting from the "hazardous properties" of the nuclear material"; if: (1) The "nuclear material": (a) Is at any "nuclear facility" owned by, or operated by or on behalf of, an insured; or {b) Has been discharged or dispersed therefrom; (2) The "nuclear material" is contained in "spent fuel" or "waste" at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an insured; or (3) The "bodily injury" or "property damage" arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any "nuclear facility"; but if such facility is located within the United States of America, its territories or possessions or Canada, this Exclusion (3) applies only to "property damage" to such "nuclear facility" and any property thereat. d. As used in this exclusion: SB-300000-D (Ed. 04114) (1) "By-product material" has the meaning given it in the Atomic Energy Act of 1954 or in any law amendatory thereof; (2) "Hazardous properties" include radioactive, toxic or explosive properties; (3) "Nuclear facility" means: (a) Any "nuclear reactor"; (b) Any equipment or device designed or used for: (i) Separating the isotopes of uranium or plutonium; (ii) Processing or utilizing "spent fuel"; or (iii) Handling, processing or packaging "waste"; (c) Any equipment or device used for the processing, fabricating or alloying of "special nuclear material" if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235; (d) Any structure, basin, excavation, premises or place prepared or used for the storage or disposal of "waste"; and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; (4) "Nuclear material" means "source material," "special nuclear material" or "byproduct material"; (5) "Nuclear reactor" means an apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material; (6) "Property damage" includes all forms of radioactive contamination of property. (7) "Source material" has the meaning given it in the Atomic Energy Act of 1954 or in any law amendatory thereof; (8) "Special nuclear material" has the meaning given it in the Atomic Energy Act of 1954 or in any law amendatory thereof; (9) "Spent fuel" means any fuel element or fuel component, solid or liquid, which has SB-300000-D (Ed. 04114) Includes copyrighted 1naterial of Insurance Services Office, Inc., with its pennission Page 9 of 16 295 been used or exposed to radiation in a "nuclear reactor 11 ; (10)"Waste" means any waste material: (a) Containing "by-product material" other than the tailings or wastes produced by the extraction or concentration of uranium or thorium from any one processed primarily for its "source material" content; and (b) Resulting from the operation by any person or organization of any "nuclear facility" included under Paragraph (a) and (b) of the definition of "nuclear facility." C. Who Is An Insured 1. If you are designated in the Declarations as: a. An individual, you and your spouse are insureds, but only with respect to the conduct of a business of which you are the sole owner. b. A partnership or joint venture, you are an insured. Your members, your partners and their spouses are also insureds, but only with respect to the conduct of your business. c. A limited liability company, you are an insured. Your members are also insureds, but only with respect to the conduct of your business. Your managers are insureds, but only with respect to their duties as your managers. d. An organization other than a partnership, joint venture or limited liability company, you are an insured. Your "executive officers" and directors are insureds, but only with respect to their duties as your officers or directors. Your stockholders are also insureds, but only with respect to their liability as stockholders. e. A trust, you are an Insured. Your trustees are also insureds, but only with respect to their duties as trustees. 2. Each of the following is also an insured: a. Your "volunteer workers" only while performing duties related to the conduct of your business, or your "employees," other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these SB-300000-D (Ed. 04/14) "employees" or "volunteer workers" are insureds for: (1) "Bodily injury" or "personal and advertising injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), or to a co-"employee" while in the course of his or her employment or performing duties related to the conduct of your business, or to your other "volunteer workers" while performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co-"employee" as a consequence of Paragraph (a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in Paragraphs (a) or (b); or (d) Arising out of his or her providing or failing to provide professional health care services. (2) "Property damage" to property: (a) Owned, occupied or used by, (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by you, any of your "employees," "volunteer workers," any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). b. Any person (other than your "employee" or "volunteer worker''), or any organization while acting as your real estate manager. c. Any person or organization having proper temporary custody of your property if you die, but only: (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. d. Your legal representative if you die, but only with respect to duties as such. That representative will have all your rights and duties under this policy. SB-300000-D (Ed. 04/14) Includes copyrighted n1aterial of Insurance Services Office, Inc., with its permission Page 10of16 296 = 3. With respect to "mobile equipment" registered in your name under any motor vehicle registration law, any person is an insured while driving such equipment along a public highway with your permission. Any other person or organization responsible for the conduct of such person is also an insured, but only with respect to liability arising out of the operation of the equipment, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with respect to: a. "Bodily injury" to a co-"employee" of the person driving the equipment; or b. "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision. 4. Any organization you newly acquire or form, other than a partnership or joint venture, and over which you maintain ownership of majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 90th day after you acquire or form the organization or the end of the policy period, whichever is earlier; b. Bodily Injury and Property Damage coverage does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the organization; and c. Personal and Advertising Injury coverage does not apply to "personal injury" or "advertising injury" arising out of an offense committed before you acquired or formed the organization. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations. D. Liability And Medical Expenses Limits Of Insurance 1. The Limits of Insurance shown in the Declarations and the rules below fix the most we will pay regardless of the number of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits." 2. The most we will pay for: SB-300000-D (Ed. 04/14) a. Injury or damages under the "products completed operations hazard" arising from all "occurrences" during the policy period is the Products-Completed Operations Aggregate Limit shown in the Declarations. b. All other injury or damages, including medical expenses, arising from all 11occurrences 11 during the policy period is the General Aggregate Limit shown in the Declarations. This General Aggregate Limit applies separately to each of your "locations" owned by or rented to you. "Location" means premises involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway or right-of-way of a railroad. This aggregate Limit does not apply to "property damage" to premises rented to you arising out of fire, lightning or explosion. 3. Subject to item 2. above, the most we will pay for the sum of all damages because of all "bodily injury," "property damage" and medical expenses arising out of any one "occurrence" is the Liability and Medical Expense Limit shown in the Declarations. The most we will pay for all medical expenses because of "bodily injury" sustained by any one person is the Medical Expenses Limit shown in the Declarations. 4. Subject to item 2. above, the most we will pay for the sum of all damages because of all "personal and advertising injury" sustained by any one person or organization is the Personal and Advertising Injury Limit shown in the Declarations. 5. The most we will pay under Business Liability Coverage for damages because of "property damage" to premises rented to you, or in the case of fire, while rented to you or temporarily occupied by you with permission of the owner, is the Damage To Premises Rented To You Limit shown in the Declarations. The Damage to Premises Rented To You Limit applies to all damage proximately caused by the same event, whether such damage results from fire, lightning, or explosion or any combination of the three. If more than one limit of insurance under this policy and any endorsements attached thereto applies to any claim or "suit," the most we will pay under this policy and the endorsements is the single highest limit of liability of all coverages applicable to such claim or "suit." However, this paragraph does not apply to the Medical Expenses limit set forth in paragraph 3. above. SB-300000-D (Ed. 04/14) Includes copyrighted material of Insurance Services Office, Inc., with its permission Page 11 of16 297 The Limits of this policy apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. E. Businessowners Liability Conditions 1. Bankruptcy Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obligations under this policy. 2. Duties In The Event Of Occurrence, Offense, Claim Or Suit a. You must see to it that we are notified as soon as practicable of an "occurrence" or an offense which may result in a claim. To the extent possible, notice should include: (1) How, when and where the "occurrence" or offense took place; (2) The names and addresses of any injured persons and witnesses; and (3) The nature and location of any injury or damage arising out of the "occurrence" or offense. b. If a claim is made or "suit" is brought against any insured, you must: (1) Immediately record the specifics of the claim or "suit" and the date received; and (2) Notify us as soon as practicable. You must see to it that we receive written notice of the claim or "suit" as soon as practicable. c. You and any other involved insured must: (1) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or "suit"; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investigation, or settlement of the claim or defense against the "suit"; and (4) Assist us, upon our request, in the enforcement of any right against any person or organization that may be liable to the insured because of injury or SB-300000-D (Ed. 04/14) damage to which this insurance may also apply. d. No insured will, except at that insured's own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent. 3. Financial Responsibility Laws a. When this policy is certified as proof of financial responsibility for the future under the provisions of any motor vehicle financial responsibility law, the insurance provided by the policy for "bodily injury" liability and "property damage" liability will comply with the provisions of the law to the extent of the coverage and limits of insurance required by that law. b. With respect to "mobile equipment" to which this insurance applies, we will provide any liability, uninsured motorists, underinsured motorists, no-fault or other coverage required by any motor vehicle law. We will provide the required limits for those coverages. 4. Legal Action Against Us No person or organization has a right under this policy: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an insured; or b. To sue us on this policy unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured; but we will not be liable for damages that are not payable under the terms of this policy or that are in excess of the applicable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representative. 5. Separation Of Insureds Except with respect to the Limits of Insurance in this policy, and any rights or duties specifically assigned in this policy to the first Named Insured, this insurance applies: a. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom claim is made or "suit" is brought. SB-300000-D (Ed. 04/14) Includes copyrighted n1aterial of Insurance Services Office, Inc., Vvith its pennission Page 12 of 16 298 = -= 6. Unintentional Failure to Disclose Hazards It is agreed that based on our reliance on your representations as to existing hazards, if unintentionally you should fail to disclose all such hazards at the inception date of your policy, we shall not deny any coverage under this Coverage Form because of such failure. F. Liability And Medical Expenses Definitions 1. "Advertisement" means a notice that is broadcast or published to the general public or specific market segments about your goods, products or services for the purpose of attracting customers or supporters. For the purposes of this definition: a. Notices that are published include material placed on the Internet or on similar electronic means of communication; and b. Regarding web-sites, only that part of a web- site that is about your goods, products or services for the purposes of attracting customers or supporters is considered an advertisement. 2. "Auto" means a land motor vehicle, trailer or semitrailer designed for travel on public roads, including any attached machinery or equipment. But "auto" does not include "mobile equipment." 3. "Bodily injury" means bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time. 4. "Coverage territory" means: a. The United States of America (including its territories and possessions), Puerto Rico and Canada; b. International waters or airspace, but only if the injury or damage occurs in the course of travel or transportation between any places included in Paragraph a. above; or c. All other parts of the world if the injury or damage arises out of: (1) Goods or products made or sold by you in the territory described in Paragraph a. above; (2) The activities of a person whose home is in the territory described in Paragraph a. above, but is away for a short time on your business; or (3) "Personal and advertising injury" offenses that take place through the Internet or similar electronic means of communication; provided the insured's responsibility to pay damages is determined in a "suit" on the SB-300000-D (Ed. 04114) merits in the territory described in Paragraph a. above or in a settlement we agree to. 5. "Employee" includes a "leased worker." "Employee" does not include a "temporary worker." 6. "Executive officer" means a person holding any of the officer positions created by your charter, constitution, by-laws or any other similar governing document. 7. "Hostile fire" means one which becomes uncontrollable or breaks out from where it was intended to be. 8. "Impaired property" means tangible property, other than "your product" or "your work," that cannot be used or is less useful because: a. It incorporates "your product" or "your work" that is known or thought to be defective, deficient, inadequate or dangerous; or b. You have failed to fulfill the terms of a contraqt or agreement; if such property can be restored to use by: (1) The repair, replacement, adjustment or removal of "your product" or "your work"; or (2) Your fulfilling the terms of the contract or agreement. 9. "Insured contract" means: a. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire to premises while rented to you or temporarily occupied by you with permission of the owner is not an "insured contract"; b. A sidetrack agreement; c. Any easement or license agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; d. An obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality; e. An elevator maintenance agreement; f. That part of any other contract or agreement pertaining to your business (including an indemnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another party to pay for "bodily injury" or "property damage" to a third person or organization. Tort liability means a liability that would be SB-300000-D (Ed. 04/14) Includes copyrighted matertal of Insurance Services Office, Inc., with its pennission Page 13of16 299 imposed by law in the absence of any contract or agreement. Paragraph f. does not include that part of any contract or agreement: (1) That indemnifies a railroad for "bodily injury" or "property damage" arising out of construction or demolition operations, within 50 feet of any railroad property and affecting any railroad bridge or trestle, tracks, road beds, tunnel, underpass or crossing; (2) That indemnifies an architect, engineer or surveyor for injury or damage arising out of: (a) Preparing, approving or failing to prepare or approve maps, drawings, opinions, reports, suiveys, change orders, designs or specifications; or (b) Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; or (c) Under which the insured, if an architect, engineer or suiveyor, assumes liability for an injury or damage arising out of the insured's rendering or failure to render professional seivices, including those listed in Paragraph (2) above and supeivisory, inspection or engineering seivices. 10. "Leased worker" means a person leased to you by a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties related to the conduct of your business. "Leased worker" does not include a "temporary worker." 11. "Loading or unloading" means the handling of property: a. After it is moved from the place where it is accepted for movement into or onto an aircraft, watercraft or nauto 11 ; b. While it is in or on an aircraft, watercraft or "auto"; or c. While it is being moved from an aircraft, watercraft or "auto" to the place where it is finally delivered; but "loading or unloading" does not include the movement of property by means of a mechanical device, other than a hand truck, that is not attached to the aircraft, watercraft or "auto." SB-300000-D (Ed. 04/14) 12. "Mobile equipment" means any of the following types of land vehicles, including any attached machinery or equipment: a. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; b. Vehicles maintained for use solely on or next to premises you own or rent; c. Vehicles that travel on crawler treads; d. Vehicles, whether self-propelled or not, on which are permanently mounted: (1) Power cranes, shovels, loaders, diggers or drills; or (2) Road construction or equipment such as graders, rollers; resurfacing scrapers or e. Vehicles not described in Paragraphs a., b., c. or d. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: (1) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well seivicing equipment; or (2) Cherry pickers and similar devices used to raise or lower workers; f. Vehicles not described in Paragraphs a., b., c. or d. above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not "mobile equipment" but will be considered 11autos": (1) Equipment designed primarily for: (a) Snow removal; (b) Road maintenance, but construction or resurfacing; or (c) Street cleaning; not (2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (3) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well seivicing equipment. 13. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions. SB-300000-D (Ed. 04/14) Includes copyrighted n1aterial of Insurance Services Office, Inc., Vvilh Hs penn'1ssion Page 14of16 300 --= -= 14. "Personal and advertising injury" means injury, including consequential "bodily injury," arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b. Malicious prosecution; c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; d. Oral or written publication, in any manner, of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; e. Oral or written publication, in any manner, of material that violates a person's right of privacy; f. The use of another's advertising idea in your "advertisement"; or g. Infringing upon another's copyright, trade dress or slogan in your nadvertisement.11 15. "Pollutants" mean any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed 16. "Products -completed operations hazard": a. Includes all "bodily injury" and "property damage" occurring away from premises you own or rent and arising out of "your product" or "your work" except: (1) Products that are still in your physical possession; or (2) Work that has not yet been completed or abandoned. However, "your work" will be deemed completed at the earliest of the following times: (a) When all of the work called for in your contract has been completed. (b) When all of the work to be done at the job site has been completed if your contract calls for work at more than one job site. (c) When that part of the work done at the job site has been put to its intended use by any other person or organization other than another contractor or subcontractor working on the same project. Work that may need service, maintenance, correction, repair or SB-300000-D (Ed. 04/14) replacement, but which is otherwise complete, will be treated as completed. The "bodily injury" or "property damage" must occur away from premises you own or rent, unless your business includes the selling, handling or distribution of "your product" for consumption on premises you own or rent. b. Does not include "bodily injury" or "property damage" arising out of: (1) The transportation of property, unless the injury or damage arises out of a condition in or on a vehicle not owned or operated by you, and that condition was created by the "loading or unloading" of that vehicle by any insured; or (2) The existence of tools, uninstalled equipment or abandoned or unused materials. 17. 11 Property damageu means: a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or b. Loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to occur at the time of the "occurrence" that caused it. For the purposes of this insurance, electronic data is not tangible property. As used in this definition, electronic data means information, facts or programs stored as, created or used on, or transmitted to or from computer software, including systems and applications software, hard or floppy disks, CD-ROMs, tapes, drives, cells, data processing devices or any other media which are used with electronically controlled equipment. 18. "Software" means: a. Electronic data processing, recording or storage media such as films, tapes, cards, discs, drums or cells; and b. Data and programming records used for electronic data processing or electronically controlled equipment stored on such media; and c. Written or printed data, such as programs, routines, and symbolic languages, essential to the operation of computers; and d. Documents containing information on the operation and maintenance of computers. SB-300000-D (Ed. 04/14) Includes copyrighted material of Insurance Services Office, Inc., with its permission Page 15of16 301 19. "Suit" means a civil proceeding in which damages because of "bodily injury," "property damage," "personal and advertising injury" to which this insurance applies are alleged. "Suit" includes: a. An arbitration proceeding in which such damages are claimed and to which the insured must submit or does submit with our consent; or b. Any other alternative dispute resolution proceeding in which such damages are claimed and to which the insured submits with our consent. 