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2024-07-16 Agenda Packet
IN-PERSON PUBLIC PARTICIPATION: Members of the public are welcome to attend City Council meetings in person. Alternate ways to view meetings live or on-demand include: livestreamed on HBTV Channel 3 (replayed on Wednesday at 10:00 a.m. and Thursday at 6:00 p.m.); live and archived meetings for on-demand viewing accessed from https://huntingtonbeach.legistar.com/calendar , https://bit.ly/SurfCityTV, or the City's YouTube Channel at https://www.youtube.com/cityofhb , or from any Roku, Fire TV or Apple device by downloading the Cablecast Screenweave App and searching for the City of Huntington Beach channel. PRESENTATION MATERIAL: Presentations/AV materials shall be submitted to staff no later than 9AM the day of the meeting to PublicPresentations@huntingtonbeachca.gov . Members of the audience and speakers shall not wear or display signs that obstruct the view of other audience members. Signs shall remain with the holder and shall not be placed in adjacent seats or in common areas. PUBLIC COMMENTS: Individuals wishing to provide a comment on agendized or non-agendized items including Study Session, Closed Session, and Public Hearing, may do so in person in the City Council Chambers by completing a Request to Speak form delivered to the City Clerk. Sign-ups to Request to Speak will begin in person 30 minutes prior to the start of Study Session, Closed Session, or Regular City Council Meeting, whichever comes first. Sign-ups will be accepted until the commencement of the public comment period. SUPPLEMENTAL COMMUNICATION: 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 to the Council via email at SupplementalComm@Surfcity-hb.org . Supplemental Communications are public record, and if received by 9:00 AM 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 after the 9:00 AM deadline will be incorporated into the administrative record. Members of the public are also welcome to communicate with the City Council (and staff supporting Council) at City.Council@surfcity-hb.org . 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. AGENDA City Council/Public Financing Authority Tuesday, July 16, 2024 Study Session - 5:00 PM Council Chambers 2000 Main Street Huntington Beach, CA 92648MAYOR AND CITY COUNCIL GRACEY VAN DER MARK, Mayor PAT BURNS, Mayor Pro Tem RHONDA BOLTON, Councilmember DAN KALMICK, Councilmember CASEY McKEON, Councilmember NATALIE MOSER, Councilmember TONY STRICKLAND, Councilmember STAFF ERIC G. PARRA, Interim City Manager MICHAEL E. GATES, City Attorney ROBIN ESTANISLAU, City Clerk ALISA BACKSTROM, City Treasurer 1 AGENDA July 16, 2024City Council/Public Financing Authority 5:00 PM - COUNCIL CHAMBERS CALL TO ORDER ROLL CALL Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, Kalmick CITY COUNCIL MEMBER COMMENTS (3-Minute Time Limit) The Mayor will facilitate a voluntary opportunity for members of the Huntington Beach City Council to individually make brief comments to the public. Please note that the Brown Act does not allow for lengthy comments, discussion, or action on topics that are not on the agenda. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS PERTAINING TO STUDY SESSION ITEM(S) (Received After Agenda Distribution) PUBLIC COMMENTS PERTAINING TO STUDY SESSION ITEM(S) (3-Minute Time Limit) At this time, the City Council will receive comments from members of the public regarding any topic, including items on the Study Session and/or Closed Session agendas. Individuals wishing to provide a comment on item(s) may do so in person by filling out a Request to Speak form delivered to the City Clerk. 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. Please note that the Brown Act does not allow discussion or action on topics that are not on the agenda. Members of the public who would like to speak directly with a Councilmember on an item not on the agenda may consider scheduling an appointment by contacting the City Council's Administrative Assistant at (714) 536-5553 or emailing the entire City Council at city.council@surfcity-hb.org. STUDY SESSION 24-4981.Short Term Rental (STR) Program Update 6:00 PM – COUNCIL CHAMBERS RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING ROLL CALL Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, Kalmick PLEDGE OF ALLEGIANCE INVOCATION In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any Page 1 of 5 2 AGENDA July 16, 2024City Council/Public Financing Authority faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation. 24-4962.Huntington Beach Police Chaplain Bob Ewing ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) AWARDS AND PRESENTATIONS 24-5053.Chief Haberle to welcome the New Zealand Lifesaving Team followed by a special Haka performance to Council PUBLIC COMMENTS (3-Minute Time Limit) At this time, the City Council will receive comments from members of the public regarding any topic, including items on the open session agenda. Individuals wishing to provide a comment may do so in person by filling out a Request to Speak form delivered to the City Clerk. 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. Please note that the Brown Act does not allow discussion or action on topics that are not on the agenda. Members of the public who would like to speak directly with a Councilmember on an item not on the agenda may consider scheduling an appointment by contacting the City Council's Administrative Assistant at (714) 536-5553 or emailing the entire City Council at city.council@surfcity-hb.org. While the City Council welcomes public involvement and supports and defends free speech, the City Council rejects comments from anyone that are discriminatory, defamatory or otherwise not protected free 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 APPOINTMENT ANNOUNCEMENTS Councilmembers may make brief announcements on any appointments made to a board, committee, or commission. Councilmembers may not discuss or take any action on these announcements. Announcements are limited to 1 minute. AB 1234 REPORTING Per AB 1234 (Government Code Section 53232.3(d)) Councilmembers who attend a meeting, conference, or similar event at the expense of the City must provide a brief report of the meeting, conference, or similar event during the next regular City Council meeting. Reports are limited to 1 minute. OPENNESS IN NEGOTIATION DISCLOSURES Page 2 of 5 3 AGENDA July 16, 2024City Council/Public Financing Authority Councilmembers must publicly disclose any meetings or communications with City employee associations, related to the negotiations of labor agreements. Disclosures are limited to 1 minute and must be made by the next regular City Council Meeting. CITY MANAGER'S REPORT CONSENT CALENDAR (Items 4-9) City Clerk 24-4954.Approve and Adopt Minutes A) Approve and adopt the City Council/Public Financing Authority regular meeting minutes of July 2, 2024; and, B) Approve and adopt the City Council/Public Financing Authority special meeting minutes of July 8, 2024. Recommended Action: Police 24-4665.Approve and authorize the execution of a Memorandum of Understanding (MOU) with the Huntington Beach Police and Community Foundation (HBPCF) Approve and authorize the City Manager execute the "Memorandum of Understanding between the Huntington Beach Police and Community Foundation and the City of Huntington Beach.” Recommended Action: 24-4906.Approve and authorize execution of agreement with the City of Costa Mesa for Public Safety Helicopter Services Approve and authorize the Mayor and City Clerk to execute the "Services Agreement for Public Safety Helicopter Support Between the City of Huntington Beach and the City of Costa Mesa.” Recommended Action: 24-4937.Approve and authorize execution of an agreement with the City of Irvine for Public Safety Helicopter Services Approve and authorize the Mayor and City Clerk to execute the "Services Agreement for Public Safety Helicopter Support Between the City of Huntington Beach and the City of Irvine.” Recommended Action: 24-4918.Approve and authorize execution of an agreement with the City of Page 3 of 5 4 AGENDA July 16, 2024City Council/Public Financing Authority Newport Beach for Public Safety Helicopter Services Approve and authorize the Mayor and City Clerk to execute the "Services Agreement for Public Safety Helicopter Support Between the City of Huntington Beach and the City of Newport Beach.” Recommended Action: 24-4929.Approve and authorize execution of a contract agreement with All City Management Services, Inc. (ACMS), for Crossing Guard Services Approve and authorize the Mayor and City Clerk to execute “Agreement Between the City of Huntington Beach and All City Management Services , Inc. for Crossing Guard Services” for a three-year term beginning on June 30, 2024 . Recommended Action: ADMINISTRATIVE ITEMS 24-42610.FY 2023-2027 Strategic Plan - Biannual Progress Update #2 Receive and file the FY 2023-2027 Strategic Plan - Biannual Progress Update #2. Recommended Action: ORDINANCES FOR INTRODUCTION 24-47111.Approve for introduction of Ordinance No. 4230 to authorize execution of an Amendment to the Pipeline Franchise Agreement with Cardinal Pipeline, L.P. for the operation and maintenance of a pipeline system for the transportation of oil, gas, and other hydrocarbon substances A) Approve for introduction of Ordinance No. 4230, “An Ordinance of the City Council of the City of Huntington Beach Amending Ordinance No. 4008 which Granted an Oil Pipeline Franchise”; and, B) Approve and authorize the Mayor and City Clerk to execute the “Amendment to Franchise Agreement between the City of Huntington Beach and Cardinal Pipeline , L.P.” Recommended Action: ADJOURNMENT The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Tuesday, August 6, 2024, 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 Page 4 of 5 5 AGENDA July 16, 2024City Council/Public Financing Authority http://www.huntingtonbeachca.gov Page 5 of 5 6 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:24-498 MEETING DATE:7/16/2024 Short Term Rental (STR) Program Update City of Huntington Beach Printed on 7/10/2024Page 1 of 1 powered by Legistar™7 Short Term Rental (STR) Program Update Study Session July 16, 2024 8 Background • Last update to City Council: March 19, 2024 • STR permits: 204 (Dec. 2023) • 2023 TOT collection: $985,914 (hosted & unhosted) • Unpermitted STRs decline: 867 (2020) to 135 (2023) • Complaint calls decline • Follow-up information requested • Enforcement best practices • Connection between noise & unhosted STRs • Revenue potential & reporting 9 Permitted Short Term Rentals • Approx. 38% are located within the Coastal Zone • Approx. 58% are located within Coastal Zone and RMH-A (Old Town/Town Lot) areas 10 ~ .... __ ,___ Pe1111 itted Sh o rt Term R ental s Chy of fl umin~ton Beach Current Requirements • Hosted (owner-occupied) • Citywide – unlimited (no cap) • Unhosted (owner un-occupied) • Zone 2 (Sunset Beach) • Due to annexation MOU • Limited time to obtain permit • One STR per property owner • Local contact person must be available 24/7 to respond within 1 hour to complaints and resolve • Obtain STR Permit; renew annually • $1,000 fine each day for each violation • 3 violations within 12-month period – results in revocation • All marketing/listings must have City-issued STR permit number 11 Enforcement Best Practices • Staff researched how other cities operate STR programs and met with several STR vendors. • Third-Party Vendor: • Monitoring: Tracking over 60 rental listing websites for unpermitted STRs • Compliance Letters: Sending notices to non-compliant STR operators • 24/7 Hotline: Phone and web support for reporting complaints • Online Portals: Permits, registration, and remittance • Tax Collection & Reporting: Ensuring accurate and timely TOT collection and reporting 12 Unpermitted STRs 13 500 450 400 350 300 250 200 150 100 50 0 Number of Properties without STR Permits in 2022 & 2023 -January 2022 to December 2023 City contracts with 3 rd party vendor GovOS to obta i n unpermitted STR data 135 Unpermitted STRs • 135 unpermitted rentals (Nov. 2023) 14 ·--·--□ .. -□""□-□-□-□-•---~- C .. Unpennitted Shoii Tenn Rentals City of H untington Beach Complaint Detail 15 STR Data 4/1/2021 -12/31/2023 HOSTED UNHOSTED Total Complaint Categories Citywide Complaints Confirmed Violations/ Confirmed Violations/ Confirmed Violations/ % of Total Permits Addresses* Addresses* Addresses No Owner On-Site 105 49 (36 Addresses) N/A 49 (36 Addresses) 24% Noise 92 30 (19 Addresses) 19 (3 Add r esses) 49 (22 Addresses) 24% Maintenance 28 14 (12 Addresses) 2 (2 Addresses) 16 (14 Addresses) 8% Occupancy 16 4 (4 Addresses) 2 (2 Addresses) 6 (6 Addresses) 3% Construction 29 6 (6 Addresses) 4 (3 Addresses) 10 (9 Addresses) 5% Parking 31 11 (10 Addresses) 2 (2 Addresses) 13 (12 Addresses) 6% Trash 13 4 (4 Addresses) 0 4 (4 Addresses) 2% Other 46 8 (8 Addresses) 1 (1 Add r ess) 9 (9 Addresses) 4% *Mu ltip l e V i o lat i o n s at Sa m e A dd ress STRs with Violations Over 3-year program: • 156 violations documented citywide between both unhosted and hosted STRs • Concentration occurring in the downtown area and coastal zone 16 ·tted Short Tenn Renta ls Penm . wNiolatlons City of Hun n·ngton Beach ~ I I w s . . . ., . ----=-- No Owner On-site Violations • 36 STRs w/ No Owner On-Site (unhosted) Violations • 14 in RMH-A (Oldtown/ Townlots) or Downtown Coastal Zone 17 ~ I .. . d Shon Tenn Rentals Pennme . 011 -Site Vio lations w O Owne1 City ofH,mringron Beach Noise Violations • 26 STRs w/ Noise Violations • 12 in RMH-A (Oldtown/Townlots) or Downtown Coastal Zone 18 p 1~=-·-·-1 "' --1 ....... -.. ,.~ \~"·"'"' .-<, 7 r .... ,(', ..... 0 \,'\ Pennirted Shon Tenn Renta l s w/Noise Violations City of Hrmtington Beach .. I Comparison of Other Cities • Subtext goes here • Duplicate this slide as needed Carlsbad Carpinteria Dana Point Long Beach Newport Beach San Diego Ventura Cap No Yes 218 in VROD; Unlimited homestays Yes 115 in CZ + 60 outside CZ for nonprimary; 115 outside CZ Yes 350 in CZ; 800 non-primary Unlimited primary Yes 1,550 Yes 4 tiers (STR types) Unlimited T1 (PT) Unlimited T2 (HS) 5,503 T3 (W, ex MB) 1,809 T4 (MB) No Existing # permitted STRs 445 180 165 (citywide) 800 incl primary (650 non-primary) 1,550 8,651 T1 – 193 T2 – 2,691 T3 – 4,678 T4 – 1,089 200 Locational Restrictions Yes CZ & Residential Yes VROD – 4 subareas w/ caps Yes CZ & STR type Yes CZ & total # Yes Certain residential zones No No TOT 10%12%10%13%10%10.5%10% Population 113,018 12,689 32,403 444,095 81,794 1.38 mil 108,537 19 • STRs in Coastal Zone (excl. Sunset Beach): 38 • Active STRs (paid TOT in 2023): 25 • Total TOT Collected: $157,285.04 • Average Annual TOT per STR: $6,291.40 • Encompass ~12,048 units Coastal Zone TOT 20 Le gend PACI FIC OCEAN 0 City Soundary coastal Zone 411! FOUITTAIN VALlfY lfA.'t1l.lO",I IIANhlNG COSTA M[$A Sunset Beach TOT • STRs in Sunset Beach: 48 • Active STRs (paid TOT in 2023): 34 • Total TOT Collected: $281,425.23 • Average Annual TOT per STR: $8,277.21 • Encompass ~650 units 21 \ \ Townlot & Oldtown Areas Townlot Oldtown • Hosted STRs in Townlot & Oldtown: 54 • Active STRs (paid TOT in 2023): 37 • Total TOT Collected: $209,208.22 • Average Annual TOT per STR: $5,654.28 • Encompass ~5,790 units 22 ~lu nt 1ngtc n Club t J, I Actual & Potential Revenue Townlot & Oldtown Coastal Zone (Excluding Sunset Beach) Sunset Beach Average (Combined 3 Areas) Citywide - Estimate (with Avg Nightly Rate of $305 and 50% occupancy) Average Annual TOT per STR Unit $5,654.28 $6,291.40 $8,277.21 $6,740.96 $5,490 Total TOT Collected (2023) $209,208.22 $157,285.04 $281,425.23 $215,972.83 n/a Example Scenario: Allow 200 STRs $1,130,856 $1,258,280 $1,655,442 $1,348,192 $1,098,000 Range •Coastal Zone + SB + Old Town/ Townlot •66% of 2023 actual revenue 23 Potential Revenue •Range of potential revenue estimates in Coastal Zone & Oldtown/Townlot may be conservative (based on hosted STR) •If program expanded to allow unhosted, conversion of existing hosted STRs would also potentially increase revenue Townlot & Oldtown Coastal Zone (Excluding Sunset Beach) Sunset Beach Average (Combined 3 Areas) Example Scenario: Allow 200 STRs $1,130,856 $1,258,280 $1,655,442 $1,348,192 24 Update Considerations •Enhanced Online Portal: Improving the registration and tax remittance process through a user-friendly online platform •Active Reporting: Enforcing active reporting and implementing strict penalties for non-compliance •Cap on STRs: Setting a cap on the number of unhosted STRs based on specific location criteria •Waitlist Process & Auditing: Introducing a waitlist process for new permits and regular auditing to ensure compliance 25 Ordinance & Policies • Types of STRs: Hosted, unhosted, primary, vacation rentals • Strict penalties: Implementing severe penalties for non-compliance • Maximum Cap: Limits on the number of STR permits issued • Incentivize and require permit holders to report activity and revenue accurately • Location Restrictions: Designating specific areas where STRs are allowed • Associated to high concentrations of STR listings and greatest revenue potential • Enforcement Tools: Enhancing digital services, utilizing technology like noise monitoring devices and exterior surveillance 26 Questions? 27 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:24-496 MEETING DATE:7/16/2024 Huntington Beach Police Chaplain Bob Ewing City of Huntington Beach Printed on 7/10/2024Page 1 of 1 powered by Legistar™28 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:24-505 MEETING DATE:7/16/2024 Chief Haberle to welcome the New Zealand Lifesaving Team followed by a special Haka performance to Council City of Huntington Beach Printed on 7/10/2024Page 1 of 1 powered by Legistar™29 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:24-495 MEETING DATE:7/16/2024 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Robin Estanislau, CMC, City Clerk PREPARED BY:Robin Estanislau, CMC, City Clerk Subject: Approve and Adopt Minutes Statement of Issue: The City Council/Public Financing Authority regular meeting minutes dated July 2, 2024, and special meeting minutes dated July 8, 2024, require review and approval. Financial Impact: None. Recommended Action: A) Approve and adopt the City Council/Public Financing Authority regular meeting minutes of July 2, 2024; and, B) Approve and adopt the City Council/Public Financing Authority special meeting minutes of July 8, 2024. 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. CC/PFA regular meeting minutes of July 2, 2024 2. CC/PFA special meeting minutes of July 8, 2024 City of Huntington Beach Printed on 7/10/2024Page 1 of 2 powered by Legistar™30 File #:24-495 MEETING DATE:7/16/2024 City of Huntington Beach Printed on 7/10/2024Page 2 of 2 powered by Legistar™31 Minutes City Council/Public Financing Authority City of Huntington Beach Tuesday, July 2, 2024 5:00 PM – Council Chambers 6:00 PM – Council Chambers Civic Center, 2000 Main Street 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 — COUNCIL CHAMBERS CALLED TO ORDER — 5:00 PM ROLL CALL Present: Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, and Kalmick Absent: None CITY COUNCIL MEMBER COMMENTS (3-Minute Time Limit) Councilmember Bolton acknowledged the upcoming Independence Day celebrations and encouraged everyone to have a voice and exercise their right to vote; Mayor Pro Tem Burns announced the July 4th block party weekend; Councilmember McKeon announced the 120th Anniversary of the Huntington Beach Independence Day Parade; and Mayor Van Der Mark recognized the Fourth of July Locals Bicycle Cruise attended by over 15,000 citizens on Saturday, June 29. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS FOR CLOSED SESSION ITEMS (Received After Agenda Distribution) — None PUBLIC COMMENTS FOR CLOSED SESSION ITEMS (3-Minute Time Limit) — None Mayor Van Der Mark announced that from this meeting forward, anyone interested in making a public comment will be required to complete their own Request to Speak form in person to ensure speakers are called in the order the forms are received. RECESSED TO CLOSED SESSION — 5:03 PM A motion was made by Strickland, second by Burns to recess to Closed Session Item Nos. 1 and 2. CLOSED SESSION 32 City Council/PFA Regular Meeting Minutes July 2, 2024 Page 2 of 16 1. 2023-37 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Daniels (Enda) v. City of Huntington Beach; OCSC Case No.: 30-2023-01315163. 2. 24-477 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision (d) of Section 54956.9). Daimler1 SA LLC v. Darryl L. Hann, et al.; OCSC Case No.: 30-2020-01166907. 6:00 PM — COUNCIL CHAMBERS RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING ROLL CALL Present: Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, and Kalmick Absent: None PLEDGE OF ALLEGIANCE — Led by Huntington Beach Police Captain Ryan Riley 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. 3. 24-472 Huntington Beach Police and Fire Chaplain Roger Wing CLOSED SESSION REPORT BY CITY ATTORNEY — None ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications that were received by her office following distribution of the Council Agenda packet which were all uploaded to the City's website and Councilmember iPads: Consent Calendar Item #7 (1 staff communication), Item #10 (1 email communication), Item #11 (2 email communications); Councilmember Items #13 (1 report, 18 email communications, 1 letter). Mayor Van Der Mark announced that from this meeting forward anyone interested in making a public comment will be required to complete their own Request to Speak form in person to ensure speakers are called in the order the forms are received. PUBLIC COMMENTS (2-Minute Time Limit due to volume of speakers) — 42 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. Sophia Beckett, Huntington Beach High School, Color Guard Team Junior Captain, was called to speak and thanked Mayor Van Der Mark for acknowledging their Gold Medal Award in competing against 60 Southern California teams in May, which provides the opportunity to compete in the World Championships in April 2025. Ms. Beckett asked for the community's support for their various upcoming fundraising activities. (00:09:43) 33 City Council/PFA Regular Meeting Minutes July 2, 2024 Page 3 of 16 Butch Twining, 58-year Huntington Beach resident, was called to speak and stated support for Councilmember Items #13 submitted by Mayor Van Der Mark, Mayor Pro Tem Burns and Councilmember McKeon regarding Proposed Charter Amendment — Environmental Protections for General Plan Amendments. (00:12:06) Pat Goodman was called to speak and stated opposition to Councilmember Items #13 submitted by Mayor Van Der Mark, Mayor Pro Tem Burns and Councilmember McKeon regarding Proposed Charter Amendment — Environmental Protections for General Plan Amendments, and asked that Councilmembers develop a plan to address Huntington Beach housing needs. (00:14:10) Wendy Rincon, 50-year Huntington Beach resident, was called to speak and asked if Councilmember Items #13 submitted by Mayor Van Der Mark, Mayor Pro Tem Burns and Councilmember McKeon regarding Proposed Charter Amendment — Environmental Protections for General Plan Amendments will include at least one Study Session, and encouraged Councilmembers and community members to sign the petitions to prevent privatizing of the Huntington Beach Public Library system. (00:16:01) Carla Fuchs was called to speak and stated support for Consent Calendar Item #11 to approve renaming the Shipley Nature Center Interpretive Center as the Shirley Dettloff Interpretive Center. (00:18:06) Jeanne Paris, long-time Huntington Beach resident, was called to speak and stated support for Councilmember Items #13 submitted by Mayor Van Der Mark, Mayor Pro Tem Burns and Councilmember McKeon regarding Proposed Charter Amendment — Environmental Protections for General Plan Amendments. (00:19:24) Amory Hanson was called to speak and stated support for Councilmember Items #13 submitted by Mayor Van Der Mark, Mayor Pro Tem Burns and Councilmember McKeon regarding Proposed Charter Amendment — Environmental Protections for General Plan Amendments. (00:20:08) Ann Palmer, 30+-year Huntington Beach resident, was called to speak and stated support for Consent Calendar Item #10 regarding positions on Legislation pending before the State and Federal Legislature, as recommended by the Intergovernmental Relations Committee (IRC). She also stated support for Councilmember Items #13 submitted by Mayor Van Der Mark, Mayor Pro Tem Burns and Councilmember McKeon regarding Proposed Charter Amendment — Environmental Protections for General Plan Amendments. (00:21:11) Unnamed Speaker was called to speak and shared her opinions regarding the Pacific Airshow, LLC v. City of Huntington Beach and Kim Carr lawsuit, and thanked City Attorney Michael Gates for preventing a more costly settlement. (00:23:19) George G. was called to speak and shared his opinions on various topics, including the Preamble to the United States Constitution. (00:25:31) Tim Geddes was called to speak and stated opposition to Councilmember Items #13 submitted by Mayor Van Der Mark, Mayor Pro Tem Burns and Councilmember McKeon regarding Proposed Charter Amendment — Environmental Protections for General Plan Amendments. (00:28:38) David Rynerson was called to speak and shared his thoughts comparing how Redondo Beach and Huntington Beach address voter issues, and encouraged Huntington Beach Councilmembers to govern in a responsible and cooperative manner. (00:30:49) 34 City Council/PFA Regular Meeting Minutes July 2, 2024 Page 4 of 16 Unnamed Speaker was called to speak and thanked the veterans who have sacrificed their lives so that he has the freedom to publicly share his opinions regarding the voting process. (00:31:58) Ryan Messick was called to speak and stated his opposition to the Tank Farm development, a non- agendized item. (00:34:22) Charles Jackson, 23-year Huntington Beach resident, was called to speak and shared his concerns related to the Builder's Remedy Act, which he believes only the City Council can stop. (00:36:31) Christopher Rini, Huntington Beach native, was called to speak and stated opposition to Councilmember Items #13 submitted by Mayor Van Der Mark, Mayor Pro Tem Burns and Councilmember McKeon regarding Proposed Charter Amendment — Environmental Protections for General Plan Amendments. (00:36:53) Russ Neal was called to speak and read his poem addressing current societal issues which closed with asking God to Bless America. (00:38:55) Mary Ann, a resident of Cerritos, was called to speak and thanked Mayor Van Der Mark, Mayor Pro Tem Burns and Councilmembers Strickland and McKeon for being examples on how to maintain and regain local control from county and state legislators, specifically referencing election reform. (00:40:46) Jo Ito, 20-year Huntington Beach resident, representing Concerned Women for America, was called to speak and thanked Councilmembers for continuing to fight for election integrity in Huntington Beach. (00:41:53) Unnamed Speaker was called to speak and shared his opposition to the State's Regional Housing Needs Assessment (RHNA) numbers for Huntington Beach and the Builder's Remedy Act. He stated support for November 2024 Council Candidates Chad Williams, Don Kennedy and Butch Twining. (00:42:40) John Scandura, Friends of Shipley Nature Center President, was called to speak and stated support for Consent Calendar Item #11 to rename the Shipley Nature Center Interpretive Center as the Shirley Dettloff Interpretive Center. (00:45:15) Ken Smith, 8-year Huntington Beach resident, was called to speak and thanked the Public Works Department for excellent service, especially related to water and wastewater treatment as noted by a recent Orange County Grand Jury report. Mr. Smith also stated his support for local rather than state control in relation to election reform. (00:47:18) Mary, an Orange County resident for over 50 years, United Sovereign Americans volunteer, was called to speak and shared information related to the state's voter base. (00:49:29) George A was called to speak and shared his opinions related to state voter data for 2022 elections and asked that Councilmembers ensure voter concerns are taken seriously. Mayor Van Der Mark asked him to complete a blue card for follow-up. (00:50:29) Unnamed Speaker was called to speak and asked for Councilmember support by reading a portion of the United Sovereign Americans resolution for a legally valid 2024 general election. (00:52:10) Nancy was called to speak and asked for Councilmember support by reading a portion of the United Sovereign Americans resolution for a legally valid 2024 general election. (00:53:08) 35 City Council/PFA Regular Meeting Minutes July 2, 2024 Page 5 of 16 Unnamed Speaker was called to speak and asked for Councilmember support by reading a portion of the United Sovereign Americans resolution for a legally valid 2024 general election. (00:54:38) Unnamed Speaker was called to speak and asked for Councilmember support by reading a portion of the United Sovereign Americans resolution for a legally valid 2024 general election. (00:55:51) Unnamed Speaker was called to speak and asked for Councilmember support by reading a portion of the United Sovereign Americans resolution for a legally valid 2024 general election. (00:57:12) Unnamed Speaker was called to speak and asked for Councilmember support by reading a portion of the United Sovereign Americans resolution for a legally valid 2024 general election. (00:58:20) Unnamed Speaker was called to speak and asked for Councilmember support by reading a portion of the United Sovereign Americans resolution for a legally valid 2024 general election. (00:59:44) Unnamed Speaker was called to speak and asked for Councilmember support by reading a portion of the United Sovereign Americans resolution for a legally valid 2024 general election. (01:01:15) Unnamed Speaker was called to speak and asked for Councilmember support by reading a portion of the United Sovereign Americans resolution for a legally valid 2024 general election. (01:02:27) Lynne, a resident of Orange County for more than 70 years, was called to speak and asked for Councilmember support by reading a portion of the United Sovereign Americans resolution for a legally valid 2024 general election. (01:03:52) Unnamed Speaker was called to speak and asked for Councilmember support for the United Sovereign Americans resolution for a legally valid 2024 general election. (01:04:52) Adam Wood, 40+-year Huntington Beach resident, and Building Industry Association – Orange County representative, was called to speak and asked that at there be a Study Session regarding Councilmember Items #13 submitted by Mayor Van Der Mark, Mayor Pro Tem Burns and Councilmember McKeon regarding Proposed Charter Amendment — Environmental Protections for General Plan Amendments. (01:06:17) Perry Clitheroe was called to speak and stated opposition to Councilmember Items #13 submitted by Mayor Van Der Mark, Mayor Pro Tem Burns and Councilmember McKeon regarding Proposed Charter Amendment — Environmental Protections for General Plan Amendments. (01:07:56) Unnamed Speaker was called to speak and stated her support for an approved Housing Element which she believes will also increase revenue for Huntington Beach. (01:10:05) Brian Vea, Huntington Beach resident, was called to speak and thanked Councilmembers for fighting against government overreach. (01:12:19) Unnamed Speaker was called to speak and shared his opinions on various issues. (01:13:53) Pablo Aspas, Huntington Beach resident, was called to speak and stated opposition to Councilmember Items #13 submitted by Mayor Van Der Mark, Mayor Pro Tem Burns and Councilmember McKeon 36 City Council/PFA Regular Meeting Minutes July 2, 2024 Page 6 of 16 regarding Proposed Charter Amendment — Environmental Protections for General Plan Amendments. (01:16:09) Chris Waring, Huntington Beach resident of nearly 71 years living in Surf City Beach Cottages, was called to speak and stated he just received an outrageous rent increase notice of 10.7% or $257 per month. (01:18:49) COUNCIL COMMITTEE APPOINTMENT ANNOUNCEMENTS — None AB 1234 REPORTING — None OPENNESS IN NEGOTIATION DISCLOSURES — None CITY MANAGER’S REPORT 4. 24-480 Huntington Beach Fire Department, in Collaboration with the Police Department and Public Works Department, Announces Class 1 Reaccreditation Fire Deputy Chief Eric McCoy presented a PowerPoint communication titled Huntington Beach Fire Department 2024 ISO Class 1 Rating, with slide entitled ISO Class 1 Rating (2), and Questions. 5. 24-482 Huntington Beach Fire Department Provides Fireworks Safety Information for the Upcoming Independence Day Holiday Police Deputy Chief Martin Ortiz presented a PowerPoint communication titled Fireworks Safety, with slides entitled: Firework Booths, Firework Safety Tips, Prohibited Areas, Proper Disposal, Illegal Fireworks, and Questions. CONSENT CALENDAR (Items 6-12) Councilmember Kalmick pulled Items #9 and #10 for further discussion. City Clerk 6. 24-463 Approved and Adopted Minutes A motion was made by Strickland, second Kalmick to approve and adopt the City Council/Public Financing Authority regular meeting minutes of June 18, 2024. The motion carried by the following roll call vote: AYES: Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, and Kalmick NOES: None 7. 24-464 Received and Filed Monthly Update of Activities for Citizen Boards, Commissions, Committees (BCCs) and Regional Agencies – June 2024 A motion was made by Strickland, second Kalmick to receive and file the monthly update of activities for Citizen Boards, Commissions, Committees (BCCs) and Regional Agencies – June 2024. 37 City Council/PFA Regular Meeting Minutes July 2, 2024 Page 7 of 16 The motion carried by the following roll call vote: AYES: Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, and Kalmick NOES: None 8. 24-457 Adopted Resolution Nos. 2024-34 and 2024-35 that call for and consolidate with the County of Orange to conduct the General Municipal Election for City Officers (three members of the City Council, a City Clerk, and a City Treasurer) to be held on Tuesday, November 5, 2024 A motion was made by Strickland, second Kalmick to adopt Resolution No. 2024-34, "A Resolution of the City Council of the City of Huntington Beach, California, calling for the holding of a General Municipal Election to be held on Tuesday, November 5, 2024, for the election of certain officers as required by the provisions of the Laws of the State of California Relating to Charter Cities;" and, adopt Resolution No. 2024-35, "A Resolution of the City Council of the City of Huntington Beach, California, requesting the Board of Supervisors of the County of Orange, California, to consolidate a General Municipal Election to be held on Tuesday, November 5, 2024, with the Statewide General Election to be held on the date pursuant to § 10403 of the Elections Code." The motion carried by the following roll call vote: AYES: Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, and Kalmick NOES: None City Manager 9. 24-473 Approved the appointment of Jeanne Paris to the City Celebration Committee as recommended by City Council Liaisons McKeon and Strickland Councilmember Kalmick pulled this item to abstain from the vote for reasons noted at the last meeting. A motion was made by Strickland, second Burns to approve the appointment of Jeanne Paris to the City Celebration Committee as recommended by City Council Liaisons McKeon and Strickland. The motion carried by the following roll call vote: AYES: Burns, Van Der Mark, Strickland, and McKeon NOES: None ABSTAIN: Moser, Bolton, and Kalmick 10. 24-443 Took Positions on Legislation Pending Before the State and Federal Legislature, as Recommended by the Intergovernmental Relations Committee (IRC) Councilmember Kalmick pulled this item to request that each recommended action item be considered separately. Councilmember Strickland invited Shannon Levin, Council Policy Analyst, to briefly describe each item before voting. A) Assembly Concurrent Resolution 182 (Dixon), the Great Pacific Garbage Patch 38 City Council/PFA Regular Meeting Minutes July 2, 2024 Page 8 of 16 A motion was made by Strickland, second Kalmick to support Assembly Concurrent Resolution 182 (Dixon) The Great Pacific Garbage Patch. The motion carried by the following roll call vote: AYES: Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, and Kalmick NOES: None B) Senate 3830 (Padilla) to Authorize the Low-Income Household Water Assistance Program A motion was made by Strickland, second Kalmick to support Senate 3830 (Padilla) to authorize the Low-Income Household Water Assistance Program. The motion carried by the following roll call vote: AYES: Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, and Kalmick NOES: None C) AB 2485 (Carillo) Regional housing need determination Councilmember Kalmick noted that since this bill was introduced in May there has been no organizational opposition. He sees this as an opportunity to acquire more information on the housing process and to provide transparency at all levels. Councilmember Bolton asked if there has been any amendment to address panel composition concerns. Analyst Levin replied there had been amendments to this item, but to the best of her knowledge none of them addressed panel composition. A motion was made by Strickland, second Van Der Mark to oppose AB 2485 (Carillo) Regional housing need: determination. The motion carried by the following roll call vote: AYES: Burns, Van Der Mark, Strickland, and McKeon NOES: Moser, and Kalmick ABSTAIN: Bolton D) AB2553 (Friedman) Housing development, major transit stops, vehicular impact fees A motion was made by Van Der Mark, second Strickland to oppose AB 2553 (Friedman) Housing development: major transit stops: vehicular impact fees. The motion carried by the following roll call vote: AYES: Burns, Van Der Mark, Strickland, and McKeon NOES: None ABSTAIN: Moser, Bolton, and Kalmick E) AB2597 (Ward) Planning and zoning revision of housing element, regional housing need allocation appeals, Southern California Association of Governments 39 City Council/PFA Regular Meeting Minutes July 2, 2024 Page 9 of 16 A motion was made by Strickland, second McKeon to oppose AB 2597 (Ward) Planning and zoning: revision of housing element: regional housing need allocation appeals: Southern California Association of Governments. The motion carried by the following roll call vote: AYES: Burns, Van Der Mark, Strickland, and McKeon NOES: None ABSTAIN: Moser, Bolton, and Kalmick F) AB3093 (Ward) Land use housing element, streamlined multifamily housing A motion was made by Strickland, second McKeon oppose AB 3093 (Ward) Land use: housing element: streamlined multifamily housing. The motion carried by the following roll call vote: AYES: Burns, Van Der Mark, Strickland, and McKeon NOES: None ABSTAIN: Moser, Bolton, and Kalmick G) SB 7 (Blakespear) Regional housing need determination Mayor Van Der Mark, with support from Councilmember Strickland, asked that this item be withdrawn from consideration and referred back to the Intergovernmental Relations Committee (IRC) since the item was recently amended. There were no objections. H) AB 2574 (Valencia) Alcoholism or drug abuse recovery or treatment programs and facilities disclosures A motion was made by Strickland, second Bolton to support AB 2574 (Valencia) Alcoholism or drug abuse recovery or treatment programs and facilities: disclosures. The motion carried by the following roll call vote: AYES: Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, and Kalmick NOES: None Community and Library Services 11. 24-468 Approved the naming of the Shipley Nature Center Interpretive Center located at 17851 Goldenwest Street as the "Shirley Dettloff Interpretive Center," as recommended by the Community & Library Services Commission A motion was made by Strickland, second Kalmick to approve the naming of the Shipley Nature Center Interpretive Center located at 17851 Goldenwest Street, "Shirley Dettloff Interpretive Center," in honor of Shirley Dettloff, as recommended by the Community & Library Services Commission. The motion carried by the following roll call vote: 40 City Council/PFA Regular Meeting Minutes July 2, 2024 Page 10 of 16 AYES: Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, and Kalmick NOES: None Public Works 12. 24-440 Approved and authorized execution of the Agreement for Acquisition and Escrow Instructions for the purchase of two Encyclopedia Lots (APNs 110-152-23 and 110- 182-11), and appropriation of funds A motion was made by Strickland, second Kalmick to approve the Agreement for Acquisition and Escrow Instructions; and authorize the Mayor and City Clerk to execute the agreement and other related documents; and authorize the City Manager to execute any other related escrow documents; and authorize the appropriation of up to $72,000 from the Preliminary Park Development Impact – Non- Residential Fund Account 23545001.81100. The motion carried by the following roll call vote: AYES: Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, and Kalmick NOES: None COUNCIL MEMBER ITEMS 13. 24-479 Approved Item Submitted by Mayor Van Der Mark, Mayor Pro Tem Burns and Council Member McKeon — Proposed Charter Amendment – Environmental Protections for General Plan Amendments Councilmember McKeon introduced this item by describing the nearly year-long process which started with Councilmember discussion on the 13,368 state-mandated Regional Housing Needs Assessment (RHNA) which required Councilmembers to sign a Statement of Overriding Consideration confirming that the 13,368 housing units were more important than the significant and unavoidable, and in some cases permanent, negative impacts to the environment. He added that twenty percent (20%) of any development would have to be designated as affordable housing. Negative impacts could include air quality, noise, infrastructure, traffic, circulation, utilities, finite amount of water, and public safety resources. The decision to impact the environment permanently and negatively is too important to be left up to a majority of four Councilmembers, and the voters should make that decision. Councilmember McKeon stated that many California cities have adopted a voter approval process for planning and zoning General Plan changes, and noted that the state always uses the rationale that the environment is a matter of statewide concern. He added that this proposed amendment will remove any grey area and ambiguity from Measure C. Councilmember McKeon described the three high levels of threshold that must be met before an item would be submitted to the voters: 1) A city-initiated General Plan update or zoning change. This item will not affect any private-sector project that pursues a zone change or General Plan update; 2) There must be an accompanying Environmental Impact Report (EIR); and, 3) The EIR has to conclude that the proposed General Plan update or zoning change presents significant and unavoidable negative impacts to the environment. He explained that if all three of these thresholds are met, then any city-initiated General Plan update or zoning change would go to a vote of the people. He noted that while he did campaign against the previously proposed Charter amendments, this proposed amendment is needed 41 City Council/PFA Regular Meeting Minutes July 2, 2024 Page 11 of 16 now in order to deal with the recent State SB 9 ruling which allows sub-dividing a single-family lot into four units, and that SB 9 is unconstitutional as it pertains to charter cities like Huntington Beach. Councilmember Kalmick stated that this item would appear to be about housing, but in his opinion, it is Council absconding its policy–making authority to the voters. He continued that he could not find a single city council that has placed such an overly broad charter amendment on their ballot, or voter initiative for any non-charter city. He added this is politics at its worst and compared it to the proposed library privatization effort which doesn't try to change procedures and policies. He stated that the current Council majority is trying to get something unpopular on the ballot to negatively impact the efforts of Councilmembers Bolton, Kalmick and Moser as they run for re-election in November. Councilmember Kalmick stated this effort is not environmental stewardship and noted the Environmental Board no longer exists, the Sustainability Master Plan has not been completed, a Climate Action Plan has not been passed, there is no Mobility Master Plan, and discussions on bike lanes and walking paths are just dismissed by the current Council majority. He added that the narrative associated with this item is a rehash of the lawsuit recently lost in San Diego. Councilmember Kalmick and Community Development Director Villasenor discussed the Housing Element capacity of around 19,000 to 20,000 units, and noted the EIR evaluated a lesser number because it also considered the General Plan buildout. Councilmember Kalmick noted that the California Environmental Quality Act (CEQA) rubric has changed dramatically in the last five years, and added there doesn't appear to be any sort of savings clause in the proposed amendment which in his opinion is just set up for disaster as there is no provision provided for CEQA changes. Councilmember Kalmick stated that councilmembers are elected to perform highly technical work, with planning and executive staff, to make the best decisions possible, which includes reading the EIR General Plan amendments. He asked how many voters would read the volumes of information required in order to make an informed decision. He noted that the current council has not certified a single Housing Element, and asked how they could ask the voters to do something they are obviously unwilling to do themselves. Councilmember Kalmick confirmed with Director Villasenor that Huntington Beach has not received any SB 9 applications. He referenced SB 1333, passed in 2017/2018, which included language to ensure location, development, approval and access to housing for all income levels in California is a statewide concern, and not exclusively a municipal affair. He further referred to specific language used in the referenced Redondo Beach action. Councilmember Kalmick stated he believes this proposed action will remove the ability to be nimble and meet the needs of the community without spending more money and time and burdening the voters with a job that Councilmembers should be doing. He referenced two current state legislative bills addressing Huntington Beach issues specifically: AB 1825 California Freedom to Read Act, and SB 1174 Elections and Voter Identification, as examples of how the state will probably respond if this item is approved. Councilmember Kalmick noted that the current Council majority voted to repeal the EIR for the Beach- Edinger Corridor Specific Plan and described the process required to proceed, noting that thankfully the process was eventually abandoned. He noted the concern of the Auto Dealers Association, and stated this is not a business–friendly amendment but rather would create a costly process that creates red tape. He added that in addition to the environment and conservation element, each project must also be evaluated for circulation, natural and environmental hazards, noise, public services, infrastructure, historic and cultural resources and coastal elements. It just doesn't make any sense to ask the voters to 42 City Council/PFA Regular Meeting Minutes July 2, 2024 Page 12 of 16 review a 10,000–page document for each proposed development project. Economic benefits need to be weighed against environmental impacts according to CEQA criteria. CEQA criteria has expanded well beyond oiled birds and pollution from smokestacks and now includes view shed corridors, tribal consultations, bisecting distant communities, short-term noise, air quality issues and greenhouse gas emissions. It is the responsibility of councilmembers to study all the documents, ask the hard questions and in consultation with staff, to reach a conclusion. Councilmember Kalmick stated on the surface this item appears to assert local control over the General Plan and zoning, however it does just the opposite. Councilmembers need to pass a Housing Element. He played a video of Yorba Linda's City Council discussion on the process, time and cost required to implement their voter approval process and which also described the state's resources to ensure a city's compliance with state development regulations. Councilmember Kalmick noted that not passing a Housing Element will open Huntington Beach to state fines and the Builder's Remedy Act where a developer is allowed to ignore the local building code and build what they want. He added this proposed process is being rushed, will not allow time for proper public input, and in the end if California can just exempt themselves from having to go through the CEQA process, it would just moot this proposed charter amendment. The unintended consequences could break the rest of the things Huntington Beach needs to do and hurt Huntington Beach businesses. Councilmember Bolton questioned the validity of a statement made in supporting documents indicating that city planning and zoning is a local municipal affair beyond the reach of state control. She noted the courts have upheld the state's actions to regulate housing, such as requiring Housing Elements, time and time again by ruling that state housing law pre-empts conflicting charter city ordinances despite the home rule doctrine. Councilmember Bolton stated she believes the reference to the state constitution in supporting documentation is also misleading for the same reasons she already referenced. She added that Yorba Linda and Costa Mesa's "Ballot Box Zoning" efforts have failed, and as shown in the previous video clip shared by Councilmember Kalmick, Yorba Linda City Council is now desperately begging the residents to do the opposite, i.e., pass a Housing Element, in order to maintain local control. She added that Costa Mesa rolled back their "Ballot Box Zoning" measure shortly after it was passed because it stifled residential and commercial development. Councilmember Bolton asked why Huntington Beach would go down the same path when there is evidence of where it leads. She asked how this proposed amendment differs from the ones implemented by Yorba Linda and Costa Mesa. City Attorney Michael Gates responded that he had not seen either Yorba Linda or Costa Mesa's amendments. He added that everything that Yorba Linda Councilmember Huang stated in the video clip is accurate for a General Law City, which is a political subdivision of the state. He continued by explaining a Charter City is different and clearly does have home rule authority. He also referenced the last part of the SB 9 ruling which Councilmember Kalmick read parts of during his comments earlier: "Accordingly, the court finds that SB 9 is neither reasonably related to ensuring access to affordable housing nor narrowly tailored to avoid unnecessary interference into local governance. SB 9 is therefore unconstitutional as violative of the home rule doctrine." City Attorney Gates added that if there is a conflict between a home rule authority, which the Redondo Beach court cited for a Charter City, that for a pre-emption to occur over a Charter City's home authority, the state law has to be narrowly tailored in the least intrusive means in order to accomplish the goal. He explained that is why SB 9 will stand upon appeal, and Huntington Beach has historically been able to invoke its home rule authority even when it is contrary to state law. He continued by stating that if you look at the federal case, the RHNA laws will or should fail because they've been on the books for 43 City Council/PFA Regular Meeting Minutes July 2, 2024 Page 13 of 16 decades for General Law cities, and are not narrowly tailored to accomplish the state's goal of advancing affordable housing. City Attorney Gates added that the perfect example is the twenty percent (20%) inclusionary rate mentioned earlier. With a RHNA number of 13,368 units, the first problem is that only about 8,100 of those are for affordable housing. The next issue is that now developers have to honor the state law of 20% inclusionary rate which means they cannot come in and build 100% affordable housing because the state wants to ensure a developer can afford to build. He added that the 8,100 divided by 20% determines that nearly 41,000 high-density housing units must be built. This is a very intrusive, not least intrusive, means and shows that the RHNA laws will fail against Charter cities when tested in court. City Attorney Gates explained that the Huntington Beach federal case is ongoing, and the state case is of a different nature. City Attorney Gates and Councilmember Bolton discussed several cases and he noted that to date no case has been lost because the appeal court only issued an alternative writ, not binding law. It was an advisory to the lower court and Huntington Beach is still in the middle of the case. Councilmember Bolton continued by asking staff if the issue of the Housing Element goes away after the voters reject it. Staff responded it is not likely that a failed vote would eliminate the Housing Element issue. Councilmember Bolton stated that in her opinion this item really appears to be an illusion, and in the end will result in state fines and the state taking over the Huntington Beach Building Department as described by Yorba Linda Councilmember Huang. Councilmember Bolton stated this item is not being honest and forthright with the residents, and it will not sidestep RHNA requirements. Councilmember Strickland and Director Villasenor discussed the definition of "significant and unavoidable environmental impact" thresholds which CEQA often changes through the years, and confirmed the Housing Element is the only city-initiated significant environmental impact project in Huntington Beach in the last few years. Councilmember Strickland and City Attorney Gates discussed whether the proposed amendment is "tightly" defined as stated by Councilmember McKeon or is "broadly" defined as stated by Councilmember Kalmick. City Attorney Gates noted that city charter language is generally basic to invoke certain powers and authorities, and noted this specific amendment proposes giving the decision authority to the voters if a city-initiated development plan results in significant and unavoidable environmental impacts or needs a statement of overriding considerations. There was also discussion on the difference between private and city-initiated development projects. City Attorney Gates noted this proposed amendment is only directed at city-initiated, not private developer-initiated, projects. Councilmember McKeon agreed with City Attorney Gates that this proposed amendment would never apply to any private industry, such as auto dealers, development plan seeking a zoning change. Mayor Van Der Mark thanked Councilmember Kalmick for bringing forth the Yorba Linda Council meeting video, and noted that Yorba Linda, as a General Law City, is also trying to fight the state's housing mandates. Councilmember McKeon shared his opinion that comparing Council’s review of the Library Department budget with the concern for significant and unavoidable environmental impacts is not analogous. A development project determined to have significant and unavoidable environmental impacts should have voter approval to proceed, rather than just the support of a Council majority. Councilmember McKeon noted that very seldom will the high threshold in this proposed amendment be triggered. He added that generally speaking mitigation options are often available and utilized and noted 44 City Council/PFA Regular Meeting Minutes July 2, 2024 Page 14 of 16 that just because no SB 9 applications have been received to date does not mean there will not be such applications in the future. He reviewed SB 9 as allowing for a single–family lot to be divided for building two duplex units with no requirement for additional parking allowance. This proposed amendment will not prevent the private sector from meeting free market demands, nor will it result in "rot" within the community as Councilmember Kalmick stated. In response to Councilmember Kalmick using the Pacific Airshow as a comparable situation for environmental impact, Councilmember McKeon noted the Airshow is a temporary 3-day situation, whereas the proposed charter amendment is intended to address permanent environmental impact situations. Councilmember McKeon stated this effort is not about the Housing Element, or just housing, but rather about any city-initiated General Plan update or zoning change where the EIR finds significant and unavoidable environmental impacts. Councilmember Moser stated she believes this is a politically motivated effort that undermines Council responsibility as elected officials to make informed decisions for the benefit of Huntington Beach. She sees this as a tactic to delay and obstruct any development to serve a political agenda. The economic impact of this proposal cannot be overstated, and the cost for potential legal battles and state penalties will only exacerbate the issue. She added that Huntington Beach cannot survive a "forever" war with the state of California. Councilmember Moser stated that Council should work collaboratively with the community to develop solutions that meet state requirements while also reflecting local priorities, focus on public outreach and education to ensure residents understand the importance of a compliant Housing Element. She sees this proposed charter amendment as a bad tactic and futile ploy that creates more chaos, and doesn't address homelessness, housing affordability, aging infrastructure, climate resiliency, or create jobs for a thriving community. She urged her colleagues to vote "No" on this item. Mayor Pro Tem Burns stated he believes this proposed amendment will strengthen the City's Charter with the intention to keep Huntington Beach a better place to live and protect Huntington Beach from outside overreach which could lower the quality of life. He stated if there is no fight, there is no win, and in his opinion, Huntington Beach is worth fighting for and he therefore supports this item. Mayor Van Der Mark stated she is not against "development" and is interested in preventing Huntington Beach from turning into Los Angeles. Councilmember Kalmick stated that environmental thresholds are set by statutes which change all the time, and he sees this effort as a "rock in the river" that CEQA will just maneuver around by establishing very high thresholds so that any move will result in significant and unavoidable environmental impact. He believes that approving this proposed amendment will burden private developers with the cost for mitigating significant and unavoidable environmental impacts. He stated agreement with Yorba Linda Councilmember Huang that this is not a building target, but a housing target. He added that if CEQA did not exist, or the state exempts housing elements and zoning amendments associated with housing, then this proposed amendment would become moot, and will just impact the City's ability to plan updates by increasing costs to fund a special election or delay action to wait for a General Election. Councilmember Kalmick stated this proposed amendment does not change any law and does not protect Huntington Beach from Sacramento. He stated there is just not enough time to proceed responsibly to get this on the November ballot. He also has concerns that the state can change thresholds and 45 City Council/PFA Regular Meeting Minutes July 2, 2024 Page 15 of 16 anything Huntington Beach wants to do will create significant thresholds and will have to go out to the voters. Councilmember McKeon stated he sees the next effort from the state will require the private sector to produce housing, or cities will be penalized. The state's one-size for every city solution to housing is not acceptable and it won't stop if cities do not fight against the mandates. He added if a beneficial development project comes forth in the future, it will be incumbent upon Councilmembers to educate the voters on its merits. Councilmember Moser stated this is a very rushed process which will not allow for appropriate discussion. She added that grant options for SB 2 funding for the homeless shelter are being passed up, and currently Huntington Beach is ineligible for Orange County Housing Financing Trust developer "gap" funding [because there is no certified Housing Element]. Councilmember McKeon stated that one of the biggest fallacies of the 20% affordable housing inclusionary rate is that it actually has an inverse effect because the other 80% is subsidizing the 20%. A 95% built out community does not have enough land to build single family homes, so in all likelihood only high–density apartments can be built. The 80% market rate units will drive up the market rate for the entire city, thereby making the entire city more unaffordable as all rents are comp based. A motion was made by McKeon, second Van Der Mark to place on the November 2024 Ballot a proposed Charter Amendment stating that "No City initiated general plan amendment or zoning change may be approved by the City where the related environmental review (EIR) finds the same proposed general plan update or zoning change presents "significant and unavoidable" negative impacts to the environment, without first receiving approval by a vote of the people." The proposed Charter Amendment should include language to the effect of "City Planning and Zoning is a local, "municipal affair," beyond the reach of State control or interference; and City Planning and Zoning is a local activity reserved for the City and its people, and not the State," and direct staff to bring back a proposed November 2024 ballot initiative within thirty (30) days for City Council approval. The motion carried by the following roll call vote: AYES: Burns, Van Der Mark, Strickland, and McKeon NOES: None ABSTAIN: Moser, Bolton, and Kalmick ADJOURNMENT — 8:55 PM a motion was made by Strickland with a second by Burns to adjourn to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Tuesday, July 16, 2024, 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 46 City Council/PFA Regular Meeting Minutes July 2, 2024 Page 16 of 16 _______________________________________ 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-Clerk ______________________________________ Mayor-Chair 47 Minutes City Council/Public Financing Authority Special Meeting City of Huntington Beach Monday, July 8, 2024 4:00 PM — Council Chambers Civic Center, 2000 Main Street Huntington Beach, California 92648 A video recording of the 4:00 PM portion of this meeting is on file in the Office of the City Clerk, and archived at www.surfcity-hb.org/government/agendas/ 4:00 PM — COUNCIL CHAMBERS CALLED TO ORDER SPECIAL MEETING — 4:00 PM ROLL CALL Present: Burns, Van Der Mark, Strickland, and McKeon Absent: Moser, Bolton, and Kalmick PLEDGE OF ALLEGIANCE — Led by Fire Deputy Chief Eric McCoy ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental communications that were received by her office following distribution of the Council Agenda packet which were all uploaded to the City's website and Councilmember iPads: Administrative Items, Item #1 (13 email communications, 1 letter, 1 statement from Councilmembers Bolton, Kalmick and Moser which was read aloud by City Clerk Estanislau for the record). PUBLIC COMMENTS (3-Minute Time Limit) — 7 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. Perry Clitheroe was called to speak and stated his opposition to Administrative Items #1 to consider the submission of one Charter Amendment ballot measure for voter approval for the November 5, 2024, General Election and the adoption of Resolution Nos. 2024-38, 2024-39 and 2024-40. (00:06:22) Tim Geddes, 40-year Huntington Beach resident and former History and Government teacher, was called to speak and stated his opposition to Administrative Items #1 to consider the submission of one Charter Amendment ballot measure for voter approval for the November 5, 2024, General Election and the adoption of Resolution Nos. 2024-38, 2024-39 and 2024-40. (00:10:23) 48 City Council/PFA Special Meeting Minutes July 8, 2024 Page 2 of 3 Amory Hanson was called to speak and stated his support for Administrative Items #1 to consider the submission of one Charter Amendment ballot measure for voter approval for the November 5, 2024, General Election and the adoption of Resolution Nos. 2024-38, 2024-39 and 2024-40. (00:13:02) Russ Neal, Huntington Beach resident, was called to speak and stated his support for Administrative Items #1 to consider the submission of one Charter Amendment ballot measure for voter approval for the November 5, 2024, General Election and the adoption of Resolution Nos. 2024-38, 2024-39 and 2024- 40. (00:14:00) Unnamed Speaker was called to speak and stated opposition to Administrative Items #1 to consider the submission of one Charter Amendment ballot measure for voter approval for the November 5, 2024, General Election and the adoption of Resolution Nos. 2024-38, 2024-39 and 2024-40. (00:15:58) Adam Wood, Huntington Beach resident and Building Industry Association – Orange County representative, was called to speak and shared his concerns about the ultimate purpose of Administrative Items #1 to consider the submission of one Charter Amendment ballot measure for voter approval for the November 5, 2024, General Election and the adoption of Resolution Nos. 2024-38, 2024-39 and 2024-40. (00:18:49) Ann Palmer, Huntington Beach resident and homeowner, was called to speak and stated support for Administrative Items #1 to consider the submission of one Charter Amendment ballot measure for voter approval for the November 5, 2024, General Election and the adoption of Resolution Nos. 2024-38, 2024-39 and 2024-40. (00:20:36) ADMINISTRATIVE ITEMS 1. 24-465 Approved the Submission of One Charter Amendment Ballot Measure for Voter Approval for the November 5, 2024, General Election and the Adoption of Resolution Nos. 2024-38, 2024-39, and 2024-40 Jennifer Carey, Acting Deputy City Manager, presented a PowerPoint communication titled Proposed Charter Amendment Measure, with slides entitled: Background, Proposed Charter Language, Proposed Ballot Question, and Recommended Action. Councilmember McKeon stated the genesis for this item occurred last year immediately after the four newly elected Councilmembers were sworn in and discussion ensued on the 13,368 state-mandated Regional Housing Needs Assessment (RHNA). He explained that the 20% inclusionary rate the state demands of development projects, or 8,000 units, must be at one of three levels of affordability, so 8,000 divided by the 20% inclusionary rate results in 41,000 units. In addition, Councilmembers were expected to sign a Statement of Overriding Consideration which stated that the 13,368 housing units were more important than the significant and unavoidable, and in some cases permanent, negative impacts to the environment. He added that statement is totally opposite of his personal convictions and found it appalling that the state was trying to force his hand on the issue. He noted that the negative impacts could include roads, infrastructure, water table, air quality, and traffic among others. Councilmember McKeon stated that there are three high levels of threshold that must be met before an item would be submitted to the voters: 1) Must be a City-initiated General Plan update or zoning change. This will not affect any private sector projects that pursue a zone change or General Plan update, or any existing Specific Plans; 2) There must be an accompanying Environmental Impact Report (EIR); and, 3) 49 City Council/PFA Special Meeting Minutes July 8, 2024 Page 3 of 3 the EIR must state that the proposed General Plan update or zoning change presents significant and unavoidable negative environmental impacts. A motion was made by Burns, second Van Der Mark to consider the proposed Charter amendment ballot measure, ballot language, and exhibits for placement on the November 5, 2024, General Municipal Election ballot for voter approval; adopt Resolution No. 2024-38, "A Resolution of the City Council of the City of Huntington Beach, California, Ordering the Submission to the Qualified Electors of the City a Certain Charter Amendment Measure Relating to Environmental Protection at the November 5, 2024, General Municipal Election as Called by Resolution 2024-34;" adopt Resolution No. 2023-39, "A Resolution of the City Council of the City of Huntington Beach, California, Setting Priorities for Filing Written Arguments Regarding a City Measure and Directing the City Attorney to Prepare Impartial Analysis of the Measure to be Submitted to the Voters at the General Municipal Election to be Held on Tuesday, November 5, 2024" as amended to note that Councilmembers Burns, McKeon and Van Der Mark will author the supporting argument; and, adopt Resolution No. 2024-40, "A Resolution of the City Council of the City of Huntington Beach, California, Providing for the Filing of Rebuttal Arguments for a City Measure Submitted at Municipal Elections." The motion as amended carried by the following roll call vote: AYES: Burns, Van Der Mark, Strickland, and McKeon NOES: None ABSENT: Moser, Bolton, and Kalmick ADJOURNMENT — 4:30 PM a motion was made by Strickland, second by Burns to adjourn to the next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority on Tuesday, July 16, 2024, 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-Clerk ______________________________________ Mayor-Chair 50 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:24-466 MEETING DATE:7/16/2024 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Eric G. Parra, Interim City Manager VIA:Eric Parra, Chief of Police PREPARED BY:Lt. Thoby Archer and Exec. Asst. Ingrid Ono Subject: Approve and authorize the execution of a Memorandum of Understanding (MOU) with the Huntington Beach Police and Community Foundation (HBPCF) Statement of Issue: The Huntington Beach Police and Community Foundation (HBPCF) is a non-profit organization that provides support to the City of Huntington Beach and the Huntington Beach Police Department through various means and desires to formalize the relationship through a memorandum of understanding. Financial Impact: A memorandum of understanding will benefit the City of Huntington Beach, as fundraising efforts from the HBPCF are realized as direct costs benefitting the City of Huntington Beach. Recommended Action: Approve and authorize the City Manager execute the "Memorandum of Understanding between the Huntington Beach Police and Community Foundation and the City of Huntington Beach.” Alternative Action(s): Do not approve and direct staff accordingly. Analysis: The Huntington Beach Police and Community Foundation is a non-profit organization that has distributed over $1,000,000 since its inception. The HBPCF has supported the City of Huntington Beach and the Police Department by contributing to scholarships, Shop with a Cop, the HBPD Awards Banquet, Special Olympics, Mounted Enforcement Unit, HBPD K-9 Unit, Baker to Vegas, and the HBPD K-9 training facility currently under construction. City of Huntington Beach Printed on 7/10/2024Page 1 of 2 powered by Legistar™51 File #:24-466 MEETING DATE:7/16/2024 Environmental Status: This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Strategic Plan Goal: Non Applicable - Administrative Item Attachment(s): 1. Memorandum of Understanding between the Huntington Beach Police and Community Foundation and the City of Huntington Beach 2. Previous Memorandum of Understanding between the Huntington Beach Police and Community Foundation and the City of Huntington Beach from 2018 City of Huntington Beach Printed on 7/10/2024Page 2 of 2 powered by Legistar™52 53 MEMORANDUM OF UNDERSTANDING THIS MEMORANDUM OF UNDERSTANDING (''MOU") is made and entered, as of March 5, 2024, by and between HUNTINGTON BEACH POLICE AND COMMUNITY FOUNDATION ("HBPCF"), a California nonprofit corporation and the CITY OF HUNTINGTON BEACH, a municipal corporation, ("City"). RECITALS WHEREAS, HBPCF was incorporated for the purpose of assisting and promoting public safety in the City; and Public safety in the City can be expanded with the assistance of private individuals and organizations; and City and HBPCF desire to memorialize the terms and conditions whereby HBPCF proposes to provide minimal or limited resources to enhance the City's public safety services; and HBPCF is a duly incorporated California nonprofit corporation authorized by law to provide the services contemplated by this MOU, NOW, THEREFORE, in consideration of the mutual terms and conditions in the MOU, City and HBPCF do hereby agree to the following: 1. TERM. The term of this MOU shall commence on March 5, 2024 (the "Commencement Date") and shall remain in effect unless and until terminated pursuant to the applicable terms hereof. This MOU shall automatically terminate five (5) years from the Commencement date, unless extended as agreed upon by both parties or sooner terminated as provided herein. 2. HBPCF'S RESPONSIBILITIES. HBPCF shall solicit, receive, distribute and administer funds, donations or resources and grants of materials, services and funds, with the prior approval of the HBPCF Board of Directors and The City Manager. Examples of fundraising activities are, but not limited to, Cars 'N Copters by the Coast, Nick Vella Memorial Beach Ride, HBPD Annual Awards Program and 3/1 Marines Run. HBPCF will not solicit, receive, accept, or distribute any donations or grants in the name of the City and/or the Police Department, including utilizing official City or Departmental logos or images. HBPCF shall administer funds provided to the HBPCF in accord with the grantee's intended future use, including but not limited to, enhancement of Police, Youth Programs, and Crime Prevention services. 1 54 3. CITY'S RESPONSIBILITIES. A. City at its sole discretion will provide limited City staff support to assist HBPCF in administering programs, including the temporary and occasional use of City office space, materials, equipment, postage and mail handling services. Use of City resources is on a limited basis and only to the extent that the resources are available. The City Manager shall determine the level of City resources to be allocated/utilized to the HBPCF. B. City shall have no duty or obligation of any kind to HBPCF, to HBPCF's employees, officers, agents, vendors or subcontractors, to provide compensation or funds resulting from or arising out of this MOU. 4. CONFLICT OF INTEREST. HBPCF and its agents and employees shall comply with all applicable Federal, State, and City laws and regulations governing conflict of interest. HBPCF will make available to its agents and employees copies of all applicable Federal, State, and City laws and regulations governing financial disclosure and conflict of interest. HBPCF does not and will not perform services for any other entity which would create a conflict, whether monetary or otherwise. 5. HOLD HARMLESS HBPCF shall protect, defend, indemnify and hold harmless City, its officers, officials, employees, and agents from and against any and all liability, loss, damage, expenses, costs (including without limitation, costs and fees of litigation of every nature) arising out of or in connection with performance of this MOU including any and all HBPCF activities or responsibilities or HBPCF' s failure to comply with any of its obligations contained in this MOU except such loss or damage which was caused by the sole negligence or willful misconduct of City. 6. GENERAL LIABILITY INSURANCE In addition to workers' compensation insurance and HBPCF's covenant to indemnify City, HBPCF shall obtain and furnish to City, a policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify HBPCF, its officers, agents, including HBPCF Representatives, and employees, while acting within the scope of their duties, against any and all claims arising out of or in connection with this Agreement, and shall provide coverage in not less than the following amount combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000. Said policy shall name City, its officers, elected or appointed officials, employees, agents and volunteers (the "Additionally Insured Paiiies") as Additional Insureds and shall specifically provide that any other insurance coverage which may be applicable shall be deemed excess coverage and that HBPCF insurance shall be primary and non-contributory with any other valid and collectible 2 55 insurance or self-insurance available to the Additionally Insured Parties. Any available insurance proceeds in excess of minimum coverage amount specified herein shall be available to the Additionally Insured Parties. All coverage available to HBPCF shall also be available to the Additionally Insured Parties. Under no circumstances shall said above-mentioned insurance contain a self-insured retention without the express written consent of City, however, an insurance policy "deductible" of $5,000.00 is permitted. HBPCF shall be responsible for causing all Subcontractors to maintain the same types and limits of insurance coverage as that required by SOCIETY by this Agreement. 