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CL_AGN_250224_CC_AgendaPacket_F1. CALL TO ORDER 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE 4. PRESENTATIONS/PROCLAMATIONS/ANNOUNCEMENTS 4.A.RECEIVE AN FILE A PRESENTATION ON USE OF PROPANE TANKS WITHIN CITY LIMITS FROM LOS ANGELES COUNTY FIRE DEPARTMENT RECOMMENDATION: Receive and file. 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 2 PORTUGUESE BEND ROAD ROLLING HILLS, CA 90274 (310) 377-1521 AGENDA Regular City Council Meeting CITY COUNCIL Monday, February 24, 2025 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. 1385 Next Ordinance No. 386 1 not been pulled by Councilmembers for discussion. 8.A.APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF FEBRUARY 24, 2025 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: FEBRUARY 10, 2025 REGULAR MEETING RECOMMENDATION: Approve as presented. 8.D.PAYMENT OF BILLS RECOMMENDATION: Approve as presented. 8.E.APPROVE SECOND AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH 4LEAF, INC. FOR A ONE-YEAR EXTENSION FOR CODE ENFORCEMENT SERVICES RECOMMENDATION: Approve as presented. 8.F.CONSIDER AND APPROVE THE PLANNED EXPENDITURES FOR FISCAL YEAR 2025-2026 SAFE, CLEAN WATER (MEASURE W) MUNICIPAL PROGRAM FUNDS FOR SUBMISSION TO LOS ANGELES COUNTY FLOOD CONTROL DISTRICT RECOMMENDATION: Approve as presented. 9. EXCLUDED CONSENT CALENDAR ITEMS 10. COMMISSION ITEMS 10.A.RECEIVE AND FILE ZONING CASE NO. 24-027: VARIANCE FOR RESIDENTIAL ADDITION TO ENCROACH INTO THE SETBACK LOCATED AT 15 FLYING MANE ROAD, ROLLING HILLS, CA 90274, AND FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (LOT 54-SF) (MOLLURA & ROGERS) RECOMMENDATION: Receive and file. CL_AGN_250224_CC_AffidavitofPosting.pdf CL_MIN_250210_CC_F.pdf CL_AGN_250224_CC_PaymentOfBills_E.pdf CA_AGR_250224_4Leaf_Amendment02_F.pdf CA_AGR_240226_PSA_Amendment01_4LEAF_signed.pdf CA_AGR_230123_4Leaf_OnCall_CE_ContractServices_E.pdf ATTACHMENT A PW_STW_250224_SCW_Budget_FY25-26.pdf Attachment 1 - PL_ADR_250102_15FlyingManeRd_ZC24-027_RadiusMap_.pdf Attachment 2 - PL_ADR_250116_15FyingManeRd_ZC24-027_DevelopmentTable.pdf 2 11. PUBLIC HEARINGS 12. OLD BUSINESS 13. NEW BUSINESS 13.A.APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH JOHN L. HUNTER AND ASSOCIATES FOR ANNUAL TMDL TRASH MONITORING AND REPORTING AS REQUIRED BY THE LOS ANGELES REGIONAL WATER QUALITY CONTROL BOARD RECOMMENDATION: Approve as presented. 13.B.FISCAL YEAR 2024/25 MID-YEAR REPORT FOR THE SIX MONTHS ENDED DECEMBER 31, 2024 RECOMMENDATION: Receive and file the mid-year report for the six months ended December 31, 2024. 13.C.CONSIDERATION OF WAIVER OF DIRECT ASSESSMENTS FOR REFUSE RECOMMENDATION: Provide direction to staff regarding the waiver of direct assessments for refuse services for any properties that receive property tax relief from the County of Los Angeles Assessor's Office. 14. MATTERS FROM THE CITY COUNCIL 14.A.CONSIDERATION OF ESTABLISHING POLICIES TO PREVENT FRAUDULENT ACTIVITY (MAYOR PRO TEMÂ DIERINGER) RECOMMENDATION: Direct Staff on the preferred approach to strengthening the City of Rolling Hills' financial policies and procedures. 14.B.RECEIVE AND FILE A PRESENTATION ON THE STATUS OF EMERGENCY GENERATOR USE WITHIN CITY LIMITS, DUE TO THE RECENT UTILITY SHUT OFFS RECOMMENDATION: Receive and file. Provide direction to staff. Attachment 3 - 250116_15FyingManeRoad_ZC24-027_Geographic Information System GIS Vicinity Map_1.21.25_P.pdf Attachment 4 - PL_ADR_15FlyingManeRd_ZC24-027_250116_ProximityMap.pdf Attachment 5 - 2025-01_PC_Resolution_15FlyingManeRd_ZC24-027_Rogers_F_A_E.pdf Attachment 6 - ArchitecturalPlans.pdf Attachment A - CA_AGR_250224_JLHA_F.pdf Attachment B - CA_AGR_250224_JLHA_Trash_TMDL_Proposal.pdf Attachment A - CL_AGN_250224_CC_NarrativeAnalysis.pdf Attachment B - CL_AGN_250224_CC_GF_BudgetSummary.pdf Attachment C - CL_AGN_250224_CC_GF_Revenues.pdf Attachment D - CL_AGN_250224_CC_GF_Expenditures.pdf Attachment E - CL_AGN_250224_CC_RestrictedFunds.pdf Attachment F - CL_AGN_250224_CC_GF_BudgetAmendments.pdf Attachment A - RH FN_Investment Policy.pdf Attachment B - RH FN_POL_221010_AdminProcedures_BudgetDebtPolicies.pdf Attachment C - FN_Agency Samples.pdf Attachment A - CL_AGN_250108_CC_NoiseLevels&Generators.pdf 3 14.C.RECEIVE AND FILE A SUMMARY REPORT ON PREVIOUS FIRE FUEL COMMITTEE DISCUSSION, RECOMMENDATIONS AND/OR ACTIONS (COUNCILMEMBER MIRSCH) RECOMMENDATION: Receive and file. 15. MATTERS FROM STAFF 15.A.APPROVE AND AUTHORIZE THE CITY MANAGER TO SIGN A MUTUAL AID PERSONNEL COOPERATION AGREEMENT BETWEEN THE CITY OF ROLLING HILLS AND THE CITY OF MALIBU FOR TEMPORARY PERSONNEL ASSISTANCE RECOMMENDATION: Authorize the City Manager to execute a Mutual Aid Personnel Cooperation Agreement between the City of Rolling Hills and the City of Malibu. 16. RECESS TO CLOSED SESSION 16.A.PUBLIC EMPLOYEE PERFORMANCE EVALUATION PURSUANT TO GOVERNMENT CODE SECTION 54957 (B)(1) TITLE: CITY MANAGER RECOMMENDATION: None. 16.B.EXISTING LITIGATION - GOVERNMENT CODE SECTION 54956.9(D)(1)THE CITY FINDS, BASED ON ADVICE FROM LEGAL COUNSEL, THAT DISCUSSION IN OPEN SESSION WILL PREJUDICE THE POSITION OF THE CITY IN THE LITIGATION. (1 CASE) a. NAME OF CASE: CONNIE ANDERSEN, ET AL. V. CALIFORNIA WATER COMPANY, ET AL. (SEAVIEW CASE) CASE NO.: 24STCV20953 RECOMMENDATION: None. 16.C.CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION GOVERNMENT CODE SECTION 54956.9 (TWO CASES) CPUC COMPLAINTS AGAINST SOUTHERN CALIFORNIA EDISON AND SOCAL GAS RECOMMENDATION: None. 16.D.CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION GOVERNMENT CODE SECTION 54956.9(D)(1) THE CITY FINDS, BASED ON ADVICE FROM LEGAL COUNSEL, THAT DISCUSSION IN OPEN SESSION WILL PREJUDICE THE POSITION OF THE CITY IN THE LITIGATION. (1 CASE) RECOMMENDATION: None. 17. RECONVENE TO OPEN SESSION 18. ADJOURNMENT Next regular meeting: Monday, March 10, 2025 at 7:00 p.m. in the City Council Chamber, Rolling Hills City Hall, 2 Portuguese Bend Road, Rolling Hills, California, 90274. Attachment A - CA_AGR_250224_Malibu Mutal Aid Agreement - Rolling Hills.pdf Notice: Public Comment is welcome on any item prior to City Council action on the item. 4 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.: 4.A Mtg. Date: 02/24/2025 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 AN FILE A PRESENTATION ON USE OF PROPANE TANKS WITHIN CITY LIMITS FROM LOS ANGELES COUNTY FIRE DEPARTMENT DATE:February 24, 2025 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Receive and file. ATTACHMENTS: 6 Agenda Item No.: 8.A Mtg. Date: 02/24/2025 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 FEBRUARY 24, 2025 DATE:February 24, 2025 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Approve. ATTACHMENTS: CL_AGN_250224_CC_AffidavitofPosting.pdf 7 Administrative Report 8.A., File # 2653 Meeting Date: 2/24/2025 To: MAYOR & CITY COUNCIL From: Christian Horvath, City Clerk TITLE APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL ADJOURNED REGULAR MEETING OF FEBRUARY 24, 2025 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 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 FEBRUARY 24, 2025 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: February 21 , 202 5 8 Agenda Item No.: 8.B Mtg. Date: 02/24/2025 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:February 24, 2025 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Approve. ATTACHMENTS: 9 Agenda Item No.: 8.C Mtg. Date: 02/24/2025 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: FEBRUARY 10, 2025 REGULAR MEETING DATE:February 24, 2025 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Approve as presented. ATTACHMENTS: CL_MIN_250210_CC_F.pdf 10 MINUTES – CITY COUNCIL MEETING Monday, February 10, 2025 Page 1 Minutes Rolling Hills City Council Monday, February 10, 202 5 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 Pro Tem Dieringer presiding. 2. ROLL CALL Councilmembers Present: Mirsch, Wilson, Black, Mayor Pro Tem Dieringer Councilmembers Absent: Mayor Pieper Staff Present: Karina Bañales, City Manager Christian Horvath, City Clerk / Executive Assistant to the City Manager Samantha Crew, Management Analyst Pat Donegan, City Attorney 3. PLEDGE OF ALLEGIANCE – Councilmember Mirsch 4. PRESENTATIONS / PROCLAMATIONS / ANNOUNCEMENTS – NONE 5. APPROVE ORDER OF THE AGENDA Motion by Councilmember WIlson , seconded by Councilmember Mirsch to approve the order of the agenda. Motion carried unanimously with the following vote: AYES: Mirsch, Wilson, Black, Mayor Pro Tem Dieringer, NOES: None ABSENT: Mayor Pieper 6. BLUE FOLDER ITEMS (SUPPLEMENTAL) – NONE 7. PUBLIC COMMENT ON NON-AGENDA ITEMS – NONE 8. CONSENT CALENDAR 8.A. APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF FEBRUARY 10, 2025 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: JANUARY 27, 2025 REGULAR MEETING 8.D. PAYMENT OF BILLS Motion by Councilmember Wilson, seconded by Councilmember Black to approve the Consent Calendar. Motion carried unanimously with the following vote: 11 MINUTES – CITY COUNCIL MEETING Monday, February 10, 2025 Page 2 AYES: Mirsch, Wilson, Black, Mayor Pro Tem Dieringer, NOES: None ABSENT: Mayor Pieper 9. EXCLUDED CONSENT CALENDAR ITEMS – NONE 10. COMMISSION ITEMS – NONE 11. PUBLIC HEARINGS – NONE 12. OLD BUSINESS – NONE 13. NEW BUSINESS 13.A. APPROVE SECOND AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH BENNETT LANDSCAPE FOR A ONE-YEAR EXTENSION PROVIDING LANDSCAPING SERVICES ON THE CITY HALL CAMPUS Presentation by City Clerk / Executive Assistant to the City Manager Horvath Motion by Councilmember Mirsch, seconded by Councilmember Wilson to approve as presented with minor corrections to scope of service as noted by staff. Motion carried unanimously with the following vote: AYES: Mirsch, Wilson, Black, Mayor Pro Tem Dieringer, NOES: None ABSENT: Mayor Pieper 13.B. CONSIDER AND APPROVE A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITIES OF PALOS VERDES ESTATES, RANCHO PALOS VERDES, ROLLING HILLS, AND ROLLING HILLS ESTATES FOR THE PURPOSE OF COST SHARING IN THE DEVELOPMENT OF A MULTI-JURISDICTIONAL HAZARD MITIGATION PLAN Presentation by Management Analyst Crew Motion by Councilmember Wilson, seconded by Councilmember Mirsch to approve as presented and direct staff to discuss cost-sharing percentage concerns with the other peninsula cities for future potential shared items. Motion carried unanimously with the following vote: AYES: Mirsch, Wilson, Black, Mayor Pro Tem Dieringer, NOES: None ABSENT: Mayor Pieper 15. MATTERS FROM STAFF 15.A. RECEIVE AND FILE A PUBLIC SAFETY AND EMERGENCY PREPAREDNESS UPDATE Presentation by Management Analyst Crew Motion by Councilmember Black, seconded by Councilmember Mirsch to receive and file. Motion carried unanimously with the following vote: AYES: Mirsch, Wilson, Black, Mayor Pro Tem Dieringer, NOES: None 12 MINUTES – CITY COUNCIL MEETING Monday, February 10, 2025 Page 3 ABSENT: Mayor Pieper 14. MATTERS FROM THE CITY COUNCIL Councilmember Mirsch asked about additional microphones for the dais and commented on ensuring the public can adequately hear conversations from the dais when seated in the audience. Mayor Pro Tem Dieringer discussed concerns about coyote sightings during the daytime, existing city protocols with LA County Weights and Measures and their ability to respond in a timely manner. 16. RECESS TO CLOSED SESSION – 8:15 P.M. 16.A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION PURSUANT TO GOVERNMENT CODE SECTION 54957 (B)(1) TITLE: CITY MANAGER 16.B. EXISTING LITIGATION - GOVERNMENT CODE SECTION 54956.9(D)(1) THE CITY FINDS, BASED ON ADVICE FROM LEGAL COUNSEL, THAT DISCUSSION IN OPEN SESSION WILL PREJUDICE THE POSITION OF THE CITY IN THE LITIGATION. (1 CASE) a. NAME OF CASE: CONNIE ANDERSEN, ET AL. V. CALIFORNIA WATER COMPANY, ET AL. (SEAVIEW CASE) CASE NO.: 24STCV20953 16.C. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION GOVERNMENT CODE SECTION 54956.9 (2 CASES) CPUC COMPLAINTS AGAINST SOTHERN CALIFORNIA EDISON AND SOCAL GAS 16.D. CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION GOVERNMENT CODE SECTION 54956.9(D)(1) THE CITY FINDS, BASED ON ADVICE FROM LEGAL COUNSEL, THAT DISCUSSION IN OPEN SESSION WILL PREJUDICE THE POSITION OF THE CITY IN THE LITIGATION. (1 CASE) 17. RECONVENE TO OPEN SESSION – 9:11 P.M. 18. ADJOURNMENT : 9:11 P.M. The meeting was adjourned at 9:11 p.m. on February 10, 2025. The next regular meeting of the City Council is scheduled to be held on Monday, February 24, 2025 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, ____________________________________ Jeff Pieper, Mayor 13 Agenda Item No.: 8.D Mtg. Date: 02/24/2025 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:February 24, 2025 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: Approve as presented. ATTACHMENTS: CL_AGN_250224_CC_PaymentOfBills_E.pdf 14 15 16 Agenda Item No.: 8.E Mtg. Date: 02/24/2025 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:KARINA BAÑALES, CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: APPROVE SECOND AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH 4LEAF, INC. FOR A ONE-YEAR EXTENSION FOR CODE ENFORCEMENT SERVICES DATE:February 24, 2025 BACKGROUND: On January 9, 2023, the City Council considered an item to execute a Professional Services Agreement with 4LEAF, Inc. (4LEAF) for code enforcement services. Mr. Pete Roque, Director of Code Enforcement, was in attendance to represent 4LEAF. After discussing the matter, the Council directed staff to work with 4LEAF for a better rate than the $105 per hour proposed and to focus on identifying dead trees and vegetation. On January 23, 2023, the City Council considered a revised proposal by 4LEAF at a rate of $95 per hour. The $10 per hour difference compared to the original amount equated to a $8,320 savings over the course of a year, considering a schedule of 16 hours per week, 52 weeks per year. This amounts to a not-to-exceed amount of $79,040 for a one-year term. Ultimately, the City Council voted to bring the not-to-exceed amount down by $20,000, or $59,040, resulting in a reduced schedule of 12 hours per week. 4LEAF agreed to the amendment, and the contract was executed. 4LEAF has been providing code enforcement services for the City since January 31, 2023. The Code Enforcement Division is continuing to use iWorQ to generate quarterly updates and track code enforcement and fire fuel abatement cases. DISCUSSION: The initial contract with 4LEAF was for one year but included the option to extend for two additional one-year terms, provided the City gives notice. Staff has notified 4LEAF of the City's desire to continue services, and they have agreed to the extension. Throughout the extension period, staff will continue to evaluate the services provided by 4LEAF. 17 At the conclusion of this period, staff will return to the City Council with recommendations for future options, which may include bringing the position in-house or issuing a Request for Proposals (RFP). If the City Council decides to pursue a different direction before the expiration of the second one-year term, Section 6.0 of the contract allows either the City Manager or the Consultant to terminate the agreement without cause. This can be done by providing the other party with ten (10) days' written notice of the termination and its effective date. Staff requests City Council approval to memorialize the second and final one-year extension with 4LEAF. This extension ensures the continuation of services while giving staff time to assess future options and determine the best course of action. FISCAL IMPACT: There are sufficient funds budgeted for FY23/24 in the General Fund to cover the continued code enforcement services. To date, the city has spent $36,242.50 on 4LEAF since inception. RECOMMENDATION: Approve a second amendment to the Agreement with 4LEAF, Inc. for code enforcement services. ATTACHMENTS: CA_AGR_250224_4Leaf_Amendment02_F.pdf CA_AGR_240226_PSA_Amendment01_4LEAF_signed.pdf CA_AGR_230123_4Leaf_OnCall_CE_ContractServices_E.pdf 18 Second Amendment to Code Enforcement Services This Second Amendment to the Agreement for Code Enforcement Services (“First Amendment”) is made and entered into this 24th day of February 2025 by and between the City of Rolling Hills, a municipal corporation (“City”), and 4Leaf, Inc. a California Corporation (“Consultant”). BACKGROUND A. On January 23, 2023, the City and Consultant entered into an Agreement for Consultant to provide code enforcement services in the City (“Agreement”). B. The City and Consultant subsequently entered into a First Amendment to amend the Agreement to extend the term of the Agreement to January 22, 2025 (“First Amendment”). C. The City and Consultant now desire to amend the Agreement again to extend the term of the Agreement to January 22, 2026 (“Second Amendment”). D. The Consultant warrants to the City that it has the expertise, experience, and qualifications to perform the services more fully described in the Agreement. NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth below, the City and Consultant agree as follows: 1. Paragraph 2.0 (Term of Agreement) of the Agreement is hereby amended to read as follows: “2.0. Term of Agreement. The term of this Agreement shall commence on January 23, 2024 and terminate on January 22, 2026 unless extended by mutual agreement of the parties.” 