20. "Temporary worker" means a person who is furnished to you to substitute for a permanent "employee" on leave or to meet seasonal or short- term workload conditions. 21. "Volunteer worker" means a person who is not your "employee," and who donates his or her work and acts at the direction of and within the scope of duties determined by you, and is not paid a fee, salary or other compensation by you or anyone else for their work performed for you. 22. "Your product": a. Means: (1) Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by: (a) You; (b) Others trading under your name; or (c) A person or business or acquired; and SB-300000-D (Ed. 04/14) organization whose assets you have (2) Containers (other than vehicles), materials, parts or equipment furnished in connection with such goods or products. b. Includes: (1) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of 11your product°; and (2) The providing of or failure to provide warnings or instructions. c. Does not include vending machines or other property rented to or located for the use of others but not sold. 23. "Your work": a. Means: (1) Work or operations performed by you or on your behalf; and (2) Materials, parts or equipment furnished in connection with such work or operations. b. Includes: (1) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of 11your work 11 ; and (2) The providing of or failure to provide warnings or instructions. SB-300000-D (Ed. 04/14) Includes copyrighted n1aterta1 of Insurance Services Office, Inc., \Nith its pennission Page 16of16 302 eNA SB-300120-C (Ed. 06/11) THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS, LESSEES OR CONTRACTORS - SCHEDULED PERSON OR ORGANIZATION -WITH PRODUCTS COMPLETED OPERATIONS COVERAGE This endorsement modifies insurance provided under the following; BUSINESSOWNERS LIABILITY COVERAGE FORM SCHEDULE' Name Of Person Or Organization: ' Information reaulred to complete this Schedule, if not shown on this endorsement, will be shown in the Declarations. A. The following is added to Paragraph C. Who Is An Insured: 4. Any person(s) or organization(s) shown in the Schedule is also an additional insured, but only with respect to liability for "bodily injury," "property damage" or "personal and advertising injury," caused, in whole or in part, by; a. Your acts or omissions; or b. The acts or omissions of those acting on your behalf in the performance of your ongoing operations for the additional insured(s); at the location(s) designated above; or c. "Your work" that Is included In the "products- completed operations hazard" and performed for the additional insured, but only If this Polley provides such coverage, and only If the written contract or written agreement requires you to provide the additional insured such coverage. B. The insurance provided to the additional insured does not apply to "bodily Injury," "property damage," or "personal and advertising injury" arising out of: SB-300120-C (Ed. 06/11) 1. The rendering of, or the failure to render any professional architectural, engineering, or surveying services, including; (a) The preparing, approving, or failing to prepare or approve maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; and (b) Supervisory, inspection, architectural or engineering activities. 2. "Bodily Injury," "property damage," or "personal and advertising injury" arising out of any premises or work for which the additional insured is specifically listed as an additional insured on another endorsement attached to this Policy. C. The following is added to Paragraph H. of the Businessowners Common Polley Conditions: H. Other Insurance This insurance is excess over any other insurance naming the additional insured as an Insured whether primary, excess, contingent or on any other basis unless a written contract or written agreement specifically requires that this Insurance be either primary or primary and noncontributing. Page 1of1 303 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT Policy Number: 41 WBC AC5W3P Endorsement Number: Effective Date: 01/08/22 Effective hour is the same as stated on the Information Page of the policy. Named Insured and Address: Disability Access Consulants, LLC 2862 OLIVE HWY OROVILLE CA 95966 We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. This agreement shall not operate directly or indirectly to benefit anyone not named in the Schedule. SCHEDULE Any person or organization for whom you are required by contract or agreement to obtain this waiver from us. Endorsement is not applicable in KY, NH, NJ or for any MO construction risk Form WC 00 03 13 Printed in U.S.A. Process Date: 11/29/21 Countersigned by ------------------~ Authorized Representative Policy Expiration Date: 01/08/23 304 305 PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: ADA Transition Plan SERVICE DESCRIPTION: Prepare a comprehensive ADA Self-Evaluation and Transition Plan for City buildings, parks, and public right-of-way. VENDOR: Disability Access Consultants OVERALL RANKING: 1 out of 3 SUBJECT MATTER EXPERTS/RATERS: 1. Deputy Public Works Director 2. Principal Civil Engineer 3. Civil Engineer I. MINIMUM QUALIFICATIONS REVIEW  Written Proposal Score: Ave. of 66 Disability Access Consultants – Minimum Qualifications Review Total Weighted Score Maximum Score Proposal Clarity 9 10 Firm Qualifications 22 25 Staffing 23 25 Understanding and Methodology 12 15 Total 66 75 II. DUE DILIGENCE REVIEW Disability Access Consultants – Summary of Review  Easy to read proposal  Good understanding of project requirements.  Comprehensive approach to working with City staff 306 PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: ADA Transition Plan SERVICE DESCRIPTION: Prepare a comprehensive ADA Self-Evaluation and Transition Plan for City buildings, parks, and public right-of-way. VENDOR: Bureau Veritas OVERALL RANKING: 2 out of 3 SUBJECT MATTER EXPERTS/RATERS: 1. Deputy Public Works Director 2. Principal Civil Engineer 3. Civil Engineer I. MINIMUM QUALIFICATIONS REVIEW  Written Proposal Score: Ave. of 52 Bureau Veritas – Minimum Qualifications Review Total Weighted Score Maximum Score Proposal Clarity 7 10 Firm Qualifications 18 25 Staffing 17 25 Understanding and Methodology 10 15 Total 52 75 II. DUE DILIGENCE REVIEW Bureau Veritas – Summary of Review  Good understanding of project requirements. 307 PROFESSIONAL SERVICE AWARD ANALYSIS SERVICE: ADA Transition Plan SERVICE DESCRIPTION: Prepare a comprehensive ADA Self-Evaluation and Transition Plan for City buildings, parks, and public right-of-way. VENDOR: Accessology OVERALL RANKING: 3 out of 3 SUBJECT MATTER EXPERTS/RATERS: 1. Deputy Public Works Director 2. Principal Civil Engineer 3. Civil Engineer I. MINIMUM QUALIFICATIONS REVIEW  Written Proposal Score: Ave. of 40 Accessology – Minimum Qualifications Review Total Weighted Score Maximum Score Proposal Clarity 5 10 Firm Qualifications 15 25 Staffing 13 25 Understanding and Methodology 7 15 Total 40 75 II. DUE DILIGENCE REVIEW Accessology – Summary of Review  Good understanding of project requirements. Most experience based in Texas. Not much California experience 308 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-069 MEETING DATE:2/1/2022 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Sean Joyce, Interim City Manager PREPARED BY:Travis K. Hopkins, Assistant City Manager Subject: Approve and authorize execution of a Professional Services Contract with K Street Consulting, LLC for Legislative Advocacy and Grant Management Services Statement of Issue: The City completed a Request for Qualifications (RFQ) process to retain a legislative advocacy and grant management services consultant.Based on the RFQ assessment, staff requests authorization to execute a Professional Services Agreement with K Street Consulting, LLC (“K Street”) to advocate for the City’s priorities and policies on the federal, state and local levels and to also identify and apply for grant funding for major projects. The term of the agreement is three years. Financial Impact: K Street’s services will require a monthly fee of $8,000 for legislative advocacy and grant management services over the term of the agreement. The agreement is capped at $100,000 annually, and sufficient funds are budgeted in 10030101.69365. Recommended Action: Approve and authorize the Mayor and City Clerk to execute a “Professional Services Contract Between the City of Huntington Beach and K Street Consulting , LLC for Legislative Advocacy and Grant Management Services.” Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis: Staff recommends awarding a Professional Services Agreement to K Street for legislative advocacy and grant management services. K Street would advocate for the City’s priorities and projects on the federal, state and local levels and also identify and apply for grant funds to support hallmark programs and projects that the City will be undertaking. Prior to this agreement, Townsend Public Affairs (TPA) had been providing legislative advocacy and grant management services for the City since March 2014. The most recent contract with TPA expired in January 2022, and the City - as required by the city’s contracting policies - issued an RFQCity of Huntington Beach Printed on 1/26/2022Page 1 of 2 powered by Legistar™309 File #:22-069 MEETING DATE:2/1/2022 expired in January 2022, and the City - as required by the city’s contracting policies - issued an RFQ for legislative advocacy and grant management services. Through this RFQ, the City had an opportunity to consider firms with varying approaches to legislative affairs and their own extensive network of stakeholders who can further the City’s goals. Staff received and evaluated four proposals and identified K Street as the highest ranked. K Street has extensive experience working on a wide array of issues including water, capital infrastructure, cannabis, and veteran’s services. K Street also has locations in Sacramento and Washington D.C., with government agency clients throughout California and has committed to providing the City with a legislative program that is tailored to the ongoing and future priorities of the City Council. K Street’s scope of work includes an ongoing assessment of local, state and federal legislation that unfolds throughout the year. K Street’s findings will be reflective of the City’s current and future priorities and include timely recommendations to make progress on those priorities. K Street will draft letters, position statements, and legislative language as needed and will also maintain strong relationships with stakeholders and elected leaders to facilitate collaboration. K Street’s proactive approach includes facilitating meetings between City representatives and leaders on the local, state and federal levels to place Huntington Beach priorities on the forefront and ensure that future initiatives are included in legislation and funding requests. K Street will also be responsible for presenting a monthly agenda to the Intergovernmental Relations Committee (IRC) and developing a list grant opportunities and submitting grant applications to support City programs at the direction of the IRC and staff. As such, staff recommends awarding an agreement to K Street which will charge $8,000 per month for their services. The agreement is capped at $100,000 per year. The term of the agreement is for three years, with the option to renew for one additional year. Environmental Status: Not applicable. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Professional Services Agreement with K Street Consulting, LLC 2. RFQ for Legislative Advocacy and Grant Management Services City of Huntington Beach Printed on 1/26/2022Page 2 of 2 powered by Legistar™310 311 22-10841/273855 2 of 13 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. 3. TERM; TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSULTANT are to commence on , 20 (the "Commencement Date"). This Agreement shall automatically terminate three (3) years from the Commencement Date, unless extended or sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no later than three (3) years from the Commencement Date. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT. In the event the Commencement Date precedes the Effective Date, CONSULTANT shall be bound by all terms and conditions as provided herein. 4. COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT the rates specified in Exhibit "B," which is attached hereto and incorporated by reference into this Agreement, a fee, including all costs and expenses, not to exceed Three Hundred Thousand Dollars ($300,000.00). 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit "A" or changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such work only after receiving written authorization from CITY. Additional 312 313 314 315 316 317 22-10841/273855 8 of 13 14. COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 15. CITY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 16. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and CONSULTANT may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U. S. certified mail-return receipt requested: TO CITY: TO CONSULTANT: City of Huntington Beach ATTN: City Manager 2000 Main Street Huntington Beach, CA 92648 K Street Consulting, LLC Attn: Pamela Lopez 1826 Capital Avenue Sacramento, CA 95881 318 319 320 321 322 323 324 325 326 REQUEST FOR QUALIFICATIONS (RFQual) FOR LEGISLATIVE ADVOCACY AND GRANT MANAGEMENT SERVICES RFQual RESPONSE DUE DATE Friday, September 24, 2021 @ 4:00 p.m. 327 Legislative Advocacy Services RFQual Submittal Deadline Friday, September 24, 2021 by 4:00 p.m. CITY OF HUNTINGTON BEACH LEGISLATIVE ADVOCACY AND GRANT MANAGEMENT SERVICES REQUEST FOR QUALIFICATIONS BACKGROUND INFORMATION Background The City of Huntington Beach is widely known as Surf City, U.S.A. with 8.5 miles of beach and a popular surf culture that draws 4 million visitors annually. Beyond the beach, the City offers residents a picturesque community with ideal weather, a robust and diversified economy, a wide variety of housing, and an excellent education system. Huntington Beach is located along the Southern California coast in Orange County, 35 miles south of Los Angeles and 90 miles north of San Diego. Named for railroad magnate Henry Huntington who orchestrated its development, the City is now an epicenter of restaurants, entertainment, and outdoor activities well-known throughout the region. Purpose The City seeks a qualified and dynamic team (“Consultant”) to provide legislative advocacy and grant management services at the regional, state and federal levels. The Consultant would perform these services under the direction of the City Manager’s Office and in direct support of the City Council’s policies and priorities. This Request for Qualifications (“RFQual”) invites all interested and qualified Consultants to submit a proposal that describes their ability to provide the aforementioned services, in accordance with the legislative, policy, and funding needs of the City of Huntington Beach. Interested Consultants should prepare and submit a comprehensive proposal as detailed in this RFQual. After review, the City will establish a short list of the most qualified Consultants to be contacted for further evaluation including interviews and reference checks. 328 Legislative Advocacy Services RFQual Submittal Deadline Friday, September 24, 2021 by 4:00 p.m. CITY OF HUNTINGTON BEACH LEGISLATIVE ADVOCACY AND GRANT MANAGEMENT SERVICES REQUEST FOR QUALIFICATIONS SCOPE OF WORK OVERVIEW The City of Huntington Beach seeks qualifications from well-qualified firms to provide legislative advocacy and grant management services, in support of the City Council’s policies and priorities. To build an effective partnership with the selected firm, this RFQual assesses each firm’s qualifications and approach to the proposed scope of work below. Then, after reviewing the responses received, the City will identify the best consultant to serve our needs moving ahead. The following includes a general scope of the work to be pursued by the selected consultant: 1. Coordinate the City’s efforts to proactively assess regional, state and federal legislative options or issues that unfold throughout the year; help guide the City’s policy objectives by raising, discussing, and recommending any action that may benefit the City and support its programs and priorities. 2. Prepare and present a monthly agenda for the City’s Intergovernmental Relations Committee that includes all current legislation and issues that may impact the City. Each agenda item should include a comprehensive written report that details the pros and cons of each legislation or policy; its origins, current status and timeline to potential adoption; and its impacts to the City of Huntington Beach. 3. Act quickly on the City’s behalf to rapidly changing developments that may impact the City’s policy and legislative matters. 4. Maintain strong and effective working relationships with stakeholders and elected leaders that represent the City on the regional, state and federal levels. Facilitate open communication and collaboration to help the City achieve its policy and program goals or address issues of interest. 5. Draft letters, position statements, legislative language, and talking points on legislation as requested by staff. 6. Identify potential grant funding opportunities for City services, projects, and programs. Provide grant writing services and follow up with granting agencies to facilitate a successful application, when requested by staff. Assist with the execution of grant documents. After assessing the responses received, the City plans to enter into an agreement with the selected consultant(s). The City may enter into agreements with several consultants, based on City needs and the qualifications of the responding firms. Additional contract details will be developed with the identified contractors), based on the provisions of the response submitted by each responding firm. 329 Legislative Advocacy Services RFQual Submittal Deadline Friday, September 24, 2021 by 4:00 p.m. CITY OF HUNTINGTON BEACH LEGISLATIVE ADVOCACY AND GRANT MANAGEMENT SERVICES REQUEST FOR QUALIFICATIONS CONTENT OF RESPONSES Responses submitted to the City should include the following components: 1. Cover Letter a. A cover letter signed by the individual authorized to represent / negotiate on behalf of the responding firm. 2. Firm Qualifications a. An overview of qualifications for the firm, which should include the type of organization, size, professional registration, and affiliations of the company. b. Resumes and backgrounds of the principal staff who will be working directly and regularly on this initiative with the City as well as their roles. Clearly identify the project lead who will be responsible for the day-to-day management of the contract. c. Provide a minimum of five (5) references of current or former clients and representative projects undertaken in the last three years demonstrating experience relevant to this request and that are related to government advocacy (cities preferred). Provide the contact person’s name, title, address, phone number, and email address. Provide a list of current clients. d. Describe the Consultant’s established strategic relationships with stakeholders, if any, that the Consultant would partner with to achieve outcomes that support the City’s legislative and policy positions. e. Explain what you would do in a situation where two or more of your clients have conflicting views and/or positions on a matter in which you’ve been asked to advocate on behalf of the City. f. Describe your process for identifying grants and to complete a grant application. g. Provide any suggested modifications to the Scope of Work listed above. 3. Understanding of and Proposed Approach to the RFQual Scope of Work: a. Describe the recommended approach to the City’s legislative advocacy needs, as outlined on Pages 3 of this RFQual (Scope of Work). 4. Estimated Costs a. Provide a rate proposal based on a monthly fee schedule. 330 Legislative Advocacy Services RFQual Submittal Deadline Friday, September 24, 2021 by 4:00 p.m. CITY OF HUNTINGTON BEACH LEGISLATIVE ADVOCACY AND GRANT MANAGEMENT SERVICES REQUEST FOR QUALIFICATIONS SUBMITTAL GUIDELINES The deadline for receiving responses is no later than 4:00 p.m. on Friday, September 24, 2021. Without exception, responses will not be accepted after this deadline. Respondents are required to submit the following: Complete written proposals must be submitted electronically in PDF file format via the PlanetBids.com website no later than 4:00 p.m. (P.S.T) on Friday, September 24, 2021. Proposals will not be accepted after this deadline. Faxed or e-mailed proposals will not be accepted. Questions about this RFP must be directed in writing through the PlanetBids Q&A tab no later than 5:00 p.m. PST) on September 14, 2021 for response. It is important to note that the City reserves the right to reject any and all responses. The City will not be liable for, nor pay for any costs incurred by responding firms relating to the preparation of the response. An explicit provision of this RFQual is that any oral communication is not binding on the City’s RFQual response process or selection criteria. 331 Legislative Advocacy Services RFQual Submittal Deadline Friday, September 24, 2021 by 4:00 p.m. CITY OF HUNTINGTON BEACH LEGISLATIVE ADVOCACY AND GRANT MANAGEMENT SERVICES REQUEST FOR QUALIFICATIONS SELECTION OF FIRM RFQual Assessment Process The City will coordinate a review and evaluation of all responses received by the City in response to this RFQual. As part of the assessment process, the City will place particular emphasis on the qualifications / experience of the individuals assigned to the project; directly relevant qualifications / experience of the firm; the ability for the firm to undertake the management of the RFQual scope of work; and each firm’s understanding and proposed approach to the project. The following specific criteria will be used in the evaluation process: 1. Qualifications and experience of the individuals assigned to the contract 2. Qualifications and experience of the responding firm 3. Experience and track record conducting similar work for similar cities. 4. Understanding and approach to the proposed scope of work in Huntington Beach 5. Proposed Fees Overall Assessment / Selection Process After assessing all of the responses received, the most qualified respondents will be invited to participate in an interview with City staff. Following that interview process, the City will identify a selected specialist(s) to partner with on this project. The selected specialist(s) will be asked to enter into a Professional Service Contract with the City. The anticipated timeline for these next steps is as follows:  RFQual Submittal Deadline: September 24, 2021 no later than 4:00 p.m.  Interviews w/ Selected Firms: A mutually agreed upon time between City & identified firms week of October 18, 2021  Selection of Firm(s): November 2021 The City may also contact and review the bidder’s references; contact any bidder to clarify any response; contact any current users of a bidder’s services; solicit information from any available source concerning any aspect of a Proposal; and seek and review any other information deemed pertinent to the review process. The review board shall not be obligated to accept the lowest-priced Proposal(s), but shall make an award in the best interests of the City. The City will only open the fee proposal if the firm is one of the finalists. 