7. CERTFICATES OF INSURANCE, ADDITIONAL INSURED ENDORSEMENTS Prior to commencement of this MOU, HBPCF shall furnish to City, certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverage as required by this MOU, these ce1iificates shall (a) Provide the name and policy number of each carrier and policy, (b) State that the policy is currently in force; and ( c) Promise to provide that such policies shall not be canceled or modified without thirty (30) days' prior written notice of CITY. HBPCF shall maintain the foregoing insurance coverage in force during the entire term of the MOU or any renewals or extension thereof or during any holdover period. The requirements for carrying the foregoing insurance coverage shall not derogate from HBPCF's defense, hold harmless and indemnification obligations as set forth in this MOU. City or its representatives shall at all times have the right to demand the original or a copy of any or all the policies of insurance. HBPCF shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. HBPCF shall provide a separate copy of the additional insured endorsement to each of HBPCF's insurance policies, naming the Additionally Insured Parties as Additional Insured, to the City Attorney for approval prior to any payment hereunder. A statement on an insurance certificate will not be accepted in lieu of the actual endorsement. HBPCF shall require all subcontractors to name HBPCF, its officers, employees and agents, and the Additionally Insured Paiiies as Additional Insureds on all subcontractor insurance policies using ISO form number CG 20 28 04 13 or coverage at least as broad. HBPCF shall verify that every subcontractor policy endorsement compiles with the requirements set forth herein. 3 56 8. RECORDS AND AUDIT. A. HBPCF shall keep in accordance with generally accepted accounting principles a full and complete record of all transactions in books of account and/or other records reflecting all transactions relating to the funds generated or transferred pursuant to this MOU. B. City shall have the right at all reasonable times during the term of this MOU and for a period of five (5) years after termination or expiration to examine, audit, inspect, review, extract information from, and copy all books, records, accounts, and other documents of HBPCF relating to the funds generated or transferred pursuant to this MOU. HBPCF shall make such books and records available for inspection by the City during regular business hours and HBPCF shall cooperate fully with the City and its representatives in any audit. 9. TERMINATION. The City or HBPCF may terminate this MOU for any reason upon thirty (30) days' written notice. All operations under this MOU shall cease on and after the thirtieth (30th) day following written notice of termination, and City's obligations under this MOU shall cease on that date. In the event that the City determines that the policies or programs of HBPCF conflict with the purposes of this MOU, City may immediately terminate this MOU, and HBPCF shall be entitled to no further services from City. 10. PROGRAM ADMINISTRATION. This MOU will be administered by the HBPCF Board of Directors and the City Manager in consultation with the Police Department. HBPCF shall provide a representative to be available to City for consultation and assistance during the term of this MOU. 11. ASSIGNMENT. This MOU, or any provision hereof or any right or obligation arising hereunder, is not assignable by either party in whole or in pati, without the express written consent of the other party. 12. NONDISCRIMINATION AND CIVIL RIGHTS COMPLIANCE. A. HBPCF hereby certifies and agrees that it will comply with the Title VI of the Civil Rights Act of 1975, Title IX of the Education Amendments of 1972, where applicable, and Title 43, Part 17 of the Code of Federal Regulations, Subparts A and B, to the end that no persons shall, on the ground of race, creed, color, national origin, political affiliation, marital status, sex, age or handicap, be subjected to discrimination under the privileges and use granted by this MOU or under any project, program or activity supported by this MOU. 4 57 B. HBPCF ce1iifies and agrees that all persons employed thereby, are and shall be treated equally without regard to or because of race, creed, color, national origin, political affiliation, marital status, sex, age or handicap and in compliance with all federal and state laws prohibiting discrimination in employment, including, but not limited to, the Federal Civil Rights Act of 1964; the Unruh Civil Rights Act; the Caiiwright Act; and the State Fair Employment Practices Act. C. HBPCF certifies and agrees that subcontractors, bidders and vendors thereof are and shall be selected without regard to or because of race, creed, color, national origin, political affiliation, marital status, sex, sexual orientation, age or handicap. D. All employment records shall be open for inspection at any reasonable time during the term of this MOU for the purpose of verifying the practice of nondiscrimination by HBPCF in the areas heretofore described. E. If City finds that any of the above provisions have been violated, the same shall constitute a material breach of this MOU and the City may immediately terminate, or suspend this MOU. 13. POLITICAL ACTIVITIES. Nothing contemplated in this MOU shall be for the purpose of promoting any political activities. 14. COMPLIANCE WITH LAWS. HBPCF and City agree to be bound by all applicable Federal, State and City laws, ordinance, and directives insofar as they pe1iain to the performance of this MOU. 15. GOVERNING LAW. This MOU shall be construed in accordance with the governed by the laws of the State of California. 16. SEVERABILITY. The invalidity in whole or in paii of any provision of this MOU shall not void or affect the validity of any other provision. 17. NOTICE. Any notice or notices required or permitted to be given pursuant to this MOU may be personally served on the other paiiy by the party giving such notice, or may be served by certified mail, postage prepaid, return receipt requested. 5 58 All notices to City shall be sent addressed to the following: Chief of Police Huntington Beach Police Department 2000 Main St., PO Box 70 Huntington Beach, California 92648 All notices to HBPCF shall be sent addressed to the following: President of the Board P.O. Box 4538 Huntington Beach, California 92648 18. MISCELLANEOUS. A. This MOU shall not be amended nor any provision or default waived except in writing signed by the parties. B. This MOU constitutes the entire understanding between parties and supersedes all other MOUs, oral or written, with respect to the subject matter herein. C. This MOU is not intended to and shall not be construed to create a principal-agent relationship between the City and HBPCF and HBPCF shall not hold itself out as an agent of the City or its Police Department. This MOU is not intended to and shall not be construed to create a partnership, joint venture or any other relationship between the parties. (SIGNATURES ON FOLLOWING PAGE) 6 59 IN WITNESS WHEREOF, HBPCF hereto have caused these presents to be duly executed with all the formalities required by law on the respective dates set fo1ih opposite their signatures. Huntington Beach Police and Community Foun B ·-,,.i,,.,L.LJ.L!L...l.,..cl='~~.!....L./.µ._.l:li=e::1.2~--- D 1 (1 JJ rJ E, print name ITS: (circle one) Chairman/PresidentNice President =- AND By:~k~ tmTlff2' Kf?J&) lii ·int name ITS: (circle one) Executive Director/Chief Financial Officer/Secretary -Treasurer 7 Chief of Police REVIEWED AND APPROVED: City Manager 60 State Farm STATE FARM GENERAL INSURANCE COMPANY □ &., A STOCK COMPANY WITH HOME OFFICES IN BLOOMINGTON, ILLINOIS RENEWAL OECLAflATIONS l!&~ ~ eoBox 2915 Bloommgton IL 61702-2915 Named Insured AT2 004168 3125 M-23-1424-FB92 F N HUNTINGTON BEACH POLICE & COMMUNITY FOUNDATION PO BOX 4538 HUNTINGTN BCH CA 92605-4538 11 1•111 111 1l11 l11 ll1••1111 111•1 111111111 11l1111 •1ll1•1 11•11 111 11 1 Policy Number 92-KA-T847-3 Policy Period Effective Date Expiration Date 12 Molilths OCT 1 2023 OCT 1 2024 The poli~y per. iod begins cJnd ends at 12:01 am standard time at the premises location. Agent and Mailing Address DIANNE THOMPSON 7923 WARNER AVE STE A HUNTINGTN BCH CA 92647-4720 PHONE: (714) 698-0202 Businessowners Policy Automatic Renewal -If the policy period is shown as 12 months , this policy will be renewed automatically subjectto the premiums, rules and forms in effect for each succeeding policy period . lfthis policy is terminated. we will give you and the Mortgagee/Lien holder written notice in compliance with the policy provisions or as required by law . Entity: Corporation NOTICE : Information concerning changes in your policy language is included . Please call your agent if you have any questions. POLICY PREMIUM Discounts Applied: Years in Business Prepared JUL 19 2023 CMP-4000 026164 294 E 1Y $ 862.00 © Copyright, State Farm Mutual Automobile Insurance Company, 2008 Includes copyrighted material of Insurance Services Office, Inc., with its permission . Continued on Reverse Side of Page Page 1 of 7 61 M 26164 RENEWAL DECLARATIONS (CONTl,NUEO) ' Bus inessowners Policy: for HUNTINGTON BEACH POLICE & Policy Number 92-KA· T847-3 SECTION I -PROPERTY SCHEDULE Location Locati on of Limi t of Insurance* Limit of Insurance* Seasonal Number Des c rib ed Increase- Premises Coverage A-Covera~e B -Busin ess Bu il dings Business ersonal Per son a l Prope rt y Prope rty 001 16131 GOT HAR D ST STE H No Cov erage $ 10 ,900 25% HUNTINGT N SCH CA 92647-3650 l * As of the eff ec tiv e date of t his policy , the Lim it of Insurance as sh own in clude s any increase in t he hm1 t due to Inflation Co verage. SE CTION I-INFLATION COVERAGE INDEX(ES} Cov A -Inflation Coverage Inde x : Cov B -Consumer Price Index : SECT ION 1-DEDUCTIBLES Bas ic Deductible Special Deductibles : Money and Securities $1,000 $250 N/A 304.1 Equipme nt Break down Other deductibles may apply -refer to policy. Prepared JUL 19 2023 CMP-4000 026164 © Copyri gh t, St ate Fa rm Mutu al Au to mobil e Insur ance Comp any, 2008 Includes copyrigh te d material of Ins ura nce Serv ices Offi ce, Inc ., w ith its perm ission . Continued on Ne x t Pag e $1 ,000 Page 2 of 7 62 .,,du::rdrm &®. M 261 64 D RENEWAL DECLARATIONS (CONTINUED) Businessowners PoliC¥ for HUNTINGTON BEACH POLICE & Policy Number 92-KA-T847-3 SECTION I -EXTENSIONS OF COVERAGE -LIMIT OF INSURANCE -EACH DESCRIBED PREMISES Th e coverages and corresponding limits shown below apply separate ly to each described pre mises shown in th ese Declarations, unless indicated by "See Schedule." If a coverage does not have a corresponding limit shown below, but has "Included" indicated, please refer to that policy provision for an explanation of. that coverage. COVERAGE Accou nts Re ceiva ble On Pre mises Off Premises Arson Reward Collapse Damage To Non-Owned Buildings From Theft, Bu rglary Or Robbery Deb ris Removal Equ ipment Breakdown Fire Depart ment Service Charge Fire Extin guisher Systems Recharge Expense Forgery Or Alte ration Glass Expenses Increased Cost Of Construction And Demoli tio n Costs (applies only when buildings are , insu red on a replaceme nt cost basis) Money A nd Securities (Off Premises) Money A nd Securities (On Premises) Money Orders And Counterfeit Money Newly Acqu i red Business Pe rso nal Prope rty (applies only if this policy provides Coverage B -Business Personal Property) Newly Acquired Or Constructed Buildings (applies only if this policy provides Coverage A -Buildings) Prepa r ed JUL 19 2023 CMP-4000 026165 294 E © Copyr igh t, State Farm Mu tu al Au tomobile Insu rance Compan y, 20D8 Includes copyrighted material of In suranc e Service s Office , Inc ., with its pe rmission . Continued on Reverse Side of Page LIMITOF INSURANCE $10 ,000 $5 ,000 $5 ,000 Included Coverage B Limit 25% of covered loss Included $2 ,500 $5 ,000 $10 ,000 Included 10% $2 ,000 $5 ,000 $1 ,000 $100,000 $250 ,000 Page 3 of 7 63 RENEWAL DECLARATIONS (CONTINUED} Businessowners Policy for HUNTINGTON BEACH POLICE & Policy Number 92-KA-T847-3 Ordinance Or Law -Equipment Coverage Outdoor Property Personal Effects (applies only to those premises provided Coverage B -Business Personal Property) Personal Property Off Premises Pollutant Clean Up And Removal Preservation Of Property Property Of Others (applies only to those premises provided Coverage B -Business Personal Property) Signs Valuable Papers And Records On Premises Off Premises SECTION I -EXTENSIONS OF COVERAGE -LIMIT OF INSURANCE -PER POLICY M 26164 Included $5,000 . $2,500 $15,000 $10,000 30 Days $2,500 $2,500 $10,000 $5,000 The coverages and cor,responding limits shown below are the most we will pay regardless of the number of described premises shown in these Declarations. COVERAGE LIMIT OF INSURANCE Loss Of Income And Extra Expense Actual Loss Sustained -12 Months SECTION II -LIABILITY C OVERAGE Coverage L -Business Liability Prepared JUL 19 2023 CMP-4000 026165 © Copyright, State Farm Mutual Automobile Insurance Company, 2008 Includes copyrighted material of Insurance Services Office, Inc ., with its permission . Continued on Next Page LIMIT OF INSURANCE $1,000,000 Page 4 of 7 64 RENEWAL DECLARATIONS (CONTINUED) Businessowners Policy for HUNTINGTON BEACH POLICE & Policy Number 92-KA-T847-3 Coverage M -Medical Expenses (Any One Pe rson) Damage To Premises Rented To You AGGREGATE LIMITS Products/Completed Operations Aggregate General Aggregate M 261 64 $10,000 $300 ,000 LIMIT OF IN S URANC E $2 ,000,000 $2 ,000,000 Each paid claim for Liability Coverage reduces the amount of insurance we provide du ring the applicable annual period. Please refer to Section II -Liab ility in the Coverage Form and any attached endorsements. Your policy consists of these Declarations, the BUSINESSOWNERS COVERAGE FORM shown below, and any other forms and endorsements that apply, including those shown below as well as those issu ed su bsequent to the issuance of this policy. FORMS AND ENDORSEMENTS CMP -4101 FE-6999.3 CMP-4260.1 CMP-4261 CMP-4705.2 CMP-4709 CMP-4804 FD-6007 Prepa red JUL 19 2023 CMP-4000 Businessowners Coverage Form *Terrorism Insurance Cov Notice Amendatory Endorsement-CA Amendatory Endorsement Loss of Income & Ext ra Expe nse Money and Securities Addi lnsd Club Members Inland Ma rine Attach Dec * New Form Attached © Copyr igh t, St ate Farm Mutua l Automobile In surance Company, 2008 Include s copyr ig ht ed material of Insurance Service s Office, In c., with its per mi ssi on . □ 026166 294 E Continued on Reverse Side of Page Page 5 of 7 65 M 26164 RENEWAL DECLARATIONS (CONTl!NUED) Businessowners Policy: for HUNTINGTON BEACH POLICE & Policy Number 92-KA-T847-3 This policy is issued by the State Farm General Insurance Company . Participating Policy You are entitled to participate in a distribution of the earnings of the company as determined by our Board of Directors in accordance with the Company's Articles of Incorporation, as amended . In Witness Whereof, the State Farm General Insurance Compan y has caused this policy to be signed by its President and Secretary at Bloomington, Illinois . ~m-~ ~~ Secretary President IMPORTANT NOTICE: California law requires us to provide you with information for filing complaints with the State Insurance Department regarding the coverage and service provided unde r this policy. Your agent's name, and contact information are provided on the front of this document. Another option is to re ach out by mail or phone directly to: State Farm® Executive cu,tomer Service PO Box 2320 Bloomington IL 61702 Phone # 1-800-ST ATE FARM (1-800-782-8332) Department of Insurance complaints should be filed only after you and State Farm or your agent o r other company representat ive have failed to reach a satisfactory agreement on a problem. California Department of Insurance Consumer Services Division 300 South Spring Street Los Angeles, CA 90013 Phone # 1-800-927-HELP (4357) or visit www .insurance.ca.gov/01-Cfil!§Y!!!.fil§. Prepared JUL 19 2023 CMP-4000 © Copyright, State Farm Mutual Automob ile Insurance Company, 2008 Includes copyrighted material of Insura nce Se rv ic es Offi ce , Inc., with its permission . 026166 Continued on Next Page Page 6 of 7 66 State Farm &_ M 26164 RENEWAL DECLARATIONS (CONTINUED) Businessowners Policy: for HUNTINGTON BEACH POLICE & Policy Number 92-KA-T847-3 ~ NOTICE TO POLICYHOLDER: For a comprehensive description of coverages and forms, please refer to your policy. Policy changes requested before the "Date Prepared", which appear on this notice, are effective on the Renewal Date of this policy unless otherwise indicated by a separate endorsement, binder, or amended declarations. Any coverage forms attached to this notice are also effective on the Renewal Date of this policy. Policy changes requested after the "Date Prepared" will be sent to you as an amended declarations or as an endorsement to your policy. Billing for any additional premium for such changes will be mailed at a later date . If, during the past year, you've acquired any valuable property items, made any improvements to insured property, or have any questions about your insurance coverage, contact your State Farm agent. Please keep this with your policy . Your coverage amount .... D It is up to you to choose the coverage and limits that meet your needs . We recommend that you purchase a coverage limit equal to the estimated replacement cost of your structure. Replacement cost estimates are available from building contractors and replacement cost appraisers, or, your agent can provide an estimate from Xactware , lnc.®using information you provide about your structure. We can accept the type of estimate you choose as long as it provides a reasonable level of detail about your structure. State Farm ®does not guarantee that any estimate will be the actual future cost to rebuild your structure . Higher limits are available at higher premiums. Lower limits are also available, as long as the amount of coverage meets our underwriting requirements . We encourage you to periodically review your coverages and limits with your agent and to notify us of any changes or additions to your structure. Prepared JUL 19 2023 CMP-4000 026167 294 E © Copyright, State Farm Mutual Automobile Insurance Company, 2008 Includes copyrighted material of Insurance Services Office, Inc., with its permission . Page 7 of 7 67 92-KA-T847-3 M 26164 026167 68 State Farm STATE FARM GENERAL INSURANCE COMPANY 0 A ® A STOCK COMPANY WITH HOME OFFICES IN BLOOMINGTON, ILLINOIS INLAND MARINE ATTACHING DECLARATIONS Po Box 2915 Btoommgton IL 61702-2915 Named Insured M-23-1424-FB92 F N HUNTINGTON BEACH POLICE & COMMUNITY FOUNDATIOlt Policy Number 92-KA-T84 7-3 Policy Period Effective Date Expiration Date 12 Months OCT 1 2023 OCT 1 2024 The poli~y period begins and ends at 12:01 am standard time atthe premises location . I _fl PO BOX 4538 HUNTINGTN BCH CA 92605-4538 g ~ l'- iil 0 ATTACHING INLAND MARINE Automatic Renewal -If the policy period is shown as 12 months, this policy will be renewed automatically subject to the premiums, rules and forms in effect for each succeeding policy period . If this policy is terminated, we will give you and the Mortgagee/Lienholder written notice in com pliance with the policy provisions or as required by law. Annual Policy Premium Included The above Premium Amount is included in the Policy Premi um shown on the Decl arations . Your policy consists of these Declarations, the INLAND MARINE CONDITIONS shown below, and any other forms and endorsements that apply, including those shown below as well as those issued subsequentto t he iss uance of this policy . Forms. Options. and Endorsements FE-8739 FE-6271 FE-8745 Inland Marine Conditions Arnendatory Endorsement Inland Marine Computer Prop See Reverse for Schedule Page with Limits Prepared JUL i 9 2023 FD-6007 026168 © Copyright, State Farm Mutual Automobile In surance Comp any, 2008 Includes copyrighted material of Insuran ce Services Office, Inc., with its permission . 530-606 a.2 05-31 -2011 (olf3232cl 69 92-KA-T847-3 ATTACHING INLAND MARINE SCHEDULE PAGE ATTACHING INLAND MARINE ENDORSEMENT NUMBER FE-8745 COVERAGE Inland Marine Computer Prop Loss of Income and Extra Expense $ $ LIMIT OF INSURANCE 25,000 25,000 DEDUCTIBLE AMOUNT $ 500 M 26164 ANNUAL PREMIUM Included Included ----------OTHER LIMITS AND EXCLUSIONS MAY APPLY -REFER TO YOUR POLICY--------- Prepared JUL 19 2023 FD-6007 026168 © Copyright, State Farm Mutual Automobile Insurance Company, 2008 Includes copyrighted material of Insurance Services Office, Inc ., with its permission . 530 -686 a.1 05-31 -1011 (olf3133c 70 -,"u&.1.1 Pl 'rll &© 92-KA-T847-3 026169 FE-6999.3 Page 1 of 1 In accordance with the Terrorism Risk Insurance Act of 2002 as amended and extended by the Terrorism Risk Insurance Program Reauthorization Act of 2019, this disclosure is part of your policy. POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE Coverage for acts of terrorism is not excluded from your policy. However your policy does contain other exclusions which may be applicable, such as an exclusion for nuclear hazard . You are hereby notified that the Terrorism Risk Insurance Act as amended in 2019, defines an act of terrorism in Section 102(1) of the Act: The term "act of terrorism" means any act that is certified by the Secretary of the Treasury-in consultation with the Secre-tary of Homeland Security, and the Attorney General of the United States-to be an act of terrorism; to be a violent act or an act that is dangerous to human life , property, or infrastructure; to have resulted in damage within the United states, or outside the United States in the case of certain air carriers or vessels or the premises of a United States mission; and to have been commit-ted by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United states Government by coer-cion. Under this policy, any covered losses resulting from certified acts of terrorism may be partially reimbursed by the United States Government under a formula established by the Terrorism Risk Insurance Act, as amended . Under the formula, the United States Government generally reimburses 80% beginning on January 1, FE-6999.3 2020 of covered terrorism losses exceeding the statutorily estab-lished deductible paid by the insurance company providing the coverage. The Terrorism Risk Insurance Act as amended, con-tains a $100 billion cap that limits U.S. Government reimburse-ment as well as insurers' liability for losses resulting from certified acts of terrorism when the amount of such losses exceeds $100 billion in any one calendar year. If the aggregate insured losses for all insurers exceed $100 billion, your coverage may be re-duced. There is no separate premium charged to cover insured losses caused by terrorism. Your insurance policy establishes the coverage that exists for insured losses . This notice does not expand coverage beyond that described in your policy. THIS IS YOUR NOTIFICATION THAT UNDER THE TERROR-ISM RISK INSURANCE ACT, AS AMENDED, ANY LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM UN-DER YOUR POLICY MAY BE PARTIALLY REIMBURSED BY THE UNITED STATES GOVERNMENT AND MAY BE SUB-JECT TO A $100 BILLION CAP THAT MAY REDUCE YOUR COVERAGE. ©, Copyright, State Farm Mutual Automobile Insurance Company , 2020 □ 71 92·KA-T847-3 026169 M 26164 72 I_~ 0 0 ~ R 0 92-KA-T847-3 026170 IMPORTANT NOTICE Anti-Fraud Disclosure For your protection California law requires notification of the fo ll owing disclosure : 553-4370 CA Any person who knowingly presents fals e or fraudulent information to obtain or amend insurance coverage or to make a claim for the payment of a loss is guilty of a crime and may be subject to fine s and confinement in state prison . 553-4370 CA □ 73 92-KA-T847-3 026170 M 26164 HUNTINGTON BEACH POLICE AND COMMUNITY FOUNDATION 92-G6-S487-3 MAY 1 2022- MAY 1 2023 92-G6-S487-3 MAY 1 2022- MAY 1 2023EFFECTIVE: 74 &State Farm ™ ADDITIONAL INSURED ENDORSEMENT OWNERS, LESSEES OR CONTRACTORS (FORM B) POLICY NUMBER(S): 92-KA-T847-3 EFFECTNE: OCT 1 2022-OCT 1 2023 NAMED INSURED: HUNTINGTON BEACH POLICE & COMMUNITY FOUNDATION POBOX4538 HUNTINGTN BCH CA 92605-4538 NAME OF PERSON OR ORGANIZATION: ADDITIONAL INSUREDS: HUNTINGTON BEACH POLICE & COMMUNITY FOUNDATION POBOX4538 HUNTINGTN BCH CA 92605-4538 CITY OF HUNTINGTON BEACH ITS OFFICERS, ELECTED OR APPOINTED OFFICIALS, EMPLOYEES, AGENTS AND VOLUNTEERS WHO IS AN INSURED, UNDER SECTION II DESIGNATION OF INSURED, IS AMENDED TO INCLUDE AS AN INSURED THE PERSON OR ORGANIZATION SHOWN ABOVE, BUT ONLY WITH RESPECT TO LIABILITY ARISING OUT OF YOUR WORK FOR THAT INSURED BY OR FOR YOU. THE INSURANCE AFFOREDED BY THE POLICY FOR THE ADDITIONAL INSURED(S) IS PRIMARY INSURANCE AND ANY OTHER INSURANCE MAINTAINED BY OR AVAILABLE TO THE ADDITIONAL INSURED(S) IS NON CONTRIBUTORY. POLICY NUMBER(S): 92-KA-T847-3 OCT 1 2022-OCT 1 2023 75 A State Farm™ NAMED INSURED: HUNTINGTON BEACH POLICE & COMMUNITY FOUNDATION POBOX4538 HUNTINGTN BCH CA 92605-4538 ADDITIONAL INSUREDS: HUNTINGTON BEACH POLICE & COMMUNITY FOUNDATION POBOX4538 HUNTINGTN BCH CA 92605-4538 CITY OF HUNTINGTON BEACH ITS OFFICERS, ELECTED OR APPOINTED OFFICIALS, EMPLOYEES, AGENTS AND VOLUNTEERS **Notice of Cancellation will be sent to Additional Insured 30 days prior to the expiration of the above policies* The insurance to the Additional Insured, as set forth in the FE-6324 Endorsement shall be Primary, but only with respects with claims made or suits for damages for which our named insured is provided coverage and which arises out of our contributory as respects coverage afforded for our Named Insured. All others provisions of policy apply. 76 Dept ID PD-18-003 Page 1 of 2 Meeting Date 4/16/2018 ftPPR._CJVet:> 7-0 CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 4/16/2018 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Robert Handy, Chief of Police SUBJECT: Approve and authorize execution of a Memorandum of Understanding (MOU) between the City of Huntington Beach and Huntington Beach Police and Community Foundation (HBPCF) Statement of Issue: In 2015, the Huntington Beach Police and Community Foundation (HBPCF) was formed as an independent 501,c.(3) corporation to foster support for the Huntington Beach Police Department (HBPD), the employees of the HBPD, and the Huntington Beach community. As the purpose of the HBPCF is to support the police department and its mission, the attached operating agreement defines roles and responsibilities. Financial Impact: There is no direct financial impact to the City. Recommended Action: Approve and authorize the City Manager to execute the five-year "Memorandum of Understanding" between the City of Huntington Beach and Huntington Beach Police and Community Foundation (HBPCF). Alternative Action(s): Do not approve and direct staff accordingly. Analysis: In 2015, the HBPCF was created as an independent nonprofit to support the police department, police employees, and the mission of the police department in the community. The HBPCF was created after unsuccessful attempts to fund several activities such as an awards ceremony to honor employees and youth programs targeting at-risk children in Huntington Beach. The HBPCF raises money through corporate and individual donations to directly support the HBPD, HBPD employees, and programs in the community that help foster a safer Huntington Beach. The HBPCF is managed by a Board of Directors representing the greater Huntington Beach community. The HBPCF Board is governed by Articles of Incorporation and Bylaws which are registered with the State of California. By approving the agreement, the City agrees to allow for minimal staff or resources not to exceed the benefit being provided to the Police Department by the HBPCF. The HBPCF agrees to maintain ex-officio board positions for the Police Chief and City Attorney, as well as other procedures, to ensure the City's interests are maintained. Item 5. -1 HB-126- 77 Environmental Status: Not applicable. Strategic Plan Goal: Enhance and maintain public safety Attachment(s): 1) Memorandum of Understanding HB -27- Dept. ID PD-18-003 Page 2 of 2 Meeting Date: 4/16/2018 Ite1n 5. - 2 78 MEMORANDUM OF UNDERSTANDING THIS MEMORANDUM OF UNDERSTANDING ("MOU") is made and entered, as of April 16, 2018, by and between HUNTINGTON BEACH POLICE AND COMMUNITY FOUNDATION ("HBPCF"), a California nonprofit corporation and the CITY OF HUNTINGTON BEACH, a municipal corporation, ("City"). RECITALS WHEREAS, HBPCF was incorporated for the purpose of assisting and promoting public safety in the City; and Public safety in the City can be expanded with the assistance of private individuals and organizations; and City and HBPCF desire to memorialize the terms and conditions whereby HBPCF proposes to provide minimal or limited resources to enhance the City's public safety services; and HBPCF is a duly incorporated California nonprofit corporation authorized by law to provide the services contemplated by this MOU, NOW, THEREFORE, in consideration of the mutual terms and conditions in the MOU, City and HBPCF do hereby agree to the following: 1. TERM. The term of this MOU shall commence on April 17, 2018 (the "Commencement Date") and shall remain in effect unless and until terminated pursuant to the applicable terms hereof. This MOU shall automatically terminate five (5) years from the Commencement date, unless extended or sooner terminated as provided herein. 2. HBPCF'S RESPONSIBILITIES. HBPCF shall solicit, receive, distribute and administer funds, donations or resources and grants of materials, services and funds, or assist in such efforts as directed by the City and with the prior approval of the HBPCF Board of Directors and the City Manager. 1 79 HBPCF will not solicit, receive, accept, or distribute any donations or grants in the name of the City and/or the Police Department, including utilizing official City or Departmental logos or images. HBPCF shall administer funds provided to the HBPCF in accord with the grantee's intended future use, including enhancement of Police, Youth Programs, and Crime Prevention services. 3. CITY'S RESPONSIBILITIES. A. City at its sole discretion will provide limited City staff support to assist HBPCF in administering programs, including the temporary and occasional use of City office space, materials, equipment, postage and mail handling services. Use of City resources is on a limited basis and only to the extent that the resources are available. The City Manager shall determine the level of City resources to be allocated/utilized to the HBPCF. B. City shall have no duty or obligation of any kind to HBPCF, to HBPCF's employees, officers, agents, vendors or subcontractors, to provide compensation or funds resulting from or arising out of this MOU. 4. CONFLICT OF INTEREST. HBPCF and its agents and employees shall comply with all applicable Federal, State, and City laws and regulations governing conflict of interest. HBPCF will make available to its agents and employees copies of all applicable Federal, State, and City laws and regulations governing financial disclosure and conflict of interest. HBPCF does not and will not perform services for any other entity which would create a conflict, whether monetary or otherwise. 5. RECORDS AND AUDIT. A. HBPCF shall keep in accordance with generally accepted accounting principles a full and complete record of all transactions in books of account and/or other records reflecting all transactions relating to the funds generated or transferred pursuant to this MOU. 2 80 B. City shall have the right at all reasonable times during the term of this MOU and for a period of five (5) years after termination or expiration to examine, audit, inspect, review, extract information from, and copy all books, records, accounts, and other documents of HBPCF relating to the funds generated or transferred pursuant to this MOU. HBPCF shall make such books and records available for inspection by the City during regular business hours and HBPCF shall cooperate fully with the City and its representatives in any audit. 6. TERMINATION. The City or HBPCF may terminate this MOU for any reason upon thirty (30) days' written notice. All operations under this MOU shall cease on and after the thirtieth (30th) day following written notice of termination, and City's obligations under this MOU shall cease on that date. In the event that the City determines that the policies or programs of HBPCF conflict with the purposes of this MOU, City may immediately terminate this MOU, and HBPCF shall be entitled to no further services from City. 7. PROGRAM ADMINISTRATION. This MOU will be administered by the HBPCF Board of Directors and the City Manager in consultation with the Police Department. HBPCF shall provide a representative to be available to City for consultation and assistance during the term of this MOU. 8. ASSIGNMENT. This MOU, or any provision hereof or any right or obligation arising hereunder, is not assignable by either party in whole or in part, without the express written consent of the other party. 9. NONDISCRIMINATION AND CIVIL RIGHTS COMPLIANCE. A. HBPCF hereby certifies and agrees that it will comply with the Title VI of the Civil Rights Act of 1975, Title IX of the Education Amendments of 1972, where applicable, and Title 43, Part 17 of the Code of Federal Regulations, Subparts A and B, to the end that no persons shall, on the ground of race, creed, color, national origin, political affiliation, marital status, sex, age or handicap, be subjected to discrimination under the 3 81 privileges and use granted by this MOU or under any project, program or activity supported by this MOU. B. HBPCF certifies and agrees that all persons employed thereby, are and shall be treated equally without regard to or because of race, creed, color, national origin, political affiliation, marital status, sex, age or handicap and in compliance with all federal and state laws prohibiting discrimination in employment, including, but not limited to, the Federal Civil Rights Act of 1964; the Unruh Civil Rights Act; the Cartwright Act; and the State Fair Employment Practices Act. C. HBPCF certifies and agrees that subcontractors, bidders and vendors thereof are and shall be selected without regard to or because of race, creed, color, national origin, political affiliation, marital status, sex, sexual orientation, age or handicap. D. All employment records shall be open for inspection at any reasonable time during the term of this MOU for the purpose of verifying the practice of nondiscrimination by HBPCF in the areas heretofore described. E. If City finds that any of the above provisions have been violated, the same shall constitute a material breach of this MOU and the City may immediately terminate, or suspend this MOU. 10. POLITICAL ACTIVITIES. Nothing contemplated in this MOU shall be for the purpose of promoting any political activities. 11. COMPLIANCE WITH LAWS. HBPCF and City agree to be bound by all applicable Federal, State and City laws, ordinance, and directives insofar as they pertain to the performance of this MOU. 12. GOVERNING LAW. This MOU shall be construed in accordance with the governed by the laws of the State of California. 4 82 13. SEVERABILITY. The invalidity in whole or in part of any provision of this MOU shall not void or affect the validity of any other provision. 14. NOTICE. Any notice or notices required or permitted to be given pursuant to this MOU may be personally served on the other party by the party giving such notice, or may be served by certified mail, postage prepaid, return receipt requested. All notices to City shall be sent addressed to the following: Chief of Police Huntington Beach Police Department 2000 Main St., PO Box 70 Huntington Beach, California 92648 All notices to HBPCF shall be sent addressed to the following: President of the Board P.O. Box 4538 Huntington Beach, California 92648 15. MISCELLANEOUS. A. This MOU shall not be amended nor any provision or default waived except in writing signed by the parties. B. This MOU constitutes the entire understanding between parties and supersedes all other MOUs, oral or written, with respect to the subject matter herein. C. This MOU is not intended to and shall not be construed to create a principal-agent relationship between the City and HBPCF and HBPCF shall not hold itself out as an agent of the City or its Police Department. This MOU is not intended to and shall not be construed to create a partnership, joint venture or any other relationship between the parties. (SIGNATURES ON FOLLOWING PAGE) 5 83 IN WITNESS WHEREOF, HBPCF hereto have caused these presents to be duly executed with all the formalities required by law on the respective dates set forth opposite their signatures. Huntington Beach Police and Community ~~unda;pw~~ Name hi Li-LB-H .8L,Lh.1e _A_~_/_L __ ll __ ,2018 Secretary "Foundation": "City" (SIGN A TURES CONTINUED) --------' 2018 CITY OF HUNTINGTON BEACH, a municip ion By_--+:e+--:.-ff-1!---!-----J"--=--------- r This MOU is approved as to form on 6 84 April 18, 2018 President of the Board City of Huntington Beach 2000 Main Street , Huntington Beach, CA 92648 (714) 536-5227 ♦ www.huntingtonbeachca.gov Office of the City Clerk · Robin Estanislau, City Clerk Huntington Beach Police and Community Foundation P.O. Box 4538 Huntington Beach, California 92648 Dear Mr./Ms. President: Enclosed is a fully executed copy of the "Memorandum of Understanding Between the Huntington Beach Police and Community Foundation and the City of Huntington Beach." Sincerely, Robin Estanislau, CMC City Clerk RE:ds Enclosure Sister Cities: Anja, Japan • Waitakere, New Zealand City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:24-490 MEETING DATE:7/16/2024 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Eric G. Parra, Interim City Manager VIA:Eric Parra, Chief of Police PREPARED BY:Lt. Thoby Archer and Exec. Asst. Ingrid Ono Subject: Approve and authorize execution of agreement with the City of Costa Mesa for Public Safety Helicopter Services Statement of Issue: Approval of a three-year contract agreement with City of Costa Mesa for Public Safety Helicopter Services. Financial Impact: The proposed contract generates up to $300,000 per year in General Fund revenue for the City of Huntington Beach in exchange for Public Safety Helicopter Services for the City of Costa Mesa. Costa Mesa is requesting the contract be modified from calls for service and proactive patrol, to calls for service only. This would mean our helicopter would only respond for calls for service when requested by Costa Mesa, potentially resulting in less income than previous years. The rate was increased from $800 an hour to $840 an hour last year, as allowed by the contract. This year the contract will bill at $850 an hour. Recommended Action: Approve and authorize the Mayor and City Clerk to execute the "Services Agreement for Public Safety Helicopter Support Between the City of Huntington Beach and the City of Costa Mesa.” Alternative Action(s): Do not approve and direct staff accordingly. Analysis: On June 30, 2011, the Airborne Law Enforcement Services (ABLE), a Joint Powers Authority, was dissolved and the City of Costa Mesa was left without public safety helicopter support services. City of Huntington Beach Printed on 7/10/2024Page 1 of 2 powered by Legistar™85 File #:24-490 MEETING DATE:7/16/2024 Since then, the City of Costa Mesa has contracted with the City of Huntington Beach for Public Safety Helicopter Services. The current contract with the City of Costa Mesa for Public Safety Helicopter Services expired on June 30th, 2024. The City of Costa Mesa requests a new three-year agreement for Public Safety Helicopter Services. The new contract would allow Huntington Beach to respond and provide Public Safety Helicopter Services to the City of Costa Mesa at an hourly rate of $850. Environmental Status: This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Strategic Plan Goal: Goal 8 - Public Safety, Strategy A - Community-wide comprehensive risk reduction program to optimize public safety's emergency response and reduce the number of calls. Attachment(s): 1. Service Agreement for Public Safety Helicopter Support Between the City of Huntington Beach and the City of Costa Mesa. 2. Previous Service Agreement that expired June 30 th, 2024. 3. Certificate of Self Insurance - City of Costa Mesa City of Huntington Beach Printed on 7/10/2024Page 2 of 2 powered by Legistar™86 87 SERVICES AGREEMENT FOR PUBLIC SAFETY HELICOPTER SUPPORT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE CITY OF COSTA MESA This Services Agreement for Public Safety Helicopter Support ("Agreement") is made by and between the City of Huntington Beach, a California Municipal Corporation ("Huntington Beach") and the City of Costa Mesa, a California Municipal Corporation ("Costa Mesa") based on the following: A. Huntington Beach employs, maintains, trains and equips personnel capable of responding to requests for public safety helicopter services from ground based public safety personnel. B. Costa Mesa is responsible for providing public safety services within its jurisdiction, which include public safety helicopter services. C. Costa Mesa requires the services of Huntington Beach to provide public safety helicopter services to its land and residents. TERM This Agreement shall commence on July I, 2024 and end on June 30, 2027 unless terminated earlier as set f01ih herein. I PURPOSE 1.01 The purpose of this Agreement is to provide public safety helicopter services to Costa Mesa's land and residents and for Costa Mesa to pay an all-inclusive flat rate per hour for the cost of the services provided by Huntington Beach. 1.02 Nothing in this Agreement shall be interpreted to give Costa Mesa a right to services from Huntington Beach. Huntington Beach expressly retains all rights and powers to direct, manage, maintain, train, employ, equip, operate and control all equipment, facilities, propetiies and personnel in providing public safety helicopter services to Costa Mesa pursuant to this Agreement. Costa Mesa acknowledges and agrees that the efficient use of public safety helicopter services requires a timely and prioritized response of a helicopter. Costa Mesa agrees that Huntington Beach will have the sole discretion to determine the priority of calls for service and when an assignment of an air crew to a call will be terminated. 1.03 Notwithstanding anything in the Agreement to the contraiy, Costa Mesa expressly retains all rights and powers to direct, manage, maintain, train, employ, equip, operate and control all equipment, facilities, prope1iies and personnel in providing ground based public safety services to its land and residents. 14-4195/107786 I 88 II SERVICES 2.01 Huntington Beach will furnish Costa Mesa with public safety helicopter services that will include a helicopter aircrew comprised of a pilot and tactical flight officer that are both sworn peace officers and specially trained to conduct public safety helicopter services. Huntington Beach and the helicopter aircrews retain the sole and exclusive discretion as to the specific type, nature, timing and duration of the services performed pursuant to this Agreement. 2.02 Huntington Beach certifies that all helicopter aircrews providing public safety helicopter services to Costa Mesa under this Agreement currently possess, and shall maintain for the life of this Agreement, all permits, licenses, certifications, and training required from any federal, state or local governmental entity to provide public safety helicopter services. 2.03 In no event shall Huntington Beach or the helicopter aircrew be responsible for the direction and control of ground based public safety personnel and equipment of Costa Mesa during the course and scope of the public safety helicopter services performed pursuant to this Agreement. 2.04 In the event of a natural disaster or local or regional emergency, Huntington Beach shall take all reasonable steps to provide Costa Mesa with public safety helicopter service that is dedicated to the exclusive use of Costa Mesa. This shall include an obligation on the part of Huntington Beach to "hold over" any on-duty and/or "call in" any off-duty helicopter aircrew(s) or personnel necessaiy to provide Costa Mesa with public safety helicopter service that is dedicated to the exclusive use of Costa Mesa. Additionally, in the event of a natural disaster or local or regional emergency, Huntington Beach shall provide Costa Mesa with a first right of refusal to have public safety helicopter services prior to allowing or releasing said public safety helicopter services to other governmental agencies for use or deployment during said natural disaster or local or regional emergency. III COMPENSATION 3.01 Costa Mesa shall pay Huntington Beach for the public safety helicopter services provided on an hourly basis in accordance with the provisions of this Section. Huntington Beach's total compensation for all services performed in accordance with this Agreement shall not exceed Nine Hundred Thousand Dollars and no/I 00 ($900,000.00) without prior written authorization from Costa Mesa. Futthermore, Huntington Beach's total compensation in any single Fiscal Year ( defined as July I st through June 30th ) shall not exceed Three Hundred Thousand Dollars and no/100 ($300,000.00) in any single fiscal year (July I-June 30) without prior written authorization from Costa Mesa. 3.02 Huntington Beach shall provide public safety helicopter services to Costa Mesa at an all-inclusive flat rate as set fo1th in this Agreement. Costa Mesa shall incur no other direct or indirect costs or fees for the services provided by Huntington Beach under this Agreement. Huntington Beach shall bill Costa Mesa for all public safety helicopter services provided under this Agreement in tenth of an hour increments. Services Agreement For Public Safety Helicopter Support 2 89 3.03 Huntington Beach shall submit monthly invoices to Costa Mesa describing the public safety helicopter services provided in the preceding month. Huntington Beach will also provide Costa Mesa with a monthly statement detailing all calls for service. The monthly statement shall include the names of the helicopter aircrew who performed the services, a brief description of the services perfonned and/or the specific task perfonned, the date the services were perfo1med, the number of hours spent on all services billed on an hourly basis in tenth of an hour increments. 3.04 Costa Mesa's Chief of Police, or the Chiefs designee (the "Chief'), shall notify the Huntington Beach Air Support Unit Commander ("Unit Commander") within twenty (20) days of receipt of the monthly statement of any disputed calls for service or time spent on routine patrol over Costa Mesa's jurisdiction. The Unit Commander and the Chief will review the public safety helicopter service provided by Huntington Beach on an as needed basis to ensure that it coincides with the service level desired by Costa Mesa. The Unit Commander and the Chief will be responsible for cooperatively resolving any disputes over services provided under this Agreement and adjusting the service level to coincide with that desired by Costa Mesa. 3.05 Should Huntington Beach provide over One Thousand (1000) hours of public safety helicopter services to Costa Mesa in any single Fiscal Year under this Agreement, Huntington Beach acknowledges and agrees that it shall not receive any compensation for said services without the prior written authorization from Costa Mesa. 3.06 Huntington Beach shall provide public safety helicopter services to Costa Mesa at an all-inclusive flat rate of Eight Hundred Fifty Dollars ($850) per hour of service for the first year of service. Commencing on July 1, 2024, the hourly fee for Air Suppmt Services shall be adjusted on July 1 of each year based on the change in the Metropolitan Consumer Price Index. The change will be conducted using the "Consumer Price Index for All Urban Consumers (CPI- U), for the Los Angeles-Long Beach-Anaheim, California area; All items not seasonally adjusted, 1982-1984= 100 reference base." The adjustment will be based on the cunent contract rate using the Januaiy index of the current year and the Januaiy index of the preceding year. The Huntington Beach Police Chief shall adjust the fees set forth in the MOU by such percentage change and rounded to the next highest dollar amount. Should the Consumer Price Index be revised or discontinued, the Police Chief shall use the revised or a comparable index as approved by the Costa Mesa City Council. IV COSTA MESA DUTIES 4.01 Costa Mesa shall pay Huntington Beach an all-inclusive flat rate per hour for the cost of the services provided by Huntington pursuant to Paragraph 3.01 -3.06 of this Agreement, for services provided by Huntington Beach under this Agreement. The public safety helicopter services perfo1med by the Huntington Beach shall be deemed to commence as of the date and time the aircraft is dispatched to, or arrives over, the airspace of Costa Mesa, whichever occurs first. These services shall continue until the aircrew notifies Costa Mesa that the assignment is complete or that the assignment must be tern1inated due to a higher priority assignment. Huntington Beach helicopter aircrew shall be responsible to notify Costa Mesa's dispatch center that the assignment Services Agreement For Public Safety Helicopter Suppmt 3 90 is complete or that the assignment must be terminated due to a higher priority assignment. Services perfo1med by Huntington Beach aircraft for Costa Mesa shall be defined as: A. A direct request for public safety helicopter services by Costa Mesa where a Huntington Beach aircraft is dispatched to or arrives over the incident ( operationally identified as a "D-1" call) or; Costa Mesa may authorize its ground based public safety supervision to cancel a response by a Huntington Beach aircrew. 4.02 Costa Mesa agrees to comply with the FAR Part 91 and Operations Manual section 4085 in making calls for services, which establishes priority for calls to Huntington Beach. 4.03 Costa Mesa agrees to install within its communications/dispatch center any radio equipment necessary to communicate directly with Huntington Beach on the designated frequency (800 MHz Talk Group) agreed upon by Huntington Beach and Costa Mesa. All costs associated with said installation shall be paid by Costa Mesa. V INDEMNIFICATION AND WAIVER 5.01 Costa Mesa agrees that Huntington Beach should be fully protected from any loss, injmy, damage, claim, lawsuit, cost or expense arising out of, or in any way related, to the performance of services pursuant to this Agreement that is in excess of Huntington Beach's requirement to cany and maintain certain policies of insurance and name Costa Mesa as an additional insured as set forth below in section VI. Subject to Huntington Beach's requirement to carry and maintain certain policies of insurance and name Costa Mesa as an additional insured as set forth below in section VI, the provisions of this Agreement should be construed and interpreted to provide the fullest possible protection to Huntington Beach. Costa Mesa acknowledges that Huntington Beach would not provide services in the absence of the commitments of Costa Mesa as specified in this Agreement. Huntington Beach acknowledges that Costa Mesa would not enter into this Agreement in the absence of Huntington Beach's commitment and obligation to cany and maintain certain policies of insurance and name Costa Mesa as an additional insured as set forth below in section VI. 5.02 To the fullest extent permitted by law, Costa Mesa shall indemnify, defend and hold harmless Huntington Beach, its boards, officers, agents and employees (collectively, the "Indemnified Parties") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of eve1y kind and nature whatsoever (individually, a Claim; collectively, "Claims"), which may arise from or in any manner relate ( directly or indirectly) to any services provided under this Agreement including, but not limited to, activities that relate in any way to this Agreement (including the negligent and/or willful acts, errors and/or omissions of Costa Mesa, its council members, officers, agents, employees, and anyone employed directly or indirectly by any of them or for whose acts they may be liable or any Services Agreement For Public Safety Helicopter Support 4 91 or all of them) that is in excess of Huntington Beach's requirement to carry and maintain certain policies of insurance and name Costa Mesa as an additional insured as set forth below in section VI. Notwithstanding the foregoing, nothing herein shall be construed to require Costa Mesa to indemnify the Indemnified Parties from any Claim arising from the negligence or willful misconduct of the Indemnified Parties. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. 5.03 Huntington Beach shall defend, indemnify and hold harmless Costa Mesa and its officers, employees, contractors, agents and representatives, with respect to any claim, loss, liability, damage, lawsuit, cost or expense that arises out of, or is in any way related, to the negligence or willful misconduct by Huntington Beach, including its boards, officers, agents and employees, within the Costa Mesa's jurisdiction. The obligation of Huntington Beach pursuant to this section extends, without limitation, to any injmy, death, loss or damage which occurs within Costa Mesa's jurisdiction and which is sustained by any third party, any employee or contractor of Costa Mesa and to such contractor's employees. VI INSURANCE 6.01 Without limiting Huntington Beach's indemnification of Costa Mesa, and prior to commencement of Work, Huntington Beach shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a fonn satisfactory to Costa Mesa. 6.01.1 Proof of Insurance. Huntington Beach shall provide certificates of insurance to Costa Mesa as evidence of the insurance coverage required herein. Insurance certificates and endorsement must be approved by Costa Mesa's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with Costa Mesa at all times during the term of this contract. Costa Mesa reserves the right to require complete, certified copies of all required insurance policies, at any time. Huntington Beach shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Huntington Beach, his agents, representatives, employees or subconsultants. The cost of such insurance shall be included in Huntington Beach's bid. 6.01.2 Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A-( or higher) and Financial Size Categmy Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the Costa Mesa's Risk Manager. 6.01.3 Coverage Requirements. 6.01.3.1 Workers' Compensation Coverage, Huntington Beach shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Services Agreement For Public Safety Helicopter Support 5 92 Insurance (with limits of at least one million dollars ($1,000,000)) for Huntington Beach's employees in accordance with the laws of the State of California, Section 3 700 of the Labor Code. Any notice of cancellation or non-renewal of all Workers' Compensation policies must be received by Costa Mesa at least thirty (30) calendar days (ten (10) calendar days written notice of non- payment of premium) prior to such change. Huntington Beach shall submit to Costa Mesa, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of Costa Mesa, its officers, agents, employees and volunteers. 6.01.3.2 Aircraft Liability Coverage. Huntington Beach shall maintain commercial aircraft liability insurance in an amount not less than twenty-five million dollars ($25,000,000) per occmTence for bodily injmy, personal injury, and property damage, including without limitation, blanket contractual liability including war risk and premises liability insurance to include property damages incidental to the operations of the named insured 6.01.3.3 Automobile Liability Coverage. Huntington Beach shall maintain automobile insUl'ance covering bodily injury and property damage for all activities of the Huntington Beach arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit for each accident. 6.01.4 Other Insurance Provisions or Requirements. The policies are to contain, or be endorsed to contain, the following provisions: 6.01.4.1 Additional Insured. Endorsement naming the City of Costa Mesa as respects the Aircraft Liability coverage with primaiy non-contributory and severability of interest language. 6.01.4.2 Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against Costa Mesa, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Huntington Beach or others providing insurance evidence in compliance with these requirements to waive their right of recove1y prior to a loss. Huntington Beach hereby waives its own right of recove1y against Costa Mesa, and shall require similar written express waivers and insurance clauses from each of its subconsultants. This waiver of subrogation extends to hull loss and property damage. 6.01.4.3 Enforcement of Contract Provisions. Huntington Beach acknowledges and agrees that any actual or alleged failure on the part of the Costa Mesa to inform Huntington Beach of non-compliance with any requirement imposes no additional obligations on the Costa Mesa nor does it waive any rights hereunder. 6.01.4.4 Requirements not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. Services Agreement For Public Safety Helicopter Suppmt 6 93 6.01 .4.5 Notice of Cancellation. Huntington Beach agrees to oblige its insurance agent or broker and insurers to provide to Costa Mesa with thirty (30) days notice of cancellation ( except for nonpayment for which ten (I 0) days notice is required) or nomenewal of coverage for each required coverage. 6.01.5 Timely Notice of Claims. Huntington Beach shall give Costa Mesa prompt and timely notice of claims made or suits instituted that arise out of or result from Huntington Beach's performance under this Agreement. 6.01.6 Additional Insurance. Huntington Beach shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. VII MISCELLANEOUS PROVISIONS 7.01 Each of the Patiies to this Agreement shall immediately notify the other of any litigation or claim that is asse1ied by or against either party regarding this Agreement. In the event of any dispute or legal action arising under this Agreement, the prevailing patiy shall not be entitled to attorney's fees. 7.02 Each of the Patiies to this Agreement shall cooperate with one another in the defense of any lawsuit or claim filed against either party, arising out of, or in any way related, to this Agreement, as well as any effoti of Huntington Beach to collect money from persons or entities responsible for any request for public safety helicopter services. 7 .03 The public safety helicopter services provided by Huntington Beach under this Agreement shall not be assigned, transferred, contracted or subcontracted out without the prior written approval of Costa Mesa. 7.04 Each of the Patiies to this Agreement may terminate this Agreement without cause upon sixty ( 60) days prior written notice. 7.05 The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange. 7.06 If any tern1 or portion of this Agreement is held to be invalid, illegal, or othe1wise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 7 .07 This Agreement may be modified or amended only by a written document executed by both Huntington Beach and Costa Mesa. 7.08 The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. Services Agreement For Public Safety Helicopter Support 7 94 7.09 This Agreement represents the full and complete understanding of evety kind or nature whatsoever between the patties hereto, and all preliminary negotiations attd agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vaty the provisions herein. 7 .10 A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 7 .11 Except as specifically authorized under this Agreement, the services to be provided under this Agreement shall not be assigned, transferred, contracted or subcontracted out without the prior written approval of Huntington Beach and Costa Mesa. 7 .12 This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instmment. 7 .13 The Parties shall at their own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. 7.14 The Parties each represent that they are an equal opportunity employer and they shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. 7 .15 All notices, demands, requests or approvals to be given under the tenns of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first-class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Huntington Beach to Costa Mesa shall be addressed to Costa Mesa at: Attn: Ron Lawrence Costa Mesa Police Department 99 Fair Drive Costa Mesa, CA 92692 Phone: (714) 754-5344 All notices, demands, requests or approvals from Costa Mesa to Huntington Beach shall be addressed to Huntington Beach at: Attention: Eric Parra Huntington Beach Police Department 2000 Main Street P.O. Box 70 Huntington Beach, CA 92648 Phone: 714-536-5903 Fax: 714-536-5605 Services Agreement For Public Safety Helicopter Supp01t 8 95 IN WITNESS WHERE OF, the parities hereto have caused this Agreement to be executed on the dates written below. CITY OF COSTA MESA Date: ---------- City Manager, City of Costa Mesa ATTEST: Date: ---------- City Clerk, City of Costa Mesa APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY Date: ·---------- City Attorney, City of Costa Mesa CITY OF HUNTINGTON BEACH Date: ---------- Mayor, City of Huntington Beach ATTEST: Date: ·---------- City Clerk, City of Huntington Beach APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY Date: ---------- Ci< y Allomey, Ci<y oflfoo,;og,oo Be~h c;;,r( Services Agreement For Public Safety Helicopter Support 9 96 SERVICES AGREEMENT FOR PUBLIC SAFETY HELICOPTER SUPPORT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE CITY OF COSTA MESA This Services Agreement for Public Safety Helicopter Support ("Agreement") is made by and between the City of Huntington Beach, a California Municipal Corporation ("Huntington Beach"), and the City of Costa Mesa, a California Municipal Corporation ("Costa Mesa"), based on the following: A. Huntington Beach employs, maintains, trains and equips personnel capable of responding to requests for public safety helicopter services from ground-based public safety personnel. B. Costa Mesa is responsible for providing public safety services within its jurisdiction, which includes public safety helicopter services. C. Costa Mesa requires the services of Huntington Beach to provide public safety helicopter services to its land and residents. TERM This Agreement shall commence on July 1, 2021 and end on June 30, 2024 unless terminated earlier as set fo1th herein. I. PURPOSE 1.1 The purpose of this Agreement is to provide public safety helicopter services to Costa Mesa's land and residents and for Costa Mesa to pay an all-inclusive flat rate per hour for the cost of the services provided by Huntington Beach. 1.2 Nothing in this Agreement shall be interpreted as to give Costa Mesa a right to services from Huntington Beach. Huntington Beach expressly retains all rights and powers to direct, manage, maintain, train, employ, equip, operate and control all equipment, facilities, prope1ties and personnel in providing public safety helicopter services to Costa Mesa pursuant to this Agreement. Costa Mesa acknowledges and agrees that the efficient use of public safety helicopter services requires a timely and prioritized response of a helicopter. Costa Mesa agrees that Huntington Beach will have the sole discretion to determine the priority of calls for service and when an assignment of an air crew to a call will be terminated. 1.3 Notwithstanding anything in the Agreement to the contrary, Costa Mesa expressly retains all rights and powers to direct, manage, maintain, train, employ, equip, operate and control all equipment, facilities, prope1ties and personnel in providing ground-based public safety services to its land and residents. 2 l-9523/252922 1 97 II. SERVICES 2.1 Huntington Beach will furnish Costa Mesa with public safety helicopter services that will include a helicopter aircrew comprised of a pilot and tactical flight officer that are both sworn peace officers and specially trained to conduct public safety helicopter services. Huntington Beach and the helicopter aircrews retain the sole and exclusive discretion as to the specific type, nature, timing and dmation of the services performed pursuant to this Agreement. 2.2 Huntington Beach certifies that all helicopter aircrews providing public safety helicopter services to Costa Mesa under this Agreement currently possess, and shall maintain for the life of this Agreement, all permits, licenses, certifications, and training required from any federal, state or local governmental entity to provide public safety helicopter services. 2.3 In no event shall Huntington Beach or the helicopter aircrew be responsible for the direction and control of ground-based public safety personnel and equipment of Costa Mesa during the course and scope of the public safety helicopter services performed pursuant to this Agreement. 2.4 In the event of a natural disaster or local or regional emergency, Huntington Beach shall take all reasonable steps to provide Costa Mesa with public safety helicopter service that is dedicated to the exclusive use of Costa Mesa. This shall include an obligation on the part of Huntington Beach to "hold over" any on-duty and/or "call in" any off-duty helicopter aircrew(s) or personnel necessary to provide Costa Mesa with public safety helicopter service that is dedicated to the exclusive use of Costa Mesa. Additionally, in the event of a natural disaster or local or regional emergency, Huntington Beach shall provide Costa Mesa with a first right of refusal to have public safety helicopter services prior to allowing or releasing said public safety helicopter services to other governmental agencies for use or deployment during said natural disaster 01· local or regional emergency. III. COMPENSATION 3.1 Costa Mesa shall pay Huntington Beach for the public safety helicopter services provided on an hourly basis in accordance with the provisions of this Section. Huntington Beach's total compensation for all services performed in accordance with this Agreement shall not exceed Nine Hundred Thousand dollars and no/100 ($900,000.00) without prior written authorization from Costa Mesa. Furthermore, Huntington Beach's total compensation in any single Fiscal Year ( defined as July I st through June 301h) shall not exceed Three Hundred Thousand dollars and no/I 00 ($300,000.00) without a prior written amendment. 3 .2 Huntington Beach shall provide public safety helicopter services to Costa Mesa at an all inclusive flat rate as set fo1th in this Agreement. Costa Mesa shall incur no other direct or indirect costs or fees for the services provided by Huntington Beach under this 21-9523/252922 2 98 Agreement. Huntington Beach shall bill Costa Mesa for all public safety helicopter services provided under this Agreement in tenth of an hour increments. 3.3 Huntington Beach shall submit monthly invoices to Costa Mesa describing the public safety helicopter services provided in the preceding month. Huntington Beach will also provide Costa Mesa with a monthly statement detailing all calls for service and time spent on routine patrol over Costa Mesa's jurisdiction. The monthly statement shall include the names of the helicopter aircrew who performed the services, a brief description of the services performed and/or the specific task performed, the date the services were performed, and the number of hours spent on all services billed on an hourly basis in tenth of an hour increments. 3.4 Costa Mesa's Chief of Police, or the Chiefs designee (the "Chief'), shall notify the Huntington Beach Air Support Unit Commander ("Unit Commander") within twenty (20) days of receipt of the monthly statement of any disputed calls for service or time spent on routine patrol over Costa Mesa's jurisdiction. The Unit Commander and the Chief will review the public safety helicopter service provided by Huntington Beach on an as-needed basis to ensure that it coincides with the service level desired by Costa Mesa. The Unit Commander and the Chief will be responsible for cooperatively resolving any disputes over services provided under this Agreement and adjusting the service level to coincide with that desired by Costa Mesa. 3.5 Should Huntington Beach provide over one thousand (1000) hours of public safety helicopter services to Costa Mesa in any single fiscal year under this Agreement, Huntington Beach acknowledges and agrees that it shall not receive any compensation for said services without a prior written amendment. 3.6 Huntington Beach shall provide public safety helicopter services to Costa Mesa at an all- inclusive flat rate of Eight Hundred ($800) per hour of service for the first year of service. Commencing on January 1, 2022, the hourly fee for Air Support Services may be adjusted on July I st of each year based on the change in the Metropolitan Consumer Price Index. The change will be conducted using the "Consumer Price Index for All Urban Consumers (CPI-U), for the Los Angeles-Long Beach-Anaheim, California area; all items not seasonally adjusted, 1982-1984 = 100 reference base." The adjustment will be based on the current contract rate using the January index of the current year and the January index of the preceding year. The Huntington Beach Police Chief shall adjust the fees set forth in the Agreement by such percentage change and rounded to the next highest dollar amount. Should the Consumer Price Index be revised or discontinued, the Police Chief shall use the revised or a comparable index as approved by the Huntington Beach and Costa Mesa City Councils. In no event, however, shall the amount payable under this Agreement be reduced below the Hourly Rate in effect immediately preceding such adjustment. The maximum adjustment increase to the Hourly Rate, for any year where an adjustment is made pursuant to this Section, shall not exceed five percent (5%) of the Hourly Rate in effect immediately preceding such adjustment. 21-9523/252922 3 99 IV. COST A MESA DUTIES 4.1 Costa Mesa shall pay Huntington Beach an all-inclusive flat rate per hour for the cost of the services provided by Huntington Beach pursuant to Paragraph 3.1-3.6 of this Agreement for services provided by Huntington Beach under this Agreement. The public safety helicopter services performed by the Huntington Beach helicopter aircrew shall be deemed to commence as of the date and time the aircraft is dispatched to, or arrives over, the airspace of Costa Mesa, whichever occurs first. These services shall continue until the aircrew notifies Costa Mesa that the assignment is complete or that the assignment must be terminated due to a higher priority assignment. The Huntington Beach helicopter aircrew shall be responsible to notify Costa Mesa's dispatch center that the assignment is complete or that the assignment must be terminated due to a higher priority assignment. Services performed by Huntington Beach aircraft for Costa Mesa shall be defined as: A. A direct request for public safety helicopter services by Costa Mesa where a Huntington Beach aircraft is dispatched to or arrives over the incident ( operationally identified as a "D-1" call) or; B. Any public safety call generated by Costa Mesa and monitored by a Huntington Beach helicopter aircrew in which the aircraft an·ives over the incident ( operationally identified as a "D-2" call) or; C. Routine patrol over Costa Mesa's jurisdictional areas in which case Huntington Beach's aircrew shall notify Costa Mesa's dispatch center upon their arrival and depaiture from Costa Mesa's jurisdictional area. Costa Mesa may authorize its ground-based public safety supervision to cancel a response by a Huntington Beach aircrew. 4.2 Costa Mesa agrees to install within its communications/dispatch center any radio equipment necessary to communicate directly with Huntington Beach on the designated frequency (800 MHz Talk Group) agreed upon by Huntington Beach and Costa Mesa. All costs associated with said installation shall be paid by Costa Mesa. V. INDEMNIFICATION AND WAIVER 5.1 Costa Mesa agrees that Huntington Beach should be fully protected from any loss, injury, damage, claim, lawsuit, cost or expense arising out of, or in any way related to, the performance of services pursuant to this Agreement that is in excess of Huntington Beach's requirement to carry and maintain ce11ain policies of insurance and name Costa Mesa as an additional insured as set fotth below in Section VI. Subject to Huntington Beach's requirement to call'y and maintain certain policies of insurance and name Costa Mesa as an additional insured as set forth below in Section VI, the provisions of this Agreement should be construed and interpreted to provide the fullest possible protection to Huntington Beach. Costa Mesa acknowledges that Huntington Beach would not 2 l-9523/252922 4 100 provide services in the absence of the commitments of Costa Mesa as specified in this Agreement. Huntington Beach acknowledges that Costa Mesa would not enter into this Agreement in the absence of Huntington Beach's commitment and obligation to carry and maintain certain policies of insurance and name Costa Mesa as an additional insured as set fo1th below in Section VI. 5.2 To the fullest extent permitted by law, Costa Mesa shall defend, indemnify, and hold harmless Huntington Beach, its boards, officers, agents and employees (collectively, the "Indemnified Patties") from and against any and all claims (including, without limitation, claims for bodily injmy, death or damage to prope1ty), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and cou1t costs) of every kind and nature whatsoever (individually, a Claim; collectively, "claims"), which may arise from or in any manner relate ( directly or indirectly) to any services provided under this Agreement including, but not limited to, activities that relate in any way to this Agreement (including the negligent and/or willful acts, errors and/or omissions of Costa Mesa, its council members, officers, agents, employees, and anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them) that is in excess of Huntington Beach's requirement to can-y and maintain ce1tain policies of insurance and name Costa Mesa as an additional insured as set f01th below in Section VI. Notwithstanding the foregoing, nothing herein shall be construed to require Costa Mesa to indemnify the Indemnified Parties from any Claim arising from the negligence or willful misconduct of the Indemnified Patties. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. 5 .3 Huntington Beach shall defend, indemnify and hold harmless Costa Mesa and its officers, employees, contractors, agents and representatives, with respect to any claim, loss, liability, damage, lawsuit, cost or expense that arises out of, or is in any way related, to the negligence or willful misconduct by Huntington Beach, including its boards, officers, agents and employees, with in the Costa Mesa's jurisdiction. The obligation of Huntington Beach pursuant to this section extends, without limitation, to any injury, death, loss or damage which occurs within Costa Mesa's jurisdiction and which is sustained by any third party, any employee or contractor of Costa Mesa and to such contractor's employees. VI. INSURANCE 6.1 Without limiting Huntington Beach's indemnification of Costa Mesa, and prior to commencement of work, Huntington Beach shall obtain, provide and maintain, at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to Costa Mesa. 6.1.1 Proof of Insurance. Huntington Beach shall provide cettificates of insurance to Costa Mesa as evidence of the insurance coverage required herein. Insurance certificates and endorsements must be approved by Costa Mesa's Risk Manager 21-9523/252922 5 101 prior to commencement of performance. CuiTent certification of insurance shall be kept on file with Costa Mesa at all times during the term of this contract. Costa Mesa reserves the right to require complete, certified copies of all required insurance policies, at any time. Huntington Beach shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to prope1ty, which may arise from or in connection with the performance of the Work hereunder by Huntington Beach, his agents, representatives, employees or subconsultants. The cost of such insurance shall be included in Huntington Beach's bid. 6.1.2 Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of Califomia, with an assigned policyholders' Rating of A-( or higher) and Financial Size Category Class VII ( or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the Costa Mesa's Risk Manager. 