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CL_AGN_240610_CC_AgendaPacket_F_A1. CALL TO ORDER 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE 4. PRESENTATIONS/PROCLAMATIONS/ANNOUNCEMENTS 5. APPROVE ORDER OF THE AGENDA This is the appropriate time for the Mayor or Councilmembers to approve the agenda as is or reorder. 6. BLUE FOLDER ITEMS (SUPPLEMENTAL) Blue folder (supplemental) items are additional back up materials to administrative reports, changes to the posted agenda packet, and/or public comments received after the printing and distribution of the agenda packet for receive and file. 7. PUBLIC COMMENT ON NON-AGENDA ITEMS This is the appropriate time for members of the public to make comments regarding items not listed on this agenda. Pursuant to the Brown Act, no action will take place on any items not on the agenda. 8. CONSENT CALENDAR Business items, except those formally noticed for public hearing, or those pulled for discussion are assigned to the Consent Calendar. The Mayor or any Councilmember may request that any Consent Calendar item(s) be removed, discussed, and acted upon separately. Items removed from the Consent Calendar will be taken up under the "Excluded Consent Calendar" section below. Those items remaining on the Consent Calendar will be approved in one motion. The Mayor will call on anyone wishing to address the City Council on any Consent Calendar item on the agenda, which has not been pulled by Councilmembers for discussion. 8.A.APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF JUNE 10, 2024 2 PORTUGUESE BEND ROAD ROLLING HILLS, CA 90274 (310) 377-1521 AGENDA Regular City Council Meeting CITY COUNCIL Monday, June 10, 2024 CITY OF ROLLING HILLS 7:00 PM The meeting agenda is available on the City’s website. The City Council meeting will be live-streamed on the City’s website. Both the agenda and the live-streamed video can be found here: https://www.rolling-hills.org/government/agenda/index.php Members of the public may submit written comments in real-time by emailing the City Clerk’s office at cityclerk@cityofrh.net. Your comments will become part of the official meeting record. You must provide your full name, but please do not provide any other personal information that you do not want to be published. Recordings to City Council meetings can be found here: https://www.rolling-hills.org/government/agenda/index.php Next Resolution No. 1370 Next Ordinance No. 385 1 RECOMMENDATION: Approve. 8.B.APPROVE MOTION TO READ BY TITLE ONLY AND WAIVE FURTHER READING OF ALL ORDINANCES AND RESOLUTIONS LISTED ON THE AGENDA RECOMMENDATION: Approve. 8.C.APPROVE THE FOLLOWING CITY COUNCIL MINUTES: MAY 13, 2024 REGULAR MEETING RECOMMENDATION: Approve as presented. 8.D.PAYMENT OF BILLS RECOMMENDATION: Approve as presented. 8.E.REPUBLIC SERVICES RECYCLING TONNAGE AND COMPLAINT REPORTS FOR APRIL 2024 RECOMMENDATION: Receive and file. 8.F.APPROVE THE FOLLOWING STANDING COMMITTEE MINUTES: JANUARY 12, 2024 SOLID WASTE & RECYCLING COMMITTEE SPECIAL MEETING MARCH 11, 2024 AND MAY 6, 2024 FINANCE, BUDGET, AND AUDIT COMMITTEE REGULAR MEETINGS RECOMMENDATION: Approve as presented. 8.G.ADOPT RESOLUTION NO. 1366, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA, IN SUPPORT OF THE HOMELESSNESS, DRUG ADDICTION, AND THEFT REDUCTION ACT (INITIATIVE 23-0017A1) FOR TARGETED REFORMS TO PROPOSITION 47 RECOMMENDATION: Approve as presented. 8.H.ADOPT RESOLUTION NO. 1367, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA, ASSIGNING ITS AVAILABLE PROPOSITION C TRANSPORTATION FUNDS TO THE CITY OF ROLLING HILLS ESTATES FOR THE REHABILITATION OF DEEP VALLEY DRIVE / DRYBANK DRIVE / INDIAN PEAK ROAD RECOMMENDATION: Approve as presented. CL_AGN_240610_CC_AffidavitofPosting.pdf CL_MIN_240513_CC_F.pdf CL_AGN_240527_CC_PaymentOfBills_E.pdf CL_AGN_240610_CC_PaymentOfBills_E.pdf VC_REP_240521_April_YTD_TonnageReport.pdf VC_REP_240521_April_C&D_Report.pdf VC_REP_240521_April_CallLog_Redacted.pdf VC_REP_240528_April_ComplaintsList2024_F_Redacted.pdf VC_REP_240528_April_RedTagList.pdf CL_MIN_231012_SWR_F.pdf CL_MIN_240311_FBA_F.pdf CL_MIN_240506_FBA_F.pdf ResolutionNo1366_StateBallotInitiative_23-0017A1_Support.pdf 2 8.I.REAPPROVE A PROFESSIONAL SERVICES AGREEMENT WITH JTL CONSULTANTS FOR $5,000 PER FISCAL YEAR FOR ON-CALL ARBORIST SERVICES TO SUPPORT STAFF IN FIRE FUEL ABATEMENT CODE ENFORCEMENT CASES RECOMMENDATION: Approve as presented. 9. EXCLUDED CONSENT CALENDAR ITEMS 10. COMMISSION ITEMS 11. PUBLIC HEARINGS 11.A.CONSIDERATION OF RESOLUTION NO. 1364 OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS ADOPTING THE FISCAL YEAR 2024-2025 CITY OF ROLLING HILLS BUDGET INCLUDING THE GENERAL FUND; REFUSE COLLECTION FUND; TRANSIT FUND - MEASURE R; TRANSIT FUND - MEASURE M; TRANSIT FUND - PROPOSITION A; TRANSIT FUND - PROPOSITION C; COPS FUND; MEASURE W FUND; AND RESOLUTION NO. 1365 ESTABLISHING THE ANNUAL FISCAL YEAR 2024-2025 APPROPRIATIONS GANN LIMIT FOR THE CITY OF ROLLING HILLS RECOMMENDATION: Approve as presented. 12. OLD BUSINESS 12.A.ADOPT RESOLUTION NO. 1368, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS. CALIFORNIA AUTHORIZING A FISCAL YEAR 2023-2024 BUDGET MODIFICATION TO INCREASE APPROPRIATIONS BY $66,345.73 IN FUND 16 FROM A TRANSFER OF GENERAL FUND RESERVES FOR PROVIDING SPECIALTY POTHOLING SERVICES WITHIN THE 20B PORTION OF THE EASTFIELD DRIVE FIRE PREVENTION POWER LINE UNDERGROUNDING PROJECT RECOMMENDATION: Approve as presented. 13. NEW BUSINESS 13.A.FISCAL YEAR 2023/24 THIRD QUARTER INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED MARCH 31, 2024 RECOMMENDATION: Receive and file. ResolutionNo1367_PropC_Funds_RHE_F.pdf Exhibit A - CA_AGR_Agrmnt_JTL Consultants -Arborist_20240610_JTL_Signed_F.pdf Exhibit B - Agrmnt_JTL Consultants -Arborist_2019-07-22.pdf Attachment A - CL_AGN_240610_CC_GeneralFund_BudgetBalancing.pdf Attachment B - CL-AGN_240610_CC_GeneralFund_AdoptedRevenues.pdf Attachment C - CL_AGN_240610_CC_GeneralFund_AdoptedExpenditiures.pdf Attachment D - CL_AGN_240610_CC_Restricted_Refuse_Funds.pdf ResolutionNo1364_FY24-25_AdoptedBudget.pdf ResolutionNo1365_FY24-25_AppropLimit.pdf CL_PBN_240610_PH_CC_FY24-25_Budget_Affidavit.pdf ResolutionNo1368_EastfieldDrive20B_Potholing_BudgetAmendment_F.pdf CA_AGR_240422_HotLineConst_Eastfield_UU_20B_Potholing.pdf 3 13.B.ADOPT RESOLUTION NO. 1369 APPROVING A FIVE-YEAR MUNICIPAL LAW ENFORCEMENT SERVICES AGREEMENT (MLESA) WITH THE COUNTY OF LOS ANGELES FOR PUBLIC SERVICES PROVIDED BY THE LOS ANGELES COUNTY SHERIFF'S DEPARTMENT AND AUTHORIZING THE CITY MANAGER TO PROCURE SERVICES OF THE LOS ANGELES COUNTY SHERIFFâ€™S DEPARTMENT ANNUALLY UP TO AN AMOUNT AUTHORIZED IN THE CITYâ€™S OPERATING AND CAPITAL BUDGET FOR THE PERIOD OF JULY 1, 2024 THROUGH JUNE 30, 2029; AND AUTHORIZE THE MAYOR TO EXECUTE THE MLESA RECOMMENDATION: Approve as presented. 14. MATTERS FROM THE CITY COUNCIL 14.A.RECEIVE AND FILE A VERBAL REPORT REGARDING HOMEOWNERS INSURANCE RENEWAL CHALLENGES AND THE CALIFORNIA INSURANCE COMMISSION'S EFFORT TO RESOLVE (MAYOR MIRSCH) RECOMMENDATION: Receive and file. 15. MATTERS FROM STAFF 15.A.PRESENTATION REGARDING OPEN FIRE PITS WITHIN CITY LIMITS RECOMMENDATION: Receive and file or provide direction to staff. 16. RECESS TO CLOSED SESSION 16.A.CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION A CLOSED SESSION WILL BE HELD, PURSUANT TO GOVERNMENT CODE Â§ 54956.9(C) AND (D)(4) REGARDING THE DECISION OF WHETHER TO INITIATE LITIGATION (1 CASE) RECOMMENDATION: None. 16.B.CONFERENCE WITH LEGAL COUNSEL: THREATENED LITIGATION Attachment A - CL_AGN_240610_CC_NarrativeAnalysis_FY23-24_Q3_Review.pdf Attachment B - CL_AGN_240610_CC_GeneralFund_Revenues.pdf Attachment C - CL_AGN_240610_CC_GeneralFund_Exp_ByDept.pdf Attachment D - CL_AGN_240610_CC_GeneralFund_Exp_Detail.pdf Attachment E - CL_AGN_240610_CC_Restricted_Funds.pdf Attachment F - CL_AGN_240610_CC_GeneralFund_BudgetAmendments.pdf Attachment A - ResolutionNo1369_MLESA_FY2024-29_F.pdf Attachment B - CA_AGR_240610_MLESA_2025-29_F.pdf Attachment C - CA_AGR_190717_MLESA_2019-24_F_E.pdf Attachment D - CA_AGR_230608_LACoSheriff_575Form_FY23-24_F_E.pdf Attachment E - GV_GVO_240610_CCA_LiabilityTrustFund_LOU_FinalDraft.pdf Attachment F - CA_AGR_1977_LACo_LASD_AssumptionOfLiability.pdf Attachment G - CA_AGR_1991_LACo_LASD_JointIndemnity.pdf Attachment H - CA_AGR_2009_LACo_LASD_SpecialIndemnity.pdf CL_AGN_240610_CC_051524_CAConsumerAlert.pdf Attachment 1: Daily Breeze - 1973 and 2009 Rolling Hills Fire.pdf Attachment 2: CL_AGN_CC_240610_15_Matters_Staff_FireDeptEmail_240603.pdf Attachment 3: Bonfire Recreational-Fire Permit Triggers 2023 LACFC.pdf 4 GOVERNMENT CODE SECTION 54956.9(D)(2) AND (E)(3)THE CITY COUNCIL FINDS, BASED ON ADVICE FROM LEGAL COUNSEL, THAT DISCUSSION IN OPEN SESSION WILL PREJUDICE THE POSITION OF THE CITY IN THE LITIGATION.NUMBER OF POTENTIAL CASES: (7)(GOVERNMENT CLAIMS ACT FORM SUBMITTED BY VARIOUS PROPERTY OWNERS IN RANCHO PALOS VERDES AGAINST THE CITY OF ROLLING HILLS ALLEGING DAMAGE TO PROPERTY) RECOMMENDATION: None. 17. RECONVENE TO OPEN SESSION 18. ADJOURNMENT Adjourning in Memory of longtime resident Parnelli Jones. Next regular meeting: Monday, June 24, 2024 at 7:00 p.m. in the City Council Chamber, Rolling Hills City Hall, 2 Portuguese Bend Road, Rolling Hills, California, 90274. Notice: Public Comment is welcome on any item prior to City Council action on the item. Documents pertaining to an agenda item received after the posting of the agenda are available for review in the City Clerk's office or at the meeting at which the item will be considered. In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting due to your disability, please contact the City Clerk at (310) 377-1521 at least 48 hours prior to the meeting to enable the City to make reasonable arrangements to ensure accessibility and accommodation for your review of this agenda and attendance at this meeting. 5 Agenda Item No.: 8.A Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF JUNE 10, 2024 DATE:June 10, 2024 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Approve. ATTACHMENTS: CL_AGN_240610_CC_AffidavitofPosting.pdf 6 Administrative Report 8.A., File # 2315 Meeting Date: 6/10/2024 To: MAYOR & CITY COUNCIL From: Christian Horvath, City Clerk TITLE APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL ADJOURNED REGULAR MEETING OF JUNE 10, 202 4 EXECUTIVE SUMMARY STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF ROLLING HILLS ) AFFIDAVIT OF POSTING In compliance with the Brown Act, the following materials have been posted at the locations below. Legislative Body City Council Posting Type Adjourned Regular Meeting Agenda Posting Location 2 Portuguese Bend Road, Rolling Hills, CA 90274 City Hall Window City Website: https://www.rolling-hills.org/government/agenda/index.php https://www.rolling-hills.org/government/city_council/city_council_archive_agendas/index.php Meeting Date & Time JUNE 10, 202 4 7:00pm Open Session As City Clerk of the City of Rolling Hills, I declare under penalty of perjury, the document noted above was posted at the date displayed below. Christian Horvath, City Clerk Date: June 7, 2024 7 Agenda Item No.: 8.B Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: APPROVE MOTION TO READ BY TITLE ONLY AND WAIVE FURTHER READING OF ALL ORDINANCES AND RESOLUTIONS LISTED ON THE AGENDA DATE:June 10, 2024 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Approve. ATTACHMENTS: 8 Agenda Item No.: 8.C Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: APPROVE THE FOLLOWING CITY COUNCIL MINUTES: MAY 13, 2024 REGULAR MEETING DATE:June 10, 2024 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Approve as presented. ATTACHMENTS: CL_MIN_240513_CC_F.pdf 9 MINUTES – CITY COUNCIL MEETING Monday, May 13, 2024 Page 1 Minutes Rolling Hills City Council Mon day, May 13, 2024 Regular Meeting 7:00 p.m. 1. CALL TO ORDER The City Council of the City of Rolling Hills met in person on the above date at 7:00 p.m. Mayor Mirsch presiding. 2. ROLL CALL Councilmembers Present: Wilson, Black, Dieringer, Mayor Pro Tem Pieper, Mayor Mirsch Councilmembers Absent: None Staff Present: Karina Bañales, City Manager Christian Horvath, City Clerk / Executive Assistant to the City Manager John Signo, Planning & Community Services Director Robert Samario, Finance Operations Lead Consultant Pat Donegan, City Attorney 3. PLEDGE OF ALLEGIANCE – Councilmember Black 4. PRESENTATIONS / PROCLAMATIONS / ANNOUNCEMENTS City Manager Bañales introduced the new Administrative Assistant Serena Lopez. Mayor Mirsch invited Ms. Lopez to speak. Ms. Lopez thanked the City Manager and City Council for the opportunity to officially join the organization. 5. APPROVE ORDER OF THE AGENDA Mayor Mirsch requested that all New Business Items be moved before Commission Items. Without objection, so ordered. 6. BLUE FOLDER ITEMS (SUPPLEMENTAL) Motion by Mayor Pro Tem Pieper, seconded by Councilmember Black to receive and file Blue Folder Item 13A. Motion carried unanimously with the following vote: AYES: Wilson, Black, Dieringer, Pieper, Mayor Mirsch NOES: None ABSENT: None 7. PUBLIC COMMENT ON NON-AGENDA ITEMS Public Comment: Kathleen Hughes 8. CONSENT CALENDAR 8.A. APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF MAY 13, 2024 10 MINUTES – CITY COUNCIL MEETING Monday, May 13, 2024 Page 2 8.B. APPROVE MOTION TO READ BY TITLE ONLY AND WAIVE FURTHER READING OF ALL ORDINANCES AND RESOLUTIONS LISTED ON THE AGENDA 8.C. APPROVE THE FOLLOWING CITY COUNCIL MINUTES: APRIL 22, 2024 REGULAR MEETING 8.D. PULLED BY COUNCILMEMBER WILSON 8.E. PULLED BY MAYOR MIRSCH 8.F. ADOPT RESOLUTIONS NOS. 1362 AND 1363 PERTAINING TO A GENERAL MUNICIPAL ELECTION CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024 Motion by Mayor Pro Tem Pieper, seconded by Mayor Mirsch to approve Consent Calendar except Items 8D and 8E. Motion carried unanimously with the following vote: AYES: Wilson, Black, Dieringer, Pieper, Mayor Mirsch NOES: None ABSENT: None 9. EXCLUDED CONSENT CALENDAR ITEMS 8.D. PAYMENT OF BILLS Motion by Mayor Pro Tem Pieper, seconded by Councilmember Wilson to approve as presented. Motion carried unanimously with the following vote: AYES: Wilson, Black, Dieringer, Pieper, Mayor Mirsch NOES: None ABSENT: None 8.E. REPUBLIC SERVICES RECYCLING TONNAGE AND COMPLAINT REPORTS FOR MARCH 2024 Mayor Mirsch requested staff discuss the required diversion rate not being met for multiple months with Republic Services. Motion by Mayor Mirsch, seconded by Mayor Pro Tem Pieper to receive and file. Motion carried unanimously with the following vote: AYES: Wilson, Black, Dieringer, Pieper, Mayor Mirsch NOES: None ABSENT: None Ma yor Mirsch moved to New Business. 13. NEW BUSINESS 13.A. FISCAL YEAR 2024/25 PROPOSED BUDGET - REPORT ON FINANCE COMMITTEE RECOMMENDATIONS Presentation by Finance Operations Lead Consultant Robert Samario 11 MINUTES – CITY COUNCIL MEETING Monday, May 13, 2024 Page 3 Motion by Mayor Pro Tem Pieper, seconded by Councilmember Wilson to approve Finance/Budget/Audit Committee and staff recommendations as presented. Motion carried with the following vote: AYES: Wilson, Black , Pieper, Mayor Mirsch NOES: Dieringer ABSENT: None 13.B. CONSIDERATION AND POSSIBLE ACTION TO PROCEED WITH IRS CODE SECTION 170(C)(1) FOR CHARITABLE CONTRIBUTIONS USED FOR PUBLIC PURPOSES Presentation by City Clerk / Executive Assistant to the City Manager Christian Horvath Public Comment: Jim Aichele Motion by Mayor Pro Tem Pieper, seconded by Councilmember Dieringer to receive and file and directing staff to return with a formal policy for accepting gifts and donations for public purposes based on Council comments and direction. Motion carried unanimously with the following vote: AYES: Wilson, Black, Dieringer, Pieper, Mayor Mirsch NOES: None ABSENT: None Mayor Mirsch moved to Item 10B 10. COMMISSION ITEMS 10.B. ZONING CASE NO. 23-056: SITE PLAN REVIEW FOR GRADING AND VARIANCE TO RETAIN GRADING IMPORT FOR A PROPERTY LOCATED AT 29 MIDDLERIDGE LANE SOUTH, AND FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (LOT 239-A-6-MS) (JOHNSON) Presentation by Planning & Community Services Director John Signo Public Comment: Ken Johnson Motion by Councilmember Black, seconded by Councilmember Wilson to receive and file. Motion carried unanimously with the following vote: AYES: Wilson, Black, Dieringer, Pieper, Mayor Mirsch NOES: None ABSENT: None Mayor Mirsch recused herself from Item 10A due to her residence being within proximity of the Zoning Case subject and left the dais at 8:40 p.m. Mayor Pro Tem Pieper assumed the presiding officer duties. 10.A. ZONING CASE NO. 23-150: SITE PLAN REVIEW TO CONSTRUCT ADDITIONS TO AN EXISTING RESIDENCE AND STABLE GREATER THAN 999 SQUARE FEET, NEW BASEMENT, SWIMMING POOL, OUTDOOR KITCHEN, RETAINING WALLS, COVERED DECKS/PORCHES, GRADING, HARDSCAPE, LANDSCAPE, AND OTHER IMPROVEMENTS; AND VARIANCES FOR CONSTRUCTION IN THE FRONT AND REAR YARD SETBACKS FOR A PROPERTY LOCATED AT 2 POSSUM RIDGE ROAD, AND FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (LOT 123-RH) (WHITCOMBE) 12 MINUTES – CITY COUNCIL MEETING Monday, May 13, 2024 Page 4 Presentation by Planning & Community Services Director John Signo Public Comment: Jim Aichele Motion by Councilmember Black, seconded by Mayor Pro Tem Pieper to receive and file. Motion carried with the following vote: AYES: Wilson, Black , Dieringer, Mayor Pro Tem Pieper NOES: None ABSENT: Mayor Mirsch Mayor Mirsch returned to the dais at 9:19 p.m. 11. PUBLIC HEARINGS – NONE 12. OLD BUSINESS – NONE 14. MATTERS FROM THE CITY COUNCIL 14.A. CONSIDERATION OF RESOLUTION IN SUPPORT OF THE BI-PARTISAN HOMELESSNESS, DRUG ADDICTION, AND THEFT REDUCTION ACT (INITIATIVE 23 -0017A1) FOR TARGETED REFORMS TO PROPOSITION 47 (COUNCILMEMBER DIERINGER) Presentation by City Manager Karina Bañales Councilmember Dieringer Motion by Councilmember Black, seconded by Mayor Pro Tem Pieper to support the initiative and direct staff to return with the draft resolution as amended by Mayor Mirsch for adoption. Motion carried unanimously with the following vote: AYES: Wilson, Black , Dieringer, Pieper, Mayor Mirsch NOES: None ABSENT: None 15. MATTERS FROM STAFF 15.A. CONSIDERATION OF SUPPORTING RETAIL THEFT LEGISLATION IN THE CALIFORNIA LEGISLATURE THAT WOULD STRENGTHEN PUBLIC SAFETY Presentation by City Clerk / Executive Assistant to the City Manager Christian Horvath Councilmember Dieringer introduced a revised Letter of Support for AB 2943. Motion by Councilmember Black, seconded by Mayor Pro Tem Pieper to receive and file Councilmember Dieringer’s submission. Motion carried unanimously with the following vote: AYES: Wilson, Bla ck, Dieringer, Pieper, Mayor Mirsch NOES: None ABSENT: None Public Comment: Jim Aichele 13 MINUTES – CITY COUNCIL MEETING Monday, May 13, 2024 Page 5 Motion by Councilmember Dieringer, seconded by Councilmember Black to send Letters of Support for all pending legislation presented except AB 1772, AB 1779 and AB 1794; and to accept Councilmember Dieringer’s amendments to the letter supporting AB 2943. Motion carried unanimously with the following vote: AYES: Wilson, Black, Dieringer, Pieper, Mayor Mirsch NOES: None ABSENT: None 16. RECESS TO CLOSED SESSION – 9:38 P.M. 16.A. CONFERENCE WITH LEGAL COUNSEL: THREATENED LITIGATION GOVERNMENT CODE SECTION 54956.9(D)(2) AND (E)(3) THE CITY COUNCIL FINDS, BASED ON ADVICE FROM LEGAL COUNSEL, THAT DISCUSSION IN OPEN SESSION WILL PREJUDICE THE POSITION OF THE CITY IN THE LITIGATION NUMBER OF POTENTIAL CASES: 1(GOVERNMENT CLAIMS ACT FORM SUBMITTED BY MR. DONALD SCHMID AGAINST THE CITY OF ROLLING HILLS ALLEGING DAMAGE TO PROPERTY IN RANCHOS PALOS VERDES) 17. RECONVENE TO OPEN SESSION – 10:50 P.M. 18. ADJOURNMENT: 10:50 P.M. The meeting was adjourned at 10:50 p.m. on May 13, 2024. The next regular adjourned meeting of the City Council is scheduled to be held on Mon day, June 10, 202 4 beginning at 7:00 p.m. in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. It will also be available via City’s website link at: https://www.rolling-hills.org/government/agenda/index.php All written comments submitted are included in the record and available for public review on the City website. Respectfully submitted, ____________________________________ Christian Horvath, City Clerk Approved, ____________________________________ Leah Mirsch, Mayor 14 Agenda Item No.: 8.D Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: PAYMENT OF BILLS DATE:June 10, 2024 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Approve as presented. ATTACHMENTS: CL_AGN_240527_CC_PaymentOfBills_E.pdf CL_AGN_240610_CC_PaymentOfBills_E.pdf 15 16 17 18 19 Agenda Item No.: 8.E Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: REPUBLIC SERVICES RECYCLING TONNAGE AND COMPLAINT REPORTS FOR APRIL 2024 DATE:June 10, 2024 BACKGROUND: Please note that Republic has been asked to provide footnotes per Council direction. They will try to accommodate on future reports. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Receive and file. ATTACHMENTS: VC_REP_240521_April_YTD_TonnageReport.pdf VC_REP_240521_April_C&D_Report.pdf VC_REP_240521_April_CallLog_Redacted.pdf VC_REP_240528_April_ComplaintsList2024_F_Redacted.pdf VC_REP_240528_April_RedTagList.pdf 20 Year 2024 Franchise Y/N Y Month Commodity Tons Collected Tons Recovered Tons Disposed Diversion % 1 Greenwaste 79.86 79.86 - 100.00% Trash 247.10 - 247.10 0.00% 1 Total 326.96 79.86 247.10 24.43% 2 Greenwaste 51.72 51.72 - 100.00% Trash 198.13 - 198.13 0.00% 2 Total 249.85 51.72 198.13 20.70% 3 Greenwaste 53.42 53.42 - 100.00% Trash 199.60 - 199.60 0.00% 3 Total 253.02 53.42 199.60 21.11% 4 Greenwaste 116.50 116.50 - 100.00% Trash 183.05 - 183.05 0.00% Trash - Free Residential Roll Off Bin 3.76 - 3.76 0.00% 4 Total 303.31 116.50 186.81 38.41% Grand Total 1,133.14 301.50 831.64 26.61% CITY OF ROLLING HILLS RESIDENTIAL FRANCHISE 2024 Page 1 of 2 21 Year 2024 Franchise Y/N N Month Commodity Tons Collected Tons Recovered Tons Disposed Diversion % 1 Greenwaste 19.61 19.61 - 100.00% Recycle 0.27 0.04 0.23 15.00% Trash 59.97 - 59.97 0.00% Organics 0.16 0.10 0.06 61.71% C&D 4.27 3.43 0.84 80.24% 1 Total 84.29 23.18 61.11 27.50% 2 Greenwaste 16.94 16.94 - 100.00% Recycle 0.29 0.11 0.18 37.67% Trash 57.05 - 57.05 0.00% C&D 11.29 9.05 2.25 80.10% 2 Total 85.57 26.09 59.47 30.50% 3 Greenwaste 6.42 6.42 - 100.00% Recycle 0.22 0.08 0.13 38.48% Trash 35.05 - 35.05 0.00% 3 Total 41.69 6.50 35.19 15.60% 4 Greenwaste 11.07 11.07 - 100.00% Recycle 0.27 0.11 0.16 40.00% Trash 46.40 - 46.40 0.00% 4 Total 57.74 11.18 46.56 19.36% Grand Total 269.28 66.95 202.33 24.86% CITY OF ROLLING HILLS NON-FRANCHISE 2024 Page 2 of 2 22 Republic Services City of Rolling Hills C&D Report Reporting Period April-24 Disposal Site Material Loads Taken Tons Collected No C&D to Report Summary Row Labels Sum of Tons Collected (blank) Grand Total Page 1 of 1 23 Republic Services Call Log Report City:Rolling Hills Year 2024 Month/Quarter 4 Summary of Calls by Type Final Call Final Call Type Sub-Type Total 2.Complaint Escalation 1 2.Complaint Total 1 3.Missed Pick Up Missed Recycle - Residential 2 Missed Trash - Residential 7 Missed Yard Waste - Residential 4 3.Missed Pick Up Total 13 Grand Total 14 Pg 1 of 4 24 Republic Services Call Log Report Final Call Type Sub-Type Case Number Date/Time Opened Date/Time Closed Created By Request Description Resolution Comments Customer Category Account Number Site Account Name Site Address Phone 2.Complaint Escalation 20240409-191041727 4/9/2024 3:19 PM 4/9/2024 4:51 PM SARAH HONER Lulu Akino (424) 206- 9824 called to report an issue. cx needs a driver to return for service today the driver serviced her neighbors but left her carts behind this is the second week this has happened and she says it happened a few weeks ago as well pleas on schedule for 4/11/2024...rh RESI 9020003567 1 CURRENT RESIDENT 29 EASTFIELD DR ROLLING HILLS CA (000) 000-0000 3.Missed Pick Up Missed Recycle - Residential 20240409-191002037 4/9/2024 10:32 AM 4/9/2024 3:53 PM Joanne Solis (blank)(blank)RESI 9020003487 1 CURRENT RESIDENT 30 CREST RD E ROLLING HILLS CA (000) 000-0000 3.Missed Pick Up Missed Recycle - Residential 20240430-192342395 4/30/2024 8:53 AM 4/30/2024 11:15 PM Christian Salvador Cacho (blank)(blank)RESI 9020003653 1 CURRENT RESIDENT 9 GEORGEFF RD ROLLING HILLS CA 3.Missed Pick Up Missed Trash - Residential 20240409-191041494 4/9/2024 3:16 PM 4/9/2024 3:53 PM SARAH HONER (blank)(blank)RESI 9020003567 1 CURRENT RESIDENT 29 EASTFIELD DR ROLLING HILLS CA (000) 000-0000 3.Missed Pick Up Missed Trash - Residential 20240410-191134464 4/10/2024 3:54 PM 4/10/2024 3:56 PM Daniel Ramon Ochoa (blank)(blank)RESI 9020003082 1 CURRENT RESIDENT 0 BUGGY WHIP DR ROLLING HILLS CA (000) 000-0000 Pg 2 of 4 25 Republic Services Call Log Report Final Call Type Sub-Type Case Number Date/Time Opened Date/Time Closed Created By Request Description Resolution Comments Customer Category Account Number Site Account Name Site Address Phone 3.Missed Pick Up Missed Trash - Residential 20240416-191498247 4/16/2024 3:57 PM 4/19/2024 10:44 PM Rechelle Bradford (blank)(blank)RESI 9020003348 1 CURRENT RESIDENT 38 CHUCKWAGON RD ROLLING HILLS CA (000) 000-0000 3.Missed Pick Up Missed Trash - Residential 20240412-191261952 4/12/2024 9:55 AM 4/16/2024 10:46 PM Joel Alfredo Inzunza (blank)(blank)RESI 9020003617 1 RESIDENT 85 EASTFIELD DR ROLLING HILLS CA 3.Missed Pick Up Missed Trash - Residential 20240413-191311658 4/13/2024 11:09 AM 4/17/2024 10:46 PM Brieana Smith (blank)(blank)RESI 9020003355 1 CURRENT RESIDENT 44 CHUCKWAGON RD ROLLING HILLS CA (000) 000-0000 3.Missed Pick Up Missed Trash - Residential 20240412-191303091 4/12/2024 3:15 PM 4/16/2024 10:46 PM Lanisha Reed (blank)(blank)RESI 9020003036 1 CURRENT RESIDENT 4 BOWIE RD ROLLING HILLS CA 3.Missed Pick Up Missed Trash - Residential 20240430-192342279 4/30/2024 8:52 AM 4/30/2024 11:15 PM Christian Salvador Cacho (blank)(blank)RESI 9020003653 1 CURRENT RESIDENT 9 GEORGEFF RD ROLLING HILLS CA 3.Missed Pick Up Missed Yard Waste - Residential 20240424-191970225 4/24/2024 8:03 AM 4/26/2024 10:45 PM Manuel Alfredo Hernandez (blank)(blank)RESI 9020003082 1 CURRENT RESIDENT 0 BUGGY WHIP DR ROLLING HILLS CA (000) 000-0000 Pg 3 of 4 26 Republic Services Call Log Report Final Call Type Sub-Type Case Number Date/Time Opened Date/Time Closed Created By Request Description Resolution Comments Customer Category Account Number Site Account Name Site Address Phone 3.Missed Pick Up Missed Yard Waste - Residential 20240412-191262215 4/12/2024 9:57 AM 4/16/2024 10:46 PM Joel Alfredo Inzunza (blank)(blank)RESI 9020003617 1 RESIDENT 85 EASTFIELD DR ROLLING HILLS CA 3.Missed Pick Up Missed Yard Waste - Residential 20240409-191002137 4/9/2024 10:33 AM 4/9/2024 3:54 PM Joanne Solis (blank)(blank)RESI 9020003487 1 CURRENT RESIDENT 30 CREST RD E ROLLING HILLS CA (000) 000-0000 3.Missed Pick Up Missed Yard Waste - Residential 20240430-192342479 4/30/2024 8:54 AM 4/30/2024 11:15 PM Christian Salvador Cacho (blank)(blank)RESI 9020003653 1 CURRENT RESIDENT 9 GEORGEFF RD ROLLING HILLS CA Pg 4 of 4 27 City of Rolling Hills Republic Complaint Log - April 2024 Date of Issue Time Issue/Complaint Resident Name Resident Address Republic contacted Republic Reponse Date Reponse Time of Reponse Resolved 4/2/2024 9:00AM Missed Green Waste on Friday 73 Portuguese Bend Rd.Addrian Orssten Miguel Ruiz 4/2/2024 4:00PM yes 4/2/2024 2:15PM Missed Regular Trash Pickup on Friday 27 Eastfield Dr. Miguel Ruiz Miguel Ruiz 4/2/2024 4:00PM yes 4/2/2024 4:57PM Missed Regular Trash Pickup on Friday 25 Eastfield Dr.Miguel Ruiz Miguel Ruiz 4/2/2024 5:00PM yes 4/5/2024 8:40AM Missed Regular Trash Pickup on Thursday 7 Middleridge Ln. N Miguel Ruiz Miguel Ruiz 4/5/2024 3:09PM yes 4/5/2024 9:06AM Missed Regular Trash Pickup on Thursday 7 Buggywhip Dr. Miguel Ruiz Miguel Ruiz 4/5/2024 3:09PM yes 4/5/2024 3:21PM Missed Regular Trash Pickup 3 Eastfield Dr. Miguel Ruiz Miguel Ruiz 4/5/2024 4:37PM yes 4/5/2024 4:26PM Missed Regular Trash pickup 15 Eastfield Dr. Miguel Ruiz Miguel Ruiz 4/5/2024 4:37PM yes 4/8/2024 10:01AM Missed Regular Trash Pickup 14 Upper Blackwater Cyn. Tanasha Malone Tanasha Malone 4/8/2024 10:22AM yes 4/10/2024 9:35AM Missed Regular Trash Pickup Thurs and Mon 20 Crest Rd. E Tanasha Malone Tanasha Malone 4/10/2024 9:57AM yes 4/12/2024 12:41PM Missed Regular Trash pickup & Greenwaste 85 Eastfield Dr. Tanasha Malone Tanasha Malone 4/12/2024 12:51PM yes 4/12/2024 12:54PM Missed Trash and Greenwaste 1 Appaloosa Ln. Tanasha Malone Tanasha Malone 4/12/2024 1:11PM yes 4/12/2024 5:00PM Frequently Missed Trash Pickup 15 Eastfield Dr. Tanasha Malone Tanasha Malone No Response No Response no 4/12/2024 3:53PM Missed Trash & Greenwaste 1 HummingBird Ln. Tanasha Malone Tanasha Malone No Response No Response no 4/15/2024 8:41AM Frequently Missed Trash & Greenwaste 15 Eastfield Dr. Tanasha Malone Tanasha Malone 4/15/2024 4/15/2024 yes 4/15/2024 8:41AM Missed Trash & Greenwaste 1 Humminbird Ln. Tanasha Malone Tanasha Malone 4/15/2024 4/16/2024 no 4/15/2024 3:40PM Missed Trash & Greenwaste 1 Hummingbird Ln.Tanasha Malone Tanasha Malone 4/15/2024 4/16/2024 yes 4/15/2024 2:10PM Missed Trash &Greenwaste 4 Appaloosa Lane Tanasha Malone Tanasha Malone 4/15/2024 4/15/2024 yes 4/16/2024 1:07PM Missed Trash Pickup Since Last Week 87 Eastfield Dr. Tanasha Malone Tanasha Malone 4/16/2024 1:12PM yes 4/16/2024 1:18PM Missed Trash Pickup Since Last week Caballeros Ring on Poppytrail Tanasha Malone Tanasha Malone 4/16/2024 1:41PM yes 4/16/2024 2:05PM Missed Trash Pickup Since Last Week 9 Eastfield Dr. Tanasha Malone Tanasha Malone No Response No Response yes 4/16/2024 2:23PM Missed Trash Pickup Since Last Week 3 Eastfield Dr. Tanasha Malone Tanasha Malone No Response No Response yes 4/16/2024 3:01 PM Missed Trash Pickup 44 Chuckwagon Tanasha Malone Tanasha Malone No Response No Response yes 4/17/2024 2:54PM Missed Trash Pickup 32 Portuguese Bend Rd. Tanasha Malone Tanasha Malone No Response No Response yes 4/18/2024 2:07PM Missed Trash Pickup Again 32 Portuguese Bend Rd. Tanasha Malone Tanasha Malone No Response No Response yes 4/19/2024 2:40PM Missed Trash Pickup 36 Eastfield Dr. Tanasha Malone Tanasha Malone No Response No Response yes 4/22/2024 11:06AM Missed Trash Pickup 25 Chuckwagon Rd. Tanasha Malone Tanasha Malone No Response No Response yes 4/22/2024 3:49PM Missed Trash Pickup 2724 P.V Dr. N. Tanasha Malone Tanasha Malone 4/23/2024 12:54PM yes 4/23/2024 11:01AM Missed Regular Trash Pickup 2738 PV Dr. N Tanasha Malone Tanasha Malone 4/23/2024 12:54PM yes 4/24/2024 8:30AM Missed Green Waste Pickup For 2 Weeks 0 Buggy Whip Drive Tanasha Malone Tanasha Malone 4/24/2024 11:01AM yes 4/26/2024 12:38PM Missed Green Waste 63 Crest Rd. E. Tanasha Malone Tanasha Malone 4/26/2024 3:24PM yes 28 City of Rolling Hills Republic Red Tag List - April 2024 Republic Services - Red Tag List Date of Issue Time Issue Resident Name Resident Address Republic contacted Republic Reponse Date Reponse Time of Reponse Resolved 4/22/2024 Red Tag: Green Waste Overload/ Not Bundled Resident Tanasha Malone Tanasha Malone 4/22/2024 yes 29 Agenda Item No.: 8.F Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: APPROVE THE FOLLOWING STANDING COMMITTEE MINUTES: JANUARY 12, 2024 SOLID WASTE & RECYCLING COMMITTEE SPECIAL MEETING MARCH 11, 2024 AND MAY 6, 2024 FINANCE, BUDGET, AND AUDIT COMMITTEE REGULAR MEETINGS DATE:June 10, 2024 BACKGROUND: It appears that historically, City staff has not kept official minutes of standing committee meetings that fall within the requirements of the Brown Act. The City Clerk's department recently started rectifying this situation with the Solid Waste & Recycling Committee prior to reconstituting it as an ad hoc committee. Since that body will no longer meet and approve its minutes under consent, its final meeting is attached for approval by the City Council. Likewise, the two recent Finance/Budget/Audit Committee meeting minutes are attached for approval by the Council since they will not meet again until after the 2025 Budget calendar is created next January. Staff will continue to bring minutes before the standing committee meeting bodies unless they are no longer scheduled to meet in a calendar year, at which time they will then be brought before the City Council for approval. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Approve as presented. 30 ATTACHMENTS: CL_MIN_231012_SWR_F.pdf CL_MIN_240311_FBA_F.pdf CL_MIN_240506_FBA_F.pdf 31 MINUTES – SOLID WASTE & RECYCLING COMMITTEE MEETING Friday, January 12, 2024 Page 1 Minutes Rolling Hills Solid Waste & Recycling Committee Friday, January 12, 2024 Special Meeting 4:00 p.m. 1. CALL TO ORDER The Solid Waste & Recycling Committee of the City of Rolling Hills met on the above date at 4:01 p.m. 2. ROLL CALL Members Present: Wilson, Mayor Mirsch Members Absent: None Staff Present: Karina Bañales, City Manager Christian Horvath, City Clerk / Executive Assistant to the City Manager 3. PUBLIC COMMENTS ON NON-AGENDA ITEMS – NONE 4. CONSENT CALENDAR 4.A. APPROVE AFFIDAVIT OF POSTING FOR THE SPECIAL SOLID WASTE AND RECYCLING COMMITTEE MEETING OF JANUARY 12, 2024 4.B. APPROVE THE FOLLOWING SOLID WASTE AND RECYCLING COMMITTEE MINUTES: JULY 13, 2023; OCTOBER 3, 2023 Motion by Councilmember Wilson, seconded by Mayor Mirsch to approve Consent Calendar items. Motion carried unanimously with the following vote: AYES: Wilson, Mayor Mirsch NOES: None 5. OLD BUSINESS 5.A. DISCUSSION ON UPDATES REGARDING REPUBLIC SERVICES FIELD OPERATION ISSUES AND EXPANSION OF MOTHER TRUCK STAGING SITE LOCATIONS Presentation by City Manager Karina Bañales City Clerk / Executive Assistant to the City Manager Christian Horvath Public Comment: Heidi Mackenbach Staff presented an update on discussions, meetings and actions taken in the past 6-8 months. The committee asked questions and discussion ensued. Staff received direction from the committee on the following: continue working with Republic operational issues such as trash trucks breaking down, timely trash collection, responsiveness to resident concerns, monitoring the Republic reporting log, and ensuring it aligns with the City’s systems. The committee also discussed mother truck staging locations and Republic revisiting 2010 council-approved staging locations and investigating potential new locations. Staff reported that effective Monday, January 15, Republic will begin staging their mother truck at eight of the fourteen 2010 City Council-approved staging 32 MINUTES – SOLID WASTE & RECYCLING COMMITTEE MEETING Friday, January 12, 2024 Page 2 locations to be used once a week for half the day. Some will be there in the morning and others in the afternoon. Mayor Mirsch discussed the potential creation of a “kitchen cabinet” group comprised of herself and some residents to discuss potential solutions to current issues that can be brought back to staff and the Committee for formal discussion. 6. NEW BUSINESS – NONE 7. ITEMS FROM STAFF – NONE 8. ITEMS FROM SOLID WASTE & RECYCLING COMMITTEE – NONE 9. ADJOURNMENT : 5:19 P.M. The meeting was adjourned at 5:19 p.m. Respectfully submitted, ____________________________________ Christian Horvath, City Clerk Approved, ____________________________________ Leah Mirsch, Mayor 33 MINUTES – FINANCE/BUDGET/AUDIT COMMITTEE MEETING Monday, March 11, 2024 Page 1 Minutes Rolling Hills Finance/Budget/Audit Committee Monday, March 11, 202 4 Special Meeting 6:00 p.m. CALL TO ORDER The Finance/Budget/Audit Committee of the City of Rolling Hills met in person on the above date at 6:04 p.m. ROLL CALL Members Present: Pieper, Black Members Absent: None Staff Present: Karina Bañales, City Manager Robert Samario, Finance Director Christian Horvath, City Clerk / Executive Assistant to the City Manager John Signo, Planning & Community Services Director 1. CALL TO ORDER 2. ROLL CALL 3. PUBLIC COMMENT ON NON-AGENDA ITEMS – NONE 4. CONSENT CALENDAR 4.A. APPROVE AFFIDAVIT OF POSTING FOR THE SPECIAL FINANCE/BUDGET/AUDIT COMMITTEE MEETING OF MARCH 11, 2024 Motion by Mayor Pro Tem Pieper, seconded by Councilmember Black to approve Consent Calendar. Motion carried unanimously with the following vote: AYES: Black, Pieper NOES: None ABSENT: None 5. DISCUSSION ITEMS 5.A. PRELIMINARY FISCAL YEAR 2024/25 PROJECTIONS AND BALANCING Presentation by Robert Samario, Finance Director Motion by Mayor Pro Tem Pieper, seconded by Councilmember Black to receive and file. Motion carried unanimously with the following vote: AYES: Black, Pieper NOES: None ABSENT: None 6. ITEMS FROM THE FINANCE BUDGET AUDIT COMMITTEE – NONE 34 MINUTES – FINANCE/BUDGET/AUDIT COMMITTEE MEETING Monday, March 11, 2024 Page 2 7. ITEMS FROM STAFF – NONE 8. ADJOURNMENT : 6:26 P.M. The meeting was adjourned at 6:26 p.m on March 11, 2024. The next regular meeting of the Finance/Budget/Audit Committee is scheduled to be held on Monday, May 6, 2024 beginning at 6:00 p.m. in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. It will also be available via City’s website link at: https://www.rolling-hills.org/government/agenda/index.php All written comments submitted are included in the record and available for public review on the City website. Respectfully submitted, ____________________________________ Christian Horvath, City Clerk Approved, ____________________________________ Leah Mirsch, Mayor 35 MINUTES – FINANCE/BUDGET/AUDIT COMMITTEE MEETING Monday, May 6, 2024 Page 1 Minutes Rolling Hills Finance/Budget/Audit Committee Monday, Ma y 6, 202 4 Special Meeting 6:00 p.m. CALL TO ORDER The Finance/Budget/Audit Committee of the City of Rolling Hills met in person on the above date at 6:30 p.m. ROLL CALL Members Present: Pieper, Black Members Absent: None Staff Present: Karina Bañales, City Manager Robert Samario, Finance Director Christian Horvath, City Clerk / Executive Assistant to the City Manager John Signo, Planning & Community Services Director 1. CALL TO ORDER 2. ROLL CALL 3. PUBLIC COMMENT ON NON-AGENDA ITEMS – NONE 4. CONSENT CALENDAR 4.A. APPROVE AFFIDAVIT OF POSTING FOR THE SPECIAL FINANCE/BUDGET/AUDIT COMMITTEE MEETING OF MAY 6, 2024 Motion by Mayor Pro Tem Pieper, seconded by Councilmember Black to approve Consent Calendar. Motion carried unanimously with the following vote: AYES: Black, Pieper NOES: None ABSENT: None 5. DISCUSSION ITEMS 5.A. REVIEW OF PROPOSED FISCAL YEAR 2024/25 GENERAL FUND EXPENDITURE BUDGET Presentation by Robert Samario, Finance Director Motion by Councilmember Black, seconded by Mayor Pro Tem Pieper to receive and file the report, reduce the City Council expense from $7,500 to $5,000, and use Section 115 Trust Fund monies to make the annual payment to PERS for the UAL. Motion carried unanimously with the following vote: AYES: Black, Pieper NOES: None ABSENT: None 6. ITEMS FROM THE FINANCE BUDGET AUDIT COMMITTEE – NONE 36 MINUTES – FINANCE/BUDGET/AUDIT COMMITTEE MEETING Monday, May 6, 2024 Page 2 7. ITEMS FROM STAFF – NONE 8. ADJOURNMENT : 7:12 P.M. The meeting was adjourned at 7:12 p.m on Ma y 6, 2024. The next regular meeting of the Finance/Budget/Audit Committee is to be determined in the City Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California. It will also be available via City’s website link at: https://www.rolling- hills.org/government/agenda/index.php All written comments submitted are included in the record and available for public review on the City website. Respectfully submitted, ____________________________________ Christian Horvath, City Clerk Approved, ____________________________________ Leah Mirsch, Mayor 37 Agenda Item No.: 8.G Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: ADOPT RESOLUTION NO. 1366, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA, IN SUPPORT OF THE HOMELESSNESS, DRUG ADDICTION, AND THEFT REDUCTION ACT (INITIATIVE 23-0017A1) FOR TARGETED REFORMS TO PROPOSITION 47 DATE:June 10, 2024 BACKGROUND: The Homelessness, Drug Addiction, and Theft Reduction Act (23-0017 A1) is a comprehensive legislative proposal meticulously designed to address the complex and interconnected issues of homelessness, drug addiction, and theft within communities. The Act outlines a wide array of strategies and interventions aimed at prevention, treatment, and enforcement to comprehensively address the root causes and consequences of these societal challenges. Californians for Safer Communities is the official coalition leading the Homelessness, Drug Addiction, and Theft Reduction Act. They are currently collecting signatures for the Act to qualify for the 2024 November General Election. The Act would provide targeted reforms to Proposition 47 that the authors feel legislative proposals alone are unable to deliver. Proposition 47 Safe Neighborhoods and Schools Act Proposition 47, also known as the Safe Neighborhoods and Schools Act, was passed by California voters in 2014. It reclassified certain nonviolent offenses, such as drug possession and theft, from felonies to misdemeanors. The intent behind Proposition 47 was to reduce incarceration rates, prioritize rehabilitation, and redirect cost savings to support mental health and drug treatment programs. Since its enactment, Proposition 47 has generated discussion and debate regarding its effectiveness and unintended consequences. Supporters argue that 38 it has reduced prison overcrowding, provided opportunities for rehabilitation, and promoted fairness in sentencing. However, critics have raised concerns about its impact on public safety, citing an increase in property crimes and challenges related to homelessness and drug addiction. Homelessness, Drug Addiction, and Theft Reduction Act A new proposal, called The Homelessness, Drug Addiction and Theft Reduction Act, would amend parts of Proposition 47. The measure aims at reforming laws that have dramatically increased homelessness, drug addiction, and theft throughout California. The measure proposes to: Provide drug and mental health treatment for people who are addicted to hard drugs such as fentanyl, cocaine, heroin, and methamphetamine. Add fentanyl to existing laws that prohibit the possession of hard drugs while armed with a loaded firearm. Add fentanyl to existing laws that prohibit the trafficking of large quantities of hard drugs. Permit judges to use their discretion to sentence drug dealers to state prison instead of county jail when they are convicted of trafficking hard drugs in large quantities or are armed. Warn convicted hard drug dealers and manufacturers that they can be charged with murder if they continue to traffic hard drugs, and someone dies as a result. Reinstate penalties for hard drug dealers whose trafficking kills or seriously injures a drug user. Increase penalties for people who repeatedly engage in theft. Introduce new laws to address the increasing problem of "smash and grab" thefts that result in significant losses and damage or are committed by multiple thieves working together. There is an argument that the leniency currently under Proposition 47 has led to skyrocketing theft in recent years. Under the new proposal, “an offender with two prior convictions for theft can be charged with a felony, regardless of the value of the stolen property.” It would also allow prosecutors to add together the value of property stolen across multiple thefts to exceed the $950.00 threshold for a felony charge and create harsher punishments for organized retail theft rings. Proposition 47 turned most drug possession offenses from felonies to misdemeanors. Right now, non-prescription fentanyl is not listed on Proposition 47 as a hard drug, and the new proposal would create harsher penalties for people who deal fentanyl and other hard drugs. The Homelessness, Drug Addiction, and Theft Reduction proposal is currently being circulated as a petition. Phase 1 (Qualification), which concludes on April 30, 2024. To qualify the measure for the November 