332 Legislative Advocacy Services RFQual Submittal Deadline Friday, September 24, 2021 by 4:00 p.m. CITY OF HUNTINGTON BEACH LEGISLATIVE ADVOCACY AND GRANT MANAGEMENT SERVICES REQUEST FOR QUALIFICATIONS After written Proposals have been reviewed, discussions with prospective firms may or may not be required. If scheduled, the oral interview will be a question/answer format for the purpose of clarifying the intent of any portions of the Proposals. The individual from your firm that will be directly responsible for carrying out the contract, if awarded, should be present at the oral interview. A Notification of Intent to Award may be sent to the vendor selected. Award is contingent upon the successful negotiation of final contract terms. Negotiations shall be confidential and not subject to disclosure to competing vendors unless an agreement is reached. If contract negotiations cannot be concluded successfully, the City may negotiate a contract with the next highest scoring vendor or withdraw the RFQual. TERMS AND CONDITIONS The following terms and conditions apply to this RFQual: 1. All responses shall become the property of the City. 2. Due care and diligence has been exercised in the preparation of this RFQual and all information contained herein is believed to be substantially correct. However, the responsibility for determining the full extent of the services rests solely with those making responses. Neither the City nor its representatives shall be responsible for any error or omission in this response, nor for the failure on the part of the respondents to determine the full extent of their exposures. 3. The City reserves the right to select firms from the responses received; to waive any or all informalities and / or irregularities; to re-advertise with either an identical or revised scope, or to cancel any requirement in its entirety; or to reject any or all responses received. 4. A response to this RFQual does not constitute a formal bid, therefore, the City retains the right to contact any / all proposing firms after submittal in order to obtain supplemental information and/or clarification in either oral or written form. Furthermore, an explicit provision of this RFQual is that any oral communication made is not binding on the City’s response process. 5. The City will not be liable for, nor pay for any costs incurred by responding firms relating to the preparation of any response for this RFQual. Please carefully review the Sample Agreement and Insurance Requirements before responding to the Request for Qualifications enclosed herein. The terms of the agreement, including insurance requirements have been mandated by City Council, and can be modified only if extraordinary circumstances exist. Your response to the Request for Qualifications must indicate if you are unwilling or unable to execute the agreement as drafted as well as providing the insurance requirements. The City will consider this in determining responsiveness to the Request for Qualifications. 333 REQUEST FOR PROPOSAL VENDOR APPLICATION FORM TYPE OF APPLICANT:  NEW  CURRENT VENDOR Legal Contractual Name of Corporation: Contact Person for Agreement: Corporate Mailing Address: City, State and Zip Code: E-Mail Address: Phone: Fax: Contact Person for Proposals: Title: E-Mail Address: Business Telephone: Business Fax: Is your business: (check one)  NON PROFIT CORPORATION  FOR PROFIT CORPORATION Is your business: (check one)  CORPORATION  LIMITED LIABILITY PARTNERSHIP  INDIVIDUAL  SOLE PROPRIETORSHIP  PARTNERSHIP  UNINCORPORATED ASSOCIATION 1 of 2 334 Names & Titles of Corporate Board Members (Also list Names & Titles of persons with written authorization/resolution to sign contracts) Names Title Phone Federal Tax Identification Number: City of Huntington Beach Business License Number: (If none, you must obtain a Huntington Beach Business License upon award of contract.) City of Huntington Beach Business License Expiration Date: 2 of 2 335 HB Insurance Matrix_revised 4-7-16 (2).xlsx 1 of 4 CITY OF HUNTINGTON BEACH INSURANCE REQUIREMENTS Vendor Type Minimum Insurance Requirements Automobile Liability General Liability Professional Liability Property Insurance Workers' Comp Additional Insured Endorsements Huntington Beach City Council Resolution No. 2008-63 requires submittal of certificates of insurance evidencing the following minimum limits with a California admitted carrier with a current A.M. Best’s Rating of no less than A:VII. See Exhibits A1 - 4 for sample forms. Email: Justin.Wessels@surfcity-hb.org or Heather.Campbell@surfcity-hb.org Phone: 714-374-5378 or 714-536-5210. Fax: 714-536-5212. Any deductible other than those allowed in this matrix, self-insured retentions or similar forms of coverage limitations or modifications must be approved by the Risk Manager and City Attorney of the City of Huntington Beach. NOTE: Waivers and / or modifications are discouraged and will be considered only under extraordinary circumstances. Contractors: Any persons or entities who contract with the City and/or provide services to the City which are readily available and efficiently procured by competitive bidding. Minimum of $1,000,000 per occurrence for bodily injury, personal injury and property damages. Allows up to $1,000 deductible.(See Note 1 below.) Combined single limit bodily injury and property damage. Minimum of $1,000,000 per occurrence. Allows up to $5,000 deductible. (Additional Insured Endorsement is always required with General Liability Ins.) As required by the State of California, with Statutory Limits and Employer’s Liability Insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease. (See Note 2 below.) Include the policy number and Additional Insured Endorsement Requirement statement below. (See Note 3 below.) Permittees: Any persons or entities who make application to the City for any use of or encroachment upon any public street, waterway, pier, or City property. Vendors: Any persons or entities who transfers property or goods to the City which may or may not involve delivery and/or installation. Note 1 - Automobile Liability: The City of Huntington Beach, its officers, elected or appointed officials, employees, agents and volunteers must be named as certificate holder and as additional insured by separate attached endorsement. Permittees who do not use vehicles or equipment in connection with the permit shall not be required to provide auto insurance. To be exempt from this requirement, permittees must execute a declaration such as Exhibit 1 attached. Note 2 - Workers' Compensation Exemption: If entity has no employees, a signed Declaration of Non-Employee Status form is required. Note 3 - Additional Insured Endorsement Requirements: The City, its officers, elected or appointed officials, employees, agents, and volunteers are to be covered as additional insureds by separate attached endorsement(s) as respects liability arising out of action performed by or on behalf of the contractor, products and completed operations of the contractor, premises owned, occupied or used by the contractor, or automobiles owned, leased or borrowed by the contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City. 336 HB Insurance Matrix_revised 4-7-16 (2).xlsx 2 of 4 CITY OF HUNTINGTON BEACH INSURANCE REQUIREMENTS Vendor Type Minimum Insurance Requirements Automobile Liability General Liability Professional Liability Property Insurance Workers' Comp Additional Insured Endorsements Huntington Beach City Council Resolution No. 2008-63 requires submittal of certificates of insurance evidencing the following minimum limits with a California admitted carrier with a current A.M. Best’s Rating of no less than A:VII. See Exhibits A1 - 4 for sample forms. Email: Justin.Wessels@surfcity-hb.org or Heather.Campbell@surfcity-hb.org Phone: 714-374-5378 or 714-536-5210. Fax: 714-536-5212. Any deductible other than those allowed in this matrix, self-insured retentions or similar forms of coverage limitations or modifications must be approved by the Risk Manager and City Attorney of the City of Huntington Beach. NOTE: Waivers and / or modifications are discouraged and will be considered only under extraordinary circumstances. Design Professionals: Professional service contractors who contract with the City and/or provide architectural and/or engineering services to the City. Minimum of $1,000,000 per occurrence and in the aggregate. Allows up to $10,000 deductible. Professional Services: Services that involve the exercise of professional discretion and independent judgment based on an advanced or specialized knowledge, expertise or training gained by formal studies or experience or services which are not readily or efficiently procured by competitive bidding pursuant to HB Muni Code 3.02. Services includes but are not limited to those services provided by appraisers, architects, attorneys, engineers, instructors, insurance advisors, physicians and other specialized consultants. Claims made policies are acceptable if the policy further provides that: 1) The policy retroactive date coincides with or precedes the professional services contractor’s start of work (including subsequent policies purchased as renewals or replacements). 2) The professional services contractor will make every effort to maintain similar insurance during the required extended period of coverage following project completion, including the requirement of adding all additional insureds. 3) If insurance is terminated for any reason, professional services contractor agrees to purchase an extended reporting provision of at least two (2) years to report claims arising from work performed in connection with this agreement or permit. 4) The reporting of circumstances or incidents that might give rise to future claims. 337 HB Insurance Matrix_revised 4-7-16 (2).xlsx 3 of 4 CITY OF HUNTINGTON BEACH INSURANCE REQUIREMENTS Vendor Type Minimum Insurance Requirements Automobile Liability General Liability Professional Liability Property Insurance Workers' Comp Additional Insured Endorsements Huntington Beach City Council Resolution No. 2008-63 requires submittal of certificates of insurance evidencing the following minimum limits with a California admitted carrier with a current A.M. Best’s Rating of no less than A:VII. See Exhibits A1 - 4 for sample forms. Email: Justin.Wessels@surfcity-hb.org or Heather.Campbell@surfcity-hb.org Phone: 714-374-5378 or 714-536-5210. Fax: 714-536-5212. Any deductible other than those allowed in this matrix, self-insured retentions or similar forms of coverage limitations or modifications must be approved by the Risk Manager and City Attorney of the City of Huntington Beach. NOTE: Waivers and / or modifications are discouraged and will be considered only under extraordinary circumstances. Licensees/Lessees: Any persons or entities who contract with the City for the use of public property. Combined single limit bodily injury and property damage. Minimum of $1,000,000 per occurrence. Allows up to $5,000 deductible. (Additional Insurance Endorsement is always required with General Liability Ins.) Full replacement cost with no coinsurance penalty provision. As required by the State of California, with Statutory Limits and Employer’s Liability Insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease. (See Note 1 below.) Include the policy number and Additional Insured Endorsement Requirement statement below.(See Note 2.) Note 1 - Workers' Compensation Exemption: If entity has no employees, a signed Declaration of Non-Employee Status form is required. Note 2 - Additional Insured Endorsement Requirements: The City, its officers, elected or appointed officials, employees, agents, and volunteers are to be covered as additional insureds by separate attached endorsement(s) as respects liability arising out of action performed by or on behalf of the contractor, products and completed operations of the contractor, premises owned, occupied or used by the contractor, or automobiles owned, leased or borrowed by the contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City. 338 HB Insurance Matrix_revised 4-7-16 (2).xlsx 4 of 4 CITY OF HUNTINGTON BEACH INSURANCE REQUIREMENTS Huntington Beach City Council Resolution No. 2008-63 requires submittal of certificates of insurance evidencing the following minimum limits with a California admitted carrier with a current A.M. Best’s Rating of no less than A:VII. Any deductible other than those allowed in this matrix, self-insured retentions or similar forms of coverage limitations or modifications must be approved by the Risk Manager and City Attorney of the City of Huntington Beach. NOTE: Waivers and / or modifications are discouraged and will be considered only under extraordinary circumstances. Vendor Type Minimum Insurance Requirements Professional Liability Design Professionals: Professional service contractors who contract with the City and/or provide architectural and/or engineering services to the City. Minimum of $1,000,000 per occurrence and in the aggregate. Allows up to $10,000 deductible. Professional Services: Services that involve the exercise of professional discretion and independent judgment based on an advanced or specialized knowledge, expertise or training gained by formal studies or experience or services which are not readily or efficiently procured by competitive bidding pursuant to HB Muni Code 3.02. Services includes but is not limited to those services provided by appraisers, architects, attorneys, engineers, instructors, insurance advisors, physicians and other specialized consultants. Claims made policies are acceptable if the policy further provides that: 1) The policy retroactive date coincides with or precedes the professional services contractor’s start of work (including subsequent policies purchased as renewals or replacements). 2) The professional services contractor will make every effort to maintain similar insurance during the required extended period of coverage following project completion, including the requirement of adding all additional insureds. 3) If insurance is terminated for any reason, professional services contractor agrees to purchase an extended reporting provision of at least two (2) years to report claims arising from work performed in connection with this agreement or permit. 4) The reporting of circumstances or incidents that might give rise to future claims. 339 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND FOR Table of Contents 1 Scope of Services .................................................................................................... 1 2 City Staff Assistance ............................................................................................... 2 3 Term; Time of Performance .....................................................................................2 4 Compensation ...........................................................................................................2 5 Extra Work .............................................................................................................. 2 6 Method of Payment .................................................................................................. 3 7 Disposition of Plans, Estimates and Other Documents ............................................3 8 Hold Harmless ..........................................................................................................3 9 Professional Liability Insurance......................................................................…….4 10 Certificate of Insurance ............................................................................................5 11 Independent Contractor ........................................................................................... 6 12 Termination of Agreement .......................................................................................6 13 Assignment and Delegation ......................................................................................6 14 Copyrights/Patents ...................................................................................................7 15 City Employees and Officials ..................................................................................7 16 Notices……………………………………………………………………………..7 17 Consent ................................................................................................................... 8 18 Modification ............................................................................................................ 8 19 Section Headings .................................................................................................... 8 20 Interpretation of this Agreement ............................................................................. 8 21 Duplicate Original ................................................................................................... 9 22 Immigration. ............................................................................................................. 9 23 Legal Services Subcontracting Prohibited ................................................................9 24 Attorney's Fees ......................................................................................................... 10 25 Survival .......................................................................................................................... 10 26 Governing Law .........................................................................................................10 27 Signatories................................................................................................................ 10 28 Entirety ..................................................................................................................... 10 29 Effective Date………………………………………………………………………11 340 agree/ surfnet/professional svcs 50 to 100 12-07 1 of 11 PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF HUNTINGTON BEACH AND FOR THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as "CITY, and , a hereinafter referred to as "CONSULTANT." WHEREAS, CITY desires to engage the services of a consultant to ; and Pursuant to documentation on file in the office of the City Clerk, the provisions of the Huntington Beach Municipal Code, Chapter 3.03, relating to procurement of professional service contracts have been complied with; and CONSULTANT has been selected to perform these services, NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows: 1. SCOPE OF SERVICES CONSULTANT shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "PROJECT." CONSULTANT hereby designates who shall represent it and be its sole contact and agent in all consultations with CITY during the performance of this Agreement. 341 agree/ surfnet/professional svcs 50 to 100 12-07 2 of 11 2. CITY STAFF ASSISTANCE CITY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. 3. TERM; TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of CONSULTANT are to commence on , 20 (the "Commencement Date"). This Agreement shall automatically terminate three (3) years from the Commencement Date, unless extended or sooner terminated as provided herein. All tasks specified in Exhibit "A" shall be completed no later than from the Commencement Date. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule may be amended to benefit the PROJECT if mutually agreed to in writing by CITY and CONSULTANT. In the event the Commencement Date precedes the Effective Date, CONSULTANT shall be bound by all terms and conditions as provided herein. 4. COMPENSATION In consideration of the performance of the services described herein, CITY agrees to pay CONSULTANT on a time and materials basis at the rates specified in Exhibit "B," which is attached hereto and incorporated by reference into this Agreement, a fee, including all costs and expenses, not to exceed Dollars ($ ). 5. EXTRA WORK In the event CITY requires additional services not included in Exhibit "A" or changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such work only after receiving written authorization from CITY. Additional 342 agree/ surfnet/professional svcs 50 to 100 12-07 3 of 11 compensation for such extra work shall be allowed only if the prior written approval of CITY is obtained. 6. METHOD OF PAYMENT CONSULTANT shall be paid pursuant to the terms of Exhibit "B." 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations, computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to CITY, and CONSULTANT shall turn these materials over to CITY upon expiration or termination of this Agreement or upon PROJECT completion, whichever shall occur first. These materials may be used by CITY as it sees fit. 8. HOLD HARMLESS CONSULTANT hereby agrees to protect, defend, indemnify and hold harmless CITY, its officers, elected or appointed officials, employees, agents and volunteers from and against any and all claims, damages, losses, expenses, judgments, demands and defense costs (including, without limitation, costs and fees of litigation of every nature or liability of any kind or nature) arising out of or in connection with CONSULTANT's (or CONSULTANT's subcontractors, if any) negligent (or alleged negligent) performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement by CONSULTANT, its officers, agents or employees except such loss or damage which was caused by the sole negligence or willful misconduct of CITY. CONSULTANT will conduct all defense at its sole cost and expense and CITY shall approve selection of CONSULTANT's counsel. This indemnity shall 343 agree/ surfnet/professional svcs 50 to 100 12-07 4 of 11 apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as limitation upon the amount of indemnification to be provided by CONSULTANT. 