2. All other terms and conditions of the Agreement not amended by this First Amendment remain in full force and effect. (Signatures on following page) 19 CITY City of Rolling Hills By: Karina Bañales, City Manager Attest: By: Christian Horvath, City Clerk CONSULTANT 4Leaf, Inc. By: Kevin Duggan, President 20 21 22 23 24 25 26 27 28 29 30 31 32 Agenda Item No.: 8.F Mtg. Date: 02/24/2025 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:SAMANTHA CREW, MANAGEMENT ANALYST THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: CONSIDER AND APPROVE THE PLANNED EXPENDITURES FOR FISCAL YEAR 2025-2026 SAFE, CLEAN WATER (MEASURE W) MUNICIPAL PROGRAM FUNDS FOR SUBMISSION TO LOS ANGELES COUNTY FLOOD CONTROL DISTRICT DATE:February 24, 2025 BACKGROUND: In 2018, Los Angeles County voters approved Measure W, a tax measure that helps improve water quality and build up the county’s water self-sufficiency. Funding is provided through a parcel tax of 2.5 cents per square foot of impermeable land area (building, concrete, etc.) in the district. The measure provides cities, watershed areas, and Los Angeles County with the funds to capture, treat, and recycle storm water through the Safe, Clean Water Regional and Municipal Programs. The LA County Flood Control District administers the program, distributes funds, provides staff support, and oversees capacity-building programs. Cities receive funding through the Municipal Program proportional to the revenues generated within their boundaries. The funds provide local agencies with the opportunity to identify programs that will best address stormwater and urban runoff. Measure W funding can be used for eligible activities such as project development, design, construction, effectiveness monitoring, operations, maintenance, and other programs and studies related to protecting and improving water quality in lakes, rivers, and the ocean. To receive funds, cities must submit an expenditure plan to the Los Angeles County Flood Control District annually for their Safe Clean Water Municipal Program funds. DISCUSSION: It is projected that the City will receive approximately $100,000 in Municipal Safe Clean Water Program Funds (Measure W) in December 2025 for Fiscal Year 2025/2026. The City must spend at least 70% of its Municipal Program Funds on eligible expenses related to new projects or programs. Up to 30% of a City’s Municipal Program Funds may be used to pay for eligible costs and expenses related to the continuation of programs. Program funds are 33 allocated as described in the attached expenditure budget spreadsheet (Attachment A). The planned expenditures for the FY2025-2026 Safe Clean Water Municipal Program spreadsheet shows the proposed budget for the expenditure of Measure W funds. The assumptions made in these estimates are explained in the “Source” and “Explanation” columns for each item, along with the basis for categorization as ongoing effort (<30% of expenditures) or new effort (>70% of expenditures). The Peninsula Coordinated Integrated Monitoring Program (CIMP) and Harbor Toxins TMDL monitoring are the largest expenditure in the plan with an estimated cost of $70,000. The budget also includes a 10% safety factor. The Municipal Safe Clean Water Funds Tracking page shows the estimated carryover amount from prior years, in the amount of $18,935.40. This figure is tentative since expenditures for FY24-25 are not yet final until June 30 or later. FISCAL IMPACT: The City will receive approximately $100,000 in Municipal Program Funds for Fiscal Year 2025-2026. Expenditures, as outlined in Attachment A, are $98,400.00. RECOMMENDATION: Approve as presented. ATTACHMENTS: ATTACHMENT A PW_STW_250224_SCW_Budget_FY25-26.pdf 34 Item Description Estimated cost for Line Item Cost to be Recovered via Measure W for Ongoing Programs - up to 30% of planned expenditures Cost to be Recovered via Measure W for New Projects or Programs - at least 70% of planned expenditures Source Explanation 1a Peninsula Coordinated Integrated Monitoring Program (CIMP) and Harbor Toxics TMDL Monitoring 70,000$ 30,000.00$ City's maximum cost under CIMP MOU Amendment 2 less 10% in new costs shown in Item 1b plus 58% of City's maximum cost under new cost-share for Harbor Toxics TMDL assuming 5 industrial facilities participate - all rounded up to nearest $1K. CIMP monitoring and Harbor Toxins TMDL monitoring are ongoing efforts implemented prior to adoption of Measure W by the voters in November 2018. Ongoing monitoring costs are therefore limited to a maximum of 30% of the City's Safe Clean Water Expenditures in a given fiscal year. Allowable expenditure is calculated by applying the 30:70 (ongoing vs new effort) ratio against total expenditures in the 70% new effort column. 1b CIMP Implementation of new 2021 MS4 Permit Requirements and Harbor Toxics monitoring increased cost due to TMDL revision 14,000$ 14,000.00$ Allocation of new effort for CIMP from new requirements in 2021 Regional Stormwater Permit and revised Harbor Toxics TMDL. Assumed 10% of City's CIMP costs and 42% of City's maximum cost under new cost-share for Harbor Toxics assuming 5 industrial facilities participate. Rounded up to nearest $1K. New requirements in 2021 Stormwater Permit and revised Harbor Toxics TMDL can be considered new effort in the 70% category since they were not required prior to November 2018. 2 Sepulveda Canyon Monitoring Study 25,000$ 25,000.00$ Estimated based on NV5 FY24-25 YTD expenditures plus additional funding request Sepulveda Canyon monitoring is newly required by LA Water Board as a condition of City joining the Peninsula WMP via 85%, 24-hr runoff retention deemed compliance. Since this is a new effort not required prior to November 2018, it is in the 70% new effort category. 3 Enhanced Sediment Source Control & Brush Clearance Enforcement 6,000$ 6,000.00$ 10% of contract code enforcement cost for additional oversight of construction sites and brush clearance ordinance - same as allocated for FY23-24 New effort implemented after November 2018 to address storm-borne sediment TMDL pollutants associated with insufficiently controlled construction sites and brush clearance to prevent wildfires and associated TMDL toxic pollutants. 4 SCW Municipal Program Planning and Reporting 10,000$ 10,000.00$ McGowan Task 2.2 - Consultant assistance with SCW planning and reporting Eligible in the 70% category as a new effort since it is required by the SCW program. 5 Watershed Management Program Adaptive Management & Progress Reporting 6,000.00$ 6,000.00$ McGowan estimate for Task 8.1. & 8.3 City's participation in watershed progress reporting and watershed management program as a result of joining the Peninsula EWMP is a new effort since November 2018 implemented to comply with the 2021 Stormwater Permit and joining the WMP. 6 Development & Implementation of Community Outreach/Engagement 7,400.00$ 7,400.00$ McGowan estimate for Task 8.2 and 2.1 plus Other Direct Costs invoiced by McGowan for website hosting by SBCCOG and graphic design services. Effort to develop new outreach materials and methods and tracking of metrics on outreach and engagement as required by 2021 Stormwater Permit. 30,000.00$ 68,400.00$ $ 98,400.00 Check: total planned expenditures are less than estimated total SCW Municipal funds available to spend as shown below. PLANNED EXPENDITURES FOR FY2025-2026 SAFE CLEAN WATER MUNICIPAL PROGRAM (Measure W) Expenditures 35 Item Description Estimated cost for Line Item Cost to be Recovered via Measure W for Ongoing Programs - up to 30% of planned expenditures Cost to be Recovered via Measure W for New Projects or Programs - at least 70% of planned expenditures Source Explanation PLANNED EXPENDITURES FOR FY2025-2026 SAFE CLEAN WATER MUNICIPAL PROGRAM (Measure W) $ 18,935.40 Uncertain depending on how next 5 months expenditures come in $ 100,000.00 Note that SCW website references prior fiscal year because it is the year they collect the taxes even though not disbursed to City until midway through the following year. $ 107,041.86 Total SCW Municipal Funds Available to Spend less 10% for safety factor Estimated carryover of unspent funds from previous years Measure W estimated disbursement to be received in December 2025 from LACFCD 36 Agenda Item No.: 10.A Mtg. Date: 02/24/2025 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:STEPHANIE GRANT, ASSISTANT PLANNER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: RECEIVE AND FILE ZONING CASE NO. 24-027: VARIANCE FOR RESIDENTIAL ADDITION TO ENCROACH INTO THE SETBACK LOCATED AT 15 FLYING MANE ROAD, ROLLING HILLS, CA 90274, AND FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (LOT 54-SF) (MOLLURA & ROGERS) DATE:February 24, 2025 BACKGROUND: On January 21, 2025, the Planning Commission held a field trip at the subject property, with five commissioners present. However, two commissioners had to recuse themselves due to proximity. The adjacent neighbor to the east (resident at 51 Crest Road East/recused Commissioner) expressed concerns about privacy from the proposed addition to her bedroom and requested landscape screening as a buffer. This landscape screening condition would be added to the draft resolution. Three other members of the public attended the field trip but did not raise any issues with the project. The three commissioners reviewed the project during the field trip and then proceeded to the evening meeting. During the evening public hearing, staff presented the project. No members of the public attended, aside from the applicants. After review and discussion, the Commission voted unanimously (3-0) to approve the project and adopted Resolution number 2025-01 (Attachment 5). A total of four commissioners were present, but one had to recuse themselves and one was absent. Zoning and Land Size The property is in accordance with Section 17.24.045 of the Rolling Hills Municipal Code (RHMC) Dwelling units non-conforming due to smaller lots, the property has a lot area that is less than 1.25 acres. The property is zoned RAS-1 and has a net lot area of 41,603 square 37 feet (0.95 acres). The RHMC Section 17.16.060(A) indicates that properties less than an acre are to be considered an acre (43,560 square feet). The lot is developed with a 2,427 square- foot single-family residence, 540 square-foot attached garage, 79 square foot attached covered porches, 117 SF trellis, and 442 square foot stable. The house was built in 1954. There are two existing building pads on site. The existing residence, garage, and proposed project area are located on the upper pad (9,766 square feet), and the secondary building pad (2,430 square feet) is located on the rear approximately 22 feet below the first building pad. The 442-square-foot stable and corral are located on the secondary pad. The existing topography of the project site slopes down approximately 182 feet from the highest point to the lowest portion of the back of the lot. There is a 20-foot front roadway easement on Flying Mane Road, and 10-foot roadway easements along the sides and rear property lines. The lot has a depth of 341 feet in length and a width of 170 feet. The lot size, easements, and existing topography limit the size and location of any proposed improvements on site. The Geographical Information Systems (GIS) Vicinity Map has been included in this report (Attachment 3). Previous Projects On July 19, 2022, there was an approval for an Over-the-Counter project for a reroof for the main residence and barn. On September 2, 2022, there was an approval for an Administrative Review project for a barn remodel. DISCUSSION: Applicant Request On March 21, 2024, the applicants, Jennifer King of Jennifer King Designs, on behalf of the property owners Tiffany Rogers and Michelle Mollura, submitted a variance application and architectural plans for a discretionary approval before the Planning Commission for a portion of a residential addition to encroach into the side yard setback. The architectural plans have been included in this report (Attachment 6). The Project also includes a 748 square foot residential addition, 120 square foot expansion to the existing front porch, 113 square foot stairs, and 266 square foot BBQ that is not part of this discretionary approval before the Planning Commission. Variances The Rolling Hills Municipal Code requires a Variance application for a portion of a structure to encroach into the required setback. The applicants are proposing to add a 748-square-foot residential addition and stairs to the southeast portion of the main residence. A portion of the 748 square foot addition, that is, 23 square feet, encroaches into the required 20-foot side setback, which requires a variance, and the remaining 725 square feet comply with the development standards. Also, 12 square feet of the proposed residential stairs and 80 square feet of new hardscape encroaches into the side setback (total of 92 square feet). The variance is required because the rear of the lot is steeply sloped, and the building pad area is limited due to the slope. The buildable area of the lot is restricted because the septic tank and leach 38 field are located in the front yard. The residential expansion of the master bedroom, kitchen, walk in closet, and kitchen remodel provides a more multifunctional use to the existing floor plan. The corner and stairs of the master bedroom that encroaches into the side setback will not obstruct any views from any of the neighboring properties. Setbacks The property has a net lot size of 41,603 square feet (0.95 acres) and is in accordance with RHMC Section 17.24.045 Dwelling units non-conforming due to smaller lots; the property has a lot area that is less than 1.25 acres. The following reduced setback limits shall apply to properties in the RAS-1 zoning district having a lot area of 1.25 acres or less, excluding roadway easement(s), and developed with single-family dwelling structures existing as of May 23, 2012, that have nonconforming setbacks, subject to the conditions set forth in RHMC subsection 17.24.045.A(1) that in no place shall the front yard setback line be less than thirty feet from the front roadway easement line. The front setback is 30 feet from the roadway easement, the side setbacks are 20 feet from the side property lines, and the rear setback is 50 feet from the rear property line. The closest neighbor to the project is located south, approximately 38 feet and 10 inches, and a proximity map has been included in the report (Attachment 4). Lot Coverage and Building Pad Coverage The Project complies with the Development Standards in the Rolling Hills Municipal Zoning Code and staff has included the Development Table (Attachment 2). The existing structural coverage is 3,605 square feet or 8.6%, and the project proposes a net of 1,208 square feet or 2.9%, for a total of 4,813 square feet or 11.56%. This is still under the maximum allowed 20% structural coverage. The existing flatwork coverage is 3,220 square feet or 7.73% and -188 square feet of flatwork will be removed for a total of 3,032 square feet or 7.28%. This is still under the maximum allowable 15% structural coverage. The existing structural and flatwork coverage is 6,825 square feet or 16.41%, and the project increases that by 907 square feet or 2.18%. The total overall structural and flatwork coverage will result in 7,732 square feet or 18.5%, which is still well under the maximum allowed 35% structural and flatwork coverage. Building Pad #1 is a total of 9,766 square-feet. The existing Building Pad #1 Coverage with deductions is 3,163 square feet or 32.38%, and with an increase of 861 square feet or 8.82%, and the total proposed Building Pad Coverage with deductions is 4,024 square feet or 41.20%, this exceeds the maximum 30% guideline by 11.20%. Building Pad #2 is a total of 2,430 square-feet. The existing Building Pad #2 Coverage with deductions is 442 square-feet or 18.18%, with an increase of 43 square feet or 1.77%. The total proposed Building Pad Coverage with deductions is 485 square-feet or 19.95%. This is well below the 30% maximum guideline. Environmental Review The proposed project has been determined not to have a significant effect on the environment and is categorically exempt from the provisions of CEQA pursuant to Section 15303 (New Construction or Conversion of Small Structures) of the CEQA Guidelines, which exempts 39 accessory structures including garages, carports, patios, swimming pools, and fences. Public Participation Staff has not received any calls or letters regarding the project. Public Notices The applicants were notified of the public hearing in writing by first-class mail. Neighbors within a 1,000-foot radius were notified of the public hearings, and a notice was published in the Daily Breeze on January 8, 2025. The radius map (Attachment 1) has been included in this report. FISCAL IMPACT: None RECOMMENDATION: Receive and file. ATTACHMENTS: Attachment 1 - PL_ADR_250102_15FlyingManeRd_ZC24-027_RadiusMap_.pdf Attachment 2 - PL_ADR_250116_15FyingManeRd_ZC24-027_DevelopmentTable.pdf Attachment 3 - 250116_15FyingManeRoad_ZC24-027_Geographic Information System GIS Vicinity Map_1.21.25_P.pdf Attachment 4 - PL_ADR_15FlyingManeRd_ZC24-027_250116_ProximityMap.pdf Attachment 5 - 2025-01_PC_Resolution_15FlyingManeRd_ZC24-027_Rogers_F_A_E.pdf Attachment 6 - ArchitecturalPlans.pdf 40 City of Rolling Hills ROLLING HILLS, CA 90274 TITLE VICINITY MAP CASE NO. Zoning Case No. 24-027 Variance OWNERS Mollura & Rogers ADDRESS 15 Flying Mane Road, Rolling Hills 90274 SITE 41 Development Table Zoning Case No. 24-027 15 Flying Mane Road VARIANCE APPLICATION EXISTING PROPOSED TOTAL RA-S-1 Zone Variance Net Lot Area 41,603 SF 0 SF 41,603 SF Residence 2,427 SF 748 SF 3,175 SF Garage 540 SF 0 SF 540 SF Swimming Pools/Spa 0 SF 0 SF 0 SF Pool Equipment 0 SF 0 SF 0 SF Guest House 0 SF 0 SF 0 SF Cabana 0 SF 0 SF 0 SF Stable 442 SF 0 SF 442 SF Recreation Court 0 SF 0 SF 0 SF Attached Covered Porches 79 SF 120 SF 199 SF Entryway/Porte Cochere, Breezeways 0 SF 0 SF 0 SF Attached Trellises 117 SF -39 SF 78 SF Service Yard 0 SF 0 SF 0 SF BBQ 0 SF 266 SF 266 SF Basement Area Depth of Basement 0 SF 0 FT 0 SF 0 FT 0 SF 0 FT Primary Driveway 962 SF 0 SF 962 SF Paved Walkways, Patio Areas, Courtyards 0 SF 0 SF 0 SF Stairs 0 SF 113 SF 113 SF Other Paved Driveways, Road Easements, Parking Pads 0 SF 0 SF 0 SF Grading (balanced onsite) 0 CY 0 CY CUT 0 CY FILL 0 CY TOTAL Structural Lot Coverage (20% maximum with deductions) 3,605 SF (8.6%) 1,208 SF (2.9%) 4,813 SF (11.56%) Flatwork Lot Coverage (15% maximum) 3,220 SF (7.73%) -188 SF (0.0%) 3,032 SF (7.28%) Total Lot Coverage (Structures and Flatwork) (35% maximum with deductions) 6,825 SF (16.4%) 907 SF (2.18%) 7,732 SF (18.5%) Total Disturbed Area (40% maximum) 11,000 SF (26%) 0 SF (0%) 11,000 SF (26%) Building Pad 1 (9,766 SF) (30% Maximum Guideline) 3,163 SF STRUCTURE AREA (32.38%) 942 SF STRUCTURE AREA (8.82%) 4,105 SF STRUCTURE AREA (41.20%) Building Pad 2 (2,430 SF) (30% Maximum Guideline) 442 SF STRUCTURE AREA (18.18%) 43 SF STRUCTURE AREA (1.77%) 485 SF STRUCTURE AREA (19.95%) 42 © Latitude Geographics Group Ltd. 0.1 THIS MAP IS NOT TO BE USED FOR NAVIGATION WGS_1984_Web_Mercator_Auxiliary_Sphere Miles0.1 Notes 15 Flying Mane Road This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. 