2024 ballot, the law requires 546,651 valid signatures. If the threshold of valid signatures is reached in Phase 2, the initiative will go to California voters in November 2024. As of April 18, 2024, the Californians for Safer Communities, the official 39 coalition, announced that they had collected over 900,000 signatures. DISCUSSION: On May 13, 2024, the City Council approved a provided draft resolution, with modifications, in support of the Homelessness, Drug Addiction, and Theft Reduction Act Initiative 23-0017 A1. The final version is attached to this report. FISCAL IMPACT: None. RECOMMENDATION: Approve as presented. ATTACHMENTS: ResolutionNo1366_StateBallotInitiative_23-0017A1_Support.pdf 40 Resolution No. 1366 -1- RESOLUTION NO. 1366 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA IN SUPPORT OF THE HOMELESSNESS, DRUG ADDICTION, AND THEFT REDUCTION ACT THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: WHEREAS: Unintended consequences of Prop 47 include repeat and often organized retail theft, inner-city store closings, and difficulty convincing people to seek drug and mental health treatment. WHEREAS: These unintended consequences can only be corrected by the voters at the ballot box with modest amendments to Prop 47. WHEREAS: Initiative 23-0017A1, the Homelessness, Drug Addiction, and Theft Reduction Act is currently collecting signatures to qualify for the 2024 November General Election WHEREAS: The Homelessness, Drug Addiction, and Theft Reduction Act is a bi-partisan measure that provides common sense, targeted reforms to Prop 47 that legislative proposals alone are unable to deliver. WHEREAS: Rampant retail theft is harming businesses and residents in California because those who commit these crimes know they’ll get away with it, even if they’re caught. WHEREAS: This measure will hold repeat offenders accountable for the safety of our communities, rather than putting them back on the streets. WHEREAS: The fentanyl crisis has reached alarming levels, and is now responsible for 20 percent of youth deaths in California. WHEREAS: The Homelessness, Drug Addiction, and Theft Reduction Act will define fentanyl as a hard drug, hold individuals convicted of trafficking fentanyl accountable, and grant Judges greater discretion in sentencing drug traffickers. WHEREAS: It’s time for meaningful reforms to our justice system that ensure our communities are safe. NOW, THEREFORE, BE IT RESOLVED by the City of Rolling Hills, that the City Council formally expresses support for the Homelessness, Drug 41 Resolution No. 1366 -2- Addiction, and Theft Reduction Act and the benefit that it provides for our community’s safety. PASSED, APPROVED, AND ADOPTED this 10th day of June, 2024 ______________________________ LEAH MIRSCH MAYOR ATTEST: ___________________________ CHRISTIAN HORVATH CITY CLERK 42 Resolution No. 1366 -3- STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) §§ CITY OF ROLLING HILLS ) The foregoing Resolution No. 1366 entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS. CALIFORNIA IN SUPPORT OF THE HOMELESSNESS, DRUG ADDICTION, AND THEFT REDUCTION ACT was approved and adopted at a regular meeting of the City Council on the 10th day of June 2024, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________ CHRISTIAN HORVATH CITY CLERK 43 Agenda Item No.: 8.H Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: ADOPT RESOLUTION NO. 1367, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA, ASSIGNING ITS AVAILABLE PROPOSITION C TRANSPORTATION FUNDS TO THE CITY OF ROLLING HILLS ESTATES FOR THE REHABILITATION OF DEEP VALLEY DRIVE / DRYBANK DRIVE / INDIAN PEAK ROAD DATE:June 10, 2024 BACKGROUND: The City annually receives countywide tax disbursements from Proposition A, Proposition C, Measure R, and Measure M funds to be used for transportation and transit-related purposes. Proposition A and C funds are dedicated to transit and major arterial improvements. They are not eligible for use in Rolling Hills because the roads are privately owned and maintained. Measure R and Measure M funds are eligible for transportation improvement projects on public properties. Historically, the City has solicited interest from other public agencies regarding the exchange of accumulated local return funds for General Fund monies (Proposition A) or donating local return funds towards transit/transportation-related purposes (Proposition C). These funds have a five-year spend-down period, after which the expiring amount can lapse. Since 2021, the City has accumulated approximately $89,000 in Proposition C Funds. On May 13, 2024, an email was sent to neighboring Peninsula cities inquiring about their interest in donating Proposition C funds. DISCUSSION: The City of Rolling Hills Estates (RHE) responded to Rolling Hills’ solicitation and is interested in using donated Proposition C funds to help with a capital project that will repair and resurface Deep Valley Drive / Drybank Drive / Indian Peak Road within their commercial 44 district as it also serves as a transit corridor. Staff recommends gifting of the City’s available Proposition C funds to Rolling Hills Estates to supplement the Deep Valley Drive / Drybank Drive / Indian Peak Road project. FISCAL IMPACT: PROPOSITION C Fiscal Year (FY) Amount Benefiting Agency Exchange Rate General Fund Revenue 2002/2003 $ 46,146.50 RH Estates N/A N/A 2002/2003 $ 46,146.50 Rancho PV N/A N/A 2005/2006 $ 83,000.00 RH Estates N/A N/A 2008/2009 $ 38,174.00 Rancho PV N/A N/A 2008/2009 $ 38,174.00 RH Estates N/A N/A 2010/2011 $ 9,000.00 RH Estates N/A N/A 2010/2011 $ 18,000.00 Rancho PV N/A N/A 2010/2011 $ 3,000.00 PVP Transit N/A N/A 2012/2013 $ 40,000.00 RH Estates N/A N/A 2014/2015 $ 70,000.00 RH Estates N/A N/A 2016/2017 $ 65,000.00 RH Estates N/A N/A 2018/2019 $ 65,000.00 RH Estates N/A N/A 2020/2021 $ 39,000.00 RH Estates N/A N/A 2020/2021 $ 26,000.00 Rancho PV N/A N/A 2023/2024 Proposed $ 89,000.00 RH Estates N/A N/A RECOMMENDATION: Approve as presented. ATTACHMENTS: ResolutionNo1367_PropC_Funds_RHE_F.pdf 45 Resolution No. 1367 1 RESOLUTION NO. 1367 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA ASSIGNING TO THE CITY OF ROLLING HILLS ESTATES ITS AVAILABLE PROPOSITION C TRANSPORTATION FUNDS WHEREAS, the City of Rolling Hills has a fund balance of approximately $89,000 in Proposition C Local Return Funds for transportation projects; and WHEREAS, the City of Rolling Hills does not have projects that are eligible for funding with Proposition C Local Return Funds; and WHEREAS, the City of Rolling Hills Estates has identified projects that qualify for funding with Proposition C Local Return Funds; and WHEREAS, the City of Rolling Hills has a general interest in supporting eligible projects for transportation, to maintain traffic flow and to improve bicycle and pedestrian facilities on the Palos Verdes Peninsula; and WHEREAS, the City of Rolling Hills has the specific interest in improving and resurfacing Deep Valley Drive / Drybank Drive / Indian Peak Road located in the commercial district serving the residents of the City of Rolling Hills. WHEREAS, at this time the City wishes to the allocate Proposition C Local Return Funds to another public agency to be utilized for an eligible use; NOW, THEREFORE, the City Council of the City of Rolling Hills, California, does hereby resolve as follows: Section 1. The City of Rolling Hills hereby assigns to the City of Rolling Hills Estates $89,000 in Proposition C Local Return Funds for Deep Valley Drive / Drybank Drive / Indian Peak Road Resurfacing Project. Section 2. The City Council approves an Agreement for the assignment of said funds. Said Agreement is hereto attached as Exhibit “A” and is made a part hereof by reference. Section 3. The City of Rolling Hills will submit its documentation for the Los Angeles Metropolitan Transportation Authority to allocate these funds to the City of Rolling Hills Estates for the appropriate eligible programs in the City. Section 4. The City Clerk shall certify to the adoption of this Resolution and shall forward certified copies to the Los Angeles County Metropolitan Transportation Authority and the City of Rolling Hills Estates. 46 Resolution No. 1367 2 Section 5. The City Manager is hereby directed and authorized to execute any necessary documents, including, but not limited to agreements, amendments, forms, and applications to follow through with this transfer of funds. Section 6. The City Clerk, or duly appointed deputy, is directed to attest thereto. PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ROLLING HILLS ON THIS 10th DAY OF JUNE 2024. LEAH MIRSCH MAYOR ATTEST: CHRISTIAN HORVATH CITY CLERK 47 Resolution No. 1367 3 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) §§ CITY OF ROLLING HILLS ) The foregoing Resolution No. 1367 entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA ASSIGNING TO THE CITY OF ROLLING HILLS ESTATES ITS AVAILABLE PROPOSITION C TRANSPORTATION FUNDS was approved and adopted at a regular meeting of the City Council on June 10, 2024 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: CHRISTIAN HORVATH CITY CLERK 48 EXHIBIT A Resolution No. 1367 4 PROPOSITION C FUNDS ASSIGNMENT AGREEMENT This Assignment Agreement is made and entered into this 10th day of June, 2024 by and between the City of Rolling Hills and the City of Rolling Hills Estates, with respect to the following facts: A. The City of Rolling Hills Estates maintains the roadways and plans to resurface Deep Valley Drive / Drybank Drive / Indian Peak Road, located in the commercial district. B. The City of Rolling Hills has an accumulation of uncommitted Proposition C Local Return funds which could be made available to the City of Rolling Hills Estates to assist in providing the services described in Paragraph A of this Agreement. The City of Rolling Hills is willing to assign uncommitted Proposition C Local Return funds to the City of Rolling Hills Estates for the purpose identified in Paragraph A. Now, therefore, in consideration of the mutual benefits to be derived by the parties and of the premises herein contained, it is mutually agreed as follows: 1. Gifting. The City of Rolling Hills agrees to assign $89,000 of its uncommitted Proposition C Local Return funds to the City of Rolling Hills Estates in Fiscal Year 2023/2024. 2. Consideration. The City of Rolling Hills shall assign the agreed upon Proposition C Local Return funds to the City of Rolling Hills Estates in one payment no later than June 30, 2024. 3. Term. This Agreement is effective on the date above written and for such time as is necessary for both parties to complete their mutual obligations under this Agreement. 4. Termination. Termination of this Agreement may be made by either party before the date of approval of the project description covering the funds in question by the Metropolitan Transportation Authority, so long as written notice of intent to terminate is given to the other party at least five (5) days prior to the termination. 5. Notices. Notices shall be given pursuant to this Agreement by personal service on the party to be notified, or by written notice upon such party deposited in the custody of the United States Postal Service addressed as follows: 49 EXHIBIT A Resolution No. 1367 5 a. Karina Bañales, City Manager City of Rolling Hills 2 Portuguese Bend Road Rolling Hills, California 90274 b. Greg Grammer, City Manager City of Rolling Hills Estates 4045 Palos Verdes Drive North Rolling Hills, California 90274 6. Assurances. a. The City of Rolling Hills Estates shall use the assigned Proposition C Local Return funds only for the purpose of providing the project discussed in Paragraph A of this Agreement and within the time limits specified in Metropolitan Transportation Authority’s Proposition C Local Return Guidelines. b. Concurrently with the Execution of this Agreement, the City of Rolling Hills Estates shall provide the Metropolitan Transportation Authority with the Standard Assurances and Understandings Regarding Receipt of Use of Proposition C Funds specified in the Guidelines regarding the use of the assigned Proposition C Local Return Funds. IN WITNESS WHEREOF, the parties hereto have caused this Assignment Agreement to be executed by their respective officers, duly authorized, on the day and year written above. 50 EXHIBIT A Resolution No. 1367 6 CITY OF ROLLING HILLS ESTATES By: Greg Grammer City Manager CITY OF ROLLING HILLS By: Karina Bañales City Manager ATTEST ATTEST: By: Lauren Pettit City Clerk By: Christian Horvath City Clerk APPROVED AS TO FORM: By: Donald M. Davis City Attorney By: Patrick Donegan, City Attorney 51 Agenda Item No.: 8.I Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:JOHN SIGNO, DIRECTOR OF PLANNING & COMMUNITY SERVICES THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: REAPPROVE A PROFESSIONAL SERVICES AGREEMENT WITH JTL CONSULTANTS FOR $5,000 PER FISCAL YEAR FOR ON-CALL ARBORIST SERVICES TO SUPPORT STAFF IN FIRE FUEL ABATEMENT CODE ENFORCEMENT CASES DATE:June 10, 2024 BACKGROUND: In 2018, the City Council implemented a city-wide pro-active dead vegetation enforcement program. In February 2019, the City Council amended its Fire Fuel Abatement Ordinance (Chapter 8.30 of the RHMC) to include dead trees and shrubs, dead or alive tumbleweeds, dead palm fronds, and other plants as a public nuisance. The City hired a part-time code enforcement officer to implement the proactive enforcement program. There are times when residents dispute staff’s determination that a plant is dead, claiming it is dormant or seasonal. The staff's expertise is not in the condition of plants, and thus, an arborist is needed to determine the health of the vegetation in question. On June 5, 2019, staff released a Request for Proposal (RPF) for arborist services. The scope of work included assisting city staff on an as-needed basis in identifying whether vegetation observed in the field during routine inspection is dead, regardless of the season. The arborist would also make recommendations on how to most effectively remove the vegetation without causing an environmental risk (including but not limited to erosion) and on appropriate replacement vegetation. On June 20, 2019 two proposals were received from Warriner Associates and JTL Consultants. Proposals were to be selected based on qualifications, licensing, experience, references and cost. On July 22, 2019, the City Council reviewed the proposals from the two arborists available on an as-needed basis. The responsibility includes helping staff identify dead vegetation and consult on other landscaping matters. Both proposals met the submittal requirements as outlined in the City’s RFP. Both proposals were submitted timely and demonstrated relevant 52 experience and capacity plus the required expertise, certifications, and licenses to perform the work. The arborists were expected to be on call no more than ten times a year, for an amount not to exceed $6,000. The City Council approved both contracts. DISCUSSION: The agreements executed in 2019 have both expired. Subsequently, staff reached out to both consultants to see if they are interested in continuing. JTL Consultants is interested and an updated agreement and previous agreement are included as Attachment A and B. Warriner Associates indicated they are no longer in the area and would not be able to serve. A third arborist, Gregory MacDonald, was used in 2021 for a trees and views case between 59 and 61 Eastfield Drive. Mr. MacDonald was paid $480 for his services. Staff recently reached out to Mr. MacDonald to see if he was still interested in providing services but did not receive a response. JTL Consultants remains on the City's Preferred Vendors list in case an arborist is needed. The updated agreement with JTL Consultants is identical to the 2019 agreement with the exception of the dates, cost, and reference to a certificate of exemption from workers' compensation insurance to be included as Exhibit B. JTL Consultants has workers' compensation insurance, thus there is no need for the exemption. JTL Consultants will be responsible for assisting in determining whether certain vegetation and trees are dead, recommending effective removal, and recommending replacement. The rate is $200 per hour, representing the total cost for all labor, equipment, supplies, expenses, materials, and travel incurred by the consultant subject to a do not exceed the amount of $5,000 per fiscal year. The contract is valid for one year from execution unless extended in writing by both parties. Either party may terminate the agreement at any time, with or without cause, upon 30 days written notice to the other party. It's worth noting that the City has rarely utilized arborist services since 2019, and there has been no use since spring 2022. Code enforcement has considered their involvement on several occasions, but the issues were typically resolved before their services were required. In many cases, residents would accept the determination of a tree's condition and remove it themselves. The table below provides a breakdown of the City's arborist costs. ARBORIST COST SINCE 2019 ARBORIST AMOUNT COMMENTS JTL Consultants $0 No payments since 2019 Warriner Associates $4,000 20 hrs.; 2 invoices in 2019; 2 in 2020; 3 in 2021; 1 in 2022 Gregory MacDonald $480 Trees & Views case in 2021 FIVE-YEAR TOTAL $4,800 FISCAL IMPACT: For Fiscal Year (FY) 2023-24, the City budgeted $20,000 in account number 01-15-884 for consulting services, including an arborist. For FY 2024-25, the proposed budget is $5,000, which matches the contract with JTL Consultants. 53 RECOMMENDATION: Approve as presented. ATTACHMENTS: Exhibit A - CA_AGR_Agrmnt_JTL Consultants -Arborist_20240610_JTL_Signed_F.pdf Exhibit B - Agrmnt_JTL Consultants -Arborist_2019-07-22.pdf 54 CITY OF ROLLING HILLS AGREEMENT FOR ARBORIST SERVICES THIS AGREEMENT FOR ARBORIST SERVICES (“Agreement”) is made and entered into as of June 10, 2024, by and between the CITY OF ROLLING HILLS, a municipal corporation ("City") and JTL CONSULTANTS, LLC. ("Consultant"). R E C I T A L S A. City desires to retain Consultant to provide on-call consulting services to inspect trees, shrubs, palm fronds, or other plants (herein after referred to as “vegetation”) identified by City staff and located in the City of Rolling Hills, evaluate whether such vegetation is dead regardless of the season, prepare a report with Consultant’s determination and recommendation, and attend City Council meetings to discuss the report and findings; and B. Consultant is well qualified by reason of education, certified by the American Society of Consulting Arborists and International Society of Arboriculture, and experience to perform such services; and C. Consultant is willing to render such services on the terms and conditions as hereinafter defined. NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth below, City and Consultant agree as follows: 1. Services. Consultant shall perform all work necessary to complete in a manner reasonably satisfactory to City the services set forth in the scope of work attached hereto as Exhibit A and incorporated herein by reference (hereinafter referred to as “Services”). 2. Payment. City shall pay Consultant on an hourly basis at the rate of $200.00 per hour, representing total cost for all labor, equipment, supplies, expenses, materials, and travel incurred by Consultant subject to a do not exceed amount in the amount of $5,000.00 per fiscal year. Any services and compensation not provided for in this Agreement may be authorized by City in writing and in advance. Consultant shall submit invoices at the conclusion of each inspection project and City will make payment for all work performed to City’s reasonable satisfaction within 30 days of receipt of an invoice. 3. Term and Termination. This contract shall be valid for one year from execution of this Agreement, unless extended in writing by both parties. Either party may terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to the other party in compliance with Section13 of this Agreement. In such event, City shall compensate Consultant for all work City reasonably determines to be satisfactorily completed up to the date of termination. 55 CITY OF ROLLING HILLS CONTRACT ARBORIST SERVICES 4. Insurance. Without limiting Consultant’s obligations arising under paragraph 5 - Indemnity, Consultant shall not begin work under this Agreement until it obtains policies of insurance required under this section. The insurance shall cover Consultant, its agents, representatives, and employees in connection with the performance of work under this Agreement, and shall be maintained throughout the term of this Agreement. Insurance coverage shall be as follows: A. General Liability Insurance insuring City of Rolling Hills, its elected and appointed officers, agents, and employees from claims for damages for personal injury, including death, as well as from claims for property damage which may arise from Consultant’s actions under this Agreement, whether or not done by Consultant or anyone directly or indirectly employed by Consultant. Such insurance shall have a combined single limit of not less than $1,000,000. B. Automobile Liability Insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with the work to be performed under this Agreement in an amount of not less than $1,000,000 combined single limit for each occurrence. If Consultant or Consultant’s employees will use personal automobiles in any way on this project, Consultant shall obtain evidence of personal automobile liability coverage for each such person. C. Worker’s Compensation Insurance for all Consultant’s employees to the extent required by the State of California. If the Consultant has no employees for the purposes of this Agreement, the Consultant shall sign the “Certificate of Exemption from Workers’ Compensation Insurance.” D. Professional Liability Coverage for professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors, or omissions which may arise from the Consultant’s operations under this Agreement, whether such operations are by the Consultant or by its employees, subcontractors, or subconsultants. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis, or a combined single-limit-per- occurrence basis. When coverage is provided on a “claims made basis,” Consultant will continue to renew the insurance for a period of three (3) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover Consultant for all claims made by City arising out of any errors or omissions of Consultant, or its officers, employees, or agents during the time this Agreement was in effect. E. Deductibility Limits for policies referred to in subparagraphs A and B shall not exceed $5,000 per occurrence. F. Additional Insured. City of Rolling Hills, its elected and appointed officers, agents, and employees shall be named as additional insureds on policies referred to in subparagraphs A and B. 56 CITY OF ROLLING HILLS CONTRACT ARBORIST SERVICES G. Primary Insurance. The insurance required in paragraphs A and B shall be primary and not excess coverage. H. Evidence of Insurance. Consultant shall furnish City, prior to the execution of this Agreement satisfactory evidence of the insurance required issued by an insurer authorized to do business in California, and an endorsement to each such policy of insurance evidencing that each carrier is required to give City at least 30 days prior written notice of the cancellation of any policy during the effective period of the Agreement. All required insurance policies are subject to approval of the City Attorney. Failure on the part of Consultant to procure or maintain said insurance in full force and effect shall constitute a material breach of this Agreement or procure or renew such insurance, and pay any premiums therefore at Consultant’s expense. 5. Indemnity. City agrees to indemnify, hold harmless, and defend at its expense Consultant from any and all claims, actions, losses, damages, charges, expenses, or attorneys’ fees to which Consultant may be subject arising out of or resulting from the conclusions and recommendations set forth in any report prepared pursuant to this Agreement. Notwithstanding the foregoing, the City’s obligation under this Section shall not apply to any punitive or exemplary damages which may be awarded by a court against Consultant; nor shall this paragraph apply to liability incurred by Consultant for actions outside the Services or which result from wrongful or malicious conduct or negligence, or through the use of any personal vehicle, all as to which Consultant shall indemnify and hold City, its officers, agents, and employees harmless. 6. Quality of Work Performed. All work shall be performed to the highest professional standards. 7. Personnel. Consultant shall not subcontract the Services set forth in this Agreement, unless first obtaining written authorization from the City. 8. Compliance with All Laws. Consultant shall comply with all City, State, and Federal laws in the performance of its Services. 9. Assignment. This Agreement is not assignable nor the performance of either party's duties delegable without the prior written consent of the other party. Any attempted or purported assignment or delegation of any of the rights or obligations of either party without the prior written consent of the other shall be void and of no force and effect. 10. Attorney's Fees. In any action brought to declare the rights granted herein or to enforce any of the terms of this Agreement, the prevailing party shall be entitled to an award of reasonable attorney's fees in an amount determined by the court. 11. Non-discrimination. Consultant shall not discriminate in the hiring of employees or subconsultants on any basis prohibited by law. 57 CITY OF ROLLING HILLS CONTRACT ARBORIST SERVICES 12. Independent Contractor. Consultant is and shall at all times remain as to City, a wholly independent contractor. Neither City nor any of its agents shall have control of the conduct of Consultant or any of the Consultant's employees, except as herein set forth. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are in any manner agents or employees of the City. Consultant shall be solely responsible for all contributions, payments, or withholdings normally made on behalf of an employee including but not limited to, state and federal income taxes, federal social security contributions, California State disability insurance taxes, and unemployment insurance contributions. City shall issue Consultant a Form 1099 in connection with the compensation paid hereunder, and Consultant shall pay all required taxes on amounts paid hereunder. 13. Notices. All notices and communications shall be sent to the parties at the following addresses: CITY: City Manager City of Rolling Hills 2 Portuguese Bend Road Rolling Hills, California 90274 CONSULTANT: JTL Consultants, LLC 952 Buena Vista Street Duarte, CA 91010. 14. Conflict of Interest. Consultant affirms and warrants that he has no financial, contractual, or other interest or obligation that conflicts with or is harmful to the performance of his obligations under this Agreement. Consultant shall not during the term of this Agreement knowingly obtain such an interest or incur such an obligation. 15. Authorized Signature. Consultant affirms that the signatures, titles, and seals set forth hereinafter in execution of this Agreement represents all individuals, firm members, partners, joint ventures, and/or corporate officers having a principal interest herein. 16. Entire Agreement; Modification. This Agreement supersedes any and all other agreements, either oral or written, between the parties and contains all of the covenants and agreements between the parties. 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, and that any other agreement, statements, or promise not contained in this Agreement shall not be valid or binding. Any modification of this Agreement will be effective only if made in advance, in writing, and signed by both parties. The parties acknowledge and agree that their respective obligations under the Agreement have been fully discharged. 58 CITY OF ROLLING HILLS CONTRACT ARBORIST SERVICES IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on the date and year first above written. CITY OF ROLLING HILLS CONSULTANT: JTL CONSULTANTS, LLC Ted Lubeshkoff, Consulting Arborist CITY MANAGER DATE:___________ DATE: 6/5/24 ATTEST: CITY CLERK APPROVED AS TO FORM: PATRICK DONEGAN, CITY ATTORNEY 59 CITY OF ROLLING HILLS CONTRACT ARBORIST SERVICES EXHIBIT A SCOPE OF WORK The City of Rolling Hills is located in the Very High Fire Hazard Severity Zone, as designated by CalFire in 2007. In order to minimize wildfires in the City, the City Council adopted a Fire Fuel Abatement Ordinance (Municipal Code Chapter 8.30), requiring that “every person who owns or is in possession of any property, place, or area within the boundaries of the City shall, at his or her own expense, maintain the property, place or area free from any dead or alive tumbleweed or dead tree, shrub, palm frond or other plant.” At this time, this ordinance is not applicable to slopes greater than 2:1 in gradient. The City’s ordinance requires that the trees, shrubs, palm fronds, or other plants (“vegetation”) must be entirely dead and not in a condition of dying in order to make the determination. Consultant shall be available to City staff, on an on-call, as needed basis, to assist City staff in identifying if vegetation observed in the field during routine inspections is dead, regardless of the season. Consultant shall evaluate the vegetation and, if dead, recommend how to most effectively remove the vegetation, without causing an environmental risk (including but not limited to erosion) and appropriate replacement vegetation, and prepare a report to the City with Consultant’s determination and recommendation. Consultant shall also attend City Council meetings on an as-needed basis as an expert resource upon two weeks’ notice of the City Council meeting. 60 CITY OF ROLLING HILLS AGREEMENT FOR ARBORIST SERVICES THIS AGREEMENT FOR ARBORIST SERVICES (“Agreement”) is made and entered into as of July 24, 2019, by and between the CITY OF ROLLING HILLS, a municipal corporation ("City") and JTL CONSULTANTS, LLC. ("Consultant"). R E C I T A L S A.City desires to retain Consultant to inspect trees, shrubs, palm fronds, or other plants (herein after referred to as “vegetation”) identified by City staff and located in the City of Rolling Hills, evaluate whether such vegetation is dead regardless of the season, prepare a report with Consultant’s determination and recommendation, and attend City Council meetings to discuss the report and findings; and B.Consultant is well qualified by reason of education, licensure by the International Society of Arboriculture, and experience to perform such services; and C.Consultant is willing to render such services on the terms and conditions as hereinafter defined. NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth below, City and Consultant agree as follows: 1. Services. Consultant shall perform all work necessary to complete in a manner reasonably satisfactory to City the services set forth in the scope of work attached hereto as Exhibit A and incorporated herein by reference (hereinafter referred to as “Services”). 2.Payment. City shall pay Consultant on an hourly basis at the rate of $200.00 per hour, representing total cost for all labor, equipment, supplies, expenses, materials, and travel incurred by Consultant subject to a do not exceed amount in the amount of $6,000. Any services and compensation not provided for in this Agreement may be authorized by City in writing and in advance. Consultant shall submit invoices at the conclusion of each inspection project and City will make payment for all work performed to City’s reasonable satisfaction within 30 days of receipt of an invoice. 3.Term and Termination. This contract shall be valid for one year from execution of this Agreement, unless extended in writing by both parties. Either party may terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to the other party in compliance with Section13 of this Agreement. In such event, City shall compensate Consultant for all work City reasonably determines to be satisfactorily completed up to the date of termination. 61 CITY OF ROLLING HILLS CONTRACT ARBORIST SERVICES 4.Insurance. Without limiting Consultant’s obligations arising under paragraph 5 - Indemnity, Consultant shall not begin work under this Agreement until it obtains policies of insurance required under this section. The insurance shall cover Consultant, its agents, representatives, and employees in connection with the performance of work under this Agreement, and shall be maintained throughout the term of this Agreement. Insurance coverage shall be as follows: A.General Liability Insurance insuring City of Rolling Hills, its elected and appointed officers, agents, and employees from claims for damages for personal injury, including death, as well as from claims for property damage which may arise from Consultant’s actions under this Agreement, whether or not done by Consultant or anyone directly or indirectly employed by Consultant. Such insurance shall have a combined single limit of not less than $1,000,000. B.Automobile Liability Insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with the work to be performed under this Agreement in an amount of not less than $300,000 combined single limit for each occurrence. If Consultant or Consultant’s employees will use personal automobiles in any way on this project, Consultant shall obtain evidence of personal automobile liability coverage for each such person. C.Worker’s Compensation Insurance for all Consultant’s employees to the extent required by the State of California. If the Consultant has no employees for the purposes of this Agreement, the Consultant shall sign the “Certificate of Exemption from Workers’ Compensation Insurance” which is attached hereto and incorporated herein by reference as “Exhibit B.” D.Professional Liability Coverage for professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors, or omissions which may arise from the Consultant’s operations under this Agreement, whether such operations are by the Consultant or by its employees, subcontractors, or subconsultants. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis, or a combined single-limit-per- occurrence basis. When coverage is provided on a “claims made basis,” Consultant will continue to renew the insurance for a period of three (3) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover Consultant for all claims made by City arising out of any errors or omissions of Consultant, or its officers, employees, or agents during the time this Agreement was in effect. E.Deductibility Limits for policies referred to in subparagraphs A and B shall not exceed $5,000 per occurrence. F.Additional Insured. City of Rolling Hills, its elected and appointed officers, agents, and employees shall be named as additional insureds on policies referred to in subparagraphs A and B. 62 CITY OF ROLLING HILLS CONTRACT ARBORIST SERVICES G.Primary Insurance. The insurance required in paragraphs A and B shall be primary and not excess coverage. H.Evidence of Insurance. Consultant shall furnish City, prior to the execution of this Agreement satisfactory evidence of the insurance required issued by an insurer authorized to do business in California, and an endorsement to each such policy of insurance evidencing that each carrier is required to give City at least 30 days prior written notice of the cancellation of any policy during the effective period of the Agreement. All required insurance policies are subject to approval of the City Attorney. Failure on the part of Consultant to procure or maintain said insurance in full force and effect shall constitute a material breach of this Agreement or procure or renew such insurance, and pay any premiums therefore at Consultant’s expense. 5. Indemnity. City agrees to indemnify, hold harmless, and defend at its expense Consultant from any and all claims, actions, losses, damages, charges, expenses, or attorneys’ fees to which Consultant may be subject arising out of or resulting from the conclusions and recommendations set forth in any report prepared pursuant to this Agreement. Notwithstanding the foregoing, the City’s obligation under this Section shall not apply to any punitive or exemplary damages which may be awarded by a court against Consultant; nor shall this paragraph apply to liability incurred by Consultant for actions outside the Services or which result from wrongful or malicious conduct or negligence, or through the use of any personal vehicle, all as to which Consultant shall indemnify and hold City, its officers, agents, and employees harmless. 6.Quality of Work Performed. All work shall be performed to the highest professional standards. 7.Personnel. Consultant shall not subcontract the Services set forth in this Agreement. 8.Compliance with All Laws. Consultant shall comply with all City, State, and Federal laws in the performance of its Services. 9. Assignment. This Agreement is not assignable nor the performance of either party's duties delegable without the prior written consent of the other party. Any attempted or purported assignment or delegation of any of the rights or obligations of either party without the prior written consent of the other shall be void and of no force and effect. 10.Attorney's Fees. In any action brought to declare the rights granted herein or to enforce any of the terms of this Agreement, the prevailing party shall be entitled to an award of reasonable attorney's fees in an amount determined by the court. 11.Non-discrimination. Consultant shall not discriminate in the hiring of 63 CITY OF ROLLING HILLS CONTRACT ARBORIST SERVICES employees or subconsultants on any basis prohibited by law. 12.Independent Contractor. Consultant is and shall at all times remain as to City, a wholly independent contractor. Neither City nor any of its agents shall have control of the conduct of Consultant or any of the Consultant's employees, except as herein set forth. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are in any manner agents or employees of the City. Consultant shall be solely responsible for all contributions, payments, or withholdings normally made on behalf of an employee including but not limited to, state and federal income taxes, federal social security contributions, California State disability insurance taxes, and unemployment insurance contributions. City shall issue Consultant a Form 1099 in connection with the compensation paid hereunder, and Consultant shall pay all required taxes on amounts paid hereunder. 13.Notices. All notices and communications shall be sent to the parties at the following addresses: CITY: CONSULTANT: City Manager City of Rolling Hills 2 Portuguese Bend Road Rolling Hills, California 90274 Ted Lubeshkoff Consulting Arborist 952 Buena Vista Street Duarte, CA 91010. 14.Conflict of Interest. Consultant affirms and warrants that he has no financial, contractual, or other interest or obligation that conflicts with or is harmful to the performance of his obligations under this Agreement. Consultant shall not during the term of this Agreement knowingly obtain such an interest or incur such an obligation. 15.Authorized Signature. Consultant affirms that the signatures, titles, and seals set forth hereinafter in execution of this Agreement represents all individuals, firm members, partners, joint ventures, and/or corporate officers having a principal interest herein. 16.Entire Agreement; Modification. This Agreement supersedes any and all other agreements, either oral or written, between the parties and contains all of the covenants and agreements between the parties. 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, and that any other agreement, statements, or promise not contained in this Agreement shall not be valid or binding. Any modification of this Agreement will be effective only if made in advance, in writing, and signed by both parties. The parties acknowledge and agree that their respective obligations under the Agreement 64 CITY OF ROLLING HILLS CONTRACT ARBORIST SERVICES have been fully discharged. IN WITNESS WHEREOF the parties hereto for themselves, their heirs, executors, administrators, successors, and assigns do hereby agree to the full performance of the covenants herein contained and have caused this Agreement to be executed on this 24th day of July 2019. CONSULTANT: Ted Lubeshkoff, Consulting Arborist CITY OF ROLLING HILLS: Elaine Jeng, City Manager ATTEST: City Clerk July 25, 2019 65 CITY OF ROLLING HILLS CONTRACT ARBORIST SERVICES Page 6 of 7 EXHIBIT A SCOPE OF WORK The City of Rolling Hills is located in the Very High Fire Hazard Severity Zone, as designated by CalFire in 2007. In order to minimize wildfires in the City, the City Council adopted a Fire Fuel Abatement Ordinance (Municipal Code Chapter 8.30), requiring that “every person who owns or is in possession of any property, place, or area within the boundaries of the City shall, at his or her own expense, maintain the property, place or area free from any dead or alive tumbleweed or dead tree, shrub, palm frond or other plant.” At this time, this ordinance is not applicable to slopes greater than 2:1 in gradient. The City’s ordinance requires that the trees, shrubs, palm fronds, or other plants (“vegetation”) must be entirely dead and not in a condition of dying in order to make the determination. Consultant shall be available to City staff, on an as needed basis, to assist City staff in identifying whether vegetation observed in the field during routine inspections is dead regardless of the season. Consultant shall evaluate the vegetation and, if dead, recommend how to most effectively remove the vegetation, without causing an environmental risk (including but not limited to erosion) and appropriate replacement vegetation, and prepare a report to the City with Consultant’s determination and recommendation. Consultant shall also attend City Council meetings on an as-needed basis as an expert resource upon two weeks’ notice of the City Council meeting. 