6. I . 3 Coverage Requirements. 2 l-9523/252922 6.1.3.1 Workers' ·Compensation Coverage. Huntington Beach shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least One Million dollars ($1,000,000) for Huntington Beach's employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. Any notice of cancellation or non-renewal of all Workers' Compensation policies must be received by Costa Mesa at least thirty (30) calendar days (ten (10) calendar days written notice of non-payment of premium) prior to such change, Huntington Beach shall submit to Costa Mesa, along with the cettificate of insurance, a Waiver of Subrogation endorsement in favor of Costa Mesa, its officers, agents, employees and volunteers. 6,1.3.2 Aircraft Liability Coverage. Huntington Beach shall maintain commercial aircraft liability insurance in an amount not less than Twenty-five Million dollars ($25,000,000) per occmTence for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability including war risk and premises liability insurance to include property damages incidental to the operations of the named insured. 6.1.3.3 Automobile Liability Coverage. Huntington Beach shall maintain automobile insurance covering bodily injury and prope1ty damage for all 6 102 activities of Huntington Beach arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than One Million dollars ($1,000,000) combined single limit for each accident. Other Insurance Provisions or Requirements. The policies are to contain, or be endorsed to contain, the following provisions: 21-9523/252922 6.1.3.4 Additional Insured. Endorsement naming the City of Costa Mesa as respects the Aircraft Liability coverage with primary non-contributory and severability of interest language. 6.1.3.5 Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against Costa Mesa,· its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Huntington Beach or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Huntington Beach hereby waives its own right of recovery against Costa Mesa, and shall require similar written express waivers and insurance clauses from each of its subconsultants. This waiver of subrogation extends to hull loss and property damage. 6.1.3 .6 Enforcement of Contract Provisions. Huntington Beach acknowledges and agrees that any actual or alleged failure on the pait of Costa Mesa to inform Huntington Beach of non-compliance with any requirement imposes no additional obligations on Costa Mesa nor does it waive any rights hereunder. 6.1.3.7 Requirements not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage 1101mally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pe1tains to a given issue and is not intended by any paity or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. 6.1.3.8 Notice of Cancellation. Huntington Beach agrees to oblige its insurance agent or broker and insurers to provide to Costa Mesa with thilty (30) days notice of cancellation (except for nonpayment for which ten (10) days notice is required) or nonrenewal of coverage for each required coverage. 7 103 6.1.4 Timely Notice of Claims. Huntington Beach shall give Costa Mesa prompt and timely notice of claims made or suits instituted that arise out of or result from Huntington Beach's performance under this Agreement. 6.1.5 Additional Insurance. Huntington Beach shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. VII. MISCELLANEOUS PROVISIONS 7 .1 Each of the Parties to this Agreement shall immediately notify the other of any litigation or claim that is asse1ted by or against either party regarding this Agreement. In the event of any dispute or legal action arising under this Agreement, the prevailing patty shall not be entitled to attorney's fees. 7.2 Each of the Pa1ties to this Agreement shall cooperate with one another in the defense of any lawsuit or claim filed against either patty, arising out of, or in any way related, to this Agreement, as well as any eff01t of Huntington Beach to collect money from persons or entities responsible for any request for public safety helicopter services. 7.3 The public safety helicopter services provided by Huntington Beach under this Agreement shall not be assigned, transferred, contracted or subcontracted out without the prior written approval of Costa Mesa. 7.4 Each of the Patties to this Agreement may terminate this Agreement without cause upon sixty (60) days prior written notice. 7.5 The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a coutt of competent jurisdiction in the County of Orange. 7.6 If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 7.7 This Agreement may be modified or amended only by a written document executed by both Huntington Beach and Costa Mesa. 7,8 The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 7.9 This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of 21-9523/252922 8 104 whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein, 7. IO A waiver by either patty of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the saine or any other term, covenant or condition contained herein, whether of the same or a different character. 7.11 Except as specifically authorized under this Agreement, the services to be provided under this Agreement shall not be assigned, transferred, contracted or subcontracted out without the prior written approval of Huntington Beach and Costa Mesa. 7. 12 This Agreement may be executed in any number of counterpaits, each of which shall be an original, but all of which together shall constitute one instrument. 7.13 The Paities shall at their own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or herein after enacted. 7 .14 The Patties each represent that they are an equal opp01tunity employer and they shall not discriminate against any subcontractor, employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical handicap, medical condition marital status, sex, sexual orientation, age or any other impermissible basis under law. 7.15 All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid , first-class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Huntington Beach to Costa Mesa shall be addressed to Costa Mesa at: Attn: Chief Bryan Glass Costa Mesa Police Department 99 Fair Drive Costa Mesa, CA 92692 Phone: (714) 754-5344 All notices, demands, requests or approvals from Costa Mesa to Huntington Beach shall be addressed to Huntington Beach at: 21-9523/252922 9 105 Attn: Chief Julian Harvey Huntington Beach Police Department 2000 Main Street P.O. Box 70 Huntington Beach, CA 92648 Phone: 714-536-5903 Fax: 714-536-5605 IN WITNESS WHEREOF, the parties hereto have executed this agreement the day and year first above written. CITY OF COSTA MESA, A municipal corporation of the !J;:i:c:t:~~ City Manager JX£~/..li&.'4ll-"="'--1:..:,__( 1'""":i'-'-I ?~112,21 II\.' City , er ,J 21-9523/252922 10 CITY OF HUNTINGTON BEACH, A municipal corporation of the State of Ca · rnia ·Ce__ Ma APPRqV 1 E~ AS TO FORM: ~Ll~ 'It, City Attorney N P ' Chi ~~OVED City Manager 106 City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Certificate of Self Insurance Memorandum Number: FY 21/22, No. O 16 This evidence of coverage is used as a matter of information only and confers no rights upon the Certificate Holder. This evidence of coverage does not amend, extend or alter the coverage afforded by the memoranda listed below. Certificate Holder: City of Costa Mesa, 77 Fair Drive, Costa Mesa, CA 92626 Coverage Effective: 07/01/21 Coverage Expires: 06/30/22 This is to certify that the City of Huntington Beach is self-insured for general liability claims. Sufficient cash reserves to afford coverage for uninsured losses are maintained at $ 1,000,000. Type of Coverage: General Liability, Comprehensive Auto Liability, Employer's Liability, Workers' Compensation Coverage Limit of Liability/Coverage: $1,000,000 Combined Single Limit per Occurrence Certificate Requested By: Christopher Nesmith, Police Department Description of Operation, Vehicle or Property: This certificate is issued to and additonally insures the Certificate Holder, its agents, officers, representatives and employees as proof of the City of Huntington Beach's self-insurance status in conjuction with the Services Agreement for Public Safety Helicopter Support between the City of Huntington Beach and the City of Costa Mesa. It is provided to Christopher Nesmith of the City of Huntington Beach Police Department at 2000 Main Street, Huntington Beach, CA [92648). Should any of the above coverage for the Covered Party be changed or withdrawn prior to the expiration date issued above, the City of Huntington Beach will mail a 30-day written notice to the Certificate Holder but, failure to mail such notice shall impose no obligation or liability of any kind upon the City of Huntington Beach, its agents, officers or employees. If you have any questions, contact: DeAnna Soria, Risi< Manager [714) 536-55 _1/1 ' Authorized Representative: ------'~c...::::.-· o:::....:·'-----'--=--'-------,L-'~""--"----=--'--'?--------------- 178 107 City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Additional Insured Endorsement Memorandum Number: FY 21/22, No. O 16 This evidence of additional insured status is provided to the person or organization shown in the schedule below. The coverage is provided on a primary and non-contributory basis. SCHEDULE Named of Person or Organization: The City of Costa Mesa, its elected or appointed officers, agents, officials, employees and volunteers. Coverage Effective: 7 / 1/21 Coverage Expires: 6/30/22 Type of Coverage: General Liability Limit of Liability/Coverage: $ 1,000,000 Combined Single Limit per Occurrence Endorsement Requested By: Christopher Nesmith, Police Department Description of Operation, Vehicle or Property: This additional insured endorsement is issued in conjunction with the Services Agreement for Public Safety Helicopter Support between the City of Huntington Beach and the City of Costa Mesa. It is provided to Christopher Nesmith of the City of Huntington Beach Police Department at 2000 Main Street, Huntington Beach, CA (92648). Should any of the above coverage for the Covered Party be changed or withdrawn prior to the expiration date issued above, the City of Huntington Beach will mail a 30-day written notice to the Certificate Holder but, failure to mail such notice shall impose no obligation or liability of any kind upon the City of Huntington Beach, its agents, officers or employees. If you have any questions, contact: DeAnna Soria, Risi< Manager //) /l (714) 536~~9 - Authorized Representative: --"~-=----=---'----'----'~--r-'~'---'--'---',-.--'------------------1 179 108 City of Huntington Beach 2000 M a i n Street Huntingto n Beach , California 9 264 8 Certificate of Self Insurance Memorandum Number: FY 24/25, No. 008 This evidence of coverage is used as a matter of information only and confers no rights upon the Certificate Holder. This evidence of coverage does not amend, extend or alter the coverage afforded by the memoranda listed below. Certificate Holder: City of Costa Mesa, 77 Fair Drive, Costa Mesa, CA 92626 Coverage Effective: 07/01/24 Coverage Expires: 06/30/25 This is to certify that the City of Huntington Beach is self-insured for general liability claims. Sufficient cash reserves to afford coverage for uninsured losses are maintained at S 1,000,000. Type of Coverage: General Liability, Comprehensive Auto Liability, Employer's Liability, Workers' Compensation Coverage Limit of Liability/Coverage: S 1,000,000 Combined Single Limit per Occurrence Certificate Requested By: Christopher Nesmith, Police Department Description of Operation, Vehicle or Property: This certificate is issued to and additonally insures the Certificate Holder, its agents, officers, representatives and employees as proof of the City of Huntington Beach's self-insurance status in conjuction with the Services Agreement for Public Safety Helicopter Support between the City of Huntington Beach and the City of Costa Mesa . It is provided to Christopher Nesmith of the City of Huntington Beach Police Department at 2000 Main Street, Huntington Beach, CA (92648). Should any of the above coverage for the Covered Party be changed or withdrawn prior to the expiration date issued above, the City of Huntington Beach will mail a 30-day written notice to the Certificate Holder but, failure to mail such notice shall impose no obligation or liability of any kind upon the City of Huntington Beach, its agents, officers or employees. If you have any questions, contact: DeAnna Soria, Risk Manager ~!:9, Authorized Representative: ___,~<-----'----'--''-'-.S.........,h~fY-.N:.-'-'-.......---------------- 109 City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Additional Insured Endorsement Memorandum Number: FY 24/25, No. 008 This evidence of additional insured status is provided to the person or organization shown in the schedule below. The coverage is provided on a primary and non-contributory basis. SCHEDULE Named of Person or Organization: The City of Costa Mesa, its elected or appointed officers, agents, officials, employees and volunteers. Coverage Effective: 07/01/24 Coverage Expires: 06/30/25 Type of Coverage: General Liability Limit of Liability/Coverage: $1,000,000 Combined Single Limit per Occurrence Endorsement Requested By: Christopher Nesmith, Police Department Description of Operation, Vehicle or Property: This additional insured endorsement is issued in conjunction with the Services Agreement for Public Safety Helicopter Support between the City of Huntington Beach and th e City of Costa Mesa. It is provided to Christopher Nesmith of the City of Huntington Beach Police Department at 2000 Main Street, Huntington Beach, CA (92648). Should any of the above coverage for the Covered Party be changed or withdrawn prior to the expiration date issued above, the City of Huntington Beach will mail a 30-day written notice to the Certificate Holder but, failure to mail such notice shall impose no obligation or liability of any kind upon the City of Huntington Beach, its agents, officers or employees . If you have any questions, contact: DeAnna Soria, R'sk Manager (714) 53 -5519 Authorized Representative: ----------,<......:<....------------------ City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:24-493 MEETING DATE:7/16/2024 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Eric G. Parra, Interim City Manager VIA:Eric Parra, Chief of Police PREPARED BY:Lt. Thoby Archer and Exec. Asst. Ingrid Ono Subject: Approve and authorize execution of an agreement with the City of Irvine for Public Safety Helicopter Services Statement of Issue: Approval of a three-year contract agreement with City of Irvine for Public Safety Helicopter Services . Financial Impact: The proposed contract generates up to $100,000 per year in General Fund revenue for the City of Huntington Beach in exchange for Public Safety Helicopter Services for the City of Irvine. Irvine is requesting the contract be modified from calls for service and proactive patrol, to calls for service only. This would mean our helicopter would only respond for calls for service when requested by Irvine, potentially resulting in less income than previous years. The rate was increased from $800 an hour to $840 an hour last year, as allowed by the contract. This year the contract will bill at $850 an hour. Recommended Action: Approve and authorize the Mayor and City Clerk to execute the "Services Agreement for Public Safety Helicopter Support Between the City of Huntington Beach and the City of Irvine.” Alternative Action(s): Do not approve and direct staff accordingly. Analysis: The City of Irvine has contracted with the City of Huntington Beach and the City of Anaheim for Public Safety Helicopter Services since 2018. The current contract with the City of Irvine for Public Safety th City of Huntington Beach Printed on 7/10/2024Page 1 of 2 powered by Legistar™110 File #:24-493 MEETING DATE:7/16/2024 Helicopter Services expired on June 30th, 2024. The City of Irvine requests a new three-year agreement for Public Safety Helicopter Services. that would allow Huntington Beach to respond and provide Public Safety Helicopter Services to the City of Irvine at an hourly rate of $850. Environmental Status: This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Strategic Plan Goal: Goal 8 - Public Safety, Strategy A - Community-wide comprehensive risk reduction program to optimize public safety's emergency response and reduce the number of calls. Attachment(s): 1. Service Agreement for Public Safety Helicopter Support Between the City of Huntington Beach and the City of Irvine for FY 24-27 2. Previous Service Agreement FY 21-24. 3. Certificate of Insurance - City of Irvine - Self Insurance City of Huntington Beach Printed on 7/10/2024Page 2 of 2 powered by Legistar™111 112 SERVICES AGREEMENT FOR PUBLIC SAFETY HELICOPTER SUPPORT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE CITY OF IRVINE This Services Agreement for Public Safety Helicopter Support ("Agreement,,) is made by and between the City of Huntington Beach, a California Municipal Corporation ("Huntington Beach 11 ) and the City of Irvine, a California Municipal Corporation (11Irvine") based on the following: A. Huntington Beach employs, maintains, trains and equips personnel capable of responding to requests for public safety helicopter se1·vices from ground based public safety personnel. B. Irvine is responsible for providing public safety services within its jurisdiction, which include public safety helicopter services. C. Irvine requires the services of Huntington Beach to provide public safety helicopter services to its land and residents. TERM This Agreement shall commence on July 1, 2024 and end on June 30, 2027 unless terminated earlier as set f011h herein. I PURPOSE 1.01 The purpose of this Agreement is to provide public safety helicopter services to Irvine's land and residents and for Irvine to pay an all-inclusive flat rate per hour for the cost of the services provided by Huntington Beach. 1.02 Nothing in this Agreement shall be interpreted to give Irvine a right to services from Huntington Beach. Huntington Beach expressly retains all rights and powers to direct, manage, maintain, train, employ, equip, operate and control all equipment, facilities, properties and personnel in providing public safety helicopter services to Irvine pursuant to this Agreement. Irvine acknowledges and agrees that the efficient use of public safety helicopter services requires a timely and prioritized response of a helicopter. Irvine agrees that Huntington Beach will have the sole discretion to determine the priority of calls for service and when an assignment of an air crew to a call will be terminated. 1.03 Notwithstanding anything in the Agreement to the contrary, Irvine expressly retains all rights and powers to direct, manage, maintain, train, employ, equip, operate and control all equipment, facilities, prope11ies and personnel in providing ground based public safety services to its land and residents. 24-14562/340287 113 II SERVICES 2.01 Huntington Beach will furnish Irvine with public safety helicopter services that will include a helicopter aircrew comprised of a pilot and tactical flight officer that are both sworn peace officers and specially trained to conduct public safety helicopter services. Huntington Beach and the helicopter aircrews retain the sole and exclusive discretion as to the specific type, nature, timing and duration of the services performed pursuant to this Agreement. 2.02 Huntington Beach certifies that all helicopter aircrews providing public safety helicopter services to Irvine under this Agreement currently possess, and shall maintain for the life of this Agreement, all permits, licenses, certifications, and training required from any federal, state or local governmental entity to provide public safety helicopter services. 2.03 In no event shall Huntington Beach or the helicopter aircrew be responsible for the direction and control of ground based public safety personnel and equipment oflrvine during the course and scope of the public safety helicopter services performed pursuant to this Agreement. 2.04 In the event of a natural disaster or local or regional emergency, Huntington Beach shall take all reasonable steps to provide Irvine with public safety helicopter service that is dedicated to the exclusive use oflrvine. This shall include an obligation on the part of Huntington Beach to "hold over" any on-duty and/or "call in" any off-duty helicopter aircrew(s) or personnel necessary to provide Irvine with public safety helicopter service that is dedicated to the exclusive use of Irvine. Additionally, in the event of a natural disaster or local or regional emergency, Huntington Beach shall provide Irvine with a first right of refusal to have public safety helicopter services prior to allowing or releasing said public safety helicopter services to other governmental agencies for use or deployment during said natural disaster or local or regional emergency. III COMPENSATION 3.01 Irvine shall pay H1.mtington Beach for the public safety helicopter services provided on an hourly basis in accordance with the provisions of this Section. Huntington Beach's total compensation for all services performed in accordance with this Agreement shall not exceed Three Hundred Thousand Dollars and no/100 ($300,000.00) without prior written authorization from Irvine. Furthermore, Huntington Beach's total compensation in any single Fiscal Year ( defined as July 1st through June 30 th) shall not exceed One Hundred Thousand Dollars and no/100 ($100,000.00) without prior written authorization from Irvine. 3.02 Huntington Beach shall provide public safety helicopter services to Irvine at an all-inclusive flat rate as set forth in this Agreement. Irvine shall incur no other direct or indirect costs or fees for the services provided by Huntingto11 Beach under this Agreement. Huntington Beach shall bill Irvine for all public safety helicopter services provided under this Agreement in tenth of an hour increments. Services Agreement For Public Safety Helicopter Support 2 114 3 .03 Huntington Beach shall submit monthly invoices to Irvine describing the public safety helicopter services provided in the preceding month. Huntington Beach will also provide Irvine with a monthly statement detailing all calls for service and time spent on routine patrol over Irvine's jurisdiction. The monthly statement shall include the names of the helicopter aircrew who performed the services, a brief description of the services performed and/or the specific task performed, the date the services were performed, the number of hours spent on all services billed on an hourly basis in tenth of an hour increments. 3.04 Irvine's Chief of Police, or the Chiefs designee (the "Chief'), shall notify the Huntington Beach Air Support Unit Commander ("Unit Commander") within twenty (20) days of receipt of the monthly statement of any disputed calls for service or time spent on routine patrol over Irvine's jurisdiction, The Unit Commander and the Chief will review the public safety helicopter service provided by Huntington Beach on an as needed basis to ensure that it coincides with the service level desired by Irvine. The Unit Commander and the Chief will be responsible f01' cooperatively resolving any disputes over services provided under this Agreement and adjusting the service level to coincide with that desired by Irvine. 3.05 Should Huntington Beach provide over One Thousand (1000) hours of public safety helicopter services to Irvine in any single Fiscal Year under this Agreement, Huntington Beach acknowledges and agrees that it shall not receive any compensation for said services without the prior written authorization from Irvine. 3.06 Huntington Beach shall provide public safety helicopter services to frvine at an all-inclusive flat rate of Eight Hundred Fifty Dollars ($850) per hour of service for the first year of service. Commencing on July 1, 2024, the hourly fee for Air Support Services shall be adjusted on July 1 of each year based on the change in the Metropolitan Const1mer Price Index. The change will be conducted using the "Consumer Price Index for All Urban Consumers (CPI- U), for the Los Angeles-Riverside-Orange County, California area; All items not seasonally adjusted, 1982-1984=100 reference base." The adjustment will be based on the cul'l'ent contract rate using the January index of the current year and the Januaty index of the preceding year. The Huntington Beach Police Chief shall adjust the fees set forth in the MOU by such percentage change and rounded to the next highest dollar amount. Should the Consumer Price Index be revised or discontinued, the Police Chief shall use the revised or a comparable index as approved by the City Council. IV IRVINE DUTIES 4,01 Irvine shall pay Huntington Beach an all-inclusive flat rate per hour for the cost of the services provided by Huntington pursuant to Paragraph 3.01 -3.06 of this Agreement, for services provided by Huntington Beach under this Agreement. The public safety helicopter services performed by the Huntington Beach shall be deemed to commence as of the date and time the aircraft is dispatched to, or arrives over, the airspace of Irvine, whichever occurs first. These services shall continue until the aircrew notifies Irvine that the assignment is complete or that the assignment must be terminated due to a higher priority assignment. Huntington Beach helicopter aircrew shall be responsible to notify Irvine's dispatch center that the assignment is complete or Services Agreement For Public Safety Helicopter Support 3 115 that the assigmnent must be terminated due to a higher priority assigmnent. Services performed by Huntington Beach aircraft for Irvine shall be defined as: A. A direct request for public safety helicopter services by Irvine where a Huntington Beach aircraft is dispatched to or anives over the incident ( operationally identified as a "D-l II call) or; B. Any public safety call generated by Irvine and monitored by a Huntington Beach helicopter aircrew in which the aircraft arrives over the incident (operationally identified as a "D-2" call) after being requested. Irvine may authorize its ground based public safety supervision to cancel a response by a Huntington Beach aircrew. 4.02 Irvine agrees to comply with the FAR Pait 91 and Operations Manual section 4085 in making calls for services, which establishes priority for calls to Huntington Beach. 4.03 Irvine agrees to install within its communications/dispatch center any radio equipment necessary to communicate directly with Huntington Beach on the designated frequency (800 MHz Talk Group) agreed upon by Huntington Beach and Irvine. All costs associated with said installation shall be paid by Irvine. V INDEMNIFICATION AND WAIVER 5.01 Irvine agrees that Huntington Beach should be fully protected from any loss, injury, damage, claim, lawsuit, cost or expense arising out of, or in any way related, to the performance of services pursuant to this Agreement that is in excess of Huntington Beach's requirement to carry and maintain certain policies of insurance and name Irvine as an additional insured as set forth below in section VI. Subject to Huntington Beach's requirement to carry and maintain certain policies of insurance and name Irvine as an additional insured as set fo1th below in section VI, the provisions of this Agreement should be constrned and interpreted to provide the fullest possible protection to Huntington Beach. Irvine acknowledges that Huntington Beach would not provide services in the absence of the commitments of Irvine as specified in this Agreement. Huntington Beach acknowledges that Irvine would not enter into this Agreement in the absence of Huntington Beach's commitment and obligation to carry and maintain certain policies of insurance and name Irvine as an additional insured as set forth below in section VI. 5.02 To the fullest extent permitted by law, Irvine shall indemnify, defend and hold harmless Huntington Beach, its boards, officers, agents and employees (collectively, the "Indemnified Parties") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attomey's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims»), which may arise from or in any manner relate Services Agreement For Public Safety Helicopter Support 4 116 (directly or indirectly) to any services provided under this Agreement including, but not limited to, activities that relate in any way to this Agreement (including the negligent and/or willful acts, errors and/01· omissions of Irvine, its council members, officers, agents, employees, and anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them) that is in excess of Huntington Beach's requirement to cany and maintain certain policies of insurance and name Irvine as an additional insured as set forth below in section VI. Notwithstanding the foregoing, nothing herein shall be construed to require Irvine to indemnify the Indemnified Parties from any Claim arising from the negligence or willful misconduct of the Indemnified Parties. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. 5.03 Huntington Beach shall defend, indemnify and hold harmless Irvine and its officers, employees, contractors, agents and representatives, with respect to any claim, loss, liability, damage, lawsuit, cost or expense that arises out of, or is in any way related, to the negligence or willful misconduct by Huntington Beach, including its boards, officers, agents and employees, within the Irvine's jurisdiction. The obligation of Huntington Beach pursuant to this section extends, without limitation, to any injury, death, loss or damage which occurs within Irvine's jurisdiction and which is sustained by any third party, any employee or contractor oflrvine and to such contractor's employees. VI INSURANCE 6.01 Without limiting Huntington Beach's indemnification of Irvine, and prior to commencement of Work, Huntington Beach shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to Irvine. 6.01.1 Proof of Insurance. Huntington Beach shall provide ce1tificates of insurance to Irvine as evidence of the insurance coverage required herein. Insurance certificates and endorsement must be approved by Irvine's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with frvine at all times during the term of this contract. Irvine reserves the right to require complete, certified copies of all required insurance policies, at any time. Huntington Beach shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Huntington Beach, his agents, representatives, employees or subconsultants. The cost of such insurance shall be included in Huntington Beach's bid. 6.01.2 Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A-(or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the Irvine's Risk Manager. Services Ag1-eement For Public Safety Helicopter Suppo1t 5 117 6.01.3 Covel'age Requirements. 6.01.3.1 Workers' Compensation Coverage. Huntington Beach shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least one million dollars ($1,000,000)) for Huntington Beach's employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. Any notice of cancellation or nonwrenewal of all Workers' Compensation policies must be received by Irvine at least thirty (30) calendar days (ten (10) calendar days written notice of nonwpayment of premium) prior to such change. Huntington Beach shall submit to Irvine, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of Irvine, its officers, agents, employees and volunteers. 6.01.3.2 Aircraft Liability Coverage. Huntington Beach shall maintain commercial aircraft liability insurance in an amount not less than twentywfive million dollars ($25,000,000) per occurrence for bodily injury, personal injmy, and property damage, including without limitation, blanket contractual liability including war risk and premises liability insurance to include prope1ty damages incidental to the operations of the named insured 6.01 .3.3 Automobile Liability Coverage. Huntington Beach shall maintain automobile insurance covering bodily injmy and property damage for all activities of the Huntington Beach arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, nonwowned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit fol' each accident. 6.01.4 Other Insurance Provisions or Requirements. The policies are to contain, or be endorsed to contain, the following provisions: 6.01.4.1 Additional Insured. Endorsement naming the City of Irvine as respects the Aircraft Liability coverage with primary nonwcontributory and severability of interest language. 6.01.4.2 Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against Irvine, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Huntington Beach or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Huntington Beach hereby waives its own right of recovery against Irvine, and shall require similar written express waivers and insurance clauses from each of its subconsultants. This waiver of subrogation extends to hull loss and property damage. 6.01 .4.3 Enforcement of Contract Provisions. Huntington Beach acknowledges and agrees that any actual or alleged failure on the part of the Irvine to inform Huntington Beach of nonwcompliance with any requirement imposes no additional obligations on the Irvine nor does it waive any rights hereunder. 6.01 .4.4 Requirements not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or Services Agreement For Public Safety Helicopter Support 6 118 other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. 6.01 .4.5 Notice of Cancellation. Huntington Beach agrees to oblige its insurance agent or broker and insurers to provide to Irvine with thirty (30) days notice of cancellation (except for nonpayment for which ten (10) days notice is required) or nonrenewal of coverage for each required coverage. 6.01.5 Timely Notice of Claims. Huntington Beach shall give Irvine prompt and timely notice of claims made or suits instituted that arise out of or result from Huntington Beach's performance under this Agreement. 6.01.6 Additional Insurance. Huntington Beach shall also p1·ocure and maintain, at its own cost and expense, any additio11al kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. VII MISCELLANEOUS PROVISIONS 7.01 Each of the Parties to this Agreement shall immediately notify the other of any litigation or claim that is asserted by or against either party regarding this Agreement. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorney's fees. 7.02 Each of the Patties to this Agreement shall cooperate with one another in the defense of any lawsuit or claim filed against either party, arising out of, or in any way related, to this Agreement, as well as any effort of Huntington Beach to collect money from persons or entities responsible for any request for public safety helicopter services. 7.03 The public safety helicopter services provided by Huntington Beach under this Agreement shall not be assigned, transferred, contracted or subcontracted out without the prior written approval of Irvine. 7. 04 Each of the Parties to this Agreement may terminate this Agreement without cause upon sixty (60) days prior written notice. 7.05 The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange. 7.06 If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 7. 07 This Agreement may be modified or amended only by a written document executed Services Agreement For Public Safety Helicopter Support 7 119 by both Huntington Beach and Irvine. 7.08 The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 7.09 This Agreement represents the full and complete understanding of eve1-y kind or nature whatsoever between the parties hereto, and all prelimina1-y negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 7 .10 A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 7 .11 Except as specifically authorized under this Agreement, the services to be provided under this Agreement shall not be assigned, transferred, contracted or subcontracted out without the prior written approval of Huntington Beach and Irvine. 7.12 This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. 7 .13 The Parties shall at their own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. 7 .14 The Parties each represent that they are an equal opportunity employer and they shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. 7 .15 All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first-class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Huntington Beach to Irvine shall be addressed to Irvine at: Attn: Michael Kent Irvine Police Department 1 Civic Center Plaza Irvine, CA 92606 Phone: (949) 724-7000 Services Agreement For Public Safety Helicopter Support 8 120 All notices, demands, requests or approvals from Irvine to Huntington Beach shall be addressed to Huntington Beach at: Attention: Eric Parra Huntington Beach Police Department 2000 Main Street P.O. Box 70 Huntington Beach, CA 92648 Phone: 714-536-5903 Fax: 714-536-5605 IN WITNESS WHERE OF, the parities hereto have caused this Agreement to be executed on the dates written below, CITY OF IRVINE Date: Jul 2, 2024 Michael Kent Chief of Police, City of Irvine ATTEST: Date: Jul 2, 2024 Carl Petersen City Clerk, City of Irvine APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY Date: Jul 2, 2024 Jeffrey Melching City Attorney, City ofirvine CITY OF HUNTINGTON BEACH Date: --------- Mayor, City of Huntington Beach ATTEST: Date: --------- City Clerk, City of Huntington Beach APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY Date: ---------__ 1rff City Attorney, City of Huntington Beach '-><..{ ( Services Agreement For Public Safety Helicopter Support 9 121 Signature: ~~ Email: jmelching@rutan.com Signature: µt.../ ~ Email: cpetersen@cityofirv i ne .org Signature: . /v11chaet Ke11t Michael Kent (Jul 2, 202◄ 12 :46 PDT) Email: mkent@cityofirvine.org 122 HB PD Police Air Support Irvine Contract July 2024 to 2027 Final Audit Report Created : By : Status: Transaction ID : 2024-06-28 Wendy Hill (WHill@cityofirvine .org) Signed CBJCHBCAABAAdYief9ObJzE2dDvnCDERgX9OgrfBFA Y2 2024-07-02 "HB PD Police Air Support Irvine Contract July 2024 to 2027" Hi story ~ Document created by Wendy Hill (WHill@cityofirvine.org) 2024 -06-28-4 :25 :12 PM GMT q Document emailed to Jeffrey Melching Omelching@rutan .com) for signature 2024-06-28 - 4 :28 :52 PM GMT ~ Email viewed by Jeffrey Melching Omelching@rutan.com) 2024-07-02-5:18 :21 PM GMT &G Document e-signed by Jeffrey Melching Umelching@rutan.com) Signature Date: 2024 -07-02 -5:18:57 PM GMT -Time Source: server I; Document emailed to mkent@cityofirvine.org for signature 2024-07-02-5:18:59 PM GMT ~ Email viewed by mkent@cityofirvine.org 2024-07-02-7 :46 :26 PM GMT &8 Signer mkent@cityofirvine.org entered name at signing as Michael Kent 2024-07-02 - 7 :46 :51 PM GMT 0"8 Document e-signed by Michael Kent (mkent@cityofirvine.org) Signature Date : 2024-07-02 - 7:46:53 PM GMT -Time Source: server ~ Document emailed to Carl Petersen (cpetersen@cityofirvine.org) for signature 2024-07-02 -7 :46 :55 PM GMT ~ Email viewed by Carl Petersen (cpetersen@cityofirvine.org) 2024-07-02 -8 :22 :34 PM GMT II Adobe Acrobat Sign 123 0'o Document e-signed by Carl Petersen (cpetersen@cityofirvine .org) Signature Date: 2024-07-02 - 8 :23 :00 PM GMT -Time Source: server 9 Agreement completed. 2024-07-02 -8:23 :00 PM GMT fJ Adobe Acrobat Sign 124 DocuSign Envelope ID: 7E6DBE9E-486A-467F-8586-DE407FEF1825 SERVICES AGREEMENT FOR PUBLIC SAFETY HELICOPTER SUPPORT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE CITY OF IRVINE This Services Agreement for Public Safety Helicopter Support ("Agreement") is made by and between the City of Huntington Beach, a Cali fornia Municipal Corporation (the City of Huntington Beach) and the City of Irvine, a California Municipal Corporation (the City of Irvine) based on the following: A. The City of Huntington Beach emp loys, maintains, trains and equips personnel capable of responding to requests for public safety helicopter services from ground based public safety personnel. B. The City of Irvine is responsible for providing public safety services within its jurisdiction, which include public safety helicopter services. C. The City of Irvine request the services of the City of Huntington Beach to provide public safety helicopter services within its borders and would like to enter into a three year contract starting July 1, 2021 and ending on June 30, 2024. TERM This Agreement shall commence July 1, 2021 and end on June 30, 2024 unless terminated earlier as set forth herein. I. PURPOSE 1.01 The purpose of this Agreement is for the City of Huntington Beach to provide certain public safety helicopter services to the City of Irvine in exchange for the City of Irvine payment of an all-inclusive flat rate per hour for the cost of the services provided by the City of Huntington Beach. 1.02 Nothing in this Agreement shall be interpreted to require the City of Huntington Beach to provide helicopter services based upon a schedule or need for service from the City of Irvine. The City of Huntington Beach expressly retains all authority, right and power to direct, schedule, deploy, manage, maintain, train, employ, equip, operate and control all equipment, facilities, properties and personnel in providing public safety helicopter services pursuant to this Agreement. The C ity of Irvine acknowledges and agrees that the efficient use of public safety helicopter services requires a timely and prioritized response of the City of Huntington Beach's helicopter. The City of Irvine agrees that the City of Huntington Beach will have the sole discretion to determine the use of its helicopter including the priority of calls for service and when an assignment of a helicopter air crew to a call will be acted upon by the City of Huntington Beach and the service terminated. 1.03 Notwithstanding the terms of helicopter services provided in this Agreement, the 21-9824/260274 125 DocuSign Envelope ID: 7E6DBE9E-486A-467F-8586-DE407FEF1825 City of Irvine expressly retains all rights and powers to direct, manage, maintain, train, employ, equip, operate and control all equipment, facilities, prope1ties and personnel in providing ground based public safety services. II. SERVICES 2.01 The City of Huntington Beach will provide the City of Irvine with public safety helicopter services that will include the City of Huntington Beach helicopter and aircrew comprised of a pilot and tactical flight officer that are both sworn peace officers and specially trained to provide public safety helicopter services. The City of Huntington Beach Police Department retains the sole and exclusive discretion as to the specific type, nature, timing and duration of the services performed pursuant to this Agreement, including the City of Huntington Beach terminating a helicopter deployment at its sole discretion because of a higher priority assignment. 2.02 The City of Huntington Beach certifies that all helicopter aircrews providing public safety helicopter services to the City of Irvine under this Agreement currently possess, and will maintain all permits, licenses, ce1tifications, and training required from any federal, state or local governmental entity to provide public safety helicopter services. 2 .03 In no event shall the City of Huntington Beach or the helicopter aircrew be responsible for the direction and control of ground based public safety personnel and equipment of the City of Irvine during the course and scope of the public safety helicopter services performed pursuant to this Agreement. III. COMPENSATION 3.0 I The City of Irvine shall pay the City of Huntington Beach for the public safety helicopter services provided on an hourly basis in accordance with the provisions of this Section. 3 .02 The City of Huntington Beach shall provide public safety helicopter services to the City oflrvine at an all-inclusive flat rate with no other direct or indirect cost as set forth in this Agreement. The City of Huntington Beach shall bill the City of Irvine for all public safety helicopter services provided under this Agreement in tenth of an hour increments. 3.03 The City of Huntington Beach shall submit monthly invoices to the City of Irvine describing the public safety helicopter services provided in the preceding month. The City of Huntington Beach will also provide the City of Irvine with a monthly statement detailing all calls for service over the City of Irvine. The monthly statement shall include the names of the helicopter aircrew who performed the services, a brief description of the services performed and/or the specific task performed, the date the services were performed, the number of hours spent on all services billed on an hourly basis in tenth of an hour increments. 3 .04 The City oflrvine's Chief of Police, or designee, shall notify the City of Huntington Beach Air Support Unit Commander ("Unit Commander") within twenty (20) days of receipt of the monthly statement of any disputed calls for service. The Unit Commander and 2 21-9824/260274 126 DocuSign Envelope ID: 7E6DBE9E-486A-467F-8586-DE407FEF1825 the City of Irvine Police Chief will review the public safety helicopter service provided by the City of Huntington Beach on an as needed basis to ensure that it coincides with the service level desired by the City of Irvine. The Unit Commander and the City of Irvine Chief of Police will be responsible for cooperatively resolving any disputes over services provided under this Agreement and adjusting any service levels to coincide with the levels and costs of the City of Irvine. 3.05 The City of Huntington Beach shall provide public safety helicopter services to the City of Irvine at an all-inclusive flat rate of Eight Hundred Dollars ($800) per hour of service (Hourly Rate) for the first two years and then increase to Eight Hundred Thirty Five Dollars ($835) for service for the third year as defined in Section 4 below. On July 1 of each year this Agreement is in effect, the rate for service shall increase based on the change in the "Consumer Price Index for All Urban Consumers (CPI-U), for the Los Angeles-Riverside-Orange County, California area; all items not seasonally adjusted, 1982-1984= 100 reference base." The adjustment will be based on the current contract rate using the January index of the current year and the January index of the preceding year. The City of Huntington Beach Police Chief shall adjust the fees set forth in the Agreement by such percentage change and rounded to the next highest dollar amount. Should the Consumer Price Index be revised or discontinued, the Police Chief shall use the revised or a comparable index as approved by the City of Huntington Beach City Council. In no event, however, shall the amount payable under this Agreement be reduced below the Hourly Rate in effect immediately preceding such adjustment. The maximum adjustment increase to the Hourly Rate, for any year where an adjustment is made pursuant to this Section, shall not exceed five percent (5%) of the Hourly Rate in effect immediately preceding such adjustment. IV. RESPECTIVE DUTIES 4 .01 The City oflrvine shall pay the City of Huntington Beach an all-inclusive flat rate per hour for the cost of the services pursuant to Paragraph 3.01 -3.05 of this Agreement. The public safety helicopter services shall be deemed to commence as of the date and time the aircraft is dispatched to, or arrives over, the airspace of the City of Irvine, whichever occurs first. These services shall continue until the aircrew notifies the City of Irvine that the assignment is complete or that the assignment must be terminated due to a higher priority deployment. The City of Huntington Beach helicopter aircrew shall be responsible to notify the City of Irvine's dispatch center that the assignment is complete or that the assignment must be terminated due to a higher priority deployment. The City of Irvine may authorize its ground based public safety supervision to cancel a response by the City of Huntington Beach aircrew. 4.02 Services performed by the City of Huntington Beach aircraft for the City of Irvine shall be defined as: A. A direct request for public safety helicopter services by the City of Irvine where the City of Huntington Beach aircraft is dispatched to or arrives over the incident or; B. Any public safety call generated by the City of Irvine and monitored by the 3 2 )-9824/260274 127 DocuSign Envelope ID: 7E6DBE9E-486A-467F-8586-DE407FEF1825 City of Huntington Beach helicopter aircrew in which the aircraft arrives over the incident after being requested. 4 .02 The City of Irvine agrees to install within its communications/dispatch center any radio equipment necessary to communicate directly with the City of Huntington Beach on the designated frequency (800 MHz Talk Group) agreed upon by the City of Huntington Beach and the City of Irvine. All costs associated with said installation shall be paid by the City of Irvine. V. INDEMNIFICATION AND WAIVER 5.01 The City of Irvine agrees that the City of Huntington Beach shall be fully protected and indemnified from any loss, injury, damage, claim, lawsuit, cost or expense arising out of, or in any way related to, the performance of services pursuant to this Agreement. Subject to the City of Huntington Beach's requirement to carry and maintain certain policies of insurance and name the City of Irvine as an additional insured as set forth below, the provisions of this Agreement should be construed and interpreted to provide the fullest possible indemnification to the City of Huntington Beach. The City of Irvine acknowledges that the City of Huntington Beach would not provide services in the absence of the commitments of the City of Irvine as specified in this Agreement. The City of Huntington Beach acknowledges that the City of Irvine would not enter into thi s Agreement in the absence of the City of Huntington Beach's commitment and obligation to carry and maintain certain policies of insurance and name the City of Irvine as an additional insured . 5.02 To the fullest extent permitted by law, the City of Irvine shall indemnify, defend and hold harmless the City of Huntington Beach, its boards, officers, agents and employees (collectively, the "Indemnified Parties") from and against any and all claims (i ncluding, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims"), which may arise from or in any manner relate (directly or indirectly) to any services provided under this Agreement including, but not limited to, activities that relate in any way to this Agreement. This indemnity shall apply to all claims .and liability regardless of whether any insurance policies are applicable. 5.03 The City of Huntington Beach shall defend, indemnify and hold harmless the City of Irvine and its officers, boards, employees, contractors, agents and representatives, with respect to any claim, loss, liability, damage, lawsuit, cost or expense that arises out of, or is in any way related to, the negligence or willful misconduct of the City of Huntington Beach in providing police air s upport services to Irvine pursuant to this Agreement. The obligation of the City of Huntington Beach pursuant to this section extends, without limitation, to any injury, death, loss or damage which occurs within the City of Irvine's jurisdiction and which is susta ined by any third party, any employee or contractor of Irvine, or any such contractor's employees . 4 21-9824/260274 128 DocuSign Envelope ID: 7E6DBE9E-486A-467F-8586-DE407FEF1825 VI. INSURANCE 6.01 Without limiting the City of Irvine indemnification of the City of Huntington Beach, the City of Huntington Beach shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to the City of Irvine. 6.01.1 Proof of Insurance. The City of Huntington Beach shall provide certificates of insurance to the City of Irvine as evidence of the insurance coverage required herein. Insurance certificates and endorsement must be approved by the City of Irvine's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with the City oflrvine at all times during the term of this contract. The City oflrvine reserves the right to require complete, certified copies of all required insurance policies, at any time. The City of Huntington Beach shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the services hereunder by the City of Huntington Beach, his agents, representatives, employees or subconsultants. 6.01.3 Coverage Requirements. 6.01.3.1 Aircraft Liability Coverage. The City of Huntington Beach shall maintain commercial aircraft liability insurance in an amount not less than twenty-five million dollars ($25,000,000) per occurrence for bodily injury, personal injury , and property damage, including without limitation, blanket contractual liability including war r isk and premises liability insurance to include property damages incidental to the operations of the named insured. 6.01.4 Other Insurance Prov isions or Requirements. The policies are to contain, or be endorsed to contain, the following provisions: 6.01.4.1 Additional Insured. Endorsement naming the City of Irvine as respects the Aircraft Liability coverage with primary non-contributory and severability of interest language . 6.01.4.2 Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against the City of Irvine, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow the City of Huntington Beach or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. 6.01.4.3 Requirements not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. 5 21-9824/260274 129 DocuSign Envelope ID: 7E6DBE9E-486A-467F-8586-DE407FEF1825 6.01.4.5 Notice of Cancellation. The City of Huntington Beach agrees to oblige its insurance agent or broker and insurers to provide to the City of Irvine with thirty (30) days notice of cancellation ( except for nonpayment for which ten ( 10) days notice is required) or nonrenewal of coverage for each required coverage. 6.01.5 Timely Notice of Claims. The City of Huntington Beach shall give the City of Irvine prompt and timely notice of claims made or suits instituted that arise out of or result from the City of Huntington Beach's performance under this Agreement. 6.01.6 Additional Insurance. The City of Huntington Beach shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection. VII. MISCELLANEOUS PROVISIONS 7.01 Each of the Parties to this Agreement shall immediately notify the other of any litigation or claim that is asserted by or against either party regarding this Agreement. In the event of any dispute or legal action arising und er this Agreement, the prevailing party shall not be entitled to attorney's fees. 7.02 Each of the Parties to this Agreement shall cooperate with one another in the defense of any lawsuit or claim filed against either party, arising out of, or in any way related, to this Agreement, as well as any effort of the City of Huntington Beach to collect money from persons or entities responsible for any request for public safety helicopter services. 7.03 The public safety helicopter services provided by the City of Huntington Beach under thi s Agreement shall not be assigned, transfen·ed, contracted or subcontracted out without the prior written approval of the City of Irvine. 7.04 Each of the Parties to this Agreement may terminate this Agreement for any reason upon sixty (60) days prior written notice. 7.05 The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange. 7.06 If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 7.07 This Agreement may be modified or amended only by a written document executed by both the City of Huntington Beach and the City oflrvine. 7.08 The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or agai nst either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 6 2 1-9824/260274 130 DocuSign Envelope ID: 7E6DBE9E-486A-467F-8586-DE407FEF1825 7.09 This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 7 .10 A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 7.11 Except as specifically authorized under this Agreement, the services to be provided under this Agreement shall not be assigned, transferred, contracted or subcontracted out without the prior written approval of the City of Huntington Beach and the City oflrvine. 7.12 This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. 7.13 The Parties shall at their own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. 7.14 The Parties each represent that they are an equal opportunity employer and they shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. 7 .15 All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, po stage prepaid, first-class mail, addressed as hereinafter provided . All notices, demands, requests or approvals from the City of Huntington Beach to the City of Irvine shall be addressed to the City oflrvine at: Attn: Chief Mike Hamel The City oflrvine Police Department 1 Civic Center Plaza The City of Irvine, CA 92606-5207 Phone:949-724-7000 All notices, demands, requests or approvals from the City of Irvine to the City of Huntington Beach shall be addressed to the City of Huntington Beach at: Attention: Chief Julian Harvey The City of Huntington Beach Police Department 2000 Main Street P.O. Box 70 The City of Huntington Beach, CA 92648 Phone: 714-536-5903 7 21-9824 /260274 131 DocuSign Envelope ID: 7E6DBE9E-486A-467F-8586-DE407FEF1825 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the dates written below. CITY OF THE CITY OF IRVINE 8/4/2021 Date: ---------OocuSlgned by: l\,tjk i±AAIJ, :efoofa~~Hce, the City of Irvine ATTEST: 8/4/2021 Date: r ~=s1g=ne,,..,db-y/4-~-~-./------ la ty:'ereYic647D ... APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY August 3, 2021 of Irvine 21-9824/260274 8 THE CITY OF HUNTINGTON BEACH, A municipal corporation of the State of California Mayor City Clerk' INITIATED AND APPROVED: APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY Date: -\ --,--11-~· .-l -::--::--_;;;;:,- ~ity Attoriley, ihe City of Huntington Beach ~ 132 C ity of Huntington Beach 2000 Main Street Huntington Beach, C aliforni a 9264 8 Certificate of Self Insurance Memorandum Number: FY 21/22, No. 021 This evidence of coverage is used as a matter of information only and confers no rights upon the Certificate Holder. This evidence of coverage does not amend, extend or alter the coverage afforded by the memoranda listed below. Certificate Holder: City of Irvine Coverage Effective: 07/01/21 Coverage Expires: 06/30/22 This is to certify that the City of Huntington Beach is self-insured for general liability claims . Sufficient cash reserves to afford coverage for uninsured losses are maintained at $ 1,000,000. Type of Coverage: General Liability, Comprehensive Auto Liability, Employer's Liability, Workers' Compensation Coverage Limit of Liability/Coverage: $ 1,000,000 Combined Single Limit per Occurrence Certificate Requested By: Ingrid Ono, Police Department Description of Operation, Vehicle or Property: This certificate is issued to and additonally insures the Certificate Holder, its agents, officers, representatives and employees as proof of the City of Huntington Beach's self-insurance status in conjuction with the Services Agreement for Public Safety Helicopter Support between the City of Huntington Beach and the City of Irvine. It is provided to Ingrid Ono of the City of Huntington Beach Police Department at 2000 Main Street, Huntington Beach, CA /92648). Should any of the above coverage for the Covered Party be changed or withdrawn prior to the expiration date issued above, the City of Huntington Beach will mail a 30-day written notice to the Certificate Holder but, failure to mail such notice shall impose no obligation or liability of any kind upon the City of Huntington Beach, its agent s, officers or employees. If you have any questions, contact: DeAnna Soria, Risi< Manager A. ,,17 141 s36·S!f' ~ Authorized Rep r esentative: --=-~------'-_c__.....,dl&c.=..,:,:____::__,___,-=-'-____________ _ I APPROVED AS TO FORM 133 City of Huntington Beac h 2000 Main Street Huntington Beach, Calif ornia 92648 Additional Insured Endorsement Memorandum Number: FY 21/22, No. 021 This evidence of additional insure d status is provided to the person or organization shown in th e schedule below. The covera ge is provided on a primary and non-contributory basis. SCHEDULE Named of Person or Organization: The City of Irvine, its elected or appointed officers, agents officials, employees and volunteers. Coverage Effective: 7 / 1/21 Coverage Expires : 6/30/22 Type of Coverage: General Liability Limit of Liability/Coverage: $ 1,000,000 Combined Single Limit per Occurrence Endorsement Requested By: Ingrid Ono, Police Department Description of Operation, Vehicle or Property: This additional insured endorsement is issued in conjunction with the Services Agreement for Public Safety Helicopter Support between the City of Huntington Beach and the City of Irvine. It is provided to Ingrid Ono of the City of Huntington Beach Police Department at 2000 Main Street, Huntington Beach, CA (92648). Sh ould any of the above coverage for the Covered Party b e changed or withdrawn prior to the expiration date issued above, the City of Huntington Beach will mail a 30-day written notice t o the Certificate Holder but, fa ilure to m ail su ch notice shall impose no obligation or liability of any kind upon the City of Huntington Bea ch, it s ag ents, officers o r employees. If you have any questions, contact: D eAnna Soria, Risi< Manager (714) 5~19 Authorize d Representative: --~~---------b-~~--------------- 134 City of Huntington B e ach 2000 Main Street Huntington Beach, California 92648 Certificate of Self Insurance Memorandum Number: FY 24/25, No. 009 This evidence of coverage is used as a matter of information only and confers no rights upon the Certificate Holder. This evidence of coverage does not amend, extend or alter the coverage afforded by the memoranda listed below. Certificate Holder: City of Irvine Coverage Effective: 07/01 /24 Coverage Expires: 06/30/25 This is to certify that the City of Huntington Beach is self-insured for general liability claims . Sufficient cash reserves to afford coverage for uninsured losses are maintained at S 1,000,000. Type of Coverage: General Liability, Comprehensive Auto Liability, Employer's Liability, Workers' Compensation Coverage Limit of Liability/Coverage: $1,000,000 Combined Single Limit per Occurrence Certificate Requested By: Ingrid Ono, Police Department Description of Operation, Vehicle or Property: This certificate is issued to and additonally insures the Certificate Holder, its agents, officers, re presentatives and employees as proof of the City of Huntington Beach's self-insurance status in conjuction with the Services Agreement for Public Safety Helicopter Support between the City of Huntington Beach and the City of Irvine. It is provided to Ingrid Ono of the City of Huntington Beach Police Department at 2000 Main Street, Huntington Beach, CA (92648). Should any of the above coverage for the Covered Party be changed or withdrawn prior to the expiration date issued above, the City of Huntington Beach will mail a 30-day written notice to the Certificate Holder but, failure to mail such notice shall impose no obligation or liability of any kind upon the City of Huntington Beach, its agents, officers or employees. If you have any questions, contact: DeAnna Soria, Risk Manager .~~-Authorized Representative: ----'-~-----___,-...L..-_______________ _ 135 City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Additional Insured Endorsement Memorandum Number: FY 24/25, No. 009 This evidence of additional insured status is provided to the person or organization shown in the schedule below. Th e coverag e is provided on a primary and non-contributory basis . SCHEDULE Named of Person or Organization: The City of Irvine, its elected or appointed officers, agents, officials, employees and volunteers. Coverage Effective: 07 /0 I /2 4 Coverage Expires: 06/3 0/25 Type of Coverage: General Liability Limit of Liability/Coverage: S 1,000,000 Combined Single Limit per Occurrence Endorsement Requested By: Ingrid Ono, Police Department Description of Operation, Vehicle or Property: This additional insured endorsement is issued in conjunction with the Services Agreement for Public Safety Helicopter Support betwee n the City of Huntington Beach and the City of Irvine. It is provided to Ingrid Ono of the City of Huntington Beach Police Department at 2000 Main Street, Huntington Beach, CA (92648). Should any of the above coverage for the Cover ed Party be changed or withdrawn prior to the expiration date issued above, the City of Huntington Beach will mail a 30-day written notice to the Certificat e Holder but, failure to ma il such notice shall impose no obligation or li ability of any kind upon th e City of Huntington Beach, its agents, office rs or employees. If you ha ve any questions, contact: DeAnna Soria, Ri sk Manager ~?:{519 Authorize d Re prese ntative: --~-~~---~---------------- City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:24-491 MEETING DATE:7/16/2024 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Eric G. Parra, Interim City Manager VIA:Eric Parra, Chief of Police PREPARED BY:Lt. Thoby Archer and Exec. Asst. Ingrid Ono Subject: Approve and authorize execution of an agreement with the City of Newport Beach for Public Safety Helicopter Services Statement of Issue: Approval of a three-year contract agreement with City of Newport Beach for Public Safety Helicopter Services. Financial Impact: The proposed contract generates up to $800,000 per year in General Fund revenue for the City of Huntington Beach in exchange for Public Safety Helicopter Services for the City of Newport Beach. Last calendar year, Newport Beach paid $284,276.00 for helicopter services. Compensation was for actual hours flown. 344.9 total hours were billed. The rate was increased from $800 an hour to $840 an hour mid-contract, as allowed by the contract. This year the contract will bill at $850 an hour. Recommended Action: Approve and authorize the Mayor and City Clerk to execute the "Services Agreement for Public Safety Helicopter Support Between the City of Huntington Beach and the City of Newport Beach.” Alternative Action(s): Do not approve and direct staff accordingly. Analysis: On June 30, 2011, the Airborne Law Enforcement Services (ABLE), a Joint Powers Authority, was dissolved and the City of Newport Beach was left without public safety helicopter support services. Since then, the City of Newport Beach has contracted with the City of Huntington Beach for Public Safety Helicopter Services. The current contract with the City of Newport Beach for Public Safety Helicopter Services expired on June 30th, 2024. The City of Newport Beach requests a new three-year agreement for Public Safety Helicopter Services. The new contract would allow for the provision of Public Safety Helicopter Services to the City of Huntington Beach Printed on 7/10/2024Page 1 of 2 powered by Legistar™136 File #:24-491 MEETING DATE:7/16/2024 City of Newport Beach at an hourly rate of $850. Environmental Status: This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Strategic Plan Goal: Goal 8 - Public Safety, Strategy A - Community-wide comprehensive risk reduction program to optimize public safety's emergency response and reduce the number of calls. Attachment(s): 1. Service Agreement for Public Safety Helicopter Support Between the City of Huntington Beach and the City of Newport Beach FY 24-27 2. Previous Service Agreement FY 21-23. 3. Amendment No. 1 - 6-month extension. 4. COI - City of Newport Beach - Self Insurance. City of Huntington Beach Printed on 7/10/2024Page 2 of 2 powered by Legistar™137 138 SERVICES AGREEMENT FOR PUBLIC SAFETY HELICOPTER SUPPORT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE CITY OF NEWPORT BEACH This Services Agreement for Public Safety Helicopter Support ("Agreement") is made by and between the City of Huntington Beach, a California Municipal Corporation ("Huntington Beach") and the City of Newport Beach, a California Municipal Corporation ("Newport Beach") based on the following: A. Huntington Beach employs, maintains, trains and equips personnel capable of responding to requests for public safety helicopter services from ground based public safety personnel. B. Newport Beach is responsible for providing public safety services within its jurisdiction, which include public safety helicopter services. C. Newport Beach requires the services of Huntington Beach to provide public safety helicopter services to its land and residents. TERM This Agreement shall commence on July I, 2024 and end on June 30, 2027 unless terminated earlier as set forth herein. I PURPOSE 1.0 I The purpose of this Agreement is to provide public safety helicopter services to Newp01t Beach's land and residents and for Newport Beach to pay an all-inclusive flat rate per hour for the cost of the services provided by Huntington Beach. 1.02 Nothing in this Agreement shall be interpreted to give Newp01t Beach a right to services from Huntington Beach. Huntington Beach expressly retains all rights and powers to direct, manage, maintain, train, employ, equip, operate and control all equipment, facilities, properties and personnel in providing public safety helicopter services to Newport Beach pursuant to this Agreement. Newport Beach acknowledges and agrees that the efficient use of public safety helicopter services requires a timely and prioritized response of a helicopter. Newport Beach agrees that Huntington Beach will have the sole discretion to determine the priority of calls for service and when an assignment of an air crew to a call will be terminated. 1.03 Notwithstanding anything in the Agreement to the contrary, Newport Beach expressly retains all rights and powers to direct, manage, maintain, train, employ, equip, operate and control all equipment, facilities, properties and personnel in providing ground based public safety services to its land and residents. 24-144 90/34 225 3 1 139 II SERVICES 2.01 Huntington Beach will furnish Newport Beach with public safety helicopter services that will include a helicopter aircrew comprised of a pilot and tactical flight officer that are both sworn peace officers and specially trained to conduct public safety helicopter services. Huntington Beach and the helicopter aircrews retain the sole and exclusive discretion as to the specific type, nature, timing and duration of the services performed pursuant to this Agreement. 2.02 Huntington Beach certifies that all helicopter aircrews providing public safety helicopter services to Newport Beach under this Agreement currently possess, and shall maintain for the life of this Agreement, all permits, licenses, certifications, and training required from any federal, state or local governmental entity to provide public safety helicopter services. 2.03 In no event shall Huntington Beach or the helicopter aircrew be responsible for the direction and control of ground based public safety personnel and equipment of Newport Beach during the course and scope of the public safety helicopter services performed pursuant to this Agreement. 2.04 In the event of a natural disaster or local or regional emergency, Huntington Beach shall take all reasonable steps to provide Newport Beach with public safety helicopter service that is dedicated to the exclusive use of Newport Beach. This shall include an obligation on the part of Huntington Beach to "hold over" any on-duty and/or "call in" any off-duty helicopter aircrew(s) or personnel necessary to provide Newport Beach with public safety helicopter service that is dedicated to the exclusive use of Newport Beach. Additionally, in the event of a natural disaster or local or regional emergency, Huntington Beach shall provide Newpmi Beach with a first right of refusal to have public safety helicopter services prior to allowing or releasing said public safety helicopter services to other governmental agencies for use or deployment during said natural disaster or local or regional emergency. III COMPENSATION 3 .01 Newp01i Beach shall pay Huntington Beach for the public safety helicopter services provided on an hourly basis in accordance with the provisions of this Section. Huntington Beach's total compensation for all services performed in accordance with this Agreement shall not exceed Two Million Four Hundred Thousand Dollars and no/100 ($2,400,000.00) without prior written authorization from Newport Beach. Furthermore, Huntington Beach's total compensation in any single Fiscal Year ( defined as July I st through June 30 th) shall not exceed Eight Hundred Thousand Dollars and no/100 ($800,000.00) without prior written authorization from Newport Beach. 3.02 Huntington Beach shall provide public safety helicopter services to Newport Beach at an all-inclusive flat rate as set forth in this Agreement. Newpmi Beach shall incur no other direct or indirect costs or fees for the services provided by Huntington Beach under this Agreement. Huntington Beach shall bill Newport Beach for all public safety helicopter services Services Agreement For Public Safety Helicopter Support 2 140 provided under this Agreement in tenth of an hour increments. 3.03 Huntington Beach shall submit monthly invoices to Newport Beach describing the public safety helicopter services provided in the preceding month. Huntington Beach will also provide Newport Beach with a monthly statement detailing all calls for service and time spent on routine patrol over Newport Beach's jurisdiction. The monthly statement shall include the names of the helicopter aircrew who performed the services, a brief description of the services performed and/or the specific task performed, the date the services were performed, the number of hours spent on all services billed on an hourly basis in tenth of an hour increments. 3.04 Newport Beach's Chief of Police, or the Chiefs designee (the "Chief'), shall notify the Huntington Beach Air Suppo1i Unit Commander ("Unit Commander") within twenty (20) days of receipt of the monthly statement of any disputed calls for service or time spent on routine patrol over Newport Beach's jurisdiction. The Unit Commander and the Chief will review the public safety helicopter service provided by Huntington Beach on an as needed basis to ensure that it coincides with the service level desired by Newport Beach. The Unit Commander and the Chief will be responsible for cooperatively resolving any disputes over services provided under this Agreement and adjusting the service level to coincide with that desired by Newport Beach. 3.05 Should Huntington Beach provide over One Thousand (1000) hours of public safety helicopter services to Newport Beach in any single Fiscal Year under this Agreement, Huntington Beach acknowledges and agrees that it shall not receive any compensation for said services without the prior written authorization from Newport Beach. 3.06 Huntington Beach shall provide public safety helicopter services to Newport Beach at an all-inclusive flat rate of Eight Hundred Fifty Dollars ($850) per hour of service for the first year of service. Commencing on July I, 2025, the hourly fee for Air Support Services shall be adjusted on July 1 of each year based on the change in the Metropolitan Consumer Price Index. The change will be conducted using the "Consumer Price Index for All Urban Consumers (CPI-U), for the Los Angeles-Riverside-Orange County, California area; All items not seasonally adjusted, 1982-1984=100 reference base." The adjustment will be based on the current contract rate using the January index of the current year and the January index of the preceding year. The Huntington Beach Police Chief shall adjust the fees set forth in the MOU by such percentage change and rounded to the next highest dollar amount. Should the Consumer Price Index be revised or discontinued, the Police Chief shall use the revised or a comparable index as approved by the City Council. IV NEWPORT BEACH DUTIES 4.0 I Newport Beach shall pay Huntington Beach an all-inclusive flat rate per hour for the cost of the services provided by Huntington pursuant to Paragraph 3.01 -3.06 of this Agreement, for services provided by Huntington Beach under this Agreement. The public safety helicopter services performed by the Huntington Beach shall be deemed to commence as of the date and time the aircraft is dispatched to, or arrives over, the airspace of Newport Beach, Services Agreement For Public Safety Helicopter Supp011 3 141 whichever occurs first. These services shall continue until the aircrew notifies Newport Beach that the assignment is complete or that the assignment must be terminated due to a higher priority assignment. Huntington Beach helicopter aircrew shall be responsible to notify Newport Beach's dispatch center that the assignment is complete or that the assignment must be te1minated due to a higher priority assignment. Services performed by Huntington Beach aircraft for Newport Beach shall be defined as: A. A direct request for public safety helicopter services by Newport Beach where a Huntington Beach aircraft is dispatched to or arrives over the incident ( operationally identified as a "D-1" call) or; B. Any public safety call generated by Newport Beach and monitored by a Huntington Beach helicopter aircrew in which the aircraft arrives over the incident (operationally identified as a "D-2" call) or; C. Routine patrol over Newport Beach's jurisdictional areas, in which case Huntington Beach's aircrew shall notify Newport Beach's dispatch center upon their arrival and depart from Newport Beach's jurisdictional area. Newport Beach may authorize its ground based public safety supervision to cancel a response by a Huntington Beach aircrew. 