0.040 1:2,257 15 Flying Mane Road - ZC24-027 43 5'-6"5'-6" 5'-6"2'-6"2'-6"1'-6"1'-6"2'-6"2'-6"1'-6"1'-6"1'-6"4'-3"3'-6"5'-6"5:125:125:125:125:125:125:12 5:12 1'-6"2'-6"1'-6"1'-6"5:12 5:12 5:12 5:12 5:12 5:12 5:121'-2"2'-6"5:122:1238' -10 "52' -8 "70' -2 "56'-6 "66' -9 " 70'-0" 105'-6"66'-11 "digital design & printingCADTel: 310-375-9700 Fax: 310-375-9770 support@cadwest.com23890 Hawthorne Blvd.Torrance, California 90505DRAWN SHEET: SCALE DATE CHECKED JOB NO. REVISIONSSHEET TITLEPROJECTOF SHEETS SA 11 28 2022 NTS - A-1.2 -PROXIMITY MAP15 FLYING MANE RDROGERS RESIDENCEROLLING HILLS, CA 90274V I C I N I T Y M A P S C A L E = 1 / 1 6 " = 1 ' - 0 " 10-18-2023 MEASUREMENTS ARE APPROXIMATE MAP SOURCE: HTTPS://MAPS.ASSESSOR.LACOUNTY.GOV/M/ 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 Agenda Item No.: 13.A Mtg. Date: 02/24/2025 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:SAMANTHA CREW, MANAGEMENT ANALYST THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH JOHN L. HUNTER AND ASSOCIATES FOR ANNUAL TMDL TRASH MONITORING AND REPORTING AS REQUIRED BY THE LOS ANGELES REGIONAL WATER QUALITY CONTROL BOARD DATE:February 24, 2025 BACKGROUND: The Total Maximum Daily Load (TMDL) is a number that represents the assimilative capacity of a receiving water to absorb a pollutant. A TMDL is implemented by reallocating the total allowable pollution among the different pollutant sources (through the permitting process or other regulatory means) to ensure that the water quality objectives are achieved. The Los Angeles Regional Water Quality Control Board (Los Angeles Water Board) adopted the Machado Lake Trash Total Maximum Daily Load (TMDL) under Resolution No. R4-2007- 006 on June 7, 2007. This TMDL was subsequently approved by the State Water Resources Control Board on December 4, 2007, the Office of Administrative Law on February 8, 2008, and the United States Environmental Protection Agency on February 27, 2008. The Los Angeles Water Board adopted the Santa Monica Bay Nearshore and Offshore Debris TMDL under Resolution No. R10-2010-010 on November 4, 2010. This TMDL was then approved by the State Water Resources Control Board on December 6, 2011, the Office of Administrative Law on March 15, 2012, and the United States Environmental Protection Agency on March 20, 2012. The City of Rolling Hills (City) has been implementing a Trash Monitoring and Reporting Plan (TMRP) required for compliance with the Machado Lake Trash TMDL and the Santa Monica Bay Nearshore and Offshore Debris TMDL. The TMRP for the Machado Lake Trash TMDL was submitted on August 29, 2008 and approved by the Executive Officer of the Los Angeles Water Board on December 9, 2008. A revised TMRP was submitted by the City on December 7, 2011, and approved by the Executive Officer on March 5, 2012. This revision reduced the frequency of monitoring events from quarterly and immediately following the first major storm event of the year, to twice a year and immediately following the first major storm event of the 77 year beginning April 2012. On June 17, 2019, Rolling Hills wrote to the Regional Board requesting that the frequency of monitoring events be further reduced from twice a year and immediately following the first major storm event of the year to once every 5 years. In the City’s TMRP annual reports for both the Machado Lake Trash TMDL and the Santa Monica Bay Nearshore and Offshore Debris TMDL submitted over the past 10 years, the annual trash discharge rates were zero or close to zero since 2011, indicating that the City has reduced its trash generation by 100% or nearly 100% through its existing minimum frequency of collection and assessment/best management practice (MFAC/BMP) program. Based on the information provided in the City’s TMRP annual reports, the Los Angeles Water Board found that reducing the frequency of monitoring in the Machado Lake and Santa Monica Bay watersheds was warranted. DISCUSSION: In urban areas, like Los Angeles County, litter accumulates during the long dry season, then is flushed into storm drains by the first major rainstorm. Storm drains empty into streams, bays and harbors, and onto beaches, depositing loads of trash that are not just unsightly, but a serious health hazard to people, wildlife and fish. Birds and marine life can consume small pieces, mistaking them for food. Also, some of the waste contains pathogens that can sicken swimmers and surfers. To ensure that trash does not accumulate in deleterious amounts between collection events, the City of Rolling Hills is responsible for monitoring once a year, immediately following the first major storm of the year. For 2025, the first major storm was documented as January 26- 27. With the departure of the Rolling Hills Community Services and Planning Director, there was a time lapse in executing the Professional Services Agreement (PSA) with consultant John L. Hunter and Associates (JLHA). A new agreement has been drafted by the City Attorney (Attachment A). Continued annual monitoring is important and necessary to ensure that the effectiveness of the MFAC/BMP program is not compromised and that the low trash discharge conditions remain unchanged over time. It is important to note that the City engaged JLHA to conduct a study during the week of January 27, 2025, following the first storm of the year. FISCAL IMPACT: The scope of work and proposal from JLHA outlines a cost breakdown (Attachment B). Total cost to the City is $4,930.00. RECOMMENDATION: Approve as presented. ATTACHMENTS: Attachment A - CA_AGR_250224_JLHA_F.pdf Attachment B - CA_AGR_250224_JLHA_Trash_TMDL_Proposal.pdf 78 CITY OF ROLLING HILLS PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT made and entered into this ______ day of _______, 2025 between the City of Rolling Hills, a municipal corporation, hereinafter referred to as "CITY'' and John L. Hunter and Associates with principal offices at 6131 Orangethorpe Ave, Ste 300, Buena Park, CA 90620, hereinafter referred to as "CONSULTANT." 1. RECITALS: A. The CITY desires to contract the CONSULTANT to collect and evaluate trash at discharge locations in compliance and conformance with the City’s Machado Lake TMDL Monitoring Plan. B. CONSULTANT is well qualified by reason of education and experience to perform such services; and C. CONSULTANT is willing to render such professional services as hereinafter defined. Now, therefore, for and in consideration of the mutual covenants and conditions herein contained, CITY hereby engages CONSULTANT and CONSULTANT agrees to perform the services set forth in this AGREEMENT. 2. SCOPE OF WORK CONSULTANT shall perform all work necessary to complete in a manner satisfactory to CITY the services as stated in the attached Exhibit A (hereinafter referred to as “SERVICES”). 3. COST The CITY agrees to pay CONSULTANT for all the work or any part of the work performed under this AGREEMENT at the rates and in the manner established in the attached Exhibit A. A. Compensation. Total expenditure made under this AGREEMENT shall not exceed the sum of $4,930. This fee includes all expenses, consisting of all incidental blueprinting, photography, travel, attendance at meetings and miscellaneous costs, estimated to be accrued during that period. It also includes any escalation or inflation factors anticipated. Any increase in contract amount or scope shall be approved by expressed written amendment executed by the CITY and CONSULTANT. 79 4. METHOD OF PAYMENT CONSULTANT shall be reimbursed within 30 (thirty) days of submitting an invoice to City for the SERVICES. CONSULTANT shall submit an invoice for the SERVICES within 10 (ten) days of completing each task or portion thereof identified in Exhibit A to this AGREEMENT. CONSULTANT shall submit invoices electronically to the City Manager of the CITY and shall also provide a courtesy copy by U.S. Mail addressed to the City Manager of the CITY. 5. SUBCONTRACTING CONSULTANT shall not be permitted to subcontract any portion of this contract without the express written consent of the CITY. 6. COMMENCEMENT OF WORK CONSULTANT shall commence work under this AGREEMENT upon execution of this AGREEMENT. 7. WORK PERFORMED All work shall be of the highest quality and consistent with industry standards. 8. COMPLIANCE WITH LAW All SERVICES rendered hereunder shall be provided in accordance with the requirements of relevant local, State and Federal Law. 9. ACCOUNTING RECORDS CONSULTANT must maintain accounting records and other evidence pertaining to costs incurred which records and documents shall be kept available at the CONSULTANT’s California office during the contract period and thereafter for five years from the date of final payment. 10. OWNERSHIP OF DATA All data, maps, photographs, reports, and other information and material collected or prepared under this contract shall become the property of the CITY. 11. TERM OF CONTRACT This contract shall be valid for one year from execution of this AGREEMENT. The CITY may extend this AGREEMENT for an additional three years or less. Such extensions shall be in writing by the CITY and the CONSULTANT. 80 12. TERMINATION This contract may be terminated at any time for breach and the CITY may terminate unilaterally without cause upon seven (7) days written notice to the CONSULTANT. All work satisfactorily performed pursuant to this AGREEMENT and prior to the date of termination may be claimed for reimbursement. 13. ASSIGNMENT CONSULTANT shall not assign or transfer interest in this contract without the prior written consent of the CITY. 14. AMENDMENT It is mutually understood and agreed that no alteration or variation of the terms of this contract, or any subcontract requiring the approval of the CITY, shall be valid unless made in writing, signed by the parties hereto, and approved by all necessary parties. 15. NON-SOLICITATION CLAUSE The CONSULTANT warrants that he or she has not employed or retained any company or persons, other than a bona fide employee working solely for the CONSULTANT, any fee, commission, percentage, brokerage fee, gifts, or any other consideration, contingent upon or resulting from the award or making of this contract. For breach or violation of this warranty, the CITY shall have the right to annul this contract without liability, or, in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. 16. INDEMNITY CONSULTANT shall indemnify, defend with counsel approved by CITY, and hold and save harmless CITY, its elected and appointed officials, officers, employees, agents and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys’ fees, expert fees, and all other costs and fees of litigation) of every nature arising out of or in connection with CONSULTANT’s performance of work hereunder or its failure to comply with any of its obligations contained in this AGREEMENT to the degree determined in a final and non -appealable judgment or by agreement of the parties to be proportionate to its liability. Should CITY, in its sole discretion, find CONSULTANT’s legal counsel unacceptable, then CONSULTANT shall reimburse the CITY its costs of defense, including, without limitation, reasonable attorneys’ fees, expert fees, and all other costs and fees of litigation. The CONSULTANT shall promptly pay any final judgment rendered against the CITY (and its officers, officials, employees, and volunteers) with respect to claims determined by a trier of fact to have been CONSULTANT’S allocated share of 81 liability. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this AGREEMENT. A. CONSULTANT will defend any action(s) filed in connection with any of said claims, damages, penalties, obligations, or liabilities and will pay all costs and expenses, including, but not limited to, reasonable attorneys’ fees incurred in connection herewith; B. CONSULTANT will promptly pay any judgment rendered against CITY, its officers, agents, or employees for any such claims, penalties, obligations, or liabilities; and C. In the event CITY, its officers, agents, or employees are made a part of any action or proceeding filed or prosecuted against CONSULTANT for such damages or other claims arising out of or in connection with the sole negligence or wrongful acts of CONSULTANT hereunder, CONSULTANT agrees to pay CITY, its offices, agents, or employees, any and all costs and expenses incurred by CITY, its officers, agents, or employees in such action or proceeding, including but not limited to, reasonably attorneys’ fees. If CONSULTANT should subcontract all or any portion of the SERVICES to be performed under this AGREEMENT, CONSULTANT shall require each subcontractor to indemnify, hold harmless and defend CITY and each of its officers, officials, employees, agents and volunteers in accordance with the term of the preceding paragraph. This section shall survive termination or expiration of this AGREEMENT. 17. INSURANCE A. CONSULTANT shall, at his expense, obtain and keep in force during the term of this AGREEMENT, a policy of Comprehensive General Liability Insurance covering bodily injury and property damage; insuring CONSULTANT and the CITY against any liability arising out of the maintenance on the premises and all areas appurtenant thereto. Such insurance shall be in a Combined Single Limit policy in an amount not less than one million dollars ($1,000,000). Without limiting CONSULTANT’s obligations arising under paragraph 16 - 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: i. Automobile Liability Insurance with a combined single limit of not less than one million dollars ($1,000,000) per occurrence. Such insurance shall include coverage for owned, hired, and non-owned automobiles. 82 ii. Public Liability and Property Damage Insurance, insuring CITY its elected and appointed officers 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. iii. Worker’s Compensation Insurance. CONSULTANT shall provide copies of said policies of Certificate of Insurance for all CONSULTANT’S employees to the extent required by the State of California. CONSULTANT shall require all subcontractors who are hired by CONSULTANT to perform the SERVICES and who have employees to similarly obtain Worker’s Compensation Insurance for all of the subcontractor’s employees. iv. Comprehensive General Liability Insurance. CONSULTANT shall maintain and deliver to the CITY copies of its Comprehensive General Liability Insurance with a combined single limit of not less than one million dollars ($1,000,000). Such insurance shall (a) name City of Rolling Hills, their appointed and elected officials, officers, employees, and agents as insureds; and (b) be primary with respect to any insurance or self-insurance programs maintained by the CITY; and (c) contain standard cross liability provisions. v. Professional Liability Coverage. The CONSULTANT shall maintain 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 be by the CONSULTANT or by its employees, subcontractors, or sub-consultants. 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. vi. Self-Insured Retention/Deductibles. All policies required by this AGREEMENT shall allow CITY, as additional insured, to satisfy the self-insured retention (“SIR”) and/or deductible of the policy in lieu of the Owner (as the named insured) should Owner fail to pay the SIR or deductible requirements. The amount of the SIR or deductible shall be subject to the approval of the City Attorney and the Finance Director. Owner understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this AGREEMENT. Failure by Owner as primary insured to pay its SIR or deductible constitutes a material breach of this AGREEMENT. Should CITY pay the DIR or deductible on Owner’s behalf upon the Owner’s failure or refusal to do so in order to secure defense and indemnification as an additional insured under the policy, CITY may include such amounts as damages in any action against OWNER for breach of this AGREEMENT in addition to any other damages incurred by CITY due to the breach. B. Deductibility Limits for policies referred to in subparagraphs A (i) (ii) and (iii) shall not exceed $5,000 per occurrence. 83 C. Additional Insured. City, its elected and appointed officers and employees shall be named as additional insured on policies referred to in subparagraphs A (i) and (ii). D. Primary Insurance. The insurance required in paragraphs A (i) and (ii) shall be primary and not excess coverage. E. 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 thirty (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. If CONSULTANT, for any reason, fails to maintain insurance coverage, which is required pursuant to this AGREEMENT, the same shall be deemed a material breach of this AGREEMENT. CITY, at its sole option, may forthwith terminate this AGREEMENT and obtain damages from the CONSULTANT resulting from said breach. Alternatively, CITY may purchase such required insurance coverage, and without further notice to CONSULTANT, CITY may deduct from sums due to CONSULTANT any premium costs advanced by CITY for such insurance. 