66 CITY OF ROLLING HILLS CONTRACT ARBORIST SERVICES Page 7 of 7 EXHIBIT B Certificate of Exemption from Workers’ Compensation Insurance TO: City of Rolling Hills SUBJECT: Sole Proprietor/Partnership/Closely Held Corporation with No Employees Please let this memorandum notify the City of Rolling Hills that I am a sole proprietor partnership nonprofit organization closely held corporation and do not have any employees whose employment requires me to carry workers’ compensation insurance. Therefore, I do not carry worker’s compensation insurance coverage. Consultant Signature ____________________________ Printed Name of Consultant ____________________________ Date X Ted Lubeshkoff July 25, 2019 67 Agenda Item No.: 11.A Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:ROBERT SAMARIO, FINANCE DIRECTOR THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: CONSIDERATION OF RESOLUTION NO. 1364 OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS ADOPTING THE FISCAL YEAR 2024-2025 CITY OF ROLLING HILLS BUDGET INCLUDING THE GENERAL FUND; REFUSE COLLECTION FUND; TRANSIT FUND - MEASURE R; TRANSIT FUND - MEASURE M; TRANSIT FUND - PROPOSITION A; TRANSIT FUND -PROPOSITION C; COPS FUND; MEASURE W FUND; AND RESOLUTION NO. 1365 ESTABLISHING THE ANNUAL FISCAL YEAR 2024-2025 APPROPRIATIONS GANN LIMIT FOR THE CITY OF ROLLING HILLS DATE:June 10, 2024 BACKGROUND: Over the last several months, City staff and Council have worked on developing the proposed budget for the upcoming fiscal year 2024/25. This process ended on May 13, 2024, with the finalization of the revenue estimates and budgeted expenditures. The budget is now set for adoption through a budget resolution that establishes the spending authority for each department and fund. In addition to the budget resolution, Council will also be adopting a resolution that establishes the City's appropriation limit as required by Article XIII B of the Constitution of the State of California. The appropriations limit establishes a limit on the amount the City can collect and spend from the proceeds of local taxes. The limit for fiscal year 2024/25 is $2,139,735 and the City is well below the limit at $1,858,385. The City is holding a public hearing to allow the public to weigh in the proposed budget prior to adoption. DISCUSSION: The City's budget consists of many different funds that account for a variety of services, programs and projects. The General Fund is the City's main operating fund where most of the City's services provided to the City's residents are accounted for. As with most city General 68 Funds, the primary revenues are derived from local and state taxes. The City also has several special revenue funds to account for revenues that are restricted as to their use; a capital projects fund to account for large capital improvement projects that often take more than one year to complete; and Refuse enterprise fund that accounts for waste collection and disposal services provided by contract to City residents and paid for from annual assessments to each property. Each of these funds are described in more detail below. GENERAL FUND The General Fund budget includes a total of $2,576,708 in ongoing operating expenditures, funded from $2,596,685 in revenues, leaving an operating surplus of $19,977. The General Fund accounts for the ongoing and traditional services associated with local government, including public safety, planning, building, finance, and administration. RESTRICTED FUNDS Transit/Transportation Funds The City receives revenues, primarily from the County, that are restricted for specific purposes. These include the allocation of special sales tax measures approved by Los Angeles County voters over the last several decades that are restricted to transit and transportation programs and projects. The measures include Proposition A, Proposition C, Measure R, and Measure M. In total, the City anticipates receiving $158,500 next fiscal year. Since the City of Rolling Hills does not own and operate a transit system and, in fact, has no transit service provided within the City limits, nor does the City own and maintain any public roads, the funds received pursuant to the four tax measures are either gifted to other agencies or exchanged for unrestricted monies with other agencies that can utilize the funds in accordance with their intended uses. Revenue estimates for fiscal year 2024-25 assume a growth of approximately 3% from the current year projections. COPS Fund The City also maintains a COPs Fund for monies received from the County’s Supplemental Law Enforcement Services Fund, created in 2009 through an increase statewide to vehicle license fees. The revenues can only be used for supplemental law enforcement services and not to supplant existing funding from the General Fund for law enforcement. The revenues estimated for next fiscal year of$170,000 is in line with current year revenues. Measure W Fund The City receives an allocation of the countywide special parcel tax pursuant to the Measure W (Safe, Clean Water Act) for parcels located within the Los Angeles County Flood Control District. These revenues are intended for storm water recycling and water quality improvement projects and programs. The City receives a single payment each year for the full annual allocation. The estimated allocation for fiscal year 2024/25 is $105,500 ENTERPRISE FUND 69 Refuse Fund The Refuse Fund is the City’s only enterprise fund. Enterprise funds are typically used to account for utilities owned and operated by governments, such as water, wastewater, electricity, and refuse, and other operations that are similar to those provided by the private sector, such as airports and golf courses. The Refuse Fund accounts for the contracted waste collection and disposal for all City of Rolling Hills residents. The fees charged to City residents are processed as a “Direct Assessment” through the County Assessor’s Office, which means the annual assessment is added to the property tax bill sent to property owners by the County and is payable in two installments. Thus, the payments the City receives from the County for refuse services coincide with the payments we receive for regular property taxes. The City's refuse rates are sufficient to fully cover the cost of refuse services provided by contract to City residents. For fiscal year 2024/25, the annual assessment will remain unchanged at $1,432.11 per parcel. This will generate slightly more than $1 million and will not require any General Fund contribution to cover the cost of refuse services. FISCAL IMPACT: The adopted budget sets forth the spending plan for the City. RECOMMENDATION: Staff recommends the City Council hold a public hearing and, following the close of the hearing, adopt the budget and appropriations limit resolutions. ATTACHMENTS: Attachment A - CL_AGN_240610_CC_GeneralFund_BudgetBalancing.pdf Attachment B - CL-AGN_240610_CC_GeneralFund_AdoptedRevenues.pdf Attachment C - CL_AGN_240610_CC_GeneralFund_AdoptedExpenditiures.pdf Attachment D - CL_AGN_240610_CC_Restricted_Refuse_Funds.pdf ResolutionNo1364_FY24-25_AdoptedBudget.pdf ResolutionNo1365_FY24-25_AppropLimit.pdf CL_PBN_240610_PH_CC_FY24-25_Budget_Affidavit.pdf 70 ATTACHMENT A Adopted Budget Adopted Operating Revenues 2,596,685$ Adopted Operating Expenditures 2,576,708 Adopted Operating Surplus 19,977 Capital Transfers - Adopted Surplus - Total 19,977$ CITY OF ROLLINGS HILLS Fiscal Year 2024/25 Budget Summary General Fund 71 ATTACHMENT B Property Taxes 1,500,750$ Sales Taxes 10,000 Property Transfer Tax 64,890 Other Taxes 1,000 Motor Vehicle In Lieu 280,545 Building & Other Permits 400,000 C&D Permits 10,000 Variance, Planning & Zoning 25,000 Animal Control Fees 300 Franchise Fees 13,000 Fines & Traffic Violations 4,000 Cost Recoivery - Publications 3,000 RHCA Lease Revenue 69,000 Public Safety Aug Fund 1,200 Interest on Investments 140,000 PARS Earnings 44,000 Miscellaneous Revenue 6,000 Transfers In - Refuse Fund 24,000 TOTALS 2,596,685$ CITY OF ROLLING HILLS Adopted Fiscal Year 2024/25 Revenues General Fund 72 ATTACHMENT C FY 2024/25 Adopted Budget 01 - CITY ADMINISTRATOR 702 Salaries -Full Time 436,262$ 705 Temporary Salaries 7,000 710 Retirement CalPERS-Employer 35,159 712 CalPERS Unfunded Liability - 715 Workers Compensation Insurance 9,100 716 Group Insurance 80,378 717 Retiree Medical 37,500 718 Employer Payroll Taxes 33,821 719 Deferred Compensation 2,239 720 Auto Allowance 3,600 721 Phone Allowance 2,400 740 Office Supplies 13,000 745 Equipment Leasing Costs 11,000 750 Dues & Subscriptions 14,000 755 Conference Expense 2,000 757 Meetings Expense 2,300 759 Training & Education 5,000 761 Auto Mileage 500 765 Postage 19,500 775 City Council Expense 5,000 776 Miscellaneous Expenses 3,000 780 Comm./Newsletters & Outreach 2,500 CITY OF ROLLING HILLS FY24/25 Adopted Budgeted Expenditures GENERAL FUND Department/Object Account 1 Page: 1 73 ATTACHMENT C FY 2024/25 Adopted BudgetDepartment/Object Account 785 Codification 2,400 790 Advertising 2,400 795 Other Gen Admin Expense 3,300 801 City Attorney 75,000 802 Legal Expense - Other 3,000 820 Website 6,000 850 Election Expense City Council 15,000 890 Consulting Fees 35,000 891 Records Management 1,700 Total City Administrator 869,059 05 - Finance 750 Dues & Subscriptions 4,500 810 Annual Audit 35,000 890 Consulting Fees 120,000 Total Finance 159,500 15- PLANNING & DEVELOPMENT 702 Salaries 219,953 703 Salaries - Part-Time 26,587 710 Retirement CalPERS-Employer 17,726 715 Workers Comp. Insurance 3,900 716 Group Insurance 48,107 718 Employer Payroll Taxes 19,310 719 Deferred Comp 4,681 720 Auto Allowance 1,200 721 Phone Allowance 600 2 Page: 2 74 ATTACHMENT C FY 2024/25 Adopted BudgetDepartment/Object Account 761 Auto Mileage 300 750 Dues & Subscription 11,670 755 Conference Expense 2,000 759 Training & Education 1,000 776 Miscellaneous Expenses 2,000 790 Publication/Advertising/Noticing 10,000 802 Legal Expenses-Other 10,000 872 Property Development-Legal Exp 37,000 875 Willdan Building 45,000 878 Build Inspect. LA County 250,000 881 Storm Water Management 90,990 884 Special Project Study & Consult.5,000 886 Code Enforcement 62,880 890 Consulting Fees (Onward)15,000 928 Traffic Engineering 5,645 Total Planning & Development 890,549 25 - Public Safety 830 Law Enforcement 293,000 833 Other Law Enforcement Exp 4,000 837 Wild Life Mgmt & Pest Control 20,000 838 Animal Control Expense 6,000 Total Public Safety 323,000 65 - NON-DEPARTMENTAL 895 Insurance & Bond Expense 40,000 901 South Bay Comm. Organization 17,600 3 Page: 3 75 ATTACHMENT C FY 2024/25 Adopted BudgetDepartment/Object Account 915 Community Recognition 8,000 917 Emergency Preparedness 77,000 Total Non-Departmental 142,600 75 - CITY PROPERTIES 892 IT Services 63,000 893 Granicus Services 8,300 894 Computer Hardware Fund 5,000 925 Utilities 60,000 930 Repairs & Maintenance 19,100 932 Area Landscaping 21,600 946 Buildings & Equipment 15,000 947 Non-Building Improvements - Total City Properties 192,000 TOTAL 2,576,708$ 4 Page: 4 76 ATTACHMENT D FY 2023/24 FY 2024/25 Amended Adopted Budget Budget 10 - COPS FUND Revenues 570 COPS Allocation 165,000$ 170,000$ Expenditures 840 COPS Program Expenditures 165,000 170,000 Revenues Over (Under) Expenditures -$ -$ 25 - PROPOSITION A FUND Revenues 500 Grant Revenues 52,000$ 52,750$ 670 Interest Earned 300 300 Total Revenues 52,300 53,050 Expenditures 620 Prop A Exchange - - Revenues Over (Under) Expenditures 52,300$ 53,050$ 26 - PROPOSITION C Revenues 501 Grant Revenue-Prop C 43,000$ 43,750$ 670 Interest Earned 250 250 Total Revenues 43,250 44,000 Expenditures 906 Prop C Gifted - - Revenues Over (Under) Expenditures 43,250$ 44,000$ CITY OF ROLLING HILLS Fiscal Year 2024/25 Adopted Budgets Restricted Funds and Refuse Fund 1 77 ATTACHMENT D FY 2023/24 FY 2024/25 Amended Adopted Budget Budget 27- MEASURE R TRANSIT Revenues 502 Measure R Grant Revenues 33,000$ 29,000$ 670 Interest Earned 250 250 Total Revenues 33,250 29,250 Expenditures 907 Measure R Gifted - - Revenues Over (Under) Expenditures 33,250$ 29,250$ 29 - MEASURE M Revenues 507 Measure M Local Return 37,000$ 33,000$ 670 Interest Earned 250 250 Total Revenues 37,250 33,250 Expenditures XXX Measure M Gifted - - Revenues Over (Under) Expenditures 37,250$ 33,250$ 30 - MEASURE W Revenues 508 Grant Revenues 105,000$ 105,000$ 670 Interest Earned 500 500 Total Revenues 105,500 105,500 Expenditures 913 Storm Water Management - 30%31,650 31,650 914 Storm Water Management - 70%73,850 73,850 105,500 105,500 Revenues Over (Under) Expenditures -$ -$ 2 78 ATTACHMENT D FY 2023/24 FY 2024/25 Amended Adopted Budget Budget 50 - REFUSE FUND Revenues 665 Service Charges 1,005,336$ 1,005,336$ 699 Transfers In - General Fund - Total Revenues 1,005,336 1,005,336 Expenditures 815 Refuse Service Contract 981,336 981,336 790 Advertising - 999 Transfers Out 24,000 24,000 Total Expenditures 1,005,336 1,005,336 Revenues Over (Under) Expenditures -$ -$ 3 79 Resolution No. 1364 -1- RESOLUTION NO. 1364 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS ADOPTING THE FISCAL YEAR 2024-25 CITY OF ROLLING HILLS BUDGET RECITALS A. Members of the Rolling Hills City Council opened a public hearing on Monday, June 10, 2024 to consider the recommended Fiscal Year 2024-25 City of Rolling Hills Proposed Budget; and B. Following the public hearing on the Fiscal Year 2024-25 City of Rolling Hills Proposed Budget, members of the Rolling Hills City Council desire to adopt said document. NOW, THEREFORE, BE IT RESOLVED BY MEMBERS OF THE ROLLING HILLS CITY COUNCIL AS FOLLOWS: Section 1. Members of the City Council hereby adopt the Fiscal Year 2024-25 City of Rolling Hills Budget, attached hereto as Exhibit A and incorporated herein by reference. Section 2. Appropriations in the amount not to exceed $2,576,708 are authorized in the Fiscal Year 2024-25 General Fund Budget for the purpose of carrying on the business of the City for general government, public safety, public service, and other items. Section 3. Appropriations in the amount not to exceed $1,280,836 are authorized in the various funds for carrying on the business of the City: COPs Fund, Proposition A Fund, Proposition C Fund, Measure R Fund, Measure M Fund, Measure W Fund, and Refuse Fund. Section 4. The City Manager may transfer appropriations between and among all departments, as defined in the Fiscal Year 2024-25 budget in order to ensure revenue and expenditures correspond to the intent of the City Council. The legal level of appropriated budgetary control, that is the level at which expenditures may not exceed appropriations, is at the department level for the General Fund and at the fund level for all other funds. Supplemental appropriations during the year must be approved by the City Council. All unexpended budgetary appropriations lapse at the end of the fiscal year. Section 5. The Mayor is hereby directed to sign this Resolution, and the City Clerk is directed to attest thereto. PASSED, APPROVED AND ADOPTED this 10th day of June, 2024. 80 Resolution No. 1364 -2- ____________________________________ Leah Mirsch Mayor ATTEST: ____________________________________ Christian Horvath City Clerk 81 Resolution No. 1364 -3- STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF ROLLING HILLS ) The foregoing Resolution No. 1364 entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS ADOPTING THE FISCAL YEAR 2024-25 CITY OF ROLLING HILLS BUDGET was approved and adopted at a regular meeting of the City Council on the 10th day of June, 2024, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________ CHRISTIAN HORVATH CITY CLERK 82 Resolution No. 1364 -4- EXHIBIT A 01 - General Fund City Administrator 934,776$ Finance Department 159,500 Planning & Development Department 890,549 Public Safety 323,000 Non-Departmental 142,600 City Properties 192,000 Total General Fund 2,642,425$ Other Funds 10 - COPs Fund 170,000$ 25 - Proposition A Fund - 26 - Proposition C Fund - 27 - Measure R Fund - 29 - Measure M Fund - 30 - Measure W Fund 105,500 50 - Refuse Fund 1,005,336 Total Other Funds 1,280,836$ CITY OF ROLLING HILLS Fiscal Year 2024-25 Adopted Budget 83 Resolution No. 1365 -1- RESOLUTION NO. 1365 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS ESTABLISHING THE 2024-25 FISCAL YEAR GANN APPROPRIATION LIMIT FOR THE CITY OF ROLLING HILLS. WHEREAS, the City of Rolling Hills has heretofore established its Base Year Appropriations Limit as $256,941; and WHEREAS, to the best of this City's knowledge and belief, the State Department of Finance figures reflect the following statistics relevant to the calculation of the 2024-25 Fiscal Year Appropriations Limit: California per capita personal income, 3.62% (three point six two percent). Population Adjustments for County of Los Angeles for FY 2024-25, 0.05% (zero point zero five percent). NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: Section 1. Based on the foregoing figures and the provision of Article XIII B of the Constitution of the State of California, the following figure accurately represents the 2024-25 Fiscal Year Appropriation Limit of the City of Rolling Hills: $2,139,735. Section 2. The City Clerk shall certify to the passage of Resolution No. 1365. PASSED, APPROVED AND ADOPTED this 10th day of June, 2024. ____________________________________ Leah Mirsch Mayor ATTEST: ____________________________________ Christian Horvath City Clerk 84 Resolution No. 1365 -2- STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF ROLLING HILLS ) The foregoing Resolution No. 1365 entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS ESTABLISHING THE 2024-25 FISCAL YEAR GANN APPROPRIATION LIMIT FOR THE CITY OF ROLLING HILLS. was approved and adopted at a regular meeting of the City Council on the 10th day of June, 2024, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________ CHRISTIAN HORVATH CITY CLERK 85 CL_PBN_240610_PH_CC_FY24-25_Budget - Page 1 of 1 2615 Pacific Coast Highway #329 Torrance, California 90254 (310) 543-6635 pfernandez@scng.com City of Rolling Hills 2 Portuguese Bend Road Rolling Hills, California 90274 Account Number:5007827 Ad Order Number:0011670579 Customer's Reference/PO Number: Publication:Daily Breeze Publication Dates:05/25/2024 Total Amount:$404.54 Payment Amount:$0.00 Amount Due:$404.54 Notice ID:ndI4CAIICMeaMu0rZerO Invoice Text:NOTICE OF PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA NOTICE IS HEREBY GIVEN, that the City Council of the City of Rolling Hills will conduct a public hearing at its Regular Meeting to be held on Monday, June 10, 2024, beginning at 7:00 p.m. to consider adoption of the following: CONSIDERATION OF RESOLUTION NO. 1364 OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS ADOPTING THE FISCAL YEAR 2024-2025 CITY OF ROLLING HILLS BUDGET INCLUDING THE GENERAL FUND; COMMUNITY FACILITIES FUND; MUNICIPAL SELF INSURANCE FUND; REFUSE COLLECTION FUND; SOLID WASTE CHARGES; TRANSIT FUND – MEASURE R; TRANSIT FUND – MEASURE M; TRANSIT FUND – PROPOSITION A; TRANSIT FUND – PROPOSITION C; COPS AND CLEEP FUND; UTILITY FUND; CAPITAL PROJECT FUND; MEASURE W FUND; MEASURE A FUND; AND FUND 16 (CALOES/FEMA) ; AND RESOLUTION NO. 1365 ESTABLISHING THE ANNUAL FISCAL YEAR 2024- 2025 APPROPRIATIONS GANN LIMIT FOR THE CITY OF ROLLING HILLS. Public Participation: The meeting agenda is available on the City’s website. A live audio of the City Council meeting will be available on the City’s website (http://www.rolling- hills.org/). Both the agenda and live audio can be found here: https://www.rolling- hills.org/government/agenda/index.php . Members of the public may submit comments prior to the start of the meeting by emailing the City Clerk at cityclerk@cityofrh.net. Your comments will become part of the official meeting record. You may provide your full name, but please do not provide any other personal information (i.e. phone numbers, addresses, etc.) that you do not want to be 86 CL_PBN_240610_PH_CC_FY24-25_Budget - Page 1 of 1 Daily Breeze 2615 Pacific Coast Highway #329 Torrance, California 90254 (310) 543-6635 0011670579 City of Rolling Hills 2 Portuguese Bend Road Rolling Hills, California 90274 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA County of Los Angeles I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not party to or interested in the above- entitled matter. I am the principal clerk of the printer of Daily Breeze, a newspaper of general circulation, printed and published in the City of Torrance*, County of Los Angeles, and which newspaper has been adjudged a newspaper of general circulation by the Superior Court of County of Los Angeles, State of California, under the date of June 15, 1945, Decree No. Pomo C-606. The notice, of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: 05/25/2024 I certify (or declare) under the penalty of perjury that the foregoing is true and correct. Dated at Torrance, California On this 25th day of May, 2024. ______________________________ Signature *Daily Breeze circulation includes the following cities: Carson, Compton, Culver City, El Segundo, Gardena, Harbor City, Hawthorne, Hermosa Beach, Inglewood, Lawndale, Lomita, Los Angeles, Long Beach, Manhattan Beach, Palos Verdes Peninsula, Palos Verdes, Rancho Palos Verdes, Rancho Palos Verdes Estates, Redondo Beach, San Pedro, Santa Monica, Torrance and Wilmington 87 Agenda Item No.: 12.A Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: ADOPT RESOLUTION NO. 1368, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS. CALIFORNIA AUTHORIZING A FISCAL YEAR 2023-2024 BUDGET MODIFICATION TO INCREASE APPROPRIATIONS BY $66,345.73 IN FUND 16 FROM A TRANSFER OF GENERAL FUND RESERVES FOR PROVIDING SPECIALTY POTHOLING SERVICES WITHIN THE 20B PORTION OF THE EASTFIELD DRIVE FIRE PREVENTION POWER LINE UNDERGROUNDING PROJECT DATE:June 10, 2024 BACKGROUND: In order to preserve the rural character of Rolling Hills and eliminate risks of wildfires, the City Council encourages and supports utility undergrounding throughout the community. In line with this vision, the City applied for Hazard Mitigation Grant funds through the FEMA Hazard Mitigation Program. On January 26, 2022, the City was awarded $1,971,882 in Federal funds to underground utility infrastructure on Eastfield Drive between Outrider Road and Hackamore Road. The grant requires a Local Match of 25%, or $657,294, for a total project amount of $2,629,176. The Local Match can be fulfilled using the City’s Rule 20A work credits. Through Councilmember Wilson's efforts and involvement, a donation of $1,000,000 Rule 20A work credits from Supervisor Hahn's Office was approved in December 2022. The California Public Utility Commission requires the local agencies to adopt an ordinance creating an underground district in the area where both the existing and new facilities are and will be located. The formation of the Underground Utility District (UUD) provides SCE with the authorization needed to develop the design plans to remove existing overhead facilities and install replacement underground facilities. On November 14, 2022, the City Council adopted Resolution No. 1316 to create Underground 88 Utility District No. 2 (UUD-02) (Eastfield Drive) and set a public hearing for the January 23, 2023 City Council meeting. Letters were sent on November 29, 2022, and January 4, 2023, to all property owners whose property or portion of their property would fall within the proposed Underground Utility District to notify them of the formation of UUD and the public hearing. The length of UUD-02 is divided into two segments: Rule 20A and Rule 20B. Southern California Edison (SCE) handles the design and joint trench bidding and assists in coordinating with the other utility companies for Rule 20A projects. Rule 20B projects are also designed by SCE; however, joint trench bidding is handled by the City. Over the past several years, City Staff has held monthly meetings with SCE and other utility service providers to ensure the project continues progressing. In preparation for the UUD, SCE has conducted numerous site visits to confirm the scope and limits of work and the preparation of a Rough Order of Magnitude (ROM), an estimate of the project. On January 4, 2023, SCE submitted the ROM for the Rule 20A segment, which is based on the estimated trench footage of 1,250 feet and includes all mainline trenching as well as crossings, streetlights, and service laterals with the cost estimate of $1,000,000, expressed in 2024 dollars. Resolution No. 1322 was adopted on January 23, 2023, and allowed SCE to begin designing the undergrounding system to replace the existing overhead facilities within the designated Underground Utility District. In addition, SCE coordinates with other utility service providers that have facilities on the existing overhead system to ensure their respective undergrounding designs coincide with SCE's efforts. The Federal grant received for the Eastfield Drive Underground Utility project requires the project to be completed by August 4, 2025, in order to expend the grant funds. Any delay in establishing the Underground Utility District hinders the project and could potentially jeopardize the availability and use of the grant funds. DISCUSSION: On April 22, 2024, the City Council was presented with five responses to a Request for Proposals (RFP) for Potholing Services and approved the lowest proposer (Hot Line Construction, Inc.) that met all requirements within the RFP for a scope of work including: 1. Potholing for six vault locations as identified on SCE’s Preliminary Design Plans for the Rule 2B Project 2. Obtaining the required permit (no fee) from RHCA 3. Restoring the potholing trenches in accordance with RHCA Trench Backfill and Pavement Repairs 4. Provide appropriate Traffic Control, including flagmen, as deemed necessary. Hot Line Construction's proposal was for a not-to-exceed amount of $57,915. The RFP required submissions to include a cost sheet for Time & Equipment in the event that additional work was required. On May 14, 2024, Hot Line began work along Eastfield Drive and completed their initial potholing on May 16th. At that time, they notified City and RHCA staff that the location for Edison Vault 5774207 (Station 64+02) had a conflict. They found an unmarked and unknown 89 1-1/2” steel line crossing in the center of their pothole and requested approval to return on May 20th to find a clear location where the vault could potentially be re-located. City staff approved the Time and Equipment. On May 20, 2024, Hot Line completed their work and verified the re-location of the vault 13 feet from Station 64+02 to Station 64+15. The attached Budget Modification allows the City to pay for services provided and request reimbursement from CalOES via the grant. FISCAL IMPACT: Under Rule 20B, the City is required to cover the costs for any contracted work and then be reimbursed from the grant funds. The grant pays for 75% of the fee and the city pays 25% of the fee using Rule 20A tariff credits. Staff will return to Council with a proposed resolution to amend the budget based on the costs and flow of funds described herein. The total fee for Hot Line Construction, Inc. is $66,345.73. RECOMMENDATION: Approve as presented. ATTACHMENTS: ResolutionNo1368_EastfieldDrive20B_Potholing_BudgetAmendment_F.pdf CA_AGR_240422_HotLineConst_Eastfield_UU_20B_Potholing.pdf 90 Resolution No. 1368 1 RESOLUTION NO. 1368 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS. CALIFORNIA AUTHORIZING A FISCAL YEAR 2023-2024 BUDGET MODIFICATION TO INCREASE APPROPRIAT IONS BY $66,345.73 IN FUND 16 FROM A TRANSFER OF GENERAL FUND RESERVES FOR PROVIDING SPECIALTY POTHOLING SERVICES WITHIN THE 20B PORTION OF THE EASTFIELD DRIVE FIRE PREVENTION POWER LINE UNDERGROUNDING PROJECT THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1. Recitals. A. It is the intention of the City Council of the City of Rolling Hills to review the adopted budget from time to time. B. On April 22, 2024 the City Council received a presentation from staff regarding proposals that the City received for the specialty potholing services to confirm proposed vault locations within the 20B portion of the Eastfield Drive fire prevention power line undergrounding project. C. As it is the Rule 20B portion of the undergrounding, the City will be required to cover the costs for any contracted work and then be reimbursed from the grant funds. The CalOES/FEMA Hazard Mitigation Grant pays for 75% of the overall fee and the City pays 25% of the fee using Rule 20A tariff credits. D. The lowest proposer meeting the Request for Proposal requirements was $57,915. Upon completion of the initial services, it was determined that additional work, in the amount of $8,430.73, was required to clear one proposed Southern California Edison vault location due to obstructions found under the roadway thus requiring an additional day of work at Time & Equipment rates as originally provided. As stated in section 3.9.1 of the Professional Services Agreement, “the total compensation, as may be adjusted upon mutual agreement, shall constitute complete and adequate payment for services…” Per Section1.C, the City will be reimbursed for construction expenses upon completion and filing of a Reimbursement Request with CalOES. E. The City desires to appropriate an additional Sixty-six thousand, three hundred and forty-five dollars and seventy-three cents ($66,345.73) in 91 Resolution No. 1368 2 Fund 16 from a transfer of General Fund Reserves for the Rule 20B undergrounding project on Eastfield Drive. Section 2. The sum of Sixty-six thousand, three hundred and forty-five dollars and seventy-three cents ($66,345.73) is hereby appropriated in the Fund 16 from a transfer of General Fund Reserves for Rule 20B undergrounding project on Eastfield Drive. Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book or original resolutions. PASSED, APPROVED, AND ADOPTED this 10th day of June, 2024 ______________________________ LEAH MIRSCH MAYOR ATTEST: ___________________________ CHRISTIAN HORVATH CITY CLERK 92 Resolution No. 1368 3 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) §§ CITY OF ROLLING HILLS ) The foregoing Resolution No. 1355 entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS. CALIFORNIA AUTHORIZING A FISCAL YEAR 2023-2024 BUDGET MODIFICATION TO INCREASE APPROPRIAT IONS BY $66,345.73 IN FUND 16 FROM A TRANSFER OF GENERAL FUND RESERVES FOR PROVIDING SPECIALTY POTHOLING SERVICES WITHIN THE 20B PORTION OF THE EASTFIELD DRIVE FIRE PREVENTION POWER LINE UNDERGROUNDING PROJECT was approved and adopted at a regular meeting of the City Council on the 10th day of June 2024, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________ CHRISTIAN HORVATH CITY CLERK 93 CITY OF ROLLING HILLS SPECIALTY SERVICES AGREEMENT 1. PARTIES AND DATE. This Agreement is made and entered into as April 22, 2024 by and between the CITY OF ROLLING HILLS, a California municipal corporation (hereinafter the “City”) and HOT LINE CONSTRUCTION, INC., a California Corporation with its principal place of business at 9020 Brentwood Blvd., Suite H Brentwood, CA 94513 (hereinafter referred to as “Designer”). City and Designer are sometimes individually referred to herein as “Party” and collectively as “Parties.” 2. RECITALS. 2.1 Designer. Designer desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement. Designer warrants that it is fully licensed, qualified, and willing to perform the services required by this Agreement; provided, however, that if Designer is a corporation or other organization, the Project Designer designated pursuant to Section 3.2, and not the Designer itself, shall be fully licensed to practice as an architect and/or engineer in the State of California. 2.2 Project. City desires to engage Designer to render such services for potholing to confirm and verify the existence of any underground facilities within specified areas as directed by the City ("Project") in compliance with the terms of this Agreement. 3. TERMS 3.1 Employment of Designer. 3.1.1 Scope of Services. Designer promises and agrees to furnish to City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional design and related services necessary for the full and adequate completion of the Project consistent with the provisions of this Agreement (hereinafter referred to as “Services”). The Services are more particularly described throughout this Agreement, including Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, any exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. All Services performed by Designer shall be subject to the sole and discretionary approval of the City, which approval shall not be unreasonably withheld. Additionally, Designer shall comply with all Federal requirements applicable to the Services as set forth in Exhibit “A-I.”] 3.1.2 Term. The term of this Agreement shall be from April 22, 2024 to May 22, 2024, unless earlier terminated as provided herein. Designer shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. 3.2 Project Designer; Key Personnel. 3.2.1 Project Designer. Designer shall name a specific individual to act as Project Designer, subject to the approval of City. Designer hereby designates Mark Meekhof to act as the Project Designer for the Project. The Project Designer shall: (1) maintain oversight of 94 the Services; (2) have full authority to represent and act on behalf of the Designer for all purposes under this Agreement; (3) supervise and direct the Services using his or her best skill and attention; (4) be responsible for the means, methods, techniques, sequences and procedures used for the Services; (5) adequately coordinate all portions of the Services; and (6) act as principal contact with City and all contractors, consultants, engineers and inspectors on the Project. Any change in the Project Designer shall be subject to the City’s prior written approval, which approval shall not be unreasonably withheld. The new Project Designer shall be of at least equal competence as the prior Project Designer. In the event that City and Designer cannot agree as to the substitution of a new Project Designer, City shall be entitled to terminate this Agreement for cause. 3.3 Hiring of Consultants and Personnel. 3.3.1 Right to Hire or Employ. Designer shall have the option, unless City objects in writing after notice, to employ at its expense architects, engineers, experts or other consultants qualified and licensed to render services in connection with the planning and/or administration of the Project, and to delegate to them such duties as Designer may delegate without relieving Designer from administrative or other responsibility under this Agreement. Designer shall be responsible for the coordination and cooperation of Designer’s architects, engineers, experts or other consultants. All consultants, including changes in consultants, shall be subject to approval by City in its sole and reasonable discretion. Designer shall notify City of the identity of all consultants at least fourteen (14) days prior to their commencement of work to allow City to review their qualifications and approve to their participation on the Project in its sole and reasonable discretion. 3.3.2 Qualification and License. All architects, engineers, experts and other consultants retained by Designer in performance of this Agreement shall be qualified to perform the Services assigned to them, and shall be licensed to practice in their respective professions, where required by law. 3.3.3 Standards and Insurance. All architects, engineers, experts and other consultants hired by Designer shall be required to meet all of the same standards and insurance requirements set forth in this Agreement, unless other standards or requirements are approved by the City in writing. Unless changes are approved in writing by the City, Designer’s agreements with its consultants shall contain a provision making them subject to all provisions stipulated in this Agreement. 3.3.4 Assignments or Staff Changes. Designer shall promptly obtain written City approval of any assignment, reassignment or replacement of such architects, engineers, experts and consultants, or of other staff changes of key personnel working on the Project. As provided in the Agreement, any changes in Designer’s consultants and key personnel shall be subject to app roval by City. 3.3.5 Draftsman and Clerical Support. Draftsmen and clerical personnel shall be retained by Designer at Designer’s sole expense. 3.4 Standard of Care. 3.4.1 Standard of Care. Designer shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals qualified to perform the Services in the same discipline in the 95 State of California, and shall be responsible to City for damages sustained by the City and delays to the Project as specified in the indemnification provision of this Agreement. Without limiting the foregoing, Designer shall be fully responsible to the City for any increased costs incurred by the City as a result of any such delays in the design or construction of the Project. Designer represents and maintains that it is skilled in the professional calling necessary to perform the Services. Designer warrants and represents that all of its employees, architects, engineers, experts and other consultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Designer represents that it, its employees, architects, engineers, experts and other consultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services assigned to or rendered by them and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Designer shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Designer’s failure to comply with the standard of care provided for herein. 3.4.2 Performance of Employees. Any employee or consultant who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee or consultant who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Designer and shall not be re-employed to perform any of the Services or to work on the Project. 3.5 Laws and Regulations. 3.5.1 Knowledge and Compliance. Designer shall keep itself fully informed of and in compliance with all applicable local, state and federal laws, rules and regulations in any manner affecting the performance of the Services or the Project, and shall give all notices required of the Designer by law. Designer shall be liable, pursuant to the standard of care and indemnification provisions of this Agreement, for all violations of such laws and regulations in connection with its Services. If the Designer performs any work knowing it to be contrary to such laws, rules and regulations, Designer shall be solely responsible for all costs arising therefrom. Designer shall defend, indemnify and hold City, its officials, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations. 3.5.2 Permits, Approvals and Authorizations. Designer shall provide City with a list of all permits, approvals or other authorizations required for the Project from all federal, state or local governmental bodies with approval jurisdiction over the Project. Designer shall then assist the City in obtaining all such permits, approvals and other authorizations. The costs of such permits, approvals and other authorizations shall be paid by the City. 3.5.3 Water Quality Management and Compliance. (a) Compliance with Water Quality Laws, Ordinances and Regulations. Designer shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251 et seq.); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); and any and all regulations, policies, or permits 96 issued pursuant to any such authority. Designer shall additionally comply with the lawful requirements of the City, and any other municipality, drainage City, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. (b) Liability for Non-compliance. (i) Indemnity: Failure to comply with laws, regulations, and ordinances listed in this Sections is a violation of federal and state law. Notwithstanding any other indemnity contained in this Agreement, Designer agrees to indemnify and hold harmless the City, its officials, officers, agents, employees and authorized volunteers from and against any and all claims, demands, losses or liabilities of any kind or nature which the City, its officials, officers, agents, employees and authorized volunteers may sustain or incur for noncompliance with the laws, regulations, and ordinances listed above, arising out of or in connection with the Services, except for liability resulting from the sole established negligence, willful misconduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers. (ii) Defense: City reserves the right to defend any enforcement action or civil action brought against the City for Designer’s failure to comply with any applicable water quality law, regulation, or policy. Designer hereby agrees to be bound by, and to reimburse the City for the costs associated with, any settlement reached between the City and the relevant enforcement entity. (iii) Damages: City may seek damages from Designer for delay in completing the Services caused by Designer’s failure to comply with the laws, regulations and policies described in this section of this Agreement, or any other relevant water quality law, regulation, or policy. 3.6 Independent Contractor. 3.6.1 Control and Payment of Subordinates. City retains Designer on an independent contractor basis and Designer is not an employee of City. Designer is not an employee for state tax, federal tax or any other purpose, and is not entitled to the rights or benefits afforded to City’s employees. Any additional personnel performing the Services under this Agreement on behalf of Designer shall also not be employees of City, and shall at all times be under Designer’s exclusive direction and control. Designer shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Designer shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance. 3.7 Schedule of Services. 3.7.1 Designer Services. Designer shall fully and adequately complete the Services described in this Agreement and in Exhibit “A” attached hereto and incorporated herein by reference. 3.7.2 Timely Performance Standard. Designer shall perform all Services hereunder as expeditiously as is consistent with professional skill and care, as well as the orderly progress of the Project work so as not to be the cause, in whole or in part, of delays in the 97 completion of the Project or in the achievement of any Project milestones, as provided herein. Specifically, Designer shall perform its Services so as to allow for the full and adequate completion of the Project within the time required by the City and within any completion schedules adopted for the Project. Designer agrees to coordinate with City’s staff, contractors and consultants in the performance of the Services, and shall be available to City’s staff, contractors and consultants at all reasonable times. 3.8 City Responsibilities. City’s responsibilities shall include the following: 3.8.1 Data and Information. City shall make available to Designer all necessary data and information concerning the purpose and requirements of the Project, including scheduling and budget limitations, objectives, constraints and criteria. 3.8.2 City’s Representative. The City hereby designates the City Manager, or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Contract. The City Manager hereby designates Christian Horvath as the City’s contact for the implementation of the Services hereunder. Contractor shall not accept direction or orders from any person other than the City’s Representative or his or her designee. 3.8.3 Review and Approved Documents. Review all documents submitted by Designer, including change orders and other matters requiring approval by the City Council or other officials. City shall advise Designer of decisions pertaining to such documents within a reasonable time after submission, so as not to cause unreasonable delay as provided in the excusable delay provisions of this Agreement above. 3.9 Compensation. 3.9.1 Designer’s Compensation for Basic Services. City shall pay to Designer, for the performance of all Services rendered under this Agreement, the total not to exceed amount of Fifty Seven Thousand, Nine Hundred and Fifteen Dollars ($57,915.00) (“Total Compensation”). This Total Compensation amount shall be based upon, and may be adjusted according to, the fee schedule and related terms and conditions attached hereto as Exhibit “B” and incorporated herein by reference. The Total Compensation, as may be adjusted upon mutual agreement, shall constitute complete and adequate payment for Services under this Agreement. 3.9.2 Withholding Payment to Designer. The City may withhold payment, in whole or in part, to the extent reasonably necessary to protect the City from claims, demands, causes of action, costs, expenses, liabilities, losses, damages, or injuries of any kind to the extent arising out of or caused by the negligence, recklessness, or willful misconduct protected under the indemnification provisions of this Agreement. Failure by City to deduct any sums from a progress payment shall not constitute a waiver of the City’s right to such sums. The City may keep any moneys which would otherwise be payable at any time hereunder and apply the same, or so much as may be necessary therefor, to the payment of any expenses, losses, or damages as determined by the City, incurred by the City for which Designer is liable under the Agreement or state law. Payments to the Designer for compensation and reimbursable expenses due shall not be contingent on the construction, completion or ultimate success of the Project. Payment to the Designer shall not be withheld, postponed, or made contingent upon receipt by the City of offsetting reimbursement or credit from parties not within the Designer’s reasonable control. 