4.02 Newport Beach agrees to comply with the FAR Pait 91 and Operations Manual section 4085 in making calls for services, which establishes priority for calls to Huntington Beach. 4.03 Newpo1t Beach agrees to install within its communications/dispatch center any radio equipment necessary to communicate directly with Huntington Beach on the designated frequency (800 MHz Talk Group) agreed upon by Huntington Beach and Newport Beach. All costs associated with said installation shall be paid by Newport Beach. V INDEMNIFICATION AND WAIVER 5.01 Newport Beach agrees that Huntington Beach should be fully protected from any loss, injury, dainage, claim, lawsuit, cost or expense arising out of, or in any way related, to the performance of services pursuant to this Agreement that is in excess of Huntington Beach's requirement to cany and maintain ce1tain policies of insurance and naine Newport Beach as an additional insured as set forth below in section VI. Subject to Huntington Beach's requirement to carry and maintain ce1tain policies of insurance and name Newpmt Beach as an additional insured as set forth below in section VI, the provisions of this Agreement should be construed and interpreted to provide the fullest possible protection to Huntington Beach. Newport Beach acknowledges that Huntington Beach would not provide services in the absence of the commitments of Newport Beach as specified in this Agreement. Huntington Beach acknowledges that Newpmt Beach would not enter into this Agreement in the absence of Huntington Beach's commitment and obligation to cany and maintain certain policies of insurance and name Newport Beach as an additional insured as set forth below in section VI. Services Agreement For Public Safety Helicopter Support 4 142 5.02 To the fullest extent permitted by law, Newport Beach shall indemnify, defend and hold harmless Huntington Beach, its boards, officers, agents and employees (collectively, the "Indemnified Paiiies") from and against any and all claims (including, without limitation, claims for bodily injury, death or dainage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims"), which may arise from or in any manner relate ( directly or indirectly) to any services provided under this Agreement including, but not limited to, activities that relate in any way to this Agreement (including the negligent and/or willful acts, errors and/or omissions of Newport Beach, its council members, officers, agents, employees, and anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them) that is in excess of Huntington Beach's requirement to carry and maintain certain policies of insurance and name Newport Beach as an additional insured as set forth below in section VI. Notwithstanding the foregoing, nothing herein shall be construed to require Newport Beach to indemnify the Indemnified Parties from any Claim arising from the negligence or willful misconduct of the Indemnified Parties. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. 5.03 Huntington Beach shall defend, indemnify and hold hai·mless Newport Beach and its officers, employees, contractors, agents and representatives, with respect to any claim, loss, liability, dainage, lawsuit, cost or expense that arises out of, or is in any way related, to the negligence or willful misconduct by Huntington Beach, including its boards, officers, agents and employees, within the Newport Beach's jurisdiction. The obligation of Huntington Beach pursuant to this section extends, without limitation, to any injury, death, loss or damage which occurs within Newport Beach's jurisdiction and which is sustained by any third paiiy, any employee or contractor of Newport Beach and to such contractor's employees. VI INSURANCE 6.01 Without limiting Huntington Beach's indemnification ofNewport Beach, and prior to commencement of Work, Huntington Beach shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to Newport Beach. 6.01.1 Proof of Insurance. Huntington Beach shall provide certificates of insurance to Newport Beach as evidence of the insurance coverage required herein. Insurance certificates and endorsement must be approved by Newport Beach's Risk Manager prior to commencement of perfmmance. Current certification of insurance shall be kept on file with Newport Beach at all times during the term of this contract. Newport Beach reserves the right to require complete, ce1iified copies of all required insurance policies, at any time. Huntington Beach shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or dainages to property, which may arise from or in connection with the performance of the Work hereunder by Huntington Beach, his agents, representatives, employees or subconsultants. The cost of such insurance shall be included in Huntington Beach's bid. Services Agreement For Public Safety Helicopter Support 5 143 6.01.2 Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A-(or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the Newport Beach's Risk Manager. 6.01.3 Coverage Requirements. 6.01.3.l Workers' Compensation Coverage. Huntington Beach shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least one million dollars ($1,000,000)) for Huntington Beach's employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. Any notice of cancellation or non-renewal of all Workers' Compensation policies must be received by Newp01t Beach at least thirty (30) calendar days (ten ( 10) calendar days written notice of non- payment of premium) prior to such change. Huntington Beach shall submit to Newport Beach, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of Newport Beach, its officers, agents, employees and volunteers. 6.01.3.2 Aircraft Liability Coverage. Huntington Beach shall maintain commercial aircraft liability insurance in an amount not less than twenty-five million dollars ($25,000,000) per occmTence for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability including war risk and premises liability insurance to include prope1ty damages incidental to the operations of the named insured 6.01.3 .3 Automobile Liability Coverage. Huntington Beach shall maintain automobile insurance covering bodily injury and property damage for all activities of the Huntington Beach arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit for each accident. 6.01.4 Other Insurance Provisions or Requirements. The policies are to contain, or be endorsed to contain, the following provisions: 6.01.4.1 Additional Insured. Endorsement naming the City of Newport Beach as respects the Aircraft Liability coverage with primary non-contributory and severability of interest language. 6.01 .4.2 Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against Newp01t Beach, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Huntington Beach or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Huntington Beach hereby waives its own right of recovery against Newport Beach, and shall require similar written express waivers and insurance clauses from each of its subconsultants. This waiver of subrogation extends to hull loss and property damage. Services Agreement For Public Safety Helicopter Support 6 144 6.01.4.3 Enforcement of Contract Provisions. Huntington Beach acknowledges and agrees that any actual or alleged failure on the part of the Newport Beach to infonn Huntington Beach of non-compliance with any requirement imposes no additional obligations on the Newport Beach nor does it waive any rights hereunder. 6.01.4.4 Requirements not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. 6.01.4.5 Notice of Cancellation. Huntington Beach agrees to oblige its insurance agent or broker and insurers to provide to Newport Beach with thirty (30) days notice of cancellation (except for nonpayment for which ten (10) days notice is required) or nonrenewal of coverage for each required coverage. 6.01.5 Timely Notice of Claims. Huntington Beach shall give Newport Beach prompt and timely notice of claims made or suits instituted that arise out of or result from Huntington Beach's performance under this Agreement. 6.01.6 Additional Insurance. Huntington Beach shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. VII MISCELLANEOUS PROVISIONS 7.01 Each of the Parties to this Agreement shall immediately notify the other of any litigation or claim that is asserted by or against either party regarding this Agreement. In the event of any dispute or legal action arising under this Agreement, the prevailing patty shall not be entitled to attorney's fees. 7.02 Each of the Patties to this Agreement shall cooperate with one another in the defense of any lawsuit or claim filed against either party, arising out of, or in any way related, to this Agreement, as well as any effort of Huntington Beach to collect money from persons or entities responsible for any request for public safety helicopter services. 7.03 The public safety helicopter services provided by Huntington Beach under this Agreement shall not be assigned, transferred, contracted or subcontracted out without the prior written approval of Newport Beach. 7.04 Each of the Patties to this Agreement may terminate this Agreement without cause upon sixty ( 60) days prior written notice. 7.05 The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of Services Agreement For Public Safety Helicopter Support 7 145 competent jurisdiction in the County of Orange. 7 .06 If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 7.07 This Agreement may be modified or amended only by a written document executed by both Huntington Beach and Newport Beach. 7.08 The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 7.09 This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 7.10 A waiver by either party of any breach, of any te1m, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 7.11 Except as specifically authorized under this Agreement, the services to be provided under this Agreement shall not be assigned, transferred, contracted or subcontracted out without the prior written approval of Huntington Beach and Newport Beach. 7.12 This Agreement may be executed in any number of counterpaiis, each of which shall be an original, but all of which together shall constitute one instrument. 7.13 The Paiiies shall at their own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. 7.14 The Parties each represent that they are an equal opportunity employer and they shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. 7.15 All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first-class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Huntington Beach to Newport Beach shall be addressed to Newport Beach at: Services Agreement For Public Safety Helicopter Support 8 146 Attn: Joseph L. Cartwright Newport Beach Police Department 870 Santa Barbara Drive Newport Beach, CA 92660 Phone: (714) 754-5344 All notices, demands, requests or approvals from Newport Beach to Huntington Beach shall be addressed to Huntington Beach at: Attention: Eric Parra Huntington Beach Police Department 2000 Main Street P.O. Box 70 Huntington Beach, CA 92648 Phone : 714-536-5903 Fax: 714-536-5605 IN WITNESS WHERE OF, the parties hereto have caused this Agreement to be executed on the dates written below. CITY OF NEWPORT BEACH Date: '/.. 0/v,-z_ '-/ ------'----'--.c....._-----'--- Mayor, City ofNewporteach ATTEST: Cit APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY Date: 6 / tf/2 t) :2 r ttorney, City of Newport Beach 11?5 ~l'--1/,"f CITY OF HUNTINGTON BEACH Date: ----~--- Mayor, City of Huntington Beach ATTEST: Date: ---------- City Clerk, City of Huntington Beach APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY Ci( orney, City of Huntington Beach Services Agreement For Public Safety Helicopter Suppo1t 9 147 SERVICES AGREEMENT FOR PUBLIC SAFETY HELICOPTER SUPPORT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE CITY OF NEWPORT BEACH This Services Agreement for Public Safety Helicopter Support ("Agreement") is made by and between the City of Huntington Beach, a California Municipal Corporation ("Huntington Beach") and the City of Newport Beach, a California Municipal Corporation ("Newport Beach") based on the following: A. Huntington Beach employs, maintains, trains and equips personnel capable of responding to requests for public safety helicopter services from ground based public safety personnel. B. Newport Beach is responsible for providing public safety services within its jurisdiction, which include public safety helicopter services. C. Newport Beach requires the services of Huntington Beach to provide public safety helicopter services to its land and residents. TERM This Agreement shall commence on the date it is last executed by a party and end on December 31, 2023 unless terminated earlier as set forth herein. I PURPOSE 1.01 The purpose of this Agreement is to provide public safety helicopter services to Newport Beach's land and residents and for Newport Beach to pay an all-inclusive flat rate per hour for the cost of the services provided by Huntington Beach. 1.02 Nothing in this Agreement shall be interpreted to give Newport Beach a right to services from Huntington Beach. Huntington Beach expressly retains all rights and powers to direct, manage, maintain, train, employ, equip, operate and control all equipment, facilities, properties and personnel in providing public safety helicopter services to Newport Beach pursuant to this Agreement. Newport Beach acknowledges and agrees that the efficient use of public safety helicopter services requires a timely and prioritized response of a helicopter. Newport Beach agrees that Huntington Beach will have the sole discretion to determine the priority of calls for service and when an assignment of an air crew to a call will be terminated. 1.03 Notwithstanding anything in the Agreement to the contrary, the Newport Beach expressly retains all rights and powers to direct, manage, maintain, train, employ, equip, operate and control all equipment, facilities, prope1iies and personnel in providing ground based public safety services to its land and residents. 20-8633/229965 1 148 II SERVICES 2.01 Huntington Beach will furnish Newport Beach with public safety helicopter services that will include a helicopter aircrew comprised of a pilot and tactical flight officer that are both sworn peace officers and specially trained to conduct public safety helicopter services. Huntington Beach and the helicopter aircrews retain the sole and exclusive discretion as to the specific type, nature, timing and duration of the services performed pursuant to this Agreement. 2.02 Huntington Beach certifies that all helicopter aircrews providing public safety helicopter services to Newport Beach under this Agreement currently possess, and shall maintain for the life of this Agreement, all permits, licenses, certifications, and training required from any federal, state or local governmental entity to provide public safety helicopter services. 2.03 In no event shall Huntington Beach or the helicopter aircrew be responsible for the direction and control of ground based public safety personnel and equipment of Newport Beach during the course and scope of the public safety helicopter services performed pursuant to this Agreement. 2.04 In the event of a natural disaster or local or regional emergency, Huntington Beach shall take all reasonable steps to provide Newport Beach with public safety helicopter service that is dedicated to the exclusive use of Newport Beach. This shall include an obligation on the part of Huntington Beach to "hold over" any on-duty and/or "call in" any off-duty helicopter aircrew(s) or personnel necessary to provide Newport Beach with public safety helicopter service that is dedicated to the exclusive use of Newport Beach. Additionally, in the event of a natural disaster or local or regional emergency, Huntington Beach shall provide Newport Beach with a first right of refusal to have public safety helicopter services prior to allowing or releasing said public safety helicopter services to other governmental agencies for use or deployment during said natural disaster or local or regional emergency. III COMPENSATION 3.01 Newport Beach shall pay Huntington Beach for the public safety helicopter services provided on an hourly basis in accordance with the provisions of this Section. Huntington Beach's total compensation for all services performed in accordance with this Agreement shall not exceed Two Million Four Hundred Thousand Dollars and no/100 ($2,400,000.00) without prior written authorization from Newport Beach. Furthermore, Huntington Beach's total compensation in any single Fiscal Year ( defined as July 1st through June 30th) shall not exceed Eight Hundred Thousand Dollars and no/100 ($800,000.00) without prior written authorization from Newport Beach. Services Agreement For Public Safety Helicopter Support 2 149 3.02 Huntington Beach shall provide public safety helicopter services to Newport Beach at an all-inclusive flat rate as set forth in this Agreement. Newport Beach shall incur no other direct or indirect costs or fees for the services provided by Huntington Beach under this Agreement. Huntington Beach shall bill Newport Beach for all public safety helicopter services provided under this Agreement in tenth of an hour increments. 3.03 Huntington Beach shall submit monthly invoices to Newport Beach describing the public safety helicopter services provided in the preceding month. Huntington Beach will also provide Newport Beach with a monthly statement detailing all calls for service and time spent on routine patrol over Newport Beach's jurisdiction. The monthly statement shall include the names of the helicopter aircrew who performed the services, a brief description of the services performed and/or the specific task performed, the date the services were performed, the number of hours spent on all services billed on an hourly basis in tenth of an hour increments. 3.04 Newport Beach's Chief of Police, or the Chiefs designee (the "Chief'), shall notify the Huntington Beach Air Support Unit Commander ("Unit Commander") within twenty (20) days ofreceipt of the monthly statement of any disputed calls for service or time spent on routine patrol over Newport Beach's jurisdiction. The Unit Commander and the Chief will review the public safety helicopter service provided by Huntington Beach on an as needed basis to ensure that it coincides with the service level desired by Newport Beach. The Unit Commander and the Chief will be responsible for cooperatively resolving any disputes over services provided under this Agreement and adjusting the service level to coincide with that desired by Newport Beach. 3.05 Should Huntington Beach provide over One Thousand (1000) hours of public safety helicopter services to Newport Beach in any single Fiscal Year under this Agreement, Huntington Beach acknowledges and agrees that it shall not receive any compensation for said services without the prior written authorization from Newport Beach. 3.06 Huntington Beach shall provide public safety helicopter services to Newport Beach at an all-inclusive flat rate of Eight Hundred Dollars ($800) per hour of service for the first year of service. Commencing on July 1, 2020, the hourly fee for Air Support Services shall be adjusted on July 1 of each year based on the change in the Metropolitan Consumer Price Index. The change will be conducted using the "Consumer Price Index for All Urban Consumers (CPI-U), for the Los Angeles-Riverside-Orange County, California area; All items not seasonally adjusted, 1982-1984=100 reference base." The adjustment will be based on the current contract rate using the January index of the current year and the January index of the preceding year. The Huntington Beach Police Chief shall adjust the fees set forth in the MOU by such percentage change and rounded to the next highest dollar amount. Should the Consumer Price Index be revised or discontinued, the Police Chief shall use the revised or a comparable index as approved by the City Council. Services Agreement For Public Safety Helicopter Support 3 150 IV NEWPORT BEACH DUTIES 4.01 Newport Beach shall pay Huntington Beach an all-inclusive flat rate per hour for the cost of the services provided by Huntington pursuant to Paragraph 3.01 -3.06 of this Agreement, for services provided by Huntington Beach under this Agreement. The public safety helicopter services performed by the Huntington Beach shall be deemed to commence as of the date and time the aircraft is dispatched to, or arrives over, the airspace of Newport Beach, whichever occurs first. These services shall continue until the aircrew notifies Newport Beach that the assignment is complete or that the assignment must be terminated due to a higher priority assignment. Huntington Beach helicopter aircrew shall be responsible to notify Newport Beach's dispatch center that the assignment is complete or that the assignment must be terminated due to a higher priority assignment. Services performed by Huntington Beach aircraft for Newport Beach shall be defined as: A. A direct request for public safety helicopter services by Newport Beach where a Huntington Beach aircraft is dispatched to or arrives over the incident ( operationally identified as a "D-1" call) or; B. Any public safety call generated by Newport Beach and monitored by a Huntington Beach helicopter aircrew in which the aircraft arrives over the incident ( operationally identified as a "D-2" call) or; C. Routine patrol over Newport Beach's jurisdictional areas, in which case Huntington Beach's aircrew shall notify Newport Beach's dispatch center upon their arrival and depart from Newport Beach's jurisdictional area. Newport Beach may authorize its ground based public safety supervision to cancel a response by a Huntington Beach aircrew. 4.02 Newport Beach agrees to comply with the FAR Part 91 and Operations Manual section 4085 in making calls for services, which establishes priority for calls to Huntington Beach. 4.03 Newport Beach agrees to install within its communications/dispatch center any radio equipment necessary to communicate directly with Huntington Beach on the designated frequency (800 MHz Talk Group) agreed upon by Huntington Beach and Newport Beach. All costs associated with said installation shall be paid by Newport Beach. V INDEMNIFICATION AND WAIVER 5.01 Newport Beach agrees that Huntington Beach should be fully protected from any loss, injury, damage, claim, lawsuit, cost or expense arising out of, or in any way related, to the performance of services pursuant to this Agreement that is in excess of Huntington Beach's requirement to carry and maintain certain policies of insurance and name Newport Beach as an Additional insured as set forth below in section VI. Subject to Huntington Beach's requirement Services Agreement For Public Safety Helicopter Support 4 151 to carry and maintain certain policies of insurance and name Newport Beach as an additional insured as set forth below in section VI, the provisions of this Agreement should be construed and interpreted to provide the fullest possible protection to Huntington Beach. Newport Beach acknowledges that Huntington Beach would not provide services in the absence of the commitments of Newport Beach as specified in this Agreement. Huntington Beach acknowledges that Newport Beach would not enter into this Agreement in the absence of Huntington Beach's commitment and obligation to carry and maintain certain policies of insurance and name Newport Beach as an additional insured as set forth below in section VI. 5.02 To the fullest extent permitted by law, Newport Beach shall indemnify, defend and hold harmless Huntington Beach, its boards, officers, agents and employees (collectively, the "Indemnified Parties") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims"), which may arise from or in any manner relate (directly or indirectly) to any services provided under this Agreement including, but not limited to, activities that relate in any way to this Agreement (including the negligent and/or willful acts, errors and/or omissions of Newport Beach, its council members, officers, agents, employees, and anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them) that is in excess of Huntington Beach's requirement to carry and maintain certain policies of insurance and name Newport Beach as an additional insured as set forth below in section VI. Notwithstanding the foregoing, nothing herein shall be construed to require Newport Beach to indemnify the Indemnified Parties from any Claim arising from the negligence or willful misconduct of the Indemnified Parties. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. 5.03 Huntington Beach shall defend, indemnify and hold harmless Newport Beach and its officers, employees, contractors, agents and representatives, with respect to any claim, loss, liability, damage, lawsuit, cost or expense that arises out of, or is in any way related, to the negligence or willful misconduct by Huntington Beach, including its boards, officers, agents and employees, within the Newport Beach's jurisdiction. The obligation of Huntington Beach pursuant to this section extends, without limitation, to any injury, death, loss or damage which occurs within Newport Beach's jurisdiction and which is sustained by any third party, any employee or contractor of Newport Beach and to such contractor's employees. VI INSURANCE 6.01 Without limiting Huntington Beach's indemnification of Newport Beach, and prior to commencement of Work, Huntington Beach shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to Newport Beach. Services Agreement For Public Safety Helicopter Support 5 152 6.01.1 Proof of Insurance. Huntington Beach shall provide certificates of insurance to Newport Beach as evidence of the insurance coverage required herein. Insurance certificates and endorsement must be approved by Newport Beach's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with Newport Beach at all times during the term of this contract. Newport Beach reserves the right to require complete, certified copies of all required insurance policies, at any time. Huntington Beach shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Huntington Beach, his agents, representatives, employees or subconsultants. The cost of such insurance shall be included in Huntington Beach's bid. 6.01.2 Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A-(or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the Newport Beach's Risk Manager. 6.01.3 Coverage Requirements. 6.01.3.1 Workers' Compensation Coverage. Huntington Beach shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least one million dollars ($1,000,000)) for Huntington Beach's employees in accordance with the laws of the State of California, Section 3 700 of the Labor Code. Any notice of cancellation or non-renewal of all Workers' Compensation policies must be received by Newport Beach at least thirty (30) calendar days (ten (10) calendar days written notice of non- payment of premium) prior to such change. Huntington Beach shall submit to Newport Beach, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of Newport Beach, its officers, agents, employees and volunteers. 6.01 .3.2 Aircraft Liability Coverage. Huntington Beach shall maintain commercial aircraft liability insurance in an amount not less than twenty-five million dollars ($25,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability including war risk and premises liability insurance to include property damages incidental to the operations of the named insured 6.01.3.3 Automobile Liability Coverage. Huntington Beach shall maintain automobile insurance covering bodily injury and property damage for all activities of the Huntington Beach arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit for each accident. Services Agreement For Public Safety Helicopter Support 6 153 6.01.4 Other Insurance Provisions or Requirements. The policies are to contain, or be endorsed to contain, the following provisions: 6.01.4.1 Additional Insured. Endorsement naming the City of Newport Beach as respects the Aircraft Liability coverage with primary non-contributory and severability of interest language. 6.01.4.2 Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against Newport Beach, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Huntington Beach or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Huntington Beach hereby waives its own right of recovery against Newport Beach, and shall require similar written express waivers and insurance clauses from each of its subconsultants. This waiver of subrogation extends to hull loss and property damage. 6.01.4.3 Enforcement of Contract Provisions. Huntington Beach acknowledges and agrees that any actual or alleged failure on the part of the Newport Beach to inform Huntington Beach of non-compliance with any requirement imposes no additional obligations on the Newport Beach nor does it waive any rights hereunder. 6.01 .4.4 Requirements not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. 6.01.4.5 Notice of Cancellation. Huntington Beach agrees to oblige its insurance agent or broker and insurers to provide to Newport Beach with thirty (30) days notice of cancellation (except for nonpayment for which ten (10) days notice is required) or nonrenewal of coverage for each required coverage. 6.01.5 Timely Notice of Claims. Huntington Beach shall give Newport Beach prompt and timely notice of claims made or suits instituted that arise out of or result from Huntington Beach's performance under this Agreement. 6.01.6 Additional Insurance. Huntington Beach shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. VII MISCELLANEOUS PROVISIONS 7.01 Each of the Parties to this Agreement shall immediately notify the other of any litigation or claim that is asserted by or against either party regarding this Agreement. In the Services Agreement For Public Safety Helicopter Support 7 154 event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorney's fees. 7.02 Each of the Parties to this Agreement shall cooperate with one another in the defense of any lawsuit or claim filed against either party, arising out of, or in any way related, to this Agreement, as well as any effort of Huntington Beach to collect money from persons or entities responsible for any request for public safety helicopter services. 7.03 The public safety helicopter services provided by Huntington Beach under this Agreement shall not be assigned, transferred, contracted or subcontracted out without the prior written approval of Newport Beach. 7.04 Each of the Parties to this Agreement may terminate this Agreement without cause upon sixty (60) days prior written notice. 7.05 The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange. 7.06 If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 7.07 This Agreement may be modified or amended only by a written document executed by both Huntington Beach and Newport Beach. 7.08 The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 7.09 This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 7 .10 A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 7 .11 Except as specifically authorized under this Agreement, the services to be provided under this Agreement shall not be assigned, transferred, contracted or subcontracted out without the prior written approval of Huntington Beach and Newport Beach. 7.12 This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. Services Agreement For Public Safety Helicopter Support 8 155 7 .13 The Parties shall at their own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. 7 .14 The Parties each represent that they are an equal opportunity employer and they shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. 7.15 All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first-class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Huntington Beach to Newport Beach shall be addressed to Newport Beach at: Attn: Chief Jon T. Lewis Newport Beach Police Department 870 Santa Barbara Drive Newport Beach, CA 92658 Phone:949-644-3701 Fax: 949-718-1082 All notices, demands, requests or approvals from Newport Beach to Huntington Beach shall be addressed to Huntington Beach at: Attention: Robert Handy Huntington Beach Police Department 2000 Main Street P.O. Box 70 Huntington Beach, CA 92648 Phone:714-536-5903 Fax: 714-536-5605 Services Agreement For Public Safety Helicopter Support 9 156 IN WITNESS WHERE OF, the parities hereto have caused this Agreement to be executed on the dates written below . CITY OF NEWPORT BEACH Mayor, City of Newport Beach ATTEST: APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY Date : o~b~/;}-0 , CITY OF HUNTINGTON BEACH Date: :July ~) ;;.o~o Q /2t?.:?'~ a0 ity of Huntington Beach ATTEST: Date: ~ /ll g /0( ~~ CJ ::x~~~~ City Clerk, City of Huntington Beach APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY Date: ---------- · y Attorney, City of Newport Beach (.N"ou,,~ 'n.City Attorney, Services Agreement For Public Safety Helicopter Suppmi 157 AMENDMENT NO. 1 TO SERVICES AGREEMENT FOR PUBLIC SAFETY HELICOPTER SUPPORT BETWEEN THE CITY OF HUNTINGTON BEACH AND THE CITY OF NEWPORT BEACH THIS AMENDMENT is made and entered into by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation, hereinafter referred to as "Huntington Beach," and the CITY OF NEWPORT BEACH, a California municipal corporation, hereinafter referred to as "Newpo1t Beach." WHEREAS, Huntington Beach and Newport Beach are parties to that certain agreement, dated September 15, 2020, entitled "Services Agreement for Public Safety Helicopter Support Between the City of Huntington Beach and the City of Newport Beach" which agreement shall hereinafter be referred to as the "Original Agreement"; WHEREAS, the Original Agreement is set to expire December 31, 2023; and WHEREAS, Huntington Beach and Newport Beach wish to amend the Original Agreement to extend the term. NOW, THEREFORE, it is agreed by Huntington Beach and Newport Beach as follows: 1. TERM The term of the Agreement is extended for an additional six (6) months until June 30, 2024. 2. REAFFIRMATION Except as specifically modified herein, all other terms and conditions for the Original Agreement shall remain in full force and effect. 23-13630/321754 158 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers on February 20 1 2024 , 2023 CITY OF NEWPORT BEACH BEACH ATTEST: Date:__,_/,___;____;_/ 0~, ~----'tLf'---------1--- APPROVED AS TO FORM: OFFICE OF THE CITY A Tl'ORNEY ATTORNEY Date: I l (2..$'/2.oJ. 3 City Attorney, City of Newport Beach Fr) Beach ,1/:.s <~/23 23-13630/321754 2 CITY OF HUNTINGTON Date: ~ \ '2,_l \ ~{ ~~ Mayor, City of Huntington Beach ATTEST: Date: d--L9..t /6? p;;;_f ~ ~~ lerk, City of Huntington APPROVED AS TO FORM: OFFICE OF THE CITY 159 City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Certificate of Self Insurance Memorandum Number: FY 24/25, No. O 1 O This evidence of coverage is used as a matter of information only and confers no rights upon the Certificate Holder. This evidence of coverage does not amend, ex tend or alter the coverage afforded by the memoranda listed below. Certificate Holder: City of Newport Beach Coverage Effective: 07/01/24 Coverage Expires: 06/30/25 This is to certify that the City of Huntington Beach is self-insured for general liability claims . Sufficient cash reserves to afford coverage for uninsured losses are maintained at $ 1,000,000. Type of Coverage: General Liability, Comprehensive Auto Liability, Employer's Liability, Workers' Compensation Coverage Limit of Liability/Coverage: $1 ,000,000 Combined Single Limit per Occurrence Certificate Requested By: DeAnna Soria, Risk Management Description of Operation, Vehicle or Property: This certificate is issued to and additonally insures the Certificate Holder, its agents, officers, representatives and employees as proof of the City of Huntington Beach's self-insurance status in conjuction with the Services Agreement for Public Safety Helicopter Support between the City of Huntington Beach and the City of Newport Beach . It is provided to D eAnna Soria of the City of Huntington Beach Human Resources Department at 2000 Main Street, Huntington Beach, CA (92648). Should any of the above coverage for the Covered Party be changed or withdrawn prior to the expiration date issued above, the City of Huntington Beach will mail a 30-day written notice to the Certificate Holder but, failure to mail such notice shall impose no obligation or liability of any kind upon the City of Huntington Beach, its agents, officers or employees. If you have any questions, contact: DeAnna Soria, Risk anager (714) 536-5 19 160 City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Additional Insured Endorsement Memorandum Number: FY 24/25, No. O 1 O This evidence of additional insured status is provided to the person or organization shown in the schedule below. The coverage is provided on a primary and non-contributory basis. SCHEDULE Named of Person or Organization: The City of Newport Beach Coverage Effective: 07/01 /24 Coverage Expires: 06/30/25 Type of Coverage: General Liability Limit of Liability/Coverage: $1,000,000 Combined Single Limit per Occurrence Endorsement Requested By: DeAnna Soria, Risk Management Description of Operation, Vehicle or Property: This additional insured endorsement is issued in conjunction with the Services Agreement for Public Safety Helicopter Support between the City of Huntington Beach and the City of Newport Beach . It is provided to DeAnna Soria of the City of Huntington Beach Human Resourc es D epartment at 2000 Main Street, Huntington Beac h, CA (92648). Should any of the above coverage for the Covered Party be changed or withdrawn prior to the expiration date issued above, the City of Huntington Beach will mail a 30-day written notice to the Certificate Holder but, failure to mail such notice shall impose no obligation or li ability of any kind upon the City of Huntington Beach, its agents, officers or employees. If you have any questions, contact: iZ:xeAnna Soria, RLi)< Manager (714) 53 ~5 19 Authorized Representative: ----,,f'---~-~..,._.~--.,,,.,--------------- City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:24-492 MEETING DATE:7/16/2024 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Eric G. Parra, Interim City Manager VIA:Eric Parra, Chief of Police PREPARED BY:Lt. Thoby Archer and Exec. Asst. Ingrid Ono Subject: Approve and authorize execution of a contract agreement with All City Management Services, Inc. (ACMS), for Crossing Guard Services Statement of Issue: Approval of a three-year contract agreement with All City Management Services, Inc. (ACMS), to continue management of crossing guard services. Financial Impact: The proposed contract amount sets the hourly rate at $29.93 an hour for FY 24/25, $31.43 an hour for FY 25/26, and $32.89 an hour for FY 26/27. The amount not to exceed is estimated at $584,533 for FY 24/25, $613,828 for FY 25/26, and $642,342 for FY 26/27. This estimate is based on the current schedule and deployment of crossing guards. The total cost of the contract over a three-year period should not exceed $1,840,703. Recommended Action: Approve and authorize the Mayor and City Clerk to execute “Agreement Between the City of Huntington Beach and All City Management Services, Inc. for Crossing Guard Services” for a three- year term beginning on June 30, 2024. Alternative Action(s): Do not approve and direct staff accordingly. Analysis: The City of Huntington Beach has maintained a contract for crossing guard services administered by the Police Department. The most recent contract was with All City Management Services for three years, which expired on June 30th, 2024. A competitive bidding process was conducted, and staff recommended awarding the contract to ACMS. City of Huntington Beach Printed on 7/10/2024Page 1 of 2 powered by Legistar™161 File #:24-492 MEETING DATE:7/16/2024 Having crossing guards at key locations during the school year increases visibility and reduces the risk of accidents and injuries to children traveling to and from school. The Huntington Beach Police Department does not have the internal resources to manage a large number of crossing guards and staff them accordingly. ACMS will provide thirty-one (31) personnel equipped and trained in appropriate procedures for crossing pedestrians in marked crosswalks. ACMS will also provide adequate reserve personnel to fill staffing vacancies. ACMS will work directly with affected school districts and communicate with the police department regarding staffing locations and hours and address any complaints that may arise. Environmental Status: This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Strategic Plan Goal: Goal 8 - Public Safety, Strategy A - Community-wide comprehensive risk reduction program to optimize public safety's emergency response and reduce the number of calls. Attachment(s): 1. Agreement between the City of Huntington Beach and All City Management Services, Inc. For Crossing Guard Services 2. All City Management Services Proposal for Crossing Guard Services 3. Request for Proposals 4. Rating sheet tabulation 5. Certificate of Insurance City of Huntington Beach Printed on 7/10/2024Page 2 of 2 powered by Legistar™162 163 AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND ALL CITY MANAGEMENT SERVICES, INC. FOR CROSSING GUARD SERVICES THIS AGREEMENT ("Agreement") is made and entered into this 30th day of June, 2024, by and between the CITY OF HUNTINGTON BEACH a municipal corporation, hereinafter called the "City," and ALL CITY MANAGEMENT SERVICES, INC., hereinafter referred to as "Contractor." WHEREAS, City desires to engage the services of a Contractor to provide crossing guard services. WITNESS ETH The parties hereto have mutually covenanted and agreed as follows: 1. SCOPE OF SERVICES Contractor shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference. These services shall sometime hereinafter be referred to as the "Project." Contractor hereby designates Baron Farwell 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 The City's representative in dealing with the Contractor shall be designated by the City of Huntington Beach Police Department. 3. TERM: TIME OF PERFORMANCE The services of Contractor are to commence June 30, 2024. This Agreement shall expire three (3) years from the Commencement Date, unless sooner terminated as provided therein. All tasks specified in this Agreement shall be completed no later than three (3) year from the Commencement Date of this Agreement. This schedule may be amended to benefit the Project if mutually agreed to in writing by City and Contractor. 4. COMPENSATION In consideration of the performance of the services described therein, City agrees to pay Contractor on a time and materials basis at the rates specified in Exhibit "B," which is attached hereto and incorporated by reference into this Agreement. 24-14561/340304 164 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," Contractor 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 Contractor shall be paid pursuant to the terms of Exhibit "B." 7. HOLD HARMLESS Contractor 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 defense costs, and consequential damage or liability of any kind or nature, however caused, including those resulting from death or injury to Contractor's employees and damage to Contractor's property, arising directly or indirectly out of the obligations or operations herein undertaken by Contractor, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractors, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, including but not limited to concunent active or passive negligence, except if and to the extent caused by the negligence or willful misconduct of the City. Contractor will conduct all defense at its sole cost and expense and City shall approve selection of Contractor's counsel, which approval will not be unreasonably withheld or conditioned. City shall be reimbursed for all costs and attorney's fees incurred by City in enforcing this obligation if Contractor umeasonably fails to promptly assume City's defense. 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 Contractor. 8. WORKERS' COMPENSATION INSURANCE Pursuant to California Labor Code Section 1861, Contractor acknowledges awareness of Section 3700 et seq. of this Code, which requires every employer to be insured against liability for workers' compensation; Contractor covenants that it will comply with such provisions prior to commencing performance of the work hereunder. Contractor shall obtain and furnish to City workers' compensation and employer's liability insurance in an amount of not less than the State statutory limits. Contractor shall require all subcontractors to provide such workers' compensation and employer's liability insurance for all of the subcontractors' employees. Contractor shall furnish to City a certificate of waiver of subrogation under the terms of the workers' compensation and employer's liability insurance and Contractor shall similarly require all subcontractors to waive subrogation. 24-14561/340304 165 9. INSURANCE In addition to the workers' compensation and employer's liability insurance and Contractor's covenant to defend, hold harmless and indemnify City, Contractor shall obtain and furnish to City, a policy of general public liability insurance, including motor vehicle coverage covering the Project. This policy shall indemnify Contractor, its officers, employees and agents while acting within the scope of their duties, against any and all claims arising out or in connection with the Project, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of One Million Dollars ($1,000,000) per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than One Million Dollars ($1,000,000) for this Project. This policy shall name City, its officers, elected or appointed officials, employees, agents, and volunteers as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the Project shall be deemed excess coverage and that Contractor's insurance shall be primary. Under no circumstances shall said above-mentioned insurance contain a self-insured retention, or a "deductible" in excess of Five Thousand Dollars ($5,000) or any other similar form oflimitation on the required coverage, without the prior written consent of City. 10. CERTIFICATES OF INSURANCE; ADDITIONAL INSURED ENDORSEMENTS Prior to commencing performance of the work hereunder, Contractor shall furnish to City certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; the certificates shall: 1. provide the name and policy number of each carrier and policy; 2. state that the policy is currently in force; and 3. promise to provide that such policies will not be canceled or modified without thirty (30) days' prior written notice of City. Contractor shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by City. The requirement for carrying the foregoing insurance coverages shall not derogate from the Contractor's defense, hold harmless and indemnification obligations as set forth under this Agreement. City or its representative shall at all times have the right to demand the original or a copy of all the policies of insurance. Contractor shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. Contractor shall provide a separate copy of the additional insured endorsement to each of Contractor's insurance policies, naming City, its officers, elected and appointed officials, employees, agents and volunteers as Additional Insureds, to the City Attorney for approval prior to any payment hereunder. 24-14561/340304 166 11. INDEPENDENT CONTRACTOR Contractor 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. Contractor 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 Contractor 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 Either party shall have the right to cancel this Agreement by giving ninety (90) days written notice to the other. 13. ASSIGNMENT AND DELEGATION This Agreement is a personal service contract and the work hereunder shall not be assigned, delegated or subcontracted by Contractor 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 subcontractors must satisfy the insurance requirements as set forth in this Agreement. 14. CITY EMPLOYEES AND OFFICIALS Contractor 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. 15. NOTICE Except as otherwise provided herein, all notices required this Agreement shall be in writing and delivered personally or by first class mail, postage prepaid, to each paiiy at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices may be sent by either facsimile or U.S. Mail. Notices shall be deemed received upon receipt of same or within 3 days of deposit in the U.S. Mail, whichever is earlier. Notices sent by facsimile shall be deemed received on the date of the facsimile transmission. TO CITY: City of Huntington Beach Police Department Attn: Ryan Reilly 2000 Main Street Huntington Beach, CA 92648 24-14561/340304 TO CONTRACTOR: All City Management Services, Inc. Attn: David Mecusker 10440 Pioneer Blvd., Ste. 5. Santa Fe Springs, CA 90670 167 16. 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 transactions or event. 17. MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 18. IMMIGRATION Contractor 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. 19. GOVERNINGLAW This Agreement shall be governed and construed in accordance with the laws of the State of California. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers the day, month and year first above written. Contractor ALL CITY MANAGEMENT SERVICES, ' INC, By: D l!.Mlvefr-0,./ ECkr:welL- Demetra Farwell print name ITS: (circle one) Chairman/PresidentNice President AND By: ___________ _ print name ITS: (circle one) Secretary/Chief Financial Officer/ Asst. Secretary -Treasurer REVIEWED AND APPROVED: City Manager 24-14561/340304 CITY OF HUNTINGTON BEACH, a municipal corporation of the State of Califomia Mayor City Clerk INITIATED AND APPROVED: Police Chief APPROVED AS TO FORM: City Attorney cctf 168 EXHIBIT "A" A. STATEMENT OF WORK: (Narrative of work to be performed) CONTRACTOR shall provide crossing guard services for the City of Huntington Beach. B. CONSUL TANT1S DUTIES AND RESPONSIBILITIES: 1. The Contractor will provide personnel equipped and trained in appropriate procedures for crossing pedestrians in marked crosswalks. Such personnel shall be herein referred to as a Crossing Guard. The Contractor is an independent Contractor and the Crossing Guards to be furnished by it shall at all times be its employees and not those of the City. 2. If, at any time during the contract period, the City questions the meaning of any item of this Agreement, the City may contact the Contractor for interpretation of that item. 3. The City shall have the right to dete1mine the hours and locations when and where Crossing Guards shall be furnished by the Contractor. The Contractor shall notify the City in writing of any changes which may need to occur in hours of work or locations. 4. The Contractor shall provide supervisory personnel to see that Crossing Guard activities are taking place at the required places and times, and in accordance with all items of this Agreement. 5. The Contractor shall maintain adequate reserve personnel to be able to furnish alternate Crossing Guards in the event that any person fails to report for work at the assigned time and location. 6. The Contractor shall provide personnel properly trained as herein specified for the performance of duties of Crossing Guards. In the performance of their duties the Contractor and employees of the Contractor shall conduct themselves in accordance with the conditions of this Agreement and the laws and codes of the State of California and the City of Huntington Beach. 7. Persons provided by the Contractor as Crossing Guards shall be trained in the laws and codes of the State of California and the City of Huntington Beach pertaining to general pedestrian safety and school crossing areas. 8. Crossing Guard Services shall be provided by the Contractor at the designated locations and at the designated hours on all days on which the designated schools in the City of Huntington Beach, are in session. 9. The Contractor shall provide all Crossing Guards with apparel by which they are readily visible and easily recognized as Crossing Guards. Such apparel shall be uniform for all persons performing the duties of Crossing Guards and shall be worn at all times while performing said duties. This apparel must be appropriate for weather conditions. The Contractor shall also provide all Crossing Guards with hand held Stop signs and any other safety equipment which may be necessary. 24-14561/340304 169 10. The Contractor shall conduct background investigation of all applications being considered for hire. Contractor shall provide investigative results to City's Police Department prior to employment of crossing guard. 11. Contractor will seek to retain its cmTent crossing guards employees. C. CITY'S DUTIES AND RESPONSIBILITIES: 1. The City will provide to the Contractor the locations of existing legally designated crossing guard locations. 2. The City will provide to the Contractor the locations and names of schools and events requiring the presence of crossing guards. 3. The City will provide to the Contractor timely notification of the addition or deletion of designated crossing locations. D. WORK PROGRAM/PROJECT SCHEDULE: 24-14561/340304 170 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: As a full service contractor, the hourly rate quoted is a fully loaded rate, meaning all of our costs are included in the proposed hourly billing rate. This would include but be not limited to; recruitment, background clearance, training, equipment, insurance, supervision and management of the City of Huntington Beach Crossing Guard Program. Hourly Rate 2024-25: Thirty-One Dollars and Fifty-Three cents ($31.53) per hour, per guard. Local field supervision and substitute guards are also included in the rate, as are all other costs except as noted below. Hourly Rate 2025-26: Thirty-Three Dollars and Eleven cents ($33.11) per hour, per guard. Hourly Rate 2026-27: Thirty-Four Dollars and Sixty-Five cents ($34.65) per hour, per guard. 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 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: 24-14561/340304 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. 171 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 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 CONSULT ANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 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. 24-14561/340304 172 A1LlL cc mr oo&NA(GJElWIB m §JEIBWTICCJE § "The Crossing Guard Company" A Proposal for City of Huntington Beach Request for Proposal Crossing Guard Services March 27, 2024 Presented by 10440 Pioneer Boulevard, Suite 5, Santa Fe Springs, CA 90670 OFFICE PHONE: 800.540.9290 FAX: 310.202.8325 El\1ERGENCY DISPATCH: 877.512.2267 www.thecrossingguardcompany.com 173 Table of Contents * 1. Vendor Application Form and Cover Letter Request for Proposal-Vendor Application Form Letter of Transmittal (1-2) 2. Background and Proiect Summary Section Scope of Services 3. Methodology Section Implementation Plan 4. Proiect Approach All City Management Organization Chart* Approach and Management Recruitment and Staffing Training 5. Staffing City of Huntington Beach Management Structure * City of Huntington Beach Field Management Personnel 6. Qualifications Qualifications and Experience References 7. Fee Proposal Fee Proposal 8. Exceptions Exceptions to Request for Proposal Page N um hers 1-2 3-4 5-6 7 8 9-10 11-12 13 14 15 16 17 18 19-21 *-index Table of Contents, tables, charts, graphic exhibits do not count towards page count. 174 ,, TYPE OF APPLICANT: REQUEST FOR PROPOSAL VENDOR APPLICATION FORM □NEW ~ CURRENT VENDOR Legal Contractual Name of Corporation : All City Management Services, Inc. Contact Person for Agreement: David Mecusker, Marketing & Contracts Manager Corporate Mailing Address: 10040 Pioneer Blvd., Suite 5 City, State and Zip Code: Santa Fe Springs, CA 90670 E M •i Addr david@thecrossingguardcompany.com -at ess: _________ _ Phone: 310 202 8284 Fax: 310 202 8325 Contact Person for Proposals: _D_a_v_i_d_M_e_c_u_s_k_e_r ___________ _ Title: Marketing & Contracts Manager Business Telephone: 310 202 8284 Year Business was Established : I 'f ~5 --=--=---- Is your business: (check one) E M ·1 Add david@thecrossingguardcompany.com -a1 ress: _______ _ Business Fax: 310 202 8325 0 NON PROFIT CORPORATION ~ FOR PROFIT CORPORATION Is your business: ( check one) ~ CORPORATION 0 INDIVIDUAL 0 PARTNERSHIP 0 LIMITED LIABILITY PARTNERSHIP 0 SOLE PROPRIETORSHIP 0 UNINCORPORATED ASSOCIATION I of2 175 Names & Titles of Corporate Board Members (Also list Names & Titles of persons with written authorization/resolution to sign contracts) Names Title Baron Farwell Owner /President Demetra Farwell Corporate Secretary Brian Brooks Chief Operating Officer Federal Tax Identification Number: 95-3971517 City of Huntington Beach Business License Number: Phone 310 202 8284 424 298 9307 913 731 8174 (If none, you must obtain a Huntington Beach Business License upon award of contract.) City of Huntington Beach Business License Expiration Date: 2 of2 176 AJL1L (CJTITI[ ™l&NACGIEIMDEffir §JEmWTICIE § March 22, 2024 City of Huntington Beach RFP: Crossing Guard Services 2000 Main St. Huntington Beach, CA 92648 : On behalf of All City Management Services, Inc. (ACMS), I would like to express our sincere appreciation for the potential opportunity to continue to serve the City of Huntington Beach Crossing Guard Services program. We are proud to have served the City of Huntington Beach for the last seventeen (17) years. We have received the Request for Proposal and have reviewed the Proposal Guidelines, Scope of Work, Terms and Conditions. We agree with the terms and conditions set forth with the exceptions to Scope of Work; Item #1 "LED lit Stop Paddle", Exhibit A (site locations and hours) and Appendix C -City of Huntington Beach Insurance Requirements; Professional Liability Insurance. Our program pricing will remain valid for 180 days. In the Scope of Work under item # 1 it requires the Crossing Guards utilize an "LED lit Stop Paddle" that will be provided by the contractor. It has been our experience that these commercial "LED lit Stop Paddles" are very expensive and can be problematic with its functionality. At times the toggle switch does not engage properly, and the lights do not go on, which may require these paddles to be replaced frequently. Additionally, if the sign were to malfunction it could potentially lead to liability issues or concerns. Please see our exceptions page included in our response for additional details. It is important to note that Exhibit A from the RFP has all locations compensated at 3.0 hours daily and this deviates from the current compensation model for the program. The City of Huntington Beach currently has sixteen (16) sites where the coverage times goes beyond 2.0 hours daily and to compensate 3.0 hours daily, would have these locations out of compliance with State of California Labor Laws pertaining to Split Shift Differential. ACMS would need to adjust the coverage times for these impacted locations, and this could potentially create additional liability risks by shortening the coverage schedule that is currently in place. In addition to the potential liability risks associated with shortening coverage times for locations that currently exceed 2.0 hours, is the impact of reducing the daily compensated hours for the program. This program currently provides 3.5 hours of daily compensation, by reducing the compensation to 3.0 hours daily, this would require all the guards in the City of Huntington Crossing Guard program to lose .5 hours of daily compensation. This may severely impact Crossing Guard retention and could lead to open/vacant sites, which in tum would increase the liability risk of an incident occurring at an unmanned/staffed location. We will provide program pricing that complies with the RFP requirements and would like the City to consider our "Exception Pricing" which would be based on the current program structure. Please see our Exceptions page included in our response for additional details. 10440 Pioneer Blvd. Ste 5 • Santa Fe Springs, Ca 90670 • 800-540-9290 • https://thecrossingguardcompany.com/ 3 177 Appendix C -City of Huntington Beach Insurance requirements list Professional Liability Insurance. This is non-standard for our industry and we would request this requirement be waived. Our goal is simple, to continue to relieve the City of Huntington Beach of the day-to-day responsibilities of the Crossing Guard Management Services Program. As your service provider, we will continue to assume complete responsibility for the day-to-day operations of the City of Huntington Beach Crossing Guard Services program. This includes recruitment, background clearance, hiring, training, equipment, payroll, supervision and management of the program. We will continue to maintain local supervision, alternate guards, a paging system and a 24-hour 800 number to ensure adequate response and immediate back-up for any Crossing Guard absent from duty for any reason. We also establish communication with each school to ensure proper scheduling. We have become the nation's largest provider of private crossing guard services as a result of our singular focus to this industry, as well as the development of benchmark training. This includes our "Employee Handbook for School Crossing Guards" which details our Job Requirements, the initial and ongoing Training we provide, including our Site Evaluations, our Rules of Conduct, Crossing Guard of the Year recognition and the Certification Requirements for all ACMS Crossing Guards. We are certainly excited about the possibility of providing Crossing Guard Management Services for the City of Huntington Beach. If you have any questions, please feel free to contact me at 800 540- 9290. Corp deme retary rossingguardcompany .com 10440 Pioneer Blvd. ~te 5 • Santa Fe Springs, Ca 90670 • 800-540-9290 • https://thecrossingguardcompany.com/ 4 178 ACMS Scope of Services 1. All City Management Services, Inc. will handle the Crossing Guard services for the City of Huntington Beach School Crossing Guard program for a three (3) year period; to commence on: the start of fall 2024 school semester, ending on the conclusion of the 2027 summer school session. 2. ACMS will provide thirty-one (31) personnel equipped and trained in appropriate procedures for crossing pedestrians in marked crosswalks. Such personnel shall be herein referred to as a Crossing Guard. ACMS is an independent Consultant and the Crossing Guards to be furnished by it shall at all times be its employees and not those of the City of Huntington Beach. 3. Crossing Guard Services shall be provided by ACMS at designated locations, identified by City of Huntington Beach. The City shall have the right to determine hours and ACMS shall provide coverage at the school crossings as required. ACMS shall be flexible and provide guards for the hours and locations needed on the instructions of appropriate City personnel. 4. ACMS and all persons who are employed for assignment to this contract shall undergo fingerprint background checks to ensure they have not been convicted of any offense involving moral turpitude, a felony for violent crimes or a felony for crimes against children. ACMS understands no one registered as a sex offender or narcotics offender will be hired as a crossing guard. 5. ACMS understands each Crossing Guard shall undergo a physical assessment to ensure they are physically able to perform the functions of the job. 6. ACMS designated Trainer will conduct training for Crossing Guards. ACMS shall provide personnel properly trained as herein specified for the performance of duties of Crossing Guards. In the performance of their duties ACMS and employees of the ACMS shall conduct themselves in accordance with the conditions of this Agreement and the laws and codes of the State of California pertaining to general pedestrian safety and school crossing areas. 7. ACMS understands all crossing guards shall also receive training pertaining to general traffic safety for pedestrians, motorist and themselves while serving as crossing guards. ACMS shall provide each Crossing Guard with "LED Blinkers" that will be attached to each Stop paddle, for each Crossing Guard in the City program. 5 179 8. ACMS employees shall work to the highest professional standards and act in a courteous, respectable manner and shall conduct themselves in a manner that is befitting a public servant. They shall present a professional appearance, that is neat, clean, well-groomed and be properly uniformed. 9. ACMS shall provide all Crossing Guards with apparel by which they are readily visible and easily recognized as Crossing Guards. Such apparel shall be uniform for all persons performing the duties of Crossing Guards and shall be worn at all times while performing said duties. 10. ACMS shall provide supervisory personnel to see that Crossing Guard activities are taking place at the required places and times, and in accordance with all items of this agreement. 11. ACMS shall maintain adequate reserve personnel to be able to furnish alternate Crossing Guards in the event that any person fails to report for work at the assigned time and location and agrees to provide immediate replacement. ACMS shall provide for its employees a 24-hour answering service and shall establish its own call-out procedures and this information shall be included in proposal. 6 180 City of Huntington Beach School Crossing Guard Program (Estimated) Implementation Schedule/ Major Milestones Contractor Notification (unofficial) City Council Approval Contract and Insurance complete (Final Terms agreed to) City of Huntington Beach Kick-Off Meeting (Huntington Beach Staff, ACMS Team) ACMS Training Review Meeting(s) with current crossing guards, substitutes (Assignments / schedules confirmed equipment delivered to guards) School designees re-contacted and Monthly Status Meetings agreed to Additional Training/Equipment needs delivered Guards re-contacted for assignment readiness Guards on site / Area Supervisors in field for Huntington Beach City School District 60 Day Review City Huntington Beach I ACMS Team (next Review Meeting scheduled) Week of Apr. 22nd Week of May 6th Week of May 20th May 27th Week of Aug. 13 th Week of Aug. 13 th Week of Aug. 20th Aug. 27th Sept. 3rd Nov. 3rd The timetable listed above is a projection of when we believe the next steps in this process will take place. ACMS will remain flexible and adjust this schedule as needed to fit the needs of the City of Huntington Beach School Crossing Guard program. 7 18 1 AJUL CCJ11Tif ~A<GJIEIMIIENil §IEffiWITCCIB§ Comptroller John Varner Payroll/ Accounting Managers Payroll Specialists / Accounting Specialists Expense Management Accounts Payable Client Satisfaction I I l l [ ( Owner Baron Farwell Chief Operations Officer Brian Brooks V.P. of Operations Patricia Pohl National Operations I Manager Operations Mangers Area Supervisors l Crossing Guards I I Director of Marketing Harlan Sims Marketing Manager I Marketing Assistants I Business Devel_opment/ I Contractmg r Client Satisfaction I I Client Satisfaction I Director, Admin Services D. Farwell L_ Admin. Man~ger I HR Coordinator I Vendor Relationships I Inventory I Insurance Client Satisfaction 8 182 Approach and Management Plan ACMS employs a Team Concept of management which results in efficient field operations as well as providing a multifaceted response to potential problems. The Vice President of Operations and National Operations Manager will continue to work together with input from The City Huntington Beach to establish specific program objectives and expectations. These Senior Managers then work directly with your Operations/Program Manager and Area Supervisor to implement the management plan. The Program Manager along with your local Area Supervisor has responsibility for the direct management of the Crossing Guards and together they will ensure the City's operational expectations are met. Standards and expectations are communicated to Crossing Guards personally by their local supervisor so as to allow the employee a better understanding of the decision-making process. This helps reduce confrontational attitudes by establishing and enhancing the common goal of providing for the safety of school children. Crossing Guard performance and compliance with safety standards will continue to be accomplished through regular site visits by .the local Area Supervisor and Program Manager. In addition to verbal training and counseling, these ·managers are supported by the use of Field Training Check Lists, Field Training Cards, Site Performance Evaluations, and independent Field Observations. Reports of satisfactory completion of all levels of training and ongoing safety reviews will be summarized and available to the· City representative. Background checks will be completed on all potential employees as allowed by California state law. Successful completion of the live-scan fingerprint based criminal background check, former employer reference check, and Security verification via E-V erify is required prior to the employee being hired. ACMS will comply within the Equal Employment Opportunity Commission guidelines when making hiring decisions based on criminal records. After pre hire screening ACMS may conduct random field testing for drugs and or alcohol when use is suspected or at the discretion of management. ACMS has a strict policy on Drug and Alcohol abuse. This policy is included in our School Crossing Guard Employee Manual. Internal minimum passing standards along with the City's established standards would prevent any person from working as a Crossing Guard for the program who has been convicted of any crime of moral turpitude or a crime against children, including, but not limited to: • Conduct in violation of California Penal Code or which requires registration under California Penal Code • Conduct which requires registration under the California Health and Safety Code. • Any offense involving the use of force or violence upon another person. 9 183 • Any offense involving theft, fraud, dishonesty, or deceit. • Any offense involving the manufacture, sales, possession, or use of a controlled substance. • Conspiracy or attempt to commit any of the aforementioned offenses. • Any registered sex offender or narcotics offender. ACMS will investigate all public complaints concerning crossing guard services. All incidents shall be reported to the City within two (2) hours to advise them of the nature of the complaint. ACMS shall furnish a written report within five (5) business days after the date of the incident, which includes the course of action/remedy/resolution of said complaint. Communications with individual school sites is facilitated by the Field Supervisor. Personal visits are made regularly (minimum quarterly) to each school site in an effort to develop relationships with staff and establish a collaborative environment for information exchange. Calendars and bell schedules are obtained for each school both at the beginning of the school year and periodically throughout the year. Key school personnel are supplied with appropriate contact information (business cards) and reminded to inform ACMS of any changes. Additionally, schools are provided with large magnets which can be easily displayed, making contact information effectively available to all staff. The email address of the Office Manager is also obtained which enables ACMS administrative support staff to regularly contact each school and proactively solicit information regarding potential schedule changes. The establishment of accurate and responsive shift times is critical to the effectiveness of Crossing Guard services. Sites further from the school would be expected to start earlier in the morning and finish later in the afternoon. These staggered shifts effectively address the time it takes for students to walk from a remote location to the school site ( or vice versa in the afternoon) and optimize the protected periods. Additionally, locations are continually monitored for actual pedestrian traffic patterns enabling a better understanding of site needs and any potential deviation from established guidelines. ACMS Area Supervisors are in the field daily when crossings are covered by the guards, and they ensure all guards arrive on time and are ready for duties as scheduled. ACMS has developed a Crossing Guard "App" that is geo-fenced, which only allows guards to clock in once they are actually on site. This "App" will indicate when a crossing guard is on site and more importantly, allows ACMS to quickly identify when a guard is not on site. This "App" will allow ACMS to not only quickly determine where staffing efforts are needed most but will also improve our billing and invoicing accuracy. Our billing/invoicing is tied to our payroll and by having a more efficient process for timekeeping, should eliminate potential billing . . maccurac1es. 10 184 Recruitment and Staffing ACMS Managers would continue to assess the additional staffing needs of the program after meeting with your agency and again following our initial orientation and training meeting. We would then focus further recruitment efforts in the geographical areas where additional Crossing Guards will be needed. We have developed a comprehensive plan for recruitment of new Crossing Guards. As a part of our Staffing strategy we encourage a very aggressive recruitment program. We utilize soft advertising, local media advertising, targeted flyers, on-site solicitation, school flyers and employee referral bonuses as parts of our overall recruitment strategy. We often work closely with school districts in some of our recruitment drives. Our ability to effectively staff a Crossing Guard Program remains a fundamental benefit that ACMS brings to most Crossing Guard Programs. Staffing sites is one of the primary responsibilities of the Area Supervisors. They are trained to continuously recruit and train prospective Crossing Guards. New recruits are first processed and submitted to the Department of Justice for background clearance. Supervisors are also responsible for coordinating the staffing for all sites under their supervision. As part of our staffing strategy Area Supervisors aggressively enforce the following policies and procedures for Crossing Guards. ♦ Supervisors must maintain an adequate alternate or substitute guard roster. We encourage at least a 5 to 1 ratio of sites versus alternate guards ♦ We require any guard not reporting for duty to notify the Area Supervisor as early as possible utilizing our 24/7 Guard Hotline or directly notifying their Area Supervisor. Notifications less than 1 hour prior to shift starts are considered unexcused absences. ♦ Our employee policy is "No call, No show, No Job" Throughout our training we emphasize the importance of insuring the safety of children by our presence. As such, we cannot allow the children's safety to be compromised by failing to call or show for duty. Supervisor Teams -The Huntington Beach crossing guard program would continue to benefit from our presence in nearby cities such as: City of Newport Beach, City of Fountain Valley, and City of Costa Mesa. Area Supervisors are grouped together by their geographic location. These Teams meet every quarter and team members are encouraged to work together. This cooperative effort allows them to share alternate guards with each other. This has resulted in alternates guards getting more hours as· they are "shared" with other Supervisors. Consequently, we are able to retain a more stable group of alternate guards. 11 185 Employee Retention: To enhance employee satisfaction and support our retention efforts, ACMS reviews guards wage rates annually in an effort to continually remain competitive in the local labor market. If contractual and budget requirements allow; we plan to offer small wage increases annually based upon performance and tenure. We also provide publicized employee recognition through our Crossing Guard of the Year programs and Length of Service Awards. Additionally, we provide local Area Supervisors and small budget for employee socials. 