18. ENFORCEMENT OF AGREEMENT In the event that legal action is commenced to enforce or declare the rights created under this AGREEMENT, the prevailing party shall be entitled to an award of costs and reasonable attorney’s fees in the amount to be determined by the court. 19. CONFLICTS OF INTEREST No member of the governing body of the CITY and no other officer, employee, or agent of the CITY who exercises any functions or responsibilities in connection with the planning and carrying out of the program, shall have any personal financial interest, d irect or indirect, in this AGREEMENT; and the CONSULTANT further covenants that in the performance of this AGREEMENT, no person having any such interest shall be employed. 20. INDEPENDENT CONSULTANT The CONSULTANT is and shall at all times remain as to the CITY, a wholly independent consultant. Neither the CITY nor any of its agents shall have control over the conduct of the CONSULTANT or any of the CONSULTANT’s employees, except as 84 herein set forth. The 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. 21. ENTIRE AGREEMENT OF THE PARTIES This AGREEMENT supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the employment of CONSULTANT by CITY and contains all the covenants and agreements between the parties with respect such employment in any manner whatsoever. 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 no other agreement or amendment hereto shall be effective unless executed in writing and signed by both CITY and CONSULTANT. 22. NOTICES All written notices required by, or related to this AGREEMENT shall be sent by Certified Mail, Return Receipt Requested, postage prepaid and addressed as listed below. Neither party to this AGREEMENT shall refuse to accept such mail; the parties to this AGREEMENT shall promptly inform the other party of any change of address. All notices required by this AGREEMENT are effective on the day of receipt, unless otherwise indicated herein. All notices and communications shall be sent to the parties at the following addresses: CITY: Karina Bañales, City Manager City of Rolling Hills No. 2 Portuguese Bend Road Rolling Hills, CA 90274 CONSULTANT: John L. Hunter and Associates Attn: [INSERT NAME] 6131 Orangethorpe Ave, Ste 300 Buena Park, CA, 90620 23. GOVERNING LAW This AGREEMENT shall be governed by and construed in accordance with the laws of the State of California, and all applicable federal statutes and regulations as amended. IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on the date and year first above written. CITY OF ROLLING HILLS CONSULTANT 85 CITY MANAGER JOHN L. HUNTER AND ASSOCIATES ______ _____ ________ KARINA BAÑALES DATE:___________ DATE:_____________ ATTEST: ______ _____ CITY CLERK APPROVED AS TO FORM: ______ _____ PATRICK DONEGAN, CITY ATTORNEY 86 Exhibit A 87 January 23, 2025 Karina Bañales City of Rolling Hills 2 Portuguese Bend Rd Rolling Hills, CA 90274 Subject: Proposal to Assist with the Machado Lake Trash TMDL Trash Monitoring and Reporting Plan and Santa Monica Bay Marine Debris TMDL Monitoring and Reporting Dear Karina Bañales: We at John L. Hunter and Associates (JLHA) welcome the opportunity to continue providing our professional surface water quality services to the City of Rolling Hills. Our scope of services consists of providing knowledgeable personnel to assist the City with the tasks described below. Scope of Work On March 6, 2008, the Machado Lake Trash Total Maximum Daily Load (TMDL), Resolution No. R4-2007-006, became effective regulating trash discharge in the Machado Lake watershed. To fulfill the requirements of this TMDL, the City of Rolling Hills implemented a Trash Monitoring and Reporting Plan (TMRP), including a Minimum Frequency Assessment and Collection (MFAC) Program that consisted of quarterly canyon monitoring for the first two years, and immediately following the first major storm event of the year. On March 5, 2012, the Regional Board responded to the City’s presentation of monitoring data and request to be removed from the monitoring requirements of the Machado Lake Trash TMDL and Santa Monica Bay Marine Debris TMDL with a letter stating that the City of Rolling Hills remains a responsible party in the TMDLs, and therefore must continue monitoring in order to demonstrate compliance. On June 8, 2021, the Regional Board approved a decrease in the frequency of monitoring from twice a year and immediately following the first major storm event of the year to once a year immediately following the first major storm event of the year. The City is also still required to submit annual TMDL reports. Since the City has not received permission to cease trash monitoring, John L. Hunter and Associates (JLHA) proposes the City continue to implement the revised monitoring plan and submit annual reports to the Regional Board. Cost This project will be on a time and materials basis. Our rate schedule and estimated costs are on the following page. We will not exceed the total cost estimate without City authorization. If you have any questions, you can reach me at cmccullough@jlha.net, or 562.726.4259. Sincerely, Cameron McCullough Director, JLHA 88 Standard Rate Schedule Principal $227 / hour Director $201 / hour Program Manager $201 / hour Staff Engineer $201 / hour Project Manager $191 / hour Assistant Project Manager $170 / hour Project Engineer $170 / hour Senior Compliance Specialist $150 / hour Compliance Specialist II $140 / hour Project Analyst II $140 / hour Compliance Specialist I $129 / hour Project Analyst I $129 / hour Administrative Assistant, Intern, Laborer (OSHA 40hr certified) $88 / hour State Certified Laboratory Analysis Cost + 5% Legal Consultation, Court Appearances/Document review, etc. $299 / hour Subcontracted equipment Cost + 5% This rate schedule is subject to annual consumer price index (CPI) increases in subsequent years (pending city approval). Estimated Costs Not-To-Exceed Estimated Costs for TMRP Assistance Services Task Team1 Rate Hours Cost Task 1: One (1) Trash Survey Event after first major storm event aPM $170 12 $2,040 CS1 $129 8 $1,032 Task 2: Data Compilation and Annual Reporting PM $191 2 $382 PA1 $129 8 $1,032 Contingency Fee (approx. 10%) Lump Sum Estimate $444 Total $4,930 1aPM: Assistant Project Manager, CS: Compliance Specialist, PA: Project Analyst, PM: Project Manager 89 Agenda Item No.: 13.B Mtg. Date: 02/24/2025 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:ROBERT SAMARIO, FINANCE DIRECTOR THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: FISCAL YEAR 2024/25 MID-YEAR REPORT FOR THE SIX MONTHS ENDED DECEMBER 31, 2024 DATE:February 24, 2025 BACKGROUND: At mid-year, City finance staff prepare a report on the status of revenues and expenditures versus budgeted amounts. The purpose of the report and related analysis is to evaluate the progress of expenditures throughout the year to identify any unusual trends that may require action to mitigate or address the fiscal impacts. Most of the focus is on the General Fund, the City's primary and largest operating fund. However, this report also includes most of the restricted funds and the Refuse Fund. With six months of activity now in place, the mid-year report is important since it is the first real opportunity to determine how the City's revenues and expenditures are performing relative to their respective budgeted amounts. The mid-year report is also important as it provides useful information as the City begins to develop the budget for the next fiscal year. DISCUSSION: Please refer to Attachment A for a detailed written analysis of the status of revenues and expenditures for the General Fund and restricted funds. Attachments B through E present the financial status of all funds through mid-year. Attachment F provides a summary of budget amendments from July 1, 2024, through December 31, 2024. FISCAL IMPACT: None RECOMMENDATION: Receive and file the mid-year report for the six months ended December 31, 2024. 90 ATTACHMENTS: Attachment A - CL_AGN_250224_CC_NarrativeAnalysis.pdf Attachment B - CL_AGN_250224_CC_GF_BudgetSummary.pdf Attachment C - CL_AGN_250224_CC_GF_Revenues.pdf Attachment D - CL_AGN_250224_CC_GF_Expenditures.pdf Attachment E - CL_AGN_250224_CC_RestrictedFunds.pdf Attachment F - CL_AGN_250224_CC_GF_BudgetAmendments.pdf 91 CITY OF ROLLING HILLS Fiscal Year 2023/2024 Mid-Year Review (Six Months Ended December 31, 2024) OVERVIEW The analysis below provides a comparison of actual revenues and expenditures to the amended budget through the six months ended December 31, 2024. Although there are still another six months left in the fiscal year and the current trends can change, it is still a valuable exercise to go through to identify any unexpected trends, both favorable and unfavorable, that may affect the year-end results and, thus, the expectations reflected in the amended budget. 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 2024/25 revenues total $2,596,685. Staff has added a column for the “pro- rated” budget through December 31, 2024, which represents 50% (6 out of 12 months) of the annual budget to enable a more meaningful comparison to revenues realized through half of the fiscal year. The only exception is property taxes, which do not come in evenly through out the year. Over the last three fiscal years, revenues through mid-year averaged 43.5% of the annual total realized. As such, the pro-rated budget has been “seasonally adjusted” by using 43.5% of the adopted budget to compare to actuals through December 31, 2024. As shown in the table below, , revenues through December 31, 2024, from all sources totaled $1,016,482, resulting in an unfavorable variance of $40,788. An analysis of each key revenue is provided below. 92 2 Property Taxes. By far, the largest General Fund revenue is from property taxes, representing 54% of total adopted revenues. At mid-year, property tax revenues totaled $589,255. This is $63,571 below the seasonally adjusted budget of $652,826. While this may portend to a shortfall at fiscal year-end, because of the variability in remittances, it is possible revenues will be in line with the budget estimate by year end. Real Property Transfer Tax (RPTT). After a spike in fiscal year 2021 during which RPTT reached $133,000, revenues have leveled off in the mid $60,000 range. This fiscal year, revenues are in line with expectation with revenues at $30,175 at mid -year compared to the adjusted budget of $32,445. Building and Other Permits. Revenues from this category are the General Fund’s second-largest revenue, with budgeted revenues of $400,000. Two years ago in fiscal year 2022/23, 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 starting seeing some of the impacts last fiscal year with revenues dropping to $537,787. At December 31, 2024, Building and Other Permit revenues were $162,566 versus a pro-rated budget of $200,000. However, because the remittances from the County are usually Seasonally Adopted Adjusted Actuals Variance Budget Budget at 12/31/24 (Unfavorable) 401 Property Taxes 1,500,750$ 652,826$ 589,255$ (63,571)$ 405 Sales Taxes 10,000 5,000 8,402 3,402 410 Property Transfer Tax 64,890 32,445 30,175 (2,270) 415 Other Taxes 1,000 500 - (500) 420 Motor Vehicle In Lieu 280,545 - - - 440 Building & Other Permits 400,000 200,000 162,566 (37,434) 441 C&D Permits 10,000 5,000 3,600 (1,400) 450 Variance, Planning & Zoning 25,000 12,500 15,758 3,258 455 Animal Control Fees 300 150 269 119 460 Franchise Fees 13,000 3,250 1,201 (2,049) 480 Fines & Traffic Violations 4,000 2,000 3,111 1,111 482 Cost Recoivery - Publications 3,000 1,500 1,500 - 600 RHCA Lease Revenue 69,000 34,500 34,495 (5) 650 Public Safety Aug Fund 1,200 600 930 330 670 Interest on Investments 140,000 70,000 80,047 10,047 671 PARS Earnings 44,000 22,000 24,192 2,192 6XX Cal Water Grant - Turf Removal - - 48,897 48,897 675 Miscellaneous Revenue 6,000 3,000 85 (2,915) 699 Transfers In - Refuse Fund 24,000 12,000 12,000 - TOTALS 2,596,685$ 1,057,271$ 1,016,483$ (40,788)$ CITY OF ROLLING HILLS Mid-Year Report of Revenues Through December 31, 2024 General Fund 93 3 sixty days behind, the revenues through mid-year only reflect five months of revenues. Extrapolating for six months, revenues would be approximately $195,000, which is in line with the budget. However, there are several large projects in the pipeline that could result in revenues exceeding expectations. As a final note, starting in October, the County of Los Angeles Board of Supervisors approved a waiver of building fees for solar and other similar projects for properties affected by the land movements. These fees are not significant and thus will not have a material impact on overall revenues. Interest on Investments. Investment earnings through mid-year totaled $80,047 $72,130 versus the pro-rated budget of $70,000. Investment earnings last fiscal year through 12/31/2023 were $72,130. This is the third year in a row we have seen investment returns increase, largely due to the increase in interest rates starting two years ago. Although more volatile, investment returns in the City’s Section 115 Pension Trust is also tracking ahead of budget at $24,192 through mid - year. Cal Water Grant. The City of Rolling Hills received a grant from Cal Water to fund landscape and irrigation system improvements at City Hall. This grant and the related cost were not budgeted as they were not expected when the budget was adopted. General Fund Expenditures The originally adopted budget for fiscal year 2024-25 totaled $2,576,708. The amended budget includes appropriation carryovers and budget amendments approved between July 1 and December 31, 2024, totals $3,445,180. Excluding capital transfers, operating expenditures through December 31, 2024, totaled $1,418,832, resulting in an favorable variance of $107,183. A discussion of the key variances at the department level is provided below. 94 4 • City Administrator/Manager Department The $36,386 unfavorable variance was the result of the prepaid amortization of the pension unfunded liability in the amount of $76,564. This payment was not budgeted since we plan on having it paid for from a drawdown on the City’s Section 115 Trust. It is important to note that the City has incurred additional legal costs from its contracted attorney related to CPUC matters and matters associated with the recent land movements in the peninsula. Through December 31, 2024, these costs have totaled $24,707. • Planning Department Overall, expenditures are fairly in line with expectations, with only a $10,082 unfavorable variance through the first half of the fiscal year. In most cases, we see a favorable variance at the account level. However, account number 881 – Storm Water Management is over budget due to the full payment to the City of Rancho Palos Verdes for the City of Rolling Hills share of FY 2024-25 Coordinated Integrated Monitoring Program costs in the amount of $63,124. Not only is this cost front loaded to the first half of the fiscal year, which s kews the comparison to the adjusted budget set at 50% of the amended budget, it is also possible that some of these costs can be allocated to the Measure W Fund, which will not be known until after fiscal year-end. Actuals Variance Amended Adjusted Thru Favorable Department Budget Budget (50%) 12/31/24 (Unfav) City Administrator 869,059$ 892,165$ 446,083$ 482,468$ (36,386)$ Finance 159,500 159,500 79,750 81,011 (1,261) Planning & Development 890,549 890,549 445,275 455,356 (10,082) Public Safety 323,000 323,000 161,500 152,367 9,133 Non-Departmental 142,600 142,600 71,300 80,349 (9,049) City Properties 192,000 215,485 107,743 167,281 (59,539) Total Operations 2,576,708 2,623,299 1,311,650 1,418,832 (107,183) Capital Transfers - 821,881 410,940 141,422 269,519 GENERAL FUND TOTALS 2,576,708$ 3,445,180$ 1,722,590$ 1,560,254$ 162,336$ CITY OF ROLLING HILLS General Fund Expenditures by Department Budget Vs. Actual Six Months Ended December 31, 2024 Adopted 95 5 • Non-Departmental The “Non-Departmental” department accounts for costs that do not fit into a traditional department and generally are of a Citywide nature. As shown below, there are two accounts that have unfavorable variances. The first is Insurance & Bond Expense. The unfavorable variance is simply a timing variance due to the fact that premiums are paid in July of each year. In contrast, costs related to emergency preparedness are trending below budget. Costs last fiscal year totaled $62,850 but staff left the budget for the current fiscal year unchanged at $77,000 just to be conservative. However, it does appear we will be under budget by fiscal year -end. RESTRICTED FUNDS Transit/Transportation Funds The City receives revenues, primarily from the County, that are re stricted 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. 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 December 31, 2024, are generally below budgeted expectations. Revenues last year ended the fiscal year between 5-10% and the adopted budget was only slightly reduced based on the assumption the decline last fiscal year was anomaly. At this point, it appears these lower revenues may be the new normal. 96 6 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 December 31 are $177,053 versus the pro-rated budget of $85,000. Revenues are normally received in their entirety by mid-year. However, allocated costs for supplemental law enforcement services were only $69,209 at mid-year 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 2025, the City received approximately $104,950, which is very close to the $105,000 budget. 