9. PROFESSIONAL LIABILITY INSURANCE CONSULTANT shall obtain and furnish to CITY a professional liability insurance policy covering the work performed by it hereunder. This policy shall provide coverage for CONSULTANT’s professional liability in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and in the aggregate. The above- mentioned insurance shall not contain a self-insured retention without the express written consent of CITY; however an insurance policy "deductible" of Ten Thousand Dollars ($10,000.00) or less is permitted. A claims-made policy shall be acceptable if the policy further provides that: A. The policy retroactive date coincides with or precedes the initiation of the scope of work (including subsequent policies purchased as renewals or replacements). B. CONSULTANT shall notify CITY of circumstances or incidents that might give rise to future claims. CONSULTANT will make every effort to maintain similar insurance during the required extended period of coverage following PROJECT completion. If insurance is terminated for any reason, CONSULTANT agrees to purchase an extended reporting provision of at least two (2) years to report claims arising from work performed in connection with this Agreement. If CONSULTANT fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the CITY with required proof that 344 agree/ surfnet/professional svcs 50 to 100 12-07 5 of 11 insurance has been procured and is in force and paid for, the CITY shall have the right, at the CITY’s election, to forthwith terminate this Agreement. Such termination shall not effect Consultant’s right to be paid for its time and materials expended prior to notification of termination. CONSULTANT waives the right to receive compensation and agrees to indemnify the CITY for any work performed prior to approval of insurance by the CITY. 10. CERTIFICATE OF INSURANCE Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to CITY a certificate of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverage as required by this Agreement; the certificate shall: A. provide the name and policy number of each carrier and policy; B. state that the policy is currently in force; and C. shall promise that such policy shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days’ prior written notice; however, ten (10) days’ prior written notice in the event of cancellation for nonpayment of premium. CONSULTANT shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by CITY. The requirement for carrying the foregoing insurance coverage shall not derogate from CONSULTANT's defense, hold harmless and indemnification obligations as set forth in this Agreement. CITY or its representative shall at all times have the right to demand the original or a copy of the policy of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on the insurance hereinabove required. 345 agree/ surfnet/professional svcs 50 to 100 12-07 6 of 11 11. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of CITY. CONSULTANT shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the PROJECT and/or the services to be performed hereunder. 12. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. CITY may terminate CONSULTANT's services hereunder at any time with or without cause, and whether or not the PROJECT is fully complete. Any termination of this Agreement by CITY shall be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. In the event of termination, all finished and unfinished documents, exhibits, report, and evidence shall, at the option of CITY, become its property and shall be promptly delivered to it by CONSULTANT. 13. ASSIGNMENT AND DELEGATION This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by CONSULTANT to any other person or entity without the prior express written consent of CITY. If an assignment, delegation or subcontract is approved, all approved assignees, delegates and subconsultants must satisfy the insurance requirements as set forth in Sections 9 and 10 hereinabove. 346 agree/ surfnet/professional svcs 50 to 100 12-07 7 of 11 14. COPYRIGHTS/PATENTS CITY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 15. CITY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 16. NOTICES Any notices, certificates, or other communications hereunder shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and CONSULTANT may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U. S. certified mail-return receipt requested: TO CITY: TO CONSULTANT: City of Huntington Beach ATTN: 2000 Main Street Huntington Beach, CA 92648 347 agree/ surfnet/professional svcs 50 to 100 12-07 8 of 11 17. CONSENT When CITY's consent/approval is required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event. 18. MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 19. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 20. INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act 348 agree/ surfnet/professional svcs 50 to 100 12-07 9 of 11 contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 21. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 22. IMMIGRATION CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 23. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. 349 agree/ surfnet/professional svcs 50 to 100 12-07 10 of 11 24. ATTORNEY’S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney’s fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. 25. SURVIVAL Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 26. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 27. SIGNATORIES Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. CONSULTANT’s Initials 28. ENTIRETY The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that 350 agree/ surfnet/professional svcs 50 to 100 12-07 11 of 11 that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement, and the attached exhibits, contain the entire agreement between the parties respecting the subject matter of this Agreement, and supersede all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. 29. EFFECTIVE DATE IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. This Agreement shall be effective on the date of its approval by the City Attorney. This Agreement shall expire when terminated as provided herein. CONSULTANT, COMPANY NAME CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California By: City Administrator INITIATED AND APPROVED: print name ITS: (circle one) Chairman/President/Vice President AND By: Director/Chief APPROVED AS TO FORM: print name ITS: (circle one) Secretary/Chief Financial Officer/Asst. Secretary – Treasurer City Attorney Date 351 EXHIBIT "A" A. STATEMENT OF WORK: (Narrative of work to be performed) B. CONSULTANT'S DUTIES AND RESPONSIBILITIES: 1. 2. C. CITY'S DUTIES AND RESPONSIBILITIES: 1. 2. D. WORK PROGRAM/PROJECT SCHEDULE: EXHIBIT A 352 1 Exhibit B EXHIBIT “B” A. Hourly Rate Payment Schedule (Hourly Payment) CONSULTANT'S fees for such services shall be based upon the following hourly rate and cost schedule: B. Travel. Charges for time during travel are not reimbursable C. Billing 1. All billing shall be done monthly in fifteen (15) minute increments and matched to an appropriate breakdown of the time that was taken to perform that work and who performed it. 2. Each month’s bill should include a total to date. That total should provide, at a glance, the total fees and costs incurred to date for the project. 3. A copy of memoranda, letters, reports, calculations and other documentation prepared by CONSULTANT may be required to be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. 4. CONSULTANT shall submit to CITY an invoice for each monthly payment due. Such invoice shall: A) Reference this Agreement; B) Describe the services performed; C) Show the total amount of the payment due; D) Include a certification by a principal member of CONSULTANT's firm that the work has been performed in accordance with the provisions of this Agreement; and E) For all payments include an estimate of the percentage of work completed. Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non-approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 353 Exhibit B 5. Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. 2 354 Exhibit B EXHIBIT "B" Payment Schedule (Fixed Fee Payment) 1. CONSULTANT shall be entitled to monthly progress payments toward the fixed fee set forth herein in accordance with the following progress and payment schedules. 2. Delivery of work product: A copy of every memorandum, letter, report, calculation and other documentation prepared by CONSULTANT shall be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. 3. CONSULTANT shall submit to CITY an invoice for each monthly progress payment due. Such invoice shall: A) Reference this Agreement; B) Describe the services performed; C) Show the total amount of the payment due; D) Include a certification by a principal member of CONSULTANT's firm that the work has been performed in accordance with the provisions of this Agreement; and E) For all payments include an estimate of the percentage of work completed. Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non-approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 4. Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. 355 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-061 MEETING DATE:2/1/2022 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Sean Joyce, Interim City Manager PREPARED BY:Sean Crumby, Director of Public Works Subject: Approve and authorize execution of Amendment No. 5 to Agreement with Biggs Cardosa Associates, Inc. (BCA) for bridge design services in the amount of $301,857.00, for a total contract amount not to exceed $3,115,654.00 and extending the contract term 3 years Statement of Issue: The City has an existing professional services contract with Biggs Cardosa Associates, Inc. to provide bridge design services for various federally funded bridge rehabilitation projects that will expire on February 21, 2022. Staff is requesting that the existing contract be amended for the following reasons: 1) to extend the term of the contract to February 21, 2025 in order to complete the design and provide construction engineering and environmental monitoring services for both the Admiralty Drive and Humboldt Drive bridge rehabilitation projects; and 2) to provide for compensation for additional utility coordination and traffic-related design services. Financial Impact: Funds in the amount of $588k for the contract amendment are included in the Hwy Bridge Replacement & Rehab business unit 96185001. $301,857 is being requested as part of Amendment No. 5. Recommended Action: Approve and authorize the Mayor and City Clerk to execute “Amendment No. 5 to Agreement Between the City of Huntington Beach and Biggs Cardosa Associates, Inc. for Bridge Design Services.” Alternative Action(s): Do not approve the contract amendment and advise staff on how to proceed. Analysis: On February 22, 2011, the City entered into a professional services agreement with Biggs Cardosa Associates, Inc. (“BCA”) to provide bridge design services for federally funded bridge maintenance and rehabilitation projects throughout the City. Although the first three bridges, Warner Ave. bridge, Magnolia St. bridge, and Brookhurst St. bridge, were all relatively simple preventive maintenance City of Huntington Beach Printed on 1/26/2022Page 1 of 3 powered by Legistar™356 File #:22-061 MEETING DATE:2/1/2022 Magnolia St. bridge, and Brookhurst St. bridge, were all relatively simple preventive maintenance projects, all three were located within or adjacent to environmentally sensitive areas such as the Bolsa Chica Reserve, Magnolia Marsh, and Brookhurst Marsh. Consequently, the additional environmental requirements imposed by the various federal and state regulatory agencies impacted BCA’s contract schedule and budget as evidenced by the previously approved Contract Amendment Nos. 1 and 2,which increased the total contract budget and extended the original contract term, respectively. Although construction of the Warner Ave. Bridge Preventive Maintenance project was completed in the Summer of 2015, the California Coastal Commission required the City to revegetate a portion of the Bolsa Chica wetlands area that was impacted during the construction of the Warner Ave. bridge improvements. The Coastal Commission further required that this revegetation work be monitored and reported on by a qualified biologist for 3 years following the construction of the Warner Ave. bridge project. Accordingly, Amendment No. 3 was approved on December 21, 2015 in order to extend the contract term to February 21, 2019 and provide BCA with additional compensation to complete the environmental mitigation and monitoring work required by the Coastal Commission. In July and September of 2018, construction was completed on the Magnolia St. and Brookhurst St. Bridge Preventive Maintenance projects, respectively. To complete the remaining two bridges included in BCA's contract, Amendment No. 4 was approved February 19, 2019 authorizing: 1) a 3- year extension to complete the final design of the Admiralty Dr. and Humboldt Dr. Bridge Rehabilitation projects; and 2) additional compensation for construction engineering and environmental monitoring services when federal funding for the construction of these bridge rehabilitation projects became available. On August 15, 2019, the City was informed of the passing of BCA's Engineering Manager who had been managing the design of both the Admiralty Dr. and Humboldt Dr. bridge projects since the City directed BCA to proceed. With limited in-person meetings due to the onset of Covid in 2020, it has been a challenge to bring BCA's new project manager up to speed as both of these Huntington Harbor bridges have unique design and constructability challenges. As BCA’s contract is due to expire on February 21, 2022 staff recommends that Amendment No. 5 be approved to: 1) extend the term of the contract to February 21, 2025 to complete the design and provide construction engineering and environmental monitoring services for both the Admiralty Dr. and Humboldt Dr. Bridge Rehabilitation projects; and 2) to provide for compensation for additional utility coordination and traffic-related design services. Staff anticipates beginning construction on the Admiralty Dr. Bridge Rehabilitation and Humboldt Dr. Bridge Rehabilitation projects in fiscal years 2022/23 and 2023/24, respectively, contingent upon the availability of federal grant funding. Public Works Commission Action: Not required for this action. Environmental Status: Not applicable for this action. Strategic Plan Goal: Infrastructure & Parks City of Huntington Beach Printed on 1/26/2022Page 2 of 3 powered by Legistar™357 File #:22-061 MEETING DATE:2/1/2022 Attachment(s): 1. Amendment No. 5 to Agreement Between the City of Huntington Beach and Biggs Cardosa Associates, Inc. for Bridge Design Services. 2. Request for Contract Change Order No. 17 3. Request for Contract Change Order No. 18 City of Huntington Beach Printed on 1/26/2022Page 3 of 3 powered by Legistar™358 359 360 361 362 363 364 December 14, 2020 2010211 Mr. Jonathan Claudio City of Huntington Beach 2000 Main Street, P.O. Box 190 Huntington Beach, CA 92648 Subject: Highway Bridge Replacement and Rehabilitation Program (HBRR) Admiralty Drive Bridge over Queen Elizabeth Passage (Bridge No. 55C0282) Request for Contract Change Order No. 17, Revision 2 Dear Mr. Claudio: Biggs Cardosa Associates, Inc. (“BCA”) is hereby submitting this Request for a Contract Change Order (“CCO”) to cover additional services and costs that are required for BCA to complete the PS&E for the rehabilitation of the Admiralty Dr. Bridge. These additional services and costs include additional project management, expanded design requirements, additional utility coordination services, and design of streetlights on bridge. The requested BCA extra work items by task have been summarized in the table below: Task Description Amount Agreed to by City 0.1.1 Additional project management and administration $38,736 0.2.1 Additional PDT meetings 3.7.1 Escalation in labor rates $84,264 3.9.1 Extra submittal at 95% completion 3.12 Redesign of ADA ramps 3.14 Increased cost of supplemental independent check 3.19 Additional project development costs Subtotal $123,000 3.10b Additional WGZE cost to complete street lighting plan $4,704 Total Amount Requested for CCO #17 (Rev 2) $127,704 Please contact me to discuss this CCO No. 17 at your earliest convenience. I may be reached at 949.988.1616 (cell), or by email at tdensford@@biggscardosa.com. Sincerely, Accepted, BIGGS CARDOSA CITY OF ASSOCIATES, INC. HUNTINGTON BEACH _____________________________ for: Michael A. Thomas, SE Name: _______________________ Principal Title: ________________________ Date Signed: __________________ 365 December 13, 2021 2010211 Mr. Jonathan Claudio City of Huntington Beach 2000 Main Street, P.O. Box 190 Huntington Beach, CA 92648 Subject: Highway Bridge Replacement and Rehabilitation Program (HBRR) Humboldt Drive Bridge over Short Channel (Bridge No. 55C0284) Request for Contract Change Order No. 18 (Rev 2) Dear Mr. Claudio, Biggs Cardosa Associates, Inc. (“BCA”) is hereby submitting this Request for a Contract Change Order (“CCO”) to cover additional services and costs that are required for BCA to complete the PS&E design for the rehabilitation of the Humboldt Dr. Bridge. These additional services and costs are detailed in the attached exhibits which include additional project management, expanded design requirements, and additional utility coordination services. Most of these cost increases were caused directly or indirectly by the project schedule, which has extended significantly beyond the schedule that formed the basis for BCA’s cost proposals. Additionally, at the direction of the City, on February 9, 2021, BCA was instructed to remove W.G. Zimmerman Engineering, Inc. (“WGZE”) from the Humboldt Drive rehabilitation portion of the project and asked that BCA propose a solution. A number of firms were approached about performing the general civil engineering, traffic engineering, and assisting the City with the utility coordination and right-of-way certification documentation. No firm was willing to take on all three tasks. We approached FPL and Associates (“FPL”) about joining the team and they seemed interested in doing the work, but eventually agree to submit a proposal for only the traffic engineering portion of the work. For the utility coordination and assistance with right-of-way certification, Epic Land Solutions, Inc. (“EPIC”) was contacted and they showed interest in joining the team and subsequently submitted a scope and fee for the project. For the general civil engineering work, BCA contacted MNS Engineers, Inc (“MNS”) and presented the project, which they subsequently turned down. A third firm, BKF Engineers (“BKF”) was contacted about the project and they too turned it down. At the request of the City, BKF was asked to reconsider, which they did, but in the end, they were not interested in taking over someone else’s work. Since it is the intent for of the City to remove WGZE from the project, the City has decided that they will hire another firm to complete this work. The new firm will be working outside of this contract and directly for the City. Hence there will be no additional budget requested for another civil firm as part of this change order. A. Addition of Subconsultants Scope and fee proposals were submitted by two firms for the traffic engineering as well as the utility coordination portion of the work. In the process of searching for another firm to take on all of these tasks, it became clear that no single firm was willing or even capable of completing them. As a result, two firms agreed to join the project, each specializing in a 366 Request for Contract Change Order No. 18 (Rev 2) December 13, 2021 Page 2 different aspect of the project. Both firms have provided scopes and fees to bring the project to 100% completion. A.1. FPL and Associates, Inc FPL Engineering has decided to join the team and provide traffic engineering related services only. A fee schedule and list of assumptions related to the scope of work is provided in Exhibit A. The fee for FPL to provide these services is $62,100. A.2. Epic Land Solutions, Inc Epic Land Solutions, Inc. will provide the utility coordination and utility relocation support as outlined in their scope of work in Exhibit B. A scope of work was provided by the City which expands the role of the consultant, provided greater detail related to the utility coordination, and defines exactly the expected deliverables. Their total fee for completing these tasks is $29,625. B. Environmental Permits Per previous discussions, the City has obtained extensions from the California Coastal Commission for both the Admiralty and Humboldt Bridges. It is our understanding that the City will be responsible for renewing or applying for any environmental permits for this project moving forward. C. Summary of Items Constituting Additional Work The requested BCA extra work items by task have been summarized in the table below: Phase Description of Work Amount Agreed to by the City 0 – Project Management Increased cost to reflect additional project management and administration $30,000 0 – Project Management Increased to reflect additional PDT meetings 0 – Project Management Cost incurred in recruiting new subconsultants 3 – Construction Documents Cost for the additional 60% submittal $20,713 3 – Construction Documents Increases to reflect an escalation in labor rates over the course of the project duration $2,648 3 – Construction Documents Is for the additional cost for utility coordination and design $18,908 3 – Construction Documents Load Rating Analysis $33,098 3 – Construction Documents Coordinate with City's independent consultants $6,887 3 – Construction Documents For the additional cost of field visit for structure inspection $4,654 Remaining budget for WGZE -$34,480 Addition of EPIC Land Solution $29,625 Addition of FPL and Associates $62,100 Total $174,153 ***** The additional services requested amount for Humboldt Dr. Bridge is broken down as follows: 367 Request for Contract Change Order No. 18 (Rev 2) December 13, 2021 Page 3 FPL and Associates, Inc $62,100.00 Epic Land Solutions, Inc $29,625.00 Biggs Cardosa $82,428.00 Net Total $174,153.00 We look forward to continuing to work with you on this project. Should you have any questions or require any additional information, please do not hesitate to contact me at 714.550.4665 (office) or 949.287.8787 (cell), or by email at mthomas@biggscardosa.com. Sincerely, Accepted, BIGGS CARDOSA CITY OF ASSOCIATES, INC. HUNTINGTON BEACH _____________________________ Michael A. Thomas, SE Name: _______________________ Principal, Project Manager Title: ________________________ 368 F PL and Associates, Inc. 30 Corporate Park, Suite 401 • Irvine, California 92606 • (949) 252-1688 • Fax: (949) 252-0088 FEE SCHEDULE FOR ENGINEERING SERVICES Client: City of Huntington Beach Prime: Biggs Cardosa Date: Project: Humboldt Bridge PM: John Leimberger Summary of Proposed Services Traffic Engineering Type of Contract: T&M $194.98 Item Description Hrs/Unit Hours Hrs/Unit Hours Hrs/Unit Hours Hrs/Unit Hours Hrs/Unit Hours Hrs/Unit Hours Hrs/Unit Hours Hrs/Unit Hours 1 Traffic Control Plans - 3 Stages 4 Sheets 4 16 2 8 2 8 16 64 2 8 4 16 30 120 6,273$ 25,093.52$ 2 Temporary Traffic Signal Plans, excluding signal timing determination 2 Sheets 8 16 2 4 2 4 10 20 2 4 16 32 40 80 7,948$ 15,895.88$ 3 Electrical Service 1 Each 4 4 8 8 12 12 2,216$ 2,215.56$ 4 Restoration Signing and Striping 1 Sheet 4 4 12 12 16 16 2,396$ 2,395.52$ 5 Meetings (Kick-off, 2 Additional)3 Each 2 6 2 6 2 6 6 18 1,406$ 4,217.16$ 6 Coordination with City Engineer and Traffic Engineer 1 Each 20 20 8 8 8 8 36 36 7,623$ 7,623.40$ 7 Construction Support 1 Each 16 16 4 4 20 20 4,435$ 4,434.52$ Mileage (10 trips x 40 mi. x $0.56)-$ 224$ Total 7 Sheets 82 18 12 64 28 18 40 40 302 $62,100 Assumptions & Exclusions 1 - Traffic control plans will be prepared in compliance with the California Manual on Uniform Traffic Control Devices. 2 - Construction stages will be developed by Biggs Cardosa and will be agreed to by the City prior to FPL initiating design. 2 temp. signals are assumed per contractor's 2-stage bridge widening concept. 3 - Assume traffic control plans prepared for bridge construction include utility and other construction work by Biggs Cardosa. Separate stages exclusively for utility and other construction is excluded. 4 - Biggs Cardosa will coordinate with Fire and Police Departments. 