12 186 Training Effective initial and ongoing training is essential in a profession dedicated to the safety of children. With over 38 years of experience and a commitment to working cooperatively with other public safety professionals, ACMS is recognized as an industry leader in the development and implementation of School Crossing Guard training and standards of excellence : The process begins during the first contact with a potential employee when our phone interview process outlines job expectations and our zero-tolerance policy for failure to report for a scheduled shift. Throughout the application process prospective employees are reminded about the critical nature of our assignments and the work ethic and integrity required of our employees. Once hired, the training process starts in the classroom where employees review sections of the "Employee Handbook/or School Crossing Guards". The process then moves to a field practicum where the trainer demonstrates proper procedures and allows the employee to practice correct techniques. The employee's progress is closely noted on the detailed steps outlined on the Field Training Check List to ensure the employees' field competence. This cross-modality approach not only exposes the employee to the necessary training components but also addresses the needs of the visual, auditory, and kinesthetic learner. While the classroom setting is expected to require approximately one hour and the field training approximately two hours, it's important to note that the low ratio of students to trainer allows for accurate assessments of the employees readiness to move forward. The new employee is typically assigned to alternate work and closely supervised during their early assignments. They benefit from their trainer completing a written assessment of their work which better allows them to understand their strengths and weakness and make improvements where necessary (the Site Performance Evaluation). Additionally, all new employees are required to carry and regularly refer to the Field Training Cards. This pocket- sized card (listing all steps for a safe cross) allows the employee to self-evaluate their performance prior to the time they have all steps of the procedures memorized. Throughout their employment, employees are subjected to the same Site Performance Evaluation as an ongoing training and assessment tool. These evaluations happen in both side- by-side sessions as well as unannounced observations without the knowledge of the employee. The standard issue equipment and clothing includes: • ANSI II compliant high-visibility retro-reflective vest marked with the required insignia of a Crossing Guard • MUTCD compliant 18" STOP/STOP paddle • Picture Identification Card with emergency contact information • Company-issued cap or visor with corporate logo • Whistle for emergency alert to vehicles and pedestrians • High-visibility ANSI II compliant wind-breaker jacket • Three (3) LED Blinkers (Blinking Light) 13 187 ALL <CJTI11f ~ACGrIEThffiENT §IEIIWilCCIE§ City of Huntington Beach Vice President of Operations Patricia Pohl 310 877 7045 cell pat@thecrossingguardcompany.com National Operations Manager Kim Brooks 913 333 2563 cell kim@thecrossingguardcompany.com Operations/Program Manager Robert Gerace 714 319 9765 cell rgerace@thecrossingguardcompany.com Area Supervisor Tawnee Kerns 562 335 1156 cell tawnee@thecrossingguardcompany.com 31 Crossing Guards 14 188 Field Management Personnel The most significant resources ACMS brings to any Crossing Guard program is the depth and scope of management provided by the years of experience brought by our operational management team. The community serviced by the City of Huntington Beach will benefit from a team concept which consists of Area Supervisor, Program Manager, National Operations Manager and Vice President of Operations. Each Member of our management team is available 24 hours a day via cellular telephone. The following is a brief synopsis of the respective duties of each. Area Supervisor (Tawnee Kerns): Tawnee will continue to serve as Area Supervisor she will handle all aspects of the daily supervision of the program of thirty-one (31) Crossing Guards and alternate pool. With support from the Program Manager, she will typically recruit, hire, train and provide personnel management for all the sites she oversees and interfaces with school staff as needed. In addition to communicating with the School staff, he is responsible for ensuring each employee receives the proper number of Site Performance Evaluations and completes the Certification mandates. Tawnee will be available by telephone on all occasions for discussion with staff and will be locally available for meetings in person upon 24-hour written or telephonic notice. Tawnee Kerns reports directly to the Program Manager. Program Manager (Robert Gerace): Robert will continue to serve as Program Manager and directly manage your Area Supervisor and provide training and support. He will also interface with the City representatives and School staff as needed. He will continue to assist in the hiring of the Area Supervisor and Crossing Guards as well as the development and implementation of training programs and certification standards. Robert has considerable experience as a Program Manager including programs in Santa Ana, Garden Grove, Fountain Valley, Escondido, and Costa Mesa. He will ensure compliance with Company standards and the City's expectations. Robert Gerace reports directly to the National Operations Manager. National Operations Manager (Kim Brooks): Kim has over 6 years in the industry providing field management and support for ACMS. She is responsible for the development and implementation of operational standards, training programs, safety instruction and compliance with all legal requirements and restrictions. Works directly with Vice President of Operations to ensure all program standards are being met. Kim has extensive experience implementing and managing comparable and larger programs. She is responsible for initial training and orientation for all new client programs. Kim Brooks reports directly to Vice President of Operations. Vice President of Operations (Pat Pohl): Pat has over 27 years of industry experience. She is responsible for overall contract compliance. Works with the National Operations Manager on the development of training programs and implementation of safety standards. Coordinates the flow of information between operations and administrative staff. 15 189 Statement of Qualifications All City Management Services, Inc. (ACMS) Serving over 310 cities, counties and school districts, we have successfully privatized and exclusively provided Crossing Guard services for over 38 years. ACMS currently employs over 8,500 Crossing Guards who are supported and managed by locally assigned Area Supervisors and second level management. We have experience managing small programs (19 or less), mid-sized programs (20 to 99) and large programs in excess of 100 Crossing Guards. While the size of our Company reflects our broad-based knowledge and success in the industry, we understand that each agency, school district and community we serve comes with their own set of specific requirements and challenges. Our understanding of the unique challenges presented by a crossing guard program; guard scheduling, geography, school locations and demographics, make us well qualified to continue to meet the unique needs of demands of the City of Huntington Beach program. Our management team . will continue to meet with the City of Huntington Beach personnel regularly to address needs and ensure all requirements are met. Understanding that unexpected absences and tardiness can impact the safety of children we are charged with protecting. ACMS ensures the response of our Management Team through our Emergency Dispatch Hotline (available to employees 24/7); providing assurance that we will have adequate advance notice of potential absences (both planned and unplanned) to respond effectively. Our ability to operate and manage the City of Huntington Beach Crossing Guard program is supported by our success as your current service provider and with programs in Southern California, as well as similar programs in Northern California and in 21 other states. Examples of the many clients we serve in Southern California include City of Newport Beach, City of Laguna Beach, City of Fountain Valley, City of Lake Forest, City of Santa Ana, City of Garden Grove, City of Fullerton, City of Cypress, City of Costa Mesa, City of La Palma, City of Buena Park, City of Solana Beach, Newport Mesa School District, Orange County Sheriffs and Los Angeles County Office of Education, among others. We are very proud to announce; ACMS performance standards and training procedures have been integrated into the model for California Safe Routes to School Crossing Guard Guidelines. Another defining component that distinguishes ACMS as the industry leader is our focus on providing School Crossing Guard services. This singular area of service enables all of our resources to be devoted to the development and delivery of programs that provide exceptionally high safety standards and client satisfaction. It should be noted that ACMS has never lost a client agency due to the level of service provided. 16 190 References of Work Performed Form (List 5 local agencies) Comany Name: All City Management Services, Inc. l. Name of Reference: _C_ity-=----o_f_S_a_n_ta_An __ a _________________ _ Address : 20 Civic Center Plaza, Santa Ana, CA 92701 Contact Name: Zdenek Kekula, Engineer Phone Number: 714 647 5606 Email: zkekula@santa-ana.org Dates of Business: Since 2005 ----------- Orange County Sheriffs Office 2. Name of Reference: ------------------------- Address: 550 N. Flower Street, Santa Ana, CA 92703 Contact Name: Brigitte Ludwig, Manager Phone Number: 714 647 1850 Email: bludwig@ocsheriff.gov Dates of Business: Since 2018 ----------- 3. Name of Reference: City of Garden Grove Address: P.O. Box 3070, Garden Grove, CA 92842 Contact Name: Courtney Cibosky, Analyst Phone Number: 714 741 5819 Email: courtneyc@ggcity.org Dates of Business: Since 1999 ----------- 4. Name of Reference : City of Newport Beach ------------------------- Address: 870 Santa Barbara Drive, Newport Beach, CA 92660 Contact Name: Jonathan Stafford, Director Phone Number: 949 344 3650 Email: j stafford@nbpd.org Dates of Business: Since 1998 ----------- 5. Name of Reference: City of Fountain Valley Address: 10200 Slater Avenue, Fountain Valley, CA 92708 Contact Name: Capt. Anthony Luce Phone Number: 714 593 4528 ----------- Email: anthony .luce@fountainvalley.org Dates of Business: Since 2022 ------------ 191 Requested Exception Narrative 1. Scope of Work; Item 1 -"LED lit Stop Paddle" Exception: If awarded, we request to provide L ED Blinkers that would be attached to the Stop Paddle ". The cost for commercial "LED lit lop Paddles " i upwards of $200. 00 per paddle and our experience with these paddles is that they can have functionality is ·ues. ACJvJS can provide a imilar le, el of ervice "' ith "LED Blinker "1ha1 are attached lo the top Paddle. The Blinker will pe1:form the amefunction a the "LED lit top Paddle ' without the sign~ficanl co 1 associated with it, which in turn allows A CM to provide a lower cost optionfor the City while performing the same function . We hope the City finds this reasonable and acceptable. 2. Exhibit A-Coverage Schedule at 3.0 hours daily, per location Exception: If awarded, we would request the City consider keeping the current compensation model in place at 3. 5 compensated hours per location. There are currently sixteen (16) locations that require guards to work more than 2. 0 hours per day and would require guards at these locations to be compensated more than 3. 0 hours per day. Additionally, th;s would reduce th e compensation for the guards in the ity program by .5 hour· per day. Thi · reduction in daily compensation could result in many guards lea, ing the program and could create s taffing challenges. Plea e see ow·proposed "Exception Pricing " on page 21 of our re pon eforpricing details. 3. Appendix C -Insurance Requirements; Professional Liability Insurance Exception: If awarded, we would request this insurance requirement to be waived This type of insurance is a non-standard for our in dus try and results in an unnecessary expense for the ity. Th; type of coverage i u ·ually required for true profe ional services uch as de ign , engineering architecture, construction, legal and medical. In an effort to obtain the requested insurance coverage we reached out to our insurance carrier for a quote, please see their feedback below. 19 192 "We have sent out an application for Professional Liability Insurance coverage to thirteen (I 3) different insurance companies to request a quote. Half of these insurance companies declined the request because they do not feel ACMS has professional liability exposure." Audra Powers, CIC, CRM Client Services Executive Team Leader CA Insurance License #QB50182 T: 949 544 8475 I F: 8858 452 7530 Audra.powers@mars hmma.com I MarshMMA.com We hope the City finds the request to remove this requirement reasonable and acceptable, as we have not been required to maintain this level of insurance coverage in the past contracts. For il1formational purposes we hen e in luded !he billing rates and to/Cl/ co f wUh Profe ional Liability below: • 2024/2025 -$42.41 billing rate (total cost $709,943) • 2025/2026 -$44.12 billing rate (total cost $738,569) • 2026/2027 -$45.84 billing rate (total cost $767,362) 20 193 AJLIL CCJTI11f ™1&NAGJETufilE Mr §IEfilWIT<C JE§ Proposed Hourly Rate Exception Pricing at 3.5 daily hours -Without Professional Liabili As a full service contractor, the hourly rate quoted is a fully loaded rate, meaning all of our costs are included in the proposed hourly billing rate. This would include but be not limited to; recruitment, background clearance, training, equipment, insurance, supervision and management of the City of Huntington Beach, CA Crossing Guard Program. Proposed Hourly Rate (2024/2025): Twenty-nine Dollars and Ninety-three Cents ($29.93) per hour, per guard. This pricing is based upon 31 crossing guards compensated an average of3.5 hours per day, for 180 school days annually. Local field supervision and substitute guards are also included in the rate, as are all other costs except as noted below. Based upon 19,530 hours, we project a Not to Exceed price of $584,533. Proposed Hourly Rate (2025/2026)-Thirty-one Dollars and Forty-three Cents ($31.43) per hour, per guard with a Not to Exceed price of $613,828. Proposed Hourly Rate (2026/2027) -Thirty-two Dollars and Eighty-nine Cents ($32.89) per hour, per guard with a Not to Exceed price of $642,342. Invoices for services are mailed every two weeks. Included with each invoice is a Work Summary, which details each site, each day and the hours worked at that site. City of Huntington Beach would only be billed for Crossing Guard services rendered on designated "school days" unless otherwise requested by the City. The hourly rate does not include additional safety equipment, crosswalk delineators, cones or safety devices. If the City should desire any such additional equipment the additional cost would be billed to the City. · ACMS Contact Information Business Address: 10440 Pioneer Blvd, Suite 5 Santa Fe Springs, CA 90670 Phone numbers: 310.202.8284 or 800.540.9290 Fax number: 310.202.8325 Website address: www.thecrossingguardcompany.com 24 Hour Emergency Dispatch: 877.363.2267 General Manager: Brian Brooks: Marketing Manager: David Mecusker: Contract Administrator: Claudia Than: Comptroller: John Varner brianb@thecrossingguardcompany.com david@thecrossingguardcompany.com cthan@thecrossingguardcompany.com jvarner@thecrossingguardcompany.com This pricing is valid for a period of 180 days. 21 194 Over thirty years of experience in providing communities with PROFESSIONAL SCHOOL CROSSING GUARD SERVICES AJ[JL ccm BNACGJifilMIIENJr §IEIBWITCCIE § REQUEST FOR PROPOSAL FOR CROSSING GUARD SERVICES POLICE DEPARTMENT CITY OF HUNTINGTON BEACH Released February 27, 202 195 CROSSING GUARD SERVICES REQUEST FOR PROPOSAL (RFP) 1. BACKGROUND The City of Huntington Beach is soliciting proposals from qualified firms to provide adult crossing guard services to aide primarily school children as they walk to and from school. The out-sourced crossing guard program will provide all services detailed in Section 3, Scope of Work, in the Request for Proposal. The City of Huntington Beach intends to award a contract for a minimum term of three (3) years. 2. SCHEDULE OF EVENTS This request for proposal will be governed by the following schedule: Release of RFP Deadline for Written Questions Responses to Questions Posted on Web Proposals are Due Proposal Evaluation Completed Approval of Contract )HEUXDU\ 7, 202 March 8, 202E\SP March , 202 0DUFK, 202 E\SP April , 0D\ . SCOPE OF WORK The selected contractor will be required to complete the following duties and responsibilities: CONTRACTOR’S DUTIES AND RESPONSIBILITIES: 1)The contractor will provide personnel equipped and trained in appropriate procedures for crossing pedestrians in marked crosswalks. Such personnel shall be herein referred to as a Crossing Guard. The Contractor is an independent Contractor and the Crossing Guards to be furnished by it shall at all times be its employees and not those of the City. Each Crossing Guard will utilize an LED lit “Stop” paddle supplied by the contractor and approved by the City. 2)If, at any time during the contract period, the City questions the meaning of any item of this Agreement, the City may contact the Contractor for interpretation of that item. 3)The City shall have the right to determine the hours and locations when and where Crossing Guards shall be furnished by the Contractor. The Contractor shall notify the City in writing of any changes which may need to occur in the hours of work or locations. 4)The Contractor shall provide supervisory personnel to see that Crossing Guard activities are taking place at the required placed and times, and in accordance with all items of this agreement. 5)The Contractor shall maintain adequate reserve personnel to be able to furnish alternate Crossing Guards in the event that any person fails to report for work at the assigned time and location.196 The Contractor shall provide personnel properly trained herein specified for the performance of duties of Crossing Guards. In the performance of their duties the Contractor and employees of the Contractor shall conduct themselves in accordance with the conditions of the Agreement and the laws and codes of the State of California and the City of Huntington Beach. It shall be the responsibility of the successful vendor to ensure that all persons employed as crossing guards receive and successfully complete proper training. The successful vendor may perform the training with its own staff or subcontract for certified training to meet this requirement. Formal training of all new or former crossing guards assigned to the city contract shall be conducted as per the standards and guidelines established by the California School Crossing Guard Training Guidelines, complied by the state of California Safe Routes To School Technical Assistance Resource Center (TARC), overseen by the California Department of Public Health (CDPH), and in partnership with the California Department of Transportation (CalTRANS). The guidelines reflect the California Manual on Uniform Control Devices (CAMUTCD) 201 edition. See ([KLELW %. Crossing Guard Services shall be provided by the Contractor at the designated locations and at the designated hours on all days on which designated schools in the City of Huntington Beach, are in session. The Contractor shall provide all Crossing Guards with apparel by which they are readily visible and easily recognized as Crossing Guards. Such apparel shall be uniform for all persons performing the duties of Crossing Guards and shall be worn at all times while performing said duties. This apparel must be appropriate for weather conditions. The Contractor shall also provide all Crossing Guards with handheld /('Stop signs and any otherequipment which may be necessary. The Contractor shall conduct background investigation of all applications being considered for hire. Contractor shall provide investigative results to City’s Police Department prior to employment of Crossing Guard. Contractor will seek to retain its current Crossing Guardemployees. 4. PROPOSAL FORMAT GUIDELINES Interested contractors are to provide the City of Huntington Beach with a thorough proposal using the following guidelines: Proposal should be typed and should contain no more than 20 typed pages using a 12-point font size, including transmittal letter and resumes of key people, but excluding Index/Table of Contents, tables, charts, and graphic exhibits. Each proposal will adhere to the following order and content of sections. Proposal should be straightforward, concise and provide “layman” explanations of technical terms that are used. Emphasis should be concentrated on conforming to the RFP instructions, responding to the RFP requirements, and on providing a complete and clear description of the offer. Proposals, which appear unrealistic in the terms of technical commitments, lack of technical competence or are indicative of failure to comprehend the complexity and risk of this contract, may be rejected. The following proposal sections are to be included in the bidder’s response: 197 A. Vendor Application Form and Cover Letter Complete Appendix A,“Request for Proposal-Vendor Application Form” and attach this form to the cover letter. A cover letter, not to exceed three pages in length, should summarize key elements of the proposal. An individual authorized to bind the consultant must sign the letter. The letter must stipulate that the proposal price will be valid for a period of at least 180 days. Indicate the address and telephone number of the contractor’s office located nearest to Huntington Beach, California and the office from which the project will be managed. B. Background and Project Summary Section The Background and Project Summary Section should describe your understanding of the City, the work to be done, and the objectives to be accomplished. Refer to Scope of Work of this RFP. C. Methodology Section Provide a detailed description of the approach and methodology to be used to accomplish the Scope of Work of this RFP. The Methodology Section should include: 1) An implementation plan that describes in detail (i) the methods, including controls by which your firm manages projects of the type sought by this RFP; (ii) methodology for soliciting and documenting views of internal and external stakeholders; (iii) and any other project management or implementation strategies or techniques that the respondent intends to employ in carrying out the work. 2) Detailed description of efforts your firm will undertake to achieve client satisfaction and to satisfy the requirements of the "Scope of Work" section. 3) Detailed project schedule, identifying all tasks and deliverables to be performed, durations for each task, and overall time of completion. 4) Detailed description of specific tasks you will require from City staff. Explain what the respective roles of City staff and your staff would be to complete the tasks specified in the Scope of Work. D. Staffing Provide a list of individual(s) who will be working on this project and indicate the functions that each will perform. Include a resume for each designated individual. Upon award and during the contract period, if the contractor chooses to assign different personnel to the project, the Contractor must submit their names and qualifications including information listed above to the City for approval before they begin work. E. Qualifications The information requested in this section should describe the qualifications of the firm, key staff and sub-contractors performing projects within the past five years that are similar in size and scope to demonstrate competence to perform these services. Information shall include: 1) Names of key staff that participated on named projects and their specific responsibilities with respect to this scope of work. 198 2)A summary of the your firm’s demonstrated capability, including length of time that your firm has provided the services being requested in this Request for Proposal. 3)Provide at least five local references( Appendix A) that received similar services from your firm. The City of Huntington Beach reserves the right to contact any of the organizations or individuals listed. Information provided shall include: i Client Name i Project Description i Project start and end dates i Client project manager name, telephone number, and e-mail address )Fee Proposal Proposed fees should reflect hourly rate for three (3) years.List of intersections are stated in Exhibit A. The following conditions apply: Charges for the time during travel arenormally not reimbursable and will only be paid if such time is actually used in performing services. Charges will be matched to an appropriate breakdown to time previously taken by in-house staff to perform tasks. Subject to agreement otherwise, Crossing Guard will be held to charging no fees on travel time to or from Huntington Beach. Secretarial time, billing time, and/or ther clerical charges are not billable. 5. PROCESS FOR SUBMITTING PROPOSALS i Content of Proposal The proposal must be submitted using the format as indicated in the proposal format guidelines. i Preparation of Proposal Each proposal shall be prepared simply and economically, avoiding the use of elaborate promotional material beyond those sufficient to provide a complete, accurate and reliable presentation. i Number of Proposals Submit one (1) PDF file format copy of your proposal in sufficient detail to allow thorough evaluation and comparative analysis. i Submission of Proposals Complete written proposals must be submitted electronically in PDF File format via Planetbids.com website no later than 4:00 p.m. (P.S.T) on 0DUFK. Proposals willnot be accepted after this deadline. Faxed or e-mailed proposals will not be accepted. 199 i Inquiries Questions about this RFP must be submitted on Planetbids no later than 4p.m.( PST) on March 8, 202. From the date that this RFP is issued until a firm is selected and the selection is announced, firms are not allowed to communicate for any reason with any City employee other than the contracting officer listed above regarding this RFP, except during the pre- proposal conference. Refer to the Schedule of Events of this RFP or the City webpage to determine if a pre-proposal conference has been scheduled. The City reserves the right to reject any proposal for violation of this provision. No questions other than written will be accepted, and no response other than written will be binding upon the City. i Conditions for Proposal Acceptance This RFP does not commit the City to award a contract or to pay any costs incurred for any services. The City, at its sole discretion, reserves the right to accept or reject any or all proposals received as a result of this RFP, to negotiate with any qualified source, or to cancel this RFP in part or in its entirety. All proposals will become the property of the City of Huntington Beach, USA. If any proprietary information is contained in the proposal, it should be clearly identified. 6. EVALUATION CRITERIA The City’s consultant evaluation and selection process is based upon Qualifications Based Selection (QBS) for professional services. The City of Huntington Beach may use some or all of the following criteria in its evaluation and comparison of proposals submitted. The criteria listed are not necessarily an all-inclusive list. The order in which they appear is not intended to indicate their relative importance: A. Compliance with RFP requirements RIWRWDOVFRUH B. Understanding of the project RIWRWDOVFRUH C.4XDOLILFDWLRQV DQG H[Serience RI )LUP NH\LQGLYLGXDOVDQGVXEFRQVXODWDQWV RIWRWDOVFRUH D. Educational background, work experience, and directly related Crossing Guard experiences RIWRWDOVFRUH E.&RVW3Uice RIWRWDOVFRUH F. References RIWRWDOVFRUH The City may also contact and evaluate the bidder’s and subcontractor’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 evaluation process. The evaluation committee shall not be obligated to accept the lowest priced proposal, but shall make an award in the best interests of the City. 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 proposal. The individual from your firm that will be directly responsible for carrying out the contract, if awarded, should be present at the oral interview. 200 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 RFP. 7. STANDARD TERMS AND CONDITIONS i Amendments The City reserves the right to amend this RFP prior to the proposal due date. All amendments and additional information will be posted to the Huntington Beach Procurement Registry, Huntington Beach - Official City Web Site - Business - Bids & RFP's; bidders should check this web page daily for new information. i Cost for Preparing Proposal The cost for developing the proposal is the sole responsibility of the bidder. All proposals submitted become the property of the City. i Contract Discussions Prior to award, the apparent successful firm may be required to enter into discussions with the City to resolve any contractual differences. These discussions are to be finalized and all exceptions resolved within one (1) week from notification. If no resolution is reached, the proposal may be rejected and discussions will be initiated with the second highest scoring firm. See $SSHQGL[ B for a sample agreement. i Confidentiality Requirements The staff members assigned to this project may be required to sign a departmental non- disclosure statement. Proposals are subject to the Freedom of Information Act. The City cannot protect proprietary data submitted in proposals. i Financial Information The City is concerned about bidders’ financial capability to perform, therefore, may ask you to provide sufficient data to allow for an evaluation of your firm’s financial capabilities. i Payment by Electronic Funds Transfer –EFT: The City requires that payment be made directly to the vendor’s bank account via an Electronic Fund Transfer (EFT) process. Banking information will need to be provided to the City via an Electronic Credit Authorization form. A City Representative will provide the Electronic Credit Authorization form upon intent to award. Vendor will receive an Electronic Remittance Advice with the payment details via email. It is solely the responsibility of the vendor to immediately notify the City of any change to their information related to payments. 201 i Insurance Requirements City Resolution 2008-63 requires that licensees, lessees, and vendors have an approved Certificate of Insurance (not a declaration or policy) on file with the City for the issuance of a permit or contract. Within ten (10) consecutive calendar days of award of contract, successful bidder must furnish the City with the Certificates of Insurance proving coverage as specified in Appendix C. Failure to furnish the required certificates within the time allowed will result in forfeiture of the Proposal Security. Please carefully review the Sample Agreement and Insurance Requirements before responding to the Request for Proposal 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 Proposal 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 Proposal. 202 EXHIBIT A 203 No. Intersection/School Hrs./Day Total School Days 1 Yorktown/Brigantine (Oka Elem.) 3 180 2 Bushard/Woodlawn (Oka Elem.) 3 180 3 Yorktown/Honeywood (Talbert Mid.) 3 180 412th/Main (Dwyer Mid.) 3 180 5.1 14th/Crest (Dwyer Mid.) 3 180 5.2 14th/Crest (Dwyer Mid.) 3 180 6Palm/15th (Dwyer Mid.) 3 180 717th/Palm (Dwyer Mid.) 3 180 8 Banning/Bushard (Eader Elem.) 3 180 9 Banning/Malibu (Eader Elem.) 3 180 10 Garfield/Saddleback (Seacliff Elem.) 3 180 11 Garfield/Colchester (Perry Elem.) 3 180 12 Indianapolis/Farnsworth (Peterson Elem.) 3 180 13 Bushard/Castlegate (Sowers Mid.) 3 180 14 Indianapolis/Alisa (Sowers Mid/Hawes Elem.) 3 180 15 Indianapolis/Titan (Sowers Mid/Hawes Elem.) 3 180 16.1 Indianapolis/Magnolia (Sowers Mid/Moffett Elem.) 3 180 16.2 Indianapolis/Magnolia (Sowers Mid/Moffett Elem.) 3 180 17 Newland/Norfolk (Sowers Mid/Moffett Elem.) 3 180 18 Edwards/Down (Circle View Elem.) 3 180 19 Heil/Redlands (College View Elem.) 3 180 20 Algonquin/Pearce (Harbour View Elem.) 3 180 21 Saybrook/Branford (Harbour View Elem.) 3 180 22 Slater/Geraldine (Lake View Elem.) 3 180 23 Slater/Cordoba (Mesa View Mid.)3180 24 Edwards/El Cortijo (Mesa View Mid.) 3 180 25 Heil/Trudy (Spring View Mid.) 3 180 26 Heil/Monroe (Westmont Elem.) 3 180 27 Heil/Newland (Westmont Elem.) 3 180 28 Edwards/Cornell (Schroeder Elem.) 3 180 29 Springdale/Croupier (Stacy Mid./Clegg Elem.) 3 180 204 EXHIBIT B 205 California School Crossing Guard TRAINING GUIDELINES May 2015 The Safe Routes to School Technical Assistance Resource Center is a program within California Active Communities, a joint unit of the University of California, San Francisco and the California Department of Public Health, funded through a Safe Routes to School Non-Infrastructure award from the California Department of Transportation (Caltrans). 206 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 1. Introduction 1 2. Elements of a School Crossing Guard Program 2 A. Identification of Where Crossing Guards are Needed 2 B. Administration 4 C. Other Considerations 9 3. California Crossing Guard Training 11 A. Online Training and Testing 11 B. Practical Training 11 C. Field Assessment 12 4. Introductory Information for Crossing Guards 13 5.Techniques Used for School Crossings 18 A. Traffic Scanning Procedure 18 B. Signaling to Drivers 18 C. Technique for Use of STOP Paddle 18 D. Use of Whistle for Warning 19 E. Signaling to Children to Begin Crossing 19 6. Crossing Procedures fora Variety of Situations 20 A. Procedures for Crosswalk Configurations on Two-Way Roadways 20 B. Crosswalks on Multi-Lane Streets 29 7. Resources 30 8.Acknowledgments 31 Appendix A: School Crossing Guard Assessment Tool 32 Appendix B: School Crossing Sample Job Description 33 TABLE OF CONTENTS 207 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL INTRODUCTION School Crossing Guards (Crossing Guards) are an important part of the community and serve a vital role in the lives of children who walk or bicycle to school. Crossing Guards help children safely cross the street at key locations and remind drivers of the presence of pedestrians. Training is an essential step to help ensure that Crossing Guards are performing properly. To improve the safety of California’s school-aged children, the California Safe Routes to School Technical Assistance Resource Center (TARC), overseen by the California Department of Public Health (CDPH) and in partnership with the California Department of Transportation (Caltrans), has compiled this document, the California School Crossing Guard Training Guidelines (Guidelines). Existing training tools from the Colorado Department of Transportation’s Crossing Guard Train-the-Trainer Program, the Florida Department of Transportation’s School Crossing Guard Training Program, and the National Center for Safe Routes to School’s School Crossing Guard Guidelines were considered in the development process. The Guidelines reflect the California Manual on Uniform Traffic Control Devices (CAMUTCD) 2014 edition. The Guidelines, though not mandated, provides consistent operating standards to assist Local School Crossing Guard Programs (Local Programs) in training existing and new Crossing Guards. Local Programs are encouraged to utilize the Guidelines to inform program practices and replace or supplement training procedures to promote safety among California’s children. 1 208 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 2.ELEMENTS OF A SCHOOL CROSSING GUARD PROGRAM This section covers where Crossing Guards are needed, an overview of Local Program Crossing Guard program administration, and other points to consider for Crossing Guards and their supervisors. 2a. Identification of Where Crossing Guards are Needed Many factors contribute to the need for a Crossing Guard. At a vehicular location, general guidance is provided by the CAMUTCD, but ultimately, local traffic engineering judgment and analysis are needed to determine when and where a Crossing Guard is needed. Available gaps in traffic (space and time between vehicles) are a primary factor in determining the need for a Crossing Guard. CAMUTCD Section 7D.02 states: Adult crossing guards may be used to provide gaps in traffic at school crossings where an engineering study has shown that adequate gaps need to be created (see Section 7A.03), and where authorized by law. Adult crossing guards may be assigned at designated school crossings to assist school pedestrians at specified hours when going to or from school. The following suggested policy for their assignment applies only to crossings. Guidance: An adult crossing guard should be considered when: A.Special situations make it necessary to assist elementary school pedestrians in crossing the street. B.A change in the school crossing location is being made, but prevailing conditions require school crossing supervision until the change is constructed and it is not reasonable to install another form of traffic control or technique for this period. CAMUTCD Section 7A.03 states: The frequency of gaps in the traffic stream that are sufficient for student crossing is different at each crossing location. When the delay between the occurrences of adequate gaps becomes excessive, students might become impatient and endanger themselves by attempting to cross the street during an inadequate gap. In these instances, the creation of sufficient gaps needs to be considered to accommodate the crossing demand. Additional factors such as those listed below may affect the need for a Crossing Guard and should be considered. 2 209 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL Age of Students Younger students have a harder time judging the safety of an intersection, as they have more difficulty determining the speed and distance of approaching vehicles. They may be more tempted to cross during an unsafe gap in traffic. Road Conditions The complexity of the crossing may warrant the need for a Crossing Guard. Wide streets with multiple lanes of traffic may require the use of more than one Crossing Guard. Sight Distance These conditions are measured from the student’s and driver’s perspectives and calculated using actual vehicle operating speeds. Temporary obstructions (such as parked cars or snow) may also be factors that affect sight from a student or driver’s perspective. Presence or Absence of Traffic Control Devices Existing traffic control devices may or may not be present. If no traffic control devices are present, it may be a more appropriate option to add them to improve conditions in a school crossing location rather than using of a Crossing Guard. Vehicle Speed Crossing of a higher speed roadway may require a Crossing Guard because children have a harder time judging necessary stopping distance than adults and may have a harder time identifying safe gaps in traffic. Volumes of Vehicular Traffic and Pedestrians Vehicular traffic volumes at intersections should be monitored, as should current and projected pedestrian demand based on school demographics. School Route Plan A school route plan is another way to identify which roadways should be considered for Crossing Guards. CAMUTCD Section 7A.01 offers the following guidance for establishing a school route plan: A school route plan for each school serving elementary to high school students should be prepared in order to develop uniformity in the use of school area traffic controls and to serve as the basis for a school traffic control plan for each school. The school route plan, developed in a systematic manner by the school, law enforcement, and traffic officials responsible for school pedestrian safety, should consist of a map showing streets, the school, existing traffic controls, established school walk routes, and established school crossings. 2.ELEMENTS OF A SCHOOL CROSSING GUARD PROGRAM 3 210 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL School Adjacent Land Use Proximity of a school to residential neighborhoods may increase the potential number of student pedestrians, more so than proximity to other land uses. Crash History All crashes along the roadways included on the school route plan should be reviewed and analyzed. Various attributes of these crashes (type, frequency, time of day, etc.) should be analyzed to determine their relevance to school safety and the need for Crossing Guards. 2b. Administration Local Programs A Local Program, as mentioned in the Guidelines, refers to the organization responsible for identifying locations where Crossing Guards are needed, hiring, training, and supervising Crossing Guards, providing uniforms and equipment to help Crossing Guards effectively perform their duties, and securing funds to manage the Local Program. Cities and counties may designate local law enforcement agencies, the governing board of any school district, or a county superintendent of schools to administer the Local Program. Local Programs should consider seeking input from community members such as school administration, teachers, local traffic engineers, law enforcement officers, and parents, to help bring information and expertise to the process and make the steps in setting up the Local Program simpler. California Crossing Guard Training The Guidelines are available at no-cost to Local Programs to promote standardized training to newly employed Crossing Guards as well as seasoned Crossing Guards. The goal is to help Crossing Guards learn how to perform their duties, foster safe crossing environments for school-aged children, understand their roles and responsibilities, learn about relevant laws and traffic regulations, and practice proper crossing techniques all in a standardized, convenient, and cost-effective way. There is no formal certification process issued from any one agency in the State of California. However, Local Programs are encouraged to utilize this document and the online training to assess, score, and qualify Crossing Guards. California Crossing Guard Training has three components: 1. Online Training and Testing; 2. Practical Training; and, 3. Field Assessment. More details on these components are covered in Section 3 of this document. 2.ELEMENTS OF A SCHOOL CROSSING GUARD PROGRAM 4 211 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 2.ELEMENTS OF A SCHOOL CROSSING GUARD PROGRAM Crossing Guard Trainers Who can train new or existing Crossing Guards on roles, responsibilities, protocols, and procedures is left to the discretion of the Local Programs. With that, it is recommended that a trainer be an experienced Crossing Guard or law enforcement officer. Additionally, the trainer should be familiar with this document and the supplemental training materials. CAMUTCD Section 7D.03 provides further guidance for trainers and training course: Adequate training should be provided in adult crossing guard responsibilities and authority. This function can usually be performed effectively by a law enforcement agency responsible for traffic control. Training programs should be designed to acquaint newly employed crossing guards with their specific duties, local traffic regulations, and crossing techniques. Training workshops may be used as a method of advising experienced employees of recent changes in existing traffic laws and program procedures. For example, crossing guards should be familiar with the California law which provides that any person who disregards any traffic signal or direction given by a non-student school crossing guard authorized by a law enforcement agency, any board of supervisors of a county or school district shall be guilty of an infraction and subject to the penalties of Section 42001 of the [California Vehicle Code] CVC (Section 2815). Crossing Guard Refresher Training Ongoing supervision and review of Crossing Guards should continue throughout the year. It is recommended that a refresher training course be completed once every two years. Refresher training should include: t Changes to agency or program protocols; t Overview of new and relevant traffic laws and regulations; t Changes to school crossing procedures; and, t Changes to protocol for reporting hazards and emergency situations. Refresher training may also include relevant topics specific to local communities (e.g., working with diverse populations, crossing children with special needs). The refresher training may be combined with end of the year awards or activities. The duration of refresher training courses is left to the discretion of Local Programs. Field assessment should occur prior to each new assignment. Field assessment will be covered in more detail in Section 3 of this document. 5 212 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL Prequalification of Crossing Guards Section 7D.03 of the CAMUTCD states that Crossing Guards should possess the following minimum qualifications: 1. Average intelligence; 2. Good physical condition, including sight, hearing, and ability to move and maneuver quickly in order to avoid danger from errant vehicles; 3. Ability to control a STOP paddle effectively to provide approaching road users with a clear, fully direct view of the paddle’s STOP message during the entire crossing movement; 4. Ability to communicate specific instructions clearly, firmly, and courteously; 5. Ability to recognize potentially dangerous traffic situations and warn and manage students in sufficient time to avoid injury; 6. Mental alertness; 7. Neat appearance; 8. Good character; 9. Dependability; and, 10. An overall sense of responsibility for the safety of students. Crossing Guard Uniform and Devices CAMUTCD Section 7D.04 provides the following standards for the uniform of Crossing Guards: Law enforcement officers performing school crossing supervision and adult crossing guards shall wear high-visibility retroreflective safety apparel labeled as ANSI 107-2004 standard performance for Class 2 as described in Section 6E.02. Figure 1. Example of retroflective safety apparel. 2.ELEMENTS OF A SCHOOL CROSSING GUARD PROGRAM 6 213 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL CAMUTCD Section 7D.05 provides the following for a STOP paddle: Adult crossing guards shall use a STOP paddle. The STOP paddle shall be the primary hand-signaling device. The STOP (R1-1) paddle shall be an octagonal shape. The background of the STOP face shall be red with at least 6-inch series upper-case white letters and border. The paddle shall be at least 18 inches in size and have the word message STOP on both sides. The paddle shall be retroreflectorized or illuminated when used during hours of darkness. Figure 2. Example of STOP paddle. The CAMUTCD allows for a 24 x 24 inch size of the STOP (C28A(CA) paddle to be used where greater emphasis is needed and speeds are 30 mph or more. Retroreflective traffic cones or in-crosswalk panels, as determined by each municipality, may be used to enhance the visibility of a crosswalk. Any signage in the school zone must comply with the CAMUTCD. See CAMUTCD Section 7B.12 (School Crossing Assembly) for guidance on the use of in-street signage. A whistle can be used as a warning device to alert a motorist who is unresponsive to the display of the STOP paddle. It is at the discretion of the Local Programs whether or not to use a whistle while conducting school crossing procedures. If the Local Program chooses to use a whistle while conducting crossing procedures, the whistle should remain in the Crossing Guard’s mouth as they step into the crosswalk to conduct crossing procedures. More on the use of a whistle is covered in Section 5. Training of Multiply Assigned, Reassigned, or Transferred Crossing Guards If a Crossing Guard is reassigned to a crosswalk other than the one at which she/he was trained to work, the supervisor should confirm that the Crossing Guard is aware of the new conditions and check that the Crossing Guard is able to perform all duties satisfactorily at the new location. Requirements for Substitute Crossing Guards A substitute Crossing Guard should have sufficient experience and be familiar with the crossing procedures appropriate for any school crossing to which she/he might be assigned. If a community service officer, traffic control officer, or other employee is to be available for substitute Crossing Guard duty, she/he should complete the same training as a regular Crossing Guard. 2.ELEMENTS OF A SCHOOL CROSSING GUARD PROGRAM 7 214 STOP California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 2.ELEMENTS OF A SCHOOL CROSSING GUARD PROGRAM School Crossing Guard Funding Consistent and sufficient funding is an important factor for maintaining school crossing guard programs. A stable funding source should be identified and secured by Local Programs. In California, there are a variety of methods available to fund school crossing guard programs. Local Programs can utilize cost- sharing approaches with law enforcement, school districts, or public works departments. Local Programs may also utilize fines and forfeitures in their local “Traffic Safety Fund” to compensate Crossing Guards who are not full-time members of the police department as described in California Vehicle Code (CVC) Section 42200: Of the total amount of fines and forfeitures received by a city under Section 1463 of the Penal Code that proportion which is represented by fines and forfeitures collected from any person charged with a misdemeanor under this code following arrest by an officer employed by a city, shall be paid into the treasury of the city and deposited in a special fund to be known as the “Traffic Safety Fund,” and shall be used exclusively for official traffic control devices, the maintenance thereof, equipment and supplies for traffic law enforcement and traffic accident prevention, and for the maintenance, improvement, or construction of public streets, bridges, and culverts within the city, but the fund shall not be used to pay the compensation of traffic or other police officers. The fund may be used to pay the compensation of school crossing guards who are not regular full-time members of the police department of the city. Liability and Risk Management Liability is an issue that all Local Programs must consider. Given the high profile nature of the position and the risk involved, it is important that all Crossing Guards receive training and the Local Programs address the issue of liability and risk management. Liability may arise for two reasons: (1) negligence by the school crossing guard, and (2) inadequacy or lack of training. If Crossing Guards are well trained and have an understanding of the importance of their roles and responsibilities, they are less likely to act in a negligent manner. Ensuring that agency policies and procedures are followed will help avoid injuries and negligence by Crossing Guards. In addition, Local Programs can reduce their liability risks by training Crossing Guards well and by putting systems in place that anticipate and avoid potential problems. Following a standard curriculum like the Guidelines will not only help avoid injuries, but also help protect agencies from liability claims. It is recommended that Crossing Guards fall under the auspice of their Local Programs, and have similar rights and responsibilities (e.g., insurance coverage) as other Local Program employees. 8 215 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 2.ELEMENTS OF A SCHOOL CROSSING GUARD PROGRAM 2c. Other Considerations Reporting Absences Unless excused, a Crossing Guard should be at her/ his station on time, properly attired, and neatly groomed. A policy should be in place whereby a Crossing Guard should notify her/his supervisor of a planned absence at least 24 hours in advance. If illness or another unexpected circumstance prevents her/ his timely appearance, a Crossing Guard should notify the supervisor as soon as possible and a process for obtaining a substitute should be in place. Personal Vehicle Parking If a Crossing Guard travels to her/his assigned crossing location in a personal vehicle, it should be parked only in an allowed location (e.g., not on a sidewalk, nor on the street in any location where signs prohibit parking at the time.) If parked on the street near a crossing, it should not block the Crossing Guard’s view of approaching vehicles. Standing While on Duty A Crossing Guard should not sit while on duty as this would reduce an approaching driver’s peripheral view of the Crossing Guard, or might suggest to drivers or arriving children that the Crossing Guard is not on duty. A Crossing Guard also needs to be ready to react quickly in case of an unexpected event. The visible presence of an alert Crossing Guard can also help to discourage unsafe behavior. Distractions and Unrelated Activities While on duty, a Crossing Guard should not eat, smoke, use other tobacco products, use e-cigarettes, or consume beverages. While in uniform, a Crossing Guard should not patronize liquor establishments. A Crossing Guard should not use a radio (other than a two-way radio for official communication), headphones or portable audio players, nor read books, magazines, newspapers, or other materials while on duty. Mobile communication devices may be used only in an emergency and never while attending to or crossing children. Chain of Command Any request by school personnel or others outside a Crossing Guard’s chain of command (e.g., to change her/his schedule or procedures) should be made through the Crossing Guard’s supervisor. Notice of Schedule Changes A policy should be in place whereby a Crossing Guard’s supervisor should notify a Crossing Guard of any school schedule change or special school function that would affect her/his work schedule. Emergency Response Plan If any emergency response plan has been adopted that involves a special procedure for a Local Program’s Crossing Guards, the Crossing Guards should be briefed on the procedure. A Local Program should have a plan for contacting on-duty Crossing Guards in case of an emergency. If the school has a school emergency plan, Crossing Guards should have a copy of this plan. 9 216 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL First Aid Local Programs are strongly encouraged to provide first aid and cardio pulmonary resuscitation (CPR) training to all Crossing Guards. Crossing Guards who have not received proper training should not provide first aid or CPR while on duty. All Crossing Guards should be prepared to take reasonable action to help an injured child or contact emergency responders. Incident Reporting It is recommended that Crossing Guards be familiar with the type of information necessary to complete an incident report (e.g., time, date, location, names of those involved, description of incident). Incident reports are typically used to report a crash or infraction that can endanger the lives of pedestrians. Crossing Guards are advised to carry a notebook and pen to write down a description of involved vehicles and/or individuals. Reporting Concerns Crossing Guards are encouraged to be on the lookout for any potential problems or areas of concern while on duty and be prepared to report them to the appropriate individuals or supervisors. A process should be in place to address any problems or concerns. Crossing Guards’ Interaction with Children Crossing Guards are representatives of the community, tasked with helping to create a safe environment for children while on duty. Crossing Guards should not physically touch students. Students should never be put into a Crossing Guard’s vehicle. Crossing Guards should never give gifts to students. Crossing Procedures for Inclement Weather Crossing Guards need to be particularly careful during inclement weather. Bad weather tends to make people hurry and pay less attention. In addition, visibility is reduced and stopping distances are increased as roads become slippery. When visibility is reduced, it is critical that Crossing Guards take extra precautions to be seen by motorists. High visibility vests should be worn outside of any jackets (unless the jacket itself is high visibility with retroreflective material). The Crossing Guard should ensure that she/he has the attention of motorists before crossing. Courtesy Crossing of Adult Pedestrians A Crossing Guard may conduct a crossing for an adult who requests it, but this service is secondary to the purpose of crossing student pedestrians and should not be allowed to interfere with this primary purpose. 2.ELEMENTS OF A SCHOOL CROSSING GUARD PROGRAM 10 217 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 3. CALIFORNIA CROSSING GUARD TRAINING The information contained in the Guidelines is intended to support Local Program administration and introduce additional training materials that will assist with teaching Crossing Guard candidates the proper procedures and techniques necessary to safely cross student pedestrians. The Crossing Guard training as outlined here is made up of three components: 1. Online Training and Testing; 2. Practical Training; and, 3. Field Assessment. Completion of each component is recommended to equip Crossing Guards with the skills and knowledge appropriate to the job. It is at the discretion of the Local Programs to determine appropriate placement of Crossing Guards upon completion of each part of the training. Upon completion of all training components, including field assessment, it is left to the discretion of Local Programs to determine Crossing Guards’ mastery of crossing policies and procedures before assignment to a school crossing location. Crossing Guard training can be used during the hiring of new Crossing Guards or during refresher training or reassignment of seasoned Crossing Guards. Training is recommended to occur during the first month of employment or reassignment to a new crossing location. 3a. Online Training and Testing Online training consists of four courses that discuss and instruct Crossing Guards on their roles, responsibilities, protocols, and procedures. Each online training course has an accompanying online test. Once the online training is completed, the Crossing Guard may be given time for questions and/or discussion with a Crossing Guard Trainer before the online test is completed. This can happen either one-on-one or in a group classroom setting. If classroom training is part of the process, classes should be taught by a Crossing Guard Trainer as defined in Section 2 of this document and should reinforce the techniques and lessons covered in the online trainings as well as any local issues. A minimum passing score of 80 percent must be achieved by a Crossing Guard candidate on each of the four online tests in order to move onto practical training. Access to the online tests is available at www.casaferoutestoschool.org/adult-crossing-guard- training/. 3b. Practical Training Practical training involves hands-on instruction from a Crossing Guard Trainer. This aspect involves role play and simulation to practice the techniques and procedures (e.g., how to create gaps for street crossing, safely crossing pedestrians, reporting hazards and/or emergency situations) used to safely and effectively cross student pedestrians. 11 218 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL Practical training should be conducted at a crosswalk or simulated crosswalk with no children present and should cover both signalized and unsignalized intersections. Participants should play all roles (student pedestrians, Crossing Guards, drivers) and practice proper crossing procedures using the STOP paddle, hand gestures, and the whistle. Practical training is designed to last approximately two to four hours depending on the number of Crossing Guard candidates involved. During this time, Crossing Guard candidates will observe proper crossing behaviors from the pedestrian, crossing guard, and motorist points of view. An indoor simulated school crossing location can be used if weather is not permitting. At the completion of the practical training, Crossing Guard candidates will participate in field assessment. 3c. Field Assessment Field assessment consists of observation, training, and guidance of a Crossing Guard candidate by a Crossing Guard Trainer while in the work environment. Crossing Guard candidates will perform crossing duties and procedures at school crossing locations where they may be assigned while having their performance evaluated by the Crossing Guard Trainer. During field assessment, Crossing Guard candidates should demonstrate understanding of proper crossing procedures and emergency protocols. Additional guidance and instruction may be provided during the field assessment and any unsafe practices should be noted and addressed. The duration of the initial field assessment is left to the discretion of Local Programs. The Crossing Guard Trainer can score the Crossing Guard candidate by using the California School Crossing Guard Field Assessment Tool available in Appendix A. It is recommended that prior to an assignment, each Crossing Guard candidate be briefed about what to expect at the crossing. A newly placed Crossing Guard should be observed by the Crossing Guard Trainer to ensure that the Crossing Guard has mastered crossing skills in the field. 3.CALIFORNIA CROSSING GUARD TRAINING 12 219 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 4.INTRODUCTORY INFORMATION FOR CROSSING GUARDS Common Traffic Hazards at Crosswalks Collisions between pedestrians and motor vehicles at intersections usually involve an unexpected violation of road rules by at least one of the parties (pedestrian or driver) and the subsequent failure of both parties to take adequate evasive action. Injury consequences are usually greater for pedestrians; therefore, pedestrians have to use defensible practices. Even when driver practice is poor, pedestrians who practice good crossing techniques can usually anticipate conflicts and avoid a collision. Pedestrian crashes of the “multiple-threat” type have resulted in serious injuries to children at uncontrolled crosswalks (marked crosswalks where there are no traffic controls or Crossing Guards). This scenario develops when a driver stops to let a pedestrian cross but a second driver fails to stop. The pedestrian enters the crosswalk in front of the stopped vehicle, which partially screens her or him from the view of the overtaking driver. The second driver erroneously assumes there is no reason to stop and begins to pass. Meanwhile the crossing pedestrian neglects to scan for approaching vehicles before proceeding past the stopped vehicle. The second driver and pedestrian collide. Inexperienced pedestrians sometimes assume that, if one driver stops for them at an uncontrolled crosswalk, others will too. Figure 3. Example of a “multiple-threat. The visible presence of Crossing Guards crossing children in a roadway tends to improve driver behavior, and Crossing Guards also deter improper crossings by children, such as darting into the roadway. Hazardous driver behaviors that may still occur at a guarded crosswalk include: tspeeding (when crosswalk use is not noticed); tright turn into crosswalk on green light; tentering crosswalk to make right turn on red light; and, tleft turn into crosswalk on green light. 13 This section covers common situations that Crossing Guards may encounter while on duty and background information, including relevant laws, that will assist them in understanding the scope of their responsibilities. 220 Sou roe : F e,d eral Hi gh w a.y Ai1 min istrati on California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL Drivers who have a green light must still follow the direction of a Crossing Guard. However, the impulse to “go” may prevent the driver from noticing the presence of a Crossing Guard. In this circumstance, it is especially important that the Crossing Guard carefully scan for vehicles upon a signal turning green. Understanding Children’s Needs to Master Safe Crossing Skills A Crossing Guard should actively reinforce safe street crossing practices. This includes coaching children to “look left, right, and left again” for any approaching vehicles and at a corner, to look over the shoulder for turning vehicles. Children have only partially acquired the knowledge, skills, and abilities that experienced pedestrians use. Children in traffic: t can be impulsive; t have limited peripheral vision and ability to locate relevant sound sources; t have poor ability to assess vehicular approach speeds and gaps in traffic; t are shorter and easily blocked from view by cars; t are likely to assume that if one driver stops for them, the coast is clear; and, t are likely to consider simply running across a road as a viable crossing strategy. Alerting Traffic and Indicating Pedestrian Crossing CAMUTCD Section 7D.05 describes operating procedures for Crossing Guards: Adult crossing guards shall not direct traffic in the usual law enforcement regulatory sense. In the control of traffic, they shall pick opportune times to create a sufficient gap in the traffic flow. At these times, they shall stand in the roadway to indicate that pedestrians are about to use or are using the crosswalk, and that all vehicular traffic must stop. Adult crossing guards shall use a STOP paddle. The STOP paddle shall be the primary hand-signaling device. Understanding Applicable Traffic Regulations The California Vehicle Code (CVC) includes rules that pertain to nonstudent crossing guards, right-of-way at crosswalks, and parking or stopping at or near crosswalks. Although drivers do not always comply with these rules, and Crossing Guards should not depend on them to do so, Crossing Guards should understand the legal basis that supports school crossings. CVC Section 2815 describes rules pertaining to nonstudent crossing guards: Any person who shall disregard any traffic signal or direction given by a nonstudent school crossing guard, appointed pursuant to Section 21100, or authorized by any city police department, any board of supervisors of a county, or the Department of the California Highway Patrol, when the guard is wearing the official insignia of such a school 4.INTRODUCTORY INFORMATION FOR CROSSING GUARDS 14 221 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL crossing guard, and when in the course of the guard's duties the guard is protecting any person in crossing a street or highway in the vicinity of a school or while returning thereafter to a place of safety, shall be guilty of an infraction and subject to the penalties provided in Section 42001.1. CVC Section 21950 describes rules pertaining to right-of-way at crosswalks: The driver of a vehicle shall yield the right-of-way to a pedestrian crossing the roadway within any marked crosswalk or within any unmarked crosswalk at an intersection, except as otherwise provided in this chapter. This section does not relieve a pedestrian from the duty of using due care for his or her safety. No pedestrian may suddenly leave a curb or other place of safety and walk or run into the path of a vehicle that is so close as to constitute an immediate hazard. No pedestrian may unnecessarily stop or delay traffic while in a marked or unmarked crosswalk. The driver of a vehicle approaching a pedestrian within any marked or unmarked crosswalk shall exercise all due care and shall reduce the speed of the vehicle or take any other action relating to the operation of the vehicle as necessary to safeguard the safety of the pedestrian. [This] does not relieve a driver of a vehicle from the duty of exercising due care for the safety of any pedestrian within any marked crosswalk or within any unmarked crosswalk at an intersection. CVC Section 21970 describes rules pertaining to blocking crosswalks: No person may stop a vehicle unnecessarily in a manner that causes the vehicle to block a marked or unmarked crosswalk or sidewalk. Understanding Traffic Signals at Crosswalks Crossing Guards should know the meaning of the following signs: Figure 4. Indicates that the pedestrian may “WALK” or start to cross by entering the roadway. Figure 5. A flashing upraised hand signal indicates to the pedestrian “DON’T WALK” or do not enter the roadway. 4.INTRODUCTORY INFORMATION FOR CROSSING GUARDS 15 222 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL Familiarity with School Area Signs and Pavement Markings A Crossing Guard should be familiar with the signs and pavement markings used at and on approaches to his/ her assigned crossing. These may include crosswalk markings, parking prohibition signs, stop signs, stop lines, pavement word markings for school areas, and school warning and speed zone signs. Figure 6. Examples of parking prohibition signs. Figure 7. Example of a stop sign. Figure 8. Red oval shows example of a stop line. A stop line is a solid white pavement marking line extending across approach lanes to indicate the point at which a vehicular stop is intended or required to be made. 4.INTRODUCTORY INFORMATION FOR CROSSING GUARDS 16 223 I I PARKIN G ANY n ME • NO PARK ING 2AM 11l 6AM ANY Tl ME mI BY PEBM IJ ... __ STOP California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 4.INTRODUCTORY INFORMATION FOR CROSSING GUARDS As described in the CAMUTCD, crosswalk markings near schools shall be yellow and school warning signs shall have a fluorescent yellow-green background with a black legend and border. Figure 9. Examples of school warning signs. Figure 10. Example of a pavement word marking for a school area without stop signs, traffic signals, or yield signs. 17 224 ES '1" "' 0 SCHOOL ® SPEED ~ ~ts ~OR WH[N CHILDREN ARC f'RC.SCHl ii 200 FT I ... o -------< ,. Ill California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 5.TECHNIQUES USED FOR SCHOOL CROSSINGS 5a. Traffic Scanning Procedure At an intersection, vehicles can approach a crosswalk from various directions. To gauge whether any approaching vehicles will have time to see her/him in the crosswalk and yield, a Crossing Guard uses the “traffic scanning procedure” for crossing a street. This procedure is: 1. Stop at the curb or edge of the street. 2. Look left, right, then left again for approaching vehicles. 3. If standing at an intersection, look forward and behind. Scan for any vehicles that might cross your path and look over the appropriate shoulder for any vehicles approaching from your rear that might turn across your path. 4. If the gap seems adequate, make a final search to the left before proceeding. Vehicles on the left are on the side nearest to you. 5. When crossing the street, continue to scan for approaching vehicles. 5b. Signaling to Drivers A Crossing Guard signals to drivers to alert them to their duty to stop for crosswalk users (the Crossing Guard and crossing children), not for purposes of directing traffic. While in the roadway, a Crossing Guard should never make any hand or head movement that might be interpreted by a driver as a signal to proceed. 5c. Technique for Use of STOP Paddle To alert vehicles on a two-way street to stop with a STOP paddle: 1. Hold the STOP paddle shoulder-high so that one side is displayed to vehicles approaching the crosswalk on the near side of the street and the other is displayed to vehicles approaching the crosswalk on the far side of the street. Your body should not block either view of the paddle. The two faces of the paddle should remain continuously visible to vehicles approaching on the respective sides. 2. The STOP paddle leads you into the crosswalk. Look directly at any drivers momentarily, turning your head as necessary. 18 This section describes crossing techniques that Crossing Guards will need to master in order to do their job safely and effectively. This section does not contain an exhaustive list of crossing techniques. 225 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 3. Continuing to hold the STOP paddle high, look directly at any drivers, turning your head as necessary, as you approach the middle of the street. 4. If a driver disregards the STOP paddle, blow your whistle as described in Section 5d. The STOP paddle should be kept raised while a Crossing Guard is in the roadway. A Crossing Guard should not switch the STOP paddle from one hand to the other or wave it about while in the roadway. 5d. Use of Whistle for Warning The whistle is a warning device and cautions in regard to warning signs. Excessive use can result in reduced effectiveness. The whistle should be in the Crossing Guard’s mouth when stepping into the crosswalk. If a driver fails to stop in response to the display of a STOP paddle, the response is to blow one long blast on the whistle to warn the driver while looking directly at her/him and continuing to display the STOP paddle to her/him with an extended arm. Whether to blow the whistle when stepping off the curb at a given location is at the discretion of the Local Program. The decision to use a whistle or not should be based on the traffic conditions and the safety of the Crossing Guard. Each crosswalk should be considered individually. 5e. Signaling to Children to Begin Crossing When a Crossing Guard has taken position and is ready to initiate signaling children to cross the street, the instruction to children to make their traffic searches and begin crossing is made verbally, without gestures. The verbal instruction should include the following: 1. Look to the left, right, and left again for vehicles approaching from either direction; and, 2. Begin and continue crossing the street. 5.TECHNIQUES USED FOR SCHOOL CROSSINGS 19 226 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 6.CROSSING PROCEDURES FOR A VARIETY OF SITUATIONS In every situation, a Crossing Guard uses the “traffic scanning procedure” for crossing a street (as described in Section 5) and encourages student pedestrians to follow these safety steps. To review, this procedure is: 1. Stop at the curb or edge of the street. 2. Look left, right, then left again for approaching vehicles. 3. If standing at an intersection, look forward and behind. Scan for any vehicles that might cross your path and look over the appropriate shoulder for any vehicles approaching from your rear that might turn across your path. 4. If the gap seems adequate, make a final search to the left before proceeding. Vehicles on the left are on the side nearest to you. 5. When crossing the street, continue to scan for approaching vehicles. 6a. Procedures for Crosswalk Configurations on Two-Way Roadways The following section describes the procedures for typical crossings at unsignalized crosswalks and signalized crosswalks. 20 This section describes common situations that a Crossing Guard may encounter while on duty. This section does not contain an exhaustive list of every possible situation. It is left to the discretion of the Local Program to ensure that each Crossing Guard is adequately trained and prepared to work her/his crossing location. (Note: All figures in this section were adapted from the Florida Department of Transportation’s School Crossing Guard Training Program). 227 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL Unsignalized Crosswalks 1. Curbside assembly Figure 11. Stand on curb or behind edge of roadway on the side of the street where students approach. Keep students at least one step back from the curb or roadway edge. If a yellow “stand-back” line is marked or taped on sidewalk, it should be at least three feet behind the curb. Instruct those arriving on a bicycle, scooter, or skateboard to dismount and walk the bicycle or scooter or carry the skateboard when crossing the street. 2. Select an opportune time Figure 12. As students collect, wait for an opportune time to create a sufficient gap in traffic. Make a final scan for vehicles before entering the roadway. Remind students to wait for your verbal direction before starting to cross the street. 6.CROSSING PROCEDURES FOR A VARIETY OF SITUATIONS 21 228 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 3. Enter crosswalk, stopping near-side approaching vehicles Figure 13. Raise and display the STOP paddle as you walk to the middle of the roadway. Make the hand signal to vehicles on continuing to hold your upraised palm as you walk to the middle of the roadway. 4. Stop far-side approaching vehicles Figure 14. As you approach the middle of the roadway, check that the STOP paddle is clearly visible to that approach as well. 6.CROSSING PROCEDURES FOR A VARIETY OF SITUATIONS 2222 229 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 5. Take position Figure 15. Stand in the middle of the street, just outside the crosswalk on the side closest to the approach with a greater apparent risk of traffic conflict (e.g., due to greater volume or higher typical speeds). Face that approach, continuing to display the STOP paddle to both approaches. Keep both arms extended horizontally to your sides. Make a final check that vehicles on both approaches have stopped. 