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 $981,000 for this fiscal year. Through mid -year, half of the costs have been incurred. Revenues, budgeted at $1,005,336, are intended to cover the refuse contract and $24,000 paid to the General Fund for administrative support. Through mid-year, revenues are $405,595, about $97,0000 below the pro-rated budget. However, since revenues in the second half of the year are typically higher than the first half, revenues should be in line with budget by fiscal year end. 97 ATTACHMENT B Adjusted Adopted C/O's and Amended Budget Variance Budget Amendments Budget 12/31/2024 Actuals Fav (Unfav) Operating Revenues 2,596,685$ -$ 2,596,685$ 1,057,271$ 1,016,483$ (40,788)$ Operating Expenditures 2,576,708 46,591 2,623,299 1,311,650 1,418,832 (107,183) Operating Surplus (Deficit)19,977 (46,591) (26,614) (254,378) (402,349) (147,971) Capital Transfers - 825,881 825,881 412,940 141,422 271,519 Surplus (Deficit) - Total 19,977$ (872,472)$ (852,495)$ (158,562)$ (260,927)$ (419,490)$ CITY OF ROLLINGS HILLS General Fund Fiscal Year 2024/25 Budget Summary - Through 12/31/2024 98 ATTACHMENT C Seasonally Adopted Adjusted Actuals Variance Budget Budget at 12/31/24 (Unfavorable) 401 Property Taxes 1,500,750$ 652,826$ 589,255$ (63,571)$ 405 Sales Taxes 10,000 5,000 8,402 3,402 410 Property Transfer Tax 64,890 32,445 30,175 (2,270) 415 Other Taxes 1,000 500 - (500) 420 Motor Vehicle In Lieu 280,545 - - - 440 Building & Other Permits 400,000 200,000 162,566 (37,434) 441 C&D Permits 10,000 5,000 3,600 (1,400) 450 Variance, Planning & Zoning 25,000 12,500 15,758 3,258 455 Animal Control Fees 300 150 269 119 460 Franchise Fees 13,000 3,250 1,201 (2,049) 480 Fines & Traffic Violations 4,000 2,000 3,111 1,111 482 Cost Recoivery - Publications 3,000 1,500 1,500 - 600 RHCA Lease Revenue 69,000 34,500 34,495 (5) 650 Public Safety Aug Fund 1,200 600 930 330 670 Interest on Investments 140,000 70,000 80,047 10,047 671 PARS Earnings 44,000 22,000 24,192 2,192 6XX Cal Water Grant - Turf Removal - - 48,897 48,897 675 Miscellaneous Revenue 6,000 3,000 85 (2,915) 699 Transfers In - Refuse Fund 24,000 12,000 12,000 - TOTALS 2,596,685$ 1,057,271$ 1,016,483$ (40,788)$ CITY OF ROLLING HILLS Mid-Year Report of Revenues Through December 31, 2024 General Fund 99 ATTACHMENT D Amended Adjusted Actuals Variance Budget (50%)at 12/31/24 (Unfavorable) 01 - CITY ADMINISTRATOR 702 Salaries -Full Time 436,262$ 218,131$ 208,795$ 9,336$ 705 Temporary Salaries 7,000 3,500 - 3,500 710 Retirement CalPERS-Employer 35,159 17,580 13,256 4,324 712 CalPERS Unfunded Liability - - 76,564 (76,564) 715 Workers Compensation Insurance 9,100 4,550 - 4,550 716 Group Insurance 80,378 40,189 47,279 (7,090) 717 Retiree Medical 37,500 18,750 19,651 (901) 718 Employer Payroll Taxes 33,821 16,911 14,271 2,640 719 Deferred Compensation 2,239 1,120 447 673 720 Auto Allowance 3,600 1,800 1,762 38 721 Phone Allowance 2,400 1,200 1,175 25 740 Office Supplies 13,000 6,500 1,952 4,548 745 Equipment Leasing Costs 11,000 5,500 5,261 239 750 Dues & Subscriptions 14,000 7,000 11,606 (4,606) 755 Conference Expense 2,000 1,000 1,245 (245) 757 Meetings Expense 2,300 1,150 698 452 759 Training & Education 5,000 2,500 - 2,500 761 Auto Mileage 500 250 560 (310) 765 Postage 19,500 9,750 6,064 3,686 775 City Council Expense 5,000 2,500 1,307 1,193 776 Miscellaneous Expenses 3,000 1,500 - 1,500 780 Comm./Newsletters & Outreach 2,500 1,250 531 719 785 Codification 2,400 1,200 - 1,200 790 Advertising 2,400 1,200 1,006 194 795 Other Gen Admin Expense 3,300 1,650 1,196 454 801 City Attorney 75,000 37,500 38,144 (644) 802 Legal Expense - Other 3,000 1,500 - 1,500 803 Legal & Other Outside Legal - - 14,508 (14,508) 804 Legal Expense -CPUC - - 10,199 (10,199) 820 Website 6,000 3,000 - 3,000 850 Election Expense City Council 15,000 7,500 1,338 6,162 890 Consulting Fees 35,000 17,500 371 17,129 891 Records Management 24,806 12,403 3,282 9,121 Total City Administrator 892,165 446,083 482,468 (36,386) CITY OF ROLLING HILLS FY24/25 Mid-Year Review - Expenditures Through December, 2024 GENERAL FUND Department/Object Account 1 Page: 1100 ATTACHMENT D Amended Adjusted Actuals Variance Budget (50%)at 12/31/24 (Unfavorable)Department/Object Account 05 - Finance 750 Dues & Subscriptions 4,500 2,250 2,098 152 810 Annual Audit 35,000 17,500 22,750 (5,250) 890 Consulting Fees 120,000 60,000 56,163 3,837 Total Finance 159,500 79,750 81,011 (1,261) 15- PLANNING & DEVELOPMENT 702 Salaries 219,953 109,977 107,223 2,754 703 Salaries - Part-Time 26,587 13,294 10,048 3,246 710 Retirement CalPERS-Employer 17,726 8,863 6,874 1,989 715 Workers Comp. Insurance 3,900 1,950 - 1,950 716 Group Insurance 48,107 24,054 25,743 (1,690) 718 Employer Payroll Taxes 19,310 9,655 8,690 965 719 Deferred Comp 4,681 2,341 585 1,756 720 Auto Allowance 1,200 600 488 112 721 Phone Allowance 600 300 244 56 761 Auto Mileage 300 150 - 150 750 Dues & Subscription 11,670 5,835 7,750 (1,915) 755 Conference Expense 2,000 1,000 1,248 (248) 759 Training & Education 1,000 500 - 500 776 Miscellaneous Expenses 2,000 1,000 - 1,000 790 Publication/Advertising/Noticing 10,000 5,000 4,275 725 802 Legal Expenses-Other 10,000 5,000 5,388 (388) 872 Property Development-Legal Exp 37,000 18,500 7,239 11,261 875 Willdan Building 45,000 22,500 18,862 3,638 878 Build Inspect. LA County 250,000 125,000 129,127 (4,127) 881 Storm Water Management 90,990 45,495 86,874 (41,379) 884 Special Project Study & Consult.5,000 2,500 - 2,500 886 Code Enforcement 62,880 31,440 30,870 570 890 Consulting Fees (Onward)15,000 7,500 - 7,500 928 Traffic Engineering 5,645 2,823 3,828 (1,006) Total Planning & Development 890,549 445,275 455,356 (10,082) 2 Page: 2101 ATTACHMENT D Amended Adjusted Actuals Variance Budget (50%)at 12/31/24 (Unfavorable)Department/Object Account 25 - Public Safety 830 Law Enforcement 293,000 146,500 147,233 (733) 833 Other Law Enforcement Exp 4,000 2,000 1,111 889 837 Wild Life Mgmt & Pest Control 20,000 10,000 1,000 9,000 838 Animal Control Expense 6,000 3,000 3,023 (23) Total Public Safety 323,000 161,500 152,367 9,133 65 - NON-DEPARTMENTAL 895 Insurance & Bond Expense 40,000 20,000 52,456 (32,456) 901 South Bay Comm. Organization 17,600 8,800 2,528 6,272 915 Community Recognition 8,000 4,000 6,968 (2,968) 917 Emergency Preparedness 77,000 38,500 18,397 20,103 Total Non-Departmental 142,600 71,300 80,349 (9,049) 75 - CITY PROPERTIES 892 IT Services 63,000 31,500 35,278 (3,778) 893 Granicus Services 8,300 4,150 8,143 (3,993) 894 Computer Hardware Fund 5,000 2,500 647 1,853 925 Utilities 60,000 30,000 32,611 (2,611) 930 Repairs & Maintenance 42,585 21,293 32,631 (11,339) 932 Area Landscaping 21,600 10,800 9,074 1,726 932 Landscaping Project - - 48,897 (48,897) 946 Buildings & Equipment 15,000 7,500 - 7,500 947 Non-Building Improvements - - - - Total City Properties 215,485 107,743 167,281 (59,539) TOTAL OPERATING EXPENDITURES 2,623,299 1,311,650 1,418,832 (107,183) CAPITAL TRANSFERS Capital Projects Fund 825,881 412,940 141,422 271,519 TOTAL EXPENDITURES 3,449,180$ 1,724,590$ 1,560,254$ 164,336$ 3 Page: 3102 ATTACHMENT E Pro-Rated Amended Budget Variance Budget (50%)Actuals Fav (Unfav) 10 - COPS FUND Revenues 570 COPS Allocation 170,000.00$ 85,000.00$ 177,053.80$ 92,053.80$ Expenditures 840 COPS Program Expenditures 170,000.00 85,000.00 69,209.32 15,790.68 Revenues Over (Under) Expenditures -$ -$ 107,844.48$ 107,844.48$ 16 - CAPITAL GRANT FUND Revenues 588 Crest Road FEMA Grant - 4434-526-112R 755,817.00$ 377,908.50$ 537,812.81$ 159,904.31$ 589 Safety Element Disaster Grants - DR 4344 PL0521 164,391.75 82,195.88 - (82,195.88) 590 Veg. Mgmnt FEMA Grant - HMGP-4382-175-13R - - - - 591 Eastfield U/Grounding FEMA DR-4382-177-7R-CA 2,514,279.00 1,257,139.50 58,384.36 (1,198,755.14) 699 Transfers In - General Fund - Safety Element 54,797.25 27,398.63 - (27,398.63) Total Revenues 3,489,285.00 1,744,642.50 596,197.17 (1,148,445.33) Expenditures 957 Crest Road East Project - 4434-526-112R 755,817.00 377,908.50 68,334.37 687,482.63 958 Safety Element DR4344-PL0521 219,189.00 109,594.50 219,189.00 959 Veg. Mgmt Mitig. Proj. - HMGP-4382-175-13R - - - 960 Eastfield Drive Utility U.G. - 4382-177-7R 2,514,279.00 1,257,139.50 1,053,358.31 1,460,920.69 Total Expenditures 3,489,285.00 1,744,642.50 1,121,692.68 2,367,592.32 Revenues Over (Under) Expenditures -$ -$ (525,495.51)$ 1,219,146.99$ 25 - PROPOSITION A FUND Revenues 500 Grant Revenues 52,750.00$ 26,375.00$ 21,879.32$ (4,495.68)$ 670 Interest Earned 300.00 150.00 - (150.00) Total Revenues 53,050.00 26,525.00 21,879.32 (4,645.68) Expenditures 620 Prop A Exchange - - - - Revenues Over (Under) Expenditures 53,050.00$ 26,525.00$ 21,879.32$ (4,645.68)$ 26 - PROPOSITION C Revenues 501 Grant Revenue-Prop C 43,750.00$ 21,875.00$ 18,148.32$ (3,726.68)$ 670 Interest Earned 250.00 125.00 - (125.00) Total Revenues 44,000.00 22,000.00 18,148.32 (3,851.68) Expenditures 906 Prop C Gifted - - - - Revenues Over (Under) Expenditures 44,000.00$ 22,000.00$ 18,148.32$ (3,851.68)$ Revenues and Expenditures Through December 31, 2024 CITY OF ROLLING HILLS Restricted Funds and Refuse Fund 1 103 ATTACHMENT E Pro-Rated Amended Budget Variance Budget (50%)Actuals Fav (Unfav) 27- MEASURE R TRANSIT Revenues 502 Measure R Grant Revenues 29,000.00$ 14,500.00$ 13,608.51$ (891.49)$ 670 Interest Earned 250.00 125.00 - (125.00) Total Revenues 29,250.00 14,625.00 13,608.51 (1,016.49) Expenditures 907 Measure R Gifted - - - - Revenues Over (Under) Expenditures 29,250.00$ 14,625.00$ 13,608.51$ (1,016.49)$ 29 - MEASURE M Revenues 507 Measure M Local Return 33,000.00$ 16,500.00$ 15,432.27$ (1,067.73)$ 670 Interest Earned 250.00 125.00 - (125.00) Total Revenues 33,250.00 16,625.00 15,432.27 (1,192.73) Expenditures XXX Measure M Gifted - - - - Revenues Over (Under) Expenditures 33,250.00$ 16,625.00$ 15,432.27$ (1,192.73)$ 30 - MEASURE W Revenues 508 Grant Revenues 105,000.00$ 52,500.00$ 104,950.33$ 52,450.33$ 670 Interest Earned 500.00 250.00 - (250.00) Total Revenues 105,500.00 52,750.00 104,950.33 52,200.33 Expenditures 913 Storm Water Management - 30%31,650.00 15,825.00 - 15,825.00 914 Storm Water Management - 70%73,850.00 36,925.00 24,246.11 12,678.89 105,500.00 52,750.00 24,246.11 28,503.89 Revenues Over (Under) Expenditures -$ -$ 80,704.22$ 80,704.22$ 40 - CAPITAL PROJECTS FUND Revenues Transfers from General Fund 821,880.75$ 410,940.38$ -$ (410,940.38)$ 821,880.75 410,940.38 - (410,940.38) Expenditures 887 Sewer Feasibility Project 32.50 16.25 - 16.25 899 Outdoor Siren System - Design & Constr 161,771.25 80,885.63 117,532.50 (36,646.88) 890 Consulting Fees 21,000.00 10,500.00 - 10,500.00 934 Equestrian Fence Replacement 6,799.50 3,399.75 - 3,399.75 935 Tennis Court Improvenments 298,708.75 149,354.38 8,405.10 140,949.28 947 Non-Building Improvements - - - - 948 City Hall Improvements 7,342.75 3,671.38 14,947.75 (11,276.38) 949 Battery/Solar Back-Up 221,500.00 110,750.00 - 110,750.00 961 Middleridge Road Emergency Storm Drain Repairs 71,173.00 35,586.50 - 35,586.50 962 Phase 1 Bifurcated 8" Sewer Main Engineering 19,463.00 9,731.50 536.25 9,195.25 963 Generator & Waterproof Removal and Electrical Svcs 6,994.00 3,497.00 - 3,497.00 964 HVAC Replacement Project 7,096.00 3,548.00 - 3,548.00 Total Expenditures 821,880.75 410,940.38 141,421.60 269,518.78 Revenues Over (Under) Expenditures -$ -$ (141,421.60)$ (680,459.15)$ 2 104 ATTACHMENT E Pro-Rated Amended Budget Variance Budget (50%)Actuals Fav (Unfav) 50 - REFUSE FUND Revenues 665 Service Charges 1,005,336.00$ 502,668.00$ 405,595.28$ (97,072.72)$ Total Revenues 1,005,336.00 502,668.00 405,595.28 (97,072.72) Expenditures 815 Refuse Service Contract 981,336.00 490,668.00 490,497.00 171.00 999 Transfers Out 24,000.00 12,000.00 12,000.00 - Total Expenditures 1,005,336.00 502,668.00 502,497.00 171.00 Revenues Over (Under) Expenditures -$ -$ (96,901.72)$ (96,901.72)$ 3 105 ATTACHMENT F Res.Account No.Date Description Amount Type Number Budgeted Surplus (Deficit)19,977.00$ Carryovers (844,986.80) FY 2024/25 Amendments 1379 10/28/24 ADA Improvements at City Hall (4,000.00) One-Time 01-00-999 1382 10/28/24 Emergency Plumbing Repairs (23,485.00) One-Time 01-75-930 Total Amendments thru 12/31/24 (27,485.00) Total Budgeted Use of Reserves (852,494.80)$ Fund Balance - June 30 ,2024 4,679,694.61 Budgeted Use of Reserves (852,494.80) Reserve for Contingencies (2,596,685.00) Reserves Above Policy 1,230,514.81$ CITY OF ROLLING HILLS Summary of Budget Adjustments and Reserves Status Six Months Ended December 31, 2024 106 Agenda Item No.: 13.C Mtg. Date: 02/24/2025 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:ROBERT SAMARIO, FINANCE DIRECTOR THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: CONSIDERATION OF WAIVER OF DIRECT ASSESSMENTS FOR REFUSE DATE:February 24, 2025 BACKGROUND: Many properties on the Palos Verdes Peninsula have been affected by recent land movements. Some properties have lost utility service, while others have sustained structural damage. Any time there is a natural disaster within the County that damages private properties, property owners have the opportunity to file for a re-assessment of their property with the County Assessor's Office to lower the assessed value and thereby receive property tax relief. For any properties that the County Assessor's Office determines qualifies for re-assessment, the property owners also may receive a waiver of any direct assessments placed on the tax roll by local agencies and tied to those properties. However, any waiver of direct assessments must be approved by the respective local agency. As a result of the land movements and potential for property owners receiving property tax relief, the County has reached out to any and all local agencies within the peninsula for which the County collects an assessment on the agencies behalf, and asking each agency to complete an Agency Authorization Form either approving the waiver of direct assessments, denying such waivers, or allowing a waiver of a percent of the assessment. DISCUSSION: The City of Rolling Hills provides refuse services to its residents by a contracted hauler. These services are recovered through direct assessments added to the tax rolls and collected by the County of Los Angeles on the City of Rolling Hills' behalf. The assessment is $1,432 per parcel. The County of Los Angeles has asked the City of Rolling Hills to complete an Authorization Form indicating whether or not the City will grant waivers to any properties that are re- 107 assessed by the Assessor's Office. It is important to note that, while a number of properties have lost utility service as a result of the land movement, City staff is not aware of any properties within the City of Rolling Hills that sustained structural damage that would warrant any re-assessment. However, it is theoretically possible for more land movements to occur between now and the end of the fiscal year (June 30, 2025) that do result in structural damage and, thus, property tax relief. Therefore, the question of whether the City will grant or deny any waiver of direct assessments for refuse services is still important and required by the County. FISCAL IMPACT: Only if the City Council agrees to grant waivers of direct assessments and structural damage is sustained by homes within the City limits that lead to re-assessment by the County Assessor's Office will the City realize any fiscal impact equal to $1,432 for each parcel given relief. RECOMMENDATION: Approve staff recommendation as presented. ATTACHMENTS: 108 Agenda Item No.: 14.A Mtg. Date: 02/24/2025 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:KARINA BAÑALES, CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: CONSIDERATION OF ESTABLISHING POLICIES TO PREVENT FRAUDULENT ACTIVITY (MAYOR PRO TEM DIERINGER) DATE:February 24, 2025 BACKGROUND: Every organization needs to ensure it has a good system of internal controls in place to provide reasonable safeguards to protect against fraud, theft, misappropriation of funds, etc. While no system of internal controls can provide absolute protection against these types of incidents, having good systems in place to create a deterrence and increase the likelihood that such instances of malfeasance are identified quickly is extremely important. Questions have been raised by Council about the efficacy of the City of Rolling Hill’s internal controls and whether it was appropriate to hire an independent professional to evaluate the City’s currently internal control systems to both identify areas needing improvement and to identify areas that might be deemed lacking and thus create opportunities for theft, fraud, and so forth. While the City has some financial controls in place, opportunities for improvement remain. For instance, staff recently identified an invoice, from an approved city vendor, billing the City for a service that the City did not receive, which was flagged. Although the issue was promptly resolved due to the diligence of City personnel, it underscores the importance of formalized policies and procedures to proactively prevent and detect fraudulent activity. This evening, Staff will seek direction from City Council on establishing formal policies and procedures or hire an independent professional to enhance internal financial controls and prevent fraudulent activity. DISCUSSION: 109 The City has existing financial policies, but some may be outdated and in need of revision. For example, in 2007, the City Council adopted an investment policy to protect, preserve and maintain the assets of the City. This was to ensure that the City invest public funds in a manner that will provide the highest investment return commensurate with maximum security while meeting the cash flow demands of the City and conforming to all State and Local statutes governing the investment of public funds (Attachment A). This policy was then revised and adopted in 2018. The City also has financial, budget and debt policies that was recently revised and adopted in 2022. To enhance fraud prevention efforts, the City has consulted neighboring agencies, including Rancho Palos Verdes, Palos Verdes Estates, and Rolling Hills Estates, to obtain sample financial control policies and procedures. Additionally, the California Joint Powers Insurance Authority (JPIA) has provided access to established policies from other agencies, such as the City of Camarillo, that may serve as a model for Rolling Hills. Some excerpts of these procedures are included in Attachment C. Staff has also explored the possibility of an internal controls review by an external firm to further strengthen financial safeguards. These firms can assess financial operations at various levels, ranging from a city-wide financial assessment to an executive report with findings and recommendations, as well as the development of detailed processes and procedures. The cost of these assessments starts at approximately $5,000 for a basic review, with additional costs depending on the depth of the evaluation. Alternatively, the City can refine and implement best practices from other agencies without engaging an external firm. The Finance Director can offer insights based on experience with other municipalities and assist the City develop a formal fraud prevention policy and financial procedures that can enhance accountability while adding additional layers of oversight. CONCLUSION The City of Rolling Hills is committed to maintaining strong financial integrity and preventing fraudulent activity. By reviewing and updating internal controls, adopting best practices from peer agencies, implementing a fraud reporting mechanism, and considering an external assessment where necessary, the City can enhance its financial oversight and reduce the risk of fraud. In addition, the City should put more attention to the documentation and formalization of its policies, processes, and procedures. While processes and procedures are in place, they are not written down and formally adopted. This would not only help ensure consistency, particularly when the City has staff turnover, but it would provide an opportunity to evaluate current processes and procedures and make changes as necessary to strengthen current internal controls. Staff seeks direction from the City Council on the preferred approach to strengthening the City of Rolling Hills' financial policies and procedures. 