98 3.9.3 Prevailing Wages. Designer is aware of the requirements of California Labor Code Sections 1720, et seq ., and 1770, et seq ., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Designer agrees to fully comply with and to require its consultants to fully comply with such Prevailing Wage Laws. City shall provide Designer with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Designer shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Designer’s principal place of business and at the Project site. Designer shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure of the Designer or its consultants to comply with the Prevailing Wage Laws. It shall be mandatory upon the Designer and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4. 3.9.4 Registration. If the Services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Designer and all subconsultants performing such Services must be registered with the Department of Industrial Relations. Designer shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. 3.9.5 Labor Compliance. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Designer’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Designer or any subcontractor that affect Designer’s performance of Services, including any delay, shall be Designer’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Designer caused delay and shall not be compensable by the City. Designer shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Designer or any subcontractor. 3.10 Notice to Proceed. Designer shall not proceed with performance of any Services under this Agreement unless and until the City provides a written notice to proceed. 3.11 Termination, Suspension and Abandonment. 99 3.11.1 Grounds for Termination; Designer’s Termination for Cause. City hereby reserves the right to suspend or abandon, at any time and for any reason, all or any portion of the Project and the construction work thereon, or to terminate this Agreement at any time with or without cause. Designer shall be provided with at least seven (7) days advanced written notice of such suspension, abandonment or termination. In the event of such suspension, abandonment or termination, Designer shall be paid for Services and reimbursable expenses rendered up to the date of such suspension, abandonment or termination, pursuant to the schedule of payments provided for in this Agreement, less any claims against or damages suffered by City as a result of the default, if any, by Designer. Designer hereby expressly waives any and all claims for damages or compensation arising under this Agreement, except as set forth herein, in the event of such suspension, abandonment or termination. Designer may terminate this Agreement for substantial breach of performance by the City such as failure to make payment to Designer as provided in this Agreement. 3.11.2 Documents and Other Data. Upon suspension, abandonment or termination, Designer shall provide to City all documents, reports, and any other data or drawings (“Project Documents”), as defined below, to which City would have been entitled at the completion of Designer’s Services under this Agreement. Upon payment of the amount required to be paid to Designer pursuant to the termination provisions of this Agreement, City shall have the rights, as provided in this Agreement hereinafter, to use such Project Documents prepared by or on behalf of Designer under this Agreement. Designer shall make such documents available to City upon request and without additional compensation other than as may be approved as a reimbursable expense. 3.11.3 Employment of other Designers. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 3.12 Ownership and Use of Documents; Confidentiality. 3.12.1 Ownership. All Project Documents shall be and remain the property of City. 3.12.2 Right to Use. Designer grants to City the right to use and reuse all or part of the Project Documents, at City’s sole discretion and with no additional compensation to Designer. 3.13 Indemnification. 3.14.1 To the fullest extent permitted by law, Designer shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Designer, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Designer’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Designer's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Designer, the City, its officials, officers, employees, agents, or volunteers. 100 3.14.2 If Designer’s obligation to defend, indemnify, and/or hold harmless arises out of Designer’s performance of “design professional” services (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Designer’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Designer, and, upon Designer obtaining a final adjudication by a court of competent jurisdiction, Designer’s liability for such claim, including the cost to defend, shall not exceed the Designer’s proportionate percentage of fault. 3.14 Insurance. Designer shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this Section. In addition, Designer shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section. 3.14.1 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, Designer shall, at its expense, procure and maintain in full force and effect for the duration of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Designer agrees to amend, supplement or endorse the policies to do so. 3.14.2 Additional Insured. The City, its officials, officers, employees, agents, and volunteers shall be named as additional insureds on Designer’s and its subconsultants’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents. 3.14.3 Commercial General Liability (a) The Designer shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (b) Coverage for Commercial General Liability insurance shall be at least as broad as the following: Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. Commercial General Liability Insurance must include coverage for the following: (1) Bodily Injury and Property Damage (2) Personal Injury/Advertising Injury (3) Premises/Operations Liability (4) Products/Completed Operations Liability (5) Aggregate Limits that Apply per Project (6) Explosion, Collapse and Underground (UCX) exclusion deleted 101 (7) Contractual Liability with respect to this Contract (8) Broad Form Property Damage (9) Independent Contractors Coverage (c) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement. (d) The policy shall give City its officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (e) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. 3.14.4 Automobile Liability (a) At all times during the performance of the work under this Agreement, the Designer shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City. (b) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto). (c) The policy shall give City, its officers, employees, agents and City designated volunteers additional insured status. (d) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. 3.14.5 Workers’ Compensation/Employer’s Liability (a) Designer certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement. (b) To the extent Designer has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Designer shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. 102 Designer shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this Section. 3.14.6 Professional Liability (Errors and Omissions) (a) At all times during the performance of the work under this Agreement the Designer shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Designer. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. 3.14.7 Minimum Policy Limits Required (a) The following insurance limits are required for the Agreement: Combined Single Limit Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability $1,000,000 combined single limit Employer’s Liability $1,000,000 per accident or disease Professional Liability $1,000,000 per claim and aggregate (errors and omissions) (b) Defense costs shall be payable in addition to the limits. (c) Requirements of specific coverage or limits contained in this Section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. 3.14.8 Evidence Requ ired (a) Prior to execution of the Agreement, the Designer shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. 103 3.14.9 Policy Provisions Required (a) Designer shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Designer shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non- payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Designer shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (b) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Designer’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (c) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Designer shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Designer shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (d) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Designer or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Designer hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (e) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Designer from liability in excess of such coverage, nor shall it limit the Designer’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. 3.14.10 Qualifying Insurers (a) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements: Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. 3.14.11 Additional Insurance Provisions (a) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Designer, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise 104 assumed by the Designer pursuant to this Agreement, including but not limited to, the provisions concerning indemnification. (b) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Designer or City will withhold amounts sufficient to pay premium from Designer payments. In the alternative, City may cancel this Agreement. (c) The City may require the Designer to provide complete copies of all insurance policies in effect for the duration of the Project. (d) Neither the City nor any of the officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. 3.14.12 Subconsultant Insurance Requirements (a) Designer shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this Section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Designer, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. 3.15 Records. Designer shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Designer shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Designer shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of five (5) years from the date of final payment under this Agreement. 3.16 Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described herein. Any additional or subsequent construction at the site of the Project, or at any other City site, will be covered by, and be the subject of, a separate Agreement for design services between City and the designer chosen therefor by City. 3.17 Mediation. Disputes arising from this Agreement may be submitted to mediation if mutually agreeable to the parties hereto. The type and process of mediation to be utilized shall be subject to the mutual agreement of the parties. 3.18 No Third Party Rights. 105 This Agreement shall not create any rights in, or inure to the benefits of, any third party except as expressly provided herein. 3.19 Governing Law. This Agreement shall be construed in accordance with, and governed by, the laws of the State of California. Venue shall be in the Superior Court of California for the County of Los Angeles. 3.20 Exhibits and Recitals. All exhibits and recitals contained herein and attached hereto are material parts of this Agreement and are incorporated as if fully set forth. 3.21 Severability. Should any p rovision in the Agreement be held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall continue in full force and effect. 3.22 Non-Waiver. None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing. 3.23 Safety. Designer shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Designer shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of its employees, consultant and subcontractors appropriate to the nature of the work and the conditions under which the work is to be performed. 3.24 Harassment Policy. Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: City of Rolling Hills Attn: Christian Horvath 2 Portuguesa Bend Road Rolling Hills, CA 90274 Hot Line Construction, Inc. Attn: Mark Meekhof 9020 Brentwood Blvd., Suite H Brentwood, CA 94513 106 Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.25 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.26 City’s Right to Employ Other Consultants. City reserves right to employ other consultants, including designers, in connection with this Project or other projects. 3.27 Prohibited Interests. 3.27.1 Solicitation. Designer maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Designer, to solicit or secure this Agreement. Further, Designer warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Designer, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. 3.27.2 Conflict of Interest. For the term of this Agreement, no director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.28 Labor Certification. By its signature hereunder, Designer certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake self -insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 3.29 Subcontracting. As specified in this Agreement, Designer shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to each and every provision of this Agreement. 3.30 Supplemental Conditions. Any supplemental conditions shall be attached as an exhibit to this Agreement, and that exhibit shall be incorporated herein by reference. 3.31 Entire Agreement. 107 This Agreement, with its exhibits, contains the entire agreement of the parties hereto, and supersedes any and all other prior or contemporaneous negotiations, understandings and oral or written agreements between the parties hereto. Each party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. Furthermore, any modification of this Agreement shall only be effective if in writing signed by all parties hereto. [SIGNATURES ON FOLLOWING PAGE] 108 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year written below. CITY OF ROLLING HILLS HOT LINE CONSTRUCTION, INC. __________________________ __________________________ KARINA BAÑALES, City Manager MARK MEEKHOF, DATE:___________ DATE:_____________ ATTEST: __________________________ CITY CLERK APPROVED AS TO FORM: __________________________ PATRICK DONEGAN CITY ATTORNEY 109 EXHIBIT “A” DESIGNER’S SCOPE OF SERVICES . 110 Page 1 of 3 INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CA 90274 (310) 377-1521 FAX (310) 377-7288 REQUEST FOR PROPOSALS POTHOLING SERVICES IN SUPPORT OF EASTFIELD DRIVE SCE RULE 20B PROJECT FOR CITY OF ROLLING HILLS PROPOSALS DUE 3 PM, April 9, 2024 SECTION 1 - BACKGROUND The City of Rolling Hills (City), California invites firms familiar with Southern California Edison (SCE) potholing requirements to submit fee proposals for performing potholing services in support of the Eastfield Drive SCE Rule 20B Utility Undergrounding project. This project will underground existing overhead power and telecommunication lines along Eastfield Drive from approximately 45 Eastfield Drive to Outrider Road. The City has received federal hazard mitigation grant funding in support of undergrounding existing overhead utilities to reduce fire hazards. In cooperation with SCE and other utility companies utilizing existing overhead facilities, SCE has prepared preliminary design plans for the defined project area. Under terms of the grant funding, the City is responsible to construct the underground infrastructure utilizing SCE’s design. Prior to finalizing the design, SCE requires potholing to confirm the vault locations. The successful Proposer, shall have at least five years of experience on similar types of projects. All Proposers responding to this Request for Proposal (RFP) will be evaluated on the basis of their fee. Note: all roads within the City are private and coordination with the Rolling Hills Community Association (RHCA) may also be required. 111 Page 2 of 3 SECTION 2 - SCOPE OF SERVICES The City of Rolling Hills is requesting a fee from selected firms that have experience in performing potholing services for SCE to validate vault locations as currently designed. Being a City project, prevailing wage is a requirement. The proposed vault locations are proposed in or adjacent to an existing two-lane road ( one-lane each direction). Scope of work includes: 1. Potholing for 6 vault locations as identified on SCE’s Preliminary Design Plans for the Rule 2B Project (see Attachment 1) 2. Obtaining the required permit (no fee) from RHCA (see Attachment 2) 3. Restoring the potholing trenches in accordance with RHCA Trench Backfill and Pavement Repairs (see Attachment 3) 4. Provide appropriate Traffic Control, including flagmen where deemed necessary. SECTION 3 - PROPOSAL REQUIREMENTS Proposals will be considered from firms with experience and success in performing potholing services for SCE and based on fee. Please submit the following for consideration. 1. Lump Sum Fee 2. Submit hourly fee schedule for any additional services that may be required. 3. Any exceptions to the contract agreement the selected firm will be required to sign. SECTION 4 - PROPOSAL PROCEDURE All proposals are due no later than 3 pm on April 9, 2024. The City reserves the right to extend the deadline. The City will respond to request for clarification in written RFP addendum(s) as needed. All inquiries shall be directed to Christian Horvath at chorvath@cityofrh.net by 5 pm on April 3, 2024. Please submit the proposal via email to: Christian Horvath City Clerk chorvath@cityofrh.net Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposal unless clearly and specifically noted in the proposal submitted and confirmed in the agreement between the City of Rolling Hills and the firm selected. The City of Rolling Hills reserves the right without prejudice to reject any or all proposals. No reimbursement will be made by the City for costs incurred in the preparation of the response to this Request for Proposal. Submitted materials will not be returned and become the property of the City of Rolling Hills. 112 Page 3 of 3 SECTION 5 – SELECTION/EVALUATION CRITERIA Proposals will be evaluated on fee / hourly fee schedule submitted. SECTION 6 - ATTACHMENTS Attachment 1 – SCE Preliminary Design Plans Attachment 2 – Rolling Hills Community Association Permit Application Attachment 3 – Rolling Hills Community Association Trench Backfill and Pavement Repair Requirements 113 Contact USADial 811 or 800-422-4133UNDERGROUND SERVICE ALERTwww.digalert.org/contact114 Contact USADial 811 or 800-422-4133UNDERGROUND SERVICE ALERTwww.digalert.org/contact115 AABBAABBAA116 117 118 119 120 ExcavationPermit - Updated 2023-1-26.tlfpc ROLLING HILLS COMMUNITY ASSOCIATION 1 Portuguese Bend Road, Rolling Hills, CA 90274 (310) 544-6222; Fax: (310) 544-6766 AGREEMENT FOR EXCAVATION OF EASEMENTS The Rolling Hills Community Association grants permission to: Company / Utility Name Contact Person Street Address City, State, Zip Phone Email May cut and excavate at: Property Address/Name of Street In the area of: Describe job location For the purpose of: Description of work Power Outage/Service Turn-off Required: YES NO Traffic Control Plan included: YES NO Note that any project that requires multiple vehicles and/or trailers be parked or located in any portion of any roadway at a work site or sites will require the applicant to attach to this application a Traffic Control Plan that complies with the “California Manual on Uniform Traffic Control Devices” (most current edition including most current revisions). Applicant agrees that all work will be done in accordance with and limited to the submitted plans and with the attached requirements of this agreement and that the easement shall be restored to its original condition and left in a safe condition. To the extent appliable, all work shall comply with all laws and regulations regulating the activities of the applicant. Prior to the commencement of any work, the applicant shall deliver to the Manager of the Rolling Hills Community Association a certificate of insurance naming the Rolling Hills Community Association as additionally insured for a minimum of three million dollars ($3,000,000). Applicant shall place two inches of temporary pavement on all cuts in all types of existing pavement , or more as may be required by the Manager based on the nature and scope of the project. Applicant shall perform no work nor make any repairs until authorized by the Rolling Hills Community Association except to eliminate an emergency condition. If excavation involves cutting the RHCA roadway, a minimum deposit of $2,500 must be made with the application prior to the start of work. That deposit amount may be adjusted upwards at the discretion of the Rolling Hills Community Association for projects with larger areas of excavation. When said cut or excavation has been filled and repaired to a safe and permanent condition to the Manager of the Association, that portion of the deposit not consumed by Rolling Hills (Staff Use Only) Permit No. _______________ Permit Fee $250 PAID INVOICED Date Issued ______________ Expiration Date (90 Days) _______________ Extension Approved _______________ Expiration Date ________________ 121 ExcavationPermit - Updated 2023-1-26.tlfpc Community Association in its review and inspections shall be released and discharged. In the event that the initial deposit is deemed to be insufficient to cover the costs of the Rolling Hills Community Association in its review and inspections, further deposits may be required, and must be tendered within five working days of each such request. All work sites, working conditions, and work performed must at all times comply with all federal, state, local government and agency laws, general orders, and regulations, including without limitation to those promulgated by OSHA, CAL/OSHA, and the California Public Utilities Commission. The parties agree that if said cut or excavation made in a road is not filled and repaired to a satisfactory usable condition within seven calendar days after completion of the work the Manager shall forthwith cause the same to be filled and repaired and the cost shall be charged against the cash deposit posted with the application, or as may be increased by the Manager. The parties agree that applicant shall be responsible for all loss or damage incurred by the Rolling Hills Community Association. The applicant shall indemnify, hold harmless, and defend the Rolling Hills Community Association in connection with all claims whatsoever regarding any work performed by the applicant in the streets, property, and easements of the Rolling Hills Community Association for a period of fifty (50) years from the date of completion of such work. The applicant shall have no right to settle or compromise any such claims without the express authority of the Board of Directors of the Rolling Hills Community Association. _________________________________ ROLLING HILLS COMMUNITY ASSN. By: By: _________________________________ _______________________________________ Notify the Association Office prior to starting work & once it is completed (310) 544-6222. 122 ExcavationPermit - Updated 2023-1-26.tlfpc EXCAVATION AGREEMENT REQUIREMENTS 1. All work, unless otherwise specified, shall be completed in accordance with the specifications of the Rolling Hills Community Association Trench Backing and Pavement Repair guidelines. 2. One set of plans must be digitally submitted for consideration. Hard copies may be required at the discretion of staff. 3. A copy of this agreement and plans shall be kept on the job at all times. If a utility pole is being replaced, a copy of this permit must be provided to the gates with the delivery of the pole. 4. A traffic control plan that conforms to the latest edition of the State of California MUTCD must be submitted with the completed application. Traffic control measures are required and must be discussed with and approved by the RHCA’s staff prior to issuing the permit. Flag men are required if any portion of a lane is closed. One lane of travel must be maintained at all times. If it is necessary to completely close the road, the contractor must contact the RHCA office a minimum of TWO WEEKS in advance to discuss and make proper arrangements. 5. Trail closed signs are required if any portion of a bridle trail is closed and the contractor must contact RHCA’s Maintenance Supervisor at (310) 541-3544 to make such arrangements. 6. Utility poles or other structures that require a helicopter set must be arranged with the RHCA office a minimum of TWO WEEKS in advance to discuss and make proper arrangements. 7. The contractor is required to notify the RHCA Office prior to the start of work. It is the responsibility of the utility/contractor to notify any affected homeowners of power outages. 8. The contractor must acquire permission from the property owner prior to working or accessing any private property. 9. Proof of Dig Alert notifications for all areas subject to excavation must be provided in advance of the commencement of any underground work. 10. Dig Alert/USA and other utility markings on roads must be entirely removed at the completion of work. No permanent paint or other marking shall be permitted at any time. 11. Bridle Trails and road shoulders disturbed by excavation must be restored to original conditions (signs and mailboxes re-set, decomposed granite or other special surfaces replaced.) 12. If a utility pole is removed, it must be removed by the applicant from the area of the Rolling Hills Community Association for disposal or other disposition. 13. Applicant shall be legally and financially responsible for all damage caused by it to the property of the Rolling Hills Community Association and its members. 123 Rolling Hills Community Association TRENCH BACKFILL AND PAVEMENT REPAIRS NOTES BELOW GROUND 1A. SEE STANDARD PLAN 2A. FOR TRENCHES LONGER THAN 200’ OR LARGER THAN 1,000 SQUARE FEET, A LICENSED SOILS ENGINEER SHALL BE PRESENT TO MONITOR THE NATIVE OR IMPORTED BACKFILL OPERATION AND TEST FOR COMPACTION AT 100’ OR 200 SQUARE FOOT MAXIMUM INTERVALS. 3A. IN AREAS NOT IN EXISTING ROADWAY, BACKFILL SHALL BE COMPACTED TO A RELATIVE COMPACTION OF 90% 4A. EXCAVATED MATERIAL NOT APPROVED FOR USE IN TRENCH BACKFILL SHALL BE REMOVED FROM JOB SITE UNLESS OTHERWISE USED IN THE WORK. 5A. WHERE WET, UNSTABLE OR RUNNING SOIL IS ENCOUNTERED, SOLID SHEATHING IS REQUIRED FOR ALL VERTICAL TRENCH WALLS. 6A. ALL SHORING SHALL BE DESIGNED BY A CIVIL ENGINEER IN ACCORDANCE WITH SOIL REPORT. VISIBLE SURFACE: 1B. CRACKS SHALL BE SEALED AND A TYPE 2 SLURRY SEAL COATING WITH 2% LATEX SHALL BE APPLIED FROM LANE LINE TO LANE LINE FOR LONGITUDINAL TRENCHES GREATER THAN 200’ IN LENGTH FOR ANY LANE AFFECTED. METHODOLOGY 1C. AT THE END OF EACH WORK DAY, ANY TRENCH IN AN ARTERIAL ROAD SHALL BE COVERED BY NON- SKID STEEL PLATES OR BE PAVED WITH TEMPORARY OR PERMANENT PAVEMENT FLUSH WITH ADJACENT PAVEMENT SURFACES. SECURED IN PLACE, RAMPED WITH A.C. AND NOT USED FOR MORE THAN 48 CONSECUTIVE HOURS ON THE SAME SEGMENT OR TREN CH. “PLATE AHEAD’ SIGN9S0 SHALL BE PROPERTY INSTALLED WHEN PLATES ARE IN USE. OTHER CITY STREETS MAY HAVE LESSER REQUIREMENTS AND WILL BE CONSIDERED ON A CASE BY CASE BASIS. 2C. ALL TRAFFIC LANES SHALL BE CLEANED AND RESTORED FOR USE IMMEDIATELY UPON PLACEMENT OF TEMPORARY A.C. PAVEMENT, TRENCH PLATES AND/OR FINAL A.C. PAVEMENT. 3C. ALL TRAFFIC STRIPING AND/OR MARKING(S) REMOVED OR DAMAGED DURING CONSTRUCTION SHALL BE REPLACED IN KIND AS DIRECTED. 4C. TRAFFIC CONTROL SHALL BE PER CONTRACTORS “CONST RUCTION TRAFFIC CONTROL PROCEDURES ON CITY STREETS” AS SUBMITTED TO AND APPROVED BY THE RHCA. 5C. A COLLECTION DEVICE SHALL BE USED TO COLLECT SEDIMENTS GENERATED DURING SAWCUTTING OPERATION. 6C. ALL PAVEMENT REMOVALS SHALL USE STRAIGHT LIGHT SAWCUTS A MINIMUM OF 1.5” DEEP. M: Road Standards/Trench Backfill and Pavement Repair Specifications – Updated 2019-02-21 124 125 126 EXHIBIT “A-1” FEDERAL PROVISIONS During the performance of this contract, Designer shall comply with all applicable federal laws and regulations including but not limited to the federal contract provisions in this Exhibit. 1. CONTRACTING WITH SMALL AND MINORITY FIRMS, WOMEN’S BUSINESS ENTERPRISE AND LABOR SURPLUS AREA FIRMS (2 C.F.R. § 200.321) (A) Designer shall be subject to 2 C.F.R. § 200.321 and will take affirmative steps to assure that minority firms, women’s business enterprises, and labor surplus area firms are used when possible and will not be discriminated against on the grounds of race, color, religious creed, sex, or national origin in consideration for an award. (B) Affirmative steps shall include: (i) Placing qualified small and minority businesses and women's business enterprises on solicitation lists; (ii) Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; (iii) Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority business, and women's business enterprises; (iv) Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority business, and women's business enterprises; and (v) Using the services/assistance of the Small Business Administration (SBA), and the Minority Business Development Agency (MBDA) of the Department of Commerce. Designer shall submit evidence of compliance with the foregoing affirmative steps when requested by the City. 2. COST PRINCIPLES (2 C.F.R. PART 200, SUBPART E) (A) Costs under this contract must conform to the cost principles set forth under the Uniform Rules at 2 C.F.R. Part 200, subpart E (“Cost Principles”). In general, costs must (i) be necessary and reasonable; (ii) allocable to the grant award; (iii) conform to any limitations or exclusions set forth in the Cost Principles; (iv) be adequately documented; and (v) be determined in accordance with generally accepted accounting principles (“GAAP”), except, for state and local governments and Indian tribes only, as otherwise provided for in 2 C.F.R. Part 200, subpart E. 2 C.F.R. § 200.403. Costs that are determined unallowable pursuant to a federal audit are subject to repayment by Designer. 3. ACCESS TO RECORDS & RECORD RETENTION (2 C.F.R. 200.336) 127 (A) Designer shall comply with 2 C.F.R. § 200.336 and provide the Federal Agency administering the funds for which this Project is funded (“Federal Agency”), Inspectors General, the Comptroller General of the United States, and the State of California or any of their authorized representatives access, during normal business hours, to documents, papers, books and records which are directly pertinent to this contract for the purposes of making and responding to audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to the Designer's personnel for the purpose of interview and discussion related to the books and records. (B) The Designer agrees to permit any of the foregoing parties to reproduce by any means whatsoever or to copy excerpts and transcriptions as reasonably needed. (C) The Designer agrees to provide the Inspectors General, the Comptroller General of the United States, and the State of California or their authorized representatives access to construction or other work sites pertaining to the work being completed under the contract. 4. REQUIRED CONTRACT PROVISIONS IN ACCORDANCE WITH APPENDIX II TO PART 200 – CONTRACT PROVISIONS FOR NON-FEDERAL ENTITY CONTRACTS UNDER FEDERAL AWARDS (2 C.F.R. § 200.326) (A) Appendix II to Part 200 (A); Appendix II to Part 200 (B): Remedies for Breach; Termination for Cause/Convenience. If the contract is in excess of $10,000 and the contract does not include provisions for both termination for cause and termination for convenience by the City, including the manner by which it will be effected and the basis for settlement, then the following termination clauses shall apply. If the contract is for more than the simplified acquisition threshold and does not provide for administrative, contractual, or legal remedies in instances where Contractor violates or breaches the terms of the contract, then the following termination clauses shall apply and have precedence over the contract. (i) Termination for Convenience. The City may, by written notice to Designer, terminate this contract for convenience, in whole or in part, at any time by giving written notice to Designer of such termination, and specifying the effective date thereof (“Notice of Termination for Convenience”). If the termination is for the convenience of the City, the City shall compensate Designer for work or materials fully and adequately provided through the effective date of termination. No amount shall be paid for unperformed work or materials not provided, including anticipated profit. Designer shall provide documentation deemed adequate by the City to show the work actually completed or materials provided by Designer prior to the effective date of termination. This contract shall terminate on the effective date of the Notice of Termination. (ii) Termination for Cause. If Designer fails to perform pursuant to the terms of this contract, the City shall provide written notice to Designer specifying the default (“Notice of Default”). If Designer does not cure such default within ten (10) calendar days of receipt of Notice of Default, the City may terminate this contract for cause. If Designer fails to cure a default as set forth above, the City may, by written notice to Designer, terminate this contract for cause, in whole or in part, and specifying the effective date thereof (“Notice of Termination for Cause”). If the termination is for cause, Designer shall be compensated for that portion of the work or materials provided which has been 128 fully and adequately completed and accepted by the City as of the date the City provides the Notice of Termination. In such case, the City shall have the right to take whatever steps it deems necessary to complete the project and correct Designer's deficiencies and charge the cost thereof to Designer, who shall be liable for the full cost of the City's corrective action, including reasonable overhead, profit and attorneys' fees. (iii) Reimbursement; Damages. The City shall be entitled to reimbursement for any compensation paid in excess of work rendered or materials provided and shall be entitled to withhold compensation for defective work or other damages caused by Designer’s performance of the work. (iv) Additional Termination Provisions. Upon receipt of a Notice of Termination, either for cause or for convenience, Designer shall promptly discontinue the work unless the Notice directs to the contrary. Designer shall deliver to the City and transfer title (if necessary) to all provided materials and completed work, and work in progress including drafts, documents, plans, forms, maps, products, graphics, computer programs and reports. The rights and remedies of the parties provided in this Section are in addition to any other rights and remedies provided by law or under this contract. Designer acknowledges the City’s right to terminate this contract with or without cause as provided in this Section, and hereby waives any and all claims for damages that might arise from the City’s termination of this contract. The City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Designer shall not be entitled to payment for unperformed work or materials not provided, and shall not be entitled to damages or compensation for termination of work or supply of materials. If City terminates this contract for cause, and it is later determined that the termination for cause was wrongful, the termination shall automatically be converted to and treated as a termination for convenience. In such event, Designer shall be entitled to receive only the amounts payable under this Section, and Designer specifically waives any claim for any other amounts or damages, including, but not limited to, any claim for consequential damages or lost profits. The rights and remedies of the City provided in this Section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this contract including, but not limited to, the right to specific performance. (B) Appendix II to Part 200 (C) – Equal Employment Opportunity: Except as otherwise provided under 41 C.F.R. Part 60, Designer shall comply with the following equal opportunity clause, in accordance with Executive Order 11246 of September 24, 1965 entitled “Equal Employment Opportunity,” as amended by Executive Order 11375 of October 13, 1967 and implementation regulations at 41 C.F.R. Chapter 60: (i) Designer will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. Designer will take affirmative action to insure that applicants are employed and that employees are treated equally during employment, without regard to race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment upgrading, demotion, transfer, recruitment, or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training including apprenticeship. Designer agrees to post in conspicuous places, available 129 to employees and applicants for employment, notices to be provided by the City setting forth the provisions of this nondiscrimination clause. (ii) Designer will, in all solicitations or advertisements for employees placed by or on behalf of Designer, state that all qualified applicants will receive consideration for employment without regard to their race, color, religion, sex, or national origin. (iii) Designer will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with Designer's legal duty to furnish information. (iv) Designer will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or workers' representative of the contractor's commitments under Section 202 of Executive Order No. 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (v) Designer will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (vi) Designer will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. (vii) In the event of Designer's noncompliance with the nondiscrimination clauses of this contract or with any of such rules, regulations, or orders, this contract may be cancelled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order No.11246 of Sept. 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No.11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. (viii) Designer will include the provisions of paragraphs (i) through (viii) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of 130 Executive Order No. 11246 of September 24,1965, so that such provisions will be binding upon each subcontractor or vendor. Designer will take such action with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a means of enforcing such provisions including sanctions for noncompliance: Provided, however, that in the event Designer becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction, Designer may request the United States to enter into such litigation to protect the interests of the United States. (C) Appendix II to Part 200 (D) – Davis-Bacon Act; Copeland Act: [Not Used. Does not apply to design professional services. 29 CFR § 5.2] (D) Appendix II to Part 200 (E) – Contract Work Hours and Safety Standards Act: (i) If this contract is in excess of $100,000 and involves the employment of mechanics or laborers, Designer shall comply with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. Part 5). Under 40 U.S.C. 3702, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. (ii) No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. (iii) In the event of any violation of the clause set forth in paragraph (ii) of this section the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the City of Columbia or a territory, to such City or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (ii) of this section, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (ii) of this section. (iv) The City shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, 131 from any moneys payable on account of work performed by the Designer or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (iii) of this section. (v) The Designer or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (ii) through (v) of this Section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The Contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (ii) through (v) of this Section. (E) Appendix II to Part 200 (F) – Rights to Inventions Made Under a Contract or Agreement: (i) If the Federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the non-Federal entity wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the non-Federal entity must comply with the requirements of 37 C.F.R. Part 401 (Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements), and any implementing regulations issued by the City. (ii) The regulation at 37 C.F.R. § 401.2(a) currently defines “funding agreement” as any contract, grant, or cooperative agreement entered into between any Federal agency, other than the Tennessee Valley Authority, and any contractor for the performance of experimental, developmental, or research work funded in whole or in part by the Federal government. This term also includes any assignment, substitution of parties, or subcontract of any type entered into for the performance of experimental, developmental, or research work under a funding agreement as defined in the first sentence of this paragraph. (F) Appendix II to Part 200 (G) – Clean Air Act and Federal Water Pollution Control Act: If this contract is in excess of $150,000, Designer shall comply with all applicable standards, orders, or requirements issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387). (i) Pursuant to the Clean Air Act, (1) Designer agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act, as amended, 42 U.S.C. § 7401 et seq., (2) Designer agrees to report each violation to the City and understands and agrees that the City will, in turn, report each violation as required to assure notification to the Federal awarding agency and the appropriate Environmental Protection Agency Regional Office, and (3) Designer agrees to include these requirements in each subcontract exceeding $150,000. 