5 - Coordination with agencies having jurisdiction (except for City Engineer and Traffic Engineer) is the responsibility of Biggs Cardosa. FPL will coordinate with the City Engineer and Traffic Engineer. 6 - Signing and striping restoration plans will reinstate current signing and striping. 7 - Participation in community meetings is excluded. 8 - Temporary street lighting design is excluded. Exception: temporary signal equipment may have lighting included. 9 - Civil design and utility coordination is excluded. 10 - Signal timing sheet preparation and any traffic analysis for the timing of the temporary traffic signals is exluded. Total Cost May 6, 2021 Classification:Project Manager Alex Zupanski PIC FP Lee Quality Manager Dick Ivy Senior Engineer II, Eddie Tang Senior Engineer II, Henry Trinh Senior Engineer I, Alex Eapen Associate Engineer Huy Trinh Assistant Design Engineer Hours / Unit Total Hours Cost / Unit$152.99 $116.99 Units Rates:$247.91 $259.97 $222.66 $216.16 $216.16 Exhibit A 369 370 371 372 373 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-062 MEETING DATE:2/1/2022 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Sean Joyce, Interim City Manager PREPARED BY:Dahle Bulosan, Chief Financial Officer Sean Crumby, Director of Public Works Subject: Approve the purchase of 23 replacement vehicles from National Auto Fleet Group using lease financing and authorize the City Manager to enter into all documents necessary to lease finance the purchase of the vehicles Statement of Issue: City Council approval is requested to lease finance the purchase of 23 replacement vehicles from National Auto Fleet Group and to authorize the City Manager to enter into any and all documents necessary to finance the purchase of the vehicles. Financial Impact: The FY 2021/22 Adopted Budget includes $200,000 in the Equipment Replacement Fund for estimated annual debt service payments to lease finance 23 replacement vehicles totaling $867,780. This funding level was based on interest rates at the time the budget was developed. Interest rates fluctuate on a daily basis and final lease financing rates and costs will be determined prior to the close of escrow. Staff recommends financing the vehicles through a five-year lease purchase agreement. Based on the current estimated interest rate of 2.375 percent, the annual debt service payment would be $186,115. Please note the interest rate may be subject to change based on market conditions at the time of close of escrow. Recommended Action: Approve the purchase of 23 replacement vehicles utilizing 5-year lease financing at an interest rate not to exceed 2.375 percent and authorize the City Manager to enter into all documents necessary to lease finance the purchase of the vehicles and take all administrative and budgetary actions necessary to complete the purchase and financing. Alternative Action(s): Do not approve the recommendation and direct staff accordingly. Analysis: The proposed vehicle purchases will replace aging Police Department vehicles that have been in service for an average of 12 years. The replacement vehicles have been selected by the City's Fleet Management Division after researching the most fuel efficient and cost effective vehicles currently available. These new vehicles will effectively reduce our annual maintenance cost and fuel consumption in the Police Department Fleet. The vehicles being acquired conform with the City’s plan to transition the City’s fleet to more sustainable hybrid electric, alternative, and clean fuel City of Huntington Beach Printed on 1/26/2022Page 1 of 2 powered by Legistar™374 File #:22-062 MEETING DATE:2/1/2022 plan to transition the City’s fleet to more sustainable hybrid electric, alternative, and clean fuel vehicles. All of the replacement vehicles will be obtained from National Auto Fleet Group. The pricing for the vehicles is competitive, with bids having been obtained through Sourcewell, a cooperative purchasing program that complies with Municipal Code 3.02.190. City Council approval is also requested for the City Manager, or his designee, to enter into any and all documents necessary to finance the purchase of the vehicles and all related equipment. The City’s existing Master Lease Agreement would need to be amended to include the lease-purchase of these vehicles at an estimated cost of $867,780. Based on the current estimated 2.375 percent interest rate, annual debt service payments would equal $186,115 over the five-year period. The purchase of these vehicles are necessary to continue to provide essential services to the residents and visitors of Huntington Beach. As the FY 2021/22 Adopted Budget contains funding for the lease financing of this equipment, staff recommends proceeding with the replacement of these important items as soon as possible to ensure the continuity of essential City services. Environmental Status: Not applicable Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Lease Documents 2. Master Lease-Purchase Agreement 3. Opinion of Counsel City of Huntington Beach Printed on 1/26/2022Page 2 of 2 powered by Legistar™375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-074 MEETING DATE:2/1/2022 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Sean Joyce, Interim City Manager PREPARED BY:Sean Joyce, Interim City Manager Subject: Orange County Power Authority (OCPA) Default Rate Selection Statement of Issue: In February 2021, the City Council approved its Founding Member participation in the Orange County Power Authority (OCPA) (see Attachment 1 for accompanying staff report). The City finalized its decision and joined in Dec. 2020. In April 2022, OCPA is expected to launch service to municipal and commercial customers in the cities of Huntington Beach, Buena Park, Fullerton, and Irvine. In October 2022, OCPA will phase in all residential customers within its service territory. In December 2021, the OCPA Board of Directors approved the addition of the County of Orange unincorporated areas as its fifth member agency and anticipates launching its service to all customers in 2023. At full launch, OCPA’s service territory will cover approximately 366,000 retail service accounts (governmental, businesses and residents), making it the sixth-largest community choice energy provider in the State of California. As a member of the OCPA, the City of Huntington Beach may select a default energy product offering prior to OCPA’s distribution of its first customer enrollment notice describing the OCPA Program, informing customers of their opt-out rights to remain with utility bundled generation service in early February 2022. OCPA’s energy product offerings include the Basic Choice product, which will include 38.5% renewable energy content in 2022 that increases over time; the Smart Choice product, which will include at least 69% renewable energy content in 2022 that increases over time; and the 100% Renewable Choice product, which will maintain a 100% renewable energy content. The “default product offering” is the power choice that will go into effect unless the consumer makes a different choice. All customers will have the option to upgrade, downgrade, or opt-out and return to service with Southern California Edison (SCE) at any time. Staff is seeking direction from the City Council on the most appropriate selection of a “default energy product offering” for all customers in the City. The following are the three energy product offerings: 1. Basic Choice: If the City selects 38.5% renewables as its default energy product offering, then all Huntington Beach customers will automatically be enrolled in the Basic Choice product City of Huntington Beach Printed on 1/26/2022Page 1 of 4 powered by Legistar™422 File #:22-074 MEETING DATE:2/1/2022 all Huntington Beach customers will automatically be enrolled in the Basic Choice product (38.5% renewables) unless the customer opts-up to either the Smart Choice product (at least 69% renewables) or 100% Renewable Choice product or the customer opts-out of OCPA service altogether and stays with SCE. 2. Smart Choice: If the City selects at least 69% renewables as its default energy product, then all Huntington Beach customers will automatically be enrolled in the Smart Choice product (at least 69% renewables) unless the customer opts-up to the 100% Renewables product, opts- down to the Basic Choice product, or the customer opts-out of OCPA service altogether and stays with SCE. 3. 100% Renewable Choice: If the City selects 100% renewables as its default energy product, then all Huntington Beach customers will automatically be enrolled in the 100% Renewables product unless the customer opts-down to either the Basic Choice or the Smart Choice products or the customer opts-out of OCPA service altogether and stays with SCE. OCPA Status Report - Default Energy Product Offerings ·Buena Park: Selected Smart Choice product (at least 69% renewables) as a default energy product offering for their residential and commercial customers on January 25, 2022. The City has not yet made a determination concerning the default energy product offering for City facilities. ·Irvine - Selected Smart Choice product (at least 69% renewable) as a default energy product offering for their residential and commercial customers and is expected to take final vote on February 8, 2022. The Irvine City Council also decided that all City facilities will default into the 100% Renewable Choice product. ·Fullerton - Will choose a default Energy Product on February 1, 2022 ·Huntington Beach - Will choose a default Energy Product on February 1, 2022 Low-income qualified customers (customers currently enrolled in the California Alternate Rates for Energy (CARE) and the Family Electric Rate Assistance (FERA) discount programs will continue to receive all benefits and discounts as an OCPA customer. Mayor Pro Tem Mike Posey serves as the City’s member on OCPA Board of Directors; Councilmember Dan Kalmick is the City’s alternate. As the City’s representative, Mayor Pro Tem Posey has been integrally involved on the Board of OCPA since its inception. As such, Mayor Pro Tem Posey may wish to supplement this report with comments of his own and may offer a recommendation for action this evening. Financial Impact: The OCPA Board approved rate design set the 2022 rates for Basic Choice at parity to SCE, assuming all OCPA member agencies select Smart Choice as the default service offering. This approved rate design allows for a smaller premium for Smart Choice (estimated at SCE rate plus a penny per kWh or 3.7% above SCE for average residential customer) and 100% Renewable Choice (estimated at SCE rate plus 1.5 cents per kWh or 5.6% above SCE for average residential customer). In addition, the OCPA Board also approved the Net Energy Metering enhancements from the SCE City of Huntington Beach Printed on 1/26/2022Page 2 of 4 powered by Legistar™423 File #:22-074 MEETING DATE:2/1/2022 In addition, the OCPA Board also approved the Net Energy Metering enhancements from the SCE NEM program, as follows: 1. Set NSC rate at 10% above the incumbent IOU NSC rate 2. Provide monthly billing to NEM customers 3. Set all customers annual true-up period to April OCPA Board Approved Rate Design Bill Impacts For a typical residential customer, the bill impacts for the three OCPA product offerings are estimated by OCPA as follows: Estimated Typical Residential Bill Comparison Basic Choice, 425 KWh Per Month Charge Type OCPA SCE Difference Generation $41.51 $49.96 ($8.45) SCE Surcharges$8.45 $0.00 $8.45 SCE Delivery $64.44 $64.44 $0.00 Total $114.40 $114.40 $0.00 0.0% Estimated Typical Residential Bill Comparison Smart Choice, 425 KWh Per Month Charge Type OCPA SCE Difference Generation $45.76 $49.96 ($4.20) SCE Surcharges$8.45 $0.00 $8.45 SCE Delivery $64.44 $64.44 $0.00 Total $118.65 $114.40 $4.25 3.7% Estimated Typical Residential Bill Comparison 100% Renewable Energy Choice, 425 KWh Per Month Charge Type OCPA SCE Difference Generation $47.89 $49.96 ($2.07) SCE Surcharges$8.45 $0.00 $8.45 SCE Delivery $64.44 $64.44 $0.00 Total $120.78 $114.40 $6.38 5.6% The detailed rate design analysis is included in the attached January 11, 2022 OCPA staff report (Attachment 2). In light of the lack of direct staff involvement in the development of the OCPA rate design analysis attached here, OCPA staff will attend our meeting to discuss the options and answer related questions. Recommended Action: Select Basic Choice, Smart Choice, or 100% Renewable Choice as the default energy productCity of Huntington Beach Printed on 1/26/2022Page 3 of 4 powered by Legistar™424 File #:22-074 MEETING DATE:2/1/2022 Select Basic Choice, Smart Choice, or 100% Renewable Choice as the default energy product offering for residential and commercial customers in Huntington Beach, and consider the same or a different energy product offering (and corresponding rate and environmental benefits) for the City’s municipal energy accounts. Alternative Action(s): The following options are available to the City Council: 1. Select 100% Renewable as a default energy product offering for all OCPA Customers in Huntington Beach; 2. Select Smart Choice (at least 69% renewables) as a default energy product offering for all OCPA Customers in Huntington Beach; or 3. Select Basic Choice (38.5% renewables) as a default energy product offering for all OCPA Customers in Huntington Beach. Staff has no specific recommendation. Analysis: The following is OCPA’s rate design analysis in the attached January 11, 2022 report. Under the approved rate design scenario (scenario 3), the cost impacts for each of the default product offering for the City’s municipal energy accounts are estimated as follows: Cost Increase ($/kWh)Cost Increase ($) Basic Choice 0 0 Smart Choice .01 Approx. $141k 100% renewable Choice .015 Approx. $212k Over the past decade, the City has worked diligently to reduce energy consumption. The cost spent on energy in 2019 was approximately $3.0M. This expenditure has been reduced from what was $4.7M in 2014. This was done largely through projects such as the LED conversion of City streetlights and the solar panels that were installed at City facilities. Even after paying for the debt service on these projects, the savings far exceed the cost increase of implementing renewable energy. This important policy matter before you represents an opportunity to extend the City’s commitment to environmental stewardship. Environmental Status: Not applicable Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. February 1, 2021 Request for City Council Action Report 2. OCPA January 11, 2022 Report City of Huntington Beach Printed on 1/26/2022Page 4 of 4 powered by Legistar™425 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:21-085 MEETING DATE:2/1/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Oliver Chi, City Manager PREPARED BY:Travis K. Hopkins, Assistant City Manager Subject: Consider Maintaining Membership with the Orange County Power Authority (OCPA), a Community Choice Energy (CCE) Joint Power Authority (JPA) Statement of Issue: On December 10, 2020, the City approved the required Ordinance, Resolution, and JPA agreement necessary for Huntington Beach to join the Orange County Power Authority (OCPA), a Community Choices Energy (CCE) Joint Power Authority (JPA). The decision was made to join the CCE at that time for a variety of reasons, including the following: ·The potential for ongoing electrical power cost savings when compared against rates charged by SCE. ·By joining in December 2020, the City would be considered a Founding Party member, which places Huntington Beach onto the JPA Executive Board Committee. ·The agreements expressly allowed for any participating agency to withdraw from the JPA for any reason and without any liability or cost by March 1, 2021 (subsequently, the withdrawal deadline was extended to April 1, 2021). Given those factors, as part of the determination to join the OCPA, the City Council also directed that staff complete a full assessment of the proposed JPAs feasibility plan, and bring those findings back for review at the City’s February 1, 2021 meeting. At that time, the City Council would make a final determination on whether or not to participate in the CCE. Subsequently, staff coordinated with MRW & Associates (MRW), an independent firm that was hired to assess the OCPAs implementation plan. A summary of MRWs findings (see attached report assessing OCPA) is as follows: ·The OCPA CCE is expected to be financially feasible. City of Huntington Beach Printed on 12/8/2021Page 1 of 6 powered by Legistar™426 File #:21-085 MEETING DATE:2/1/2021 ·The MRW analysis confirmed that OCPA is projected to be able to provide power at rates lower than Southern California Edison. ·The MRW assessment identified that the financial margins when comparing projected OCPA rates against SCE rates are the smallest during the first 2-3 years of operation , and that the margins increase over substantially over time. ·The financial analysis found that OCPA’s Implementation Plan is generally sound, developed utilizing reasonable and conservative assumptions. MRW did identify that the projections for the amount of initial working capital that OCPA would need could be slightly understated. o Of note, given that the City of Irvine is assuming all of the initial risk / start-up costs, this does not seem to of particular concern regarding the viability of OCPA. ·The OCPA agreement helps minimizes potential financial risk for Huntington Beach by specifically stating that the agencies are not required to make any financial contributions or payments to OCPA, and that OCPA has no right to require a contribution or payment. ·A benefit of remaining a member of OCPA is that the City of Irvine has agreed to provide up- front funding for implementation, start-up costs, as well as collateral funds in order to secure all of the needed initial financing. At this time, the City Council has the option to maintain membership with the OCPA JPA , or withdraw from the CCE organization with no cost or liability impacts. Financial Impact: There is no direct fiscal impact from joining the OCPA JPA. Per the JPA agreement, participating agencies are not required to make any financial contribution. Rather, the City of Irvine has agreed through the JPA agreement to cover all initial start-up costs associated with establishing the new OCPA entity. Those costs that Irvine has agreed to cover include the following: ·OCPA agency start-up costs, which are estimated at $2.5M. ·Initial working capital cash collateral of up to $5M for costs associated with procuring a working capital loan. Under the OCPA JPA agreement, Founding Party members have no financial obligation to the CCE entity being formed, which provides financial protections for Huntington Beach. The OCPA JPA agreement specifically states that the debts of the OCPA cannot be transferred to its member cities, nor can the OCPA compel a member city to financially contribute to the OCPA. Therefore , the City’s General Fund should not be impacted by maintaining membership, nor will membership impact the City’s credit rating. Recommended Action: The City Council has the following options: City of Huntington Beach Printed on 12/8/2021Page 2 of 6 powered by Legistar™427 File #:21-085 MEETING DATE:2/1/2021 A) Maintain membership in the Orange County Power Authority Community Choice Energy Joint Power Authority, OR B) Withdraw from the Orange County Power Authority, and direct staff to complete all requisite documents necessary to terminate our participation in the CCE JPA. Alternative Action(s): Do not select either of the options and direct staff accordingly. Analysis: In 2018, the City of Irvine initiated a feasibility study to assess the possibility of implementing a CCE program for their community. Those efforts evolved over the past two years, and in 2020, Irvine extended an invitation to all Orange County municipalities, asking interested parties to consider joining them in forming a CCE JPA, which has since been named the Orange County Power Authority (OCPA). A total of five (5) agencies are currently part of the JPA, including the cities of Fullerton, Buena Park, Lake Forest, Huntington Beach, and Irvine. These five jurisdictions are considered the Founding Party member agencies in the JPA and will be placed on the JPAs Executive Board Committee. Also of note, per OCPA staff, there are currently up to 10 other cities reviewing participation in OCPA. CCE Background CCEs are a mechanism authorized in California in 2002 by Assembly Bill 117, whereby local electrical service customers are provided with options when it comes to determining from where they purchase their power. Under the CCE set-up, customers can continue to procure their electrical power through their current utility provider (in the case of Huntington Beach, that would be Southern California Edison), or they can opt to have a local municipal government (or a coalition of local governments) procure electrical power on their behalf. Typically, CCEs are established with larger environmental or social goals in mind, such as increasing the share of power procured from renewable sources. In addition, CCEs have been shown to provide slight cost savings (around 1-2% decrease) over traditional investor-owned utility operations. Of note, establishing a CCE does not mean completely severing ties with the investor-owned utility, given that the utility agency still owns and manages the distribution lines that transmit electrical power to homes and businesses. Further, the utility company still meters each customer’s power usage, and continues to send customers their electrical bill. Under the CCE model, what changes is the entity which purchases electricity on behalf of the customer; rather than the utility company performing that role, the responsibility is transferred to the newly-formed local entity. The Orange County Power Authority The City of Irvine led an effort that in December 2020 to create a regional CCE Joint Power Authority named the Orange County Power Authority (OCPA). Currently, the OCPA consists of five (5) City of Huntington Beach Printed on 12/8/2021Page 3 of 6 powered by Legistar™428 File #:21-085 MEETING DATE:2/1/2021 founding member agencies; Buena Park, Fullerton, Irvine, Lake Forest, and Huntington Beach. Additionally, currently there are up to 10 other Orange County cities that are considering joining the OCPA. Of note, the original five members of OCPA, which includes Huntington Beach, are Founding Party Members and automatically placed on the JPA’s Executive Committee. Any other agency that joins will be considered Additional Party member. Given the uncertain nature of which agencies are looking to join the JPA, it is difficult to model precise fiscal data for the proposed OCPA entity. However, Irvine has commissioned a detailed fiscal analysis to assess various possible scenario through a 10-year pro forma document, a copy of which is included as an attachment to this report. Per that assessment, the proposed OCPA was identified as being financially viable, with the following key summary findings: ·OCPA would be able to repay the City of Irvine’s start-up and working capital loans, and build up proper financial reserves, during the first 5-7 years of operation. ·After initial debt service costs