6. Initiate crossing Figure 16. Turn your head toward the waiting students and make eye contact with them. When you are ready to initiate signaling students to cross the street, instruct students verbally and without gestures to look to the left, right, and left again for vehicles approaching from either direction and begin and continue crossing the street. 6.CROSSING PROCEDURES FOR A VARIETY OF SITUATIONS 23 230 Check left, right, left when crossing. t California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 7. Maintain your position Figure 17. As students cross behind you, do not allow any vehicle to cross the crosswalk until the last student of the released group has reached the opposite curb or roadway edge. 8. Return to the starting curb Figure 18. Remain alert for approaching vehicles and continue to display the STOP paddle until you have left the roadway. Do not lower your upraised hand to the near-side approach until you have left the roadway. 6. CROSSING PROCEDURES FOR A VARIETY OF SITUATIONS 24 231 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 6.CROSSING PROCEDURES FOR A VARIETY OF SITUATIONS Signalized Crosswalks In the case of a signalized crosswalk, a pedestrian pushbutton is ordinarily installed. 1. Curbside assembly Figure 19. Stand on curb or behind edge of roadway on the side of the street where students approach. Keep students at least one step back from the curb or roadway edge. If a yellow “stand-back” line is marked or taped on sidewalk, it should be at least three-feet behind the curb. Instruct those arriving on a bicycle, scooter, or skateboard to dismount and walk the bicycle or scooter or carry the skateboard when crossing the street. 2. Wait for walk indication Figure 20. As students collect, press the pedestrian pushbutton to activate the pedestrian walk signal. Remind students to wait for your signal before starting to cross the street. When a fresh walking person symbol (or “walk” message) is displayed (or when the appropriate green is illuminated if there is no pedestrian signal), make a final scan for vehicles. 25 232 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 6.CROSSING PROCEDURES FOR A VARIETY OF SITUATIONS 3. Enter crosswalk, stopping near-side approaching vehicles Figure 21. Raise and display the STOP paddle as you walk to the middle of the roadway. 4. Alert far-side approaching vehicles Figure 22. Walk toward the middle of the street, alerting vehicles on all approaches (including those that might make left or right turns into the crosswalk) by holding the STOP paddle high. 26 233 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 6.CROSSING PROCEDURES FOR A VARIETY OF SITUATIONS 5. Take position Figure 23. Stand in the middle of the street, just outside the crosswalk on the side closest to the intersection. Face vehicles on that side, continuing to display the STOP paddle to both approaches. Keep both arms extended horizontally to your sides. Make a final check that vehicles on both approaches have stopped. 6. Initiate crossing Figure 24. Turn your head toward the waiting students and make eye contact with them. When you are ready to initiate signaling students to cross the street, instruct students verbally and without gestures to look to the left, right, and left again vehicles approaching from either direction and begin and continue crossing the street. 27 234 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 7. Maintain your position Figure 25. As students cross behind you, do not allow any vehicle to cross the crosswalk until the last student of the released group has reached the opposite curb or roadway edge. 8. Return to the starting curb or roadway edge Figure 26. Remain alert for approaching vehicles and continue to display the STOP paddle until you have left the roadway. Do not lower your upraised hand to the near-side approach until you have left the roadway. 6.CROSSING PROCEDURES FOR A VARIETY OF SITUATIONS 28 235 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 6b. Crosswalks on Multi-Lane Streets At a signalized or unsignalized crosswalk that crosses four or more lanes (on an undivided or divided street), two Crossing Guards should be assigned, so that each can handle one side of the street. (One of the Crossing Guards should be designated lead Crossing Guard.) Crossing Guards stand at the edge of the crosswalk on the side closest to vehicles approaching their side and face that approach. Positions taken by both Crossing Guards to conduct a multi-lane crossing are indicated below in Figure 27: Figure 27. The lead Crossing Guard makes the final visual check and gives the verbal direction to students to look for approaching vehicles and directs them to proceed when the roadway is clear. Students cross in the crosswalk between the two Crossing Guards. 29 236 ES '1" "' 0 ... o --------< ,. Ill California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 7.RESOURCES 1. California Department of Transportation, Safe Routes to School Programs, www.dot.ca.gov/hq/LocalPrograms/saferoutes/ saferoutes.htm 2. California Manual on Uniform Traffic Control Devices 2014 edition, www.dot.ca.gov/hq/traffops/engineering/mutcd/pdf/ camutcd2014/CAMUTCD2014.pdf 3. California Safe Routes to School Technical Assistance Resource Center, www.casaferoutestoschool.org 4. California Vehicle Code 2013, www.dmv.ca.gov/pubs/vctop/vc/ vc.htm 5. Colorado Department of Transportation Crossing Guard Train- the-Trainer Program, www.coloradodot.info/programs/bikeped/ safe-routes/training/crossing-guard 6. Florida Department of Transportation School Crossing Guard Training Program, www.dot.state.fl.us/safety/2A-Programs/ SchoolCrossingGuard.shtm 7. National Center for Safe Routes to School Adult School Crossing Guard Guidelines, guide.saferoutesinfo.org/crossing_guard/ index.cfm 30 237 California School Crossing Guard Training Guidelines CALIFORNIA SAFE ROUTES TO SCHOOL 8.ACKNOWLEDGEMENTS The following people and organizations contributed to the development of this document: Barbara Alberson San Joaquin County Public Health Services Anna Borges California Department of Education Kendra Bridges California Active Communities, California Department of Public Health Lisa Cirill California Active Communities, California Department of Public Health Victoria Custodio California Active Communities, California Department of Public Health Dawn Foster California Department of Transportation Kristin Haukom California Active Communities, California Department of Public Health Patti Horsley California Active Communities, California Department of Public Health Sergeant Scott Loso California Highway Patrol Providance Nagy Florida Department of Transportation Emma Oldenberger AAA Northern California, Nevada, and Utah Marisela Pineda San Joaquin County Public Health Services Patricia Pohl All City Management Services, Inc Lisa Rawson California Active Communities, California Department of Public Health Officer Traci Rebiejo Livermore Police Department Marissa Robinson Colorado Department of Transportation Holly Sisneros California Pedestrian Safety (PedSafe) Program, California Department of Public Health Sara Zimmerman ChangeLabSolutions 31 238 APPENDIX A California School Crossing Guard Field Assessment Tool ___ 1st Field Assessment ___ 2nd Field Assessment ___ Other Crossing Guard Name: ____________________________________________________________________________ Employment Agency: _____________________________________________________________________________ Directions: For each task performed satisfactorily, place an “S” in the appropriate area. For each task performed unsatisfactorily, place a “U” in the appropriate area. Enter comments or notes to provide Crossing Guards additional feedback, particularly in “unsatisfactory” areas. Two observations are recommended, each lasting a minimum of 30 minutes at the Crossing Guard’s assigned crossing location during shift hours. If the Crossing Guard performs duties during the morning and afternoon shift, one observation should be conducted in the morning and the other during the afternoon. Crossing Guards who do not perform all tasks listed satisfactorily during the observational assessment will continue to receive field supervision by the Crossing Guard supervisor. Once they are observed performing safe and consistent crossing procedures, another observational assessment may be conducted. Performance Assessment Score (S/U)Practical Training Skills Assessment Areas Comments First Observation Second Observation 1. The Crossing Guard is wearing the appropriate uniform authorized by the Crossing Guard Local Program. 2. The Crossing Guard is utilizing the proper equipment (e.g., retroreflective vest, STOP paddle, whistle, gloves, etc.) as authorized by the Crossing Guard Local Program. 3. The Crossing Guard demonstrates understanding of school crossing signs, crosswalk markings, and traffic signals. 4. The Crossing Guard appears alert and attentive to potential hazards in or near the crossing location. 5. The Crossing Guard is attentive to the overall safety of crossing pedestrians and vehicular traffic. 6. The Crossing Guard is not engaging in any distracting behaviors (e.g., eating, drinking, using mobile devices, headphones, portable audio players, or reading books, magazines, newspapers, etc.). 7. The Crossing Guard is correctly positioned at the edge of the road, in front of student pedestrians, while performing curbside assembly. 8. The Crossing Guard makes sure student pedestrians remain on the sidewalk until they are told to cross. 9. The Crossing Guard properly positions herself or himself in the roadway for maximum vehicle visibility. 10. The Crossing Guard makes sure all oncoming vehicles have stopped before instructing student pedestrians to search for oncoming vehicles. 11. The Crossing Guard instructs student pedestrians to cross behind her/him. 12. The Crossing Guard remains in the intersection until all of the students have safely crossed the roadway. Crossing Location: First On-site Observation Date:Second On-site Observation Date: Time Observed:Time Observed: Trainer’s Signature:Trainer’s Signature: Printed Name:Printed Name: Additional Comments: 239 JOB DESCRIPTION Job Title: School Crossing Guard Agency: Police Department Reports To: Sergeant, Traffic Division Job Summary: A School Crossing Guard assists children to safely walk or bicycle to and from school when crossing public roadways and intersections. School Crossing Guard identifies gaps in traffic and leads children across the roadway or intersection. School Crossing Guard does not direct traffic. Job Scope: t Works under the School Crossing Guard Supervisor. tMust wear agency uniform and utilize high visibility vest and agency approved STOP paddle at all times while on duty. t Must demonstrate good judgment and follow instructions while providing for the safety of pedestrians. t Must successfully complete the California School Crossing Guard Training and participate in refresher training courses at least once every two years. Physical Requirements: t Must be able to lift and control a STOP paddle (weighing approximately five pounds) repeatedly. t Must be able to stand and walk for extended periods of time, often on uneven terrain. t Must be able to safely step on and off street curbs or roadway edges. t Must be able to work outside in seasonal weather conditions. t Must have good vision and hearing (e.g., clearly see and hear approaching vehicles, pedestrians, and traffic signals.) t Must be able to communicate instructions clearly in English. Other Requirements: t Must be at least 18 years of age. t Must be self-motivated and reliable. t Must be able to follow oral and written instructions. t Must be able to be courteous with the general public. tMust successfully complete the California School Crossing Guard Training and participate in annual refresher courses. t Must submit to and successfully complete Department of Justice (DOJ) fingerprinting and background check. Must also maintain DOJ clearance. t May be subject to drug and/or alcohol screening prior to and/or at random during employment. t Must notify supervisor immediately of any temporary or long term accommodations needed due to limitations and/or restrictions regarding physical or mental inability to perform duties of the job. This job description is not intended to be, and should not be construed to be, an all inclusive listing of responsibilities, skills, and/or working conditions affiliated with this position. While it is intended to reflect the position activities and requirements, the lead crossing guard agency reserves the right to modify, add, or remove duties and assign other duties as necessary. I have read and understand the Job Description and attest that I am able to perform the requirements of this position as outlined above. _______________________ ________________________ ________________ Signature Print Name Date APPENDIX B 240 APPENDIX A 241 1 of 2 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 Year Business was Established: ________________ 242 2 of 2 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: __________________________ 243 )$,4& 4&(!4 ) *"4&+# "=NL0c bG)0Uc 3 'G0c N5c%092S0M*0 -.T0YZ c NL^'+_c 'I0 c G'?Dc '`0WcN6cbW@M0WWc #=NL0c bG)0V c 4 'F0c N7c&1:2P0M*0 -/R0WWc NMa',]c 'F0c I'>E c ! ']0WcO8cbWAM0WWc (List 5 local agencies) Comany Name:____________________________________ "=NL0c bG)0Uc 1 'G0c N5c%092S0M*0 -.T0YZ c NL^'+_c 'I0 c G'?Dc '`0WcN6cbW@M0WWc "=NL0c bG)0Uc 5 'G0c N5c%092S0M*0 -.T0YZ c NL^'+_c 'I0 c G'?Dc '`0WcN6cbW@M0WWc "=NL0c bG)0Uc 2 'G0c N5c%092S0M*0 -.T0YZ c NL^'+_c 'I0 c G'?Dc '`0WcN6cbW@M0WWc 244 APPENDIX B 245 17-6145/170197/11/28/17/DO 1 SERVICE AGREEMENT 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 called “City,” and___________________, a California Limited Liability Company, hereinafter referred to as “Contractor.” Recitals A.The City desires to retain a Contractor having special skill and knowledge in the field of janitorial and porter services. B.Contractor represents that Contractor is able and willing to provide such services to the City. C.In undertaking the performance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such standards as may reasonably be expected from a comparable company or firm in the field. Contractor has been selected to perform these services pursuant to Huntington Beach Municipal Code Chapter 3.02. NOW, THEREFORE, it is agreed by City and Contractor as follows: 1.Scope of Services Contractor 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.” Contractor hereby designates ________________, 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 Contractor in the performance of this Agreement. 246 17-6145/170197/11/28/17/DO 2 3.Compensation a.City agrees to pay, and Contractor agrees to accept as total payment for its services, the rates and charges identified in Exhibit “B.” The total sum to be expended under this Agreement, shall not exceed ___________ ($______) per year for any one year during the term of this Agreement, with a _____ year aggregate total not to exceed amount of __________ ($_______). b.Payment by City shall be made within thirty (30) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. c.Contractor shall be paid pursuant to the terms of Exhibit “B.” 4.Term Time is of the essence of this Agreement. The services of Contractor are to commence _________, or as soon as practicable after the execution of this Agreement by City (the “Commencement Date”) and terminate ________, unless terminated earlier in accordance with the provisions of this Agreement. Contract may be extended for 2 additional one-year periods if mutually agreed to in writing by both parties. The time for performance of the tasks identified in Exhibit “A” are generally to be shown in Exhibit “A.” This schedule and Term may be amended to benefit the Project if mutually agreed to in writing by City and Contractor. In the event the Commencement Date precedes the Effective Date, Contractor shall be bound by all terms and conditions as provided herein. 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,” Contractor 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.Disposition of Plans, Estimates and Other Documents Contractor 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, date or programs, maps, memoranda, letters and other documents, shall belong to City, and Contractor 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. 247 17-6145/170197/11/28/17/DO 3 7. Hold Harmless Contractor 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, and consequential damage or liability of any kind or nature, however caused, including those resulting from death or injury to Contractor’s employees and damage to Contractor’s property, arising directly or indirectly out of the obligations or operations herein undertaken by Contractor, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractors, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, including but not limited to concurrent active or passive negligence, except where caused by the active negligence, sole negligence, or willful misconduct of the City. Contractor will conduct all defense at its sole cost and expense and City shall approve selection of Contractor’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 a limitation upon the amount of indemnification to be provided by Contractor. 8. Workers Compensation Insurance Pursuant to California Labor Code Section 1861, Contractor acknowledges awareness of Section 3700 et seq. of this Code, which requires every employer to be insured against liability for workers’ compensation; Contractor covenants that it will comply with such provisions prior to commencing performance of the work hereunder. Contractor shall obtain and furnish to City workers’ compensation and employer’s liability insurance in an amount of not less than the State statutory limits. Contractor shall require all subcontractors to provide such workers’ compensation and employer’s liability insurance for all of the subcontractors' employees. Contractor shall furnish to City a certificate of waiver of subrogation under the terms of the workers’ compensation and employer’s liability insurance and Contractor shall similarly require all subcontractors to waive subrogation. 9. General Liability Insurance In addition to the workers’ compensation and employer’s liability insurance and Contractor’s covenant to defend, hold harmless and indemnify City, Contractor shall obtain and furnish to City, a policy of general public liability insurance, including motor vehicle coverage covering the Project/Service. This policy shall indemnify Contractor, its officers, employees and agents while acting within the scope of their duties, against any and all claims arising out of or in connection with the Project/Service, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of One Million Dollars ($1,000,000) per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, 248 17-6145/170197/11/28/17/DO 4 the aggregate limit must be no less than One Million Dollars ($1,000,000) per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than One Million Dollars ($1,000,000) for this Project/Service. This policy shall name City, its officers, elected or appointed officials, employees, agents, and volunteers as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the Project/Service shall be deemed excess coverage and that Contractor’s insurance shall be primary. Under no circumstances shall said above-mentioned insurance contain a self- insured retention, or a “deductible” or any other similar form of limitation on the required coverage. 10. Automobile Liability Insurance Contractor shall obtain and furnish to City an automotive liability insurance policy covering the work performed by it hereunder. This policy shall provide coverage for Contractor’s automotive liability in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and a separate “Additional Insured Endorsement” page listing both the policy number and naming the “City of Huntington Beach, its officers, elected or appointed officials, employees, agents and volunteers” as additional insured on the endorsement. The above-mentioned insurance shall not contain a self-insured retention, “deductible” or any similar form of limitation on the required coverage except with the express written consent of City. 11. Certificate of Insurance Prior to commencing performance of the work hereunder, Contractor 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. 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. Contractor shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by City. This requirement for carrying the foregoing insurance coverage shall not derogate from Contractor’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. Contractor shall pay, in a prompt and timely manner, the premiums on the insurance hereinabove required. 249 17-6145/170197/11/28/17/DO 5 12.Independent Contractor Contractor 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. Contractor 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 Contractor 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. 13.Conflict of Interest Contractor covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 14.Termination This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Contractor shall be entitled to receive and the City shall pay Contractor compensation for all services performed by Contractor prior to receipt of such notice of termination, subject to the following conditions: a.As a condition of such payment, the Director may require Contractor to deliver to the City all work product completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Contractor consents the City’s use thereof for such purposes as the City deems appropriate. b.Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 15.Exclusivity and Amendment This Agreement represents the complete and exclusive statement between the City and Contractor, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Contractor. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Contractor or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 250 17-6145/170197/11/28/17/DO 6 16.Assignment Inasmuch as to this Agreement is intended to secure the specialized services of Contractor, Contractor may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City’s prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City’s ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Contractors retained by City. 17.City Employees and Officials Contractor 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. 18.Notices Any notices, certificates, or other communications hereunder shall be given either by personal delivery to Contractor’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 below. City and Contractor 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 U.S. certified mail-return receipt requested: To City: Contractor: City of Huntington Beach __________________ Attn: ______________ Attn: _________________ 2000 Main Street ___________________ Huntington Beach, CA 92648 ____________________ 19.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 transactions or event. 20.Modification No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 251 17-6145/170197/11/28/17/DO 7 21.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. 22.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 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. 23.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. 24.Immigration Contractor 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. 25.Legal Services Subcontracting Prohibited Contractor 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. Contractor understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for City; 252 17-6145/170197/11/28/17/DO 8 and City shall not be liable for payment of any legal services expenses incurred by Contractor. 26.Confidentiality Contractor recognizes that in the performance of its duties under this Agreement, it must conduct its activities in a manner designed to protect information of a sensitive nature from improper use or disclosure. Contractor warrants that it will use reasonable efforts consistent with practices customary in the facilities management industry in recruiting, training and supervising employees and in otherwise performing its duties hereunder in order to achieve this result. In the furtherance of this, Contractor agrees, at the request of the City, to require its employees to execute written undertakings to comply with the foregoing confidentiality provision. 27.Discrimination Contractor shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Contractor affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 28.Jurisdiction – Venue This Agreement and all questions relating to its validity, interpretation, performance, and enforcement shall be government and construed in accordance with the laws of the State of California. This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 29.Professional Licenses Contractor shall, through the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Huntington Beach and all other governmental agencies. Contractor shall notify the City immediately and in writing of her inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 253 17-6145/170197/11/28/17/DO 9 30.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 non-prevailing party. 31.Survival Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 32.Governing Law This Agreement shall be governed and construed in accordance with the laws of the State of California. 33.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. 34.Entirety (a)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 Agreement. (b)All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. 254 17-6145/170197/11/28/17/DO 10 35.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 Mayor. This Agreement shall expire when terminated as provided herein. CONTRACTOR CITY OF HUNTINGTON BEACH, a _____________________ municipal corporation of the State of _____________________, a California California limited liability corporation By:_______________________________ ______________________________ Mayor __________________________________ Print name ITS: (circle one) Chairman/President/ Vice President ______________________________ City Clerk AND By:_______________________________ INITIATED AND APPROVED: Print name ITS: (circle one) Secretary/Chief Financial Officer/Asst. Secretary-Treasurer ______________________________ Director of _____________ APPROVED AS TO FORM: ______________________________ City Attorney REVIEWED AND APPROVED: ______________________________ City Manager 255 APPENDIX C 256 HB Insurance Matrix_revised 4-7-16 (2).xlsx 1 of 4 Automobile Liability General Liability Professional Liability Property Insurance Workers' Comp Additional Insured Endorsements 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. 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. CITY OF HUNTINGTON BEACH INSURANCE REQUIREMENTS Note 2 - Workers' Compensation Exemption: If entity has no employees, a signed Declaration of Non-Employee Status form is required. 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. 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. Vendor Type Minimum Insurance Requirements 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. 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.) 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.) 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. 257 HB Insurance Matrix_revised 4-7-16 (2).xlsx 2 of 4 Automobile Liability General Liability Professional Liability Property Insurance Workers' Comp Additional Insured Endorsements 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. 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. Vendor Type Minimum Insurance Requirements 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. 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. 4) The reporting of circumstances or incidents that might give rise to future claims. 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. Claims made policies are acceptable if the policy further provides that: Minimum of $1,000,000 per occurrence and in the aggregate. Allows up to $10,000 deductible. 258 HB Insurance Matrix_revised 4-7-16 (2).xlsx 3 of 4 Automobile Liability General Liability Professional Liability Property Insurance Workers' Comp Additional Insured Endorsements 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. 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. Vendor Type Minimum Insurance Requirements 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. 259 HB Insurance Matrix_revised 4-7-16 (2).xlsx 4 of 4 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. 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. 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. 4) The reporting of circumstances or incidents that might give rise to future claims. Vendor Type Claims made policies are acceptable if the policy further provides that: Minimum of $1,000,000 per occurrence and in the aggregate. Allows up to $10,000 deductible. 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. 260 CITY OF HUNTINGTON BEACH POLICE DEPARTMENT 4.25.23 Crossing Guard RFP Weight Factor MT ME TT Total Scores Total Weighted Scores Rank MT ME TT 10 All City Management Services, Inc.5 4 4 13.00 130.00 2 50.00 40.00 40.00 Alltech Industries, Inc.5 4.5 3 12.50 125.00 3 50.00 45.00 30.00 Crossing Guard Services LLC 5 4.5 4 13.50 135.00 1 50.00 45.00 40.00 25 All City Management Services, Inc.5 4.7 5 14.70 367.50 1 125.00 117.50 125.00 Alltech Industries, Inc.4 4.5 3 11.50 287.50 3 100.00 112.50 75.00 Crossing Guard Services LLC 4 4 4 12.00 300.00 2 100.00 100.00 100.00 25 All City Management Services, Inc.5 5 5 15.00 375.00 1 125.00 125.00 125.00 Alltech Industries, Inc.4 4 3 11.00 275.00 3 100.00 100.00 75.00 Crossing Guard Services LLC 4 4 4 12.00 300.00 2 100.00 100.00 100.00 10 All City Management Services, Inc.5 5 5 15.00 150.00 1 50.00 50.00 50.00 Alltech Industries, Inc.4 4 3 11.00 110.00 3 40.00 40.00 30.00 Crossing Guard Services LLC 4 4.5 4 12.50 125.00 2 40.00 45.00 40.00 25 All City Management Services, Inc.3 4 4 11.00 275.00 3 75.00 100.00 100.00 Alltech Industries, Inc.3 4.5 4 11.50 287.50 1 75.00 112.50 100.00 Crossing Guard Services LLC 3 4.5 4 11.50 287.50 1 75.00 112.50 100.00 5 All City Management Services, Inc.5 5 5 15.00 75.00 1 25.00 25.00 25.00 Alltech Industries, Inc.4 5 4 4.00 20.00 3 20.00 25.00 20.00 Crossing Guard Services LLC 3 5 4 12.00 60.00 2 15.00 25.00 20.00 100 MT ME TT Total Scores Total Weighted Scores Rank All City Management Services, Inc.450.00 457.50 465.00 83.70 1,372.50 1 Alltech Industries, Inc.385.00 435.00 330.00 61.50 1,105.00 3 Crossing Guard Services LLC 380.00 427.50 400.00 73.50 1,207.50 2 Compliance with RFP Requirements Technical Approach-Understanding of Project-Methodology Qualifications and experience of Firm, key individuals and sub-consultants Education background, work experience, and directly related experience Cost/Price References 1 of 261 I I I I I I I I I I I I I I I I I I I I I I I I 1001486 132849.14 04-13-2022 INSR LTR TYPE OF INSURANCE ADD INSD SUB WVD POLICY NUMBER POLICY EFF (MM/DD/YYYY) POLICY EXP (MM/DD/YYYY)LIMITS COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO- JECT LOC OTHER: EACH OCCURRENCE $ DAMAGE TO RENTED PREMISES (Ea occurrence)$ MED EXP (Any one person)$ PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ PRODUCTS - COMP/OP AGG $ $ AUTOMOBILE LIABILITY ANY AUTO OWNED AUTOS ONLY SCHEDULED AUTOS HIRED AUTOS ONLY NON-OWNED AUTOS ONLY COMBINED SINGLE LIMIT (Ea accident)$ BODILY INJURY (Per person)$ BODILY INJURY (Per accident)$ PROPERTY DAMAGE (Per accident)$ $ UMBRELLA LIAB OCCUR EXCESS LIAB CLAIMS-MADE DED RETENTION $ EACH OCCURRENCE $ AGGREGATE $ $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below Y / N N / A PER STATUTE OTH- ER $ E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYEE $ E.L. DISEASE - POLICY LIMIT $ SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. CANCELLATION E-MAIL ADDRESS: CONTACT NAME: PHONE (A/C, No, Ext): FAX (A/C, No): INSURER(S) AFFORDING COVERAGE NAIC # INSURER A : INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : PRODUCER INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD AUTHORIZED REPRESENTATIVE Y Y Y 642 2191-B01-75B 08/01/2023 08/01/2024 1,000,000 1,000,000 1,000,000 marisela.marin.nfrv@statefarm.com Marisela Marin 310-330-8220 State Farm General Insurance Company 25151 FLORENCE HARRISON 227 S LA BREA AVE INGLEWOOD, CA 90301 ALL CITY MANAGMENT SERVICES, INC. 10441 PIONEER BLVD, STE 5 SANTA FE SPRINGS, CA 90670 01/29/2024 City of Huntington Beach 2000 Main St Huntington Beach, CA 92648 Completed by an authorized State Farm representative. If signature is required, please contact a State Farm agent. 262 ACORD® I ~ ------, State Farm I A ® ~ □ □ ~ ~ Fl □ □ X ~ X X f--X ~ H I I I I I □ I POLICY NUMBER: 642 2191-B01-75B COMMERCIAL AUTO LIABILITY CG 20 10 07 04 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED – OWNERS, LESSEES OR CONTRACTORS – SCHEDULED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL AUTO LIABILITY NONOWNED AUTO LIABILITY SCHEDULE A. Section II – Who Is An Insured is amended to B. With respect to the insurance afforded to these include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by: 1. Your acts or omissions; or 2. 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. Additional insureds, the following additional exclusions apply: This insurance does not apply to "bodily injury" or "property damage" occurring after: 1. All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or 2. That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. CG 20 10 07 04 © ISO Properties, Inc., 2004 Page 1 of 1 Name Of Additional Insured Person(s) Or Organization(s): Location(s) Of Covered Operations City of Huntington Beach, its officers, elected or appointed officials, employees, agents, and volunteers. ONGOING OPERATIONS Information required to complete this Schedule, if not shown above, will be shown in the Declarations. 263 Policy Number: 642 2191-B01-75B COMMERCIAL AUTO LIABILITY CA 04 44 10 13 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US (WAIVER OF SUBROGATION) This endorsement modifies insurance provided under the following: Business Automobile NONOWNED AUTO Named Insured: ALL CITY MANAGEMENT SERVICES Endorsement Effective Date: 08-01-2023 SCHEDULE Name(s) Of Person(s) Or Organization(s): City of Huntington Beach, its officers, elected or appointed officials, employees, agents, and volunteers. The Transfer Of Rights Of Recovery Against Others To Us condition does not apply to the Person(s) or organization(s) shown in the Schedule ,but only to the extent that subrogation is waived prior To the “accident” or the “loss” under a contract with that person or organization. CA 04 44 10 13 Page 1 of 1 264 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:24-426 MEETING DATE:7/16/2024 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Eric G. Parra, Interim City Manager VIA:Travis K. Hopkins, Assistant City Manager PREPARED BY:Jane Chung, Assistant to the City Manager Subject: FY 2023-2027 Strategic Plan - Biannual Progress Update #2 Statement of Issue: Following City Council's adoption of the FY 2023-27 Strategic Plan on October 3, 2023, staff committed to providing biannual progress updates to City Council in January and July. Progress updates ensure transparency and accountability towards the timely completion of the Strategic Plan, while giving City Council regular opportunities to review and recommend amendments, as needed. This report provides the second progress update. Financial Impact: None Recommended Action: Receive and file the FY 2023-2027 Strategic Plan - Biannual Progress Update #2. Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis: From April to June 2023, the City Council and Executive Leadership Team underwent a comprehensive process to develop the FY 2023-2027 Strategic Plan (Plan). This process involved individual interviews with Council Members and Charter Officers, as well as workshops with the City Council and Department Heads to determine key priorities and projects for the next four fiscal years. The City Council adopted the Plan on October 3, 2023, through Resolution 2023-46. The Strategic Plan includes eight overarching goals to be achieved through 23 major strategies and 98 tasks. Staff also identified over 70 key performance indicators (KPIs) to measure the Plan's impact over time. City of Huntington Beach Printed on 7/10/2024Page 1 of 2 powered by Legistar™265 File #:24-426 MEETING DATE:7/16/2024 Staff has determined that the Plan is on track and successfully achieving its goals within the anticipated timeline. As of July 2024, the Plan is 41% complete, representing a 9% increase from the First Biannual Progress Update in January 2024. Moreover, an additional 43% of the Plan is currently in progress, with 14% upcoming, and 2% on hold. Detailed information is available in the updated Implementation Action Plan (Attachment 1) and a high-level summary in Attachment 2. Following tonight's meeting, all approved documents will be posted on the City's website at www.huntingtonbeachca.gov/strategicplan <http://www.huntingtonbeachca.gov/strategicplan>. Staff is also working on a public-facing dashboard to illustrate the KPIs associated with each Strategic Plan Goal, which will be made available on the City's website at a future date. Environmental Status: This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Strategic Plan Goal: Non Applicable - Administrative Item For details, visit www.huntingtonbeachca.gov/strategicplan <http://www.huntingtonbeachca.gov/strategicplan>. Attachment(s): 1. Biannual Program Update #2 (Implementation Action Plan) 2. Summary Presentation City of Huntington Beach Printed on 7/10/2024Page 2 of 2 powered by Legistar™266 267 Implementation Action Plan for the 2023-2027 Strategic Plan Progress Update #2 (July 2024) The Implementation Action Plan (IAP) is used by City staff to implement the 2023-2027 Strategic Plan goals, given various considerations such as resource availability (i.e., staffing, finances, and equipment). It is also used to track the progress of the Plan for greater transparency and community engagement. Each Goal in the IAP includes the following details to guide staff towards the orderly implementation and completion of all items in the Plan. However, the Plan and IAP are living documents that can be amended by the City Council to better meet the needs of the City, as priorities, resources, and conditions evolve over time. City Council also reviewed 18 other strategies and identified them as important but not as urgent or critical. Those Strategies or "Small Rocks" are ava il able on the original IAP published here . As priority Strategies are completed and free up City resources , City Council may consider working with staff to pick up one or more Small Rocks for future implementation, as higher priority strategies are completed, resources are made available, community needs evolve, and other factors present at that time. If the big rocks don't go in first. Big Rocks Highest priority strategk,s Small Aoc:lui Important or u rgent .strategies Sand N on~urgent mategit!s they aren't going to fit in later. All modifications to the IAP and progress updates will continue to be communicated to the City Council on a biannual basis {January and July), providing a forum to gather feedback that will be used to update and improve the Strategic Plan over the next four years. □ODD ~ 5. Progress Status and Completion % Indicates whether a Task is complete, in progress, upcoming or on hold, and the percentage completion rate. GOAL 1. ECONOMIC DEVELOPMENT Success Indicator: Greater business retention, investments and job growth in Huntington Beach. Start Date Due Date 2) Staff to develop a scope of work to prepare an updated Economic Development Strategy.◉ Completed 100%Q4/2023 Q4/2023 Task(s) completed as of the first biannual progress report. $0 Costs are mainly in staff time 3) Work with key industry stakeholders to solicit input during the development of the Strategy and prioritize further outreach as part of the strategy. ◉ Completed 100%Q4/2023 Q4/2023 Task(s) completed as of the first biannual progress report. $0 Costs are mainly in staff time 4) Present an updated Strategy to City Council for consideration and approval.↗ In Progress 80%Q4/2023 Q4/2024 Staff presented the updated strategy to the Economic Development Committee in Q2/2024; the updated strategy will be presented to City Council in Q4/2024. a) KPI no longer applicable KPIs to be determined following the adoption of the updated Economic Development Strategy $0 Costs are mainly in staff time Key Performance Indicators (KPIs) Community Development - Economic Development Manager Lead Department and Staff $0 Costs are mainly in staff time Estimated Total Project CostStrategiesProgress Status 100%Task(s) completed as of the first biannual progress report. A. Develop an updated economic development strategy to increase business retention, local investments, and job growth 1) Review 2017 Economic Development Strategy and 2020 Industry Cluster/ Workforce Analysis; conduct the Mayor’s Economic Development Summit on Oct. 13, 2023 to prepare scope of work for an updated Strategy. ◉ Completed Current StatusTimeline*** Q4/2023 Q4/2023 Completion % (estimate) Key Tasks and Deliverables (in chronological order) 268 Success Indicator: Available funding to support a high-quality level of programs, services, and capital investments and to build a structural surplus. Start Date Due Date 1) Update fee study (i.e., citywide fees and charges, EMS, and fines) and evaluate the feasibility of implementing updated fees. Includes cost of service fee study and cost allocation plan. ◉ Completed 100%Q3/2023 Q2/2024 City Council approved the updated Master Fee and Charges Schedule in Q2/2024. a) Structurally balanced budget (yes) b) Updated Master Fee Schedule (yes) Finance - Chief Financial Officer $87,700 One-time cost in FY23-24 2) Establish an ongoing program to increase grant application efforts and pursue federal/state funding.↗ In Progress 50%Q3/2023 Q3/2024 Staff is forming an interdepartmental working group to enhance citywide efforts in identifying and applying for funding for major City Council approved projects. a) Total valuation of grants/outside funds awarded to the City CMO - Council Policy Analyst $180,000 / year Budgeted in FY23- 24. Will be an ongoing expense. Also covers the cost for Goal 5.A.1- 2 5) Update developer impact fees in accordance with the Mitigation Fee Act; ensure fees are aligned with the impact of development on City services/stakeholders. ∆ On Hold 0%N/A N/A Staff will revisit this item in 2030 per State law. Community Development - Director On hold GOAL 2. FISCAL STABILITY Estimated Total Project Cost Completion % (estimate) Key Tasks and Deliverables (in chronological order) Lead Department and Staff Key Performance Indicators (KPIs) Q4/2023 Q4/2024 Q3/2024 Staff is currently in the process of establishing a centralized real estate program. Additionally, efforts are underway to identify a consultant for conducting an audit of city leases, with plans to commence the audit by the end of Q4. TBD $0 Costs are mainly in staff time This item will be incorporated into the updated Economic Development Strategy (Goal 1.A) and will include a list of industries to attract, promotional materials, and use of tools such as conferences and trade shows. Community Development and Public Works w/ inter- departmental support) Community Development - Econ. Dev. Manager KPIs to be determined following the development of the Real Estate Program. See Goal 1.A A. Consider new revenue sources and opportunities to support the City’s priority initiatives and projects ↗ In Progress 4) Develop formal policy for attracting and retaining high demand businesses ◉ Completed 3) Evaluate leases/concessionaires and adjust to market rate where applicable Strategies Progress Status Current StatusTimeline*** 25% 100% Q1/2024 269 Success Indicator: An engaged City workforce that is committed to responsive and exceptional public service for all and achieves a customer satisfaction rating of 90% or higher . Start Date Due Date 1) Finalize scope of effort (i.e., required departments, services, technology) and physical scope of work (i.e., counter layout, number of workstations, etc.); obtain quotes for tech needs. ↗ In Progress 80%Q2/2023 Q3/2024 Staff launched Streamline Surf City in Q3/2023 as a Citywide initiative to improve the development and permitting process. Streamline Surf City consists of 26 measures and programs aimed at improving various aspects of the development and permitting process to save costs as an alternative to a physical space. One of its components is the city’s online permitting system (ACA), which enables customers to apply for permits and plan checks, check project status, research permit records, and view a list of issued permits. $0 Costs are mainly in staff time 2) Procure design firm to prepare concept drawings and cost estimates for physical space ∆ On Hold 0%N/A N/A In Q1 2024, the staff created the Streamline Specialist program, which is a virtual One Stop Shop that helps businesses navigate the permitting process online. Dedicated staff members assist applicants by scheduling appointments and virtual sessions with permitting and plan check specialists from all development departments. a) Quarterly reporting of applicants successfully assisted in submitting for plan check, obtaining their permit, or obtaining their certificate of occupancy (NEW) On hold 3) Circle back with City Council to prioritize next steps, phasing plan, and financing plan ⌂ Upcoming 0%Q3/2024 Q3/2024 Staff will present to the City Council an update on Streamline Surf City, including the initial reporting results from the Streamline Specialist program in Q3/2024. $0 Costs are mainly in staff time 4) Implement phasing plan ⌂ Upcoming 0%Q4/2024 Q2/2025 Staff will implement the final initiatives as part of Streamline Surf City. a) Accela customer satisfaction survey rating TBD Following completion of Tasks 1-3 1) Complete recruitment for vacant director positions within 3 months of vacancy ◉ Completed 100%Q1/2023 Q2/2024 Recruitment for all vacant director positions was completed in Q2/2024. a) Recruitments complete (yes) $25,000 One-time cost in FY23-24 2) Implement Managed Hiring Process to identify and fill key vacancies ↗ In Progress 50%Q3/2023 Q2/2025 The Managed Hiring process is on track to meet its 2-year savings goals through Q2/2025. a) Savings on track for FY23-24 and FY24-25 (yes/no) $0 Costs are mainly in staff time 3) Identify efficiencies to aid departments whose vacancies cannot be filled immediately ↗ In Progress 50%Q2/2023 Q2/2026 Staff identified efficiencies for FY24-25 and will continue to do so for FY 25-26. a) KPI removed for future reconsideration $0 Costs are mainly in staff time 1) Review and implement a 12-month action plan by North Star ↗ In Progress 50%Q2/2023 Q4/2024 Staff is actively looking into using customer satisfaction surveys to evaluate the quality of service or interactions a) Customer service satisfaction rating b) KPI removed for future reconsideration $30,000 One-time cost in FY23-24 2) Kickoff a 10-session Dennis Snow Customer Service Virtual Training for 250 team members ◉ Completed 100%Q2/2023 Q4/2023 Task(s) completed as of the first biannual progress report. $6,500 One-time cost in FY23-24 budget 3) Create an internal customer service working group to identify customer issues and develop improvements ↗ In Progress 20%Q1/2024 Q4/2024 The staff is currently in discussions with different technology providers to identify potential products and costs. $0 Costs are mainly in staff time Progress Status Current Status Community Development - Director and Building Official City Manager’s Office - City Manager Timeline***Completion % (estimate) Key Performance Indicators (KPIs) City Manager’s Office - Assistant to the City Manager C. Implement the Public Service Excellence Initiative to invest in workforce development and promote exceptional customer service A. Establish a One Stop Shop to bring development services and other frequently used services under one location to create an improved and efficient customer service experience B. Fill department director vacancies and other key positions to lead and provide essential services to the community GOAL 3. HIGH PERFORMING ORGANIZATION Strategies Lead Department and Staff Estimated Total Project Cost Key Tasks and Deliverables (in chronological order) 270 Start Date Due Date 1) Convene a Council Ad Hoc Subcommittee to recommend structural changes as needed ◉ Completed 100%Q2/2023 Q3/2023 Task(s) completed as of the first biannual progress report. $0 Costs are mainly in staff time 2) Present recommendations to City Council and implement approved changes ◉ Completed 100%Q2/2023 Q3/2023 Task(s) completed as of the first biannual progress report.a) BCCs restructured (yes) $0 Costs are mainly in staff time 1) Identify required and optional training opportunities ◉ Completed 100%Q2/2023 Q3/2023 Task(s) completed as of the first biannual progress report. $0 Costs are mainly in staff time 2) Research available LMS providers, compare features, pricing and user reviews ↗ In Progress 50%Q2/2023 Q2/2025 Staff is assessing the current LMS, Target Solutions, as a no-cost training solution for staff. $0 Costs are mainly in staff time 3) Work with selected provider and IS to develop and implement LMS ◉ Completed 100%Q2/2024 Q4/2023 Task(s) completed as of the first biannual progress report. $0 Costs are mainly in staff time 4) Conduct citywide training and rollout ↗ In Progress 25%Q3/2024 Q2/2025 Staff continues to explore and expand the range of training topics offered to city employees. a) # of employee training programs offered b) # of attendees per training program (NEW) $0 Costs are mainly in staff time 1) Research performance evaluation system; select and develop new system ↗ In Progress 80%Q2/2022 Q2/2025 Staff will be meeting with Labor Associations to present changes to the city evaluation template. $0 Costs are mainly in staff time 2) Gather feedback and consensus from Leadership Teams, Managers and Labor Associations ↗ In Progress 50%Q1/2023 Q2/2025 Pending discussions with Labor Associations $0 Costs are mainly in staff time 3) Conduct rollout; provide citywide training for all supervisors and staff ⌂ Upcoming 0%Q2/2025 Q4/2025 Citywide rollout plan by department to be initiated; hands-on training for all supervisors and staff to be scheduled. a) % of staff trained in the new evaluation system b) % of usage of the new evaluation system $0 Costs are mainly in staff time 1) Issue an RFP and select a new TPA; coordinate the transfer of all relevant data to TPA ◉ Completed 100%Q4/2022 Q4/2023 Task(s) completed as of the first biannual progress report. $0 Costs are mainly in staff time 2) Introduce TPA to organization and rollout TPA services on an ongoing basis ◉ Completed 100%Q3/2023 Q4/2023 Task(s) completed as of the first biannual progress report. $0 Costs are mainly in staff time Human Resources - Director Human Resources - Director City Manager’s Office - Assistant City Manager Human Resources - Director Progress Status Current Status Timeline***Completion % (estimate) Key Performance Indicators (KPIs) F. Launch TrakStar, a web- based performance evaluation system for City employees that will help improve employee engagement and productivity G. Select a new third-party administrator (TPA) for workers’ compensation to manage City claims efficiently, reduce cost and create a safer workplace D. Restructure the City’s Boards, Commissions and Committees (BCC) to ensure the most efficient use of City resources while maintaining an effective level of civic engagement E. Explore new Learning Management Systems (LMS) to offer more comprehensive and innovative employee and public official training programs Strategies Lead Department and Staff Estimated Total Project Cost Key Tasks and Deliverables (in chronological order) 271 Success Indicator: A continuum of care that reduces homelessness and maintains quality of life for the entire community. Start Date Due Date 1) Develop the HB Cares model of volunteers to provide services to the homeless population ◉ Completed 100%Q1/2023 Ongoing Task(s) completed as of the first biannual progress report.a) # of volunteers enrolled and trained. b) # of volunteer hours (NEW) $0 Costs are mainly in staff time 2) Seek partnerships with faith and community-based organizations to provide direct services and support to prevent or reduce homelessness ◉ Completed 100%Q1/2023 Ongoing Task(s) completed as of the first biannual progress report.a) # of local faith and community based organizations partnering with the City $0 Costs are mainly in staff time 3) Collaborate with CalOptima as they release their street medicine program ◉ Completed 100%Q2/2023 Q4/2024 Task(s) completed as of the first biannual progress report. $0 Costs are mainly in staff time 1) Coordinate with Jamboree to develop and finalize the planned use and conceptual plans ↗ In Progress 60%Q3/2023 Q2/2024 City Council approved the extension to the existing Exclusive Negotiating Agreement on June 4, 2024. $0 Costs are mainly in staff time 2) Secure funding opportunities to develop site ↗ In Progress 25%Q1/2023 Q3/2027 Jamboree Housing has identified multiple funding sources. On June 4, 2024, the Huntington Beach Housing Authority authorized the Executive Director to approve Jamboree Housing’s submission of funding applications. Huntington Beach Housing Authority approval will be sought for the acceptance of any awarded funds. $0 Costs are mainly in staff time 3) Collaborate with partners, operators, and agencies to deliver services ↗ In Progress 5%Q1/2024 Q3/2027 Staff began discussions with potential service provider TBD Following completion of Tasks 1-2 4) Design and construct ↗ In Progress 50%Q3/2023 Q3/2027 On June 4, 2024, the Huntington Beach Housing Authority authorized an 18-month extension to the existing Exclusive Negotiations Agreement. a) Biennial Point-in-Time Homeless County b) # of clients housed through system of care TBD Following completion of Tasks 1-3 GOAL 4. HOMELESSNESS Strategies Progress Status Current StatusTimeline***Estimated Total Project Cost B. Feasibly transition the Navigation Center to include shelter and supportive housing. A. Explore options to collaborate with faith and community-based organizations, the City’s HB Cares Volunteer program, CalOptima, and others to provide social services in a cost- effective manner. Lead Department and Staff City Manager’s Office - Homeless Services Volunteer Coordinator and Manager Key Tasks and Deliverables (in chronological order) Completion % (estimate) Key Performance Indicators (KPIs) City Manager’s Office - Homeless Services Manager 272 Success Indicator: Proactive programs to address diverse housing needs within the City’s jurisdiction and control. Start Date Due Date 1) Create a Legislative Platform with legislative advocates and topical legislative analyses ◉ Completed 100%Q3/2023 Ongoing Staff prepared a platform based on feedback from the Intergovernmental Relations Committee. The platform was approved by council in Q1/2024. a) Platform complete (yes)Costs included in Goal 2.A.2. 2) Monitor proposed legislation for IRC’s consideration ◉ Completed 100%Q1/2023 Ongoing Task(s) completed as of the first biannual progress report.a) # of policy positions taken by City Council Costs included in Goal 2.A.2. 3) Participate in regional agency efforts related to housing policy - Southern California Association of Governments (SCAG), Orange County Council of Governments (OCCOG), etc. ◉ Completed 100%Q1/2023 Ongoing Task(s) completed as of the first biannual progress report. $0 Costs are mainly in staff time 4) Assist City Council Members on approved H-Items related to local control ◉ Completed 100%Q1/2023 Ongoing Task(s) completed as of the first biannual progress report. $0 Costs are mainly in staff time Key Performance Indicators (KPIs) A. Take action to maintain local control of land-use planning City Manager's Office - Council Policy Analyst Community Development - Director GOAL 5. HOUSING Strategies Progress Status Current Status Timeline***Lead Department and Staff Estimated Total Project Cost Completion % (estimate) Key Tasks and Deliverables (in chronological order) 273 Success Indicator: Maintained and upgraded infrastructure that supports the community’s day-to-day needs, in accordance with the City’s Infrastructure Report Card. Start Date Due Date 1) Hire design consultant to conduct community outreach & engagement ↗ In Progress 90%Q3/2023 Q3/2024 Staff is working with the consultant to develop the outreach plan. $200,000 One-time cost in FY23-24 2) Develop project budget, design, and environmental review.↗ In Progress 65%Q2/2024 Q3/2024 Staff is evaluating design concepts from the consultant. a) Complete design (yes/no) b) Complete planning (yes/no) b) Complete permitting (yes/no) Included in the cost above 3) Conduct a Measure C analysis, as needed ↗ In Progress 50%Q2/2024 Q4/2024 Pending final design concept a) Obtain project authorization via Measure C voter approval (yes/no) $200,000 One-time cost in FY24-25 4) BID project and request allocation of funding through CIP process, to include long term maintenance plan ⌂ Upcoming 0%Q1/2025 Q3/2025 Complete construction based on funding availability a) Complete BID package and funding request (yes/no) Costs included in Goal 2.A.2. 5) Complete project construction ⌂ Upcoming 0%Q3/2025 Q4/2027 Construction plan will be based on the completed phasing plan referenced in Goal 6.A.2 a) # of restrooms constructed (yes/no) b) Construction completed on time (yes/no) TBD following completion of Tasks 1-2 1) Conduct assessment and community input of acceptable event volumes by type ↗ In Progress 95% Q4/2023 Q4/2024 Responsible Hospitality Institute (RHI) completed the assessment and staff are reviewing their findings to determine next steps. $0 Costs are mainly in staff time 2) Evaluate Public Safety capacity and resources ◉ Completed 100%Q4/2023 Ongoing Ongoing efforts to supplement resources through Mutual Aid Agreements with neighboring agencies. $0 Costs are mainly in staff time 3) Conduct meetings with Specific Event Executive Committee to review Specific Event policies and procedures ↗ In Progress 50%Q4/2023 Q4/2024 Staff will present HBMC edits to SEEC in Q3/2024. Pending City Council approval in Q4/2024 a) Draft ordinances completed (yes/no) $0 Costs are mainly in staff time 4) Research and understand Measure C implications ↗ In Progress 25%Q4/2023 Q4/2026 Completed two rounds of community input. Will continue progress on community and stakeholder input beginning Q1/2025. a) Obtain authorization to present Measure C amendment for voter approval (yes/no) $30,000 One-time cost in FY23-24 $150,000 One-time cost in FY24-25 5) Explore feasibility of sole-source, long-term lease agreements for event providers ↗ In Progress 5%Q4/2023 Q4/2024 CLS will develop a feasibility analysis to include collaboration with other departments and external agency requirements. a) # of additional venues b) # of attendees c) # and type of specific events TBD 6) Complete Central Park and City-Wide Parks & Recreation Master Plans to identify potential venue locations ↗ In Progress 45%Q4/2023 Q3/2025 Staff anticipate presenting the City-Wide Parks & Recreation Master Plan by Q4/2024. A RFP for Central Park Master Plan will be released by Q4/2024. a) Completion of the Master Plans (yes/no)TBD Lead Department and Staff Public Works - Director Community & Library Services - Director B. Explore additional sports and concert venues to bolster tourism and provide world class amenities for community members A. Provide world-class beach facilities, including the renovation and expansion of 15 beach restrooms, new lighting improvements for Pier Plaza access, security and programming Progress Status Current StatusTimeline***Completion % (estimate) Key Tasks and Deliverables (in chronological order) GOAL 6. INFRASTRUCTURE INVESTMENT Strategies Estimated Total Project Cost Key Performance Indicators (KPIs) 274 Start Date Due Date 1) Release RFP and hire consultant to conduct the assessment ↗ In Progress 70%Q4/2023 Q2/2024 Staff is considering a 6-month Sourcewell Contract instead of issuing a RFP. TBD One-time cost in FY 24-25 2) Conduct inventory/assessment of City facilities ⌂ Upcoming 0%Q3/2024 Q3/2025 Included in the cost as above 3) Develop financing strategy for CIP implementation and long- term maintenance ⌂ Upcoming 0%Q2/2024 Q4/2025 TBD One-time cost in FY 25-26 4) Release final report to the public ⌂ Upcoming 0%Q3/2026 Q4/2026 a) % of facilities improved over the plan period $0 Costs are mainly in staff time 1) Conduct and adopt Water Master Plan ◉ Completed 100%Q3/2023 Q2/2024 City Council adopted the Water Master Plan on May 8, 2024. a) # of feet of water pipe replaced b) # of new wells constructed $283,300 One-time cost in FY 23-24 2) Conduct and adopt Sewer Master Plan ↗ In Progress 95%Q3/2023 Q2/2024 Sewer Master Plan to be presented to Public Works Commission in Q3/2024 a) # of feet of sewer pipe relined b) # of infrastructure repair projects completed $700,000 One-time cost in FY 23-24 3) Conduct and adopt Mobility Plan ↗ In Progress 95%Q2/2023 Q2/2024 Mobility Plan to be presented to Council in Q3/2024 a) Miles of bike lanes installed b) # of gap closure/safety improvements completed $323,000 One-time cost in FY 23-24 4) Conduct and Complete the Fleet Transition Plan ◉ Completed 100%Q4/2021 Q4/2023 Task(s) completed as of the first biannual progress report. a) # of clean air vehicles purchased annually b) # of EV charging ports installed for City Fleet (NEW) $100,000 One-time cost in FY 23-24 5) Conduct and adopt Fiber Master Plan ⌂ Upcoming 0%Q1/2024 Q3/2025 Pending discussions with Information Services Department a) # of feet/miles of fiber installed TBD One-time cost in FY 24-25 6) Conduct and Complete the Infrastructure Report Card ↗ In Progress 75%Q2/2023 Q3/2024 Final results are set to be released in Q3/2024. The staff is currently working on a cost assessment and funding strategy. KPIs to be determined following the adoption of the Infrastructure Report Card. $205,000 One-time cost in FY 23-24 Lead Department and Staff Public Works - Director Public Works - Director C. Conduct an assessment of all City facilities to determine priorities for upgrades and repairs, implementation and financial priority. D. Undertake major planning efforts including Fleet Capital Replacement Plan, Mobility Master Plan, Fiber Master Plan, and Infrastructure Report Card to adequately anticipate and prepare for future infrastructure needs Progress Status Current StatusTimeline***Completion % (estimate) Key Tasks and Deliverables (in chronological order)Strategies Estimated Total Project Cost Key Performance Indicators (KPIs) 275 Success Indicator: A community that has easy access to clear, accurate, and timely City information and expresses increased awareness and involvement in City activities. Start Date Due Date 1) Conduct research & develop cost/scope; issue request for expressions of interest from qualified firms ◉ Completed 100%Q3/2022 Q4/2022 Task(s) completed as of the first biannual progress report. $0 Costs are mainly in staff time 2) Issue an RFP for a contractor to build a robust, online communication system.↗ In Progress 25%Q2/2023 Q3/2024 Staff continues to meet with MyHB provider to identify additional features and options for expanding the usability and efficiency of current system $0 Costs are mainly in staff time 3) Begin development of a centralized platform for City info ⌂ Upcoming 0%Q3/2024 Q1/2026 Staff is determining the feasibility of implementing additional My HB Features. TBD One time cost across FY24-25 and FY25-26 4) Develop a policy for use and train City staff ⌂ Upcoming 0%Q1/2026 Q1/2026 Staff is determining the feasibility of implementing additional My HB Features. KPIs dependent on My HB deliverables. $0 Costs are mainly in staff time 5) Rollout comprehensive marketing strategy ⌂ Upcoming 0%Q2/2026 Q2/2026 Awaiting completion of Tasks 2-4.KPIs dependent on My HB deliverables. TBD One time cost in FY25-26 1) Issue an RFP to select a web developer ◉ Completed 100%Q3/2021 Q4/2021 Task(s) completed as of the first biannual progress report. $170,000 One-time cost in FY21-22 budget 2) Conduct site cleanup, site mapping, and design; site integration and content cleanup ◉ Completed 100%Q1/2022 Q1/2024 New City Website was launched on April 8, 2024. Site editors will conduct ongoing cleanup as part of continuous site management. $0 Costs are mainly in staff time 3) Rollout comprehensive marketing strategy ◉ Completed 100%Q4/2023 Q1/2024 Information was shared via press release, social media, email newsletter, and HB Sands. Additionally, a website feedback form is available for ongoing feedback. a) # of unique visits & engagement time on news page (NEW) b) # of unique visits & engagement time on events page (NEW) c) # of calls to call center (NEW) $10,000 One time cost in FY23-24 budget 4) Create policy for ongoing website management, user access, and content cleanup ↗ In Progress 50%Q1/2024 Ongoing Website access and editor trainings are complete. Staff is drafting proposed policy with the assistance of the Information Services Department. Website content cleanup is ongoing. a) % of applicable staff trained in new policy (yes/no) $0 Costs are mainly in staff time GOAL 7. PUBLIC ENGAGEMENT Strategies Lead Department and Staff Progress Status Current StatusTimeline***Estimated Total Project Cost Completion % (estimate) Key Tasks and Deliverables (in chronological order) City Manager’s Office - Public Affairs Manager Key Performance Indicators (KPIs) City Manager’s Office - Public Affairs Manager B. Redesign the City’s website to increase its versatility and enhance user experience with easy to access information A. Implement a robust online communication system to manage/track calls for services and provide one centralized location for community members to obtain all City information and services. 276 Start Date Due Date 1) Expand outreach through Town Halls, Coffee with the Mayor, and enhanced certificate/award program ◉ Completed 100%Q1/2023 Ongoing Task(s) completed as of the first biannual progress report.a) KPI no longer applicable. $5,000/year Budgeted in FY23- 24 2) Develop & produce new digital content – PSAs, Mayor’s Roundtable, Public Safety Awareness, etc. ◉ Completed 100%Q1/2023 Ongoing Task(s) completed as of the first biannual progress report.a) # of social media engagements and impressions (incl. Facebook, Instagram, YouTube) $50,000/year Budgeted in FY23- 24 3) Create & purchase outreach kit – to include tents, banners, tables, handouts, collateral ↗ In Progress 60%Q3/2023 Ongoing Staff is creating a ‘HB Promo Inventory’ with procedures to enable other departments to order promotional materials that are consistent with the City’s brand $10,000 annually 4) Collaborate with partners to identify more opportunities to engage with residents & businesses ↗ In Progress 40%Q3/2023 Ongoing Staff is currently developing a community stakeholder contact list and outreach channels. $0 Costs are mainly in staff time 5) Develop PIO committee from all Departments committed to developing effective citywide quarterly mailers and public feedback materials based on existing needs ⌂ Upcoming 0%Q3/2024 Ongoing Staff will identify PIO contact(s) for each City Department and develop a comprehensive list of programs, services, and activities for further promotion and engagement. $0 Costs are mainly in staff time 6) Create a consolidated citywide event calendar and policy for planning and implementing events ◉ Completed 100%Q1/2023 Q1/2023 Task(s) completed as of the first biannual progress report. $0 Costs are mainly in staff time 7) Launch Community Engagement Platform ↗ In Progress 20%Q4/2023 Q4/2024 Staff is rebranding based on comprehensive community feedback and surveying programs. The staff is currently in discussions with different technology providers to identify potential products and costs. $10,000 One time cost in FY24-25 budget 1) Buildout downstairs studio & update equipment ◉ Completed 100%Q2/2023 Q2/2024 Task(s) completed as of the first biannual progress report. $175,000 Using PEG funds restricted to use on public TV capital only 2) Hire HBTV Media Coordinator ↗ In Progress 70%Q2/2024 Q3/2024 Final stages of the recruitment process. Costs are mainly in staff time 3) Develop informative & varied content with purpose and reflective of Huntington Beach ↗ In Progress 80%Q1/2024 Q1/2025 Staff continues to collaborate with the Communications Committee and various departments to create original content.a) # of online videos created $420,000 Across four years 1) Hire Graphic Designer ◉ Completed 100%Q2/2023 Q4/2023 Task(s) completed as of the first biannual progress report. $0 Costs are mainly in staff time 2) Develop Citywide Branding Guide ◉ Completed 100%Q1/2023 Q1/2024 Task(s) completed as of the first biannual progress report. $0 Costs are mainly in staff time 3) Develop Citywide policy on public facing graphics/content ◉ Completed 100%Q2/2023 Q1/2024 Staff implemented a policy guide that provides guidance on how and when to display graphics. a) KPI no longer applicable. $0 Costs are mainly in staff time 4) Develop standardized templates and materials for citywide use ↗ In Progress 30%Q3/2023 Q1/2025 Staff is working on standardizing templates and materials, such as flyers, agendas, and presentations $0 Costs are mainly in staff time Strategies Lead Department and Staff Progress Status Current StatusTimeline***Estimated Total Project Cost Completion % (estimate) Key Tasks and Deliverables (in chronological order) City Manager’s Office - Public Affairs Manager City Manager’s Office - Public Affairs Manager Key Performance Indicators (KPIs) E. Hire a graphic designer to incorporate the City’s Branding Guide throughout the organization for greater consistency and appeal across all City visual content. City Manager’s Office - Public Affairs Manager C. Expand and enhance community outreach engagement opportunities through neighborhood town halls, direct mailers, and videos D. Enhance capacity of HBTV and produce relevant television content to expand the City’s public engagement reach across diverse audiences 277 Success Indicator: Ensure the safety and protection of all community members, both efficiently and effectively. Start Date Due Date 1) Lead a community wide comprehensive risk reduction strategy and culture to minimize incidents and optimize emergency response ↗ In Progress 50%Q3/2023 Q4/2026 Staff continues to develop and utilize comprehensive data analytics and mapping dashboards to inform staffing and operational decisions. Staff is also exploring a public saving dashboard. a) Form a work group with Police, Fire, IS, Public Works (Complete) b) # of monthly calls for service c) Form a quarterly work group with all Fire divisions to review staff risk reduction strategies (Complete) d) Receive the American Heart Association (AHA) Mission: Lifeline EMS Recognition for excellent pre- hospital heart attack care. (Complete) e) Meet FireScope Type Requirement (Complete) f) % of Lifeguards/Marine Safety Officers meeting US Lifesaving Assoc. requirements g) # of sidewalk CPR trainings conducted (NEW) $200,000 One time cost for FY25-26 2) Realignment of inspection assignments and frequencies to improve departmental efficiencies and customer service ◉ Completed 100%Q3/2022 Q4/2023 Task(s) completed as of the first biannual progress report. a) % of Life Safety and Fire Permit inspections completed b) % of State-mandated occupancy inspections completed $0 Costs are mainly in staff time 3) Implement Intern program ◉ Completed 100%Q4/2022 Q3/2023 Task(s) completed as of the first biannual progress report. a) # of youth enrolled in Fire Explorers program b) # of ambulance operators and lifeguards sponsored for fire academies and/or paramedic school $0 Costs are mainly in staff time 4) Cultivate a business centered customer service culture fostered on communication, consistency and transparency ↗ In Progress 50%Q1/2023 Q4/2024 Staff is using data analytics to be more proactive in CRR for improved customer-centered services a) Meet quarterly with the Chamber of Commerce, Downtown BID, and small business owners to discuss business/community feedback related to business, development, and customer service (yes/no) $0 Costs are mainly in staff time 5) Implement an emergency pre-plan program ↗ In Progress 50%Q3/2023 Q3/2024 Staff is working with Community Connect to develop the program with training scheduled for 2024. a) Yearly redefine target hazards using data and redefine response grid as needed (yes/no) b) % of suppression personnel trained on new emergency pre-plan program $0 Costs are mainly in staff time 6) Utilize analytics to implement targeted risk reduction campaigns designed to reduce emergency response ↗ In Progress 80%Q3/2022 Q3/2024 Staff continues to conduct beta tests campaigns for targeted risk reduction. Same KPIs as Task A.1 $0 Costs are mainly in staff time 7) Establish a full-time Fire Department community engagement coordinator ↗ In Progress 80%Q3/2023 Q3/2024 Staff determined that a limited-time Management Aide is better suited to serve as a community engagement coordinator. This position is included in the FY 24/25 budget and is funded by Opioid Funds. KPIs to be determined following the launch of the Opioid Settlement Spending Plan $0 Costs are mainly in staff time 8) Expand Junior Lifeguard Coordinators to full-time Integration of interdepartmental opioid prevention and community ↗ In Progress 10%Q3/2023 Q3/2024 Staff determined a limited-time Management Aide is better suited to serve as a community engagement coordinator. This position is included in the FY 24/25 budget and is funded by Opioid Funds. KPIs to be determined following the launch of the Opioid Settlement Spending Plan $0 Costs are mainly in staff time 9) Develop a Cyber Security Master Plan to secure the City’s networks and ensure continued operations, in emergency situations ↗ In Progress 10%Q4/2022 Q4/2027 Staff continues to conduct training, invest in upgrades, and explore measures to elevate the city's posture against Cyber Security threats. Additionally, efforts are underway to secure funding for a consultant to aid in the development of the Cybersecurity Master Plan. a) # of cyber security threats/attacks detected and prevented IS – Chief Information Officer TBD GOAL 8. PUBLIC SAFETY Strategies Lead Department and Staff Progress Status Current StatusTimeline***Completion % (estimate) Estimated Total Project Cost Key Tasks and Deliverables (in chronological order)Key Performance Indicators (KPIs) A. Community-wide comprehensive risk reduction program to optimize public safety’s emergency response and reduce the number of calls. Fire - Chief 278 Start Date Due Date 1) Prepare an IS Disaster Recovery Plan ⌂ Upcoming 0%Q1/2024 Q4/2026 Staff is working to secure funding for a consultant to help develop the IS Disaster Recovery Plan. a) # of phishing training emails issued (NEW) b) # of trainings to be developed and to be completed (min. 12/year) c) % of training completed IS – Chief Information Officer TBD 2) Update emergency preparedness plans and special events management plans via the Emergency Operations Center ↗ In Progress 90%Q3/2022 Q4/2024 City Council approved the updated Hazard Mitigation Plan in Q4/2022 and Emergency Operations Plan in Q3/2024. Emergency Response Plan Special Event Policy/AR is near completion. a) Update the emergency response plan and Hazard Mitigation Plan b) % of staffing matrix for special events finalized c) Maintain minimum number of Community Emergency Response Team and Radio Amateur Civil Emergency Services (RACES) volunteers (yes/no) Fire - EOC Manager $0 Costs are mainly in staff time 3) Identify funding for the real time crime center ↗ In Progress 25%Q4/2023 Q1/2028 The FY 24/25 budget includes funding for a supervisor. Staff will continue to explore additional funding for the Real Time Crime Center. KPI's to be determined following the launch of the Real Time Crime Center Police – Patrol Division Captain TBD 4) Develop the real time crime center ↗ In Progress 95%Q4/2023 Q4/2024 Development to be completed in Q4/2024. Police – Patrol Division Captain Budget incl. in a larger FY23-24 CIP project Key Performance Indicators (KPIs) B. Bolster City’s emergency management preparedness and response plans to ensure seamless public safety response during crisis events. Strategies Lead Department and Staff Progress Status Current StatusTimeline***Completion % (estimate) Estimated Total Project Cost Key Tasks and Deliverables (in chronological order) 279 July 16, 2024 City Manager’s Office Biannual Progress Update #2 280 t!ITY t,F UVNTINt>Tt,N BEA<:U Strategic Planning 2023-2027 TIMELINE October 3, 2023 City Council approved the FY 2023-2027 Strategic Plan January 16, 2024 First Biannual Update to City Council MOVING FORWARD Staff will present biannual progress updates in January and July to ensure: •Transparency and accountability •Alignment with current resources and policies •Regular opportunities for City Council to provide feedback and recommend amendments Background 2Strategic Plan Progress Update #2 281 OVERVIEW 2 Overarching Goals 8 Strategies 23 Tasks 98 Key Performance Indicators (KPIs) 73 Vision 1 “Committed to Responsive and Exceptional Public Service to All.” Strategic Plan Progress Update #2 3 282 , 0 :----.. x -~--"" .......... Strategic Plan Progress Update #2 4 Completed 41% In Progress43%Upcoming14% On Hold 2% Overall Progress as of June 2024 283 --------------------------------------------------------------------------- Strategic Plan Progress Update #2 5 Accomplishments Completed an updated Economic Development Strategy Completed 75%In Progress25% Upcoming Goal 1: Economic Development FY 24-25 Tasks Present updated Strategy to City Council in Fall 2024. KPIs New KPIs to be determined following the adoption of the updated Strategy --% 284 --------------------------------------------------------------------------- Strategic Plan Progress Update #2 6 Completed 40% Goal 2: Fiscal Stability Updated Master Fee and Charges Schedule Secured $9M in Grant/Outside Funding Establish a centralized Real Estate Program Form an interdepartmental working group to enhance citywide efforts on identifying and applying for external funding Total valuation of grants/outside funds awarded to the City Accomplishments FY 24-25 Tasks KPIs 40% 20% In Progress On Hold 285 --------------------------------------------------------------------------- Strategic Plan Progress Update #2 7 Completed 45%Upcoming12% Goal 3: High Performing Organization Launched Streamline Surf City Filled All Vacant Director Positions Present an update on Streamline Surf City to City Council Expand range of training topics offered to City staff Launch online performance evaluation system for City staff Customer satisfaction survey rating (Accela): Customer service satisfaction rating: Total # of employee training programs offered: Accomplishments FY 24-25 Tasks KPIs On Hold4% In Progress39% 286 --------------------------------------------------------------------------- Strategic Plan Progress Update #2 8 Goal 4: Homelessness Built a network of 20+ organizations to assist with needs and services 14 Housed Year to Date; 6 Exited to Permanent Housing Continue working with Jamboree Housing Corporation to develop the Pathways Project Reapply for the CalOptima Street Medicine Program Total # of HB Cares volunteers & hours Total # of clients housed through System of Care Total # of Be Well O.C. services rendered & hours Accomplishments FY 24-25 Tasks KPIs Completed 50%50% --% In Progress Upcoming 287 --------------------------------------------------------------------------- Strategic Plan Progress Update #2 9 Goal 5: Housing Created a Legislative Platform for the City Continue to monitor legislation related to local control of land-use planning Continue to participate in regional agency efforts related to housing policy Total # of policy positions related to Housing taken by the City Council Accomplishments FY 24-25 Tasks KPIs Completed 100%--% --% In Progress Upcoming 288 --------------------------------------------------------------------------- Strategic Plan Progress Update #2 10 Goal 6: Infrastructure Investment Completed the Water Master Plan and Fleet Transition Plan Hired a design consultant to assist with City efforts to renovate and improve beach facilities Present the City-Wide Parks & Recreation, Sewer, and Mobility Master Plans to the City Council Issue RFP for the Central Park Master Plan Total # of miles of bike lanes installed Total # of mobility safety improvements completed Accomplishments FY 24-25 Tasks KPIs Completed 13%54% 33% In Progress Upcoming 289 --------------------------------------------------------------------------- Strategic Plan Progress Update #2 11 Goal 7: Public Engagement Launched new city website Established a standardized branding guide Hire a HBTV Media Coordinator Develop standardized templates &materials for citywide use Total # of site visits and engagement on City website Total # of social media engagements and impressions Total # of online videos created Accomplishments FY 24-25 Tasks KPIs Completed 49%36% 15% In Progress Upcoming 290 --------------------------------------------------------------------------- Strategic Plan Progress Update #2 12 Goal 8: Public Safety Received the American Heart Association Mission: Lifeline EMS Recognition for excellent pre-hospital heart attack care Secured funding for the construction of the Real Time Crime Center and a dedicated supervisor Implement interdepartmental opioid prevention efforts Complete the Special Events Policy Develop the Real Time Crime Center Total # of monthly calls for service Total % of life safety and fire permit inspections completed Total % of state-mandated occupancy inspections completed Accomplishments FY 24-25 Tasks KPIs Completed 11%76% 13% In Progress Upcoming 291 --------------------------------------------------------------------------- Strategic Plan Progress Update #2 13 DASHBOARD SAMPLE DASHBOARD VISUALS 292 ----------------------------------------------------------------------- 1 4 Recommendation Receive and file the 2023-27 Strategic Plan Biannual Progress Update #2 Strategic Plan Progress Update #2 293 City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 File #:24-471 MEETING DATE:7/16/2024 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO:Honorable Mayor and City Council Members SUBMITTED BY:Eric G. Parra, Interim City Manager VIA:Chau Vu, Director of Public Works PREPARED BY:Bill Krill, Real Estate and Project Manager Subject: Approve for introduction of Ordinance No. 4230 to authorize execution of an Amendment to the Pipeline Franchise Agreement with Cardinal Pipeline, L.P. for the operation and maintenance of a pipeline system for the transportation of oil, gas, and other hydrocarbon substances Statement of Issue: The Franchise Agreement between the City of Huntington Beach and Cardinal Pipeline, L.P. expired on February 13, 2024. The Franchise Agreement is now up for extension and a ten-year Amendment is being proposed for the operation and maintenance of the existing pipeline system for the transportation of oil, gas, and other hydrocarbon substances. Financial Impact: The City will continue to receive a Base Annual Fee of $117,024.35 plus any adjustments by an annual rate of change based on the Consumer Price Index (CPI). Recommended Action: A) Approve for introduction of Ordinance No. 4230, “An Ordinance of the City Council of the City of Huntington Beach Amending Ordinance No. 4008 which Granted an Oil Pipeline Franchise”; and, B) Approve and authorize the Mayor and City Clerk to execute the “Amendment to Franchise Agreement between the City of Huntington Beach and Cardinal Pipeline, L.P.” Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis: Staff is requesting approval of an Amendment to the Franchise Agreement between the City of Huntington Beach and Cardinal Pipeline, L.P. for the operation and maintenance of an existing City of Huntington Beach Printed on 7/10/2024Page 1 of 3 powered by Legistar™294 File #:24-471 MEETING DATE:7/16/2024 pipeline system used for the transportation of oil, gas, and other hydrocarbon substances. The pipeline system consists of approximately 86,400 linear feet of 6-inch, 10-inch, and 12-inch diameter pipeline with the following breakdown: Pipe Diameter, Inches Base Rate, Linear Foot Linear Feet of Pipe Total Base Rate 6 $0.895 39,425.00 $35,282.38 10 $1.485 7,409.00 $11,002.37 12 $1.787 39,584.00 $70,736.61 Totals 86,418.00 $117,024.35 Cardinal Pipeline, L.P. acquired the rights granted under the Franchise Agreement and Ordinance 4075 from Paramount Petroleum Corporation in 2015. The Agreement , which was assumed by Cardinal Pipeline, had an expiration date of February 13, 2024. During the period from January 1, 2014, through December 31, 2023, the pipeline system was held as inactive. Since the Franchisee was not fully utilizing this pipeline, they were granted a 75% discount on the Base Annual Fee . The inactive period, as allowed under the agreement, was for a maximum of 10 years. This period has now expired, and the Franchisee will be obligated to pay the entire Base Annual Fee for the duration of the extension period as per the Amendment. Terms of the proposed Amendment to the Franchise Agreement include: ·Term: 10 years ·Base Annual Fee: $117,024.35 + Annual CPI adjustment ·Corporate Surety Bond of $100,000 ·Liability, Environmental, and Workers Compensation Insurance Staff, along with a petroleum consultant Evans & Walker, analyzed oil pipeline franchise fees at the state and local level and found that the City of Huntington Beach is currently charging rates that are comparable to or higher than all agencies reviewed. Staff recommends approval of the Amendment to the Franchise Agreement. The Agreement provides general fund revenue and ensures continued maintenance and responsibility for the pipeline network currently present within the City’s right-of-way. Environmental Status: This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Strategic Plan Goal: Goal 1 - Economic Development, Strategy A - Develop an updated economic development strategy to ensure business retention, local investments and job growth. City of Huntington Beach Printed on 7/10/2024Page 2 of 3 powered by Legistar™295 File #:24-471 MEETING DATE:7/16/2024 Attachment(s): 1. Ordinance No. 4230 2. Amendment to Franchise Agreement Between the City of Huntington Beach and Cardinal Pipeline L.P. 3. Cardinal Pipeline Performance Bond 4. Cardinal Pipeline Certificate of Insurance 5. Original Franchise Agreement 2014 6. PowerPoint Presentation City of Huntington Beach Printed on 7/10/2024Page 3 of 3 powered by Legistar™296 297 ORDINANCE NO. 4230 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING ORDINANCE NO. 4008 WHICH GRANTED AN OIL PIPELINE FRANCHISE WHEREAS, on February 3, 2014, the City Council adopted Ordinance No. 4008 which granted a franchise to Paramount Petroleum Corporation to construct, operate and maintain a pipeline for the transpmtation of oil; and On December 7, 2015, the City Council adopted Ordinance No. 4075, which approved the assignment of said franchise to Cardinal Pipeline, L.P.; and Cardinal Pipeline, L.P. and the City desire to extend said franchise for an additional ten (10) year period, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. The franchise awarded by Ordinance No. 4008, as amended by Ordinance No. 4075, is hereby extended for an additional period of ten (10) years as contained in the "Amendment of Franchise Agreement Between the City of Huntington Beach and Cardinal Pipeline, L.P.," a copy of which is attached hereto as Exhibit "A" and incorporated by this reference as though fully set forth herein. SECTION 2. The City Clerk shall cause this 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, semi-weekly or weekly newspaper, published in the County of Orange or the City and circulated in the City, which is selected by the City Council for that purpose. 24-14073/334472 298 ORDINANCE NO. 4230 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the ___ day of __________ , 2024. Mayor ATTEST: INITIATED AND APPROVED: City Clerk Director o r Public Works REVIEWED AND APPROVED: City Manager flt_ 24-1 4073/3344 72 2 299 AMENDMENT TO FRANCHISE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND CARDINAL PIPELINE, L.P. THIS AMENDMENT is made and entered into by and between the CITY OF HUNTINGTON BEACH, a California municipal corporation, hereinafter referred to as "City," and CARDINAL PIPELINE, L.P ., a Limited Partnership, hereinafter referred to as "Cardinal." WHEREAS, City and Cardinal are parties to that certain Franchise Agreement, as set forth in City Ordinances 4008 and 4075 which Franchise Agreement shall hereinafter be referred to as the "Original Agreement"; and City and Cardinal wish to amend the Original Agreement to extend the term thereof by an additional ten ( I 0) year period, NOW, THEREFORE, it is agreed by City and Cardinal as follows: I. TERM The term of the Original Agreement is extended for ten (10) additional years. The Original Agreement shall now expire on February 13, 2034. 2. REAFFIRMATION Except as specifically modified herein, all other terms and conditions of the Original Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by and through their authorized officers on _________ , 2024. 24-14073/334471 300 CARDINAL PIPELINE, L.P. By:~~ print name Its: AND By: ___________ _ print name Its: REVIEWED AND APPROVED: City Manager 24-14073 /334471 CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor City Clerk Director of Public Works 2 301 Cardinal Pipeline, L.P. a divis ion of Crimson ll1idstream, LLC 12/8/2023 City of Huntington Beach Public Works Department 2000 Main Street Huntington Beach, CA 92648 Subject: Bond # N-E000029 Replaces Bond #SU1173970 To whom it may concern: We are pleased to enclose the original of the above captioned bond issued as a replacement of Arch Insurance Company, Bond No. SU1173970. We ask that you please accept the enclosed bond and release Arch Insurance Company Bond No. SU1173970 as of November 22, 2023 by either signing the enclosed release form or by issuing a letter of release and return along with the original bond directly to the surety, principal or to me as follows: Tannis Mattson, Alliant Insurance Services, Inc ., 5444 Westheimer, Suite 900, Houston, TX 77056 Tan nis.mattson@alliant.com Miriam Ayala, Crimson Midstream LLC, 1900 Main Street, Suite 600, Irvine, CA 92614 mayala@crimsonpl .com Megan Laban, Arch Insurance Company, 2711 N. Haskell, Suite 1600, Dallas, TX 75204 m laban@arch i nsurance .com We trust you will find the enclosed in complete order. However, should you have any questions or concerns, please do not hesitate to contact the undersigned directly. Sincerely, ~yala ~ Operations Support Enclosed 1900 Main S treet, S uite 600 Irvine, CA 92614 Vi sit our web site a t www.CrimsonMjdstream.com 302 Cardinal Pip eline , L.P. a division of Crimson ~lid~-tream, LLC 12/8/2023 Mail/Email To: Tannis Mattson Alliant Insurance Services, Inc. 5444 Westheimer, Suite 900 Houston, TX 77056 P: 713 -470-4165 E: tannis.mattson@allia nt .com BOND RELEASE As of November 22, 2023, the undersigned by these presents, does for itself and its successors and assigns, unconditionally releases, and discharges Arch Insurance Company of and from all causes of action and all past and present claims and/or liability now or hereinafter arising under Bond No SUll 73970 in the amount of $100,000.00 issued for City of Huntington Beach . This release shall cause this bond to be null and void and terminate any obligation of Arch Insurance Company under this bond . In witness whereof, the undersigned has caused these presents to be signed by it's duly authorized agent on the __ day of _____ ~ 20 __ . City of Huntington Beach Public Works Department 2000 Main Street Huntington Beach, CA 92648 By _________________ _ (Signature) (Please print or type name) (Title) (Phone) 1900 Main Street , Suite 6 0 0 Irvine, CA 92614 Vis it our web site a t www.Crim~onMidstream.com 303 *Replaces and Supersedes Arch Insurance Company Bond #SU 1173970, Effective 11/22/2023° Performance Bond BOND # N-E000029 (Continuous) KNOW ALL MEN BY THESE PRESENTS: That we CARDINAL PIPELINE, LP ., as Principal, and lndemni National Insurance Company , a corporation duly incorporated under the laws of the State of MS and authorized to do business in the State of California, as Surety, are held and firmly bound unto CITY OF HUNTINGTON BEACH, as Obllgee, in the penal sum of One Hundred Thousand and 00/100 ($100,000.00) Dollars, for the payment of which we hereby bind ourselves, our heirs, executors and administrators, jointly and severally, firmly by these presents. WHEREAS, the Principal has entered into a certain written contract with the Obligee described as: Franchise Agreement for the construction, operation and maintenance of a pipeline system for the transportation of oil, gas and other hydrocarbon substances dated FebNary 14, 2014, contract is hereby referred to and made a part hereof as fully and to the same extent as if copied at length herein. NOW, THEREFORE, THE CONDITIONS OF THIS OBLIGATION ARE SUCH , that if the Principal shall faithfully perform all duties of the Contract according to its terms, covenants and conditions, then this obligation shell be void, otherwise to remain in full force and effect. PROVIDED, HOWEVER, that 1. The term of this bond is for the period commencing on the 11/22/2023 and ending 11/22/2024 unless released by the Obligee prior thereto. However, the term of this bond will automatically renew for additional one-year period(s) unless the bond has been released by the Obligee. Any suite under this bond must be instituted before the expirati on of 12 months from the date on which final payment falls due 2. Neither nonrenewal nor cancellation by the Surety, nor failure of the Principal to provide the Obligee with a replacement bond, shall constitute default under this bond. 3. In the event the Principal shall be declared by the Obligee to be in default under the Contract, the Obligee shall provide the Surety with a written statement setting forth the particular facts of said default no later than thirty (30) days from the date of said default, which notice shell be sent to the Surety by registered mail to the address stated in provision #6 below. 4. The Surety will have the right and opportunity, at its option, and in its sole discretion, to: a .) cure the default; b .) assume the remainder of the Contract and to perform or sublet same; c .) or to tender to the Obligee funds sufficient to pay the cost of completion less the balance of the Contract price up to an amount not to exceed the penal sum of the bond. In no event shall Surety be liable for fines, penalties, liquidated damages or forfeitures assessed against the Principal. 5 . The Obligee's acceptance of this bond and reliance upon it as security constitutes its acknowledgement and agreement as to the terms under which is offered and issued by the Surety. 6 . All notices, demands and correspondence with respect to this bond shall be in writing and addressed to: Indemnity National Insurance Company, 238 Bedford Way, Franklin, TN 37064 Signed and sealed this 22nd day of Nov , 20 23. ~~~ Sandra Pari<er, Attorney-in-Fact 304 PRINCIPAL'S ACKNOWLEDGMENT State of _______ _ County of ________ _, On ____________ , before me ___ __,"------------ personally appeared ___________ .....,,.._. nown to me to be the person who executed the within instrument as _____ ,,,__ __ on behalf of the _______ _ ----------------'-----·· and acknowledged to me that said corporation executed the same. My Commission Expires. __ ___,~-------• 20 __ _ SURETY'S ACKNOWLEDGEMENT State of Texas County of ~Hw.ia~m!.!l:·s~------') On 1112212023 , before me. ____ T..;.;a;;;..nc.;.nic:..s.;.;.M;.;;;;attso=;.;.."-------- personally appeared __,silliaw:nd..,.raai:..Pa111rk,Ale;u.r _______ known to me to be the person who executed the within instrument as Attorney-in-Fact on behalf of the Indemnity National _ln_s_ur_a_nc_e_c_o_m,;_pa_n..:..y _____________ , and acknowledged to me that said corporation executed the same. My Commission Expires __ Fe_b_ru_a_ry_1_1th ______ ,, 20_2_4 __ Signat e ;{ijl /lJ LJ al) WITNESS my hand an~ £~o0Mattso~ 305 ; CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of ORANGE } On DECEMBER 7 2023 Date before me, ANGIE ILLESCAS A NOTARY PUBLIC Here Insert Nome and Title of the Officer personally appeared --'-'-M"""A""N-'-'D~Y'---'-'K'-'-RO=ET"'S:..cC"'H_,_ ________________ _ Name(/.) of Signer(i) who proved to me on the basis of satisfactory evidence to be the person(/1) whose name(,() isl-subscribed to the within instrument and acknowledged to me that ,i,eishe/thl!,y executed the same in ~/her/tm,ir authorized capacit~ and that by t,;,,/'her/11,eir signature(/) on the instrument the person{t), or the entity upon behalf of which the person(~ acted, executed the instrument. ANGIE ILLESCAS I COMM, #2416221 z Notary Public • California ~ Los Angeles County Comm, Ex res Oct. 8, 2026 Place Notary Seal and/or Stamp Above NOTARY PUBLIC-CALIFORNIA LOS ANGELES COUNTY COMM. #2416221 MY COMM. EXPIRES OCT. 8, 2026 ©2019 National Notary Association I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. 306 Power of Attorney Indemnity Nationa( Insurance Comyany 238 Bedford Way Franklin, TN 37064 KNOW ALL PERSONS BY THESE PRESENTS: that Indemnity National lnsurance Company, a Mississippi corporation, (hereinafter the "Company"), does hereby constitute and appoint: ......... Sandra Parker, Stacy Killebrew, Megan Sivley,* ........... . ........ Melissa Haddick, Orlando Aguirre, Tannis Mattson........................... of Alliant Insurance Services, Inc. to be its true and lawful Attorney-in-Fact, with full power and authority hereby conferred to sign, seal, and execute on its behalf surety bonds or undertakings and other documents of a similar nature issued in the course of its business up to a penal sum not to exceed ............ "'Twenty-five Million Dollars ($25,ooo,ooo.om•0 .......................................... each, and to bind the Company thereby as fully and to the same extent as if the same were signed by the duly authorized officers of the Company. This appointment is made under and executed pursuant to and by authority of the following Minutes of Special Actions Taken by Written Consent of the Board of Directors, which is now in full force and effect: Authorization to Appoint Attorneys-in-Fact and the Use of Facsimile Signatures and Facsimile Seals for the Purpose of Issuing Bonds: RESOLVED: That the president or any vice president may appoint attorneys-in-fact or agents with authority a s defined or limited in the instrument evidencing the appointment in each case, for and on behalf of the Company to execute and deliver and affix the seal of the Company to bonds and related obligatory certificate s and documents; and any one of said officers may remove any such attorney-in-fact or agent and revoke any power previously granted to such person, whether or not such officer appointed the attorney-in-fact or agent. RESOLVED: That any bonds and related obligatory certificates and documents shall be valid and binding upon the Company, (i) when signed by the president, or any vice president, and sealed with the Company seal; or (ii) when duly executed and sealed with the Company seal by one or more attorneys-in-fact or agents pursuant to and within the limits of authority evidenced by the power of attorney issued by the Company to such person or pe.rsons a certified copy of which power of attorney must be attached thereto in order for such obligation to be binding upon the Company. RESOLVED: That the signature of any authorized officer and the seal of the Company may be affixed to any power of attorney or certification thereof authorizing the execution and delivery of any bonds and related obligatory certificates and documents of the Company and such signature and seal then so used shall have the same force and effect a s though manually affixed. IN WITNESS WHEREOF, this Power of Attorney has been subscribed by an authorized officer or official of the Company and the corporate seal of Indemnity National insurance Company has been affIXed thereto in Lexington, Kentucky this 20th day of August, 2021. State of Kentucky County of Fayette Indemnity National Insurance Company .,#~ Thomas F. Elkins, President On this 20th day of August, 2021 , before me, a Notary Public, personally came Thomas F. Elkins , to me known, and acknowledged that he is President of Indemnity National Insurance Company; that he knows the seal of said corporation; and that he executed the above Power of Attorney and affixed the corporate seal oflndemnity National Ins urance Company thereto with the authority and at the dire ction of said corporation. CERTIFICATE My Commission Expires 09/26/2025 Notary ID Number. KYNP34336 1, James E. Hart, Secretary of Indemnity National Insurance Company, do hereby certify that the foregoing Power of Attorney is still in full force and effect, and further c ertify that the Minutes of Special Actions Taken by Written Consent of the Board of Directors are now in full force and effect. IN TESTIMONY WHEREOF I have subscribed my name and affixed the seal of said Company. Dated this 2 2nd day of November 20~. 307 ,e_Rv" CERTIFICATE OF LIABILITY INSURANCE I DATt:! (MM/OD/YYYY) 4/1/2024 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER, THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW, THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER, IMPORTANT: If the certificate holder Is an AOOIIIONAL INSURED, the pollcy(les) must have ADDITIONAL INSURED provisions or be endorsed, If SUBROGATION IS WAIVED 1 subject to the torms and conditions of the policy, certain pollcles may require an endorsement. A statement on this ocrtlflcate does not confer rights to the oort!floate holder In lleu of such endorsement(s), PRODUCJlR ~~~~or Erick Lonez Allianl Insurance Services Houston, LLC f.'12 1W ..,_ .. , If~~ .. , 1330 Post Oak Blvd. Suite 300 ~-MAIL Erlck,Looez®Alllant.com '"""1!1'18• Houston TX 77056 INSURER/SI AFFORDING OOVERAO~ NAIO# license#: 0C36061 IHSURARA: Arch Insurance Comnanv 11150 INSURED CRlf.tMID•Ol 1NSURER s: Llovd's of London 0 Cardinal Pipeline LP. IHSURERC: 1900 Main Street, Suite 600 Irvine CA 92614 INSURER 0: INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER: 91678726 REVISION NUMBER· THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS, 1~,!i~ 'JYPI':: OJ:! 1/lSUMNCI:! ADDL SUBR 1 ,~8M&'Cru,. I l~~f6%URf .. LIMITS POLICY NUMBER B X COMMEllCIAL (mNERAL LIAalLln' y y EN0043323 11/!/2023 11/1/2024 E:ACH OCCURRENCE! $1,000,000 ~ ~ ClAIMS,MAOI:: [8J OCCUR ~fufMIB'M9rac::!~~ncGI -$100,000 -Ml!O EXP {Anyo!\Oporson) $10,000 PERSONAL & ADV INJURY S 1,000 000 - GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE S 2,000,000 Z1 POUOV □ f P.8'f □ LOO PRODUCTS-COMP/OP AGO $2 000,000 OTHER: $ A AUTOMOBILE LIABILITY y y -81CAB5008603 11/1/2023 11/1/2024 ~~~~l~~~t~INGLE LIMIT $1,000,000 X ANY AUTO BOOll" INJURY (Par parson) $ --OWNED SCHEDULED AUTOS ONLY AUTOS aomt. y INJURY (Pot acddonl) $ --HJIU::D N.ON•OWNED Firo?~&~~fiAMAGE $ -AUTOS ONLY -AUTOS ONLY $ B X UMBRELLALIAB Fl OCCUR y y EN0043423 11/1/2023 11/1/2024 EACH OCCURRENCE $6,000,000 -EXOESSLIAB CLAIMS,MADE AGGREGATE $ D<:.O l I REIENrlON $ $ A WORKERS COMPENSATION y 01WOl5000404 11/1/2023 11/1/2024 X I ~TA'UTE I I ~~H-AND EMPLOYERS' LIAlllLITY YIN ANYPROPftlETORiPMTNERlt:Xt:CUTlVE ~ NIA t:.L l!ACH Accmrnr $1,000,000 OFF!CER/MEMBEREXCLUOEO? fMandatoiy In NH) ~.L. DISEASI': 0 EA EMPI.OYEE $1,000,000 6~t~~/i;'{r3~ int~PERAT!ONS below El. DISEASE, POLICY LIMIT S 1,000,000 B Pol111Uon llab, EN0043423 1111/2023 1111/2024 Agg limit 6,000,000 ' APPROVED AS TO FOR DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Addlllooal Remaoka Sci"'"'• m,y be attached II n,o,a epac<> la ,aq,lced} \~ See Attached.,. CERTIFICATE HOLDER c1i of Huntington Beach 20 O Main Street Hunllngton Beach CA 92648 I ACORD 25 (2016/03) l,y;___ MICHAELE. GATES CITY ATTORNEY CITY OF HUNTINGTON BEACH CANCELLATION SHOULD ANY or THE ABOVE DESCRIBED ):>OLICIES BE CANCELLED BEFORE THE EXPIRAllON DAlE THEREOF 1 NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS, AUTHORIZED REPRESENTATIVE ~ --- ©1988-2015 ACORD CORPORATION, All rights reserved, The ACORD name and logo are reglslered marks of ACORD 308 AGENCY CUSTOMER ID: _C_R_IM_M_ID_-_0_1 _____________ _ LOC II: ______ _ ADDITIONAL REMARKS SCHEDULE MENCY NAMED INSURED Alllant Insurance Services Houolon, Ll.C cardinal Pipeline L.P. 1900 Main Sireel, Suite 600 POLICY HUMBER Irvine CA 92614 CARRIER I HAICCOD!: Ef'FEOTIV.E DATE: ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: CERTIFICATE OF LIABILITY INSURANCE 2nd Layer Excess Llablllly Excluding Pollullon Polley No. EN0043523 Polley Term: 11/1/2023 -11/1/2024 Insurer: Underwriters al Lloyd's Limit: $20MM xs $5MM Each Occurrence 2nd Layer Excess Llablllty Including Pollullon Polley No. : EN0043523 Polley Term: 11/1/2023 -11/1/2024 Insurer: Mosaic Syndicate Limit: $20MM xs i5MM Each Occurrence Gradual & Difference In Condll!ons Pollution Polley No. ISPILLSB93S7003 Polley Term: 1111/2023 -1111/2024 Insurer; rronshore Specially Insurance Company Llmll: $1MM Each Occurrence Gradual & Difference in Condlllons Pol!uUon Polley No, IEELPLLB93TG003 Polley Term: 11/1/2023 -11/1/2024 Insurer: lronshore Specialty Insurance Company Limit: $24MM xs $1MM Each Occurrence Page 1 of 1 The City of Hunllngton 8each 1 Its officers 1 elected or appointed officials, employees 1 agents and volunteers are Included as Additional Insured In accordance with Iha policy provisions of lhe General Llablllly, Automobile Llablllly end Exr.ess Llablllly policies. Genorol Llablllly policy evidenced herein Is Primary and Non-Contributory to other Insurance available to an Add!tlonal Insured, but only In accordance with !he policy's provisions. ACORD 101 {2000101) © 2008 ACORD CORPORATION, All rights rosetved. The ACORD namo and logo at'e registered marks of ACORD 309 POLICY NUMBER: B0831 EN0043323 COMMERCIAL GENERAL LIABILITY CG 2010 0413 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS, LESSEES OR CONTRACTORS -SCHEDULED PERSON OR ORGANIZATION This endorsement modifies Insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or Omanlzalion(sl Locatlon(sl Of Covered Operations The City of Huntingdon Beach, As per schedules held on file in the offices its officers, elected or appointed officials, of Ardonagh Specialty Limited Ua Price employees, agents and volunteers. Forbes & Partners Information reaulred to comolete this Schedule, If not shown above, will be shown In the Declarations. A. Section II -Who Is An Insured is amended to Include as an additional Insured the person(s) or organlzation(s) shown in the Schedule, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising Injury" caused, in whole or in part, by: 1. Your acts or omissions; or 2. The acls 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. However: 1, The insurance afforded to such additional Insured only applies to the extent permitted by law; and 2. If coverage provided to the additional Insured is required by a ccntract or agreement, the insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional Insured. B. With respect to the insurance afforded to these additional Insureds, the following additional exclusions apply: This Insurance does not apply to "bodily Injury" or "property damage" occurring after: 1. All work, Including materials, parts or equipment furnished in ccnneclion with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional lnsured(s) at the location of the covered operations has been completed; or 2. That portion of "your work" out of which the Injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged In performing operations for a principal as a part of the same project. CG 2010 0413 © Insurance Services Office, Inc., 2012 Page 1 of 2 310 C, With respect to the Insurance afforded to these additional insureds, the following is added to Section 111-Limits Of Insurance: If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured Is the amount of Insurance: 1. Required by the contract or agreement; or 2. Available under the applicable Limits of Insurance shown In the Declarations; whichever Is less. This endorsement shall not Increase the applicable Limits of Insurance shown In the Declarations. Page 2 of2 © Insurance Services Office, Inc., 2012 CG20100413 311 POLICY NUMBER: B0831 EN0043323 COMMERCIAL GENERAL LIABILITY CG 20 37 0413 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS, LESSEES OR CONTRACTORS -COMPLETED OPERATIONS This endorsement modifies Insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or Oraanizatlon(sl Location And Description Of Completed Operations The City of Huntingdon Beach, As per schedules held on file in the offices its officers, elected or appointed officials, of Ardonagh Specialty Limited t/a Price employees, agents and volunteers. Forbes & Partners Information required to complete this Schedule, if not shown above will be shown in the Declarations. A. Section Ii -Who Is An Insured Is amended to include as an additional Insured the person(s) or organlzation(s) shown In the Schedule, but only with respect to liability for "bodily injury" or "property damage" caused, in whole or In part, by "your work" at the location designated and described In the Schedule of this endorsement performed for that additional Insured and included in the "products-completed operations hazard 11 • However: 1. The Insurance afforded to such additional insured only applies lo the extent permitted by law; and 2. If coverage provided to ihe additional Insured Is required by a contract or agreement, the insurance afforded to such eddlllonal Insured will not be broader than that which you are required by the contract or agreement to provide for such additional Insured. B. With respect to the Insurance afforded to these additional insureds, the following is added to Section Ill -Limits Of Insurance: If coverage provided to the additional Insured is required by a contract or agreement, the most we will pay on behalf of the additional Insured is the amount of Insurance: 1. Required by the contract or agreement; or 2. Available under the applicable Limits of Insurance shown in the Declarations; whichever Is less. This endorsement shall not Increase the applicable Limits of Insurance shown In the Declarations. )j CG20370413 © Insurance Services Office, Inc., 2012 Page 1 of 1 312 Bishopsgate MARKET REFORM CONTRACT SECTION IV-COMMERCIAL GENERAL LIABILITY CONDITIONS 831 BIB llem 4 Other Insurance a. Primary l11sura11ce Is subject to the PRIMARY INSURANCE ENDORSEMENT as follows: - II Is agreed that where the Insured Is named as an additional Insured on the pollcy(les) of others, this policy shall only apply In excess of and shall not be contributory with other said pollcy(les), Notwithstanding the above or any other clauses contained within this policy It Is agreed where required by written contract this policy shall be primary and non-contributory to any other valid and collectable lnsui'ance, All other terms, clauses and conditions remain unaltered, CORENERGY INFRASTRUCTURE TRUST UMR: B0831EN0043,12.1 Author Checker cf J¥ J, \1/eld P. Durtor, Page 13 If plncec/ viii /.'Pt l/Jls box WIii llflf h<1 simu-1d 313 Bishopsgate MARKET REFORM CONTRACT ADDITIONAL INSURED CGU 13 0 T The following amendments lo the wording are effected: " 1. the first sentence of Insuring Agreement a. Is deleted and replaced by the following: 831 BIB a. We will pay those sums that the Insured and any "additional Insured" as far as applicable becomes legally obligated to pay as damages because of "bodily Injury" or "property damage" to which this Insurance applies, 2. The following Is incorporated In the DEFINITIONS; "addltlonal Insured" means any person or entity lo whom the "Insured" Is obliged by an "Insured contract" entered Into before any relevant "occurrence" lo provide Insurance such as Is afforded by this Insurance with respect to "bodily lnju,y" or "propeIty damage" arising out of operations conducted by the "Insured" but only to the extent required by any Indemnity given by the "insured" In said "Insured contract" to the "addlllonal Insured". 3, The following Is Included In the DEFINITIONS; "Third party" means any company, entity, or person other than an "Insured" or other than a subsidiary, owned or controlled company or entity of an "Insured". Notwithstanding Section 11.2.a., your "employees", other than either your "executive officers" (If you are an organization other than a partnership, joint venture or limited llablllty company) or your managers (If you are a limited llablllty company) shall be treated as a "third party", All other terms, clauses and conditions remain unaltered. (CGU 13 0 T) CORENERGY INFRASTRUCTURE TRUST UMR: 80831EN0043323 Author cf Page 24 II plmmtl via PM. t/Jfalmx wilf 11ollm slfmRr/ 314 Bishopsgate MARKET REFORM CONTRACT WAIVl;R OF SUBROGATION ENDORSEMENT 831 BIB We agree to waive our rights of subrogation against any principal where waiver Is required by written contract but only In respect of llablllly for Bodily Injury and/or Property Damage arising out of operations performed by you and only to the extent required under said wrlllan contract. All other terms, clauses and conditions remain unaltered, (CGU12L) CORENERGY INFRASTRUCTURE TRUST UMR: /30831EN0043323 Aulhor cf Page 25 h' /Jlac0d vll1 f.1/Jt t/J(,:; hox W/IJ I/Of /)O sly1wcl 315 WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY EARLIER NOTICE OF CANCELLATION PROVIDED BY US ENDORSEMENT This endorsement changes the policy to which It Is attached effective on the Inception date of the policy unless a different dale Is Indicated below. (The following "attached clause" Is to be completed only when this endorsement Is Issued subsequent to prepara- tion of the policy.) This endorsement, effective on 11/01/2023 at 12:01 AM. standard time, forms a part of Policy No.81WCI5008404 of the Issued to CRIMSON MIDS'rREAM OPERATING I LLC (Named Insured) Insurance Company Authorized Representative For any statutorily permitted reason other than nonpayment of premium, the number of days required for notice of cancellation, as provided In paragraph 2. of either the CANCELLATION Common Polley Condition or as amended by an applicable state cancellation endorsement, Is Increased to the number of days shown In the Schedule be- low. All the terms and conditions of the Polley which are not Inconsistent with this endorsement continue to apply. SCHEDULE Number of Days' Notice: 60 00 WC004 00 11 03 Page I of I 316 WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY POLICY NUMBER:81WCI5008 404 TEXAS WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT WC 42 03 04 B {Ed. 6-14) This endorsement applies only to the Insurance provided by lhe policy because Texas is shown In Item 3,A, of the Information Page. 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, but this waiver applies only with respect to bodily Injury arising out of the operations described In the Schedule where you are required by a written contract to obtain this waiver from us. This endorsement shall not operate directly or indirectly to benefit anyone not named In the Schedule. The premium for this endorsement Is shown In the Schedule. Schedule 1. {□) Specific Waiver Name of person or organization (181) Blanket Waiver Any person or organization for whom the Named Insured has agreed by written contract to furnish this waiver. 2. Operations: 3. Premium: The premium charge for this endorsement shall be 2 percent of the premium developed on payroll In connection with worl< performed for the above person(s) or organlzatlon(s) arising out of the operations described. 4. Advance Premium: !NCLUOlllO This endorsement changes the policy to which it is attached and Is effective on the date Issued unless othe1wlse stated. {The Information below Is required only when this endorsement is Issued subsequent to preparation of the policy.) Endorsement Effective 11/01/2023 Policy No. 81WCl5008404 Insured CRIMSON MIDSTREAM OPERATING, LLC. Insurance Company ARCH INSURANCE COMPANY Endorsement No. Premium INCL. DATE OF ISSUE: Countersigned By --------------~ WC 42 03 04 B (Ed. 6-14} © Copyright 2014 National Counoll on Compensation J11suronco 1 Inc, AU Rights ~eserved, 317 WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY POLICY NUMBER: 81WCI5008404 WC 00 0313 {Ed, 4-84) WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT 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 applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) This agreement shall not operate directly or indirectly to benefit anyone not named In the Schedule. Schedule ANY PERSON OR ORGANIZATION WHERE WAIVER Oli' OUR RIGHT TO RECOVER IS PERMITTED BY LAW AND IS REQUIRED BY WRITTEN CONTRACT PROVIDED SUCH CONTRACT WAS EXECUTED PRIOR TO DATE Oli' LOSS, This endorsement changes the policy to which ii is attached and Is effective on the date Issued unless otherwise stated. (The lnfonnatlon below Is required only when this endorsement Is Issued subsequent to preparation of the policy.) Endorsement Effective 11/01/2023 Polley No. 81WCl5008404 Endorsement No, Premium INCL. Insured CRIMSON MIDSTREAM OPERATING, LLC Insurance Company ARCH INSURANCE COMPANY DATE OF ISSUE: WC000313 (Ed, 4-84) @ 1983 National Councli on Compensation Insurance, Countersigned By _____________ _ 318 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. EARLIER NOTICE OF CANCELLATION PROVIDED BY US This endorsement modifies Insurance provided under the followlng: AUTO DEALERS COVERAGE FORM BUSINESS AUTO COVERAGE FORM MOTOR CARRIER COVERAGE FORM SCHEDULE Number of Pays' Notice 6 0 (If no entry appears above, information required to complete this Schedule will be shown In the Declarations as applicable to this endorsement.) For any statutorily permilled reason other than nonpayment of premium, the number of days required for notice of cancellation, as provided In paragraph 2. of either the CANCELLATION Common Polley Condition or as amended by applicable state cancellallon endorsement, is Increased to the number of days shown In the Schedule above. All other terms and conditions of this Polley remain unchanged. Endorsement Number: Polley Number: 81CAB5008603 Named Insured: CRIMSON MIDSTEAM OPERATING, LLC This endorsement Is effective on the Inception date of this Polley unless otherwise stated herein: Endorsement Effective Date: 11/01/2023 00 CA0039 00 10 13 Page 1 of 1 319 POLICY NUMBER: 81CAB5008 603 COMMERCIAL AUTO CA04441013 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US (WAIVER OF SUBROGATION) This endorsement modifies Insurance provided under the following: AUTO DEALERS COVERAGE FORM BUSINESS AUTO COVERAGE FORM MOTOR CARRIER COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by the endorsement. This endorsement changes the policy effective on the Inception date of the policy unless another date Is Indicated below. N MIDSTR• Endorsement Effective Date: 11/01/2023 Name(s) Of Person(s) Or Organlzatlon(s): SCHEDULE ANY PERSON OR ORGANIZAION WHERE WAIVER OF OUR RIGHT TO RECOVER IS PERMITED BY LAW AND IS REQUIRED BY WRITTEN CONTRACT PROVIDED SUCH CONTRACT WAS EXECUTED PRIOR TO THE LOSS, Information renulred to comnlete this Schedule If not shown above will be shown In the Declarations, The Transfer Of Rights Of Recovery Against Others To Us condition does not apply to the person(s) or organlzatlon(s) shown In the Schedule, but only to the extent that subrogation Is waived prior to the "accident' or the 'loss" under a contract with that person or organization, CA04441013 © Insurance Services Office, Inc., 2011 Page 1 of 1 320 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED • BLANKET This endorsement modifies insurance provided under the following: AUTO DEALERS COVERAGE FORM BUSINESS AUTO COVERAGE FORM MOTOR CARRIER COVERAGE FORM Under Covered Autos Liability Coverage, the Who is An Insured provision Is amended to Include as an "Insured" the person or organization who Is required under a written contract to be Included as an "insured" under this policy, but only with respect to their legal liability for your acts or omissions or the act or omissions of a person for whom Covered Autos Liability Coverage Is afforded under this policy. All other terms and conditions of this policy remain unchanged. Endorsement Number: Polley Number: 81CAB5008603 Named Insured: CRIMSON MIDSTREAM OPERATING, LLC This endorsement Is effecllve on the Inception date of this Polley unless otherwise stated herein: Endorsement Effective Date: 11/01/2023 00 CA0115 00 10 13 Page 1 of 1 321 THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY. PRIMARY AND NON-CONTRIBUTING INSURANCE ENDORSEMENT· DESIGNATED CONTRACT(S) This endorsement modifies Insurance provided under the following: BUSINESS AUTO COVERAGE FORM GARAGE COVERAGE FORM SCHEDULE Designated Contract{s): ALL PARTIES WHERE REQUIRED IN A WRITTEN CONTRACT With respect to the contract{s) designated In the Schedule above, it Is agreed that the following subparagraph e. is added to SECTION IV • BUSINESS AUTO CONDITIONS, Paragraph B. 5. and SECTION V -GARAGE CONDITIONS, Paragraph B. 5. 5. Other Insurance e. With respect to SECTION II • LIABILITY COVERAGE, where you are specifically required by a written contract designated In the Schedule above to provide Insurance that Is prlma1y and non"contrlbutory, and the written contract designated in the Schedule above so requiring Is executed by you before any "accident", this Insurance will be primary and the other Insurance will not contribute with this Insurance, but only to the extent required by that written contract. All other terms and conditions of this Policy remain unchanged. Endorsement Number: This endorsement Is effective on the Inception date of this policy unless otheiwlse stated herein. {The Information below is required only when this endorsement Is issued subsequent to preparation of the policy.) Policy Number: 81CAB50086023 Named Insured: CRIMSON MIDSTREAM OPERATING, LLC Endorsement Effective Date: 11/01/2023 00 CA0116 00 04 10 Page 1 of 1 322 Bishopsgate MARKET REFORM CONTRACT 831 BIB II. CONDITIONS This Polley Is subject to the following conditions: 1. APPEALS In the event the "Insured" elects not to appeal a judgement which may, In whole or In part, Involve Indemnity under thts Polley, Undeiwrlters may, following discussion with the "Insured", elect to make such appeal at their own cost and expense and shall pay for the taxable costs and disbursements and any additional Interest Incidental to such appeal; but In no event shall Undeiwrlters' share of "Ultimate Net Loss" exceed the relevant Limits of Liability set out In Item 4 of the Declarations plus such costs, expenses, disbursements and Interest. 2. ASSIGNMENT Assignment of Interest under this Polley shall not bind .Undeiwrlters unless and unlll their written agreement thereto is secured. 3. CANCELLATION Cancellation of this Policy may be effected either (a) by the "Insured", or (b) by Undeiwrlters or their representatives. The "Insured" may cancel lhls Polley by malling or delivering advance written notice to Undeiwriters or their representatives stating when the cancellation Is to take effect. If Undeiwriters cancel the Policy because of non-payment of premium, they or their representatives must mail or deliver to the "Insured" not less than fifteen (15) days advance written notice stating when the cancellation Is to take effect. If Undeiwrilers cancel for any other reason, they or their representatives must mall or deliver to ti1e "Insured" not less than ninety (90) days advance written notice stating when the cancellation Is to take effect. Malling of notice by Undetwrlters or their representatives to the "Insured" at the malling address shown In Item 1 of the Declarations will be sufficient to prove notice. The Polley Period will end on the day and hour stated In the cancellation notice. If Undeiwrlters cancel the Polley, final premium will be calculated pro rata based on the time that this Polley was In force. If the "Insured" cancels the Polley, final premium will be more than pro rata; It wlll be based on the time this Polley was In force and Increased by Underwriters' short rate cancellation table and procedure. Premium adjustment may be made at the time of canoellatlon or as soon as practicable thereafter but the cancellation will be effective even If no refund has been made or offered to the "Insured". Undeiwrlters' cheque, or their representative's cheque, malled or delivered, shall be sufficient tender of any refund due to the "Insured". The first named "Insured" In Item 1 of the Declarations shall act on behalf of all other "Insureds" with respect to the giving and receiving of notice of cancellation and the receipt of any refund that may become payable under the Polley. Any of these provisions that conflicts with a law that controls the cancellation of the Insurance to which this Polley applies Is changed by this statement to comply with the law. CORENERGY INFRASTRUCTURE TRUST UMR: B0831EN0043423 Slip Leader: Author ti Pnga 10 If Jlhu:ml vh1 Pf-'/. !Ills box wi/J1wtl>o ,'lignocl 323 Bishopsgate MARKET REFORM CONTRACT 831 BIB 21. for any "Claim" not covered by the underlying lnsurance(s) listed In Item 2 of the Declaratlons other than such lnsurance(s) that are self Insured to the extent referred to In Insuring Agreement 3. This exclusion will not apply to the extent that such "Claim" would have been covered except for the reduction or exhaustion of an aggregate limit shown In llem 2 of the Declarations by payment of "Clalm(s)" for "Occurrence(s)" which are also covered by this Polley, Nothing contained In the above Exclusions shall extend this Polley to cover any llablllty which would not have been covered had these Exclusions not been Incorporated herein. IV. DEFINITIONS 1. ADDITIONAL INSURED The words "Additional Insured", wherever used In this Polley, shall mean any person or entity to whom the "Insured" Is obliged by an "Insured Contract" entered Into before any relevant "Occurrence" and/or "Claim" to provide Insurance such as Is afforded by this Polley with respect to "Bodily Injury" or "Property Damage" arising out of operations conducted by the "Insured" but only to the extent required by any Indemnity given by the "Insured" In said "Insured Contract" to the "Addltlonal Insured", 2. ADVERTISING INJURY The words "Adverllslng Injury", wherever used In this Polley, shall mean Injury to a "Third Party" arising out of the "lnsured's" advertising activities, but only If such inju1y arises out of: (a) oral or written publlcatlon of material that slanders or libels a person or organisation or disparages a person's or organisation's goods, products or services; (b) oral or written publication of material that violates a person's right to privacy; (c) misappropriation of advertising Ideas or style of doing business; or, (d) Infringement of copyright, title or slogan, 3, AIRCRAFT LIABILITY The words "Aircraft Liability", wherever used In this Polley, shall mean liability arising out of the maintenance, operation or use of an aircraft, aeroplane or helicopter which is designed to fly In the air or atmosphere. 4, AUTOMOBILE The words "Automobile," wherever used In this Polley, shall mean a land motor vehicle, trailer or semi- trailer designed for travel on public roads, Including any attached machinery or equipment, but the word "Automobile" shall not Include the contents of such vehicle, trailer or semi-trailer. 5, AUTOMOBILE LIABILITY The words "Automobile Llablllty," wherever used In this Polley, shall mean liability arising out of the maintenance, operation or use of any "Automobile". CORENERGY INFRASTRUCTURE TRUST UMR: B0831EN0043423 Author Checker cf j; Pa9818 Slip Leader: If plu<:mf via PJJI. 111/,'l !lox Will not he ,">i!)ned 324 Bishopsgate MARKET REFORM CONTRACT COMMON POLICY CONDITIONS All Coverage Parts Included In t11ls policy are subject lo Iha following conditions. A. CANCELLATION 1. The first Named Insured shown In the Risk Details may cancel this policy by malling or delivering to us advance written notice of cancellation. 2. We may cancel this policy by malling or delivering to the first Named Insured written notice of cancellation al least: a. 10 days before the effective dale of cancellation if wa cancel for non-payment of premium; or b. 60 days before lhe effective dale of cancellallon If we cancel for any other reason. 3. We will mall or deliver our notice to the first Named lnsured's last mailing address known to us. 831 BIB 4. Notice of cancellation will slate the effective date of cancellation. The policy period will end on that date. 5. If this policy Is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pro rata. The cancellallon will be effective even If we have not made or offered a refund. 6. If notice Is malled, proof of malling will be sufficient proof of nollce. B,CHANGES This policy contains all the agreements between you and us concerning the Insurance offered. The first Named Insured shown In the Declarations Is authorised to make changes In the terms of this policy wilh our consent. This policy's terms can be amended or waived only by endorsement Issued by us and made part of this policy. C. EXAMINATION OF YOUR BOOKS AND RECORDS We may examine and audit your books and records as they relate to lhls policy at any time during the policy period up lo three years afterward. D, INSPECTIONS AND SURVEYS We have lhe right bul are not obligated to: 1. Make Inspections and surveys at any time; 2. Give you reports on the conditions we find; and 3, Recommend changes. Any Inspections, surveys, reports or recommendations relate to lnsurablllty and lhe premiums to be charged, We do not make safely Inspections. We do not undertake to perform the duty of any person or organisation to provide for the health or safety of workers or \he public. And we do not warrant that conditions: 1. Are safe or healthful; or 2. Comply with laws, regulations, condes or standards. This condition applies not only to us, but also to any rating, advisory, rate service or similar organisation which makes Insurance Inspections, surveys, reports or recommendations. CORENERGY INFRASTRUCTURE TRUST UMR: B0831EN0043323 Author Page 10 II J;/m;ed vk1 PPI., fhl~ box w/11 not f,o signocl 325 Bishopsgate MARKET REFORM CONTRACT WAIVER OF SUBROGATION ENDORSEMENT 831 BIB We agree to waive our rights of subrogation against any principal where waiver Is required by written contract but only In respect of llablllly for Bodily Injury and/or Properly Damage, arising out of operations performed by you or on your behalf and only to the extent required under said written contract CGU12L (Amended) All other terms, clauses and conditions remain unchanged, CORENERGY INFRASTRUCTURE TRUST UMR: B0831EN0043423 Author cf Pogo 30 Slip Leader: If plocod vif, PPl. lhi:-: lwx Wif/11ol he 8i!.}nm I 326 priceforbes CONTRACT ENDORSEMENT 831 Unique Market Reference: 80831EN0043323 818 Endorsement Reference: 005 Insured: CORENERGY INFRASTRUCTURE TRUST CONTRACT CHANGES This contract Is amended as follows: ENDORSEMENT EFFECTIVE DATE: I inception DETAILS·OF CHANGE: UndelWliters hereby note and agree to add the following to the CONDITIONS section: Additional Insured -Owners, Lessees or Contractors -Completed Operations, CG.20.37.07.04 as attached (1 page), Additional Insured -Owners, Lessees or Contractors -Scheduled Person or Organization, CG.20.10.04.13 as attached (1 page). All other terms, clauses and conditions remain unchanged. ADDITIONAL/ RETURN PREMIUM: I Not Applicable Nole: Where more than one Insurer participates In the contract, the contract terms may mean that It Is not always necessary to obtain a record of agreement to the Contract Endorsement from all of those Insurers. CONTRACT ADMINISTRATION AND ADVISORY SECTION This contract Is amended as follows: SETTLEMENT DUE Not Applicable DATE: In the absence of an Insurer specified Settlement Due Date, the Settlement Due Date wlll be calculated by applying the terms of trade for the original · premium to whichever Is the later of either: the latest effective date of the subject matter of the contract endorsement: or the date on which the final Insurer agreement Is obtained. ALLOCATION OF PREMIUM TO Not Applicable CODING: I~ //4 Page 1 of 1 ~ City of Huntingdon Beach GL Endt /16/05/2024 11:53 CY JW Isl Signatory 2nd Slgnolory 327 I(_ .JJo 11 1 c A._, ()Ct-'' I f~ L &:,>me: t., c.. b'J ;;; /jul\'1,Jtj/-J I/ (' 17tf1U Dept. ID ED 14-03 Page 1 of 2 Meeting Date: 1/21/2014 ..LlaJ:?ovGLJ ::; -CJ f:tj}z_ /;V~00t£Cl>t>~ ol-3 -dOI'/· Mo~ 'l -C) CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 1/21/2014 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Kenneth A. Domer, Assistant City Manager SUBJECT: Approve for introduction Ordinance No. 4008 and authorize execution of a Pipeline Franchise Agreement with Paramount Petroleum Corporation for the operation and maintenance of a pipeline system for the transportation of oil, gas, and other hydrocarbon substances in an existing pipeline system previously owned by Cenco Refining Statement of Issue: The City Council is asked to approve a Franchise Agreement between the City and Paramount Petroleum Corporation for the operation and maintenance of an existing pipeline system for the transportation of oil, gas, and other hydrocarbon substances. Financial Impact: The City will receive an initial Base Grant Fee ($11,470), Base Annual Fee ($117,024 prorated to 75% during inactive status), and a Reinstatement Fee ($639,753.92 paid over 120 months), to the General Fund (Account Number 10000100.41230). Annual revenue is estimated at $151,743 and the contract value is estimated at $1,528,903. Recommended Action: A) Approve for introduction Ordinance No. 4008, "An Ordinance of the City of Huntington Beach Amending Ordinance No. 2615 Which Granted An Oil Pipeline Franchise;" and, B) Approve and authorize the Mayor and City Clerk to execute the "Franchise Agreement Between the City of Huntington Beach and Paramount Petroleum Corporation." Alternative Action(s): Do not approve the Agreement and direct staff accordingly. Analysis: City Council is asked to approve a Franchise Agreement between the City and Paramount Petroleum Corporation (Paramount) for the operation and maintenance of an existing pipeline system used for the transportation of oil, gas, and other hydrocarbon substances. The pipeline system consists of approximately 86,400 linear feet of 6-inch, 10-inch and 12-inch diameter pipe. Cenco Refining, the former pipeline owner, held the last valid franchise agreement, which expired on December 31, 2005. In August 2006, Alon USA Energy, Inc., the parent company of Paramount, purchased the rights to the pipeline. The pipeline has been idle since its acquisition and is expected to remain idle for the next five to ten years. The proposed Franchise Agreement would allow Paramount to maintain the pipeline on standby and to preserve the pipeline for future use. Without Item 18. - I HB -546- 328 Dept. ID ED 14-03 Page 2 of 2 Meeting Date: 1/21/2014 the implementation of a Franchise Agreement, Paramount would be required to abandon the pipeline and lose its ability to reactive the pipeline in the future. The proposed Agreement incorporates the changes made to Chapter 3.44 -Pipeline Franchises of the Huntington Beach Municipal Code in 2010. Terms of the proposed Franchise Agreement include: • Term: 10 years • Base Grant Fee: $11,470 • Base Annual Fee: 2014 fee estimated at $117,024 (75% of Base Annual Fee will be collected during inactive status) • Maximum Inactive Status Period: 10 years • Reinstatement Fee: $639,753.92 (paid over 120 monthly payments of $5,331.28) • Corporate Surety Bond of $100,000 • Liability, Environmental and Workers Compensation Insurance Staff recommends approval of the Franchise Agreement. The agreement provides substantial general fund revenue, estimated at $151,743 annually for a ten year period, and ensures continued maintenance and responsibility for a vast pipeline network currently present within City right-of-way. Environmental Status: Exempt from CEQA pursuant to Section 15301. Strategic Plan Goal: Improve long-term financial sustainability Attachment(s): 1. Ordinance No. 4008, "An Ordinance of the City of Huntington Beach Amending Ordinance No. 2615 Which Granted An Oil Pipeline Franchise" 2. "Franchise Agreement Between the City of Huntington Beach and Paramount Petroleum Corporation" 3. Faithful Performance Bond 4. Insurance Certificate HB -547-Item 18. -2 329 ORDINANCE NO. 4008 ----- AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING ORDINANCE NO. 2615 WHICH GRANTED AN OIL PIPELINE FRANCHISE WHEREAS, in 1983 the City Council adopted Ordinance No. 2615 which granted a franchise for the construction, operation and maintenance of a pipeline for the transp01iation of oil; and Paramount Petroleum Corporation subsequently became successor m interest as the franchisee, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. The terms and conditions of the franchise awarded by this ordinance are contained in the Franchise Agreement between the City of Huntington Beach and Paramount Petroleum Corporation, a copy of which is attached hereto as Exhibit "A" and incorporated by this reference as though set fo1ih herein. SECTION 2. The City Clerk shall cause this 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, semi-weekly or weekly newspaper, published in the County of Orange or the City and circulated in the City, which is selected by the City Council for that purpose. SECTION 3. This ordinance shall become effective 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 3rd day of February , 20J..L. t4.5ti Lr• r . Mayor 07-1267.007/84054.doc 330 0 PARAMOUNT I PETROLEUM Huntington Beach City Clerk 2000 Main Street Huntington Beach, CA 92648 Re: Pipeline Franchise Agreement Huntington Beach, California To Whom It May Concern, A ':.!!,JI-U S A February 14, 2014 12700 Park Central Dr. Suite 1600 Dallas, TX 75251 Pursuant to Section 21 of the Franchise Agreement between the City of Huntington Beach and Paramount Petroleum Corporation ("PPC"), PPC hereby accepts the franchise and will comply with the terms and conditions of the Franchise Agreement. ,_""'n;..,.ce-re~__,..------ J ames A. Ranspot Senior Vice President & General Counsel 331 FRANCHISE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND PARAMOUNT PETROLEUM CORPORATION THIS FRANCHISE AGREEMENT (this "Franchise") is made and entered into this day off@. Ii, 2014 by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California (hereinafter referred to as "City" or "Grantor"), and PARAMOUNT PETROLEUM CORPORATION, a Delaware corporation (hereinafter referred to as "PARAMOUNT PETROLEUM" or "Grantee"), pursuant to the City's "Pipeline Franchise Ordinance" as set forth in Chapter 3.44 of the Huntington Beach Municipal Code (Section 3.44.010, et seq.). RECITALS 1. By Ordinance No. 315, the Orange County Board of Supervisors granted a franchise for the construction, operation and maintenance of a pipeline system for the transportation of oil, gas and other hydrocarbon substances. 2. Subsequently, the City was vested with the rights and benefits of the County of Orange under said franchise. 3. Since then, there have been transfers and assignments, including litigation and settlements regarding rights and remedies of the subject pipeline system. 4. This Ordinance and Franchise Agreement in part will remedy unpaid fees and corrects the record as to the pipelines depicted in Exhibit A and clearly sets out future franchise fees and requirements as to the pipelines contained therein. 5. The City's consent to the assignment and amendment of any previous franchise agreement as to the pipelines depicted in Exhibit A is granted upon and subject 13-3702/103161 1 332 to the rules, regulations, restrictions, terms and conditions of the City's Pipeline Franchise Ordinance set forth in Chapter 3 .44 of the Huntington Beach Municipal Code (HBMC). NOW, THEREFORE, the City and PARAMOUNT PETROLEUM agree as follows: SECTION 1. DEFINITIONS. Whenever in this ordinance the words or phrases hereinafter in this section defmed are used, they shall have the respective meaning assigned to them in the following definitions (unless, in the given instance, the context wherein they are used shall clearly import a different meaning). (a) The word "grantee" shall mean PARAMOUNT PETROLEUM and its lawful successors or assigns; (b) The word "City" shall mean the City of Huntington Beach, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form; (c) The word "streets" shall mean the public streets, ways, alleys and places as the same now or may hereafter exist within the City, including state highways, now or hereafter established within the City, and freeways hereafter established within the City; ( d) The word "franchise" shall mean and include any authorization granted hereunder in terms of a franchise, privilege, permit, license or otherwise to construct, maintain and use pipes and appurtenances for the business of transmitting and distributing oil for all purposes under, along, across or upon the public streets, ways, alleys and places in the City, and shall include and be in lieu of any existing or future City requirement to obtain a license or permit for the privilege of transacting and carrying 13-3702/103161 2 333 on a business within the City; (e) The phrase "pipes and appurtenances" shall mean pipes, pipelines, mains, services, traps, vents, cables, conduits, vaults, manholes, meters, appliances, associated communications infrastructure, attachments, appurtenances, and any other property located or to be located in, upon, along, across, or under property of the City, and used or useful in the transmitting and/or distributing of oil; (f) The word "oil" shall mean natural or manufactured oil, or a mixture of natural and manufactured oil; (g) The phrase "construct, maintain, and use" shall mean to construct, erect, install, lay, operate, maintain, use, repair, or replace; and (h) The phrase "gross annual receipts" shall mean gross operating receipts received by Grantee from the sale of oil to Grantee's customers less uncollectible amounts and less any refunds or rebates made by Grantee to such customers pursuant to California Public Utilities Commission orders or decisions. SECTION 2. PURPOSE and GRANT That the right, privilege and franchise, subject to each and all of the terms and conditions contained in this Agreement, and pursuant to the provisions of 6231 of the Public Utilities Code of the State of California, and Huntington Beach Municipal Code 3.44.040 be and the same is hereby granted to Grantee to construct, maintain and use pipes and appurtenances for transmitting and distributing oil for any and all purposes, under, along, across or upon the streets of the City. The City hereby grants to Grantee the right, privilege and franchise to lay, construct, maintain, operate, renew, repair, change the size of, remove or abandon in place one or more existing pipes and pipelines for the collection, transportation or distribution of oil, water, gas, gasoline, petroleum, wet gas, 13-3702/103161 3 334 or other hydrocarbon substances, together with all manholes, valves, appurtenances and service connections necessary or convenient for the operation of said pipes or pipelines including conduits, cathodic protection devices, wires, cables and other appurtenances necessary or convenient for the exercise of Grantee's business, in, under and along certain streets, roads, highways, alleys, lanes and other public ways within City as herein designated or as may subsequently be authorized pursuant to Section 3.44.330 of the HBMC. SECTION 3. APPLICATION OF GRANT This Amendment and the Franchise Agreement shall apply to that portion of the pipeline system within the territorial limits of City in existence on the date this Agreement is approved by the City Council as follows: Six-inch oil pipeline as follows: 39,425 linear feet of six inch oil pipeline running from Golden West and Garfield to Huntington Beach Terminal as depicted on those certain alignment drawings titled Gold West Refining Company and comprised of drawing numbers 5522-2, sheet 1 of 3 and 5522-3, sheet 2 of 3 (Exhibit B). Running from Huntington Beach to Santa Fe Springs as depicted on those certain alignment drawings titled Gulf Oil Company-U.S. and comprised of drawing numbers 3347, sheet 7 of 9 and sheet 8 of9 (Exhibit B). Ten-inch oil pipeline as follows: 7,409 linear feet of ten inch oil pipeline running from Huntington Beach to Santa Fe Springs as depicted on those certain alignment drawings titled Gulf Oil Company-U.S. and comprised of drawings number 3347, sheet 9 of 9 (Exhibit B) and in the City of Huntington Beach, Gold West Refining Company comprised of drawing number 7133, sheet 1 of 2 (Exhibit B). 13-3702/103161 4 335 Twelve-inch oil pipeline as follows: 39,584 linear feet of twelve inch oil pipeline running from Huntington Beach to Santa Fe Springs as depicted on those certain alignment drawings titled Golden West Refining Company and comprised of drawing numbers 4978, sheets 2 of 19, 3 of 19, 4 of 19 and 5 of 19 (Exhibit B). SECTION 4. INCORPORATION OF OIL PIPELINE FRANCHISE ORDINANCE The City's grant of this Franchise Agreement is granted upon and subject to the rules, regulations, restrictions, terms and conditions of the City's "Pipeline Franchise Ordinance" as recently amended and set forth in Chapter 3.44 of the HBMC, a copy of which is attached hereto as Exhibit "C," and incorporated herein by this reference. All references in this Franchise Agreement to specific sections of the HBMC are references to those sections as they now exist and are reflected in said Exhibit "C." The words and phrases in this Franchise Agreement shall have the identical meaning as provided in Section 3.44.040 of the HBMC. If any terms referenced in the Franchise Agreement or the HBMC are in conflict with this Amendment the terms of this Amendment shall govern, followed by the HBMC, followed by the Franchise Agreement, except that any term more protective of the City's rights and remedies shall govern regardless of which agreement or code sections are thereby referenced. SECTION 5. TERM Said franchise shall be for a ten (10) year term from and after the effective date hereof; and shall endure in full force and effect thereto, or until the state or some municipal or public corporation thereunto duly authorized by law shall purchase by voluntary agreement or shall condemn and take under the power of eminent domain, all 13-3702/103161 5 336 property actually used and useful in the exercise of said franchise and situate in the territorial limits of the state, municipal, or public corporation purchasing or condemning such property, or until said franchise shall be forfeited for non-compliance with its terms by the Grantee. SECTION 6. COMPENSATION TO CITY Grantee shall pay the following fees to the City with respect to the rights and privileges granted to Grantee hereunder: 6.1 Base Granting Fee. Grantee shall pay the City the sum of Eleven Thousand Four Hundred Seventy Dollars ($11,470.00) as a one-time base granting fee within thirty (30) days following the execution of this Agreement. 6.2 Base Annual Fee and Adjustments and Reinstatement Fee. In addition to all fees provided herein, the Grantee shall pay $639,753.92 in a Reinstatement Fee that shall cover past due fees including penalties and interest until December 31, 2013. Reinstatement Monthly Payments may be paid in one month installment payments of $5,331.28 per month for a consecutive 120 month period. The amount shall be paid pursuant to the schedule set forth in Exhibit D attached hereto and incorporated herein. Beginning January 1, 2014, a base annual fee shall be paid within thirty (30) days after the end of each calendar year during the term of the Franchise Agreement, as amended herein, as follows: 13-3702/103161 6 337 Pi11eline Size Length (A) Fee (B) Fee Formula and TYJ!e (in feet) 11er linear foot 6" oil 39,425' $0.895 x CPI (A1) X CB1) adjustment 1 0" oil 7,409' $1.485 x CPI (A2) x (Bi) adjustment 12" oil 39,584' $1.787 x CPI (A3) X (B3) adjustment 86,418' See HBMC Section 3.44.290 when calculating annual adjustments to the Base Annual Fee using the Consumer Price Index-Los Angeles-Riverside-Orange County area (1982- 1984=100). The base annual fee shall be subject to proration pursuant to Section 3.44.300 of the HBMC (HBMC fee). The base annual fee shall be 75% of the total amount provided in the HBMC Section 3.44 for the full term of this Franchise Agreement beginning January 1, 2014 through December 31, 2023 because of the inactive status of the pipeline. In the event the Grantee activates the pipeline and begins to reuse said lines for oil or other product distribution, the grantee shall immediately notify the City and agrees to pay the full HBMC fee including annual adjustments set forth in the HBMC. If the Grantee activates the line and does not inform the City, Grantee shall pay a penalty each month the line(s) is active in the amount of 75% of the existing HBMC franchise fee in addition to the fee itself. 6.3. Base Construction Charges. Pursuant to HBMC Section 3.44.280, Grantee shall pay at the time of installation, relocation or replacement of any pipeline or other facility covered by the Franchise Agreement, a base construction charge established, and amended from time to time, by resolution of the City Council. 13-3702/103161 7 338 6.4 Payments to City. Payment is due thirty (30) days after the City's invoice date and a ten percent (10%) per month late penalty or fraction thereof beyond the payment date shall be charged, but in no event shall said penalty exceed fifty (50) percent. In addition an eighteen percent (18%) annual interest cost will be charged for any delinquent payment. The City will also withhold any permits and/or not renew licenses if any payment is delinquent. Payments should be mailed to the City Treasurer, City of Huntington Beach, P. 0. Box 711, Huntington Beach, CA 92648-0711. HBMC Section 3.44.290 shall govern when calculating annual adjustments to the Base Annual Fee using the Consumer Price Index-Los Angeles-Riverside-Orange County area (1982-1984=100). The base annual fee shall be subject to proration pursuant to Section 3.44.300 of theHBMC. SECTION 7. FAITHFUL PERFORMANCE BOND On or before the effective date of this Amendment, Grantee shall file and thereafter at all times during the term of the Franchise Agreement keep on file with the City Treasurer a corporate surety bond approved by the City Attorney running to the City in the penal sum of One Hundred Thousand Dollars ($100,000). In the event that said bond, after it has been so filed, shall at any time during the term of the Franchise Agreement become insufficient, in the sole opinion of the City Council, Grantee agrees to renew said bond within ten (10) days after written notice to do so from the City Treasurer. At such time, the bond shall be increased by a rate set forth by the City Council, with a surety to be approved by the City Attorney, conditioned that Grantee shall well and truly observe, fulfill and perform each condition of the Franchise 13-3702/103161 8 339 Agreement, as amended, and that in case of any breach of condition of the bond the whole amount of the penal sum shall be deemed to be liquidated damages and shall be recoverable from the principal and sureties of the bond. If said bond is not filed prior to the effective date of this Amendment, the approval of this Amendment may be denied and the ordinance granting the Franchise Agreement repealed at any time prior to the filing of said bond and any money paid. SECTION 8. OTHER FRANCHISES This grant is made in lieu of all other oil utility franchises or leased easement agreements owned by the Grantee, or by any successor of the Grantee to any rights under this franchise, for transmitting and distributing oil within the limits of the City, as said limits now or may hereafter exist, and the acceptance of the franchise hereby granted shall operate as an abandonment of all such oil utility franchises, leases or easements within the limits of this City, as such limits now or may hereafter exist, in lieu of which this franchise is granted. SECTION 9. OBLIGATIONS OF GRANTEE (a) All facilities or equipment of Grantee shall be constructed, installed and maintained in accordance with and in conformity with all of the ordinances, rules and regulations heretofore, or hereafter adopted by the legislative body of this City in the exercise of its police powers and not in conflict with the paramount authority of the State of California, and, as to state highways, subject to the provisions of the general laws relating to the location and maintenance of such facilities. (b) If any portion of any street shall be damaged by reason of defects in any of the pipes and appurtenances maintained or constructed under this grant, or by reason of 13-3702/103161 9 340 any other cause arising from the operation or existence of any pipes and appurtenances constructed or maintained under this grant, Grantee shall, at its own cost and expense, immediately repair any such damage and restore such portion of such damaged street to as good condition as existed before such defect or other cause of damage occurred. ( c) The Grantee shall pay to the City, on demand, the cost of all repairs to public property made necessary by any operations of the Grantee under this franchise. ( d) Grantee shall indemnify, save, and hold harmless, City and any officers and employees thereof against and from all damages, judgments, decrees, costs and expenditures which City, or such officer or employee, may suffer, or which may be recovered from, or obtainable against City, or such officer or employee, for, or by reason of, or growing out of or resulting from the exercising by Grantee of any or all of the rights or privileges granted hereby, or by reason of any act or acts of Grantee or its servants or agents in exercising the franchise granted hereby, and Grantee shall defend any suit that may be instituted against City, or any officer or employee thereof, by reason of or growing out of or resulting from the exercise by Grantee of any or all of the rights or privileges granted hereby, or by reason of any act or acts of Grantee, or its servants or agents, in exercising the franchise granted hereby. SECTION 10. REMOVE OR RELOCATE FACILITIES (a) City reserves the right for itself to lay, construct, erect, install, use, operate, repair, replace, remove, relocate or maintain below surface or above surface improvements of any type or description in, upon, along, across, under or over the streets of the City. City further reserves the right to lawfully change the grade, alignment or width of any street. If the necessary exercise of the aforementioned reserved rights 13-3702/103161 341 conflicts with any pipes and appurtenances of Grantee constructed, maintained, and used pursuant to the provisions of the franchise granted hereby, Grantee shall, without cost or expense to City within ninety (90) days after written notice from the City Manager, or his designated representative, and request so to do, begin the physical design and field construction of changing the location of all facilities or equipment so conflicting. Grantee shall proceed promptly to complete such required work. (b) Irrespective of any other provision of this ordinance, Grantee's right to construct, maintain, and use, or remove pipes and appurtenances thereto shall be subject at all times to the right of the City, in the exercise of its police power, to require the removal or relocation of said pipes and appurtenances thereto at the sole cost and expense of Grantee, except (1) as the law may otherwise provide or, (2) except where Grantee's right to possession is pursuant to instruments evidencing right-of-way, easements or other interest in real property, or (3) except where the removal or relocation is made at the request of the City on behalf of or for the benefit of any private developer, CalTrans, or other third party. (c) In the event that the City is made aware of a project developed by a governmental agency, water company, private party or the City that would be located within five hundred feet of a regulator station or other major oil facilities, City shall notify Grantee and initiate discussions among the implicated parties in order to assess potential economic and community impacts and facilitate coordinated and economically reasonable outcomes. 