132 (ii) Pursuant to the Federal Water Pollution Control Act, (1) Designer agrees to comply with all applicable standards, orders or regulations issued pursuant to the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq., (2) Designer agrees to report each violation to the City and understands and agrees that the City will, in turn, report each violation as required to assure notification to the Federal awarding agency and the appropriate Environmental Protection Agency Regional Office, and (3) Designer agrees to include these requirements in each subcontract exceeding $150,000. (G) Appendix II to Part 200 (H) – Debarment and Suspension: A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 C.F.R. part 1986 Comp., p. 189) and 12689 (3 C.F.R. part 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. (i) This contract is a covered transaction for purposes of 2 C.F.R. pt. 180 and 2 C.F.R. pt. 3000. As such Designer is required to verify that none of the Designer, its principals (defined at 2 C.F.R. § 180.995), or its affiliates (defined at 2 C.F.R. § 180.905) are excluded (defined at 2 C.F.R. § 180.940) or disqualified (defined at 2 C.F.R. § 180.935). (ii) Designer must comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C and must include a requirement to comply with these regulations in any lower tier covered transaction it enters into. (iii) This certification is a material representation of fact relied upon by City. If it is later determined that Designer did not comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C, in addition to remedies available to the City, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment. (iv) Designer warrants that it is not debarred, suspended, or otherwise excluded from or ineligible for participation in any federal programs. Designer also agrees to verify that all subcontractors performing work under this contract are not debarred, disqualified, or otherwise prohibited from participation in accordance with the requirements above. Designer further agrees to notify the City in writing immediately if Designer or its subcontractors are not in compliance during the term of this contract. (H) Appendix II to Part 200 (I) – Byrd Anti-Lobbying Act: If this contract is in excess of $100,000, Designer shall have submitted and filed the required certification pursuant to the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1353). If at any time during the contract term funding exceeds $100,000.00, Designer shall file with the City the Federal Standard Form LLL titled “Disclosure Form to Report Lobbying.” Designers that apply or bid for an award exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of 133 Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non -Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient. (I) Appendix II to Part 200 (J) – Procurement of Recovered Materials: (i) Designer shall comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement. (ii) In the performance of this contract, the Designer shall make maximum use of products containing recovered materials that are EPA-designated items unless the product cannot be acquired: Competitively within a timeframe providing for compliance with the contract performance schedule; Meeting contract performance requirements; or At a reasonable price. (iii) Information about this requirement, along with the list of EPA-designate items, is available at EPA’s Comprehensive Procurement Guidelines web site, https://www.epa.gov/smm/comprehensive-procurement-guideline-cpg - program. 5. MISCELLANEOUS PROVISIONS (A) Designer acknowledges that 31 U.S.C. Chapter 38 (Administrative Remedies for False Claims and Statements) applies to the Designer’s actions pertaining to this contract. (B) The Federal Government is not a party to this contract and is not subject to any obligations or liabilities to the City, Designer, any subcontractors or any other party pertaining to any matter resulting from the contract. (C) General and Administrative Expenses And Profit For Time And Materials Contracts/Amendments. (i) General and administrative expenses shall be negotiated and must conform to the Cost Principles. (ii) Profit shall be negotiated as a separate element of the cost. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the Designer, the Designer's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work. 134 (iii) Any agreement, amendment or change order for work performed on a time and materials basis shall include a ceiling price that Designer exceeds at its own risk. 6. BUY AMERICA DOMESTIC PROCUREMENT PREFERENCE As required by Section 70914 of the Bipartisan Infrastructure Law (also known as the Infrastructure Investment and Jobs Act), P.L. 117-58, on or after May 14, 2022, none of the funds under a federal award that are part of Federal financial assistance program for infrastructure may be obligated for a project unless all of the iron, steel, manufactured products, and construction materials used in the project are produced in the United States, unless subject to an approved waiver. The requirements of this section must be included in all subawards, including all contracts and purchase orders for work or products under this program. Recipients of an award of Federal financial assistance are hereby notified that none of the funds provided under this award may be used for a project for infrastructure unless: 1. all iron and steel used in the project are produced in the United States--this means all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States; 2. all manufactured products used in the project are produced in the United States—this means the manufactured product was manufactured in the United States; and the cost of the components of the manufactured product that are mined, produced, or manufactured in the United States is greater than 55 percent of the total cost of all components of the manufactured product, unless another standard for determining the minimum amount of domestic content of the manufactured product has been established under applicable law or regulation; and 3. all construction materials are manufactured in the United States—this means that all manufacturing processes for the construction material occurred in the United States. The Buy America preference only applies to articles, materials, and supplies that are consumed in, incorporated into, or affixed to an infrastructure project. As such, it does not apply to tools, equipment, and supplies, such as temporary scaffolding, brought to the construction site and removed at or before the completion of the infrastructure project. Nor does a Buy America preference apply to equipment and furnishings, such as movable chairs, desks, and portable computer equipment, that are used at or within the finished infrastructure project but are not an integral part of the structure or permanently affixed to the infrastructure project. For further information on the Buy America preference, please visit www.doi.gov/grants/BuyAmerica. Additional information can also be found at the White House Made in America Office website: www.whitehouse.gov/omb/management/made-in-america/. Designer shall comply with all of City’s obligations City’s obligation with respect to Section 70914 of the Bipartisan Infrastructure Law as a Recipient of a award for Federal financial assistance in the performance of this Agreement as a condition of this Agreement. 7. ADDITIONAL TERMS. a. The project will be subject to National Environmental Policy Act (NEPA) as well as the California Environmental Quality Act (“CEQA”). 135 b. The project will be subject to Section 504 of the Rehabilitation Act and the Architectural Barriers Act Standards. c. Plans, specifications, all contractor solicitation documentation and contract documents must be submitted to USDA Rural Development for review and concurrence. d. The construction project may be subject to the Build America Buy American (BABA) requirements. If so, the following provisions should be considered during design and must be added to the bidding and construction contract documents: i. Information for Designer: This contract is expected to be funded in whole or in part using funds from the Infrastructure Investment and Jobs Act. Section 70914 of the IIJA prohibits the use of these funds unless all iron, steel, and manufactured goods are produced in the United States. All iron and steel manufacturing processes must take place in the United States, except for metallurgical processes involving refinement of steel additives. There is no requirement for the origin of components and subcomponents of manufactured goods. Products listed at 48 CFR 25.104(a) have been determined to be unavailable in the United States and if required for the project may be purchased from foreign sources. No unauthorized use of foreign iron, steel, and/or manufactured goods will be allowed on this project. {The following waivers apply to this project:} ii. Supplemental General Conditions: This contract is expected to be funded in whole or in part using funds from the IIJA. Section 70914 of the IIJA prohibits the use of these funds unless all iron, steel, and manufactured goods are produced in the United States. All iron and steel manufacturing processes must take place in the United States, except for metallurgical processes involving refinement of steel additives. There is no requirement for the origin of components and subcomponents of manufactured goods. Products listed at 48 CFR 25.104(a) have been determined to be unavailable in the United States and if required for the project may be purchased from foreign sources. No unauthorized use of foreign iron, steel, and/or manufactured goods will be allowed on this project. {The following waivers apply to this project:} e. If the Project receives an Emergency Rural Healthcare Grant (ERHC), compliance with the prevailing wage requirements of the Davis-Bacon and Related Acts will be required for contractors and subcontractors performing construction. Before bidding, the general wage determination from the Department of Labor website (htpps://www.dol.gov) must be added to bid documents and all contracts covered by the Act must include the statement “The contractor must comply with the minimum rates for wages for laborers and mechanics as determined by the Secretary of Labor in accordance with the provisions of the Davis-Bacon and Related Acts.” Labor standards provisions from 29 CFR 5.5(a) must be included in every contract. f.. If the existing building is classified as Historic, compliance with Section 106 of the National Historic Preservation Act of 1966 (NHPA) will be required. 136 EXHIBIT “B” FEE 1. FEE SCHEDULE. Designer will invoice City on a monthly cycle based on the following fee schedule. Designer will include with each invoice a detailed progress report that indicates the amount of budget spent on each phase and the total amount spent against the Total Compensation. Designer will inform City regarding any out-of-scope work being performed by Designer for which Designer intends to seek compensation from City. 137 Agenda Item No.: 13.A Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:ROBERT SAMARIO, FINANCE DIRECTOR THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: FISCAL YEAR 2023/24 THIRD QUARTER INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED MARCH 31, 2024 DATE:June 10, 2024 BACKGROUND: Each quarter, City staff prepares an analysis of all fund revenues and expenditures to determine to what extent they align with expectations established through the current budget as amended. The result of this analysis is then presented to the City Council. The analysis aims to identify any unexpected variances, particularly unfavorable ones, so that the City can take appropriate action. In addition, the analysis performed through March 2024 is instrumental in developing the revenue estimates contained in the adopted budget for the following fiscal year. DISCUSSION: Attachment A provides a detailed narrative analysis and discussion based on staff's analysis of revenues and expenditures in relation to the budgeted estimates and a discussion of General Fund reserves. The key findings are summarized below. REVENUES Property Taxes - As the City's largest revenue source, making up 48% of total General Fund revenues, tracking its progress is important throughout the fiscal year. Because property tax revenues are not received evenly during the fiscal year, staff evaluated revenues through March 31, 2024, totaling $856,542, against a seasonally adjusted budget using trends over the last three years. Based on the seasonally adjusted budget of $897,750, it appears revenues will end the fiscal year approximately $40,000 below budget. Building Permits - Revenues through March 31, 2024, totaled $274,248. However, this represents only seven payments due to untimely payments from the County, which provides building services to the City by contract. Extrapolating from these results thus far, it appears revenues will reach approximately $470,000 by fiscal year-end, resulting in a shortfall of 138 approximately $130,000 in relation to the budgeted estimates. EXPENDITURES General Fund expenditures are well below the amended budget. Through March 31, 2024, operating expenditures totaled $1,624,224 against a prorated budget of $2,044,068, resulting in a savings of $419,844. The variance is due to many factors, and the key factors are explained in Attachment A. FISCAL IMPACT: None. RECOMMENDATION: Receive and file. ATTACHMENTS: Attachment A - CL_AGN_240610_CC_NarrativeAnalysis_FY23-24_Q3_Review.pdf Attachment B - CL_AGN_240610_CC_GeneralFund_Revenues.pdf Attachment C - CL_AGN_240610_CC_GeneralFund_Exp_ByDept.pdf Attachment D - CL_AGN_240610_CC_GeneralFund_Exp_Detail.pdf Attachment E - CL_AGN_240610_CC_Restricted_Funds.pdf Attachment F - CL_AGN_240610_CC_GeneralFund_BudgetAmendments.pdf 139 Attachment 1 CITY OF ROLLING HILLS Fiscal Year 2023/2024 Third Quarter Review Nine Months Ended March 31, 2024 OVERVIEW The analysis below provides a comparison of actual revenues and expenditures to the amended budget through the nine months ended March 31, 2024. Although there are still another three months left in the fiscal year and the current trends can change, enough data is available to make reasonably good projections of how revenues and expenditures will end the year. The largest and most important fund is the General Fund, which is where the traditional and ongoing services provided to the community are accounted for, including public safety, building/planning, emergency preparedness, and city administration. However, the City has a number of other funds that account for other important activities, programs, and services. Most of these funds account for monies that are restricted to a specific purpose and, therefore, are required to be accounted for separately. The City also accounts for large capital projects separately, including projects funded from federal and state grants. Lastly, the City provides refuse collection and disposal services by contract. This operation is accounted for in an enterprise fund. Each of the City’s funds are discussed below in the context of the mid-year review. GENERAL FUND General Fund Revenues A summary of General Fund revenues is provided in the table below, which shows that the adopted fiscal year 2023/24 revenues total $2,762,294. Staff has added a column for the “pro- rated” budget through March 31, 2024, which represents 75% (9 out of 12 months) of the annual budget to enable a more meaningful comparison to revenues realized through nine months of the fiscal year. The only exception is property taxes, which do not come in evenly throughout the year. Over the last three fiscal years, revenues through March 31, 2024, averaged 60% of the annual total realized. As such, the pro-rated budget has been “seasonally adjusted” by using 60% of the adopted budget to compare to actuals through March 31, 2024. Through March 31, 2024, revenues from all sources totaled $1,847,283, resulting in an unfavorable variance of $245,329. An analysis of each key revenue is provided below. 140 2 Property Taxes. By far, the largest General Fund revenue is from property taxes, representing 54% of total adopted revenues. At March 31, 2024, property tax revenues totaled $856,532. This is $41,218, below the seasonally adjusted budget of $897,720. This unfavorable variance is likely due to the fact that the adopted revenue budget was built upon an estimate of fiscal year 2022/23 revenues, which, in the end, came in below the year-end projection. Thus, the revenue budget for property taxes may be slightly high, and we may end the fiscal year slightly below budget even though the projected growth of 5% may be realized. It is important to note, however, that there are a couple of headwinds that will likely revenues in the next two years, both of which are tied to the impact of higher interest rates. Starting in March of 2022, the Federal Reserve made its first of eleven increases to short-term interest rates over a sixteen-month period totaling 5.25%. This is the sharpest increase in rates since the 1980 s, affecting mortgage and other borrowing rates. One of the effects of higher interest rates was the dramatic decline in home sales. For Los Angeles County, the decline was nearly 40%. In terms of its impact on property taxes, one of the immediate impacts is on supplemental tax revenues that may come in this fiscal year. Supplemental taxes are assessed when real estate is sold after the levy date in January. The assessed value of the property sold is reassessed to the sales price, which almost always exceeds the Proposition 13 assessed value. This results in a supplemental tax bill that is paid by the new owner. The more sales volume that occurs, the greater the overall supplemental taxes that are collected and allocated to local jurisdictions. Generally speaking, most of the supplemental taxes Actuals Variance Adopted Pro-Rata Thru Favorable Budget Budget 03/31/24 (Unfavorable) 401 Property Taxes 1,496,250$ 897,750$ *856,532$ (41,218)$ 405 Sales Taxes 13,905 10,429 9,497 (932) 410 Property Transfer Tax 56,222 42,166 42,333 167 415 Other Taxes 1,000 750 - (750) 420 Motor Vehicle In Lieu 269,267 201,951 138,334 (63,617) 440 Building & Other Permits 600,000 450,000 274,248 (175,752) 441 C&D Permits 5,600 4,200 6,100 1,900 450 Variance, Planning & Zoning 67,000 50,250 19,642 (30,608) 455 Animal Control Fees 150 113 343 231 460 Franchise Fees 13,000 9,750 7,651 (2,100) 480 Fines & Traffic Violations 3,500 2,625 4,300 1,675 482 Cost Recoivery - Publications 7,200 5,400 3,000 (2,400) 600 RHCA Lease Revenue 69,000 51,750 51,743 (7) 650 Public Safety Aug Fund 1,200 900 848 (52) 670 Interest on Investments 110,000 82,500 125,099 42,599 671 PARS Earnings 20,000 15,000 38,730 23,730 675 Miscellaneous Revenue 5,000 3,750 5,556 1,806 699 Transfers In - Refuse Fund 24,000 18,000 18,000 - TOTALS 2,762,294$ 1,847,283$ 1,601,954$ (245,329)$ *Seasonally adjusted budget at 3/31/24 Budget Vs Actual Through March 31, 2024 General Fund Revenues 141 3 are received by the City in the second half of the fiscal year. However, the City has collected $18,406 through March 31, 2024, which is $5,183 (22%) below prior year revenues through the third of the year. In total, the City received approximately $39,000 in supplemental taxes last fiscal year, so a 21% decline for the year, if the current trend h olds, would amount to roughly $8,179. The long-term impact, which affects growth in property taxes starting next fiscal year, is on the overall increase in assessed values, which drives the growth in property taxes received by the City. When properties are sold, the County reassesses the property to the market value represented by the sales price. Oftentimes, particularly in older communities, the increase in assessed value is substantial. Going forward, the annual property taxes are much higher as a result. When sales volumes are high, as they were prior to the recent rate hikes, this drives property tax growth well beyond the annual 2% CPI increases to assessed values established by Proposition 13. Over the last decade, the reassessment of properties sold generated an additional 3-4% of growth for an overall growth of 5-6%. However, with the sharp decline in sales, the City can expect to see a more muted growth starting next fiscal year – probably in the 3% to 3.5% range. Real Property Transfer Tax (RPTT). The significant decline in home sales caused by rising interest rates has more directly affected RPPT revenues. Because the RPTT is assessed at the time a home is sold or otherwise changes title, a decline in home sales will directly and immediately affect RPPT revenues, which are received monthly. RPTT peaked in fiscal year 2021 at approximately $133,000 but has declined since then, as evidenced by the current year’s budget of $56,222. Through March 31, 2024, revenues are at $42,333 and in line with the pro-rated budget, suggesting that revenues may have at least stabilized. Building and Other Permits. Revenues from this category are the General Fund’s second-largest revenue, with budgeted revenues of $600,000. Last fiscal year, revenues hit a 4-year high of approximately $640,000, driven by increasing building activity buoyed by favorable interest rates. However, as with property taxes and real property transfer taxes, increases in interest rates tend to affect building/development activity due to the increased costs of borrowing. We did not see the expected impact on building revenues last fiscal year; however, we have seen a significant reduction in revenues relative to budgeted/estimated revenues nine months into the fiscal year. At March 31, 2024, Building and Other Permit revenues were $274,248 versus a pro-rated budget of $450,000. However, because the remittances from the County are usually sixty days behind, the revenues through March mid-year only reflect seven months of revenues. Extrapolating for nine months, revenues would be approximately $350,000, which is still below expectations. In fiscal year 2022/23, a total of 155 permits were issued by the County on our behalf. This year, through December 31, 2023, only 60 permits have been issued, which equates to 120 for the entire fiscal year. Although we will continue to monitor these revenues through fiscal year-end, it appears revenues could end the year $150,000 below the $600,000 budget. 142 4 Interest on Investments. Excluding the funds held in the Section 115 Pension Trust, interest revenues through March 31, 2024, totaled $125,099 versus the pro-rated budget of $82,500. Revenues have been higher in the last two years for two reasons. First and foremost, over $1M has been shifted from Local Agency Investment Fund (LAIF) to CDs to capitalize on higher interest rates offered in the 3-month to 9-month window. For most of the current fiscal year, interest rates on the short end have been higher than the long end (referred to as an inverse yield curve). As a result, staff has moved more money into short-term CDs, which has yielded higher earnings. The second reason is that, generally, interest rates have increased after more than a decade of historically low-interest rates. Interest earnings from the funds held in the City’s Section 115 pension trust are also higher than expected. Through March 31, 2024, interest earnings total $38,730 versus a pro-rated budget of $15,000. General Fund Expenditures The originally adopted budget for fiscal year 2023/24 totaled $2,805,457, which included $250,000 in capital transfers, leaving an operating budget of $2,555,457. The amended budget includes appropriation carryovers and budget amendments approved between July 1 and March 31, 2024, and totals $4,386,238, of which $1,660,814 is for one-time capital transfers. Excluding capital transfers, expenditures through March 31, 2024, totaled $1,624,224, resulting in a favorable variance of $431,683. A discussion of the key variances at the department level is provided below. Actuals Variance Amended Pro-Rated Thru Favorable Department Budget Budget Budget 03/31/24 (Unfav) City Administrator 957,138$ 1,063,827$ 797,870$ 553,971$ 243,900$ Finance 154,400 154,400 115,800 120,413 (4,613) Planning & Development 858,801 858,801 644,101 488,726 155,374 Public Safety 270,000 317,578 238,184 200,819 37,365 Non-Departmental 134,018 141,618 106,214 139,461 (33,247) City Properties 181,100 189,200 141,900 120,834 21,066 Total Operations 2,555,457 2,725,424 2,044,068 1,624,224 419,844 Capital Transfers 250,000 1,660,814 1,245,610 198,862 1,046,748 GENERAL FUND TOTALS 2,805,457$ 4,386,238$ 3,289,679$ 1,823,086$ 1,466,593$ CITY OF ROLLING HILLS General Fund Expenditures by Department Budget Vs. Actual Nine Months Ended March 31, 2024 Adopted 143 5 • City Administrator/Manager Department The $243,900 favorable variance was the result of underspending in three areas: (1) Approximately $99,000 is attributable to salary and benefit savings from staff vacancies. During the first half of the fiscal year, there were vacancies in 3 of the 4 positions accounted for in the City Manager’s Department; (2) Consulting fees (account 890) were approximately $47,000 below budget. This account includes project management costs performed by contract. Because most of the work is tied to capital projects accounted for in the Capital Improvement Fund (40), the costs have been charged directly to those projects rather than to this account. As a result, we expect to see savings in this account throughout the fiscal year; and (3) the work performed by a contractor to digitize City records, captured in account 891 have not been billed as of March 31, 2024, resulting in a budgeted variance of almost $31,000. • Planning Department Overall, expenditures are $155,374 below the pro-rated budget of $644,101. A discussion of the largest contributors to the favorable variance is provided below. 872 - Property Development – Legal Expenses ($16,246). This account is for amounts paid to the City’s contracted attorney for any support associated with planning. The need for legal support varies from year to year and month to month. Thus, a variance from budget during the year is not unusual. 875 - Willdan Building and 878 - Building Inspection L.A. County. These accounts are for the cost of building and plan check services provided by contract. Most applicants utilize the County Public Works Department for building services. A smaller number utilize Wil ldan Engineering Group who provides expedited, but more expensive, services. We have seen more applicants utilizing Willdan recently versus the County, which explains the higher costs associated with account 875. In addition, LA County is usually two months in arrears in its bills sent to the City, which to a large extent explains the seemingly low expenditures in account 878. 881 - Stormwater Management. This account is for costs incurred to reduce stormwater runoff and pollutants reaching the ocean. Many costs incurred by the City are charged to the Measure W Fund, for which revenues from the Clean Water Act are accounted . However, there are limits to how much can be charged, and the final allocation of costs cannot be done until the end of the year. As such, the variance at March 31, 2024, of $17,939 may or may not continue through fiscal year end. 884 – Special Project Study & Consulting. Historically, this account has been used to capture costs related to the Housing Element in addition to payments to the City Arborist. With the completion of the Housing Element, the ongoing budget of $20,000 ($15,000 pro -rated) is 144 6 solely for the City Arborist. Through the first nine months of the fiscal year, no costs were incurred. The nature of the contract is “on-call”, meaning, costs are incurred if and only services are needed. • Public Safety 833 – Other Law Enforcement Expenses. On an ongoing basis, this account is used to track costs for school security reimbursement, and the monthly ALPR camera connectivity. However, in March 2024 the City Council amended the budget for a total of approximately $35,000 for the one-time purchase of equipment related to the Auto License Plate Recognition Program and the LIDAR/RADAR Speed Detection Device. As of March 31, 2024, the City has not paid for this equipment, explaining the $28,215 variance. • Non-Departmental The “Non-Departmental” department accounts for costs that do not fit into a traditional department and generally are of a Citywide nature. The table below shows the accounts that are included within this department and the status of expenditures relative to budget at December 31, 2023. There is one account that has an unfavorable variance - Insurance & Bond Expense (895). The unfavorable variance is simply a timing variance due to the fact that premiums are paid in July of each year. Status of Reserves Based on unaudited numbers, General Fund reserves at June 30, 2023 totaled $4,633,046. However, through March 31, 2024, a total of $1,041,310 in amendments to the General Fund budget has been approved by Council that draw upon reserves. The vast majority of the amendments are tied ted to one-time costs. In addition, the adopted fiscal year 2023/24 budget included the use of reserves for capital in the amount of $43,163. As a result, the available balance is currently $3,548,573. Of this total, $2,650,498 is set aside for emergencies, such as natural disasters, pursuant to the City’s adopted reserve policy. This leaves $898,075 available for discretionary one-time costs. Please refer to Attachment 6 for a summary of approved budget amendments and calculation of available reserves. RESTRICTED FUNDS Transit/Transportation Funds The City receives revenues, primarily from the County, that are restricted for specific purposes. These include the allocation of special sales tax measures approved by Los Angeles County voters over the last several decades that are restricted to transit and transportation programs and 145 7 projects. The measures include Proposition A, Proposition C, Measure R, and Measure M. Since the City of Rolling Hills does not own and operate a transit system and, in fact, has no transit service provided within the City limits, nor does the City own and maintain any public roads, the funds received pursuant to the four tax measures are either gifted to other agencies or exchanged for unrestricted monies with other agencies that can utilize the funds in accordance with their intended uses. Revenues received within these transit/transportation funds through March 31, 2024, total $81,602, which are $21,074 below expectations. However, only eight payments for each of the four revenues have been received. Adjusting for this, the true shortfall so far is approximately $11,000. Staff will continue to monitor these revenues through the remainder of the fiscal year. Citizens Option for Public Safety (COPS) Fund The City also maintains a COPs Fund for monies received from the County’s Supplemental Law Enforcement Services Fund, created in 2009 through an increase statewide to vehicle license fees. The revenues can only be used for supplemental law enforcement services. Total revenues through March 31 are $186,254 versus the budget of $165,000. Revenues are normally received in their entirety by mid-year. The higher than expected revenue total is the result of a one-time payment of $17,248 for prior year under-allocations from the State of California. On the expenditure side, allocated costs for supplemental law enforcement services totaled $87,904 through March due to delayed billings from LA County. Measure W Fund The City receives an allocation of the countywide special parcel tax pursuant to Measure W (Safe, Clean Water Act) for parcels located within the Los Angeles County Flood Control District . These revenues are intended for storm water recycling and water quality improvement projects and programs. The City receives a single payment each year for the full annual allocation. In January 2024, the City received approximately $103,765, which is very close to the $105,000 budget. Actual costs will not be known until year end and discussed previously in the conte xt of Stormwater costs charged to the General Fund. 146 8 ENTERPRISE FUND Refuse Fund The Refuse Fund is the City’s only enterprise fund. Enterprise funds are typically used to account for utilities owned and operated by governments, such as water, wastewater, electricity, and refuse, and other operations that are similar to those provided by the private sector, such as airports and golf courses. The Refuse Fund accounts for the contracted waste collection and disposal for all City of Rolling Hills residents. The fees charged to City residents are processed as a “Direct Assessment” through the County Assessor’s Office, which means the annual total is added to the property tax bill sent to property owners by the County and is payable in two installments. Thus, the payments the City receives from the County for refuse services coincide with the payments we receive for regular property taxes. After several years of subsidized rates via the General Fund, rates for refuse services were calculated to fully recover the contracted cost of services, which will total approximately $981,336 for this fiscal year. Through March, half of the costs have been incurred since the City only receives two invoices – one in December and the second in June. Ultimately, costs will line up with the budget. Revenues, budgeted at $1,005,336, are intended to cover the $981,336 to be paid to the refuse contractor plus $24,000 paid by the General Fund for administrative support. Through March, revenues are $634,241. However, based on the two payments received from the County for April and May, revenues should also line up with expectations at fiscal year- end. 147 ATTACHMENT 2 Actuals Variance Adopted Pro-Rata Thru Favorable Budget Budget 03/31/24 (Unfavorable) 401 Property Taxes 1,496,250$ 897,750$ *856,532$ (41,218)$ 405 Sales Taxes 13,905 10,429 9,497 (932) 410 Property Transfer Tax 56,222 42,166 42,333 167 415 Other Taxes 1,000 750 - (750) 420 Motor Vehicle In Lieu 269,267 201,951 138,334 (63,617) 440 Building & Other Permits 600,000 450,000 274,248 (175,752) 441 C&D Permits 5,600 4,200 6,100 1,900 450 Variance, Planning & Zoning 67,000 50,250 19,642 (30,608) 455 Animal Control Fees 150 113 343 231 460 Franchise Fees 13,000 9,750 7,651 (2,100) 480 Fines & Traffic Violations 3,500 2,625 4,300 1,675 482 Cost Recoivery - Publications 7,200 5,400 3,000 (2,400) 600 RHCA Lease Revenue 69,000 51,750 51,743 (7) 650 Public Safety Aug Fund 1,200 900 848 (52) 670 Interest on Investments 110,000 82,500 125,099 42,599 671 PARS Earnings 20,000 15,000 38,730 23,730 675 Miscellaneous Revenue 5,000 3,750 5,556 1,806 699 Transfers In - Refuse Fund 24,000 18,000 18,000 - TOTALS 2,762,294$ 1,847,283$ 1,601,954$ (245,329)$ *Seasonally adjusted budget at 3/31/24 Budget Vs Actual Through March 31, 2024 General Fund Revenues 148 ATTACHMENT 3 Actuals Variance Amended Pro-Rated Thru Favorable Department Budget Budget Budget 03/31/24 (Unfav) City Administrator 957,138$ 1,063,827$ 797,870$ 553,971$ 243,900$ Finance 154,400 154,400 115,800 120,413 (4,613) Planning & Development 858,801 858,801 644,101 488,726 155,374 Public Safety 270,000 317,578 238,184 200,819 37,365 Non-Departmental 134,018 141,618 106,214 139,461 (33,247) City Properties 181,100 189,200 141,900 120,834 21,066 Total Operations 2,555,457 2,725,424 2,044,068 1,624,224 419,844 Capital Transfers 250,000 1,660,814 1,245,610 198,862 1,046,748 GENERAL FUND TOTALS 2,805,457$ 4,386,238$ 3,289,679$ 1,823,086$ 1,466,593$ CITY OF ROLLING HILLS General Fund Expenditures by Department Budget Vs. Actual Nine Months Ended March 31, 2024 Adopted 1 Page: 1 149 ATTACHMENT 4 Actuals Variance Amended Pro-Rated Thru Favorable Budget Budget 3/31/24 (Unfav) 01 - CITY ADMINISTRATOR 702 Salaries -Full Time 505,294$ 378,971$ 269,254$ 109,717$ 705 Temporary Salaries 7,000 5,250 22,476 (17,226) 710 Retirement CalPERS-Employer 46,935 35,201 9,316 25,885 712 CalPERS Unfunded Liability - - 62,424 (62,424) 715 Workers Compensation Insurance 9,100 6,825 6,825 0 716 Group Insurance 72,907 54,680 28,439 26,241 717 Retiree Medical 37,500 28,125 21,471 6,654 718 Employer Payroll Taxes 39,401 29,551 19,294 10,257 719 Deferred Compensation 4,718 3,539 317 3,221 720 Auto Allowance 4,800 3,600 1,389 2,211 721 Phone Allowance 2,520 1,890 929 961 740 Office Supplies 13,000 9,750 6,874 2,876 745 Equipment Leasing Costs 11,000 8,250 3,203 5,047 750 Dues & Subscriptions 14,240 10,680 6,595 4,085 755 Conference Expense 1,873 1,405 50 1,355 757 Meetings Expense 2,000 1,500 1,130 370 759 Training & Education 5,000 3,750 - 3,750 761 Auto Mileage 500 375 236 139 765 Postage 21,000 15,750 5,596 10,154 775 City Council Expense 5,000 3,750 5,631 (1,881) 776 Miscellaneous Expenses 4,750 3,563 133 3,430 780 Comm./Newsletters & Outreach 5,000 3,750 - 3,750 785 Codification 3,000 2,250 1,518 732 790 Advertising 2,400 1,800 1,600 200 795 Other Gen Admin Expense 2,500 1,875 1,978 (103) 801 City Attorney 90,000 67,500 33,535 33,965 802 Legal Expense - Other 3,000 2,250 13,761 (11,511) 820 Website 6,000 4,500 58 4,442 890 Consulting Fees 101,895 76,421 29,640 46,781 891 Records Management 41,494 31,121 300 30,821 Total City Administrator 1,063,827 797,870 553,971 243,900 Department/Object Account CITY OF ROLLING HILLS GENERAL FUND EXPENDITURES Nine Months Ended March 31, 2024 1 Page: 1 150 ATTACHMENT 4 Actuals Variance Amended Pro-Rated Thru Favorable Budget Budget 3/31/24 (Unfav)Department/Object Account CITY OF ROLLING HILLS GENERAL FUND EXPENDITURES Nine Months Ended March 31, 2024 05 - FINANCE 740 Office Supplies 750 Dues & Subscriptions 3,000 2,250 2,701 (451) 810 Annual Audit 31,400 23,550 20,725 2,825 890 Consulting Fees 120,000 90,000 96,988 (6,988) Total Finance 154,400 115,800 120,413 (4,613) 15- PLANNING & DEVELOPMENT 702 Salaries 212,515 159,386 153,457 5,929 703 Salaries - Part-Time 27,610 20,708 4,856 15,852 710 Retirement CalPERS-Employer 16,750 12,563 10,300 2,262 715 Workers Comp. Insurance 3,900 2,925 2,925 - 716 Group Insurance 42,669 32,002 24,725 7,277 718 Employer Payroll Taxes 18,527 13,895 11,927 1,969 719 Deferred Comp 865 649 317 331 720 Auto Allowance 1,200 900 900 - 721 Phone Allowance 600 450 450 - 761 Auto Mileage 300 225 - 225 750 Dues & Subscription 5,500 4,125 926 3,199 755 Conference Expense 385 289 1,782 (1,493) 759 Training & Education 1,000 750 - 750 776 Miscellaneous Expenses - - 1,166 (1,166) 790 Publication/Advertising/Noticing 15,000 11,250 5,568 5,683 802 Legal Expenses-Other 10,000 7,500 10,474 (2,974) 872 Property Development-Legal Exp 50,000 37,500 21,254 16,246 875 Willdan Building 30,000 22,500 27,955 (5,455) 878 Build Inspect. LA County 250,000 187,500 118,796 68,704 881 Storm Water Management 84,100 63,075 45,137 17,939 884 Special Project Study & Consult.20,000 15,000 15,000 886 Code Enforcement 62,880 47,160 42,519 4,642 890 Consulting Fees (Onward)- - - - 928 Traffic Engineering 5,000 3,750 3,294 456 Total Planning & Development 858,801 644,101 488,726 155,374 2 Page: 2 151 ATTACHMENT 4 Actuals Variance Amended Pro-Rated Thru Favorable Budget Budget 3/31/24 (Unfav)Department/Object Account CITY OF ROLLING HILLS GENERAL FUND EXPENDITURES Nine Months Ended March 31, 2024 25 - PUBLIC SAFETY 830 Law Enforcement 255,000 191,250 188,899 2,351 833 Other Law Enforcement Exp 39,078 29,309 1,093 28,215 837 Wild Life Mgmt & Pest Control 18,500 13,875 6,670 7,205 838 Animal Control Expense 5,000 3,750 4,156 (406) Total Public Safety 317,578 238,184 200,819 37,365 65 - NON-DEPARTMENTAL 895 Insurance & Bond Expense 37,018 27,764 68,028 (40,265) 901 South Bay Comm. Organization 17,600 13,200 5,321 7,879 915 Community Recognition 10,000 7,500 7,599 (99) 917 Emergency Preparedness 77,000 57,750 58,513 (763) Total Non-Departmental 141,618 106,214 139,461 (33,247) 75 - CITY PROPERTIES 892 IT Services 61,200 45,900 46,405 (505) 893 Granicus Services 8,300 6,225 8,143 (1,918) 894 Computer Hardware Fund 5,000 3,750 - 3,750 925 Utilities 60,000 45,000 42,261 2,739 930 Repairs & Maintenance 16,000 12,000 10,843 1,157 931 Area Maintenance - - 1,344 (1,344) 932 Area Landscaping 23,700 17,775 11,839 5,936 946 Buildings & Equipment 15,000 11,250 - 11,250 Total City Properties 189,200 141,900 120,834 21,066 TOTALS BEFORE TRANSFERS 2,725,424 2,044,068 1,624,224 419,844 OPERATING TRANSFERS OUT 999 Capital Grants Fund (16)628,381 471,285 - 471,285 999 Capital Impr Fund (Fund 40)1,032,433 774,325 198,862 575,463 Total Transfers Out 1,660,814 1,245,610 198,862 1,046,748 GENERAL FUND TOTAL 4,386,238$ 3,289,679$ 1,823,086$ 1,466,593$ 3 Page: 3 152 ATTACHMENT 5 Amended Pro-Rated Actuals Variance Budget Budget 3/31/24 Fav (Unfav) 10 - COPS FUND Revenues 570 COPS Allocation 165,000$ 123,750$ 186,254$ 62,504$ Expenditures 840 COPS Program Expenditures 165,000 123,750$ 87,904 (35,846) Revenues Over (Under) Expenditures -$ -$ 98,350$ 98,350$ 16 - CAPITAL GRANT FUND Revenues 588 Crest Road FEMA Grant - 4434-526-112R 1,135,337$ 851,503$ -$ (851,503)$ 589 Safety Element Disaster Grants - DR 4344 PL0521 - - - - 590 Veg. Mgmnt FEMA Grant - HMGP-4382-175-13R 172,215 129,161 - (129,161) 591 Eastfield U/Grounding FEMA DR-4382-177-7R-CA 1,951,059 1,463,294 - (1,463,294) 699 Transfers In - General Fund - Safety Element - - - - 699 Transfers In - Utility Fund - Crest Rd 4434-526-112R 381,819 286,364 - (286,364) 699 Transfers In - Gen Fund - Crest Rd 4344-526-112R - - - - 699 Transfers In - Gen Fund - Eastfiled DR4382-177-7R - - - - 699 Transfers In - Utility Fund - Eastfiled DR4382-177-7R 657,294 492,971 - (492,971) 699 Transfers In - General Fund - HMGP-4382-175-13R 51,311 38,483 - (38,483) Total Revenues 4,349,035 3,261,776 - (3,261,776) - Expenditures - 957 Crest Road East Project - 4434-526-112R 1,301,109 975,832 45,898 929,934 958 Safety Element DR4344-PL0521 219,189 164,392 - 164,392 959 Veg. Mgmt Mitig. Proj. - HMGP-4382-175-13R - - 1,595 (1,595) 960 Eastfield Drive Utility U.G. - 4382-177-7R 2,581,945 1,936,459 - 1,936,459 Total Expenditures 4,102,243 3,076,682 47,493 3,029,189 Revenues Over (Under) Expenditures 246,792$ 185,094$ (47,493)$ (232,587)$ 22 - TDA FUND Revenues 509 TDA Grant Revenues -$ -$ 5,000$ 5,000$ Expenditures XXX TDA Expenditures - -$ - - -$ -$ 5,000$ 5,000$ 25 - PROPOSITION A FUND Revenues 500 Grant Revenues 52,000$ 39,000$ 34,129$ (4,871)$ 670 Interest Earned 300 225 - 33,904 Total Revenues 52,300 39,225 34,129 29,032 Expenditures 620 Prop A Exchange - - - - Revenues Over (Under) Expenditures 52,300$ 39,225$ 34,129$ 29,032$ CITY OF ROLLING HILLS Status of Revenues and Expenditures Restricted, Capital, and Refuse Funds Nine Months Ended March 31, 2024 1 153 ATTACHMENT 5 Amended Pro-Rated Actuals Variance Budget Budget 3/31/24 Fav (Unfav) 26 - PROPOSITION C Revenues 501 Grant Revenue-Prop C 43,000$ 32,250$ 28,318$ (3,932)$ 670 Interest Earned 250 188 - 28,130 Total Revenues 43,250 32,438 28,318 24,198 Expenditures 906 Prop C Gifted - - - - Revenues Over (Under) Expenditures 43,250$ 32,438$ 28,318$ 24,198$ 27- MEASURE R TRANSIT Revenues 502 Measure R Grant Revenues 33,000$ 24,750$ 18,904$ (5,846)$ 670 Interest Earned 250 188 - 18,717 Total Revenues 33,250 24,938 18,904 12,871 Expenditures 907 Measure R Gifted - - - - Revenues Over (Under) Expenditures 33,250$ 24,938$ 18,904$ 12,871$ 29 - MEASURE M Revenues 507 Measure M Local Return 37,000$ 27,750$ 21,325$ (6,425)$ 670 Interest Earned 250 188 - 21,138 Total Revenues 37,250 27,938 21,325 14,713 Expenditures XXX Measure M Gifted - - - - Revenues Over (Under) Expenditures 37,250$ 27,938$ 21,325$ 14,713$ 30 - MEASURE W Revenues 508 Grant Revenues 105,000$ 78,750$ 103,765$ 25,015$ 670 Interest Earned 500 375 - 375 Total Revenues 105,500 79,125 103,765 25,390 Expenditures 913 Storm Water Management - 30%31,650 23,738 - 23,738 914 Storm Water Management - 70%73,850 55,388 44,092 11,295 105,500 79,125 44,092 35,033 Revenues Over (Under) Expenditures -$ -$ 59,673$ (9,643)$ 40 - CAPITAL PROJECTS FUND Revenues Transfers from General Fund 1,031,442$ 773,582$ 198,862$ (574,720)$ 1,031,442 773,582 198,862 (574,720) Expenditures 887 Sewer Feasibility Project 9,010 6,758 8,978 2,220 890 Consulting Fees 21,100 15,825 - (15,825) 2 154 ATTACHMENT 5 Amended Pro-Rated Actuals Variance Budget Budget 3/31/24 Fav (Unfav) 899 Outdoor Siren System - Design & Constr 293,220 219,915 131,449 (88,466) 934 Equestrian Fence Replacement 26,725 20,043 19,295 935 Tennis Court Improvenments 307,000 230,250 6,848 (223,403) 947 Non-Building Improvements - - - - 948 City Hall Improvements 19,456 14,592 7,590 (7,002) 949 Battery/Solar Back-Up 250,000 187,500 - (187,500) 961 Middleridge Road Emergency Storm Drain Repairs 71,173 53,380 - (53,380) 962 Phase 1 Bifurcated 8" Sewer Main Engineering 22,598 16,949 908 (16,041) 963 Generator & Waterproof Removal and Electrical Svcs 6,994 5,246 - (5,246) 964 HVAC Replacement Project 30,892 23,169 23,796 627 Total Expenditures 1,058,168 793,626 198,862 (594,015) Revenues Over (Under) Expenditures (26,726)$ (20,044)$ (0)$ 19,296$ 50 - REFUSE FUND Revenues 665 Service Charges 1,005,336$ 754,002$ 634,241$ (119,761)$ 699 Transfers In - General Fund - - - - Total Revenues 1,005,336 754,002 634,241 (119,761) Expenditures 815 Refuse Service Contract 981,336 736,002 490,498 (245,504) 790 Advertising - - - 999 Transfers Out 24,000 18,000 18,000 - Total Expenditures 1,005,336 754,002 508,498 (245,504) Revenues Over (Under) Expenditures -$ -$ 125,743$ 125,743$ 3 155 ATTACHMENT 6 Res.Account No.Date Description Amount Type Number Budgeted Surplus (Deficit)(43,163.00)$ FY 2023/24 Amendments Alan Palermo - Project Management 1343 07/10/2023 Transfer from GF to CIP Fund 21,100.00 One-Time 01-00-999 Tennis Court Improvements 1344 07/10/2023 Transfer from GF to CIP Fund 307,000.00 One-Time 01-00-999 Grant Writing Services 1345 07/10/2023 Sub-Appl for Fire Fuel Abatement 30,470.00 One-Time 01-01-890 AC Pros City Hall HVAC Repl Project 1347 08/28/2023 Transfer from GF to CIP Fund 30,892.20 One-Time 01-00-999 Community Organizations 1352 11/13/2023 Contr to Local Volunteer Orgs 7,600.00 Ongoing 01-65-901 Crest Road East Power Line 1355 02/24/2024 Rule 20C Undergrounding 577,069.90 One-Time 01-00-999 ADA Improvements Project 1356 02/12/2024 Additional Design & Engineering 11,500.00 One-Time 01-00-999 Area Landscaping 1357 02/12/2024 Additional Lanscaping - Bennet 8,100.00 Ongoing 01-75-932 Wildlife Management 1358 02/26/2024 Additional Coyote Mgmt 12,500.00 Ongoing 01-25-837 Other Law Enforcement Services 1359 03/11/2024 Auto Lic Plate Recog Program 34,420.00 One-Time 01-25-833 Other Law Enforcement Services 1360 03/11/2024 LIDAR/RADAR Speed Det Device 658.21 One-Time 01-25-833 Total Amendments 1,041,310.31 Total Budgeted Use of Reserves (1,084,473.31)$ Fund Balance - July 1, 2023 4,633,046.00 Budgeted Use of Reserves (1,084,473.31) Reserve for Contingencies (2,650,498.00) Reserves Above Policy 898,074.69$ CITY OF ROLLING HILLS Summary of Budget Adjustments Nine Months Ended March 31, 2024 156 Agenda Item No.: 13.B Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:KARINA BAÑALES, CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: ADOPT RESOLUTION NO. 1369 APPROVING A FIVE-YEAR MUNICIPAL LAW ENFORCEMENT SERVICES AGREEMENT (MLESA) WITH THE COUNTY OF LOS ANGELES FOR PUBLIC SERVICES PROVIDED BY THE LOS ANGELES COUNTY SHERIFF'S DEPARTMENT AND AUTHORIZING THE CITY MANAGER TO PROCURE SERVICES OF THE LOS ANGELES COUNTY SHERIFF’S DEPARTMENT ANNUALLY UP TO AN AMOUNT AUTHORIZED IN THE CITY’S OPERATING AND CAPITAL BUDGET FOR THE PERIOD OF JULY 1, 2024 THROUGH JUNE 30, 2029; AND AUTHORIZE THE MAYOR TO EXECUTE THE MLESA DATE:June 10, 2024 BACKGROUND: The current Municipal Law Enforcement Services Agreement (MLESA) between the City of Rolling Hills and the County of Los Angeles is set to expire on June 30, 2024 (Attachment C). In preparation, a new five-year agreement has been drafted for the City Council's review and approval, with the next term starting on July 1, 2024, and concluding on June 30, 2029 (Attachment B). It is important to note that the 2024-2029 MLESA exhibits are not included as they are pending the individual contract agencies’ agreements going to the Board of Supervisors for approval later this month. Staff will return to the City Council with exhibits at the first meeting in July. Over the past year, a subcommittee from the California Contract Cities Association (CCCA), consisting of City Managers, collaborated with the County and the Los Angeles Sheriff's Department (LASD) to negotiate and revise the MLESA. The proposed agreement includes revisions that were mutually agreed upon by the County and the CCCA subcommittee (Attachment A). In addition to the MLESAs approved over the past few decades, the contract cities have entered into three significant agreements concerning liability and indemnification for County services: 157 1977 Assumption of Liability: The County established a fund to cover liability costs associated with contract services, assuming liability and defense for contract cities (Attachment F) (replaced by the 1991 Joint Indemnity Agreement for law enforcement services). 