are repaid, it is estimated that a significant amount of net income will be available to the OCPA for use towards customer program or additional electrical rate discounts. OCPA Financial and Operational Analysis The City Council directed staff to provide a financial analysis of the OCPA and present to the City Council prior to the JPA no-risk opt out deadline. At the City’s request, MRW & Associates (MRW) completed an independent analysis of OCPA’s financial viability, reviewed the OCPA Implementation Plan, and provide an analysis of risks and benefits if of remaining in the OCPA. MRW’s report found that OCPA provides a financially viable option for the City to participate in a CCE with lower risk than establishing a stand-alone CCE with the following key findings: Financial Analysis The MRW independent analysis performed found the OCPA program is financially feasible, confirming that the OCPA’s projected margin between the OCPA operating costs to provide power is projected lower than the SCE energy generation rate. This means OCPA will be able to provide energy wither at a lower rate or competitive with SCE. The tightest margins will occur during the first few years of operation and will increase over time. The MRW model projects the margin between OCPA power costs and SCE power costs will start near 1 cent/Kwh, and will increase to over 3.0 cents/kwh over the next 10 years. MRW states that a CCE is feasible, but is not risk-free. OCPA will be participating in a competitive power market and subject to evolving state requirements and regulations. While an OCPA rate discount in the long run should be achievable, market prices and SCE rate volatility could combine to, in some isolated years, occasionally prevent the CCA from offering lower rates than SCE. Implementation Plan MRW found that the OCPA Implementation plan uses assumptions that are generally sound, confirming that the underlying customer phase-in, assumed power prices, operating costs, and City of Huntington Beach Printed on 12/8/2021Page 4 of 6 powered by Legistar™429 File #:21-085 MEETING DATE:2/1/2021 CCA revenues are all reasonable or conservative. MRW stated that they feel the amount of collateral provided by Irvine is lower than what may be required when OCPA secures the financing. Opt-Out Risk Customers may choose to opt-out of a CCA service before, during, or even after a CCE is formed. Most recent CCEs launched have only experienced very modest opt-out rates of around 2-3%. MRW modeled a high opt-out rate of 30%, and even at that level, the CCE remained financially viable. Governance Model Options The MRW evaluation found that joining the a JPA such as the OCPA would provide benefits from increased negotiation and buying power for power purchases, access to better financing terms for borrowing, and operation efficiencies gained by combining management and operating functions such as billing and accounting. The tradeoff to the benefits of joining a JPA are that decision making will be allocated amongst the participating parties as opposed to a single agency entity. A benefit to the OCPA JPA, participating agencies are not required to make any financial contribution. Rather, the City of Irvine has agreed through the JPA agreement to cover all initial start-up costs associate with establishing the new OCPA entity as well as cash collateral up to $5 million for power purchase financing. If the City chose to form a stand-alone CCE enterprise they would be required to fund the start-up capital and financial guarantee. By participating with OCPA, these financial burdens are being met by Irvine and not required of Huntington Beach. Greenhouse Gas (GHG) In order for OCPA to achieve GHG saving, the CCE will be required to acquire energy above the state renewable requirements. This would include purchasing energy from hydroelectric facilities (which is carbon-free but do not qualify as “renewable” under state law) or increase the renewable content of its electricity supply above that required by the state. The MRW independent analysis confirms the OCPA studies and implementation plan is generally sound and that maintaining membership is viable option for the City of Huntington Beach should the Council choose to participate in a CCE. Additionally, maintaining membership in OCPA, will provide the additional benefits of no implementation costs, reduced financial risk and reduced administrative and ongoing management costs. Environmental Status: Not applicable. Strategic Plan Goal: Enhance and maintain high quality City services Attachment(s): 1. Community Choice Energy for the City of Huntington Beach and Review of Orange County Power Authority City of Huntington Beach Printed on 12/8/2021Page 5 of 6 powered by Legistar™430 File #:21-085 MEETING DATE:2/1/2021 2. OCPA Implementation Plan 3. Orange County Power Authority Joint Powers Agreement City of Huntington Beach Printed on 12/8/2021Page 6 of 6 powered by Legistar™431 ORANGE COUNTY POWER AUTHORITY Staff Report – Item XX --------------------------------------------------------------------------------------------------------------------- To: Orange County Power Authority Board of Directors From: Brian Probolsky, Chief Executive Officer Tiffany Law, Chief Financial Officer John Dalessi and Kirby Dusel, Pacific Energy Advisors Max Bernt, NewGen Strategies & Solutions Subject: ADOPT RESOLUTION APPROVING INITIAL OCPA RATE DESIGN; AUTHORIZE OCPA BASIC RATES ADJUSTMENTS EFFECTIVE APRIL 2022; APPROVE A NET SURPLUS COMPENSATION RATE FOR NET ENERGY METERING CUSTOMERS; APPROVE THE ESTABLISHMENT OF MONTHLY BILLING FOR ALL NET ENERGY METERING CUSTOMERS; APPROVE THE ESTABLISHMENT OF ANNUAL TRUE-UP PERIOD TO APRIL FOR ALL NET ENERGY METERING CUSTOMERS Date: January 11, 2022 --------------------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Approve initial OCPA rates contained in Attachment A (Scenario 3) such that OCPA’s Basic Choice rates are set at parity to Southern California Edison (“SCE”) rates and all OCPA member agencies will elect Smart Choice as the default service offering. 2.Authorize staff to adjust OCPA Basic Choice rates contained in Attachment A (Scenario 3) as soon as practicable after the SCE March 2022 rate change to maintain rate parity for OCPA Basic Choice customers effective April 2022. Staff shall place a report on the agenda of the next regular board meeting explaining the adjustment and requesting that the board ratify the adjusted initial OCPA rates. 3. Approve a Net Surplus Compensation (“NSC”) rate for Net Energy Metering (“NEM”) customers at 10% above SCE’s NSC rate. 4. Approve the establishment of monthly settlements and billing for all NEM customers. 5. Approve the establishment of annual true-up period to April for all NEM customers. BACKGROUND The Orange County Power Authority (“OCPA”) will begin serving its first phase of customers in April 2022. These customers currently receive bundled (generation and delivery) electric service from SCE under a wide variety of rate schedules, which generally vary based on broad customer end use classifications (e.g., residential, commercial, industrial, agricultural, etc.) and other service characteristics. A rate schedule or “tariff” specifies customer eligibility, describes service terms and conditions, and defines how customers will be charged for electricity consumption and the applicable rates. Each rate schedule includes one or more types of charges, which may include fixed monthly charges, charges based on the total kilowatt-hour (“kWh”) consumed in a billing period or time-of-use period, or charges based on the highest potential demand the customer could register regardless of actual consumption during a billing period. The rate structures applicable to SCE customers range in complexity, with generally simpler structures applicable to residential and other small commercial customers and more complex structures applicable to large commercial and industrial customers. 432 Customers are classified based on end-use and other service characteristics to represent groups of customers with relatively similar cost-of-service profiles. SCE has established 5 customer classes that include: residential (D), commercial and industrial (GS), agricultural and pumping (PA), street lighting and traffic control (LS and TC) end uses. Typical end uses within the customer classes are described below: Rate Group Example End Use D General residential uses GS Commercial establishments, industrial factories, electric vehicle fleets, religious facilities PA Agricultural and water or sewage pumping LS Street lighting TC Traffic signals Each rate class has a number of rate schedules that provide options to customers and services for various requirements. In total, there are approximately 190 rate schedules under which customer within the OCPA area currently take service. Once the customers begin receiving generation service from OCPA, the customers will be charged OCPA’s rates for generation service and SCE’s rates for delivery services. To provide customers with cost parity in their monthly electric bills relative to SCE service, OCPA rates will be lower than the generation rates charged by SCE to offset the inclusion of certain surcharges or “exit fees” (Cost Responsibility Surcharges) that SCE will apply to OCPA customer bills. These surcharges include the Power Charge Indifference Adjustment (“PCIA”), which is intended to allow SCE to recover certain above market costs of pre-existing generation commitments made on behalf of the customers, and the Franchise Fee Surcharge, which is intended to make SCE whole for reduced franchise fees that would occur when it no longer charges customers for generation services. These surcharges will be applied by SCE to monthly customer electricity usage of OCPA customers and charged on per kWh basis. The surcharges are included in the monthly electric bill for each customer along with other SCE charges related to electric delivery services as well as OCPA generation charges. Consistent with good utility practice, OCPA rates must provide the revenue needed to operate and sustain a viable utility enterprise. Electric rates are typically designed to recover the revenue requirement projected for a twelve-month “test year.” The fiscal year ending June 2023 was used as the test year for ratesetting purposes, meaning that the rates were designed to recover a revenue requirement consistent with sales and expenditures for the period from July 2022 through June 2023. The proposed rates were designed to yield revenues sufficient to collect OCPA’s projected annual power supply and other operating costs, debt service costs, and a planned Rate Stabilization Reserve contribution, which is intended to meet debt service coverage requirements specified in OCPA’s credit agreement. The approximately 2% planned reserve contribution reflected in the proposed rates is the minimum necessary to meet debt service coverage requirements (“DSCR”) on a pro forma (i.e., projected) basis. The minimum is being proposed to keep OCPA rates as competitive as possible during service commencement; however, setting rates to achieve minimum reserve levels leaves little room for contingencies, and adverse variances on power supply costs or sales revenues during the year could necessitate rate changes. As part of ratesetting, OCPA must set rate policies for customers who generate their own electricity and participate in the NEM program. In development of a NEM program recommendation, OCPA reviewed customers’ status with the incumbent investor-owned utility (“IOU”) and best practices 433 of community choice aggregators (“CCAs”) in the California region. Financial projections shown assume OCPA follows current SCE NEM practices. In November 2021, SCE updated its Energy Resource Recovery Account (“ERRA”) forecasts for CY 2022 electric generation rates and PCIA. These filings mean that implementation of the 2022 SCE rate changes may be delayed until March 1, 2022. The initial OCPA rates for April 2022 contained in Attachment A are designed based on SCE’s November 2021 ERRA forecasts. RATE DESIGN ANALYSIS AND DISCUSSION This memorandum discusses three potential rate scenarios to recover the revenue requirement projected for the fiscal year ending June 2023, including the recommended scenario to set initial Basic Choice rates at parity to SCE, and all member agencies will be defaulted in the Smart Choice service offering. Each would yield sufficient revenues on a forecast basis with a 2% Rate Stabilization Reserve to insulate against market volatility and supply chain issues, but they differ in how the revenue requirement is allocated among customers taking service under the three product offerings. In each scenario, operating costs were projected based on contracts OCPA has executed to date and the expected cost of procuring energy and other wholesale services needed to supply OCPA’s customers with the resource mix associated with three energy product offerings: these include the Basic Choice product, which will include 38.5% renewable energy content in 2022 that increases over time; the Smart Choice product, which will include at least 69% renewable energy content in 2022 that increases over time; and the 100% Renewable Choice product, which will maintain a 100% renewable energy content. The sales projections are adjusted for expected customer opt-out rates and participation rates for each of the three product offerings. Staff recommends that OCPA adopt identical rates 1 for initial Basic Choice as those offered by SCE, net of surcharges and the PCIA exit fee, so that there will be no change in customer’s electric bill upon transferring to OCPA service. This approach facilitates comparability and focuses the comparison on other factors such as local accountability, customer service, and decarbonization of the electric power supply. This rate design approach is typical for newly formed CCA programs and ensures compatibility with SCE’s billing process. OCPA has designed its initial Basic Choice rates, as shown in Attachment A, by subtracting the applicable SCE surcharges from the generation service energy charges on each rate schedule. For purposes of this initial rate design, staff used the SCE generation rates and surcharges that are expected to be in effect as of April 1, 2022 when OCPA begins service to its customers. While we anticipate that revisions in SCE generation rates will take place on March 1, 2022, the new SCE rates will not be released to the public until February 2022 when SCE makes a consolidated rate filing with the Commission. Therefore, staff is seeking authorization to adjust OCPA initial Basic Choice rates as soon as practicable after the March 2022 rate change to maintain cost parity for OCPA customers. In addition, OCPA will have greater certainty regarding its power supply costs at that time as it will have largely completed its initial power supply contracting efforts. Staff will test the revised rates to ensure they are sufficient to recover OCPA’s revenue requirements. If staff assesses that the revised rates would yield sufficient revenues to meet OCPA’s revenue requirements, the rates will be put into effect on April 1, 2022 or as soon thereafter as practicable. Otherwise, staff would recommend a rate design revision for the Board’s consideration at that time. OCPA would determine rate schedule eligibility and other general terms of service by mapping each OCPA rate schedule to an equivalent SCE rate schedule; customer contacting SCE to change 1 SCE generation rates can be found at: https://www.sce.com/regulatory/tariff-books/rates-pricing-choices 434 rate schedules (e.g., selection of an optional time-of-use rate) would automatically be placed on a corresponding OCPA rate schedule. Other terms of electric service set forth the in otherwise applicable SCE tariff would continue to apply to OCPA customers. Scenario 1 Overview Scenario 1 sets the initial rates for Basic Choice at a level sufficient to cover OCPA’s revenue requirement, with rates for Smart Choice and 100% Renewable Choice set at a cost-based premium associated with the additional renewable energy needed to supply these products. Based on current projections, Basic Choice rates would reflect a small premium relative to SCE rates. Scenario 1 reflects the assumption that the City of Irvine selects Smart Choice as the default product offering, while the other member Cities select Basic Choice as the default product offering. The preliminary rates designed for Scenario 1 would yield projected revenues of $41.9 million in FY 2022 and $281.3 million in FY 2023 (the test year), using electric load forecasts reflective of the planned phased-in customer enrollment schedule. The pro forma projections of annual OCPA revenues and expenses for Scenario 1 are shown in Figure 1. Note that the planned Rate Stabilization Reserve contribution is included as a component of the revenue requirement in Section III and that the surplus or deficit shown in section V is net of the reserve contribution. For purposes of the pro forma projections, the proposed rates are assumed to be held constant during the forecast period and only includes sales associated with the current OCPA member communities. Figure 1 Annual Pro Forma Projections Orange County Power Authority 28-Dec-21 Year Ending:2022 2023 2024 2025 2026 I. Revenue Base Rate Revenue 40,757,364 273,617,989 323,356,372 324,973,154 326,598,020 Product 2 Premium 1,130,262 7,188,705 8,125,434 8,166,061 8,206,891 Product 3 Premium 46,833 466,792 703,621 707,139 710,675 Total Revenue 41,934,459 281,273,486 332,185,427 333,846,354 335,515,586 II. Operating Expenses Power Supply 32,363,764 264,289,590 299,356,125 283,470,381 278,613,059 Staff 1,492,926 4,307,170 5,275,180 5,538,938 5,815,885 Mandatory Compliance Mailers 35,483 325,540 581,565 591,761 609,514 Other Operating Expenses 1,638,967 2,367,777 1,436,270 1,473,380 1,517,581 Data Management - 2,066,392 3,229,246 3,245,577 3,456,436 Service Fees 54,626 436,647 527,849 530,468 533,102 Uncollectibles/Other 209,672 1,406,367 1,660,927 1,669,232 1,677,578 Subtotal Operating Expenses 35,795,438 275,199,484 312,067,161 296,519,737 292,223,155 Operating Margin 6,139,022 6,074,002 20,118,266 37,326,617 43,292,431 III. Financing Interest Payments 234,000 406,800 448,800 429,900 313,800 Principal Payments - - - 3,600,000 7,200,000 Reserve Contribution 838,689 5,625,470 6,643,709 6,676,927 6,710,312 Subtotal Financing 1,072,689 6,032,270 7,092,509 10,706,827 14,224,112 IV. Total Revenue Requirement 36,868,127 281,231,754 319,159,670 307,226,564 306,447,267 V. Surplus/(Deficit)5,066,332 41,732 13,025,757 26,619,790 29,068,319 435 Scenario 1 Rate Design The initial OCPA rates for Basic Choice were designed such that each rate component is an equal percentage of the corresponding SCE generation rate, after accounting for the surcharges that SCE will assess on customer bills. For customers electing the Smart Choice product, an additional charge of 0.5 cent per kWh will apply relative to Basic Choice rates. This premium includes the estimated incremental cost of offering a renewable energy mix of at least 69% in 2022 relative to the 38.5% renewable energy mix of the default Basic Choice product. For customers electing the 100% Renewable Choice product, an additional charge of 1.0 cent per kWh will apply relative to the Basic Choice rates. This premium includes the estimated incremental cost to OCPA of offering a 100% renewable energy product relative to the 38.5% renewable energy mix of the default Basic Choice product. Scenario 1 Bill Impacts Current estimates suggest that in Scenario 1, despite OCPA offering lower generation rates, OCPA customers will face a small bill premium for Basic Choice service due to SCE’s imposition of the Cost Responsibility Surcharge. For a typical residential customer, the bill impacts for the three OCPA product offerings are estimated as follows: Estimated Typical Residential Bill Comparison Basic Choice, 425 KWh Per Month Charge Type OCPA SCE Difference Generation $44.06 $49.96 ($5.90) SCE Surcharges $8.45 $0.00 $8.45 SCE Delivery $64.44 $64.44 $0.00 Total $116.95 $114.40 $2.55 2.2% Estimated Typical Residential Bill Comparison Smart Choice, 425 KWh Per Month Charge Type OCPA SCE Difference Generation $46.18 $49.96 ($3.78) SCE Surcharges $8.45 $0.00 $8.45 SCE Delivery $64.44 $64.44 $0.00 Total $119.07 $114.40 $4.67 4.1% Estimated Typical Residential Bill Comparison 100% Renewable Energy Choice, 425 KWh Per Month Charge Type OCPA SCE Difference Generation $48.31 $49.96 ($1.65) SCE Surcharges $8.45 $0.00 $8.45 SCE Delivery $64.44 $64.44 $0.00 Total $121.20 $114.40 $6.80 5.9% 436 Scenario 2 Overview Scenario 2 set the initial rates for Basic Choice at parity to SCE. Rates for Smart Choice and 100% Renewable Choice include a larger premium as compared to Scenario 1, which yields revenues necessary for OCPA to meet its revenue requirements while keeping the rates for Basic Choice at parity to SCE. Scenario 2 reflects the assumption that the City of Irvine selects Smart Choice as the default product offering, while the other member Cities select Basic Choice as the default product offering. The preliminary rates designed for Scenario 2 would yield projected revenues of $42.0 million in FY 2022 and $281.2 million in FY 2023 (the test year), using electric load forecasts reflective of the planned phased-in customer enrollment schedule. The pro forma projections of annual OCPA revenues and expenses for Scenario 2 are shown in Figure 2. Note that the planned Rate Stabilization Reserve contribution is included as a component of the revenue requirement in Section III and that the surplus or deficit shown in section V is net of the reserve contribution. For purposes of the pro forma projections, the proposed rates are assumed to be held constant during the forecast period and only includes sales associated with current OCPA member agencies. Figure 2 Annual Pro Forma Projections Orange County Power Authority 28-Dec-21 Year Ending:2022 2023 2024 2025 2026 I. Revenue Base Rate Revenue 38,437,322 257,918,362 304,792,176 306,316,137 307,847,717 Product 2 Premium 3,503,811 22,284,987 25,188,845 25,314,789 25,441,363 Product 3 Premium 96,008 956,924 1,442,423 1,449,635 1,456,883 Total Revenue 42,037,142 281,160,272 331,423,444 333,080,561 334,745,964 II. Operating Expenses Power Supply 32,363,764 264,289,590 299,356,125 283,470,381 278,613,059 Staff 1,492,926 4,307,170 5,275,180 5,538,938 5,815,885 Mandatory Compliance Mailers 35,483 325,540 581,565 591,761 609,514 Other Operating Expenses 1,638,967 2,367,777 1,436,270 1,473,380 1,517,581 Data Management - 2,066,392 3,229,246 3,245,577 3,456,436 Service Fees 54,626 436,647 527,849 530,468 533,102 Uncollectibles/Other 210,186 1,405,801 1,657,117 1,665,403 1,673,730 Subtotal Operating Expenses 35,795,951 275,198,918 312,063,351 296,515,908 292,219,307 Operating Margin 6,241,191 5,961,354 19,360,092 36,564,653 42,526,657 III. Financing Interest Payments 234,000 406,800 448,800 429,900 313,800 Principal Payments - - - 3,600,000 7,200,000 Reserve Contribution 840,743 5,623,205 6,628,469 6,661,611 6,694,919 Subtotal Financing 1,074,743 6,030,005 7,077,269 10,691,511 14,208,719 IV. Total Revenue Requirement 36,870,694 281,228,924 319,140,620 307,207,419 306,428,026 