110 FISCAL IMPACT: Unknown at this time. RECOMMENDATION: Direct Staff on the preferred approach to strengthening the City of Rolling Hills' financial policies and procedures. ATTACHMENTS: Attachment A - RH FN_Investment Policy.pdf Attachment B - RH FN_POL_221010_AdminProcedures_BudgetDebtPolicies.pdf Attachment C - FN_Agency Samples.pdf 111 INVESTMENT POLICY 4/24/2017 1 CITY OF ROLLING HILLS ADMINISTRATIVE POLICY/PROCEDURES INVESTMENT POLICY Original Version Effective: 09/24/2007 See end of document for complete policy history. Current Version Effective: 04/09/2018 1.0 Policy It is the policy of the City of Rolling Hills to protect, preserve and maintain the assets of the City. It shall invest public funds in a manner that will provide the highest investment return commensurate with maximum security while meeting the cash flow demands of the City and conforming to all State and Local statutes governing the investment of public funds. 2.0 Scope The City follows the practice of pooling cash and investments of all funds, except for funds in the City’s employee deferred compensation plan. Funds contained in the City’s pool are designated the “General Portfolio.” These funds are accounted for in the Financial Statements of the City and include: The General Fund All Special Revenue Funds All Capital Projects Funds All Enterprise Funds All Internal Service Funds All Trust and Agency Funds The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The City’s deferred compensation plans assets are with Nationwide Retirement Solutions and ICMA Retirement Corporation. The Nationwide Retirement Solutions and ICMA Retirement Corporation invests employee account assets in various investment options as directed by the individual employee. Accordingly, these assets are neither controlled by the City nor subject to this investment policy. 3.0 Prudence The City holds to the “prudent investor standard” in that all investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived and acting as a fiduciary of the public trust. The prudent investor standard set forth in Section 53600.3 of the Government Code states: “When investing, reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, a trustee shall act with care, skills, prudence and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with the like aims to safeguard the principle and maintain the liquidity needs of the agency.” 112 INVESTMENT POLICY 4/24/2017 2 4.0 Objectives The primary objectives, in priority order, of the City of Rolling Hills’ investment activities shall be: 4.1. Safety: Safety of principal is the foremost objective of the investment program. “Safety” means that the overall value of City funds shall not be diminished in the process of securing and investing those funds or over the duration of the investments. 4.2. Liquidity: The City of Rolling Hills’ investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. The liquidity of each type of investment is included in its description in the “Authorized Investments” section of this policy. 4.3. Return on Investment (Yield): The City of Rolling Hills investment portfolio shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow characteristics of the portfolio. In general, the California Government Code limits authorized investments to those classes of securities which have lower risk (and therefore lower yields) than other higher risk investment choices. In each investment transaction, the anticipated return on investment is subordinate to the preceding requirement of credit and investment risk. 5.0 Delegation of Authority The City Council has the authority to select financial institutions for the City’ investment and bank accounts. The City Council has designated the City Council Finance / Budget Committee, the City Manager, and the City Finance Director with the responsibility for decisions and operations for the following investment and operating bank accounts: Operating Bank Accounts • Local Agency Fund administered by the Treasurer of the State of California • Money market savings accounts • Checking accounts Certificates of Deposits/Negotiable Certificates of Deposits or Time Deposits Certificates of Deposits, Negotiable Certificates of Deposit or Time Deposits with commercial banks and /or savings and loan associations issued by a nationally or state-chartered bank, a savings association, or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union with maturities ranging from 30 days to three years. 113 INVESTMENT POLICY 4/24/2017 3 6.0 Ethics and Conflicts of Interest: Officers and employees involved in the investment process are required by the City of Rolling Hills’ and State Government Code Section 81000 to disclose annually to the City Council any material financial interests in financial institutions that conduct business with the City and further to disclose any large personal financial / investment positions that could be related to the performance of the City, particularly with regard to the time of purchase and sales, as part of the City’s conflict of interest reporting requirements. Said employees are also prohibited from accepting gifts proffered as a direct result of being employees of the City. 7.0 Authorized Financial Dealers, Institutions and Portfolio Managers: The Finance Director will maintain a list of financial institutions authorized to provide investment services, including portfolio management. No public deposit shall be made except in a qualified public depository as established by State law. Financial institutions authorized to provide investment services to the City, including portfolio management, shall utilize security broker / dealers who are duly licensed and authorized to provide investment services in the State of California. Anyone providing financial services to the City, including portfolio management must adhere to the City’s investment policies as adopted by the City Council. 8.0 Authorized and Suitable Investments: The surplus funds of the City may be invested in any of the following list of eligible securities. Surplus funds are defined as those funds not immediately needed for City operations excepting those minimum balances required by the City’s banks as compensation for services rendered to the City, or such other funds as otherwise determined by the Finance Director or City Manager. The list of eligible securities is drawn from the approved investments contained in the California Government Code Sections 53600 et seq., limited further by the provisions of this policy. For eligibility as a City investment, the following restrictions should be added to those contained in the California Government Code Sections 53601 et seq. They are: 8.1 U.S. Treasury Bonds, Notes & Bills – “Strips” and “Cubes” The principal and interest portions of U.S. Treasury securities are issued by the Federal Government. Frequently, broker / dealers make a market in these securities by separating the principal and interest components and marketing them separately. The principal portions of their “stripped” securities are marketed at deep discounts. “Strips” and “Cubes” do not provide income streams during the term of the investment, but rather pay a “par” amount at maturity. This makes these investments somewhat more volatile than standard U.S. Treasury securities. The City will not invest in “strips” or “cubes.” 8.2 U.S. Government Agencies There are numerous government agencies listed which issue debt instruments but many lack the liquidity necessary to fit the City’s portfolio requirements possibly including, for example, the issues of Federal Farm Credit Bank, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Bank, and the Student Loan Mortgage Corporation. The City will not purchase these government agency securities. 114 INVESTMENT POLICY 4/24/2017 4 8.3 Repurchase Agreements A repurchase agreement is a contractual agreement between a financial institution or dealer and the City in which the City lends its funds to the financial institution or dealer for a certain number of days at a stated rate of interest. In return, the City takes title to securities as collateral until the funds and interest are repaid. The City will not enter into repurchase agreements. 8.4 Medium Term Corporate Notes The City will not purchase medium term corporate notes. 8.5 Commercial Paper and Corporate Bonds The City will not purchase commercial paper or corporate bonds. 8.6 Prohibited Investments The list of eligible securities contained in the California Government Code is extensive and includes a number of categories which are not suitable investments for City funds because of limitations in the liquidity of the instruments or the interest rates obtainable thereon. The categories in the list which have such limitations are: The notes or bonds or any obligations of the State of California or of any local agency or district of the State of California. Notes, bonds or other obligations issued by any other state or the Commonwealth of Puerto Rico. The city shall not invest any funds pursuant to Section 53600, et. Seq., in any security that could result in zero interest accrual if held to maturity. 9.0 Collateralization: All City of Rolling Hills’ investments shall be collateralized as required by the State Government Code. 10.0 Maximum Maturities: To the extent possible, the City of Rolling Hills will match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than one (3) years from the date of purchase. 11.0 Internal Control: The City’s external auditor with the support from the Finance Director shall annually conduct an independent review of the internal controls. Additionally, the City’s external auditor with support from the Finance Director will annually perform a financial audit. Both may be conducted at the same time, when the City’s annual financial audit performed. The external auditor will be an independent certified public accountant who performs his work under generally accepted auditing standards as adopted by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants. 115 INVESTMENT POLICY 4/24/2017 5 12.0 Performance Standards: The investment portfolio shall be designated with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs of the City. 13.0 Investment Policy Adoption: The City Council shall consider and adopt a written Investment Policy annually and accept quarterly Investment Reports as provided in Government Code Section 53646 et al. Policy Administrative History: Adopted September 24, 2007 Revised and Adopted February 23, 2009 Revised and Adopted March 8, 2010 Reviewed and Adopted February 28, 2011 Reviewed and Adopted May 14, 2012 Reviewed and Adopted April 22, 2013 Reviewed and Adopted March 24, 2014 Reviewed and Adopted April 27, 2015 Reviewed and Revised April 25, 2016 Reviewed and Adopted April 24, 2017 Reviewed and Adopted April 09, 2018 116 65277.00001\40089220.1 FINANCIAL POLICIES 10/10/2022 1 CITY OF ROLLING HILLS ADMINISTRATIVE POLICY/PROCEDURES FINANCIAL, BUDGET AND DEBT POLICIES Original Version Effective: 09/24/2007 See end of document for complete policy history Current Version Effective: 10/10/2022 Policy Framework: The purpose of the Financial, Budget and Debt Policies is to guide the City Council and other City officials in developing sustainable, balanced budgets and managing the City’s finances in a prudent manner consistent with best practices. The City’s commitment to adopting and operating within a balanced budget is a core financial value and policy of the City. The City of Rolling Hills Financial Policies represents the City’s framework for planning and management of the City’s fiscal resources. Adherence to the Financial Policies promote sound financial management which can lead to unqualified annual audits, provide assurance to the taxpayers that tax dollars are being collected and spent per City Council direction and provide a minimum of unexpected impacts upon taxpayers and users of public services. The City Council Finance / Budget Committee shall serve as the City’s audit committee for the purpose of recommending the selection of an auditor to the City Council, meeting with the City Auditor, reviewing the annual audit and necessary financial statements, responding to conflicts between management and the auditor and responding to fraudulent activities. The City Council will conduct a competitive process for the selection of the independent external auditor every 6 years to be in conformance with California Government Code Section 12410.6(b). Any non- audit work performed by the independent external auditor, if allowed, will be done under a separate contract approved by the City Council. The City Manager shall be responsible for developing and, as appropriate, implementing and managing these policies as well as subsidiary policies that execute the City’s Financial Policies. The City’s Financial Policies shall be in conformance with all state and federal laws, generally accepted accounting principles (GAAP) and standards of the Governmental Accounting Standards Board (GASB) and the Government Finance Officers Association (GFOA). 117 65277.00001\40089220.1 FINANCIAL POLICIES 10/10/2022 2 1. Financial Reporting Entity: The City of Rolling Hills was incorporated in 1957 under the general laws of the State of California. The City operates under the Council-Manager form of government. The City Council consists of five members elected at large for overlapping four-year terms. The Mayor and Mayor Pro-Tem are selected from the City Council members and serve a one- year term. The City Council appoints a City Manager, City Attorney and City Treasurer. In addition, the City Council appoints the members of advisory Commissions and Committees. The City, directly or by contract, provides municipal services as authorized by statute. Services provided include: • Public safety through the Los Angeles County Sheriff and Fire Department • Refuse collection by contract with a private hauler • Water through California Water Service Company • Sewer through Los Angeles County Sanitation Districts • Recreation • Public improvements • Planning and zoning • General administrative and support services 2. Financial Reporting Policies: The City’s accounting and financial reporting systems will be maintained in conformance with all state and federal laws, generally accepted accounting principles (GAAP) and standards of the Governmental Accounting Standards Board (GASB) and the Government Finance Officers Association (GFOA). Further, the City will make every attempt to implement all changes to governmental accounting practices at the earliest practical time. • The financial report should be in conformity with GAAP, demonstrate compliance with finance related legal and contractual provisions, disclose thoroughly with detail sufficient to minimize ambiguity and potential for misleading interferences. • An annual audit will be performed by an independent public accounting firm with an audit opinion to be included with the City’s published Comprehensive Annual Financial Report. • The City’s budget should satisfy criteria as a financial and programmatic policy document, as a comprehensive financial plan, as an operations guide for all organizational units and as a communications device for all significant budgetary issues, trends, and resource choices. • The City shall evaluate the fiscal impact of proposed changes in employee benefits to be provided. Prior to assuming liability for expanded benefits, 118 65277.00001\40089220.1 FINANCIAL POLICIES 10/10/2022 3 a viable funding plan with estimates of long term impacts shall be incorporated into the analysis. • The City shall endeavor to avoid committing to new spending for operating or capital improvement purposes until an analysis of all current and future cost implications is completed. • The City shall endeavor to maintain cash reserves sufficient to fully fund the next present value of accruing liabilities, obligations to employees for vested payroll and benefits and similar obligations as they are incurred. • The City shall prepare and present to the City Council monthly interim revenue and expenditure reports and a Mid-Year Review to allow evaluation of potential discrepancies from budget assumptions. 