1991 Joint Indemnity Agreement: The County and cities established the structure of the Liability Trust Fund, transferring responsibility for liability and payment for settlements and claims to this fund, which is fully funded by contract cities (Attachment G). 2009 Special Indemnity Agreement: The County and cities agreed to split the liability and funding responsibility equally for certain cases involving deputies or other peace officers incurring felony convictions or any criminal convictions of certain sexual crimes (Attachment H). While the County accepted some of the recommended subcommittee changes, there were a number of changes not accepted. Additionally, no agreement on changes to liability and indemnity language was reached prior to the renewal deadline. As was added in Section 5.4 to the MLESA (Attachment B), the subcommittee and County will continue discussions regarding liability and indemnity language revisions to share the financial exposure with the County instead of the current burden falling completely on the Liability Trust Fund, and by extension, the contract cities. This evening, staff seeks City Council consideration for adoption of the attached resolution authorizing the City Manager to sign the five-year MLESA agreement for 2024-2029. DISCUSSION: Contracting for law enforcement services in Los Angeles County dates back to 1954 when the City of Lakewood first contracted with the County. Currently, 42 cities contract with the County through the Los Angeles Sheriff's Department for primary and supplemental law enforcement services, representing almost half of the 88 Los Angeles cities. Authority to Contract for Law Enforcement Services Under California Government Code Section 51301 et seq, the City has the authority to contract with the County for public safety services. The term of any such contract shall not exceed five years but may be renewed for subsequent five-year periods, provided a decision to continue is made at least a year before the expiration of any current term. The upcoming MLESA is a five-year agreement requiring approval by June 30, 2024, to continue services. County Can Recover Costs for Contract Services According to California Government Code Section 51350, the County must charge the contracting city for all costs incurred due to the agreement. This excludes any indirect overhead charges or costs attributed to services provided countywide or are general county government operational overheads. Thus, the County’s Auditor/Controller established a complex formula to set the price of each contract service unit, and the Liability Trust Fund Claims Board determined the recommended funding level for the liability component based on an actuarial study. Together, these two components form the total cost per service unit assessed to the contract cities for each service unit procured. City Orders Law Enforcement Resources from the County Annually, the City issues a Service Level Authorization, commonly referred to as the “575 form,” which specifies the resources provided to the City. For reference, staff is presenting the 158 Fiscal Year 23/24 575 form (Attachment D). For 2024-25, the City will procure the same number of resources as indicated in the FY23/24 575 form, with the estimated costs increasing by 3.94% and a 12% charge to the Liability Trust Fund covering settlements and claims arising from MLESA operations. Finance has incorporated the increase into the Fiscal Year 24/25 budget. Changes to the 2024-2029 MLESA The included MLESA includes several changes based on the contract cities negotiations that benefit the city. The changes include: Performance will be by Service Unit Rather than Overall The Agreement performance standard changes from one measure overall to several measures at the service unit level. As the MLESA performance is based on service minutes, the number of deputies and civilians procured by a city are translated into available minutes. This allows the County to mix and match minutes to achieve their 98-102% target but can lead to unintended consequences to underperform in areas like traffic, special assignment, or motor units. Benefit: The change would set the 98-102% performance target for each specific unit – patrol, motor, special assignment deputies increasing accountability to cities receiving the level of service expected when procuring specific resources. As an example, overages in patrol minutes cannot be made up by reducing service levels of a motor unit or special assignment deputy and vice versa. Retaining Vehicle of Deleted Service Unit When a city adds a new resource that requires a vehicle (i.e. new deputy), the city incurs a significant first-year expense for the additional vehicle required for this new deputy. The maintenance and replacement costs of the vehicle are already integrated into the annual charge to the city if the city keeps the new deputy. While the LASD has a practice on this, the language of the MLESA was not explicit to protect a city from losing a deputy temporarily and then paying another new vehicle cost when the city restored the deputy. The MLESA adds language that a city can regain access to a vehicle procured with a new deputy service unit when the unit is deleted and restored within 24 months. Benefit: This codifies the language and extends it from 12 to 24 months giving more flexibility for a city to avoid incurring a new vehicle cost. Transfer of City Property to County The Agreement requires separate written agreements managed at the LASD contract city stations to govern items purchased by the City and temporarily transferred to the County. Additionally, the County must maintain a detailed and regularly updated inventory of all non- vehicle City equipment in its possession, including descriptions, serial numbers (if applicable), condition upon receipt, and location. Benefit: This language increases transparency and accountability in the handling of the City’s assets where the MLESA was previously silent. 159 Equipment Replacement after Extended Maintenance and Repair The Agreement requires that the County will make best efforts to provide a temporary replacement if the original equipment takes more than 60 days to be returned. Benefit: The language strengthens the required effort the County must undertake to provide a replacement. A best effort would require the LASD to be more diligent in providing a replacement. Continue Negotiations on Indemnity Agreements The Agreement includes Section 5.4 which acknowledges indirectly the continued negotiations between the County and contract cities related to concerns that cities bear the full cost of liability for contract activities when the County should share in such liability. A Letter of Understanding (Attachment E) between the County and the California Contract Cities Association outlines how both parties will work towards addressing concerns in several areas raised by contract cities. Benefit: The language does not guarantee a change, but it recognizes a mutual interest in ensuring the long-term viability of the Liability Trust Fund and controlling the increasing burden placed on cities for activities a city does not control. The County controls aspects of law enforcement operations (i.e., training, supervision, hiring, discipline, etc.) and to some extent should incur some of the liability, such as when there is gross negligence not controllable by a city. Further negotiations are a positive step. Liability Trust Fund Claims Board As established in the 1991 Joint Indemnity Agreement, the County formed the Los Angeles Contract Cities Liability Trust Fund Claims Board (Board) to review and approve settlement of claims and lawsuits for money damages which are paid from the County’s Contract Cities Liability Trust Fund. The Board consists of eleven members nominated by the California Contract Cities Association and appointed by the Los Angeles Board of Supervisors. The members include city council members, city managers, and representatives from the California Contract Cities Association. The Liability Trust Fund is comprised of two funds – the Sheriff's Department Fund and the All Other Departments fund. This is a County trust account funded by contract cities to reimburse the County for all costs related contract city operations leading to litigation and settlements as a part of MLESA operations. The Liability Trust Fund is self-insured for liabilities up to $10 million and carries insurance up to $40,000,000. The Liability Trust Fund has experienced significant payouts due to settlements and litigation work. The settlements are such a large exposure that insurers have been increasing the self- insurance retention (amount paid from the fund before tapping insurance) of $2 million in 2011-12 to $10 million in 2023-24, and the rate paid by contract cities has risen from 4% to 12%, respectively, and will be 12.5% in 2024-25. Given that all activities of the contract cities in the MLESA are the responsibility of the County and contract cities have no authority to govern over actions to reduce liability, the subcommittee feels strongly of the need to revisit the liability and indemnity relationship between the contract cities and the County to ensure balance in who pays for settlements and 160 litigations. The purpose is to ensure the long-term viability of the Liability Trust Fund and the contract model. Further, with the County being exposed to more financial risk associated with operations that only they can control, there will be a greater incentive to ensure more risk reduction approaches and opportunities are leveraged to reduce the overall losses incurred by both the County and the contract cities. While the subcommittee proposed changes to liability and indemnity language, the County desired additional time to discuss and consider changes. Consequently, the subcommittee will continue discussions on amending this language even after the MLESA is approved by the June 30, 2024 deadline, with the existing liability and indemnity language in place since the last MLESA. CONCLUSION City staff recommend approval of this revised MLESA. The changes to the MLESA strengthen the accountability for the City. Discussions continue related to revising liability and indemnity language. FISCAL IMPACT: Changes to the MLESA do not alter the cost structure of the previous agreement. Rates for law enforcement services are provided annually by the County of Los Angeles Auditor/Controller and are determined based on the fully burdened cost of deploying service units, including variables such as salary, benefits, equipment (vehicles, radios, maintenance, etc.), management overhead, vacation and sick relief, detective services, dispatch and front desk personnel, station jailer services, and civilian positions. Staff will return with FY 24/25 575 form at the first meeting in July. RECOMMENDATION: Approve as presented. ATTACHMENTS: Attachment A - ResolutionNo1369_MLESA_FY2024-29_F.pdf Attachment B - CA_AGR_240610_MLESA_2025-29_F.pdf Attachment C - CA_AGR_190717_MLESA_2019-24_F_E.pdf Attachment D - CA_AGR_230608_LACoSheriff_575Form_FY23-24_F_E.pdf Attachment E - GV_GVO_240610_CCA_LiabilityTrustFund_LOU_FinalDraft.pdf Attachment F - CA_AGR_1977_LACo_LASD_AssumptionOfLiability.pdf Attachment G - CA_AGR_1991_LACo_LASD_JointIndemnity.pdf Attachment H - CA_AGR_2009_LACo_LASD_SpecialIndemnity.pdf 161 Resolution No. 1369 1 RESOLUTION NO. 1369 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA, APPROVING A FIVE-YEAR MUNICIPAL LAW ENFORCEMENT SERVICES AGREEMENT WITH THE COUNTY OF LOS ANGELES FOR PUBLIC SERVICES PROVIDED BY THE LOS ANGELES COUNTY SHERIFF’S DEPARTMENT AND AUTHORIZING THE CITY MANAGER TO PROCURE SERVICES OF THE LOS ANGELES COUNTY SHERIFF’S DEPARTMENT ANNUALLY UP TO AN AMOUNT AUTHORIZED IN THE CITY’S OPERATING AND CAPITAL BUDGET FOR THE PERIOD OF JULY 1, 2024 THROUGH JUNE 30, 2029 WHEREAS, The City of Rolling Hills, California (City) and the County of Los Angeles (County) have previously entered into a Municipal Law Enforcement Service Agreement (MLESA) whereby the County through its Sheriff’s Department (LASD) provides general and additional law enforcement services within the jurisdiction of the City; and WHEREAS, the current MLESA expires on June 30, 2024, and the City desires to continue receiving general and additional law enforcement services from the County through the LASD for an additional five years; and WHEREAS, the City intends to enter into an MLESA for a period starting July 1, 2024 through June 30, 2029 and to procure and allocate funds for such general law and additional services up to such amount appropriated in the City’s Annual Operating and Capital Budgets; and WHEREAS, the City relies upon the City Manager or designee in partnership with the Station Captain of the LASD to implement the MLESA in such manner to best protect the public safety interests of the City of Rolling Hills and to make such operational changes as necessary to implement the MLESA and fulfill the public safety needs of the City. NOW, THEREFORE, BE IT FURTHER RESOLVED the City Council of the City of Rolling Hills does hereby resolve that: Section 1. The City Council of the City of Rolling Hills hereby approves the Municipal Law Enforcement Services Agreement between the City and the County for 162 Resolution No. 1369 2 law enforcement and additional services for a five-year period beginning July 1, 2024 and expiring on June 30, 2029. Section 2. The Mayor is authorized to execute the Municipal Law Enforcement Services Agreement on behalf of the City. Section 3. The City Manager or his designee is authorized to procure annual services up to the appropriated amount provided in the City’s Annual Operating and Capital Budgets and to make any such operational changes to further the public safety interest of the City when necessary and shall endeavor to bring any such item to the City Council when feasible. Permanently deleting or adding positions will be brought back to the City Council for authorization and approval. Section 4. The City requests that the Los Angeles County Board of Supervisors, or its designated agent or agency, approve and authorize the performance of services requested in this resolution, subject to the terms and conditions set forth in the MLESA and any other relevant agreement(s). Section 5. The City Clerk shall attest and certify the adoption of this resolution. PASSED, APPROVED, AND ADOPTED this 10th day of June, 2024 ______________________________ LEAH MIRSCH MAYOR ATTEST: ___________________________ CHRISTIAN HORVATH CITY CLERK 163 Resolution No. 1369 3 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) §§ CITY OF ROLLING HILLS ) The foregoing Resolution No. 1369 entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA, APPROVING A FIVE-YEAR MUNICIPAL LAW ENFORCEMENT SERVICES AGREEMENT WITH THE COUNTY OF LOS ANGELES FOR PUBLIC SERVICES PROVIDED BY THE LOS ANGELES COUNTY SHERIFF’S DEPARTMENT AND AUTHORIZING THE CITY MANAGER TO PROCURE SERVICES OF THE LOS ANGELES COUNTY SHERIFF’S DEPARTMENT ANNUALLY UP TO AN AMOUNT AUTHORIZED IN THE CITY’S OPERATING AND CAPITAL BUDGET FOR THE PERIOD OF JULY 1, 2024 THROUGH JUNE 30, 2029 was approved and adopted at a regular meeting of the City Council on the 10th day of June 2024, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________ CHRISTIAN HORVATH CITY CLERK 164 MUNICIPAL LAW ENFORCEMENT SERVICES AGREEMENT BY AND BETWEEN COUNTY OF LOS ANGELES AND CITY OF ROLLING HILLS TABLE OF CONTENTS SECTION TITLE PAGE RECITALS............................................................................................................. 1 1.0 SCOPE OF SERVICES…………............................................................ 1 2.0 ADMINISTRATION OF PERSONNEL................................................. 2 3.0 DEPLOYMENT OF PERSONNEL......................................................... 3 4.0 PERFORMANCE OF AGREEMENT.................................................... 6 5.0 INDEMNIFICATION............................................................................... 7 6.0 TERM OF AGREEMENT........................................................................ 8 7.0 RIGHT OF TERMINATION................................................................... 9 8.0 BILLING RATES….................................................................................. 9 9.0 PAYMENT PROCEDURES.................................................................... 10 10.0 NOTICES……………………................................................................... 11 11.0 AMENDMENTS…………….................................................................... 11 12.0 AUTHORIZATION WARRANTY......................................................... 12 13.0 ENTIRE AGREEMENT.......................................................................... 12 SIGNATURES....................................................................................................... 13 ATTACHMENT A: Los Angeles County Sheriff’s Department Service Level Authorization (SH -AD 575) Form ATTACHMENT B: Contract City Law Enforcement Services and Equipment Master Rate Sheet ATTACHMENT C: Public Safety Equipment Use Requirements 165 1 MUNICIPAL LAW ENFORCEMENT SERVICES AGREEMENT BY AND BETWEEN COUNTY OF LOS ANGELES AND CITY OF ROLLING HILLS This Municipal Law Enforcement Services Agreement ("Agreement") is made and entered into this 10th day of June, 2024 by and between the County of Los Angeles ("County") and the City of Rolling Hills ("City"). RECITALS A. Whereas, the City is desirous of contracting with the County for the performance of municipal law enforcement services by the Los Angeles County Sheriff’s Department ("Sheriff's Department"); and B. Whereas, the County is agreeable to rendering such municipal law enforcement services on the terms and conditions set forth in this Agreement; and C. Whereas, this Agreement is authorized by Sections 56½ and 56¾ of the County Charter and California Government Code Section 51301. NOW THEREFORE, in consideration of the mutual covenants contained herein, and for good and valuable consideration, the parties mutually agree as follows: 1.0 SCOPE OF SERVICES 1.1 The County, by and through the Sheriff's Department, agrees to provide general law enforcement services within the corporate limits of the City to the extent and in the manner hereinafter set forth in this Agreement. 1.2 Except as otherwise specifically set forth in this Agreement, such services shall only encompass duties and functions of the type coming within the jurisdiction of and customarily rendered by the Sheriff's Department under the County Charter, State of California statutes, and the City municipal codes. 1.3 General law enforcement services performed hereunder may include, if requested by the City, supplemental security support, supplemental sworn officer support, and supplemental professional civilian support staff. 166 2 2.0 ADMINISTRATION OF PERSONNEL 2.1 During the term of this Agreement, the Sheriff or his designee shall serve as the Chief of Police of the City and shall perform the functions of the Chief of Police at the direction of the City. 2.2 The rendition of the services performed by the Sheriff's Department, the standards of performance, the discipline of officers, and other matters incident to the performance of such services and the control of personnel so employed shall remain with the County. The City understands and agrees that, at the Sheriff’s Department’s sole discretion, the Sheriff’s Department may redeploy personnel for mutual aid purposes pursuant to the California Emergency Services Act, codified at California Government Code Sections 8550-8668. Absent exigent circumstances, any sustained deployment of more than fifty percent (50%) of the City’s contracted items, with the calculation determined by service unit type, requires consultation with the City manager or his/her designee. For the purpose of this section, exigent circumstances are defined as such cases where the immediacy of deployment is of such nature where prior consultation is materially detrimental to public safety and the length of such deployment does not exceed 24 hours. 2.3 In the event of a dispute between the parties to this Agreement as to the extent of the duties and functions to be rendered hereunder, or the minimum level or manner of performance of such service, the City shall be consulted and a mutual determination thereof shall be made by both the Sheriff's Department and the City. The City shall first consult with the Station Captain, Division Commander, and Division Chief, in an effort to reach a mutual determination. If a mutual determination cannot be realized at a subordinate level, then the matter will be elevated to a Sheriff’s Department Assistant Sheriff or the Sheriff. 2.4 With regard to Paragraphs 2.2 and 2.3 above, the Sheriff's Department, in an unresolved dispute, shall have final and conclusive determination as between the parties hereto. 2.5 All City employees who work in conjunction with the Sheriff’s Department pursuant to this Agreement shall remain employees of the City and shall not have 167 3 any claim or right to employment, civil service protection, salary, or benefits or claims of any kind from the County based on this Agreement. No City employees as such shall become employees of the County unless by specific additional agreement in the form of a merger agreement which must be concurrently adopted by the City and the County. The Sheriff’s Department will provide approved City employees with the required training necessary to access authorized County programs (i.e. CAD, MDC, etc.), so such City employees can perform the functions of the ir positions. 2.6 While performing law enforcement services and functions under this Agreement, every Sheriff’s Department employee shall be authorized to enforce all City laws and regulations, including all City codes and ordinances. 2.7 The City shall not be called upon to assume any liability for the direct payment of any Sheriff's Department salaries, wages, or other compensation to any County personnel performing services hereunder for the City. Except as herein otherwise specified, the City shall not be liable for compensation or indemnity to any County employee or agent of the County for injury or sickness arising out of the performance of services under this Agreement. 2.8 As part of its compliance with all applicable laws and regulations relating to employee hiring, the County agrees that the County Civil Service Rules to which it is subject and which prohibit discrimination on the basis of non-merit factors, shall for purposes of this Agreement be read and understood to prohibit discrimination on the basis of sexual orientation. 3.0 DEPLOYMENT OF PERSONNEL 3.1 Services performed hereunder and specifically requested by the City shall be developed in conjunction with the Sheriff's Department and indicated on Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization (SH-AD 575) Form, of this Agreement . 3.2 The City, or its designated representative, shall meet with its respective Sheriff's Department Station Captain when request ing law enforcement services to be performed in the City, and provide direction to the Sheriff's Department Station Captain regarding the method of deployment for such services. The City and the 168 4 Sheriff’s Department shall also determine a minimum daily standard of staffing needs for services rendered to ensure an adequate personnel presence during station operation and patrol. The City and the Station Captain shall meet to discuss the minimum daily standard which is documented in Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization (SH-AD 575) Form, of this Agreement. The Station Captain shall endeavor to meet this standard without increased cost to the City. The Sheriff's Department shall ensure that all services are delivered in a manner consistent with the priorities, annual performance objectives, and goals established by the City. 3.3 The Sheriff's Department shall make every attempt to avoid deployment deficiencies (i.e., “busting” of cars) by following the daily minimum standard of staffing, as stipulated in Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization (SH-AD 575) Form, of this Agreement. Should deployment deficiencies occur, the Sheriff’s Department should make every effort to reallocate those resources to the shift where the deficiencies occurred. Should the Sheriff's Department determine that a temporary increase, decrease, and/or realignment in the deployment methodologies is necessary, the Sheriff's Department shall promptly notify the City of this change in advance. In the event that prior notice is not possible, the City shall be notified of the change within two (2) City business days. If monthly service compliance falls below ninety-eight percent (98%) for each service unit type, then the Sheriff's Department Station Captain shall meet with the City to discuss compliance and identify a plan for resolution. If the quarterly and/or year-to-date (September 30th, December 31st, March 31st, and June 30th) service compliance falls below ninety-eight percent (98%) for each service unit type, then the respective Sheriff's Department Division Chief shall meet with the Sheriff's Department Station Captain and the City to discuss compliance and identify a plan for resolution. If the City is dissatisfied with the outcome of either resolution process, the matter will be elevated to a Sheriff's Department Assistant Sheriff or the Sheriff until all City concerns are fully resolved. Resolution may include, but is not limited to, the use of overtime, staffing adjustments, and/or City-initiated service suspensions, at no additional cost to the 169 5 City. If the City determines it is unnecessary, the City may waive either dispute resolution process discussed above. 3.3.1 The Sheriff’s Department shall monitor and make every attempt to backfill vacant and impaired (to include loaned) sworn supervisorial overhead positions by the beginning of the following quarter. 3.3.2 The Sheriff’s Department will work with the City to provide an appropriate tool and/or reports to demonstrate adequate service level compliance under this Agreement. Such service level compliance reports include, but not limited to, daily staffing levels, service levels, deployment of service units, daily deputy activity, or similar type data that is reasonably available. 3.4 A new Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization (SH-AD 575) Form, of this Agreement shall be authorized and signed annually by the City and the Sheriff or his designee effective each July 1, and attached hereto as an Amendment to this Agreement. 3.5 Should the City request a change in the level of service other than pursuant to the annual July 1 readjustment, a revised Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization (SH-AD 575) Form, of this Agreement shall be signed and authorized by the City and the Sheriff or his designee and attached hereto as an Amendment to this Agreement. 3.6 The most recent dated and signed Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization (SH-AD 575) Form, of this Agreement shall be the staffing level in effect between the County and the City. 3.7 The City is not limited to the services indicated in Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization (SH-AD 575) Form, of this Agreement. The City may also request any other service or equipment in the field of public safety, law, or related fields within the legal power of the Sheriff’s Department to provide. Such other services and equipment shall be reflected in a revised Attachment A, Los Angeles County Sheriff’s Department Service Level Aut horization (SH-AD 575) Form, of this Agreement under the procedures set forth 170 6 in Paragraphs 3.4 and 3.5 above. 3.8 With regard to any public safety equipment requested by the City and set forth on Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization (SH-AD 575) Form, of this Agreement, the City shall adhere to the terms and conditions set forth in Attachment C, Public Safety Equipment Use Requirements, of this Agreement. 3.9 When a contracted service unit, requiring the procurement of a vehicle at the onset of service, is deleted from the Service Level Authorization (SH-AD-575) , and the City reinstates said service unit within a 24-month period, the City will not be required to procure a vehicle. 4.0 PERFORMANCE OF AGREEMENT 4.1 For the purpose of performing general law enforcement services under this Agreement, the County shall furnish and supply all necessary labor, supervision, equipment, technology, communication facilities, and supplies necessary to maintain the agreed level of service to be rendered hereunder. 4.2 Notwithstanding the foregoing, the City may provide additional resources for the County to utilize in performance of the services. 4.2.1 All bailments require a separate Bailment Agreement governing the County’s use of the bailed equipment. Such Bailment Agreements shall be administered at the station level. A bailment is a legal arrangement where one party (City) temporarily transfers possession of specific property or assets to another party (County) to facilitate the provision of certain services. 4.2.2 All donations made by a City to the County will be governed by the most current Sheriff’s Department donation procedures. 4.2.3 The County, through the Sheriff’s Department, acknowledges its obligation to maintain an inventory of all non-vehicle equipment owned by the City (“City Equipment”) provided to the County for its use. The inventory shall include, but not limited to, a detailed description of each item of City Equipment, its serial number (if applicable), its condition upon receipt, and its location. The County shall be responsible for regularly updating and maintaining the inventory of City Equipment, including documenting any changes in the status, condition, or location 171 7 of equipment. The inventory shall be kept current and accurate at all times during the term of this Agreement. Upon request by the City, the County shall provide access to the inventory records and facilitate any necessary inspections or audit of the City Equipment. The County shall cooperate fully with the City in verifying the accuracy and completeness of the inventory. In the event of loss, damage, or theft of any City Equipment while under the custody or control of the County, the County shall promptly notify the City in writing and provide a detailed explanation of the circumstances surrounding the incident. All inventory records shall be completed and maintained at the station level. 4.3 When and if both parties to this Agreement concur as to the necessity of maintaining a law enforcement headquarters or Sheriff’s Department substation within the City which would not normally be provided by the Sheriff’s Department, the City shall furnish at its own cost and expense all necessary office space, and the Sheriff’s Department shall have authority to negotiate with the City regarding which entity shall pay for furniture and furnishings, office supplies, janitor service, telephone, light, water, and other utilities. 4.4 It is expressly further understood that in the event a local office or building is maintained in the City, such local office or building may be used by the Sheriff’s Department in connection with the performance of its duties in territory outside of the City, provided, however, that the performance of such outside duties shall not be at any additional cost to the City. 4.5 Notwithstanding the foregoing, it is mutually agreed that in all instances where special supplies, stationery, notices, forms, and the like must be issued in the name of the City, the same shall be supplied by the City at its own cost and expense. 5.0 INDEMNIFICATION 5.1 The parties hereto have executed an Assumption of Liability Agreement approved by the County Board of Supervisors on December 27, 1977, and/or a Joint Indemnity Agreement approved by the County Board of Supervisors on October 8, 1991. Whichever of these documents the City has signed later in time is currently in effect and hereby made a part of and incorporated into this Agreement as if set out in full herein. 172 8 5.2 The parties hereto have also executed a County-City Special Indemnity Agreement approved by the County Board of Supervisors on August 25, 2009. This document is made a part of and incorporated into this Agreement as if set out in full herein. 5.3 In the event the County Board of Supervisors later approves a revised Joint Indemnity Agreement and the City executes the revised agreement, the subsequent agreement as of its effective date shall supersede the agreement previously in effect between the parties hereto. 5.4 Notwithstanding anything to the contrary contained in the Agreement, the indemnification term under this section shall be in effect for a period of nine (9) months, through and including March 31, 2025, with an automatic six-month (6) renewal thereafter, through and including September 30, 2025 (“Indemnification Extension”), unless: (a) this section is amended at any time prior to September 30, 2025; or (b) the entire Agreement is terminated earlier, pursuant to Section 7.0 of this Agreement. If the parties continue to perform under the Agreement after the expiration of the Indemnification Extension without any amendment to this section in accordance with Section 11.0, then the indemnification term under this section will be automatically renewed and incorporated herein for the entire duration of this Agreement. 6.0 TERM OF AGREEMENT 6.1 The term of this Agreement shall be from July 1, 2024 through June 30, 2029, unless sooner terminated or extended as provided for herein. 6.2 At the option of the County Board of Supervisors and with the consent of the City Council, this Agreement may be renewed or extended for successive periods not to exceed five (5) years each. 6.3 Nine (9) months prior to the expiration of this Agreement, the parties shall meet and confer in good faith to discuss the possible renewal or extension of this Agreement pursuant to Paragraph 6.2 above. The parties shall reach an agreement as to the terms of any renewal or extension period no later than six (6) months prior to the expiration of this Agreement. Absent mutual agreement by the parties within that time frame, this Agreement shall expire at the conclusion of the then-existing term. 173 9 7.0 RIGHT OF TERMINATION 7.1 Either party may terminate this Agreement as of the first day of July of any year upon notice in writing to the other party of not less than one hundred eighty (180) calendar days prior thereto. 7.2 Notwithstanding any provision herein to the contrary, the City may terminate this Agreement upon notice in writing to the County given within sixty (60) calendar days of receipt of written notice from the County of any increase in the rate for any service to be performed hereunder, and in such an event this Agreement shall terminate sixty (60) calendar days from the date of the City’s notice to the County. 7.3 This Agreement may be terminated at any time, with or without cause, by either party upon written notice given to the other party at least one hundred eighty (180) calendar days before the date specified for such termination. 7.4 In the event of a termination, each party shall fully discharge all obligations owed to the other party accruing prior to the date of such termination, and, except as otherwise provided herein, each party shall be released from all obligations which would otherwise accrue subsequent to the date of termination. 7.5 In the case of termination of this Agreement, the Sheriff will provide only such duties as are required by law. 8.0 BILLING RATES 8.1 The City shall pay the County for the services and equipment provided under the terms of this Agreement at the billing rates set forth on Attachment B, Contract City Law Enforcement Services and Equipment Master Rate Sheet, of this Agreement, as established by the County Auditor-Controller. 8.2 The billing rates set forth on Attachment B, Contract City Law Enforcement Services and Equipment Master Rate Sheet, of this Agreement shall be readjusted by the County Auditor-Controller annually effective July 1 of each year, published by the County, and attached hereto as an Amendment to this Agreement, to reflect the cost of such service in accordance with the policies and procedures for the determination of such rates as adopted by the County Board of Supervisors. 8.3 The City shall be billed at t he current fiscal year’s billing rates based on the service level provided within the parameters of Attachment A, Los Angeles County 174 10 Sheriff’s Department Service Level Authorization (SH-AD 575) Form, of this Agreement. 8.4 The billing rates for other services and equipment requested pursuant to Paragraph 3.7 of this Agreement and not set forth on Attachment B, Contract City Law Enforcement Services and Equipment Master Rate Sheet, of this Agreement shall be determined by the County Auditor-Controller in accordance with the policies and procedures established by the County Board of Supervisors and then set forth and published on a revised Attachment B, Contract City Law Enforcement Services and Equipment Master Rate Sheet, of this Agreement. 9.0 PAYMENT PROCEDURES 9.1 The County, through the Sheriff's Department, shall render to the City, after the close of each calendar month, a summarized invoice which covers all services performed during said month, and the City shall pay the County for all undisputed amounts within sixty (60) calendar days after date of the invoice. 9.2 If such payment is not delivered to the County office which is described on the invoice within sixty (60) calendar days after the date of the invoice, the County is entitled to recover interest thereon. For all disputed amounts, the City shall provide the County with written notice of the dispute including the invoice date, amount, and reasons for dispute within ten (10) calendar days after receipt of the invoice. The parties shall memorialize the resolution of the dispute in writing. For any disputed amounts, interest shall accrue if payment is not received within sixty (60) calendar days after the dispute resolution is memorialized. 9.3 Interest shall be at the rate of ten percent (10%) per annum or any portion thereof, calculated from the invoice due date, or in the case of disputed amounts, calculated from the date the resolution is memorialized. 9.4 Notwithstanding the provisions of California Government Code Section 907, if such payment is not delivered to the County office which is described on said invoice within sixty (60) calendar days after the date of the invoice, or in the case of disputed amounts, from the date the resolution is memorialized, the County may satisfy such indebtedness, including interest thereon, from any funds of the City on deposit with the County without giving further notice to the City of the County's 175 11 intention to do so. 10.0 NOTICES 10.1 Unless otherwise specified herein, all notices or demands required or permitted to be given or made under this Agreement shall be in writing and shall be hand delivered with signed receipt or mailed by first class registered or certified mail, postage prepaid, addressed to the parties at the following addresses and to the attention of the person named. Addresses and persons to be notified may be changed by either party by giving ten (10) calendar days prior written notice thereof to the other party. 