V. Surplus/(Deficit)5,166,448 (68,652) 12,282,824 25,873,141 28,317,937 437 Scenario 2 Rate Design The initial OCPA rates for Basic Choice were designed for rate parity such that each rate component is equal to the corresponding SCE generation rate, after accounting for the surcharges that SCE will assess on customer bills. For customers electing the Smart Choice product, an additional charge of 1.55 cents per kWh will apply relative to Basic Choice rates. This premium includes the estimated incremental cost of offering a renewable energy mix of at least 69% in 2022 relative to the 38.5% renewable energy mix of the default Basic Choice product plus a 1.05 cents per kWh premium that is necessary for OCPA to meet its revenue requirements while keeping the rates for Basic Choice at parity to SCE. For customers electing the 100% Renewable Choice product, an additional charge of 2.05 cents per kWh will apply relative to the Basic Choice rates. This premium includes the estimated incremental cost to OCPA of offering a 100% renewable energy product relative to the 38.5% renewable energy mix of the default Basic Choice product plus the same 1.05 cents per kWh revenue sufficiency adder described above for the Smart Choice product. Scenario 2 Bill Impacts In Scenario 2, for a typical residential customer, the bill impacts for the three OCPA product offerings are estimated as follows: Estimated Typical Residential Bill Comparison Basic Choice, 425 KWh Per Month Charge Type OCPA SCE Difference Generation $41.51 $49.96 ($8.45) SCE Surcharges $8.45 $0.00 $8.45 SCE Delivery $64.44 $64.44 $0.00 Total $114.40 $114.40 $0.00 0.0% Estimated Typical Residential Bill Comparison Smart Choice, 425 KWh Per Month Charge Type OCPA SCE Difference Generation $48.10 $49.96 ($1.86) SCE Surcharges $8.45 $0.00 $8.45 SCE Delivery $64.44 $64.44 $0.00 Total $120.99 $114.40 $6.59 5.8% Estimated Typical Residential Bill Comparison 100% Renewable Energy Choice, 425 KWh Per Month Charge Type OCPA SCE Difference Generation $50.23 $49.96 $0.27 SCE Surcharges $8.45 $0.00 $8.45 SCE Delivery $64.44 $64.44 $0.00 Total $123.12 $114.40 $8.72 7.6% 438 Scenario 3 Overview (Recommended) Scenario 3 set the initial rates for Basic Choice at parity to SCE. All member Cities are assumed to elect Smart Choice as the default service offering. This allows for a smaller premium for Smart Choice and 100% Renewable Choice than in Scenario 2, while keeping rates for Basic Choice at parity to SCE. The preliminary rates designed for Scenario 3 would yield projected revenues of $43.0 million in FY 2022 and $287.8 million in FY 2023 (the test year), using electric load forecasts reflective of the planned phased-in customer enrollment schedule. The pro forma projections of annual OCPA revenues and expenses for Scenario 3 are shown in Figure 3. Note that the planned Rate Stabilization Reserve contribution is included as a component of the revenue requirement in Section III and that the surplus or deficit shown in section V is net of the reserve contribution. For purposes of the pro forma projections, the proposed rates are assumed to be held constant during the forecast period and only includes sales associated with the current OCPA member communities. Figure 3 Annual Pro Forma Projections Orange County Power Authority 28-Dec-21 Year Ending:2022 2023 2024 2025 2026 I. Revenue Base Rate Revenue 38,437,322 257,918,362 304,792,176 306,316,137 307,847,717 Product 2 Premium 4,472,587 29,192,591 33,773,802 33,942,671 34,112,384 Product 3 Premium 70,250 700,188 1,055,431 1,060,708 1,066,012 Total Revenue 42,980,160 287,811,140 339,621,409 341,319,516 343,026,114 II. Operating Expenses Power Supply 33,350,068 270,731,553 306,654,750 290,460,773 285,297,889 Staff 1,492,926 4,307,170 5,275,180 5,538,938 5,815,885 Mandatory Compliance Mailers 35,483 325,540 581,565 591,761 609,514 Other Operating Expenses 1,638,967 2,367,777 1,436,270 1,473,380 1,517,581 Data Management - 2,066,392 3,229,246 3,245,577 3,456,436 Service Fees 54,626 436,647 527,849 530,468 533,102 Uncollectibles/Other 214,901 1,439,056 1,698,107 1,706,598 1,715,131 Subtotal Operating Expenses 36,786,970 281,674,135 319,402,967 303,547,495 298,945,538 Operating Margin 6,193,189 6,137,005 20,218,442 37,772,021 44,080,575 III. Financing Interest Payments 234,000 406,800 448,800 429,900 313,800 Principal Payments - - - 3,600,000 7,200,000 Reserve Contribution 859,603 5,756,223 6,792,428 6,826,390 6,860,522 Subtotal Financing 1,093,603 6,163,023 7,241,228 10,856,290 14,374,322 IV. Total Revenue Requirement 37,880,574 287,837,157 326,644,195 314,403,785 313,319,861 V. Surplus/(Deficit)5,099,586 (26,017) 12,977,214 26,915,731 29,706,253 439 Scenario 3 Rate Design The initial OCPA rates for Basic Choice were designed for rate parity such that each rate component is equal to the corresponding SCE generation rate, after accounting for the surcharges that SCE will assess on customer bills. For customers electing the Smart Choice product, an additional charge of 1.0 cent per kWh will apply relative to Basic Choice rates. This premium includes the estimated incremental cost of offering a renewable energy mix of at least 69% in 2022 relative to the 38.5% renewable energy mix of the default Basic Choice product plus a 0.5 cent per kWh premium that is necessary for OCPA to meet its revenue requirements while keeping the rates for Basic Choice at parity to SCE. For customers electing the 100% Renewable Choice product, an additional charge of 1.5 cents per kWh will apply relative to the Basic Choice rates. This premium includes the estimated incremental cost to OCPA of offering a 100% renewable energy product relative to the 38.5% renewable energy mix of the default Basic Choice product plus the same 0.5 cent per kWh revenue sufficiency adder described above for the Smart Choice product. Scenario 3 Bill Impacts In Scenario 3, for a typical residential customer, the bill impacts for the three OCPA product offerings are estimated as follows: Estimated Typical Residential Bill Comparison Basic Choice, 425 KWh Per Month Charge Type OCPA SCE Difference Generation $41.51 $49.96 ($8.45) SCE Surcharges $8.45 $0.00 $8.45 SCE Delivery $64.44 $64.44 $0.00 Total $114.40 $114.40 $0.00 0.0% Estimated Typical Residential Bill Comparison Smart Choice, 425 KWh Per Month Charge Type OCPA SCE Difference Generation $45.76 $49.96 ($4.20) SCE Surcharges $8.45 $0.00 $8.45 SCE Delivery $64.44 $64.44 $0.00 Total $118.65 $114.40 $4.25 3.7% Estimated Typical Residential Bill Comparison 100% Renewable Energy Choice, 425 KWh Per Month Charge Type OCPA SCE Difference Generation $47.89 $49.96 ($2.07) SCE Surcharges $8.45 $0.00 $8.45 SCE Delivery $64.44 $64.44 $0.00 Total $120.78 $114.40 $6.38 5.6% 440 RATE DESIGN RECOMMENDATION Scenario 3 allows for the lowest rate premiums that align with qualitatively superior product offerings (associated with the higher renewable energy content) in the Smart Choice and 100% Renewable Choice products, while allowing for all customers to choose a rate option that costs no more than what they would pay under SCE service. Staff recommends Scenario 3 as the basis of OCPA’s initial rate design, with the understanding that rates would need to be revised if members do not choose Smart Choice as the default service offering. The proposed OCPA rates in Attachment A were designed with reference to the SCE generation rates and Cost Responsibility Surcharges expected to be in effect as of April 1, 2022 when OCPA begins service to its customers. These rates will be adjusted in March, once SCE published its generation rates that will be effective as of April 1, 2022, in order to maintain parity for the Basic Choice product. If the revised rates are projected to yield insufficient revenues based on the best information available at that time, staff would recommend a rate design revision for the Board’s consideration. NET ENERGY METERING ANALYSIS AND DISCUSSION Current SCE NEM customers are subject to rules set by the Commission. Under current SCE policies, NEM customers are billed once a year for their energy usage and are either charged for any net usage or are provided a credit for surplus net generation based on their energy usage and generation over the course of the prior year. Surplus generation is compensated at a net surplus compensation (“NSC”) rate that is set monthly and is generally based on the market value of power. In 2021, the average SCE NSC rate was 3.034 cents/kWh. Initial estimates of OCPA’s system indicate that approximately 25% of NEM customers generate more energy than they use. In 2019, it is estimated that 14,350 MWhs were generated in surplus by NEM customers that would be subject to NSC rates and would receive approximately $435,000 in NSC credits based on 2021 NSC rates. CCAs are not subject to the Commission NEM rules which are strictly set for the state’s IOUs. As a matter of practice, most CCAs support local renewable energy production and have adopted rules that replicate IOU practices and often provide additional benefits to NEM customers. The most common benefits include higher NSC rates and monthly billing. Higher NSC rates result in greater compensation to customers that generate surplus energy and represents a low-cost way to signal the CCA’s support of local solar. Monthly billing provides better cash flow planning for both the utility and customers as opposed to annual bills which can result in unexpectedly high bills for some customers. As part of monthly billing, most CCAs perform an annual true-up in April for all NEM customers as this month best aligns with NEM kWh banking procedures. NET ENERGY METERING RECOMMENDATION Providing NEM customers that generally replicates the current incumbent IOU NEM program allows for customer rate stability and an easier transition to OCPA and is defensible as the IOU NEM program has been approved by the Commission. Staff recommends approving the following improvements from the incumbent IOU NEM program which were discussed previously in the Net Energy Metering Analysis and Discussion section: 1. Set NSC rate at 10% above the incumbent IOU NSC rate 2. Provide monthly billing to NEM customers 3. Set all customers annual true-up period to April Staff will develop a prospective NEM Program consistent with the incumbent IOU NEM program in preparation for OCPA’s launch in April 2022 for the Board’s adoption in February 2022. 441 FISCAL IMPACT Adoption of rate design (Scenario 3) would yield projected surplus (net of Rate Stabilization Reserve) of $5.1 million in FY 2022 and projected deficit of $26,000 (due to rounding) in FY 2023. Approval of the proposed 10% adder to the IOU NSC rate for the NEM program will result in additional cost of approximately $45,000/year once all SCE customers have enrolled into OCPA service. ATTACHMENT Attachment A: Preliminary OCPA Rates Effective April 1, 2022 442 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE RESIDENTIAL CUSTOMERS DOMESTIC (D)DOMESTIC (D) ENERGY CHARGE ($/KWAll Usage All Usage 0.09767 0.11754 0.01987 (0.00019) 0.01899 0.00107 0.11754 0.00% DOMESTIC CARE (D-CARE)DOMESTIC (D-CARE) ENERGY CHARGE ($/KWAll Usage All Usage 0.09767 0.11754 0.01987 (0.00019) 0.01899 0.00107 0.11754 0.00% TOU-D-A (GF)TOU-D-A (GF) ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 2:00 p.m. to 8:00 p.m.weekdays except holidays 0.26986 0.29133 0.02146 (0.00019) 0.01899 0.00266 0.29133 0.00% OFF-PEAK All hours other than Peak and Super Off- Peak 0.07991 0.09962 0.01971 (0.00019) 0.01899 0.00091 0.09962 0.00% SUPER OFF-PEAK 10:00 p.m. to 8:00 a.m. all year, every day 0.05748 0.07698 0.01950 (0.00019) 0.01899 0.00070 0.07698 0.00% WINTER January 1 through May 31 and October 1 through December 31 PEAK 2:00 p.m. to 8:00 p.m.weekdays except holidays 0.15175 0.17212 0.02037 (0.00019) 0.01899 0.00157 0.17212 0.00% OFF-PEAK All hours other than Peak and Super Off- Peak 0.06705 0.08665 0.01959 (0.00019) 0.01899 0.00079 0.08665 0.00% SUPER OFF-PEAK 10:00 p.m. to 8:00 a.m. all year, every day 0.05872 0.07824 0.01952 (0.00019) 0.01899 0.00072 0.07824 0.00% BASELINE CREDIT - 0.00000 - - #DIV/0! TOU-D-B (GF)TOU-D-B (GF) ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 2:00 p.m. to 8:00 p.m.weekdays except holidays 0.40389 0.42659 0.02270 (0.00019) 0.01899 0.00390 0.42659 0.00% ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES Page 1 of 20 DRAFTNote: OCPA 2022 Proposed Rates have been designed based on SCE's November 2021 Energy Resource Recovery Account (ERRA) forecasts for 2022 electric generation rates and PCIA. 443 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES OFF-PEAK All hours other than Peak and Super Off- Peak 0.07991 0.09962 0.01971 (0.00019) 0.01899 0.00091 0.09962 0.00% SUPER OFF-PEAK 10:00 p.m. to 8:00 a.m. all year, every day 0.02670 0.04592 0.01922 (0.00019) 0.01899 0.00042 0.04592 0.00% WINTER January 1 through May 31 and October 1 through December 31 PEAK 2:00 p.m. to 8:00 p.m.weekdays except holidays 0.11950 0.13957 0.02008 (0.00019) 0.01899 0.00128 0.13957 0.00% OFF-PEAK All hours other than Peak and Super Off- Peak 0.06705 0.08665 0.01959 (0.00019) 0.01899 0.00079 0.08665 0.00% SUPER OFF-PEAK 10:00 p.m. to 8:00 a.m. all year, every day 0.02745 0.04668 0.01923 (0.00019) 0.01899 0.00043 0.04668 0.00% TOU-D-T (GF)TOU-D-T (GF) ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 TIER 1 PEAK 12:00 p.m. to 6:00 p.m. summer and winter weekdays except holidays 0.13802 0.15826 0.02025 (0.00019) 0.01899 0.00145 0.15826 0.00% TIER 1 OFF-PEAK All other hours - all year, everyday 0.12376 0.14388 0.02012 (0.00019) 0.01899 0.00132 0.14388 0.00% TIER 2 PEAK 12:00 p.m. to 6:00 p.m. summer and winter weekdays except holidays 0.13802 0.15826 0.02025 (0.00019) 0.01899 0.00145 0.15826 0.00% TIER 2 OFF-PEAK All other hours - all year, everyday 0.12376 0.14388 0.02012 (0.00019) 0.01899 0.00132 0.14388 0.00% WINTER January 1 through May 31 and October 1 through December 31 TIER 1 PEAK 12:00 p.m. to 6:00 p.m. summer and winter weekdays except holidays 0.08772 0.10751 0.01978 (0.00019) 0.01899 0.00098 0.10751 0.00% TIER 1 OFF-PEAK All other hours - all year, everyday 0.07805 0.09774 0.01969 (0.00019) 0.01899 0.00089 0.09774 0.00% TIER 2 PEAK 12:00 p.m. to 6:00 p.m. summer and winter weekdays except holidays 0.08772 0.10751 0.01978 (0.00019) 0.01899 0.00098 0.10751 0.00% TIER 2 OFF-PEAK All other hours - all year, everyday 0.07805 0.09774 0.01969 (0.00019) 0.01899 0.00089 0.09774 0.00% TOU-D-PRIME TOU-D-PRIME ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 Page 2 of 20 DRAFT 444 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.26940 0.29086 0.02146 (0.00019) 0.01899 0.00266 0.29086 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.12801 0.14817 0.02015 (0.00019) 0.01899 0.00135 0.14817 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.04939 0.06882 0.01943 (0.00019) 0.01899 0.00063 0.06882 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.22503 0.24608 0.02105 (0.00019) 0.01899 0.00225 0.24608 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.04421 0.06359 0.01938 (0.00019) 0.01899 0.00058 0.06359 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.04421 0.06359 0.01938 (0.00019) 0.01899 0.00058 0.06359 0.00% TOU-D-4to9 TOU-D-4to9 ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.20667 0.22755 0.02088 (0.00019) 0.01899 0.00208 0.22755 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.09301 0.11285 0.01983 (0.00019) 0.01899 0.00103 0.11285 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.07027 0.08989 0.01962 (0.00019) 0.01899 0.00082 0.08989 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.13345 0.15365 0.02021 (0.00019) 0.01899 0.00141 0.15365 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.09155 0.11137 0.01982 (0.00019) 0.01899 0.00102 0.11137 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.06592 0.08550 0.01958 (0.00019) 0.01899 0.00078 0.08550 0.00% TOU-D-5to8 TOU-D-5to8 ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 Page 3 of 20 DRAFT 445 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES PEAK 5:00 p.m. to 8:00 p.m. summer weekdays except holidays 0.33901 0.36111 0.02210 (0.00019) 0.01899 0.00330 0.36111 0.00% MID-PEAK 5:00 p.m. to 8:00 p.m. winter weekdays and summer and winter weekends 0.15650 0.17692 0.02042 (0.00019) 0.01899 0.00162 0.17692 0.00% OFF-PEAK 8:00 p.m. to 5:00 p.m.- summer weekdays and weekends 0.05837 0.07788 0.01951 (0.00019) 0.01899 0.00071 0.07788 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 5:00 p.m. to 8:00 p.m. winter weekdays and summer and winter weekends 0.20825 0.22914 0.02090 (0.00019) 0.01899 0.00210 0.22914 0.00% OFF-PEAK 8:00 p.m. to 8:00 a.m.- winter weekdays and weekends 0.08721 0.10699 0.01978 (0.00019) 0.01899 0.00098 0.10699 0.00% SUPER OFF-PEAK 8:00 a.m. to 5:00 p.m.- winter weekdays and weekends 0.05632 0.07581 0.01949 (0.00019) 0.01899 0.00069 0.07581 0.00% COMMERCIAL, INDUSTRIAL, AGRICULTURAL AND GENERAL SERVICE CUSTOMERS TOU-EV-7-E TOU-EV-7-E ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.27744 0.29467 0.01723 (0.00015) 0.01469 0.00269 0.29467 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.14083 0.15681 0.01597 (0.00015) 0.01469 0.00143 0.15681 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.09528 0.11083 0.01555 (0.00015) 0.01469 0.00101 0.11083 0.00% WINTER January 1 through May 31 and October 1 through December 31 PEAK All hours other than Mid-Peak and Off-Peak 0.16523 0.18143 0.01620 (0.00015) 0.01469 0.00166 0.18143 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.08548 0.10095 0.01546 (0.00015) 0.01469 0.00092 0.10095 0.00% OFF-PEAK 9:00 p.m. to 8:00 a.m. winter weekdays and weekends 0.04081 0.05586 0.01505 (0.00015) 0.01469 0.00051 0.05586 0.00% TOU-EV-7-D TOU-EV-7-D Page 4 of 20 DRAFT 446 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.27744 0.29467 0.01723 (0.00015) 0.01469 0.00269 0.29467 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.14083 0.15681 0.01597 (0.00015) 0.01469 0.00143 0.15681 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.09528 0.11083 0.01555 (0.00015) 0.01469 0.00101 0.11083 0.00% WINTER January 1 through May 31 and October 1 through December 31 PEAK All hours other than Mid-Peak and Off-Peak 0.16523 0.18143 0.01620 (0.00015) 0.01469 0.00166 0.18143 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.08548 0.10095 0.01546 (0.00015) 0.01469 0.00092 0.10095 0.00% OFF-PEAK 9:00 p.m. to 8:00 a.m. winter weekdays and weekends 0.04081 0.05586 0.01505 (0.00015) 0.01469 0.00051 0.05586 0.00% TOU-EV-8 TOU-EV-8 ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.37522 0.39359 0.01837 (0.00015) 0.01492 0.00360 0.39359 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.08794 0.10366 0.01572 (0.00015) 0.01492 0.00095 0.10366 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.06701 0.08253 0.01552 (0.00015) 0.01492 0.00075 0.08253 0.00% WINTER January 1 through May 31 and October 1 through December 31 PEAK All hours other than Mid-Peak and Off-Peak 0.13737 0.15354 0.01617 (0.00015) 0.01492 0.00140 0.15354 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.07884 0.09448 0.01563 (0.00015) 0.01492 0.00086 0.09448 0.00% OFF-PEAK 9:00 p.m. to 8:00 a.m. winter weekdays and weekends 0.03241 0.04761 0.01521 (0.00015) 0.01492 0.00044 0.04761 0.00% TOU-8-SEC-R (GF)TOU-8-SEC-R (GF) ENERGY CHARGE ($/KWH) Page 5 of 20 DRAFT 447 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES SUMMER June 1 through September 30 PEAK 12:00 noon to 6:00 p.m. summer weekdays except holidays 0.26782 0.28413 0.01631 (0.00014) 0.01385 0.00260 0.28413 0.00% MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.10229 0.11707 0.01478 (0.00014) 0.01385 0.00107 0.11707 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.04954 0.06384 0.01429 (0.00014) 0.01385 0.00058 0.06384 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 8:00 a.m. to 9:00 p.m. winter weekdays except holidays 0.07345 0.08797 0.01451 (0.00014) 0.01385 0.00080 0.08797 0.00% OFF-PEAK All hours other than Mid-Peak 0.04037 0.05458 0.01421 (0.00014) 0.01385 0.00050 0.05458 0.00% TOU-8-SEC-E TOU-8-SEC-E ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.37641 0.39372 0.01731 (0.00014) 0.01385 0.00360 0.39372 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.07570 0.09024 0.01454 (0.00014) 0.01385 0.00083 0.09024 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.04317 0.05741 0.01423 (0.00014) 0.01385 0.00052 0.05741 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.10644 0.12125 0.01482 (0.00014) 0.01385 0.00111 0.12125 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.04903 0.06332 0.01429 (0.00014) 0.01385 0.00058 0.06332 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.02650 0.04058 0.01408 (0.00014) 0.01385 0.00037 0.04058 0.00% DEMAND CHARGE ($/KWSUMMER TR PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 6.08 6.13 0.05609 - - 0.05609 6.13432 0.00% WINTER TR MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 1.14 1.15 0.01050 - - 0.01050 1.14787 0.00% TOU-8-SEC-D TOU-8-SEC-D Page 6 of 20 DRAFT 448 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.08572 0.10035 0.01463 (0.00014) 0.01385 0.00092 0.10035 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.07570 0.09024 0.01454 (0.00014) 0.01385 0.00083 0.09024 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.04317 0.05741 0.01423 (0.00014) 0.01385 0.00052 0.05741 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.06101 0.07541 0.01440 (0.00014) 0.01385 0.00069 0.07541 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.04903 0.06332 0.01429 (0.00014) 0.01385 0.00058 0.06332 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.02650 0.04058 0.01408 (0.00014) 0.01385 0.00037 0.04058 0.00% DEMAND CHARGE ($/KWSUMMER TR PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 27.53 27.78 0.25405 - - 0.25405 27.78343 0.00% WINTER TR MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 5.38 5.43 0.04966 - - 0.04966 5.43079 0.00% TOU-8-PRI-D TOU-8-PRI-D ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.08135 0.09560 0.01425 (0.00014) 0.01352 0.00087 0.09560 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.07181 0.08598 0.01417 (0.00014) 0.01352 0.00079 0.08598 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.04099 0.05487 0.01388 (0.00014) 0.01352 0.00050 0.05487 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.05806 0.07210 0.01404 (0.00014) 0.01352 0.00066 0.07210 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.04657 0.06051 0.01393 (0.00014) 0.01352 0.00055 0.06051 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.02505 0.03879 0.01373 (0.00014) 0.01352 0.00035 0.03879 0.00% Page 7 of 20 DRAFT 449 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES DEMAND CHARGE ($/KWSUMMER TR PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 27.41 27.67 0.25298 - - 0.25298 27.66628 0.00% WINTER TR MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 5.79 5.85 0.05347 - - 0.05347 5.84745 0.00% TOU-PA-2-A (GF)TOU-PA-2-A (GF) ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 12:00 noon to 6:00 p.m. summer weekdays except holidays 0.26115 0.27742 0.01627 (0.00014) 0.01387 0.00254 0.27742 0.00% MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.10040 0.11518 0.01478 (0.00014) 0.01387 0.00105 0.11518 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.05830 0.07269 0.01439 (0.00014) 0.01387 0.00066 0.07269 