13-3702/103161 11 342 SECTION 11. TRANSFER OR SALE OF FRANCHISE This franchise may not be transferred (voluntarily, involuntarily, or by operation of law), leased or assigned by the Grantee except by written consent of the City Council, which may be withheld or conditioned at the City's sole discretion, and unless the transferee or assignees thereof shall agree to be bound by the terms and conditions of this Agreement. Grantee of the franchise granted hereby shall file with the City Manager and the legislative body of the City within thirty (30) days after any sale, transfer, assignment or lease of this franchise, or any part thereof, or of any of the rights or privileges granted thereby, written evidence of the same, certified thereto by the Grantee or its duly authorized officers. SECTION 12. FORFEITURE This franchise is granted upon each and every condition herein contained. Nothing shall pass by the franchise granted hereby to Grantee unless it be granted in plain and unambiguous terms. Each of said conditions is a material and essential condition to the granting of the franchise. If Grantee shall fail, neglect or refuse to comply with any of the conditions of the franchise granted hereby, and if such failure, neglect or refusal shall continue for more than thirty (30) days after written demand by the City Manager for compliance therewith, then City, by the City Council, in addition to all rights and remedies allowed by law, thereupon may terminate the rights, privilege, and franchise granted in and by this ordinance, and all the rights, privileges and the franchise of Grantee granted hereby shall thereupon be at an end. Thereupon and immediately, Grantee shall surrender all rights and privileges in and to the franchise granted hereby. No provision herein made for the purpose of securing the enforcement of the terms and conditions of the franchise granted hereby shall be deemed an exclusive remedy or to 13-3702/103161 12 343 afford the exclusive procedure for the enforcement of said terms and conditions, but the remedies and procedure outlined herein or provided, including forfeiture, shall be deemed to be cumulative. SECTION 13. LIABILITY INSURANCE The policy of liability insurance required by HBMC Chapter 3.44 shall be issued to Grantee and name the City and its officers, agents, and employees as additional insureds. It shall further indemnify for all liability for personal and bodily injury, death and damage to property arising from activities conducted pursuant to the Franchise Agreement by providing coverage thereof, including but not limited to: (a) Negligent acts or omissions of Grantee and the agents, servants and employees thereof, committed in the conduct of operations under the Franchise Agreement. (b) Provide combined single limit liability insurance in the amount of five million dollars ($5,000,000). (c) Be noncancellable without thirty (30) days written notice thereof directed to the City. SECTION 14. ENVIRONMENTAL IMPAIRMENT LIABILITY INSURANCE The policy of environmental impairment liability insurance or other environmental insurance policy as approved at the sole discretion of the City as required by HBMC Chapter 3.44 shall insure liability for environmental impairment including cleanup cost endorsed for "Sudden and Accidental" contamination or pollution. Such coverage shall be in an amount and form to meet all applicable state and federal requirements but in no event less than five million dollars ($5,000,000) per occurrence. 13-3702/103161 13 344 (a) If written with an annual aggregate limit, the policy limit must be three (3) times the above-required occurrence limit. (b) If written on a claims made form, such insurance shall be endorsed to provide an extended reporting period of not less than two (2) years following termination or cancellation of the Franchise Agreement. SECTION 15. WORKERS' COMPENSATION INSURANCE The policy of workers' compensation insurance, shall: (a) Have been previously approved as to substance and form by the California Insurance Commissioner. (b) Cover all employees of Grantee who in the course and scope of their employment conduct or do work involving operations under the Franchise Agreement. ( c) Provide for every benefit and payment presently or hereinafter conferred by Division 4 of the Labor Code of the State of California upon an injured employee, including vocational rehabilitation and death benefits. (d) Be noncancellable without thirty (30) days written notice thereof directed to the City. SECTION 16. INSURANCE POLICY REQUIREMENT Grantee shall file with the City prior to commencement of any franchise operations either certified copies of said policies or a certificate of insurance for each of the required policies executed by the company issuing the policy, certifying that the policy is in force and providing the following information: (a) The policy number. (b) The date upon which the policy will become effective and the date upon which it will expire. 13-3702/103161 14 345 (c) (d) (e) (f) (g) The names of the insured and any additional insureds. Subject of the insurance. The type of coverage provided by the insurance. Amount of limit of coverage provided by the insurance. A description of all endorsements that form a part of the policy. (h) In addition to the insurance requirements in this section the insured shall also agree to defend, indemnify and hold harmless City against loss, damage or expense by reason of any suits, claims, demands, judgments caused by insured in the performance of the franchise as provided in HBMC Chapter 3.44. Any franchise operation shall not commence until Grantee has complied with the aforementioned provisions of this section, and any such operation shall be suspended during any period that Grantee fails to maintain said policies in full force and effect. SECTION 17. FORCE MAJEURE The obligations of any party hereunder, other than the obligation to pay money, shall be suspended for so long as such party is unable, in whole or in part, to carry out its obligations under this Amendment and the Franchise Agreement by reason of an act of God, strike, walkout or other industrial disturbance, act of the public enemy, war, blockade, public riot, lightning, fire, storm, flood, explosion governmental action, governmental delay, restraint or inaction, the unavailability of equipment or materials, or any other cause, whether similar or dissimilar to the types specifically enumerated above, which is beyond the reasonable control of the party claiming the right to suspend its obligations. Such affected party shall provide prompt written notice to the other of the details of the "force majeure," and shall use all reasonable diligence to remove, eliminate or otherwise minimize the force majeure situation as quickly as is practicable. Nothing herein contained shall require a party to settle a labor dispute contrary to the wishes of such party. 13-3702/103161 15 346 SECTION 18. ACQUISITION AND VALUATION The franchise granted hereunder shall not in any way or to any extent impair or affect the right of the City to acquire the property of the Grantee hereof either by purchase or through the exercise of the right of eminent domain, and nothing herein contained shall be construed to contract away or to modify or to abridge, either for a term or in perpetuity, the City's right of eminent domain in respect to the Grantee; nor shall this franchise ever be given any value before any court or other public authority in any proceeding of any character in excess of the cost to the Grantee of the necessary publication and any other sum paid by it to the City therefor at the time of the acquisition thereof. SECTION 19. PUBLICATION COSTS The Grantee of said franchise shall pay to the City a sum of money sufficient to reimburse it for all publication expenses incurred by it in connection with the granting thereof, such payment to be made within thirty (30) days after the City shall have furnished such Grantee with a written statement of such expenses. SECTION 20. EFFECTIVE DATE The franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by the Grantee with the City Clerk. When so filed, such acceptance shall constitute a continuing agreement of the Grantee that if and when the City shall thereafter annex or consolidate with additional territory, any and all franchise rights and privileges owned by the Grantee therein shall likewise be d~emed to be abandoned within the limits of the additional territory. 13-3702/103161 16 347 SECTION 21. WRITTEN ACCEPTANCE After the publication of the ordinance related to this Franchise, the Grantee shall file with the City Clerk a written acceptance of the franchise hereby granted, and an agreement to comply with the terms and conditions hereof. SECTION 22. PUBLICATION The City Clerk shall certify to the adoption of this ordinance, and within fifteen (15) days after its adoption, shall cause the same (with a list of the councilmembers voting for and against) to be published in the Huntington Beach Independent, a newspaper of general circulation published and circulated in the City. SECTION 22. AUDIT OF RECORDS The City Treasurer, or any certified public accountant, or qualified person designated by the City, at any reasonable time during business hours, may make an examination at the Grantee's office of its books, accounts, and records, germane to and for the purpose of verifying the data set forth in the statement required by Section 4(b) and for any other purpose relating to the rendition of oil service by the Grantee within the City, or the charges to be made. IN WITNESS WHEREOF, the parties hereto have caused this Franchise Agreement to be executed by and through their authorized offices the day, month and year first above written. 13-3 702/103161 17 348 PARAMOUNT PETROLEUM CORPORATION By: l fVJhhf"ll:::} 0~/v- print name ITS: (circle one) Chairman/Preside@resideny AND By:_~~,--=----=...._.).__' ~Q~--:/e.'---"-.-t-L----- Sht..." fi v e-n print name ------. ~cle one) Secret~e~Financjg!) ~jtsst. Secretary -Treasurer REVIEWED AND APPROVED: CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor City Clerk INITIATED AND APPROVED: Assistant City Manager APPROVED AS TO FORM: City Manager GB CityAttomey UAJ l/~fq,_,J 3 ~.1~-(~ Exhibits: A. Depiction of Pipeline System B. Pipeline Network Alignment Drawings COUNTERPART C. HBMC Chapter 3.44 D. Reinstatement Monthly Payment Schedule 13-3 702/103161 18 349 PARAMOUNT PETROLEUM CORPORATION By: _____________ _ print name ITS: (circle one) Chairman/PresidenWice President AND print name ITS: (circle one) Secretary/Chief Financial Officer/Asst. Secretary -Treasurer Exhibits: A. Depiction of Pipeline System B. Pipeline Network Alignment Drawings C. HBMC Chapter 3.44 CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California ~ City Attorney ~-l°l-l3 COUNTERPART D. 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'(~•· IU~s,f~-tlliA.vJNg•:·• 35 9 () \-=-_,,,4 .t :=.,. -- I ,,=ac.•n.:~-.1::,.~.'-··-- ··r.··· ;·.'(,: WE-:,T\v'\IN5TE-R l2"ol!Q_~R_ --------------Ave·~-----"= ,gr_.-.:-,. ~~~----,~-~ •Tt o~1,..p~FJi;/E,~::,n~· -- N--t--- ::o·.,.,.•.iV:~~r1:-,-,,1,_ k<i> --="----==--'-= ~--o=,;_~12'_'011 GWR "- . ;r:---::::1,:;e-e,c<, • ' -,~-J _..{._ -~_.,;,", AVf": . HIJi,..llil--lG"'iC',)\·i 1:,c;,sc.1-1 NOTl='S:. {I) ~11<:l:C:'T WLOTl'l'E., \"•.50 1 (o>-----.-. ,2~ Pr~~- (311i·1..1r,.1m, 10:. :::,0Y\ll<,t.,1c. o:.on.,c.o. (,4) lli1>,.;l'-Q"-'1-2. ~-~2.•~ 1N:l.TAU.SC,.ll/-s7, fSJ GWR •~ofden'ijt,.~-~Rtdln/~9 Co. ___ ,,/ . IN•Ji.illl11: QAUN~_O~WINGS ~:•f._ -· .. :~. 360 I /1 I EX/f-1811 L- Chapter 3.44 PIPELINE FRANCHISES (2319-10/78, 2676-2/84, 3850-1/10, 3889-9/10) Sections: I. GENERAL PROVISIONS AND DEFINITIONS 3.44.010 Short Title 3.44.020 General Provisions 3.44.025 Franchise Required When 3.44.030 Pole Lines 3.44.040 Definitions 3.44.050 Term 3.44.060 Acceptance of Franchise Agreement 3.44.070 Nonexclusive Franchise 3.44.080 Maps 3.44.090 Repealed-Ordinance No. 3889-9/10 3.44.100 Liability Insurance 3 .44.105 Environmental Impairment Liability Insurance 3.44.110 Workers' Compensation Insurance 3.44.120 Insurance--Filing 3.44.130 Faithful Performance Bond 3.44.140 Repealed-Ordinance No. 3889-9/10 3.44.150 Repealed-Ordinance No. 3889-9/10 3.44.160 Forfeiture 3.44.170 Value of Franchise 3 .44.180 State Highways 3.44.190 Eminent Domain 3 .44.200 Publication Date 3.44.210 Assignment 3.44.220 Hold Harmless 3.44.230 Standards 3 .44.231 Conflicting Improvements 3.44.240 Defective Facilities 3.44.250 Hazardous Substances 3.44.251 Damage to Public Property Generally II. COMPENSATION 3 .44.252 Public Utility Not Transmitting Oil or Products Thereof 3.44.253 Length 3.44.255 Public Utility Transmitting Oil or Products Thereof 3.44.256 Non-Public Utility Franchises 3.44.260 Basic Granting Fee 3.44.270 Base Annual Fee 3.44.271 Payments to City 3.44.280 Base Construction Charges 3.44.290 Adjustments--Base Annual Fee 3.44.300 Proration of Payments 3 .44.310 Records III. CONSTRUCTION 3.44.320 Construction Requirements 3.44.330 New Installation or Replacement 3 .44.340 Permits City of Huntington Beach Municipal Code 9/15/10 Chapter 3.44 Page 1 of 16 361 3.44.350 3.44.360 3.44.370 3.44.371 3.44.380 3.44.386 3.44.390 3.44.400 3.44.410 3.44.420 3.44.430 3.44.440 3.44.447 Work On and Restoration of Streets Failure to Comply Timely Completion Statement Responsibility Facilities Shoring Ordinary Repair Breaks or Leaks Emergency Equipment Removal or Abandonment of Facilities Failure to Comply Abandonment "In Place" Conditions Operation After Franchise Expiration -Revocable License IV. SPECIAL PROVISIONS FOR PETROLEUM PIPELINES 3 .44.450 Rights Granted 3.44.460 Materials Used 3.44.470 Approvals 3.44.480 Reports 3.44.490 Payments Due 3.44.500 Cost of Relocation I. GENERAL PROVISIONS AND DEFINITIONS 3.44.010 Short Title. This chapter shall be known and cited as "Pipeline Franchise Ordinance." (2319-10/78) 3.44.020 General Provisions. Every franchise hereafter granted by the City to lay, construct, maintain, operate, renew, repair, change the size of, remove or abandon in place pipes and pipelines for the collection, transportation or distribution of oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, or other substances, together with all manholes, valves, appurtenances and service connections necessary or convenient for the operation of said pipes or pipelines including conduits, cathodic protection devices, wires, cables and other appurtenances necessary or convenient for the exercise of the franchisee's business, in, under, along or across any and all streets within the City of Huntington Beach except as otherwise provided in the particular franchise agreement, shall be granted upon and be subject to the rules, regulations, restrictions and terms and conditions of this chapter, in addition to those rules, regulations, restrictions, terms and provisions set forth in the particular franchise agreement. (2319-10/78, 3889-9/10) 3.44.025 Franchise Required When. It is unlawful for any person, firm or corporation to exercise any privilege or franchise to lay or maintain any pipes or conduits in or under any public street, or alley in the City, for the transmission of gas, water, heat, steam, or other substance or to exercise any franchise or privilege for the erection or maintenance, in or upon any public street or alley in the City, of any telephone, telegraph, electric light or power poles, wires, or system, or for the erection of any pole or wire for the purpose of transmitting electrical energy or current, without first having procured a franchise to do so unless such person, firm or corporation is entitled to do so by direct and unlimited authority of the Constitution of the state or the Constitution of the laws of the United States. (3850-1/10) 3.44.030 Pole Lines. Nothing in this chapter or in any franchise agreement granting such a franchise shall be construed to permit the grantee to construct new poles or other facilities aboveground. (2319-10/78) City of Huntington Beach Municipal Code 9/15/10 Chapter 3.44 Page 2 of 16 362 3.44.040 Definitions. For the purpose ofthis chapter, the following terms, phrases, words and their derivations shall have the meaning given herein: (a) "Council" shall mean City Council of the City of Huntington Beach. (3889-9/10) (b) 11 Code11 shall mean the Huntington Beach Municipal Code. (c) "Department" shall mean the Public Works Department of the City of Huntington Beach. (3889-9/10) (d) "Director" shall mean the Public Works Director of the City of Huntington Beach. (3889-9/10) (e) "Franchisee" or "grantee" shall mean the person to whom the franchise is granted, and any person to whom it is lawfully assigned. (f) "Facilities" or "appurtenances" shall mean all property owned or used by the franchisee, in connection with the franchise, including but not limited to, pipelines, pump stations, and service connection with the franchisee's facilities, whether installed by the franchisee as named or originally granted under this franchise or its predecessors or assignors, erected, constructed, laid, operated or maintained in, upon, over, under, along or across any street pursuant to any right or privilege granted by the franchise. (3889-9/10) (g) "Franchise payment period" shall mean the time period between the effective date of the franchise agreement granting the franchise and December 31 of the same calendar year, and each calendar year thereafter, during the life of the franchise. (3889-9/10) (h) "Franchise rep01t period" in all cases shall mean the time period between the effective date of the franchise agreement granting the franchise through and including December 31 of that calendar year, and each calendar year thereafter, during the life of the franchise. (3889-9/10) (i) "Highway" or "street" shall mean any public highway, freeway (except a state freeway), street, road, alley, lane or court or other public easement, and above and below the same, which now exists or which may hereafter exist in the City of Huntington Beach. (3889-9/1 0) (i) "Main" shall mean any pipeline or conduit laid in, along or approximately parallel with any street for the collection, transmission or distribution of any hydrocarbon substances. (k) "Major street" shall mean any street or portion thereof designated as a major secondary highway in the circulation element of the Huntington Beach General Plan. (1) "Minor street" shall mean all streets in the City other than those designated as "major" or "secondary highways" in the circulation element of the Huntington Beach General Plan. (3889-9/10) (m) "Person" shall mean any individual, person, firm, partnership or corporation. (n) "Section" shall mean a section of the Huntington Beach Municipal Code, unless some other code or statute is mentioned. ( o) "Service connection" shall mean the wire, pipes, or conduits connecting the building or place where the service or hydrocarbons supplied by the franchisee is used or delivered, or is made available for use or delivery, with the supply line or supply main in the highway or with such supply line or supply main on private property. (2319-10/78) (p) "Shall" is mandatory; "May'' is permissive. (3889-9/10) City of Huntington Beach Municipal Code 9/15/10 Chapter 3.44 Page 3 of 16 363 3.44.050 Term. Unless the franchise agreement granting the franchise provides otherwise, the term of the franchise shall be fifteen (15) years. (2319-10/78, 3889-9/10) 3.44.060 Acceptance of Franchise Agreement. The franchisee shall enter into a written agreement with the City of Huntington Beach which grants the franchise and sets forth the terms and provisions therein. The franchisee shall, within thirty (30) days after the passage of the ordinance granting the franchise, file with the City Clerk of the City of Huntington Beach a written acceptance of the terms and conditions of said ordinance. The franchise shall be null and void if the written acceptance is not filed within the prescribed time. (2319-10/78, 3889-9/10) 3.44.070 Nonexclusive Franchise. The granting of the franchise shall not be construed to prevent the City from granting identical or similar franchise to any person other than the franchisee. Nothing herein contained shall ever be construed so as to exempt the franchisee from compliance with all ordinances, rules or regulations of the City now in effect or which may be hereafter adopted which are not inconsistent with the terms of the franchise. (2319-10/78, 3889-9/10) 3.44.080 Maps. Within ninety (90) days following the date on which any facilities or appurtenances have been laid, removed or abandoned under the franchise, the franchisee shall file a map or maps with the Department showing the accurate 11 as built" location, depth, and size of the facilities or appurtenances so laid, removed or abandoned. (2319-10/78, 3889-9/10) 3.44.100 Liability Insurance. The policy ofliability insurance required by this chapter shall be issued to franchisee and name the City and its officers, agents, and employees as additional insureds. It shall further indemnify for all liability for personal and bodily injury, death and damage to property arising from activities conducted pursuant to the franchise by providing coverage thereof, including but not limited to: (3889-9/10) (a) Negligent acts or omissions of franchisee and the agents, servants and employees thereof, committed in the conduct of franchise operations. (b) Provide a combined single limit liability insurance in the amount of five million dollars ($5,000,000). (3889-9/10) ( c) Be noncancellable without thirty (30) days written notice thereof directed to the City of Huntington Beach. (2319-10/78, 3889-9/10) 3.44.105 Environmental Impairment Liability Insurance. The policy of environmental impairment liability insurance or other environmental insurance policy as approved at the sole discretion of the City as required by this Chapter shall insure liability for environmental impairment including cleanup cost endorsed for "Sudden and Accidental" contamination or pollution. Such Coverage shall be in an amount and form to meet all applicable state and federal requirements but in no event less than five million dollars $5,000,000 per occurrence. (3889-9/10) (a) If written with an annual aggregate limit, the policy limit should be three (3) times the above- required occurrence limit. (3889-9/10) (b) If written on a claims made form, such insurance shall be endorsed to provide an extended reporting period of not less than two (2) years following termination or cancellation of this franchise. (3889-9/1 0) 3.44.110 Workers' Compensation Insurance. The policy of workers' compensation insurance, required by this chapter, shall: (a) Have been previously approved as to substance and form by the California Insurance Commissioner. City of Huntington Beach Municipal Code 9/15/10 Chapter 3.44 Page 4 of 16 364 (b) Cover all employees of :franchisee who in the course and scope of their employment to conduct or do work pursuant to the franchise operations. (3889-9/10) ( c) Provide for every benefit and payment presently or hereinafter conferred by Division 4 of the Labor Code of the State of California upon an injured employee, including vocational rehabilitation and death benefits. (3889-9/10) (d) Be noncancellable without thirty (30) days written notice thereof directed to the City of Huntington Beach. (2319-10/78, 3889-9/10) 3.44.li0 Insurance--Filing. Franchisee shall file with the City Clerk prior to commencement of any franchise operations either ce1tified copies of said policies or a certificate of insurance for each of the required policies executed by the company issuing the policy, certifying that the policy is in force and providing the following information: (3889-9/10) (a) The policy number. (b) The date upon which the policy will become effective and the date upon which it will expire. ( c) The names of the insured and any additional insureds. (d) Subject of the insurance. ( e) The type of coverage provided by the insurance. (f) Amount of limit of coverage provided by the insurance. (g) A description of all endorsements that form a part of the policy. (h) In addition to the insurance requirements in this section the insured shall also agree to defend, indemnify and hold harmless the City of Huntington Beach against loss, damage or expense by reason of any suits, claims, demands, judgments caused by insured in the performance of the franchise as provided in Section 3.44.220. (3889-9/10) Any franchise operation shall not commence until franchisee has complied with the aforementioned provisions of this section, and any such operation shall be suspended during any period that franchisee fails to maintain said policies in full force and effect. (2319-10/78) 3.44.130 Faithful Performance Bond. On or before the effective date of the franchise agreement granting the franchise, franchisee shall file and thereafter at all times during the life of the franchise keep on file with the City Treasurer a corporate surety bond approved by the City Attorney running to the City in the penal sum of One Hundred Thousand Dollars ($100,000). In the event that said bond, after it has been so filed, shall at any time during the life of the franchise become insufficient, in the sole opinion of the City Clouncil, the franchisee agrees to renew said bond within ten ( 10) days after written notice to do so from the City Treasurer. At such time, the bond shall be increased by a rate set forth by City Council, with a surety to be approved by the City Attorney, conditioned that franchisee shall well and truly observe, fulfill and perform each condition of the franchise and that in case of any breach of condition of the bond the whole amount of the penal sum shall be deemed to be liquidated damages and shall be recoverable from the principal and sureties of the bond. If said bond is not filed prior to the effective date of the ordinance granting the franchise, the award of the franchise may be set aside and the ordinance granting the franchise repealed at any time prior to the filing of said bond and any money paid in consideration for said award of franchise shall be deemed forfeited. In the event that said bond, after it has been so filed, shall at any time during the life of the :franchise become insufficient, franchisee agrees to renew said bond, subject to the approval of the City Attorney, within ten (10) days after written notice to do so from the Director. (2319-10/78, 3889-9/10) City of Huntington Beach Municipal Code 9/15/10 Chapter 3.44 Page 5 of 16 365 3.44.160 Forfeiture. The :franchise is granted and shall be held and enjoyed upon each and every condition contained in the :franchise agreement, including such conditions contained herein as are incorporated by reference in said :franchise agreement, and shall be strictly construed against the grantee. Any neglect, failure or refusal to comply with any of the terms and provisions of the :franchise agreement shall constitute grounds for the suspension or forfeiture of the :franchise, shall give to the grantee not less than thirty (30) days notice in writing of any default thereunder. If the grantee does not, within the noticed period, begin the work of compliance or after such beginning does not prosecute the work with due diligence to completion, the Council may hold a hearing, at which the grantee shall have the right to appear and be heard, and thereupon the Council may determine whether such conditions are material and essential to the :franchise and whether the grantee is in default with respect thereto and may declare the :franchise suspended or forfeited. Notice of said hearing shall be given to the grantee by certified mail not less than five (5) days before said hearing. (2319-10/78) 3.44.170 Value of Franchise. The grantee of any franchise awarded to a public utility, by accepting the terms and conditions thereof, stipulates and agrees that in any proceeding for the purpose of adjusting the rates of the grantee, no greater value shall be placed upon the franchise than the actual cash paid therefor by the grantee. (2319-10/78) 3.44.180 State Highways. If any street or portion thereof becomes a state highway, except for the right to continue to collect franchise payments in such other rights as by law remain with the City, the state shall succeed to all rights reserved to the City by the franchise. (2319-10/78, 3889-9/10) 3.44.190 Eminent Domain. No franchise granted by the City shall in any way impair or affect the right of the City or any successor in authority to acquire the property of the grantee by purchase or condemnation, and nothing contained in such a franchise shall be construed to contract away, modify or abridge either for a term or in perpetuity the City's right of eminent domain in respect to any public utility. (2319-10/78, 3889-9/10) 3.44.200 Publication Costs. The grantee shall pay to the City within thirty (30) days after receiving a statement therefore, all advertising and publishing costs, including the cost of publishing the granting of the franchise, if necessary. (2319-10/78, 3889-9/10) 3.44.210 Assignment. The grantee shall not directly or indirectly sell, transfer, assign or lease the franchise or any part thereof, or allow any other person or entity to operate any pipeline or related facility subject to the :franchise, except with the written approval of the Council which may be withheld at its sole and absolute discretion. Such sale, transfer, assignment, or lease shall be made only by filing with the Council a copy of the duly executed instrument of such sale, transfer, assignment or lease and a written request for the consent of the Council to such sale, transfer, assignment or lease. If such duly executed instrument and such written request is not filed with the Council before the expiration of thirty (30) days after the effective date of such sale, transfer, assignment or lease, then, upon the expiration of said thirty (30) days, the :franchise shall be subject to forfeiture and the Council may, without notice, revoke the franchise. As a condition to the granting of consent to such sale, transfer, assignment or lease, the Council may impose such additional terms and conditions upon the franchisee and upon the grantee or assignee, which the Council may deem to be in the public interest. Such additional terms and conditions shall be expressed by Council resolution. Nothing herein contained shall be construed to grant to the grantee the right to sell, transfer, assign or lease the franchise, or any part thereof, except in the manner aforesaid. This section applies to any assignment, whether by operation of law, by a voluntary act of the grantee or otherwise and includes a transfer of more than fifty percent (50%) of the voting stock of any corporate grantee or the change in identity of any general partner of a franchisee which is a partnership, whether to a third party or to any subsidiary, parent, or affiliated agency of :franchisee. (2319-10/78, 3889-9/10) 3.44.220 Hold Harmless. The grantee shall be responsible to the City and shall defend, indemnify and hold harmless the City and its officers and employees :from all damages or liability City of Huntington Beach Municipal Code 9/15/10 Chapter 3.44 Page 6 of 16 366 arising from the use, operation or maintenance of the facilities erected, constructed, laid, operated or maintained thereunder. (2319-10/78, 3889-9/10) Franchisee 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 defense costs, and consequential damage or liability of any kind or nature, however caused, including those resulting from death or injmy to franchisee's employees and damage to franchisee's property, arising directly or indirectly out of the obligations or operations herein undertaken by franchisee, caused in whole or in pait by any negligent act or omission of the franchisee, any sub franchisees, anyone direcly or indirectly imployed by any of them or anyone for whose acts any of them may be liable, including but not limited to concurrent active or passive negligence, except where caused by the active negligence, sole negligence, or willful misconduct of the City. Franchisee shall conduct all defense at its sole cost and expense and City shall approve selection of franchisee's counsel. City shall be reimbursed 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 limitations upon the amount of indemnification to be provided by franchisee. (3889-9/10) 3.44.230 Standards. All facilities erected, constructed, laid, operated or maintained under the provisions of the franchise shall be erected, constructed, laid, operated or maintained in accordance with and conforming to all the ordinances, codes, rules and regulations now or hereafter adopted by or prescribed by the Council. (2319-10/78) 3.44.231 Conflicting Improvements. If the City or any other public entity constructs or maintains any storm drain, sewer structure, or other facility or improvement under or across any facility of the grantee maintained pursuant to the ordinance, the grantee shall provide at no expense to the City or other public entity such support as shall be reasonably required to suppo1t, maintain and protect grantee's facility. (3889-9/10) 3.44.240 Defective Facilities. If any pmtion of any street shall be damaged by reason of defective facilities laid or constructed under the franchise, the grantee shall, at its own expense, repair any such defect and put such street in as good condition as it was before such damage was incurred, to the satisfaction of the City. If the grantee, within ten (10) days after receipt of written notice from the City, instructing it to repair such damage, shall fail to commence to comply with such instructions, or, thereafter, shall fail diligently to prosecute such work to completion, then the City immediately may do whatever work is necessary to carry out said instructions at the cost and expense of the grantee, which cost and expense, by the acceptance of the franchise, the grantee agrees to pay upon demand. If such damage constitutes an immediate danger to the public health or safety requiring the immediate repair thereof, the City without notice may repair such damage and the grantee agrees to pay the reasonable cost thereof upon demand. (2319-10/78, 3889-9/10) 3.44.250 Hazardous Substances. Prior to the issuance of any excavation permit for the construction or installation of any pipeline for the transmission of flammable liquids or gases, written approval shall be obtained from the Director. Said approval may be withheld at the sole and absolute discretion of the Director. Said approval may be based on the determination that no undue fire hazard will be created to life or property in the areas through which the proposed pipeline will be located. To make such determination, consideration shall be given to: (3889-9/10) (a) Type of hydrocarbon to be transmitted. (b) Density of population or structural development in the area through which the pipeline will be located. ( c) Adequacy of water supplies for fire control purposes. City of Huntington Beach Municipal Code 9/15/10 Chapter 3.44 Page 7 of 16 367 ( d) Extent of available public fire protection facilities. (e) Number and location of shutoff valves in line. (2319-10/78) 3.44.251 Damage to Public Property Generally. Any damage done directly or indirectly to any public property by grantee, in exercising directly or indirectly any right, power, or privilege under this franchise, or in performing any duty under or pursuant to the provisions of this section, shall be promptly repaired by grantee at its sole cost and expense to as good a condition as it was befor such damage was incurred, and to the satisfaction of the Director. If the franchisee, within ten (10) days after receipt of written notice from the City, instructing it to repair such damage, shall fail to commence to comply with such instructions, or thereafter, shall fail to diligently prosecute such work to completion, the City immediately may do work necessary to carry out said instructions and the cost and expense of the franchisee, which cost and expense, by the acceptance of the franchise, the franchisee agrees topay upon demand. If such damage constitutes an immediate danger to the public health or safety requiring the immediate repair thereof, the City without notice may repair such damage and the franchisee shall pay all costs incurred. (3889-9/10) II. COMPENSATION 3.44.252 Public Utility Not Transmitting Oil or Products Thereof. The franchisee of any franchise awarded to a public utility or non-public utility not transmitting oil or products thereof, as consideration for such franchise, shall annually pay to the City in lawful money of the United States, within thirty (30) days after the end of each calendar year and during the life of the franchise for each and every year, including the year of granting the franchise a franchise fee negotiated as part of the franchise agreement (unless preempted by State Law) arising from the use, operation or possession of the franchise. (3889-9/10) 3.44.253 Length. Whenever the length of any wire, pipe or conduit is a factor in calculating any payment due under any franchise granted by the, all service connections shall be excluded in detennining such lengths. (3889-9/10) 3.44.255 Public Utility Transmitting Oil or Products Thereof. The franchisee of any franchise awarded for a pipeline transmitting oil or products thereof which has been detennined by the Public Utilities Commission to be a public utility, as consideration for such franchise, shall, within thirty (30) days after the end of each calendar year and during the life of the franchise for each and every year, including the year of granting the franchise, annually pay to the City in lawful money of the United States, a fee in the following amounts as required by State law. In the event these referenced fees increase pursuant to State law, the fees referenced herein shall increase by the same: (3889-9/10) Pipelines with an Internal Diameter of: 0-4 inches 6 inches 8 inches 10 inches 12 inches 14 inches 16 inches 18 inches 20 inches 22 inches 24 inches 26 inches 28 inches 30 inches (3889-9/10) City of Huntington Beach Municipal Code 9/15/10 Base Rate Per Lineal Foot .088 .132 .176 .220 .264 .308 .352 .396 .440 .484 .528 .572 .616 .660 Chapter 3.44 Page 8 of 16 368 For pipelines with an internal diameter not listed above, the fees shall be in the same proportion to the fees of a twelve (12)-inch-diameter pipe as the diameter of the unlisted pipe is to twelve (12) inches. (3889-9/10) The amount of the fee or charge provided for in this paragraph shall be multiplied by the Consumer Price Index, all Urban Consumers (CPI-U) for the Los Angeles-Riverside-Orange County Area for the month of September immediately preceding the month in which payment is due and payable, and divided by the Consumer Price Index, All Urban Consumers (CPI-U for the Los Angeles-Riverside-Orange County Area for June 30, 1989, (1982-84= 100.0)). (3889-9/10) 3.44.256 Non-Public Utility Franchises. The franchisee of any franchises awarded to other than a public utility transmitting oil or oil products thereof, as further consideration for such franchise including the extension, renewal, or continuation of a previously granted franchise, shall pay to the City in lawful money of the United States the following fees: (3889-9/10) 3.44.260 Basic Granting Fee. In the event of an initial grant of franchise or franchises which extend, renew, or continue previously granted franchises, a base granting fee shall be required as established, and amended from time to time, by resolution of the City Council. (2319-10/78, 2676-2/84) 3.44.270 Base Annual Fee. A base annual fee shall be paid by franchisee within thirty (30) days after the end of each calendar year including the year of granting the franchises, according to the franchise payment period as defined in this chapter, in the following amounts: (2319-10/78, 2676-2/84, 3889-9/10) Pipelines with an Internal Diameter of: Amount Per Lineal Foot 0-4 inches .590 6 inches .895 8 inches 1.197 10 inches 1.485 12 inches 1.787 14 inches 2.092 16 inches 2.377 18 inches 2.682 20 inches 2.984 22 inches 3.272 24 inches 3.574 26 inches 3.879 28 inches 4.164 30 inches 4.469 The base annual rate applicable to pipelines with an internal diameter falling between incremental size categories shall pay a rate determined by adding the price corresponding to the lower size to a figure computed by multiplying the difference between the higher and lower price times the multiplier. The multiplier will be determined by dividing the difference between the size of the pipe and the lower size category by the difference between the two size categories. In determining the number of feet of pipeline upon which the annual fee will be computed, the greatest number of feet of pipeline covered by the franchise during the calendar year for which payment is due will be utilized. The base annual fee shall be paid no later than 30 days and a penalty at the rate often (10) percent per month or fraction thereof beyond the payment date shall be charged, but in no event shall said penalty exceed fifty (50) percent. ( 3889-9/1 0) The City reserves the right to adjust the base fees established hereunder at any time after the effective date of the ordinance. (3889-9/10) City of Huntington Beach Municipal Code 9/15/10 Chapter 3.44 Page 9 of 16 369 3.44.271 Payments to City. Payment is due 30 days after the City's invoice date and a 10% per month late penalty and 18% annual interest cost will be charged for any delinquent payment. The City will also withhold any permits/not renew licenses if any payment is delinquent. Payments should be mailed to the City Treasurer, City of Huntington Beach, P.O. Box 711, Huntington Beach, CA 92648-0711. ( 3889-9/1 0) 3.44.280 Base Construction Charges. The holder of the franchise shall pay at the time of installation, relocation or replacement of any segment of pipe or pipeline, or any other facility covered by the franchise agreement, a base construction charge established, and amended from time to time, by resolution of the City Council. (2319-10/78, 2676-2/84) 3.44.290 Adiustments--Base Annual Fee. The amount of each base annual fee as specified in the above section shall be revised every year, in accordance with the following formula: (3889-9/10) (a) The Consumer Price Index, All Urban Consumers (CPI-U) for the Los Angeles-Riverside- Orange County area (1982-84= 100) as published by the United States Bureau of Labor Statistics ("Bureau"), shall be defined as the "index," and such index as it stands on August 1, 2010 shall be defined as the "base index" and the index for the month of September immediately preceding the fee payment date shall be defined as the "current index;" ( 3889-9/10) (b) If the current index differs from the base index, then the base annual fee shall increase or decrease by the percentage increase or decrease between the current index and the base index, provided that, if the current index drops below the base index, no adjustment shall be made. The base annual fee shall be multiplied by an adjustment factor dete1mined by dividing the current index by the base index. (3889-9/10) For example, if the base index is 185.0 and the current index is 190.5, the annual franchise fee shall be (i.e. 190.5/185.0 = 1.0297), times the base annual fee, provided however, under no circumstances shall the multiplying factor be less than one, nor shall the annual franchise fee calculated using said factor, be less than the base annual fee. If the Bureau shall revise the index, the parties hereto shall accept the method of revision for conversion recommended by the Bureau; and ( 3889-9/1 O) (c) If the Bureau discontinues the preparation or publication of the CPI-U, All Urban Consumers for the Los Angeles-Riverside-Orange County area (1982-84=100), and ifno transposition table prepared by the Bureau is available, then the amount of each annual franchise fee shall be computed by reference to such other price index as may be chosen by the City, and the City shall be the sole judge of comparability of successive indices and its determination on this point shall be final and conclusive. In no event shall the annual franchise fee adjustment by reference to such other price index be less than the base annual fee as set forth herein. ( 3889-9/10) ( d) Publication and Administrative Issuance Costs. The franchisee shall pay to the City within thirty (30) days after receiving a statement therefore, all administrative and other costs incurred by the City processing the application for a franchise, including but not limited to the preparation of any reports, statements or studies pursuant to the California Environmental Quality Act (Public resources Code Section 21000, et seq.) and any similar federal statute, or any successor statute, and for any and all advertising and publishing costs, including the cost of publishing the ordinance, if necessary, incurred in connection with the granting of the franchise. (3889-9/10) ( e) The base annual fee may also be amended from time to time by resolution of the City Council. ( 3889-9/1 o) City of Huntington Beach Municipal Code 9/15/10 Chapter 3.44 Page 10 of 16 370 3.44.300 Proration of Payments. In the event of abandonment of facilities with the approval of the City as elsewhere in this chapter provided, or in the event of removal of such facilities by the franchisee, or in the event of the grant of a franchise with an initial franchise payment period of less than one year, the annual franchise fee required under the aforementioned sections shall be prorated for the calendar year in which such removal or abandonment or grant occurs as of the end of the calendar month in which removed, abandoned or granted. (2319-10/78, 3889-9/10) 3.44.310 Records. Franchisee shall keep and preserve for a peiiod of five ( 5) years subsequent to the date of the most recent franchise fee determination all the records necessary to determine the amount of such franchise fee. At all reasonable times, the franchisee shall permit the City or its duly authorized representative to examine all property of the franchisee erected, constructed, laid, operated or maintained pursuant to the franchise, together with any appurtenant property of the franchisee, and to examine and transcribe any and all books, accounts, papers, maps, and other records kept or maintained by the franchisee or under its control which concern the operations, affairs, transactions, property or financial condition of the franchisee with respect thereto. Said records shall be made available to the City at a location in the County of Orange. (2319-10/78, 3889-9/10) III. CONSTRUCTION 3.44.320 Construction Requirements. Pipelines and appmtenances shall be constructed and maintained in a good workmanlike manner in conformity with applicable law and the terms and conditions of any City ordinance, rule or regulation now, or as hereafter amended, adopted or presciibed by the City. All pipes pipelines and appurtenances will be installed in accordance with the latest revision of the "American Standard Code of Pressure Piping ASA B31.4." (2319-10/78, 3889-9/10) 3.44.330 New Installation or Replacement. New installations or replacements of pipelines and appurtenances and all other facilities necessary for the installation, operation, maintenance, and safety of pipelines and conduits shall be laid and maintained only pursuant to applicable law and permit issued by the Department. All such installations or replacements shall be reviewed by the Director as to the most desirable location in the streets of the City and his decision shall be final and binding on the franchisee. (2319-10/78, 3889-9/10) 3.44.340 Permits. Where the provisions of any City ordinance, resolution or regulation, which shall be in force at that time, require the issuance of an excavation, encroachment or other type of permit, the franchisee shall not commence any excavation or encroachment work under the franchise until it shall have obtained such permit from the Department except in cases of emergency affecting public health, safety or welfare or the preservation of life or property, in which case the franchisee shall apply for such permit not later than the next business day. (3889-9/10) The application of the franchisee for such permit shall show the following facts: the length and proposed location of the pipeline and/or appurtenance intended to be installed, and such other facts as the Department may require. The franchisee shall pay any and all permit inspection fees required by the Department. (2319-10/78, 3889-9/10) 3.44.350 Work On and Restoration of Streets. The work of constructing, laying, replacing, maintaining, repaiiing or removing all pipelines and appurtenances authorized under the provisions of this chapter in, over, under, along or across any street shall be conducted with the least possible hindrance to the use of the street for purposes of travel. As soon as such work is completed, all portions of the street which have been excavated or otherwise damaged thereby shall promptly and in a workmanlike manner be repaired, replaced or restored and placed in as good condition as before the commencement of such work and shall be done to the satisfaction of the Director at the expense of the franchisee, and in accordance with the terms and conditions of any City ordinance, resolution or regulation. For streets that have been rehabilitated within three City of Huntington Beach Municipal Code 9/15/10 Chapter 3.44 Page 11 of 16 371 (3) years prior to the proposed work, the City shall require the resurfacing, or other treatment, of the entire lane widths of the street as directed by the Director. For those streets that have not been rehabilitated by the City within three (3) years prior to the proposed work, the restoration shall be in full compliance with City requirements. All restoration, repair or replacement work shall be done to the satisfaction of the Director at the expense of the franchisee in accordance with all applicable law. In the event that the franchisee shall fail or neglect to make such highway repair, replacement or restoration work, ten (10) days after notice therefore has been given franchisee by the Director, the City may repair, replace or restore said highway at the expense of franchisee. Franchisee agrees to pay to the City the cost of performing such work. The amount so chargeable shall be the direct cost of such work plus the current rate of overhead being charged by the City for reimbursable work. (2319-10/78, 3889-9/10) 3.44.360 Failure to Comply Timely. In the event that the franchisee fails to complete the work within the time specified in the permit, the City may require the franchisee to pay to the City not more than five hundred dollars ($500) per day as liquidated damages for each day construction extends beyond the time specified in the permit. (3889-9/10) Whenever the franchisee fails to complete any work required by the terms and provisions of the franchise, and the permits issued thereunder, within the time limits required thereby, the City may complete or cause to be completed any and all such work at the expense of the franchisee. The franchisee agrees to pay to the City the cost of performing such work. The amount so chargeable to franchisee shall be the direct cost of such work plus the current rate of overhead being charged by the City for reimbursable work. (2319-10/78, 3889-9/10) 3.44.370 Completion Statement. Upon the completion of the construction of any pipelines or other facilities constructed pursuant to said franchise, the franchisee shall submit a statement to the Director, identifying the permit or permits issued by the Department, the total length of pipeline, pipeline material, diameter of pipeline, the construction of which was authorized under such permit or permits, and the total length of pipeline or facilities actually laid and as-built drawings. (2319-10/78, 3889-9/10) 3.44.371 Responsibility. In addition to any indemnification set forth herein, franchisee shall be specifically responsible to the City and shall save the City, its officers, agents, and employees, free and harmless from all damages or liability arising from any damage or injury suffered by any person by reason of any excavation or obstruction being improperly guarded during any work authorized pursuant to the franchise or the failure to neglect of the franchisee to properly perform, maintain, or protect any phase of such work. ( 3889-9/1 0) 3.44.380 Facilities. The franchisee shall have the right to construct, maintain and repair such traps, manholes, conduits, valves, appliances, attachments and other facilities as may be necessary or convenient for the proper maintenance and operation of the pipelines under said franchise, and said facilities shall be kept flush with the surface of the street and so located as to conform to applicable law including any ordinance, resolution or regulation of the City, or of any permit issued by the Department in regard thereto and shall not interfere with the use of the street for travel. The franchisee shall have the right subject to such ordinances, resolutions and regulations as are now or may hereafter be in force, to make all necessary excavations in said street for the construction, maintenance and repair of said facilities; provided, however, that the franchisee shall first obtain an excavation permit from the Department for doing any such work. (2319-10/78, 3889-9/10) 3.44.386 Shoring. The franchisee shall provide at its sole cost such shoring or other support as shall be reasonably required to support, maintain, and protect franchisee's facilities in connection with any storm drain or sewer construction by the City or in connection with any facility constructed by City, or by any successor agency. (3889-9/10) 3.44.390 Ordinary Repair. The franchisee shall be privileged to excavate in the road or street for line repair for the number of days agreed upon by the franchisee and the Department City of Huntington Beach Municipal Code 9/15/10 Chapter 3.44 Page 12 of 16 372 provided, however, that the franchisee shall first obtain an excavation permit from the Department for the doing of any such work. (2319-10/78, 3889-9/10) 3.44.391 Relocation of Pipelines and Facilities. The City reserves the right to change the grade, to change the width or to alter or change the location of any street over which the franchise is granted. If any of the pipelines, facilities or appurtenances heretofore or hereafter constructed, installed or maintained by the franchisee pursuant to the franchise on, along, under, over, in, upon or across any street are located in a manner which conflict in any way with the change of grade, traffic needs, operation, maintenance, improvements, repair, construction, reconstruction, widening, alteration or relocation of the street, the franchisee shall relocate permanently or temporarily any such facility at no expense to the City upon receipt of a written request from the Director to do so, and shall commence such work on or before the day specified in such written request which date shall be not less than thirty (30) days from receipt of such written request. Franchisee shall thereafter diligently prosecute such work to completion. (3889-9/1 0) The City reserves the right for itself, and all other public entities which are now or may later be established, to lay, construct, repair, alter, relocated and maintain subsurface or other facilities or improvements of any type or description in a governmental but not proprietary capacity within the streets over which the franchise is granted. If the City or any other public entity finds that the location or relocation of such facilities or improvements conflicts with the facilities laid, constructed or maintained under the franchise, whether such facilities were laid before or after the facilities of the City or such other public entity were laid, the franchisee of such franchise shall at no expense to the City or public entity, on or before the date specified in a written request from the Director, which date shall be not less than thirty (30) days after the receipt of such notice and request to do so, commence work to change the location either permanently or temporarily of all facilities so conflicting with such improvements to a permanent or temporary location in said streets to be approved by the Director and thereafter diligently prosecute such work to completion. (3889-9/10) 3.44.400 Breaks or Leaks. If any portion of the street shall be damaged by reason of breaks or leaks in any pipe, conduit, or appurtenance constructed or maintained under the franchise, the franchisee thereof shall, at its own expense, immediately following written or oral notification thereof, promptly repair any such damage and put such street in as good condition as it was in before such damage or leak, all to the satisfaction of the Department. The franchisee shall obtain an excavation permit from the Department for the doing of any such work. (2319-10/78, 3889-9/10) 3.44.410 Emergency Equipment. At all times during the term of this franchise, the franchisee shall maintain or arrange for, on a twenty-four (24) hour a day basis adequate emergency equipment and a properly trained emergency crew within a radius of twenty-five (25) miles from any facilities installed or maintained pursuant hereto for the purpose of shutting off the pressure and the flow of contents of such facilities in the event of an emergency resulting from an earthquake, act of war, civil disturbance, fire, flood, or any other cause or nature whatsoever. (2319-10/78) 3.44.420 Removal or Abandonment of Facilities. (a) At the expiration, revocation or termination of this franchise or the permanent discontinuance of the use of all or a portion of its facilities, the franchisee shall, within thirty (30) days thereafter make written application to the Director for authority either: (1) to abandon all or a portion of such facilities in place; or (2) to remove all or a portion of such facilities. Such application shall describe the facilities desired to be abandoned or removed by reference to the map or maps required by Section 3.44.080 and shall also describe with reasonable accuracy the physical condition of such facilities. The Director shall determine whether any abandonment or removal which is thereby proposed may be effected without detriment to the public interest and under what conditions such proposed abandonment or removal may be safely effected and shall then notify the franchisee of his determination. The franchisee shall City of Huntington Beach Municipal Code 9/15/10 Chapter 3.44 Page 13 of 16 373 pay to the City the cost of all tests required to determine the disposition of the application for abandonment removal. (3889-9/1 o) (b) Within thirty (30) days after receipt of such notice, the franchisee shall apply for a permit from the Department to abandon or remove the facility and shall pay all fees and costs related thereto. Such permit is to contain the conditions of abandonment or removal as may be presc1ibed by the Director. Any abandonment shall be conditioned, in part, upon the franchisee's compliance with the provisions set forth in this Chapter. (3889-9/10) The franchisee shall, within ninety (90) days after obtaining such pe1mit commence and diligently prosecute to completion, the work authorized by the permit. If the franchisee applies for authority to abandon all or a portion of its facilities in place, and the Director determines that abandonment in place of all or part of the facilities may be affected without detriment to the public interest, the franchisee shall pay to the City a fee which shall be computed as follows: Pipelines with an Internal Diameter of 0-12 inches 14-18-inches 20-30 inches (2319-10/78, 3889-9/10) 3.44.430 Failure to Comply. Amount per Lineal Foot $15.00 $22.00 $28.00 (a) If any facilities to be abandoned "in place" subject to prescribed conditions shall not be abandoned in accordance with all such conditions the Director may make additional appropriate orders, including an order that the franchisee shall remove any or all such facilities. The franchisee shall comply with such additional orders. (b) In the event that the franchisee shall fail to comply with the terms and conditions of abandonment or removal as may be required by this chapter and within such time as may be prescribed by the Director, the City may remove or cause to be removed such facilities at the franchisee's expense. The franchisee shall pay to the City the cost of such work plus the current rate of overhead being charged by the City for reimbursable work. (3889-9/10) ( c) If, at the expiration, revocation or termination of this franchise, or of the permanent discontinuance of the use of all or a portion of its facilities, the franchisee shall, within thirty (30) days thereafter, fail or refuse to make written application for the abovementioned authority, the Director shall make the determination as to whether the facilities shall be abandoned in place or removed. The Director shall then notify the franchisee of his determination. The franchisee shall thereafter comply with the provisions of subsection (b) of section 3.44.420. (2319-10/78) 3.44.440 Abandonment "In Place" Conditions. Facilities abandoned "in place" shall be subject to the condition that if, at any time after the effective date of the abandonment, the Director determines that the facility may interfere with any public project, franchisee or its successor in interest must remove the facility at its expense when requested to do so by the City or to pay City for the cost of such removal. (2319-10/78, 3889-9/10) 3.44.447 Operation After Franchise Expiration -Revocable License. If a franchise is to expire within sixty days according to the franchise terms, and a new franchise has been requested, but has not yet been granted, the franchisee may request the Mayor and City Council to issue the franchisee a written revocable license, for a renewable term not to exceed one hundred twenty (120) days from the expiration of the franchise, permitting the franchisee to continue to locate its existing facilities in or upon public property in the City during the term of the license. The Mayor and City Council may issue such a revocable license, subject to any restrictions, terms, and conditions (including compensation), without limitation, that they deem City of Huntington Beach Municipal Code 9/15/10 Chapter 3.44 Page 14 of 16 374 to be in the best interests of the City. Nothing herein requires the Mayor and City Council to grant such a revocable license, nor does the issuance of such a revocable license require that the Mayor and City Council grant the franchisee a new franchise. Upon request of the franchisee, the City Clerk shall provide a revocable license application form. (3850-1/10) IV. SPECIAL PROVISIONS FOR PETROLEUM PIPELINES (3889-9/10) 3.44.450 Rights Granted. The franchisee granted a petroleum pipeline franchise shall have the right during the life thereof to transport oil, gas, gasoline, petroleum, wet gas and other hydrocarbon substances through the pipelines maintained under the franchise. If the franchisee or assignee later qualifies before the Public Utilities Commission of the State of California as a common carrier, the franchisee or assignee shall then have no right to continue to operate hereunder after the date of such qualification except with the consent of the Council, granted upon such additional terms and conditions as the Council may deem proper or as superseded by statute. Such additional te1ms and conditions shall be expressed by resolution. (2319-10/78, 3889-9/10) 3.44.460 Materials Used. All pipelines used or to be used for the transportation of oil, gas, gasoline, petroleum, wet gas and other hydrocarbon substances shall be first class and standard material as set forth by current American Petroleum Institute pipeline specifications. (2319-10/78) 3.44.470 Approvals. On all pipelines laid pursuant to the franchise, the Director shall approve where flush-valve connections shall be placed in the line. The availability of adequate water supplies, the hydrocarbons transmitted in the line, and the location of control valves shall be considered when making such determination. Such flush-valve connections shall be installed in the manner prescribed by the Director. (2319-10/78) 3.44.480 Reports. The franchisee during the life of the franchise, within sixty (60) days after the expiration of each franchise payment period, shall: (a) File with the Director two copies of a verified report of the franchisee showing for the immediately preceding franchise period, the length of lines in streets, the internal diameter of such lines, the rate per foot per year and the total amount due the City. (3889-9/1 0) (b) File with the Director a report in triplicate, showing the permit number of each permit obtained for the installation of new mains during the immediately preceding franchise payment period, together with the length and size of said mains. On this report the franchisee shall show any change in franchise footage since the last franchise payment period segregating such footage as to new mains laid, old mains removed, old mains abandoned in place, and the footage of mains in territory annexed or incorporated since the last franchise payment period. (2319-10/78) (c) All payments should be mailed to the City Treasurer, City of Huntington Beach, P.O. Box 711, Huntington Beach, CA 92648-0711. (3889-9/10) 3.44.490 Payments Due. Except for pipelines lawfully maintained other than by the authority granted by the franchise, the semi-annual payments shall accrue from the respective dates of installation, whether before or after the effective date of the franchise agreement, and such payments, together with the initial construction charges, if any, shall be due and payable semi- annually. (2319-10/78, 3889-9/10) 3.44.500 Cost of relocation. Franchisee shall bear the costs of removing and relocating its facilities used and maintained under this franchise if made necessary by any lawful change of grade, alignment or width of any public street, way, alley or place, or for any public project, even if franchisee's facilities are located on a private easement. If the grantee after reasonable notice, fails or refuses to relocate permanently or temporarily its facilities located in, on, upon, along, under, over, across or above any highway or to pave, surface, grade, repave, resurface or regrade City of Huntington Beach Municipal Code 9/15/10 Chapter 3.44 Page 15 of 16 375 as required, pursuant to any provision of the franchise, the City or other public entity may cause the work to be done and shall keep an itemized account of the entire cost thereof, and the grant shall hold harmless the City, its officers and employees from any liability which may arise or be claimed to arise from the moving, cutting, or alteration of any of the grantee's facilities, or the turning on or off of water, oil, or other liquid, gas, or electricity. (2319-10/78, 3889-9/10) City of Huntington Beach Municipal Code 9/15/10 Chapter 3.44 Page 16 of 16 376 EXHIBIT D REINSTATEMENT FEE PAYMENT SCHEDULE INITIAL BALANCE: $639,753.92 MONTHLY PAYMENT: $5,331.28 Month Payment Balance Month Payment Balance Month Payment Balance 1 $5,331.28 $634,422.64 42 $5,331.28 $415,840.16 83 $5,331.28 $197,257.68 2 $5,331.28 $629,091.36 43 $5,331.28 $410,508.88 84 $5,331.28 $191,926.40 3 $5,331.28 $623,760.08 44 $5,331.28 $405,177.60 85 $5,331.28 $186,595.12 4 $5,331.28 $618,428.80 45 $5,331.28 $399,846.32 86 $5,331.28 $181,263.84 5 $5,331.28 $613,097.52 46 $5,331.28 $394,515.04 87 $5,331.28 $175,932.56 6 $5,331.28 $607,766.24 47 $5,331.28 $389,183.76 88 $5,331.28 $170,601.28 7 $5,331.28 $602,434.96 48 $5,331.28 $383,852.48 89 $5,331.28 $165,270.00 8 $5,331.28 $597,103.68 49 $5,331.28 $378,521.20 90 $5,331.28 $159,938.72 9 $5,331.28 $591,772.40 so $5,331.28 $373,189.92 91 $5,331.28 $154,607.44 10 $5,331.28 $586,441.12 51 $5,331.28 $367,858.64 92 $5,331.28 $149,276.16 11 $5,331.28 $581,109.84 52 $5,331.28 $362,527.36 93 $5,331.28 $143,944.88 12 $5,331.28 $575,778.56 53 $5,331.28 $357,196.08 94 $5,331.28 $138,613.60 13 $5,331.28 $570,447.28 54 $5,331.28 $351,864.80 95 $5,331.28 $133,282.32 14 $5,331.28 $565,116.00 55 $5,331.28 $346,533.52 96 $5,331.28 $127,951.04 15 $5,331.28 $559,784.72 56 $5,331.28 $341,202.24 97 $5,331.28 $122,619.76 16 $5,331.28 $554,453.44 57 $5,331.28 $335,870.96 98 $5,331.28 $117,288.48 17 $5,331.28 $549,122.16 58 $5,331.28 $330,539.68 99 $5,331.28 $111,957.20 18 $5,331.28 $543,790.88 59 $5,331.28 $325,208.40 100 $5,331.28 $106,625.92 19 $5,331.28 $538,459.60 60 $5,331.28 $319,877.12 101 $5,331.28 $101,294.64 20 $5,331.28 $533,128.32 61 $5,331.28 $314,545.84 102 $5,331.28 $95,963.36 21 $5,331.28 $527,797.04 62 $5,331.28 $309,214.56 103 $5,331.28 $90,632.08 22 $5,331.28 $522,465.76 63 $5,331.28 $303,883.28 104 $5,331.28 $85,300.80 23 $5,331.28 $517,134.48 64 $5,331.28 $298,552.00 105 $5,331.28 $79,969.52 24 $5,331.28 $511,803.20 65 $5,331.28 $293,220.72 106 $5,331.28 $74,638.24 25 $5,331.28 $506,471.92 66 $5,331.28 $287,889.44 107 $5,331.28 $69,306.96 26 $5,331.28 $501,140.64 67 $5,331.28 $282,558.16 108 $5,331.28 $63,975.68 27 $5,331.28 $495,809.36 68 $5,331.28 $277,226.88 109 $5,331.28 $58,644.40 28 $5,331.28 $490,478.08 69 $5,331.28 $271,895.60 110 $5,331.28 $53,313.12 29 $5,331.28 $485,146.80 70 $5,331.28 $266,564.32 111 $5,331.28 $47,981.84 30 $5,331.28 $479,815.52 71 $5,331.28 $261,233.04 112 $5,331.28 $42,650.56 31 $5,331.28 $474,484.24 72 $5,331.28 $255,901.76 113 $5,331.28 $37,319.28 32 $5,331.28 $469,152.96 73 $5,331.28 $250,570.48 114 $5,331.28 $31,988.00 33 $5,331.28 $463,821.68 74 $5,331.28 $245,239.20 115 $5,331.28 $26,656.72 34 $5,331.28 $458,490.40 75 $5,331.28 $239,907.92 116 $5,331.28 $21,325.44 35 $5,331.28 $453,159.12 76 $5,331.28 $234,576.64 117 $5,331.28 $15,994.16 36 $5,331.28 $447,827.84 77 $5,331.28 $229,245.36 118 $5,331.28 $10,662.88 37 $5,331.28 $442,496.56 78 $5,331.28 $223,914.08 119 $5,332.28 $5,330.60 38 $5,331.28 $437,165.28 79 $5,331.28 $218,582.80 120 $5,330.60 $0.00 39 $5,331.28 $431,834.00 80 $5,331.28 $213,251.52 40 $5,331.28 $426,502.72 81 $5,331.28 $207,920.24 41 $5,331.28 $421,171.44 82 $5,331.28 $202,588.96 Franchise Agreement Between the City of Huntington Beach and Paramount Petroleum Corporation 377 Ord. No. 4008 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a Regular meeting thereof held on January 21, 2014, and was again read to said City Council at a Regular meeting thereof held on February 3, 2014, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Sullivan, Hardy, Harper, Boardman, Carchio, Shaw, Katapodis NOES: None ABSENT: None ABSTAIN: None I, Joan L. Flynn, CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council, do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on February 13, 2014. In accordance with the City Charter of said City Joan L. Flynn, City Clerk Senior Deputy City Clerk Ci of the City Council of the City of Huntington Beach, California Amendment to Pipeline Franchise Agreement Cardinal Pipeline L.P 378 Statement of Issue • The Mayor and City Council are being asked to approve for introduction Ordinance No. 4230 and authorize execution of an Amendment to the Pipeline Franchise Agreement with Cardinal Pipeline L.P. 379 Financial Impact • The City will continue to receive a Base Annual Fee which will be deposited to the General Fund (Account Number 10000100.41230). Each annual period, this fee is adjusted by a rate of change as determined by HBMC 3.44.290. 380 Financial Impact • Under this agreement Cardinal Pipeline owes a Base Annual Fee of $117,024.35 + annual CPI escalation as per HBMC 3.44. The following table details the annual fee breakdown under this agreement: Pipe Size Diameters in Inches Base Rate Per Linear Foot Linear Feet Base Rate 6 $0.895 39,425.00 35,285.38 10 $1.485 7,409.00 11,002.37 12 $1.787 39,584.00 70,736.61 86,418.00 117,024.35 381 ~ -- - - I _J I I I -I -I !.... Local Market • Staff have reviewed both State and local agencies to determine how the City’s pipeline franchise base annual fee structure compares to the greater market. • We have found that the City of Huntington Beach is currently charging a higher base annual rate than all agencies reviewed. • The following table provides details 382 Local Market City of Huntington Beach State Public Utility Code City of Long Beach City of Seal Beach City of Carson Internal Pipe Diameter Inches Base Rate Internal Pipe Diameter Inches Base Rate Internal Pipe Diameter Inches Base Rate Internal Pipe Diameter Inches Base Rate Internal Pipe Diameter Inches Base Rate 0-4 0.59 0-4 0.088 0-4 0.232 0-4 0.120 0-4 0.088 6 0.895 6 0.132 6 0.352 6 0.160 6 0.132 8 1.197 8 0.176 8 0.471 8 0.220 8 0.176 10 1.485 10 0.220 10 0.584 10 0.250 10 0.220 12 1.787 12 0.264 12 0.703 12 0.300 12 0.264 14 2.092 14 0.308 14 0.823 14 0.350 14 0.308 16 2.377 16 0.352 16 0.935 16 0.400 16 0.352 18 2.682 18 0.396 18 1.055 18 0.500 18 0.396 20 2.984 20 0.44 20 1.174 20 0.550 20 0.440 22 3.272 22 0.484 22 1.287 22 0.600 22 0.484 24 3.574 24 0.528 24 1.406 24 0.700 24 0.528 26 3.879 26 0.572 26 1.526 26 0.750 26 0.572 28 4.164 28 0.616 28 1.638 28 0.800 28 0.616 30 4.469 30 0.660 30 1.758 30 0.850 30 0.660 383 Terms of Amendment • 10-year extension. New expiration would be 2/13/2034. • Base Annual Fee: $117,024.35 + Annual CPI adjustment. • Corporate Surety Bond of $100,000 • Liability, Environmental and Workers Compensation Insurance 384 Recommended Action • Approve for introduction Ordinance 4230 “An Ordinance of the City of Huntington Beach Amending Ordinance No. 4008 which Granted and Oil Pipeline Franchise” • Approve and authorize the Mayor and City Clerk to execute the “Amendment to Franchise Agreement between the City of Huntington Beach and Cardinal Pipeline L.P”. 385 Alternative Action • Do not approve the Agreement and direct staff to draft correspondence informing Franchisee that existing pipeline must be abandoned pursuant to HBMC and State code. • This action would result in revenue loss for the City. 386 Questions? 387