10.2 Notices to the County shall be addressed as follows: Los Angeles County Sheriff's Department Contract Law Enforcement Bureau Attn: Unit Commander 211 W. Temple Street. 7th Floor Los Angeles, California 90012 Phone #: 213-229-1647 10.3 Notices to the City of shall be addressed as follows: City of Rolling Hills Attn: Karina Bañales, City Manager Address: 2 Portuguese Bend Road, Rolling Hills, CA 90274 Phone #: 310-377-1521 11.0 AMENDMENTS 11.1 Except for changes pursuant to Paragraphs 8.2 and 8.4 of this Agreement, all changes, modifications, or amendments to this Agreement must be in the form of a written Amendment duly executed by the County Board of Supervisors and an authorized representative of the City. 11.2 Notwithstanding Paragraph 11.1 above, the Sheriff or his designee is hereby authorized to execute, on behalf of the County, any Amendments and/or supplemental agreements referenced in Sections 3.0, 4.0, and 9.0 of this Agreement. 11.3 In accordance with Paragraphs 8.2 and 8.4 of this Agreement, the Sheriff or his designee is hereby authorized to publish, on behalf of the County, the annual revised Attachment B, Contract City Law Enforcement Services and Equipment 176 12 Master Rate Sheet, of this Agreement. The revised Attachment B, Contract City Law Enforcement Services and Equipment Master Rate Sheet, of this Agreement shall serve as an Amendment to this Agreement, but shall not require the signature of either party. 12.0 AUTHORIZATION WARRANTY 12.1 The City represents and warrants that the person executing this Agreement for the City is an authorized agent who has actual authority to bind the City to each and every term, condition, and obligation of this Agreement and that all requirements of the City have been fulfilled to provide such actual authority. 12.2 The County represents and warrants that the person executing this Agreement for the County is an authorized agent who has actual authority to bind the County to each and every term, condition, and obligation of this Agreement and that all requirements of the County have been fulfilled to provide such actual authority. 13.0 ENTIRE AGREEMENT This Agreement, including Attachment A, Attachment B, and Attachment C, and any Amendments hereto constitute the complete and exclusive statement of understanding of the parties which supersedes all previous agreements, written or oral, and all communications between the parties relating to the subject matter of this Agreement. No change to this Agreement shall be valid unless prepared pursuant to Section 11.0, Amendments, of this Agreement. 177 13 MUNICIPAL LAW ENFORCEMENT SERVICES AGREEMENT BY AND BETWEEN COUNTY OF LOS ANGELES AND CITY OF ROLLING HILLS IN WITNESS WHEREOF, the County of Los Angeles, by order of its Board of Supervisors, has caused this Agreement to be executed by the Sheriff of Los Angeles County, and the City has caused this Agreement to be executed by its duly authorized representative, on the dates written below. COUNTY OF LOS ANGELES By ________________________________ ROBERT G. LUNA Sheriff Date _______________________________ CITY OF ROLLING HILLS By ________________________________ Date _______________________________ ATTEST: By__________________________ City Clerk APPROVED AS TO FORM: APPROVED AS TO FORM: DAWYN R. HARRISON CITY ATTORNEY County Counsel By _________________________ By _________________________ Principal Deputy County Counsel 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 LETTER OF UNDERSTANDING BETWEEN COUNTY OF LOS ANGELES AND CONTRACT CITIES ASSOCIATION REGARDING CONTRACT CITIES LIABILITY TRUST FUND The Los Angeles County Sheriff's Department (LASD) provides law enforcement services to 42 cities in Los Angeles County (Contract Cities) through the Municipal Law Enforcement Services Agreement (MLESA). The MLESA is negotiated every five years, and we are pleased to have reached agreement with the Contract Cities on a five-year MLESA renewal, effective July 1, 2024. We value our mutual goal and partnership to keep our communities safe. During the negotiation of the renewed MLESA, both Contract Cities and the County of Los Angeles (County) agreed that continued discussions around the MLESA’s indemnification provisions are warranted. The increasing value of legal settlements and jury verdicts, escalating insurance costs, and other factors have raised concerns about the potential for exposure to liability at severe or unanticipated levels. This Letter of Understanding (LOU) sets forth the framework within which the County and Contract Cities intend to continue discussions around the MLESA’s indemnification provisions. It is not intended, nor shall it be construed, to impose any monetary or legal duty upon either party. I. PURPOSE The purpose of this LOU is to memorialize the County’s and Contract Cities’ mutual intent to continue to discuss potential changes to the indemnification provisions contained in Section 5.0 (Indemnification) of the MLESA, and to discuss funding models and practices with respect to liability costs. In the renewed MLESA, the parties agreed to maintain the indemnification language from the prior MLESA for a period of nine (9) months, with an automatic extension for an additional six (6) months, to allow these continued discussions to take place. Neither the County nor Contract Cities are committing to any particular resolution or agreement resulting from these discussions, and this LOU is not enforceable against either the County or Contract Cities. Page 1 of 3 199 II. TOPICS FOR DISCUSSIONS The County and Contract Cities intend to discuss the specific topic areas identified below. These topic areas are described generally so as not to be unduly prescriptive or limiting. However, the County and Contract Cities do not intend by this LOU to discuss topic areas outside the reasonable scope of the Assumption of Liability Agreement, Indemnity Agreement, Special Indemnity Agreement and those items listed below, and agree that limiting discussion to these topic areas will ensure that discussions proceed in a focused, orderly, and timely manner. 1. Acts or omissions by LASD employees that will not be considered “Contract City business” for the purposes of determining whether the LTF shall pay for resulting litigation costs and liability. 2. Loss control measures to reduce liabilities paid for by the LTF. 3. A formal process to resolve disputes between the County and Contract Cities over responsibility for certain costs of litigation or liability. 4. Responsibility for the costs to defend LASD employees and punitive damages awards under certain circumstances, including but not limited to, when employees are engaged in conduct outside the course and scope of their employment, illegal or sexual activity or with willful disregard for the safety of others. 5. Participation by Contract Cities in the selection of attorneys for Priority 1 & 2 cases, as well as discussions of which firms should be on the panel.. 6. Defining what constitutes timely notice by the County to Contract Cities’ claims and the ramification of a failure to do so. 7. Litigation cost reduction measures. 8. Addressing the solvency of the LTF. 9. Discuss other fee-for-service models that reflect the County’s desire to fully recover its cost of providing MLESA services in Contract Cities, including any liability costs, and the Contract Cities’ desire to reduce liability costs associated with the existing MLESA structure. III. MEETING SCHEDULE AND FORMAT Within 15 days of the execution of this LOU by all parties, the parties will mutually agree on a meeting schedule. Meetings will take place no less than monthly, either in person or virtually. To foster meaningful and productive discussions, the County and Contract Cities intend to limit their respective number of participants at each meeting to no more than six (6) representatives each. County representatives will include, at a minimum, the Chief Executive Office, LASD, and County Counsel. Contract Cities’ representatives will include, at a minimum, Contract Cities Executive Director, the California Joint Powers Insurance Authority, and a representative from the City Managers workgroup. This does not restrict the use of external professionals to assist in any technical analysis beneficial to the discussions. Page 2 of 3 200 IV. COUNTY OF LOS ANGELES By: Signature Name: Date: Title: LOS ANGELES SHERIFF’S DEPARTMENT By: Signature Name: Date: Title: CONTRACT CITIES ASSOCIATION By: Signature Name: Date: Title: Page 3 of 3 201 I 7o?~ 76 EXHIBIT VI 1 ASSUMPTION OF LIABILITY AGREEMENT 2 3 THIS AGREEMENT,dated for reference purposes only,on the 4 14th day of November,1977,is made and entered into between 5 the County of Los Angeles, sometimes hereinafter referred to as 6 the “County,”and the City of San Dimas, i sometimes hereinafter referred to as the “City.” 8 9 RECITALS (a)City atid County have heretofore contracted for the ii performance of services by County, its officers,agents and 12 employees,and will in the future extend,renew and amend such 13 contracts,and enter into other and further contracts for the 14 performance of services;and Is (b)Such contracts are agreements defined under §895 of the 16 Government Code,and pursuant to §895.2 thereof joint and several 17 liability is imposed on the parties;and 18 (c)Pursuant to §895.4 of the Government Code the parties 19 as a part of the aforementioned agreements may provide for con- 20 tributioh or indemnification upon any liability arising out of 21 the performance of the agreement;and 22 (d)The County is willing to assume liability and defend 23 and hold the City harmless from any loss,cost or expense caused 24 by the negligent or wrongful acts or omissions of County officers, 25 its agents and employees,occurring in the performance of said 26 agreement;and 27 /1/ 28 /// ATTACHMENT 2 202 76 (e)The City is willing to assume liability and defend and 2 hold the County harmless from loss,cost or expenses caused by 3 the negligent or wrongful act or omission of city officers, agents 4 or employees occurring in the performance of agreements between S the parties,except as hereinafter provided, 6 NOW,THEREFORE,IT IS AGREED AS FOLLOWS: 7 1.The County will assume liability and defend and 8 hold the City harmless from loss,costs or expenses caused 9 by the negligent or wrongful act or omission of County 10 officers,agents and employees occurring in the performance 11 of agreements between the parties hereto to the extent that 12 such liability is imposed on the City by the provisions of 13 S895.2 of the Government Code of the State of California. 14 2.The City will assume liability and defend and hold 15 the County harmless from loss,costs or expenses caused by 16 the negligent or wrongful act or omission of City officers, 17 agents and employees occurring in the performance of agree- 18 ments between the parties hereto to the extent that such 19 liability is imposed on the County by the provisions of 20 §895.2 of the Government Code of the State of California.In 21 addition,when liability arises pursuant to §~83O,et seq., 22 of the Government Code,by reason of a dangerous condition 23 of public property of the City, the City shall assume 24 liability and defend and hold the County harmless from ldss, 25 costs or expenses caused by the negligent or wrongful act or 26 omission of City officers,agents and employees,whether 27 /1/ 28 /1/ —2-203 7~N—(lO/13}-~ 1-76 I arising in the performance of an agreement between the 2 parties hereto,with the exception that the County shall 3 assume liability and defend and hold the City harmless from 4 loss, costs or expenses caused by the negligent or wrongful 5 act or omission of County officers,agents and employees, 6 occurring in the performance of any agreement between the 7 parties hereto where a duty is imposed on the County pursuant 8 to such agreement to provide maintenance or inspection 9 services pertaining to said property.Where such an agree- 10 ment between a City and County provides that the County will• 11 provide at least the same level of maintenance or inspection 12 services that the County provides to unincorporated areas, 13 the County will assume liability and defend and hold the City 14 harmless from loss,costs or expense caused by the negligent IS or wrongful act or omission of County officers,agents and 16 employees in failing to provide said services in accordance 17 with said agreement. 18 3.The parties further agree that the Auditor- 19 Controller of the County shall establish a fund for the pay- 20 meat of losses for which the County may be liable under the 21 terms of this agreement,and the County agrees to maintain 22 the fund for the purpose of paying such losses which may 23 occur through its performance under agreements to provide 24 city services to the cities within the County. 25 /1/-- 26 /1/ 27 /1/ 28 /// -3-204 S -76 1 4.It is understood by the parties that the fund 2 referred to in paragraph 3 above is under the full control 3 of the Board of Supervisors and reappropriation of unen- 4 cumbered year-end balances in this fund is discretionary S with the Board of Supervisors. 6 5.The City agrees to make payment to the fund,and 7 the County agrees to require each city receiving services 8 under City Service Agreements to also contribute to the fund. 9 Payments towards the total amount of the fund shall be made 10 by the City in such amounts as may be established by the Auditor-Controller according to the policy and procedure 12 established by the Board of Supervisors,and in the same 13 ratio as the cost of services received by the City is to the 14 total cost to the County for its performance of City Service is Agreements during each fiscal year.In the event that City 16 should elect to terminate its Service Agreement with the 17 County,its responsibility to contribute to the fund pursuant 18 to this agreement shall be limited to payment of amounts 19 which accrue prior to the effective date of said termination. 20 -6.Each party agrees to fully cooperate with the other 21 and assist the other party hereto in all matters relating to 22 losses covered by the terms of this agreement,and more 23 specifically but not being limited thereby,each .party will: 24 (a)Give prompt notification of all occurrences 25 -covered or likely to be covered by the terms hereof, 26 -together with the particulars thereof to the other party 27 hereto; 28 I/f -4-205 [576N—(lOf73~ 11 -76 1 (b)If claim is made, or suit is brought against 2 a party on occurrences covered or lilcely to be covered 3 by the terms hereof,such party shall immediately 4 forward every claim,demand,notice,summons or other 5 process received by it to the other party hereto. 6 7.Should City agree,stipulate,consent to,or other— 7 wise suffer the granting of any claim,the making of any 8 judgment,order,or other award for damages or other relief 9 against itself or any of its or the County’s officers, 10 agents,or employees in any proceeding or action authorized ii by law involving a matter arising out of the performance by 12 the County of services affected hereby without the prior 13 written consent thereto of the County,the City agrees to 14 indemnify,hold harmless,and defend the County from any Is loss,cost or expense to it arising from such claim,judgmen 16 or other award irrespective of the legal basis upon which 17 liability may be imposed by such action including liability 18 of the County under the provisions of Section 895.2 of the 19 Government Code. 20 8.Any party may at its own cost participate in the 21 defense of any suit,or in the prosecution of any appeal 22 affecting matters herein involved where the duty of defense 23 or prosecution is imposed on the other party,and where the 24 other party has consented thereto. 25 -9.This cgreement shall apply to and shall be deemed 26 to be a part of all agreements now existing or hereafter 27 f/I 28 III —5—206 YrS76N—(IOI73)-— 1176 I entered into,including amendments,renewals,or other 2 extensions thereof,wherein the City and.County have con- 3 tracted under circumstances wherein the liability of the City1 4 and County is joint and several under §895.2 of the Govern— S ment Code of the State of California.The provisions of this~ 6 agreement shall supersede and control over any other provi- 7 sions inconsistent therewith in any such contract,heretofore~, 8 or hereafter entered into by and between the parties hereto, 9 unless by specific reference therein this Assumption of 10 Liability.Agreement is inapplicable. II 10.On the effective date of this agreement that cer— 12 tam agreement entitled “Assumption of Liability Amendment,” 13 -if any between the parties,is terminated.The effective 14 date of this agreement is the date executed by the parties, IS but in no event sooner than 12:00 A.M.,March 15,1978, 16 unless the aforementioned Assumption of Liability Amendment 17 should be sooner terminated by the parties,in which event IS the date of such termination shall be the effective date of 19 this agreement.Upon the effective date of this agreement th üme shall continue during the term of any agreement for 21 services to which the same is applicable,unless the County 22 shall sooner elect to terminate this agreement upon thirty 23 days written notice to the City.The County further agrees 24 that this agreement shall be only terminated upon the occur- 25 rence of the foregoing,or any one or more of the following 26 events:- 27 III 28 III -6-207 ~7:J1~I73~S 1176 I (a)Failure of the City to cooperate with the 2 County as required by this agreement.. 3 (b)Upon the City authorizing any judgment,order 4 or other award for damages without the consent of the 5 County in violation of the terms and provisions of this 6 agreement. 7 (c)Upon the County’s election in its absolute 8 discretion to terminate this Assumption of Liability 9 Agreement as to all cities having such service agree- 10 ments with the County. II 11.To the extent that the County has agreed to indem- 12 nify,defend and waive harmless a city, its officers,agents 13 -and employees under this agreement,said obligation shall 14 continue to exist during the term of this agreement whether is -or not there are sufficient funds for such indemnity,defense 16 or hold harmless in the fund established by the Auditor- 17 Controller.It is further understood that the County may 18 also utilize said fund for the purchase of commercial 19 insurance and claims management services and for the payment 20 of other costs to cover the exposures of the County hereunder 21 in whole or in part. 22 12.On termination by the City of service contract with 23 the County,or upon termination by the County for any cause, 24 the County shall continue to indemnify, defend and hold harm- 25 less the City for all claims and losses for which liability 26 is imposed -on the County by the terms of this agreement,and 27 III 28 III —7—208 i/li)- where arising out of the County’s negligent or wrongful act 2 or omission,prior to the effective date of said termination. 3 Said City shall not be entitled to return of any considera- 4 tion paid by it towards the fund established by the Auditor- 5 controller on the termination of this agreement. 6 IN WITNESS WHEREOF,the parties hereto have caused this 7 agreement to be executed by their duly authorized officers the 8 day and year hereinafter set forth. 9 CITY OF ~5AN/b/MA—S -By~~ II Mayor 12 p7 ATTEST this “~{6 day of ~ 13 -197$. IS City Clerk 16 17 COUNTY QF LOS ANGELES 18 By_____________________________ 19 Chairman, Board of Supervisors I ADGflED ATTEST this 22—day of ~p½gç’\-\, 21 197L 22:JAMES S.MIZE,Executive Officer- 23 DEC2 71977 Clerk of the Board of Supervisors 24 ,~.,-‘By__________ 26 27 28 a 8 209 ATTACHMENT 3 210 211 212 213 214 215 216 217 218 219 220 221 COUNTY -CITY SPECIAL INDEMNITY AGREEMENT THIS AGREEMENT ( "Agreement "), dated for reference purposes on the day of 2009, is made and entered into between the County of Los Angeles, hereinafter referred to as the "County," and the Cities identified in Recital G below, hereinafter cumulatively referred to as the "Cities." RECITALS A. Cities, and each of them, and County have heretofore contracted for the performance of law enforcement services to be provided by the County, its officers, agents and employees, known as "Municipal Law Enforcement Services Agreements" which contracts the parties may in the future extend, renew and amend, and enter into other and further contracts for the performance of such services (hereinafter referred to as " MLESA"); and B. Cities and County have heretofore contracted for the indemnification of the Cities by the County, utilizing the Liability Trust Fund ( "LTF ") for the acts and omissions committed by the County's employees in the course and scope of providing services under the MLESA agreements, more particularly described as the Joint Indemnity Agreements or Assumption of Liability Agreements (hereinafter referred to as "Joint Indemnity Agreements ") which have remained in full force and effect to the present time; and C. In accordance with the Joint Indemnity Agreements, the County established the LTF, as provided in those agreements. In accordance with the Joint Indemnity Agreements, the Cities, and each of them, are required COCA- COLA.SI'CINDEMNTYACR A90727FIN.DOC ATTACHMENT 4 222 to pay monies into the LTF. The monies in the LTF are used to reimburse the County for claims, losses, costs and expenses it incurs for which indemnification is provided in the parties' MLESA and /or Joint Indemnity Agreements; and D. The County withdrew sums from the LTF for the purpose of reimbursing itself for its payment of settlement of claims related to sexual assaults committed by a deputy sheriff (Gonzales) in the years 2002 and 2003 (the "Claims "); and E. A dispute has arisen between the parties regarding the circumstances under which the County may utilize the funds in the LTF for claims arising from sexual assaults committed by deputy sheriffs employed by the County ( "Sexual Assaults "); and F. The parties desire to continue the Joint Indemnity Agreements and MLESA agreements, as amended, modified and supplemented from time to time. As further consideration to the Cities, the County is willing to reimburse the LTF for a portion of the sums that are used or may be used by it from the LTF for claims, losses, costs or expenses arising out of certain Sexual Assaults, as defined in Section 2 below, occurring in the performance of the MLESA agreements on the terms and in the manner provided in this Agreement. G. The Cities that are a party to this Agreement are as follows: City of Agoura Hills City of Artesia City of Avalon City of Bellflower City of Bradbury Citv of Calabasas CCCA- COLA. S PC INDEMNTYAGR.090727 FIN. DOC 2 223 City of Carson City of Cerritos City of Commerce City of Compton City of Diamond Bar City of Duarte City of Hawaiian Gardens City of Hidden Hills City of Industry City of La Canada City of La Habra Heights City of La Mirada City of La Puente City of Lakewood City of Lancaster City of Lawndale City of Lomita City of Lynwood City of Malibu City of Norwalk City of Palmdale City of Paramount City of Pico Rivera City of Rancho Palos Verde City of Rolling Hills City of Rolling Hills Estate City of Rosemead City of San Dimas City of Santa Clarita City of South El Monte City of Temple City City of Walnut City of West Hollywood City of Westlake Village NOW, THEREFORE, for good and valuable consideration, receipt of which is acknowledged, it is mutually agreed as follows: AGREEMENT 1. Effective Date. This Agreement shall be effective as of July 1, 2009. The foregoing notwithstanding, this Agreement shall apply to any claims notice of which is first given to the Liability Trust Fund Oversight Committee after the effective date of this agreement, regardless of the date of occurrence. For purposes of this Agreement "notice" shall mean notification to the Chief Executive Officer of the California Joint Powers Insurance Authority and the Executive Director of the California Contract Cities Association, unless otherwise instructed in writing. 2. Indemnity by the County to the City. CCCA- C0L .A.SPCINDPMNTYAGR.090727PIN.DOC 3 224 The parties agree that the maximum liability of the LTF for any losses, claims, costs or expenses related to certain Sexual Assaults, as herein below defined, by deputies or other peace officers in the employ of the County shall be one -half (1/2) of any settlement, judgment or award for such assaults and the costs of defense, including attorneys fees, for such claims or lawsuits. In the event that a withdrawal is made by the County from the LTF for any liability related to certain Sexual Assaults by deputies or other peace officers, as herein below defined, the County shall reimburse the LTF, or, in the event that it has not made a withdrawal of funds from the LTF it shall assume the responsibility to pay from its own funds, one -half (1 / 2) of any amounts necessary to satisfy any judgment, award or settlement not otherwise covered by insurance, if there is any, together with costs of defense, including attorneys fees, under the following circumstances: a. A felony judgment of criminal conviction is entered in a state or federal court based upon the same facts as the claim; and b. The felony judgment of criminal conviction is based upon an act of rape, sodomy, oral copulation or other sexual penetration of a person; For purposes of calculating the amount that the County is obligated to pay into the LTF under this Agreement, any amount paid by an insurance carrier directly to a claimant on a claim which is subject to this Agreement shall not be deemed to have been paid from the LTF. For purposes of calculating the amount that the County is obligated to pay into the LTF under this Agreement. any amount paid from the LTF on a claim CCCA -COLAS PC) NDENI N7 YAG R.090727FIN.DOC 4 225 which is subject to this Agreement but which is reimbursed to the LTF by an insurance carrier shall not have been deemed paid from the LTF. Nothing herein creates an obligation upon the Cities, or any of them, or any other entity to acquire, have or maintain any policy of insurance. 3. Term of and Application to Other Agreements. This Agreement shall apply to all MLESA agreements now existing or hereafter entered into, including amendments, renewals or other extensions thereof. This Agreement shall serve to supplement the Joint Indemnity Agreements with respect to the single subject matter addressed herein. Nothing herein shall be deemed to change, modify, alter, amend, or substitute any term, right, obligation or condition set forth in an MLESA, as amended or modified, from time to time. 4. Termination of Service Contracts Between County and Cities. This Agreement shall continue in effect until the last of any MLESA or similar agreement is lawfully terminated in accordance with its terms. Such termination shall not relieve County or City for any obligations set forth in such MLESA agreement relating to obligations upon termination of such agreement and this Agreement to any claims related to a Sexual Assault. 5. Release of the Claims. The Cities and each of them hereby waive, release and relinquish any claim they may have for the reimbursement of the sums withdrawn by the County with respect to the Claims. The County hereby waives, releases and relinquishes any right or claim it may have for reimbursement of any sums it has or may have CCCA- COLA .SPCINDGMNTI'AGR.090727FIN.DOC 5 226 paid or incurred with regard to any Sexual Assault occurring prior to the effective date of this Agreement. 6. Further Assurances Each of the parties hereto agrees to execute and deliver any and all additional papers and documents, and to do any and all acts reasonably necessary in connection with the performance of its obligations hereunder and to carry out the intent of the parties hereto. 7. Non - Admission of Liability Each of the parties hereto agrees that nothing contained or incorporated herein shall be deemed as an admission of liability with respect to any matter, thing, or dispute whatsoever. 8. Entire Agreement This Agreement with regard to the use of LTF funds by the County for claims arising out of Sexual Assaults, and the other agreements between the parties referenced herein, shall constitute the entire agreement between the parties hereto with respect to the subject matter hereof, and shall supersede all prior and contemporaneous agreements, representations of the parties concerning the subject matter hereof and the terms applicable thereto. 9. Amendment This Agreement may not be supplemented. modified or amended in any manner, except by an instrument in writing stating that it is a supplement, modification or amendment of this Agreement and signed by each of the parties hereto. CCCA- COLA. SPCINDE:NIN "FYAGR.090727FIN.DOC 6 227 10. Waiver. No waiver of any of the provisions of this Agreement shall be deemed or constitute a waiver of any other provision, whether or not similar, nor shall any wavier constitute a continuing wavier. No waiver shall be binding unless executed in writing by the party making the waiver. 11. Counterparts This Agreement may be executed by one or more separate counterparts, each of which, when so executed shall together constitute one and the same instrument. A copy transmitted electronically or by facsimile shall be deemed effective as an original. 12. Captions The captions appearing in this Agreement are descriptive only and for convenience of reference. Should there be any conflict between any such caption and the terms of this Agreement, the latter shall control and govern the construction of this Agreement. 13. Constructions and Interpretation The parties have participated equally in the preparation of this Agreement, which shall be construed and interpreted simply and fairly and not strictly for or against any party. 14. Recitals. The Recitals set forth in this Agreement are incorporated herein by reference and made a part hereof. CCCA -COLA SKINDEMN'IYAGR.090727FIN.DOC. 7 228 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their fully authorized officers the day and year hereinafter set forth. ATTEST: SACHI HAMAI Executive Officer -Clerk Board of Supervisors By Deputy APPROVED AS TO FORM: ROBERT E. KALUNIAN Acting County Counsel Lo Signatures continued) COUNTY OF LOS ANGELES DON KNABE Chairman, Board of Supervisors 0 CCCA- COLA. SPCINDEMN 8 229 ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By ATTEST: City Clerk APPROVED AS TO FORM: CITY ATTORNEY m Signatures Continued) CITY OF AGOURA HILLS Lm MAYOR CITY OF ARTESIA By MAYOR CCCA- COLA.SPCINDFMNTYAGR 09072 7FM.DOC 9 230 CITY OF AVALON ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By II MAYOR CITY OF BELLFLOWER By MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By Signatures Continued) CCGbCOLA.SPCINDEMN'I'Y.AG R.090727F'IN.D0C T 231 CITY OF BRADBURY 0 ITU WCON ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By CITY OF CALABASAS 10 fuYNTOM ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By Signatures Continued) CCCA- COLAS PCINDEMNTYAGR.090727FIN. DOC 232 CITY OF CARSON ATTEST: M City Clerk QI MAYOR APPROVED AS TO FORM: CITY ATTORNEY 10 ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By Signatures Continued) CITY OF CERRITOS m fNEVZOT CCCA- COLA .SKINDE.\MNTYAGRD90727F(N.DOC 12 233 ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By Signatures Continued CITY OF COMMERCE m MAYOR CITY OF COMPTON a MAYOR CCCA- COLA. SPCINDEYMNIYAGR.090727HNDOC 13 234 ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By Signatures Continued) CITY OF DIAMOND BAR By MAYOR CITY OF DUARTE m MAYOR COCA -COLAS PCINDEMNTYAC R,090727PINDOC 14 235 CITY OF HAWAIIAN GARDENS ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By IIm MAYOR CITY OF HIDDEN HILLS By MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY Signatures Continued) COCA -COLAS PC.INDPON1YACR.090727FIN. DOC 1.5 236 16 CITY OF INDUSTRY By MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By CITY OF LA CANADA By MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY - By Signatures Continued) CCCA -COL:\ SPCINDFMNTYAGR.090727FIN.DOC 16 237 ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By ATTEST: City Clerk APPROVED AS TO FORM: CITY ATTORNEY a Signatures Continued) CITY OF LA HABRA HEIGHTS Im MAYOR CITY OF LA MIRADA m ruFMO7:7 CCCA- COLA.SPCINDEMNI YAGR.090727FIN.DOC 17 238 CITY OF LA PUENTE 0 MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By CITY OF LAKEWOOD By MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By Signatures Continued) CCCA- COI.A.SPCINNDEMNPYAG R.090727F IN. DOC is 239 CITY OF LANCASTER ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By 0 MAYOR CITY OF LAWNDALE By MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By Signatures Continued) COCA- COLA.SPCINDE M NTYAGR.090727 FIN. DOC 19 240 CITY OF LOMITA m MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By CITY OF LYNWOOD By MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By Signatures Continued) C CCA -CO LA. S P C I N D 8Ni NT Y AG R .09072 7 F I N. DOC 20 241 I CITY OF MALIBU By MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By CITY OF NORWALK By MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By Signatures Continued) CCC.A- COI,A.SPCINDEMNTYAGR O90727FIN.DOC I 242 CITY OF PALMDALE ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By MAYOR CITY OF PARAMOUNT By MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By Signatures Continued) CCCA - COLAS KINDEb1NTYAGR.090727FIN.DOC 2 243 CITY OF PICO RIVERA Lo MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By CITY OF RANCHO PALOS VERDE LIZA MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By Signatures continued) CCCA - COLA .SPCWDEMNTYAGR.090727F IN. DOC 23 244 CITY OF ROLLING HILLS ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By go MAYOR CITY OF ROLLING HILLS ESTATE By MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By Signatures continued) CCCA- COLA.S PC] N DEMNI'YAGR.090 72 MN.DOC.74 245 ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By ATTEST: By o City Clerk APPROVED AS TO FORM: CITY ATTORNEY By Signatures continued) CITY OF ROSEMEAD Lm O/ `o CITY OF SAN DIMAS MAYOR CCCA --COLA SPCINDFNIN "rYAGR.090727F1N. DOC 25 246 CITY OF SANTA CLARITA 0 70T. 0 ATTEST: City Clerk APPROVED AS TO FORM: CITY ATTORNEY CITY OF SOUTH EL MONTE 13Ti MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By Signatures continued) CCCA- COLA.SPCINDFMNTYAG R.090727 FIN, DOC. 26 247 CITY OF TEMPLE CITY Lm IMF' • • ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By CITY OF WALNUT By MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By Signatures continued) CCCA -COLAS PCLNDEMNTYAGR.090727FiN.DOC 2', 248 CITY OF WEST HOLLYWOOD ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By QQI MAYOR CITY OF WESTLAKE VILLAGE By MAYOR ATTEST: By City Clerk APPROVED AS TO FORM: CITY ATTORNEY By End) CCCA - COL A. S PC[Nll EM N'IY AG R.090727FI N. DOC.ZS 249 Agenda Item No.: 14.A Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: RECEIVE AND FILE A VERBAL REPORT REGARDING HOMEOWNERS INSURANCE RENEWAL CHALLENGES AND THE CALIFORNIA INSURANCE COMMISSION'S EFFORT TO RESOLVE (MAYOR MIRSCH) DATE:June 10, 2024 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Receive and file. ATTACHMENTS: CL_AGN_240610_CC_051524_CAConsumerAlert.pdf 250 insurance.ca.gov │800-927-4357 Commissioner Lara Testifies on Progress Toward Stabilizing Insurance Market May 15, 2024 — Today Insurance Commissioner Ricardo Lara informed members of the Assembly Insurance Committee about significant progress toward California’s largest insurance reform in 30 years. In prepared remarks, he detailed next steps to implement his comprehensive Sustainable Insurance Strategy in concert with support from the Governor and Legislature through the budget process. The following is an excerpt of Commissioner Lara’s remarks: "Since last September, my Department has been working diligently on ambitious reforms designed to stabilize our state’s insurance marketplace. I am thankful for my staff and their incredible commitment to this bold, comprehensive strategy that will modernize our state’s insurance market, especially with the growing threat of climate change." "I want to address the questions everyone always asks up front: When will our work be complete? And when will Californians start to see the benefits?" "My answer is: We will finish our regulatory work this year, and Californians are already seeing benefits." "We need to be thorough, thoughtful, and deliberate. I do not want another insurance commissioner to be back in front of you in 5 or 10 years because these regulations could not be implemented -- and do not meet the mandate of Proposition 103." PROPOSITION 103 "The purpose of Prop. 103 is four-fold: to protect consumers from arbitrary insurance rates and practices, to encourage a competitive insurance marketplace, to provide for an accountable Insurance Commissioner, and to keep insurance fair, available, and affordable for all Californians." "Under Prop. 103, insurance companies are not required to write policies. That was upheld in the Garamendi precedent. Underwriting mandates will not prevent insurance companies from further retreating." "Let me put our work into perspective: We are creating entirely new laws and new procedures from the ground up, and we need to make sure we have all those in place. Our entire team has been continuously engaged and working hard throughout this insurance crisis -- and Californians are already seeing results. Here are some notable updates since we last met: "I stand with our Governor’s remarks at his news conference — that time is of the essence. I appreciate his strong support of my strategy and his continued commitment to ensure my Department has the support and resources we need to implement a strong, lasting reform." 251 insurance.ca.gov │800-927-4357 OUTCOMES "Just yesterday, Farmers announced that it will reopen several of its commercial coverage lines, including for homeowners associations, apartments, and condominiums. Farmers is California’s largest domiciled insurance company and second largest homeowners writer." "This decision is a direct result of my Department’s approval of its commercial rate filing. My Department has also approved three of Farmers’ homeowners rate filings in the last year as the company continues to write homeowners policies across the state." "Last week, we heard that Mercury Insurance Company is working with Tokio Marine to pick up the bulk of its personal homeowners insurance business. Mercury is another California-based company that has not stopped writing new homeowners policies. And Tokio Marine continues to write commercial coverage." "My staff just approved CSAA Insurance Exchange’s homeowners insurance rate filing last Friday. This ensures that CSAA can continue to write homeowners policies under the Triple-A Northern California brand. Earlier this year, my Department approved a significant homeowners rate filing for Triple-A South, so it can continue to write homeowners policies throughout Southern California." "And during my Department’s catastrophe modeling workshop last month, an Allstate executive testified that it will end its pause on new homeowners business in California and begin writing in virtually every corner of the state when our strategy is implemented." "In fact, every Top 10 homeowners insurance company in California has had a justified rate increase in the past five months according to the rules under Prop. 103. This underscores the tremendous urgency that my Department is showing during this crisis." "These are signs of progress. However, we are not going to declare success prematurely, or be reactive to every insurance announcement or headline. We all are living in a time of uncertainty. I know that this is frustrating for anyone who is trying to buy or sell a home, or worried about whether they can even afford the insurance coverage they need as we face another fire season. We are already monitoring the current fire in San Bernardino County. That is the reality of our situation." "You’ve heard this before but it bears repeating: We are on our way to enacting the state’s largest insurance reform in 30 years since the passage of Prop. 103 in 1988. Prop. 103 was less than two pages of text. It took years of regulatory work, dozens of rulemakings, and even scores of litigation to make that landmark initiative a reality." "Now we are facing the accumulated stress of decades of long-needed reforms and neglected decisions. For years, insurance companies submitted rate requests less than what they need largely because of the stagnant intervenor process. We are compressing decades of this deferral and delay into a one-year timeline of action. We have been surviving with 20th century regulations for 21st century problems. That cannot continue." "There are others who are still trying to figure out if there is even an insurance crisis or just denying that there is an emergency to begin with. News flash: This is what an insurance crisis looks like." MOVING FORWARD Looking ahead, my Department is finalizing new regulations to allow the use of forward-looking catastrophe models in rate filings. This will help increase insurance availability in wildfire distressed areas and reduce reliance on the FAIR Plan, which has become a large percentage of policies in rural areas. In July, we plan to introduce proposed regulation text to allow homeowners and commercial insurance companies to incorporate the net cost of reinsurance in their rate filings. Reinsurance is a 252 insurance.ca.gov │800-927-4357 critical component of how insurance companies manage their risk, and allowing these costs to be included in rate filings will support greater insurance availability. We are also working on modernizing the FAIR Plan, which has been neglected for many years. By July, I plan to amend the FAIR Plan’s Plan of Operation to increase coverage limits for larger homeowners associations, condo associations, farms, and other businesses, while ensuring the financial sustainability of the Plan. This modernization effort includes improving customer service responsiveness and ensuring that the FAIR Plan can fulfill its statutory role of providing coverage to all who need it. In February, my Department published a “complete rate application” regulation to create clarity for all participants in the rate review process. This regulation is a critical part of reducing unnecessary delays and ensuring that rate filings are reviewed more quickly. Last week, the Governor announced a new legislative proposal to expedite my Department’s insurance rate filing process. This proposal aims to provide more resources for thorough review within the current 60-day timeline prescribed under Proposition 103, with provisions for 30-day extensions when necessary. This proposal will help ensure that insurance companies provide complete information upfront, allowing for timely and informed decisions on rate filings. To increase public participation and transparency in the Proposition 103 intervenor process, my Department launched a new webpage that explains how the process works and provides access to petitions filed by intervenors, as well as the Department’s responses and compensation awarded. 