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.08303 0.09766 0.01462 (0.00014) 0.01387 0.00089 0.09766 0.00% OFF-PEAK All hours other than Mid-Peak 0.04986 0.06417 0.01432 (0.00014) 0.01387 0.00059 0.06417 0.00% TOU-PA-2-B (GF)TOU-PA-2-B (GF) ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 12:00 noon to 6:00 p.m. summer weekdays except holidays 0.06630 0.08077 0.01447 (0.00014) 0.01387 0.00074 0.08077 0.00% MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.06026 0.07467 0.01441 (0.00014) 0.01387 0.00068 0.07467 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.05830 0.07269 0.01439 (0.00014) 0.01387 0.00066 0.07269 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.08303 0.09766 0.01462 (0.00014) 0.01387 0.00089 0.09766 0.00% Page 8 of 20 DRAFT 450 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES OFF-PEAK All hours other than Mid-Peak 0.04986 0.06417 0.01432 (0.00014) 0.01387 0.00059 0.06417 0.00% DEMAND CHARGE ($/KWSUMMER TR PEAK 12:00 noon to 6:00 p.m. summer weekdays except holidays 11.69 11.80 0.10786 - - 0.10786 11.79609 0.00% SUMMER TR MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 3.57 3.61 0.03297 - - 0.03297 3.60612 0.00% TOU-PA-2-E4to9 TOU-PA-2-E4to9 ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.40930 0.42693 0.01763 (0.00014) 0.01387 0.00390 0.42693 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.08432 0.09895 0.01463 (0.00014) 0.01387 0.00090 0.09895 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.05236 0.06670 0.01434 (0.00014) 0.01387 0.00061 0.06670 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.08291 0.09753 0.01462 (0.00014) 0.01387 0.00089 0.09753 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.06317 0.07761 0.01444 (0.00014) 0.01387 0.00071 0.07761 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.05193 0.06627 0.01434 (0.00014) 0.01387 0.00061 0.06627 0.00% TOU-PA-2-D4to9 TOU-PA-2-D4to9 ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.09529 0.11002 0.01474 (0.00014) 0.01387 0.00101 0.11002 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.08432 0.09895 0.01463 (0.00014) 0.01387 0.00090 0.09895 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.05236 0.06670 0.01434 (0.00014) 0.01387 0.00061 0.06670 0.00% WINTER January 1 through May 31 and October 1 through December 31 Page 9 of 20 DRAFT 451 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.06979 0.08429 0.01450 (0.00014) 0.01387 0.00077 0.08429 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.05274 0.06708 0.01434 (0.00014) 0.01387 0.00061 0.06708 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.04301 0.05727 0.01425 (0.00014) 0.01387 0.00052 0.05727 0.00% - - DEMAND CHARGE ($/KWSUMMER TR PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 15.47526 15.62 0.14281 - - 0.14281 15.61807 0.00% WINTER TR MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 2.71761 2.74 0.02508 - - 0.02508 2.74269 0.00% TOU-PA-2-E5to8 TOU-PA-2-E5to8 ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.66699 0.68700 0.02001 (0.00014) 0.01387 0.00628 0.68700 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.14213 0.15730 0.01517 (0.00014) 0.01387 0.00144 0.15730 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.05278 0.06712 0.01434 (0.00014) 0.01387 0.00061 0.06712 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.08340 0.09803 0.01463 (0.00014) 0.01387 0.00090 0.09803 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.06356 0.07800 0.01444 (0.00014) 0.01387 0.00071 0.07800 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.05227 0.06661 0.01434 (0.00014) 0.01387 0.00061 0.06661 0.00% TOU-PA-2-D5to8 TOU-PA-2-D5to8 ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.16091 0.17626 0.01534 (0.00014) 0.01387 0.00161 0.17626 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.14213 0.15730 0.01517 (0.00014) 0.01387 0.00144 0.15730 0.00% Page 10 of 20 DRAFT 452 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES OFF-PEAK All hours other than Peak and Mid-Peak 0.05278 0.06712 0.01434 (0.00014) 0.01387 0.00061 0.06712 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.07023 0.08473 0.01450 (0.00014) 0.01387 0.00077 0.08473 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.05308 0.06742 0.01435 (0.00014) 0.01387 0.00062 0.06742 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.04331 0.05757 0.01426 (0.00014) 0.01387 0.00053 0.05757 0.00% - - DEMAND CHARGE ($/KWSUMMER TR PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 15.47526 15.62 0.14281 - - 0.14281 15.61807 0.00% WINTER TR MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 2.80568 2.83 0.02589 - - 0.02589 2.83157 0.00% TOU-PA-3-A (GF)TOU-PA-3-A (GF) ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 12:00 noon to 6:00 p.m. summer weekdays except holidays 0.24265 0.25826 0.01561 (0.00013) 0.01338 0.00236 0.25826 0.00% MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.08485 0.09900 0.01416 (0.00013) 0.01338 0.00091 0.09900 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.04860 0.06242 0.01382 (0.00013) 0.01338 0.00057 0.06242 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.06839 0.08240 0.01400 (0.00013) 0.01338 0.00075 0.08240 0.00% OFF-PEAK All hours other than Mid-Peak 0.04184 0.05560 0.01376 (0.00013) 0.01338 0.00051 0.05560 0.00% TOU-PA-3-B (GF)TOU-PA-3-B (GF) ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 12:00 noon to 6:00 p.m. summer weekdays except holidays 0.05547 0.06936 0.01388 (0.00013) 0.01338 0.00063 0.06936 0.00% Page 11 of 20 DRAFT 453 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.05013 0.06396 0.01383 (0.00013) 0.01338 0.00058 0.06396 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.04860 0.06242 0.01382 (0.00013) 0.01338 0.00057 0.06242 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.06839 0.08240 0.01400 (0.00013) 0.01338 0.00075 0.08240 0.00% OFF-PEAK All hours other than Mid-Peak 0.04184 0.05560 0.01376 (0.00013) 0.01338 0.00051 0.05560 0.00% DEMAND CHARGE ($/KWSUMMER TR PEAK 12:00 noon to 6:00 p.m. summer weekdays except holidays 12.52 12.63 0.11550 - - 0.11550 12.63169 0.00% SUMMER TR MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 3.40 3.43 0.03139 - - 0.03139 3.43266 0.00% TOU-PA-3-E4to9 TOU-PA-3-E4to9 ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.35677 0.37343 0.01666 (0.00013) 0.01338 0.00341 0.37343 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.07035 0.08437 0.01402 (0.00013) 0.01338 0.00077 0.08437 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.04353 0.05731 0.01377 (0.00013) 0.01338 0.00052 0.05731 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.08475 0.09891 0.01415 (0.00013) 0.01338 0.00090 0.09891 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.06482 0.07879 0.01397 (0.00013) 0.01338 0.00072 0.07879 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.01517 0.02868 0.01351 (0.00013) 0.01338 0.00026 0.02868 0.00% TOU-PA-3-D4to9 TOU-PA-3-D4to9 ENERGY CHARGE ($/KWH) Page 12 of 20 DRAFT 454 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.07971 0.09382 0.01411 (0.00013) 0.01338 0.00086 0.09382 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.07035 0.08437 0.01402 (0.00013) 0.01338 0.00077 0.08437 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.04353 0.05731 0.01377 (0.00013) 0.01338 0.00052 0.05731 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.06136 0.07530 0.01394 (0.00013) 0.01338 0.00069 0.07530 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.04937 0.06320 0.01383 (0.00013) 0.01338 0.00058 0.06320 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.02689 0.04051 0.01362 (0.00013) 0.01338 0.00037 0.04051 0.00% - DEMAND CHARGE ($/KWSUMMER TR PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 15.15 15.29 0.13978 - - 0.13978 15.28645 0.00% WINTER TR MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 2.67 2.69 0.02461 - - 0.02461 2.69180 0.00% TOU-PA-3-E5to8 TOU-PA-3-E5to8 ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.64096 0.66024 0.01929 (0.00013) 0.01338 0.00604 0.66024 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.12531 0.13984 0.01453 (0.00013) 0.01338 0.00128 0.13984 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.04028 0.05402 0.01374 (0.00013) 0.01338 0.00049 0.05402 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.08677 0.10094 0.01417 (0.00013) 0.01338 0.00092 0.10094 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.06642 0.08041 0.01399 (0.00013) 0.01338 0.00074 0.08041 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.01575 0.02926 0.01352 (0.00013) 0.01338 0.00027 0.02926 0.00% Page 13 of 20 DRAFT 455 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES TOU-PA-3-D5to8 TOU-PA-3-D5to8 ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.14200 0.15668 0.01468 (0.00013) 0.01338 0.00143 0.15668 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.12531 0.13984 0.01453 (0.00013) 0.01338 0.00128 0.13984 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.04028 0.05402 0.01374 (0.00013) 0.01338 0.00049 0.05402 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.05739 0.07130 0.01390 (0.00013) 0.01338 0.00065 0.07130 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.04604 0.05984 0.01380 (0.00013) 0.01338 0.00055 0.05984 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.02475 0.03835 0.01360 (0.00013) 0.01338 0.00035 0.03835 0.00% - DEMAND CHARGE ($/KWSUMMER TR PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 17.28 17.43 0.15943 - - 0.15943 17.43495 0.00% WINTER TR MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 3.65 3.68 0.03365 - - 0.03365 3.67961 0.00% TOU-GS-1-A (GF)TOU-GS-1-A (GF) ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 12:00 noon to 6:00 p.m. summer weekdays except holidays 0.14917 0.16522 0.01605 (0.00015) 0.01469 0.00151 0.16522 0.00% MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.13892 0.15488 0.01596 (0.00015) 0.01469 0.00142 0.15488 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.13280 0.14870 0.01590 (0.00015) 0.01469 0.00136 0.14870 0.00% WINTER January 1 through May 31 and October 1 through December 31 - Page 14 of 20 DRAFT 456 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.08757 0.10305 0.01548 (0.00015) 0.01469 0.00094 0.10305 0.00% OFF-PEAK All hours other than Mid-Peak 0.07735 0.09274 0.01539 (0.00015) 0.01469 0.00085 0.09274 0.00% TOU-GS-1-E TOU-GS-1-E ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.37476 0.39289 0.01813 (0.00015) 0.01469 0.00359 0.39289 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.14083 0.15681 0.01597 (0.00015) 0.01469 0.00143 0.15681 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.08396 0.09941 0.01545 (0.00015) 0.01469 0.00091 0.09941 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.16523 0.18143 0.01620 (0.00015) 0.01469 0.00166 0.18143 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.07182 0.08715 0.01534 (0.00015) 0.01469 0.00080 0.08715 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.04081 0.05586 0.01505 (0.00015) 0.01469 0.00051 0.05586 0.00% TOU-GS-1-D TOU-GS-1-D ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.10245 0.11807 0.01562 (0.00015) 0.01469 0.00108 0.11807 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.09147 0.10699 0.01552 (0.00015) 0.01469 0.00098 0.10699 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.05434 0.06952 0.01518 (0.00015) 0.01469 0.00064 0.06952 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.09582 0.11137 0.01556 (0.00015) 0.01469 0.00102 0.11137 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.06431 0.07958 0.01527 (0.00015) 0.01469 0.00073 0.07958 0.00% Page 15 of 20 DRAFT 457 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.04482 0.05991 0.01509 (0.00015) 0.01469 0.00055 0.05991 0.00% DEMAND CHARGE ($/KWSUMMER TR PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 18.13 18.30 0.16734 - - 0.16734 18.30041 0.00% WINTER TR MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 4.21 4.25 0.03886 - - 0.03886 4.24963 0.00% TOU-GS-1-LG TOU-GS-1-LG ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.37476 0.39289 0.01813 (0.00015) 0.01469 0.00359 0.39289 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.14083 0.15681 0.01597 (0.00015) 0.01469 0.00143 0.15681 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.08396 0.09941 0.01545 (0.00015) 0.01469 0.00091 0.09941 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.16523 0.18143 0.01620 (0.00015) 0.01469 0.00166 0.18143 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.07182 0.08715 0.01534 (0.00015) 0.01469 0.00080 0.08715 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.04081 0.05586 0.01505 (0.00015) 0.01469 0.00051 0.05586 0.00% TOU-GS-2-R (GF)TOU-GS-2-R (GF) ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 12:00 noon to 6:00 p.m. summer weekdays except holidays 0.27566 0.29311 0.01745 (0.00015) 0.01492 0.00268 0.29311 0.00% MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.12070 0.13672 0.01602 (0.00015) 0.01492 0.00125 0.13672 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.05939 0.07484 0.01545 (0.00015) 0.01492 0.00068 0.07484 0.00% WINTER January 1 through May 31 and October 1 through December 31 Page 16 of 20 DRAFT 458 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.08532 0.10101 0.01569 (0.00015) 0.01492 0.00092 0.10101 0.00% OFF-PEAK All hours other than Mid-Peak 0.04779 0.06313 0.01535 (0.00015) 0.01492 0.00058 0.06313 0.00% TOU-GS-2-E TOU-GS-2-E ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.41566 0.43440 0.01874 (0.00015) 0.01492 0.00397 0.43440 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.08794 0.10366 0.01572 (0.00015) 0.01492 0.00095 0.10366 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.05200 0.06739 0.01539 (0.00015) 0.01492 0.00062 0.06739 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.12379 0.13984 0.01605 (0.00015) 0.01492 0.00128 0.13984 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.05886 0.07431 0.01545 (0.00015) 0.01492 0.00068 0.07431 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.03241 0.04761 0.01521 (0.00015) 0.01492 0.00044 0.04761 0.00% DEMAND CHARGE ($/KWSUMMER TR PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 5.32 5.37 0.04914 - - 0.04914 5.37407 0.00% WINTER TR MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 1.03 1.04 0.00947 - - 0.00947 1.03537 0.00% TOU-GS-2-B (GF)TOU-GS-2-B (GF) ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 12:00 noon to 6:00 p.m. summer weekdays except holidays 0.06762 0.08315 0.01553 (0.00015) 0.01492 0.00076 0.08315 0.00% MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.06247 0.07795 0.01548 (0.00015) 0.01492 0.00071 0.07795 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.05939 0.07484 0.01545 (0.00015) 0.01492 0.00068 0.07484 0.00% Page 17 of 20 DRAFT 459 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.08532 0.10101 0.01569 (0.00015) 0.01492 0.00092 0.10101 0.00% OFF-PEAK All hours other than Mid-Peak 0.04779 0.06313 0.01535 (0.00015) 0.01492 0.00058 0.06313 0.00% DEMAND CHARGE ($/KWSUMMER TR PEAK 12:00 noon to 6:00 p.m. summer weekdays except holidays 16.93 17.08 0.15621 - - 0.15621 17.08362 0.00% SUMMER TR MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 5.62 5.67 0.05185 - - 0.05185 5.66989 0.00% TOU-GS-2-D TOU-GS-2-D ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.09942 0.11525 0.01582 (0.00015) 0.01492 0.00105 0.11525 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.08794 0.10366 0.01572 (0.00015) 0.01492 0.00095 0.10366 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.05200 0.06739 0.01539 (0.00015) 0.01492 0.00062 0.06739 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.07294 0.08852 0.01558 (0.00015) 0.01492 0.00081 0.08852 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.05886 0.07431 0.01545 (0.00015) 0.01492 0.00068 0.07431 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.03241 0.04761 0.01521 (0.00015) 0.01492 0.00044 0.04761 0.00% DEMAND CHARGE ($/KWSUMMER TR PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 24.11 24.33 0.22248 - - 0.22248 24.33121 0.00% WINTER TR MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 4.89 4.93 0.04508 - - 0.04508 4.93034 0.00% TOU-GS-3-R (GF)TOU-GS-3-R (GF) ENERGY CHARGE ($/KWH) Page 18 of 20 DRAFT 460 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES SUMMER June 1 through September 30 PEAK 12:00 noon to 6:00 p.m. summer weekdays except holidays 0.24832 0.26477 0.01645 (0.00014) 0.01417 0.00242 0.26477 0.00% MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.10840 0.12356 0.01516 (0.00014) 0.01417 0.00113 0.12356 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.05689 0.07157 0.01468 (0.00014) 0.01417 0.00065 0.07157 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 8:00 a.m. to 12:00 noon and 6:00 p.m. to 11:00 p.m. summer weekdays except holidays 0.07559 0.09045 0.01486 (0.00014) 0.01417 0.00083 0.09045 0.00% OFF-PEAK All hours other than Mid-Peak 0.04634 0.06093 0.01459 (0.00014) 0.01417 0.00056 0.06093 0.00% TOU-GS-3-E TOU-GS-3-E ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.37543 0.39306 0.01762 (0.00014) 0.01417 0.00359 0.39306 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.08417 0.09911 0.01494 (0.00014) 0.01417 0.00091 0.09911 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.05053 0.06515 0.01463 (0.00014) 0.01417 0.00060 0.06515 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.11084 0.12602 0.01518 (0.00014) 0.01417 0.00115 0.12602 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.05714 0.07183 0.01469 (0.00014) 0.01417 0.00066 0.07183 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.03163 0.04608 0.01445 (0.00014) 0.01417 0.00042 0.04608 0.00% DEMAND CHARGE ($/KWSUMMER TR PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 5.20 5.25 0.04803 - - 0.04803 5.25247 0.00% WINTER TR MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.91 0.92 0.00839 - - 0.00839 0.91730 0.00% TOU-GS-3-D TOU-GS-3-D Page 19 of 20 DRAFT 461 DRAFT ATTACHMENT A Percent Rate SCE CCA CCA SCE SCE SCE SCE SCE SCE + CCA Difference RATE SCHEDULE RATE SCHEDULE UNIT/PERIOD UNIT/PERIOD DESCRIPTION 2022 PROPOSED RATE 2022 GENERATION RATE TOTAL 2022 SURCHARGES 2022 CTC 2022 PCIA 2022 FRANCHISE FEES CCA RATE + SURCHARGES CCA vs SCE ORANGE COUNTY POWER AUTHORITY ("OCPA") APRIL 2022 PROPOSED RATES ENERGY CHARGE ($/KWH) SUMMER June 1 through September 30 PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 0.09518 0.11021 0.01504 (0.00014) 0.01417 0.00101 0.11021 0.00% MID-PEAK 4:00 p.m. to 9:00 p.m. summer weekends 0.08417 0.09911 0.01494 (0.00014) 0.01417 0.00091 0.09911 0.00% OFF-PEAK All hours other than Peak and Mid-Peak 0.05053 0.06515 0.01463 (0.00014) 0.01417 0.00060 0.06515 0.00% WINTER January 1 through May 31 and October 1 through December 31 MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 0.07076 0.08557 0.01481 (0.00014) 0.01417 0.00078 0.08557 0.00% OFF-PEAK All hours other than Mid-Peak and Super Off- Peak 0.05714 0.07183 0.01469 (0.00014) 0.01417 0.00066 0.07183 0.00% SUPER OFF-PEAK 8:00 a.m. to 3:00 p.m. winter weekdays and weekends 0.03163 0.04608 0.01445 (0.00014) 0.01417 0.00042 0.04608 0.00% DEMAND CHARGE ($/KWSUMMER TR PEAK 4:00 p.m. to 9:00 p.m. summer weekdays except holidays 23.59 23.81 0.21774 - - 0.21774 23.81202 0.00% WINTER TR MID-PEAK 4:00 p.m. to 9:00 p.m. winter weekdays and weekends 4.28 4.32 0.03953 - - 0.03953 4.32260 0.00% STREET AND OUTDOOR LIGHTING AL-2, LS-1, LS-2, LS-3, OL-1 LS-1 ENERGY CHARGE ($/KWH)0.04570 0.05877 0.01307 (0.00013) 0.01266 0.00054 0.05877 0.00% TC-1 TC-1 ENERGY CHARGE ($/KWH)0.07389 0.088 0.01411 (0.00014) 0.01345 0.00080 0.08800 0.00% SMART CHOICE Basic Choice rate plus the following energy charge 0.01000 100% RENEWABLE ENERGY CHOICE Basic Choice rate plus the following energy charge 0.01500 Page 20 of 20 DRAFT 462 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:22-079 MEETING DATE:2/1/2022 Submitted by Mayor Delgleize, Councilmember Moser and Councilmember Bolton - Consider support of a Blood Drive in collaboration with the UCI Health Bloodmobile, and direct staff to coordinate with UCI Health to host the event at a City Facility We are recommending the following: 1. Direct staff to collaborate with UCI Health to host a blood drive at a City of Huntington Beach facility tentatively on March 5, 2022; and, 2. Direct staff to highlight and promote resources for additional opportunities for the community to participate in blood drives. City of Huntington Beach Printed on 1/26/2022Page 1 of 1 powered by Legistar™463 CITY OF HUNTINGTON BEACH CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BARBARA DELGLEIZE, MAYOR NATALIE MOSER, CITY COUNCIL MEMBER RHONDA BOLTON, CITY COUNCIL MEMBER DATE: FEBRUARY 1, 2022 SUBJECT: CONSIDER SUPPORT OF A BLOOD DRIVE IN COLLABORATION WITH THE UCI HEALTH BLOODMOBILE, AND DIRECT STAFF TO COORDINATE WITH UCI HEALTH TO HOST THE EVENT AT A CITY FACILITY Since the start of the COVID-19 pandemic in 2020, new blood donations across the country have plummeted. This led the American Red Cross, which provides about 40% of the U.S. blood transfusion supply to declare on January 11, 2022, a national blood crisis, the first ever in its history. While demand for blood transfusions has remained relatively constant, the Red Cross has had to ration its blood supplies, leading many medical professionals and patients to tough decisions. According to the American Red Cross: • Every two (2) seconds, someone in the U.S. needs blood and/or platelets. • Approximately 29,000 units of red blood cells are needed every day, including 5,000 units of platelets and 6,500 units of plasma. • The average blood cell transfusion is approximately three (3) units. • A single car accident victim can require as many as one hundred (100) units of blood. • Blood and platelets cannot be manufactured; they can only come from volunteer donors. • The blood type most often requested by hospitals is type O, and about 45% of people in the U.S. have type O blood. • One volunteer donation can help save more than one life. • Red blood cells must be used within 42 days. • Platelets must be used within 5 days. In Orange County, University of California, Irvine Health Center transfuses an average of 1,000 units of blood per month to those in need. In December, UCI announced a severe shortage of Type O blood. To better accommodate those who wish to donate blood, UCI often collaborates with local Orange County schools, workplaces, and local groups to host blood drives. 464 We are requesting that City Council vote to direct Community & Library Services staff to coordinate with UCI Health to provide a City owned public parking lot for a blood drive event tentatively on March 5, 2022. There are a number of additional dedicated and temporary facilities, providing opportunities for appointments and drop-in blood donations in Huntington Beach and surrounding communities. We would also request that City Council direct staff, working with other organizations, to engage in outreach efforts in order to promote additional ongoing opportunities for our residents to donate blood for those in need. RECOMMENDED ACTION We are recommending the following: 1. Direct staff to collaborate with UCI Health to host a blood drive at a City of Huntington Beach facility tentatively on March 5, 2022, and 2. Direct staff to highlight and promote resources for additional opportunities for the community to participate in blood drives. 465