3. Internal Control Accounting Policies: To provide a reasonable basis for making management’s required representations concerning the finances of the City. • Accounting Records – Maintain accounting records in accordance with Generally Accepted Accounting Principles (GAAP). • Monthly Posting – Post a monthly record, which maintains each month’s activities separate and distinct from another month’s work. This provides visibility in locating errors and fixing corrections. Accounting ledgers will be reviewed and reconciled on a monthly basis to supporting documentation – Cash Receipts, Accounts Payable, Payroll and Monthly Journal Entries. • Sequential Number – Sequentially numbered instruments will be used for checks and cash receipts. Pre-numbered receipts are controlled and accounted for by an individual with no accounting handling responsibilities. The City’s pre-numbered checks and pre-numbered cash receipts should be safeguarded in the Vault. All copies of voided receipt forms are retained, accounted for, and documented. • Audit Trail – The City’s accounting records and systems shall provide an audit trail (e.g. paper document) that allows for the tracing of each transaction from its original document to completion. 4. Operating Management Policies: The budget process is intended to weigh all competing requests for City resources within expected fiscal constraints. Requests for new, on-going programs made outside the budget process will be discouraged. 119 65277.00001\40089220.1 FINANCIAL POLICIES 10/10/2022 4 • Budget development will consider multi-year implications of current decisions and allocations and use conservative revenue forecasts. • Revenues will not be dedicated for specific purposes, unless required by law or Generally Accepted Accounting Practices (GAAP). All non- restricted revenues will be deposited in the General Fund (or other designated fund as approved by the City Manager) and appropriated by the City Council. • Current revenues will fund current expenditures. City revenues will be managed to protect programs from short-term fluctuations that impact expenditures. • The City will endeavor to identify entrepreneurial solutions to cover or recover costs of operating program. • The City shall strive to avoid returning to the City Council for new or expanded appropriations during the fiscal year. Exceptions may include emergencies, unforeseen impacts, mid-year adjustments or new opportunities. • Additional personnel will be requested after service needs have been thoroughly examined and is substantiated for new program initiatives or policy directives. • All non-Enterprise user fees and charges will be evaluated at least every three years to determine the direct and indirect cost recovery rate. The analysis will be presented to the City Council. • The City shall endeavor to maintain adequate cash reserves to fund 100% replacement of capital equipment. Replacement costs will be based upon equipment lifecycle financial analysis developed by the Finance Director and approved by the City Manager. • Balanced revenue and expenditure forecasts will be prepared to examine the City’s ability to absorb operating costs due to changes in the economy, service demands, and capital improvements. The forecast will be updated annually and include a four-year outlook. • Cash and investment programs will be maintained in accordance with the Government Code and the adopted investment policy will ensure that proper controls and safeguards are maintained. City funds will be managed in a prudent and diligent manner with an emphasis on safety of principal, liquidity, and financial return on principal, in that order. Pursuant to State law, the City, at least annually, revises and the City Council affirms a detailed investment policy. 120 65277.00001\40089220.1 FINANCIAL POLICIES 10/10/2022 5 5. Capital Management Policies: • Capital improvement projects are defined as infrastructure or equipment purchases or construction which results in a capitalized asset and having a useful (depreciable) life of at least one year with a cost of $5,000 or more per the City’s resolution Number 953. • The Finance Department shall utilize the straight-line method of calculating depreciation over the estimated useful life for all classes of assets. • The capital improvement plan will attempt to include, in addition to current operating maintenance expenditures, adequate funding to support, repair and replace deteriorating infrastructure and avoid a significant unfunded liability. • Capital improvement lifecycle costs will be coordinated with the development of the City’s operating budget. Future operating, maintenance, and replacement costs associated with new capital improvements will be forecast, matched to available revenue sources and be included in the operating budget. Capital project contract awards or purchases will include a fiscal impact statement disclosing the expected operating impact of the project or acquisition and when such cost is expected to occur. 6. Reserve Policies: Given the City’s vulnerability to natural disasters, such as flooding, mudslides, earthquakes, and wildfires, the City has established a requirement pursuant to this policy document of maintaining a General Fund operating reserve in the form of cash and investments of at least 100% of prior year audited annual General Fund revenues. These funds will be available to not only address the immediate and short-term financial impacts of a natural disaster, but also to cover other unforeseen events and circumstances that have a material financial impact to the General Fund. In addition, these reserve policies establish the following requirements and/or guidelines: • One-time revenue windfalls should be designated as a reserve or used for onetime expenditures. The funds should not be used for on-going operations. For purposes of this policy, one-time revenue windfalls shall include: - CalPERS rebates - Tax revenue growth in excess of 10% in a single year - Unexpected revenues (e.g., litigation settlement) - Any other revenues the City Council may elect to designate as extraordinary • All unexpended General Funds from the prior fiscal year will be deposited in the General Fund Reserve Fund (Rainy Day Fund.) 121 65277.00001\40089220.1 FINANCIAL POLICIES 10/10/2022 6 • The City will strive to maintain the Municipal Self-Insurance Fund with a July 1 balance of $250,000. • The City will strive to transfer $250,000 annually into the Utilities Fund for the purpose of building up the necessary balance for underground projects. • Enterprise Fund (e.g., for refuse collection) user fees and charges will be examined annually to ensure that they recover all direct and indirect costs of the service, provide for capital improvements and maintenance and maintain adequate reserves. Moreover, maintenance of cash reserves will provide a de facto rate stabilization plan. Rate increases shall be approved by the City Council following formal noticing and public hearing. Rate adjustments for enterprise operations will be based on five-year financial plans unless a conscious decision is made to the contrary. The current cash reserves shall be adjusted annually and will be equal to the proposed annual General Fund subsidy to the Refuse Fund and will be budgeted as a Transfer into the Refuse Fund. • The City has established a Pension Rate Stabilization Program Section 115 Trust. The Trust was created to fund the City’s unfunded PERS Pension Liability. As funds are available they would be deposited into the Trust in order to maintain adequate reserves. 7. Budget Policies: The function of the City of Rolling Hills is primarily administrative. A. Categories of Funds • The City’s annual budget contains fifteen different funds managed in conformance with the City’s Fund Balance Policy: General Fund Community Facility Fund Self-Insurance Fund Refuse Fund Traffic Fund Transit Fund - Proposition A Transit Fund - Proposition C Transit Fund – Measure R Transit Fund – Measure M LA County Measure W Capital Projects Fund Citizens Options for Public Safety Fund (COPS) Fund California Law Enforcement Equipment Program (CLEEP) Fund. Utility Fund OPEB (Post-Employment Benefits Other Than Pensions) Fund • Each fund is considered to be a separate accounting entity for budgeting and financial reporting purposes. 122 65277.00001\40089220.1 FINANCIAL POLICIES 10/10/2022 7 • The operations of each fund are accounted for by providing a separate set of self- balancing accounts which are comprised of each fund’s assets, liabilities, equity, revenues and expenditures, as appropriate. • The City resources are allocated to and for individual funds based upon the purpose of the spending activities. • All funds and reserves will be evaluated annually for long-term adequacy and use requirements in conjunction with development of the City’s long-term budget assumptions. • For approved capital projects unexpended budget appropriations would be reviewed annually by the Finance/Budget/Audit Committee for recommendation for carryover to the following fiscal year. B. Operating Budget Guidelines • The Budget is detailed - Expenditures are authorized line by line, item by item. Line items are used to limit precisely the amount and narrowly define what can be spent. • The Budget is annual - The annual budget period is from July 1 to June 30. The time span of the authority to spend is restricted to one year. Each year the regular cycle of budgeting is repeated. • The budget is comprehensive – The budget is prepared for all funds expended by the City. • The City adopts a budget by June 30 of each year. • Comparative Data - Comparative data from the prior year is presented in the annual budget in order to provide an understanding of changes in the City’s financial position and operation. • Public Hearing - The City Council reviews a tentative budget and adopts the final budget. A public hearing is conducted to receive comments prior to adoption. C. Financial Review Throughout the fiscal year, monthly financial reports comparing actual amounts with budgeted amounts are prepared by the Finance Director and submitted to the City Manager and members of the City Council. As these reports are reviewed, attention is drawn to variances between budgeted amounts and actual amounts. D. Budgeted Revenues & Expenditures The City reviews fees and charges to keep pace with the cost of providing the service. 8. Debt Management Policies: 123 65277.00001\40089220.1 FINANCIAL POLICIES 10/10/2022 8 The City will seek to avoid incurring debt. While the City is disposed to funding capital improvements and expenditures on a cash basis, the City will consider, and when necessary, enter into debt financing for citywide public improvement projects such as sewers and utility undergrounding. • Lease Equipment - Office Equipment has been leased on a monthly basis with the expense incurred at the time of payment. Policy Administrative History: Adopted September 24, 2007 Revised and Adopted March 24, 2008 Revised and Adopted February 23, 2009 Revised and Adopted March 8, 2010 Reviewed and Adopted February 28, 2011 Revised and Adopted May 23, 2011 Reviewed and Adopted May 14, 2012 Reviewed and Adopted April 22, 2013 Revised and Adopted September 9, 2013 Reviewed and Adopted March 24, 2014 Reviewed and Adopted April 27, 2015 Reviewed and Revised April 25, 2016 Reviewed and Adopted April 24, 2017 Reviewed and Adopted April 22, 2019 Reviewed and Adopted May 11, 2020 Reviewed and Adopted May 23, 2022 Reviewed and Adopted October 10, 2022 124 125 126 127 128 129 130 131 132 133 134 135 136 City of Camarillo CITY COUNCIL POLICY Section: Procurement Date Adopted: March 22, 1989 Last Amended: October 28, 2020 Subject: Procurement Number: 4.01 Page 1 of 23 INDEX Section A – Ethical Standards Section B – Procurement Manual Section C – Responsibilities of the Purchasing Officer Section D – Responsibilities of Departments Section E – Vendor Relations Section F – Unauthorized Purchases Section G – Purchasing Thresholds Section H – Purchasing Methods Section I – Professional Services Section J – Bidding Section K – Information Technology Purchases Section L – Uniform Guidance Federal Procurement Standards Section M – Surplus Property Section N – Credit Card Section O – Definitions PURPOSE To establish efficient procedures for the procurement of goods, equipment, and services at the lowest possible cost commensurate with quality needed; to exercise p ositive financial control over purchases; to clearly define authority for the purchasing function; and to assure the quality of purchases. This Policy is not intended to address every issue, exception, or contingency that may arise in the course of procurement activities. The basic standard that should always prevail is to exercise good judgment in the use and stewardship of City resources, including keeping within the budget authorized by the City Council. POLICY The Policy contained herein was developed under the authority of Chapter 2.34 of Title 2 of the Camarillo Municipal Code. The City Manager is designated as the Purchasing Officer for the City and may delegate the administration of this Policy. The Purchasing Officer is charged with the responsibility and authority for coordinating and managing the purchase of the City’s good, equipment, and services according to this Policy. 137 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 2 of 23 Adopted 4.01, 10/28/2020 The Policy outlined herein is to be adhered to by the Purchasing Officer and all departments when purchasing goods, equipment, and services. This Policy strives to define decision making with prudent review and internal control procedures and to maintain departmental responsibility and flexibility in evaluating, selecting and purchasing goods, equipment, and services. Pursuant to City of Camarillo Municipal Code, Title 2, Chapter 2.35, the City Council has elected to become subject to the Uniform Public Construction Cost Accounting Act (UPCCAA) as established by the California Uniform Construction Cost Accounting Commission for Public Projects as defined on page 21. Procurement bidding procedures and all dollar amounts of Public Project contracts are subject to the regulations contained in the UPCCAA under Section 22000, et seq. of the California Public Contract Code and not by this Procurement Policy. A. Ethical Standards The City strictly adheres to the laws and regulations of the Fair Political Practices Commission (FPPC) that apply to purchasing, all of which are available at http://www.fppc.ca.gov./. Additionally, the City is sensitive to what constitutes unethical purchasing behavior and what, while legal, constitutes the appearance of unethical behavior. Employees are expected to give primary consideration to the interests of the City, which means seeking to obtain the maximum value for each dollar expended, while remaining fair and impartial. City employees must not make any attempt to realize personal gain directly or indirectly through a purchase or service provided to the City. In addition, this policy specifically prohibits practices which might result in unlawful activity including, but not limited to, rebates, kickbacks, or other unlawful consideration, and specifically prohibits government agency employees from participating in the selection process when those employees have a relationship with a person or business entity seeking a contract under this section which would subject those employees to the pro hibition of Section 87100 of the Government Code. B. Procurement Manual Pursuant to this Procurement Policy, the Purchasing Officer will approve and implement a manual of purchasing procedures. C. Responsibilities of the Purchasing Officer The Purchasing Officer is charged with the responsibility and authority for coordinating and managing the purchase of the City’s goods, equipment, and services according to this Policy. The Purchasing Officer is responsible for 1) the purchase of general goods, equipment, and services; 2) the administration of the Procurement Policy; and 3) the management of surplus City property. To perform these functions efficiently and assist departments, the Purchasing Officer will: 138 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 3 of 23 Adopted 4.01, 10/28/2020 1. Be charged with the responsibility and authority for coordinating and managing the purchase of the City’s general goods, equipment, and services from the lowest responsive and responsible bidder when required by this Policy. 2. Ensure full and open competition on all purchases as required by this Policy. 3. Identify, evaluate, and utilize purchasing methods which best meet the needs of the City (i.e., cooperative and/or piggyback purchases/ agreements, blanket purchase orders, contractual agreements, etc.). 4. Assist all departments with research and recommendations in developing specifications; review specifications for completeness of information to ensure specifications are not unnecessarily restrictive. 5. Recommend revisions to Procurement Policy and procurement manual when necessary and keep informed of current developments in th e field of public purchasing. 6. Provide and maintain all forms and records necessary for the efficient operation of the purchasing function. 