253 Agenda Item No.: 15.A Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:JOHN SIGNO, DIRECTOR OF PLANNING & COMMUNITY SERVICES THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: PRESENTATION REGARDING OPEN FIRE PITS WITHIN CITY LIMITS DATE:June 10, 2024 BACKGROUND: Fire risks on the Palos Verdes Peninsula are heightened due to a confluence of high temperatures, widespread dry vegetation, and strong coastal winds. Small brush fires are regular occurrences on the hill, igniting multiple times a year during the summer and fall. Most brush fires are extinguished relatively quickly, but large wildfires have a history of ravaging Peninsula communities. In 1973, a large wildfire was sparked by two children playing with illegal firecrackers--more than 900 acres were burned, and 12 homes in Rolling Hills were destroyed. In 2009, a fire of unknown origin burned 235 acres, lasting for two days and causing damage to six Rolling Hills homes leading to 1,200 people being forced to evacuate (Attachment 1). Due to the City's open space areas, dense vegetation, and 1,500 acres of land in the adjacent Palos Verdes Peninsula Land Conservancy (PVPLC), the Los Angeles County Fire Marshal has deemed the City of Rolling Hills a "Very High Fire Hazard" local responsibility area (LRA) zone (Attachment 2). Additionally, Rolling Hills is located within FEMA's "Very High" Wildfire Risk Index score zone and the California Public Utility Commission's "Tier-2 Elevated Fire- Threat Area" zone. Municipal and Los Angeles County Codes The Fire Code of the Los Angeles County Code was adopted in the City's Municipal Code as the "Fire Code of the City of Rolling Hills." An email from the County of Los Angeles Fire Department clarifies how the Fire Code governs firepits (Attachment 3) and is summarized below: Operational Permits, Section 105.5.34: Recreational fires are a type of open burning with a total fuel area that is 3 feet or less in diameter and 2 feet or less in height, used for pleasure, religious, ceremonial, cooking, warmth, or similar purposes. Recreational fires are exempt from operational permits, given that the fire is not located in a Wildlife Urban Interface Area (WUI) or a Fire Hazard Severity Zone (FHSZ). 254 Rolling Hills is not in a WUI, but we are classified as a "Very High Fire Hazard" zone under the LA County Fire Marshal's FHSZ (see Attachment 2). As such, the following must be met to gain permit exemption: The recreational fire is located on private property with consent from the owner. No rubbish is burned. It is not for commercial or industrial use. It is in compliance with Sections 307.4 and 307.5 (detailed below). "Activities in Wildfire Risk Areas" Permits, Section 326.2: These permits are required for conducting certain activities in a wildfire risk area, including recreational open burning, using stands for cooking, or other activities that could provide a source of ignition (Attachment 3). Location, Sections 307.4.2 and 307.4.3: Recreational fires may not be conducted within 25 feet of a structure or combustible material. Portable outdoor fireplaces are exempt from location restrictions if used at a one- or two-family dwelling. Portable outdoor fireplaces are defined as portable, outdoor, solid-fuel-burning fireplaces that may be open in design or may have a small hearth opening and a short chimney or chimney opening on the top (Attachment 3). Attendance, Section 307.5: Open burning, bonfires, recreational fires, and portable outdoor fireplaces must be constantly attended until the fire is extinguished. At least one portable fire extinguisher or other approved on-site fire-extinguishing equipment--such as dirt, sand, water barrels, garden hoses, or a water truck--must be available for immediate utilization (Attachment 3). LA County Code Requirements Summary Portable Solid-Fuel Burning Outdoor Fireplaces: No location requirements or permits are required for portable outdoor fireplaces. A fire extinguisher must be located nearby. Portable Gas-Burning Outdoor Fireplaces: The Fire Code does not address portable gas- burning outdoor fireplaces. Fixed Outdoor Decorative Fires: The LA County Fire Code does not address decorative fires using gas-burning only. We were directed to refer to the LA County Mechanical Code, referring to them as "Outdoor Open Flame Decorative Appliances" in 2022 CMC Section 932.0. In the code, owners must comply with the manufacturer's instructions, maintain clearance of at least 36 inches of combustible materials from the sides, and it may not be located underneath overhead combustible materials (Attachment 2). Firepits: Operational permits are not required, given the firepit meets the size standards for a recreational fire and is located further than 25 feet from any structure or combustible material. A fire extinguisher must be located nearby. DISCUSSION: Current Permitting and Approvals Process When a firepit is included in a set of plans, City staff checks for the square footage of the firepit to calculate the total square footage of the project. Staff may also ask for firepits to be located away from flammable areas as a best practice and to keep the firepit within the designated patio area. Once the project is approved by the Planning Department, Los Angeles County's Building & Safety Department is responsible for flagging potential violations. Issues would be sent to the 255 applicant for corrections, and the applicant would be referred to the Los Angeles County Fire Department for Fire Code requirements, if applicable. In conversation with LA County Building & Safety, however, staff was informed the only aspect of firepits that are enforced is the requirement for a plumbing permit for gas lines associated with gas-burning firepits. Wood- burning firepits are not allowed. Firepits, on their own, would not be directly referred to the Fire Department. Only larger projects, such as a new residence with a backyard firepit, would be referred. The LA County Fire Code has restrictions on certain types of firepits, but they fail to encompass the full range of appliances that could spark fires. Additionally, the Los Angeles County Building & Safety Department is not consistently enforcing the Fire Code, so issues that should be corrected to meet the Fire Code are not being reviewed. Policies of Other Peninsula Cities Like the City of Rolling Hills, the cities of Rancho Palos Verdes, Rolling Hills Estates, and Palos Verdes Estates have all adopted the Los Angeles County Fire Code as part of their municipal code. None of the planning departments for the other cities have specific procedures for approving firepits or other appliances that spark outdoor fires, as building & safety departments are generally responsible for those reviews. Rolling Hills is the only city that uses Los Angeles County's Building & Safety Department for building permits since Rancho Palos Verdes and Palos Verdes Estates have their own building & safety departments, and Rolling Hills Estates uses Willdan Engineering. Conclusion The City of Rolling Hills, with its open spaces, dense vegetation, dry climate, and proximity to large nature preserves, has been designated by the California Fire Marshal as a "Very High Fire Hazard" zone. Additionally, there is a significant history of wildfires disrupting and destroying Rolling Hills homes. The Los Angeles County Fire Code, which was adopted as Rolling Hills' Fire Code, includes some safety requirements for firepits and other outdoor appliances that can spark fires. After a project is approved by Rolling Hills' Planning Department, the Los Angeles County Building & Safety Department determines if Fire Department review is needed for compliance with the Fire Code. However, referrals to the Fire Department are not always made, especially for smaller projects. Staff seeks City Council direction on the next steps. The City Council may request the Planning Commission to consider amending the Zoning Ordinance to include requirements for new firepits and other outdoor appliances that could start a wildfire. A code amendment may include, but are not limited to, requirements for distances to structures, amount of hardscape surrounding the firepit, and possession of a nearby fire extinguisher. This would enable the Planning Department to more effectively review plans for fire safety. FISCAL IMPACT: None. RECOMMENDATION: Receive and file or provide direction to staff. 256 ATTACHMENTS: Attachment 1: Daily Breeze - 1973 and 2009 Rolling Hills Fire.pdf Attachment 2: CL_AGN_CC_240610_15_Matters_Staff_FireDeptEmail_240603.pdf Attachment 3: Bonfire Recreational-Fire Permit Triggers 2023 LACFC.pdf 257 The most destructive brush fire in South Bay history Posted on November 7, 2014 by Sam Gnerre A helicopter makes an aerial water drop, left center, in this view of the Rolling Hills fire on June 22, 1973. Looking toward Rolling Hills from Rancho Palos Verdes. (Daily Breeze staff photo) — South Bay History The Daily Breeze's Sam Gnerre looks at the way we were in the South Bay 258 Two boys aged 12 and 13 playing with homemade firecrackers made from shotgun powder found in a garage inadvertently started the most destructive brush fire in South Bay History. The pair set off the explosive flash powder mixture in a vacant lot on Whitley Collins Drive, between Highridge and Crest roads near Rolling Hills, at about 2:30 p.m. on Friday, June 22, 1973. What followed next was chaos. National Guardsmen on duty at the nearby Nike missile site on Crenshaw Boulevard near Crest Road heard popping noises and then saw puffs of smoke and the two boys running from the area across the canyon. A dispatcher sent out the first call to local fire stations at 2:37 p.m. By 3 p.m., the fast-spreading fire was completely out of control. It had been an unusually dry rainy season and strong breezes were blowing that day, so the fire spread rapidly through the Rolling Hills area. Daily Breeze map of the June 22, 1973 Rolling HIlls fire, shown in pink. Numbered arrows indicate areas of most severe damage. Daily Breeze, June 23, 1973. — 259 Before the blaze was tamed at 1 a.m. on Saturday, June 23, it had charred about 925 acres, burned 12 home to the ground, damaged at least 10 others others and caused an estimated $2 million in property losses. Somewhat miraculously, no one was seriously injured or killed in the conflagration. Black smoke filled the skies, and hundreds of sightseers clogged nearby roads, including Crenshaw and Hawthorne boulevards and Highridge, Crest and Crestridge roads, in an attempt to view the blaze. Luckily, no one was hurt, especially in the early hours of the blaze when bystanders went right up to the edge of the fire area, before perimeters had been established. Houses were destroyed on Cinch Ring, Wrangler, Paint Brush Canyon and Running Brand roads. Warren McDermid called the Daily Breeze at about 3 p.m., saying that he had taken some excellent photos of the fire from his house at 3 Wrangler Road. He left a message, but when his call was returned, there was no answer. McDermid, his wife and a house guest had been forced to flee, and the house had been lost to the blaze. Unidentified man leaves as a house burns during the June 22, 1973 Rolling Hills fire. (Daily Breeze staff photo) — 260 Three more houses were destroyed as the fire reached the Portuguese Bend area. Three houses near the Vanderlip mansion at 100 Vanderlip Drive were destroyed, including the former summer retreat owned by actor Charles Laughton. In addition to two houses on Vanderlip, another home burned at 75 Narcissa Drive. Mrs. S.R. Green told the Daily Breeze, “It doesn’t appear that we’re in any serious danger,” from her house at 76 Narcissa Drive, while the 75 Narcissa house directly across the street continued to burn. At one point, Los Angeles County Supervisor James A. Hayes and his wife narrowly escaped injury when flames jumped across Southfield Lane in Rolling HIlls while the pair were in their car following firefighters. The Fourth District supervisor had recently moved into a home on nearby Chuckwagon Road. Remains of the house destroyed by fire at 1 Wrangler Road in Rolling Hills following the June 22, 1973 Rolling Hills fire. (Daily Breeze staff photo) — 261 Residents took to rooftops with hoses to water down their houses, grabbed shovels and garden tools to clear firebreaks and did whatever else they could to save their houses, animals and possessions. Hundreds of firefighters battled the blaze, but some of the terrain proved inaccessible except by helicopter air drops. By 8 p.m. Friday night, the blaze had been mostly brought under control, though mop-up efforts would continue well into Saturday. As for the two boys, they were not charged. They expressed great remorse, and the authorities determined that there was no criminal intent on their part. Destructive as the 1973 blaze was, it was not the largest fire in terms of size in South Bay history. On Monday, Sept. 10, 1945, at about 3 p.m., a fire started by utility crews working on a downed power line on Blackwater Canyon Road near Crest Road, just a short distance east from the source point of the 1973 blaze, went on to burn an estimated 3,000 acres in the Rolling Hills area. Fortunately, population was more sparse in the area in 1945, and only one home was completely destroyed. No one was injured, but 80 nearby homes were evacuated. A collie on a roof overlooking the blaze seems unconcerned as the Rolling Hills fire rages on June 22, 1973. (Daily Breeze staff photo) — 262 Residents described walls of flame 15 to 25 feet high in the area, and several garages, barns and other outbuildings were burned in the blaze. Authorities estimated damage at $36,000, and one can only imagine the toll if the same fire were to burn in the area today. The most recent major brush fire in the South Bay began on Thursday night, Aug. 27, 2009, at the upper ends of Narcissa and Peppertree drives, in the gated Portuguese Bend community near the Portuguese Bend Nature Preserve (now part of the Palos Verdes Nature Preserve) just north of the Trump National Golf Club. It burned 230 acres of brush, threatened dozens of homes and forced 1,200 area residents to evacuate. The Palos Verdes Peninsula fire of Aug. 28, 2009, as viewed from Del Cerro Park. File photo. (Steve McCrank / Staff Photographer) — 263 No homes were lost and no injuries to residents or firefighters were reported. Its cause was unknown, though it was speculated that an electrical problem at a utility pole in the area may have been the source. 165 of the 230 acres charred in the blaze were part of the relatively new Nature Preserve, which was created in 2005. An earlier fire on July 13, 2005 burned 212 acres of land near Del Cero Park on the Palos Verdes Peninsula, but no homes were lost. Sources: Daily Breeze files. Los Angeles Times files. This entry was posted in Uncategorized by Sam Gnerre. Bookmark the permalink [https://blogs.dailybreeze.com/history/2014/11/07/the-most-destructive-brush-fire-in-south- bay-history/] . A fire helicopter makes a night water drop on the Palos Verdes Peninsula fire on Aug. 28, 2009. File photo. (Steve McCrank / Staff Photographer) — 264 ALSO ON SOUTH BAY HISTORY 6 years ago 1 comment Things were different in 1939 than they are now, sure, but the Torrance … CitiesCities nd nd Fourth Fourth of of July July reworksreworks decisions decisions … … •4 years ago 1 comment Historians have pored over the details of the October 1846 encounter known as … TheThe Battle Battle of of Dominguez Dominguez RanchoRancho and and “The “The Old Old … … •5 years ago 1 comment The idea for a centrally located senior citizens center in Torrance rst TheThe Bartlett Bartlett Senior Senior CitizensCitizens Center Center has has • Share Best Newest Oldest 1 Comment 1 Login LOG IN WITH OR SIGN UP WITH DISQUS Name Join the discussion… ? amwinpv Reply −⚑ 3 years ago I remember it surprisingly well! 0 0 Subscribe Privacy Do Not Sell My Data G  A ⥅ 265 1 John Signo From:Joshua Costello <Joshua.Costello@fire.lacounty.gov> Sent:Monday, June 3, 2024 1:25 PM To:Abbie Sedillos; John Signo Cc:Marion Jaikowski; Martin Salazar; Frank Garrido; Shawn Tanji; Mark Tyler; Joshua Costello Subject:RE: Fire Pits Attachments:Bonfire & Recreational-Fire Permit Triggers, 2023 LACFC.docx EXTERNAL EMAIL - This email was sent by a person from outside your organization. Exercise caution when clicking links, opening attachments or taking further action, before validating its authenticity. Good Afternoon, Thank you for the question. The trigger in Section 326 is pre‐empted by the following highlighted verbiage in Section 105: 105.5.34 Open burning. An operational permit is required for the kindling or maintaining of an open fire or a fire on any public street, alley, road, or other public or private ground. Instructions and stipulations of the permit shall be complied with. Exception: RA recreational fires is subject to the provisions of this code, but is exempt from need for a permit provided that all of the following apply: 1. The fire is not located in a wildfire risk area or in a very high, high, or moderate fire hazard severity zone, except where located on private property with consent of the owner; meeting the size requirements in #2, below; and meeting the requirements of Sections 307.4 through 307.5. 2. The fire conforms to the definition of a "recreational fire", which limits the size of the fire to a total fuel area of 3 feet (914 mm) or less in diameter and 2 feet (610 mm) or less in height; limits the combustibles to burning no rubbish; and restricts the purpose of the fire to pleasure, religious, ceremonial, cooking, warmth or similar. For restrictions and requirements for each type of open burning, including but not limited to bonfires and recreational fires, see Section 307. For fires, including a small fire, in wildfire risk areas, see "Activities in wildfire risk areas" permit requirements (Sections 105.5.55.1 and 326.2). In other words, at a 1‐ or 2‐family dwelling, a FD permit is not required, even in a “wildfire risk area” (a term that includes the FHSZ’s), if all of the following are true: 1. It meets the parameters of a “recreational fire”: A total fuel area of 3 feet (914 mm) or less in diameter and 2 feet (610 mm) or less in height; limits the combustibles to burning no rubbish; and restricts the purpose of the fire to pleasure, religious, ceremonial, cooking, warmth or similar. 2. It is located on private property with consent of the owner. 3. It meets the requirements of 2023 LACFC Sections 307.4 through 307.5. See the attachment for those 2023 LACFC sections. The reference in Section 105.5.34 to Sections 105.5.55.1 and 326.2 are really intended merely for awareness; in many cases events in a wildfire risk area will include other activities that trigger a permit on their own, and Fire did not want one of those events to simply see the exclusion in Section 105.5.34, Item #1, and think the event was thereby exempt from needing to abide by other rules and/or triggers applicable to activities in wildfire risk areas. Furthermore, even when an activity does not trigger the need for a permit, it is not exempt from code‐compliant operations. Construction 266 2 and other events are not allowed to be substandard or unsafe simply because they are small enough not to trigger the more official and detailed oversight of a permitting process. I hope that helps to clarify. Please advise if you’d like to discuss on the phone or further. Thanks again. Respectfully, Josh Fire Fighter Specialist Joshua Costello Codes and Ordinances Unit, Fire Prevention Division County of Los Angeles Fire Department Joshua.Costello@fire.lacounty.gov 213‐503‐5468 From: Abbie Sedillos <asedillos@cityofrh.net> Sent: Monday, June 3, 2024 10:15 AM To: John Signo <jsigno@cityofrh.net>; Joshua Costello <Joshua.Costello@fire.lacounty.gov> Cc: Marion Jaikowski <Marion.JAIKOWSKI@fire.lacounty.gov>; Martin Salazar <Martin.Salazar@fire.lacounty.gov>; Frank Garrido <Frank.Garrido@fire.lacounty.gov>; Shawn Tanji <Shawn.Tanji@fire.lacounty.gov>; Mark Tyler <Mark.Tyler@fire.lacounty.gov> Subject: RE: Fire Pits CAUTION: External Email. Proceed Responsibly. Good morning Josh, I’m the Planning Administrative Clerk at the City of Rolling Hills, and I have a quick question. I know recreational fires/portable outdoor fires are exempt from open burning/operational permits given they meet the requirements you listed below, but are they also exempt from the “Activities in wildfire risk areas” permit (Section 326.2)? Thank you for your help! Abbie Abbie Sedillos Administrative Clerk/Bookkeeper City of Rolling Hills 2 Portuguese Bend Road, Rolling Hills CA 90274 Phone: (310) 377‐1521 Email: asedillos@cityofrh.net From: John Signo <jsigno@cityofrh.net> Sent: Monday, June 3, 2024 8:42 AM To: Joshua Costello <Joshua.Costello@fire.lacounty.gov> Cc: Marion Jaikowski <Marion.JAIKOWSKI@fire.lacounty.gov>; Martin Salazar <Martin.Salazar@fire.lacounty.gov>; Frank Garrido <Frank.Garrido@fire.lacounty.gov>; Shawn Tanji <Shawn.Tanji@fire.lacounty.gov>; Mark Tyler 267 3 <Mark.Tyler@fire.lacounty.gov>; Abbie Sedillos <asedillos@cityofrh.net> Subject: RE: Fire Pits Josh, Thank you for your response. It is very helpful! I think you’ve answered all our questions for now. It’s very much appreciated. John F. Signo, AICP Director of Planning and Community Services City of Rolling Hills 2 Portuguese Bend Road, Rolling Hills CA 90274 310.377.1521 jsigno@cityofrh.net From: Joshua Costello <Joshua.Costello@fire.lacounty.gov> Sent: Thursday, May 30, 2024 11:27 PM To: John Signo <jsigno@cityofrh.net> Cc: Marion Jaikowski <Marion.JAIKOWSKI@fire.lacounty.gov>; Martin Salazar <Martin.Salazar@fire.lacounty.gov>; Frank Garrido <Frank.Garrido@fire.lacounty.gov>; Shawn Tanji <Shawn.Tanji@fire.lacounty.gov>; Mark Tyler <Mark.Tyler@fire.lacounty.gov>; Joshua Costello <Joshua.Costello@fire.lacounty.gov> Subject: Re: Fire Pits EXTERNAL EMAIL - This email was sent by a person from outside your organization. Exercise caution when clicking links, opening attachments or taking further action, before validating its authenticity. Yes, it appears that all of Rolling Hills is currently in the VHFHSZ, per https://experience.arcgis.com/experience/03beab8511814e79a0e4eabf0d3e7247/, even despite the disclaimer on the webpage. Local jurisdictions can only expand upon the zones designated by the State (per statute); they cannot unilaterally downgrade them. As the State put it, as I recall, the science is the science, and they are confident in their modeling program. While it is true that the State is about to release the already overdue updated LRA (local responsibility area, as opposed to state‐lands, or SRA) maps of the FHSZ's, which has been touted as based on better data, better modeling, and ember‐ cast modeling, I believe there is no indication that the FHSZ's will be receding; rather, there is an indication that the various zones will be growing and upgrading in rating, primarily due to the factoring in of ember‐cast models. That said, the logistics of notifying each city throughout the State, and working through the legal proceedings to update that city's books, means that these updates may still be long in becoming effective. Does that answer your question? Respectfully, Josh Fire Fighter Specialist Josh Costello Codes and Ordinances Unit, Fire Prevention Division County of Los Angeles Fire Department Joshua.Costello@fire.lacounty.gov 268 4 213‐503‐5468 From: John Signo <jsigno@cityofrh.net> Sent: Thursday, May 30, 2024 8:42:28 PM To: Joshua Costello <Joshua.Costello@fire.lacounty.gov> Cc: Marion Jaikowski <Marion.JAIKOWSKI@fire.lacounty.gov>; Martin Salazar <Martin.Salazar@fire.lacounty.gov>; Frank Garrido <Frank.Garrido@fire.lacounty.gov>; Shawn Tanji <Shawn.Tanji@fire.lacounty.gov>; Mark Tyler <Mark.Tyler@fire.lacounty.gov> Subject: RE: Fire Pits CAUTION: External Email. Proceed Responsibly. Thanks, Josh. This is very helpful! Another question, it is my understanding the City of Rolling Hills is in a Very High Fire Hazard Severity Zone (VHFHSZ). Can you confirm it is still in a VHFHSZ or has it been taken out, and if so, how does that affect our city? John F. Signo, AICP Director of Planning and Community Services City of Rolling Hills 2 Portuguese Bend Road, Rolling Hills CA 90274 310.377.1521 jsigno@cityofrh.net From: Joshua Costello <Joshua.Costello@fire.lacounty.gov> Sent: Thursday, May 30, 2024 7:31 PM To: John Signo <jsigno@cityofrh.net> Cc: Marion Jaikowski <Marion.JAIKOWSKI@fire.lacounty.gov>; Martin Salazar <Martin.Salazar@fire.lacounty.gov>; Frank Garrido <Frank.Garrido@fire.lacounty.gov>; Shawn Tanji <Shawn.Tanji@fire.lacounty.gov>; Mark Tyler <Mark.Tyler@fire.lacounty.gov>; Joshua Costello <Joshua.Costello@fire.lacounty.gov> Subject: RE: Fire Pits Importance: High EXTERNAL EMAIL - This email was sent by a person from outside your organization. Exercise caution when clicking links, opening attachments or taking further action, before validating its authenticity. Good Evening, I hope to follow up with a call, but I want to provide you with our attached reference document on this issue, as well as the following summary. I’d planned to call earlier, but urgent assignments kept coming in; please accept my apology. Essentially, the answer to what I believe you are asking, is that at a 1‐ or 2‐family dwelling, a FD permit is not required, even in a “wildfire risk area” (a term that includes the FHSZ’s), if all of the following are true: 1. It meets the parameters of a “recreational fire”: A total fuel area of 3 feet (914 mm) or less in diameter and 2 feet (610 mm) or less in height; limits the combustibles to burning no rubbish; and restricts the purpose of the fire to pleasure, religious, ceremonial, cooking, warmth or similar. 2. It is located on private property with consent of the owner. 3. It meets the requirements of 2023 LACFC Sections 307.4 through 307.5. See the attachment for those 2023 LACFC sections. 269 5 If the device in question meets the following definition, then the main guidance is to defer to the manufacturer’s instructions, or 15‐foot separation from combustibles in lieu thereof. PORTABLE OUTDOOR FIREPLACE. A portable, outdoor, solid‐fuel‐burning fireplace that may be constructed of steel, concrete, clay or other noncombustible material. A portable outdoor fireplace may be open in design, or may be equipped with a small hearth opening and a short chimney or chimney opening in the top. The only scenario that I believe the attachment does not exactly address is where a gas burner is used, without combustibles other than the gas (presumably making the device, in most cases, what the Mechanical Code calls an “Outdoor Open Flame Decorative Appliance” — see 2022 CMC Section 932.0), in which case the governing code is the CA Mechanical Code and NFPA 54 (which the Mechanical Code references and reiterates in Section 932). For the application of the CMC, I’ll defer to your building official. In all cases, a person who intentionally ignites a fire, is responsible for it, and both necessary means of extinguishment shall be secured, and necessary safeguards shall be implemented, whether a permit is required or not. 307.1 General. A person shall not kindle or maintain or authorize to be kindled or maintained any open burning unless conducted and approved in accordance with Sections 307.1.1 through 307.7. 307.1.1 Prohibited open burning. Open burning shall be prohibited when atmospheric conditions or local circumstances make such fires hazardous. . . . 307.5 Attendance. Open burning, bonfires, recreational fires and use of portable outdoor fireplaces shall be constantly attended until the fire is extinguished. Not fewer than one portable fire extinguisher complying with Section 906 with a minimum 4‐A rating or other approved on‐site fire‐extinguishing equipment, such as dirt, sand, water barrel, garden hose or water truck, shall be available for immediate utilization. Regarding the Fire Code portions that LA County does not amend, they defer back to the 2022 CA Fire Code: The following link lists, in the order of California‐Fire‐Code section number, the sections to which a Los‐Angeles‐ County amendment to the 2022 edition of the California Fire Code (2022 CFC) publication exists. They are codified as Los Angeles County Code (LACC) Title 32. Together with the unamended adopted portions of the 2022 CFC, these Los‐Angeles‐County amendments comprise the 2023 Los Angeles County Fire Code (2023 LACFC): https://library.municode.com/ca/los_angeles_county/codes/code_of_ordinances?nodeId=TIT32FICO Fire Code section numbers that are not provided at the link above, revert to the unamended content of the adopted portions of the 2022 CFC publication. The unamended 2022 CFC publication can be viewed at no cost at: https://codes.iccsafe.org/content/CAFC2022P2/chapter‐1‐scope‐and‐ administration#CAFC2022P2_Pt01_Ch01_SubChI I hope this helps! Please feel free to reach out if you would like to discuss further. My regular day off is Friday. Thank you for your patience. Respectfully, Josh 270 6 Fire Fighter Specialist Joshua Costello Codes and Ordinances Unit, Fire Prevention Division County of Los Angeles Fire Department Joshua.Costello@fire.lacounty.gov 213‐503‐5468 From: Marion Jaikowski <Marion.JAIKOWSKI@fire.lacounty.gov> Sent: Wednesday, May 29, 2024 3:59 PM To: Joshua Costello <Joshua.Costello@fire.lacounty.gov> Subject: FW: Fire Pits From: John Signo <jsigno@cityofrh.net> Sent: Thursday, May 23, 2024 12:15 PM To: Marion Jaikowski <Marion.JAIKOWSKI@fire.lacounty.gov> Cc: Martin Salazar <Martin.Salazar@fire.lacounty.gov> Subject: RE: Fire Pits CAUTION: External Email. Proceed Responsibly. Hi Marion, Martin was able to send me the Fire Code amendments. Thank you! I’m following up to see if you’ve come across anything else. Rolling Hills is entirely single‐family residential (no commercial properties) and in a Very High Fire Hazard Severity Zone (VHFHSZ). According to your Code, an operational permit is needed for certain operations. Does your department issue operational permits for fire pits, bonfires, and outdoor chimneys? Can you provide any more information on review and approval of firepits, bonfires, and outdoor chimneys in a VHFHSZ? John F. Signo, AICP Director of Planning and Community Services City of Rolling Hills 2 Portuguese Bend Road, Rolling Hills CA 90274 310.377.1521 jsigno@cityofrh.net From: Martin Salazar <Martin.Salazar@fire.lacounty.gov> Sent: Thursday, April 25, 2024 1:09 PM To: John Signo <jsigno@cityofrh.net> Subject: RE: Fire Pits EXTERNAL EMAIL - This email was sent by a person from outside your organization. Exercise caution when clicking links, opening attachments or taking further action, before validating its authenticity. 271 7 John, Attached are the County of Los Angeles Fire Code Amendments. Section 307.4 of the California Fire Code talks about bonfires/recreational fires. Martin From: John Signo <jsigno@cityofrh.net> Sent: Thursday, April 25, 2024 12:37 PM To: Marion Jaikowski <Marion.JAIKOWSKI@fire.lacounty.gov>; Martin Salazar <Martin.Salazar@fire.lacounty.gov> Cc: Planning <Planning@cityofrh.net> Subject: Fire Pits CAUTION: External Email. Proceed Responsibly. Hi Marion and Martin, We’re researching requirements for fire pits and noticed Fire Code Sections 307.4 through 307.5.2 are missing, even though Section 105.5.34 refers to those sections. Do you know if these sections were removed? Do you have any handouts or material about fire pits that you can send us? John F. Signo, AICP Director of Planning and Community Services City of Rolling Hills 2 Portuguese Bend Road, Rolling Hills CA 90274 310.377.1521 jsigno@cityofrh.net 272 Bonfire & Recreational-Fire Permit Triggers 2023 LACFC Page 1 of 5 From the 2023 LACFC (New changes were made in order to try to clarify when a permit is required*): *Whether a permit is required is dependent on a number of factors: 1. Size: a. A permit is generally only required if it’s larger than a total fuel area of 3 feet in diameter and 2 feet in height. 2. But if in the WUI or a Fire Hazard Severity Zone (FHSZ), then the following also matters: a. Permission of the property owner. b. Burning no rubbish. c. For/Not for Commercial/Industrial Use. d. Compliance with Sections 307.4 and 307.5 (provided below). **The applicant is always supposed to comply with Sections 307.4 and 307.5, even if a permit is not required/necessary. But the requirements of 307.4 and 307.5 are different depending on if the fire in question is a “recreational fire” (i.e., a total fuel area of 3 feet or less in diameter and 2 feet or less in height, and not for commercial/industrial use), or a “bonfire” (bigger than a recreational fire). Both a bonfire and a recreational fire are “open burning”. LACoFD does not allow burning “rubbish”. Section 202 is amended by LAC (for the 2023 LACFC) to read as follows: BONFIRE. An outdoor fire utilized for ceremonial purposes. A bonfire is a fire that would otherwise be considered a recreational fire except that it exceeds the size restrictions of a recreational fire, those being a total fuel area of 3 feet (914 mm) or less in diameter and 2 feet (610 mm) or less in height. . . . OPEN BURNING. The burning of materials wherein products of combustion are emitted directly into the ambient air without passing through a stack or chimney from an enclosed chamber. Open burning does not include road flares, smudgepots and similar devices associated with safety or occupational uses typically considered open flames, recreational fires or use of portable outdoor fireplaces. For the purpose of this definition, a chamber shall be regarded as enclosed when, during the time combustion occurs, only apertures, ducts, stacks, flues or chimneys necessary to provide combustion air and permit the escape of exhaust gas are open. . . . PORTABLE OUTDOOR FIREPLACE. A portable, outdoor, solid-fuel-burning fireplace that may be constructed of steel, concrete, clay or other noncombustible material. A portable outdoor fireplace may be open in design, or may be equipped with a small hearth opening and a short chimney or chimney opening in the top. . . . 273 Bonfire & Recreational-Fire Permit Triggers 2023 LACFC Page 2 of 5 RECREATIONAL FIRE. An outdoor fire burning materials other than rubbish where the fuel being burned is not contained in an incinerator, outdoor fireplace, portable outdoor fireplace, barbeque grill or barbeque pit and has a total fuel area of 3 feet (914 mm) or less in diameter and 2 feet (610 mm) or less in height for pleasure, religious, ceremonial, cooking, warmth or similar purposes. Section 105.5.34 is amended by LAC to read as follows: 105.5.34 Open burning. An operational permit is required for the kindling or maintaining of an open fire or a fire on any public street, alley, road, or other public or private ground. Instructions and stipulations of the permit shall be complied with. Exception: RA recreational fires is subject to the provisions of this code, but is exempt from need for a permit provided that all of the following apply: 1. The fire is not located in a wildfire risk area or in a very high, high, or moderate fire hazard severity zone, except where located on private property with consent of the owner; meeting the size requirements in #2, below; and meeting the requirements of Sections 307.4 through 307.5. 2. The fire conforms to the definition of a "recreational fire", which limits the size of the fire to a total fuel area of 3 feet (914 mm) or less in diameter and 2 feet (610 mm) or less in height; limits the combustibles to burning no rubbish; and restricts the purpose of the fire to pleasure, religious, ceremonial, cooking, warmth or similar. For restrictions and requirements for each type of open burning, including but not limited to bonfires and recreational fires, see Section 307. For fires, including a small fire, in wildfire risk areas, see "Activities in wildfire risk areas" permit requirements (Sections 105.5.55.1 and 326.2). Sections 105.5.55.1, 105.5.55.10, and 326.2 are added by LAC to read as follows: 105.5.55.1 Activities in wildfire risk areas. An operational permit is required for any of the activities as described in Section 326.2 of this code. . . . 105.5.55.10 Recreational fire. See "Open burning" permit (Sections 105.5.34 and 307), and "Activities in wildfire risk areas" permit (Sections 105.5.55.1 and 326.2) requirements. . . . 326.2 Permit required. Permits shall be required as set forth in Sections 105.5 and 105.6. 274 Bonfire & Recreational-Fire Permit Triggers 2023 LACFC Page 3 of 5 No person shall establish or conduct any of the following or similar activities in a wildfire risk area without first securing a permit: 1. Recreational activities including, but not limited to, rifle ranges, carnivals and fairs, public assembly events, fireworks, overnight camping, and open burning. 2. Temporary or permanent activities including, but not limited to, stands for cooking or other activities which could provide a source of ignition. Section 307 is amended by LAC to read as follows: SECTION 307 OPEN BURNING, RECREATIONAL FIRES AND PORTABLE OUTDOOR FIREPLACES 307.1 General. A person shall not kindle or maintain or authorize to be kindled or maintained any open burning unless conducted and approved in accordance with Sections 307.1.1 through 307.7. 307.1.1 Prohibited open burning. Open burning shall be prohibited when atmospheric conditions or local circumstances make such fires hazardous. Exception: Prescribed burning for the purpose of reducing the impact of wildland fire when authorized by the fire code official. 307.2 Permit required. A permit shall be obtained from the fire code official in accordance with Section 105.5 prior to kindling a fire for recognized silvicultural or range or wildlife management practices, prevention or control of disease or pests, or a bonfire. Application for such approval shall only be presented by and permits issued to the owner of the land on which the fire is to be kindled. A permit shall be obtained from the fire code official in accordance with Section 105.5 prior to kindling a recreational fire where the fuel is not contained as described in Chapter 3 nor limited as defined in Section 202, RECREATIONAL FIRE, to having a total fuel area of 3 feet (914 mm) or less in diameter and 2 feet (610 mm) or less in height, for pleasure, religious, ceremonial, cooking, warmth or similar purposes. 307.2.1 Authorization. Where required by State or local law or regulations, open burning shall only be permitted with prior approval from the fire code official, a United States Forest Service Officer having jurisdiction, or the State or local air and water quality management authority, provided that all conditions specified in the authorization are followed. 307.3 Extinguishment authority. Where open burning creates or adds to a hazardous situation, or a required permit for open burning has not been obtained, the fire code official is authorized to order the extinguishment of the open burning operation. 275 Bonfire & Recreational-Fire Permit Triggers 2023 LACFC Page 4 of 5 307.4 Location. The location for open burning shall be not less than 50 feet (15 240 mm) from any structure, and provisions shall be made to prevent the fire from spreading to within 50 feet (15 240 mm) of any structure. Exceptions: 1. Fires in approved containers that are not less than 15 feet (4572 mm) from a structure. 2. The minimum required distance from a structure shall be 25 feet (7620 mm) where the pile size is 3 feet (914 mm) or less in diameter and 2 feet (610 mm) or less in height. 307.4.1 Bonfires. A bonfire shall not be conducted within 50 feet (15 240 mm) of a structure or combustible material unless the fire is contained in a barbecue pit. Conditions that could cause a fire to spread within 50 feet (15 240 mm) of a structure shall be eliminated prior to ignition. 307.4.2 Recreational fires. Recreational fires shall not be conducted within 25 feet (7620 mm) of a structure or combustible material. Conditions that could cause a fire to spread within 25 feet (7620 mm) of a structure shall be eliminated prior to ignition. 307.4.3 Portable outdoor fireplaces. Portable outdoor fireplaces shall be used in accordance with the manufacturer’s instructions and shall not be operated within 15 feet (3048 mm) of a structure or combustible material. Exception: Portable outdoor fireplaces used at one- and two-family dwellings. 307.5 Attendance. Open burning, bonfires, recreational fires and use of portable outdoor fireplaces shall be constantly attended until the fire is extinguished. Not fewer than one portable fire extinguisher complying with Section 906 with a minimum 4-A rating or other approved on-site fire-extinguishing equipment, such as dirt, sand, water barrel, garden hose or water truck, shall be available for immediate utilization. 307.6 Open fires. Permits shall be required as set forth in Section 105.6. A person shall not build, light, maintain, or cause or permit to be built, lighted, or maintained, any open outdoor fire or use or cause or permit to be used, any open outdoor fire for any purpose except: 1. When such fire is set or permission for such fire is given in the performance of the official duty of any public officer, and the fire, in the opinion of such public officer, is necessary for: (i) The purpose of the prevention of a fire hazard which cannot be abated by any other means; or (ii) The instruction of public employees in the methods of fighting fire. 2. When such fire is set pursuant to permit on property used for industrial or institutional purposes for the purpose of instruction of employees in methods of fighting fire. 3. When such fire is set in the course of any agricultural operation in the growing of crops or raising of fowl or animals. 276 Bonfire & Recreational-Fire Permit Triggers 2023 LACFC Page 5 of 5 4. On a public beach area owned, managed, or controlled by the County, otherwise permitted by this code. 5. In a County-owned park or recreation camp as otherwise permitted by this code. 6. Bonfires permitted by the fire code official. 7. For cooking, recreational, or ceremonial fires on private property with a maximum fuel area of 3 feet (914 mm) or less in diameter and 2 feet (610 mm) or less in height, in locations outside of wildfire risk areas. 307.7 Designated open fire areas. The fire code official is authorized to designate places on private property, with the permission of the owner thereof, or upon any public road, or within any public park, or upon any public land, where open fires may be built. The fire code official may place or cause to be placed uniform signs or posters on or at such premises indicating the place or limits where such fires may be built and maintained without further permission; however, it shall be unlawful to leave, or cause or permit to be left unattended, any fire burning in such place. 277 Agenda Item No.: 16.A Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION A CLOSED SESSION WILL BE HELD, PURSUANT TO GOVERNMENT CODE § 54956.9(C) AND (D)(4) REGARDING THE DECISION OF WHETHER TO INITIATE LITIGATION (1 CASE) DATE:June 10, 2024 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: None. ATTACHMENTS: 278 Agenda Item No.: 16.B Mtg. Date: 06/10/2024 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: CONFERENCE WITH LEGAL COUNSEL: THREATENED LITIGATION GOVERNMENT CODE SECTION 54956.9(D)(2) AND (E)(3) THE CITY COUNCIL FINDS, BASED ON ADVICE FROM LEGAL COUNSEL, THAT DISCUSSION IN OPEN SESSION WILL PREJUDICE THE POSITION OF THE CITY IN THE LITIGATION. NUMBER OF POTENTIAL CASES: (7) (GOVERNMENT CLAIMS ACT FORM SUBMITTED BY VARIOUS PROPERTY OWNERS IN RANCHO PALOS VERDES AGAINST THE CITY OF ROLLING HILLS ALLEGING DAMAGE TO PROPERTY) DATE:June 10, 2024 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: None. ATTACHMENTS: 279