7. Act as the City’s agent in the transfer and disposal of surplus equipment and materials. 8. Make purchase award recommendations to the appropriate authority. D. Responsibilities of Departments Departments are charged with the following respo nsibilities in the purchasing process: 1. To submit to the Purchasing Division at the beginning of each fiscal year, or upon personnel changes, an updated authorized signature list designating those individuals who are delegated the authority to make purchases per this Policy. 2. To submit to the Purchasing Officer, at the beginning of each fiscal year, a list of vendors currently under contract by the department, setting forth the name of vendors, type of services, cost of contracts, length of contracts and date entered into, and the number of years retained by the City. 3. To anticipate requirements sufficiently in advance to allow adequate time to obtain goods in accordance with the best purchasing practices. 4. To coordinate vendor relations, locate sources of supply, and evaluate vendor performance. 139 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 4 of 23 Adopted 4.01, 10/28/2020 5. To communicate and coordinate purchases of products with the Purchasing Officer, as necessary. 6. To provide detailed, accurate specifications to ensure goods, equipment, and services obtained are consistent with requirements and expectations. 7. To prepare requisitions in accordance with instructions as provided in the Procurement Manual. 8. To inform the Purchasing Division of any vendor relations problems, shipping problems, (i.e., damaged goods, late delivery, wrong items delivered, incorrect quantity delivered, etc.) and any situation which could affect the purchasing function. 9. To minimize sole source purchases and to provide written documentation when such purchases may be necessary. 10. To review all bids received for compliance with specifications and provide the Purchasing Division with written documentation supporting the award of contract or purchase order. 11. To notify vendors of purchase award when authorized by the Purchasing Officer. 12. To not “split” orders for the purpose of avoiding purchasing requirements. 13. To consider the use of recycled products when practical and economically feasible. 14. To coordinate volume bids of repetitive requirements (i.e., the frequent purchase of items such as chemicals, paper goods, etc., which annually exceed the authorized purchasing thresholds) and consultant contracts that can be used among multiple departments. 15. To ensure that vendors are in compliance with the City’s Risk Management Policy, 5.01, and, when applicable, have an active business tax certificate. E. Vendor Relations It is to the City’s advantage to promote and maintain good relationships with its vendors. The Purchasing Division and operating department staff shall conduct their dealings with vendors in a professional manner and shall promote equal opportunity and demonstrate fairness, integrity, and courtesy in all vendor relations. When feasible to do so, vendors within the City of Camarillo should be utilized for goods, equipment, and services. 140 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 5 of 23 Adopted 4.01, 10/28/2020 F. Unauthorized Purchases Except in the case of an emergency or an urgency, no purchase of goods, equipment, and services shall be made without a previously authorized purchase order or contract as required by this policy. Otherwise: 1. Such purchases are void and not considered an obligation of the City. 2. Invoices without an authorized purchase order may be returned to the department or vendor unpaid. 3. The person ordering the unauthorized purchase may be held personally liable for the costs of the purchase or contract and subject to disciplinary action and/or termination. G. Purchasing Thresholds The following purchasing dollar limits apply per vendor per fiscal year except for Public Projects: 1. Purchases up to $5,000: The authority to award is the Department Director. Comparative pricing is not required but must be used when practical. Prudent judgment must be used at all times. All departments may purchase goods, equipment, and services of up to $5,000 without competitive bidding. 2. Purchases over $5,000 and up to $30,000: The authority to award is the Purchasing Officer. The informal bid process is described in Section J2. All departments must endeavor to obtain three written bids except for the provisions under Section H.4 through H.9. 3. Purchases over $30,000: The authority to award is the City Council through a Formal Bid Process. The formal bid process is described in Section J3. H. Purchasing Methods Prior to beginning work, vendors must have, and maintain , certain types of insurance coverage appropriate for the services to be performed. 1. Purchase Orders A Purchase Order is issued to a vendor to authorize purchases of goods, equipment, and services. The purpose of a Purchase Order is to: a. Ensure compliance with this Procurement Policy. 141 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 6 of 23 Adopted 4.01, 10/28/2020 b. Encumber funds when an unencumbered appropriation exists in the fund. The Procurement Policy allows for exemptions from Purchase Order requirements and examples of such exemptions include acquiring land, utility payments, payments to other governmental agencies, and debt service payments. A list of exemptions is outlined in the Procurement Manual. Purchasing thresholds referenced in Section G of this Policy, apply to Purchase Orders. 2. Blanket Purchase Orders A Blanket Purchase Order is an agreement whereby the City contracts with a vendor to provide goods, equipment, and services on an as needed and often over-the-counter basis. Blanket Purchase Orders provide a mechanism whereby items which are uneconomical to stoc k may be purchased in a manner that allows field operations timely access to necessary materials. The Purchasing Division shall review Blanket Purchase Order requests based upon the following criteria: a. Geographic location b. Responsiveness and capabilities c. Average dollar value and type of items to be purchased d. Frequency of need Once a Blanket Purchase Order is issued to a vendor, any authorized City employee may contact the vendor direc tly to place orders per the terms and conditions specified in the Blanket Purchase Order. Purchasing thresholds referenced in Section G of this Policy, apply to Blanket Purchase Orders. 3. Contracts Contracts should be prepared for purchases of goods, equipment, and services as stated in the Procurement Manual. Contract templates are established and updated by the City Attorney’s Office. A list of contract templates is outlined in the Procurement Manual. All City contracts must be prepared on City contract templates unless approved by the City Attorney. 142 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 7 of 23 Adopted 4.01, 10/28/2020 4. Contract Amendments After contract award, amendments may need to reflect changes in the scope of goods or services, not-to-exceed amount, and/or terms. Contracts that were originally approved by the Department Director and/or Purchasing Officer, must be amended by the same authority as long as they do not exceed the authority’s award limit. Contracts that were originally approved by City Council can only be amended by City Council unless amendment authority is delegated by City Council to the Purchasing Officer for the authorized spending amount. All City contract amendments must be prepared on City contract templates unless approved by the City Attorney. Purchasing thresholds referenced in Section G of this Policy, apply to Contract Amendments cumulative of all prior amendments. 5. Cooperative Purchasing The Purchasing Officer may participate in a collective bidding process established by other governmental agencies. If the City takes the lead or otherwise has input on the bidding methods, the City’s standard bidding requirements apply; otherwise the City’s bidding requirements do not apply. In any case, a City purchase order or contract is required. Purchasing thresholds referenced in Section G of this Policy, apply to cooperative purchasing. 6. Piggybacking The Purchasing Officer may utilize an existing purchase order or contract between another governmental agency and a vendor to purchase the same goods (including information technology systems, licenses, software and related technical support) as those listed in that contract. There are four requirements to piggyback: a. The other jurisdiction’s purchase order or contract must have been established following a competitive bid process in which the jurisdiction selected the lowest bidder; b. The term of the City’s contract or purchase order must expire before or on the expiration listed in the other jurisdiction’s contract and/or purchase order; c. The scope of services for a trade service or the specifications of goods must be the same as that which is specified in the other jurisdiction’s contract and/or purchase order without any substantial modifications; and 143 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 8 of 23 Adopted 4.01, 10/28/2020 d. The cost of goods, equipment, and services must be the same as the costs listed in the order jurisdiction’s purchase order and/or contract. To piggyback, the City needs information regarding the other jurisdiction’s bid process and its contract document. If the award calculation included a local preference and was awarded to their local vendor, the bid cannot be used. If piggybacking is used, the City’s standard bidding requirements do not apply; however, a City purchase order and/or contract is still required. Piggybacking is not allowed for public works projects or professional contracts. Purchasing thresholds referenced in Section G of this Policy, apply to piggybacking. 7. Sole Source Purchases Unique goods, equipment, and services that can be obtained from only one vendor, or one distributor authorized to sell in this area, with singular characteristics or performance capabilities or which have specific compatibility components with existing City products are exempt from the competitive bidding requirement and are deemed sole source purchases. Sole source purchases may include proprietary items sold direct from the manufacturer. Proprietary items are those held under exclusive title, trademark, or copyright by a private person or company. A proprietary distributorship would also apply. Specifications which lead to sole source purchases must be avoided whenever possible as they minimize or eliminate competition, unless warranted by the circumstances in the preceding paragraph. Use of brand names in specifications must be for the purpose of describing the standard of quality, performance, and characteristics the City desires and not be intended to limit or restrict competition. All sole source purchases must include written documentation supporting the determination of a sole source, signed by the Department Director and submitted to the Purchasing Division. Purchasing thresholds referenced in Section G of this Policy, apply to sole source purchases. 8. Urgency Purchases Urgency purchases may be made without competitive bidd ing when time is of the essence, and must be made only for the following reasons: a. To preserve or protect life, health or property; or 144 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 9 of 23 Adopted 4.01, 10/28/2020 b. Upon natural disaster; or c. To forestall a shutdown of essential public services; or d. For reasons as determined by the Purchasing Officer. Since urgency purchases do not normally provide the City an opportunity to obtain competitive quotes or properly encumber funds, sound judgment shall be used in keeping such purchases to an absolute minimum. The City Council delegates authority to the Purchasing Officer to authorize an urgency purchase. Anytime the value of urgency purchases exceeds $30,000 in the aggregate for a single urgency purchase, City Council ratification is required within 30 days of purchase. 9. Task Orders A task order is issued based on an approved On-Call Contract for a specified not-to-exceed amount. After entering into an On-Call Contract, task orders can be issued for individual projects with a detailed scope of work. I. Professional Services When contracting for professional services (at fair and reasonable price including but not limited to those services listed in Government Code Section 4526), management, general or special services contracts should only be awarded to consultants who have demonstrated “adequate competence” meaning: an adequate level of experience, competence training, credentials, character, integrity, reputation, financial responsibility, resources, equipment, staffing, and other professional qualifications necessary for more than a satisfactory performance of the services required in the time period needed and price. The information needed to determine that level of competence, other qualifications, and the procedures for selecting such services will be determined by the City department responsible for recommending the professional service agreement. The acquiring of professional services will be procured through a negotiated agreement following a Request for Qualification (RFQ) and/or Request for Proposal (RFP) process. The RFQ and/or RFP must put prospective applicants on notice as to whether they are required to file Conflict of Interest Statements in accordance with Fair Political Practice rules. Consultants/contractors who assist in drafting specifications, and/or who design a project, are prohibited from bidding on the construction project. 145 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 10 of 23 Adopted 4.01, 10/28/2020 Selection of Consultants for Professional Services for Continuing Services Professional consultants providing engineering, land surveying, environmental, landscape architecture, or other similar services may be retained on a continuing basis to provide professional services. The Department Director, with the approval of the Purchasing Officer, may contract on a project-by-project or on a retainer basis for additional work/services without going through the RFQ and/or RFP and selection process. At least every three (3) to five (5) years, these arrangements must be reviewed, and every effort must be made to receive proposals from at least three (3) consultants to perform the same services. This is to ensure the City is receiving the best value for, and performance level of, services contracted. Conflict of Interest Consultants must comply with all regulations and laws dealing with conflict of interest disclosure and reporting. Consultants must not be engaged if a conflict of interest exists. Contracts for services must include requirements, if any, on conflict of interest reporting. Purchasing thresholds referenced in Section G of this Policy, apply to professional services. Exclusions 1. Environmental Review - The process of selecting California Environmental Quality Act (CEQA) and special report consultants for non-City projects will be conducted by the Director of Community Development due to time constraints and applications processing requirements. The final consultant selection and fee will be reviewed and approved by the Purchasing Officer. 2. Debt Issuance - City Council must also review and approve each debt issue in concept. Approval for the selection of certain professional consultants, as needed, will be selected by the Director of Finance as approved by the Purchasing Officer. J. Bidding Except as otherwise exempted in the policy, purchases of goods, equipment, and services must be made as follows: 1. No Bid Required – A department may purchase directly for goods, equipment, and services of a value up to $5,000. Departments must exercise reasonable prudence in seeking price quotes when purchasing such items. Bid splitting to circumvent the bidding process is prohibited. 2. Informal Bid Purchases – Purchases of goods, equipment, and services with an estimated value of over $5,000 and up to $30,000. 146 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 11 of 23 Adopted 4.01, 10/28/2020 Informal Bid Process a. The responsible department must prepare a written scope of work and/or a written product specification describing the minimum requirements of the purchase. b. Requests for bids may either be posted at City Hall, published on the City’s website, mailed or e-mailed, or solicited over the phone to prospective bidders a minimum of ten (10) calendar days before the due date. c. The department must endeavor to obtain at least three written bids. The bids may be made by mail, email or fax. Further negotiation with a vendor to negotiate a lower price based on the bids received from other vendors is prohibited. d. In the event no satisfactory bids are received, the department has the option of any of the following: i. Abandon the purchase; ii. Rebid the purchase; or iii. Request Purchasing Office approval to obtain the purchase on a negotiated contract. e. Award of Contract: Contracts for goods, equipment, and servi ces will be approved by Purchasing Officer to the lowest responsive and responsible bidder. 3. Formal Bid Purchases – Purchases of goods, equipment, and services with an estimated value of over $30,000. Formal Bid Process a. Bid Authorization: City Council must authorize staff to solicit formal bids. b. Notice Inviting Bids (NIB): The responsible department must include a general description of the goods, equipment, and services to be purchased or required, describe any performances or bid security required, and the time and place for the opening of bids. c. Bid Security: When applicable, the bidder’s security will be prescribed in the NIB in an amount equal to ten percent (10%) of the bid amount. The bid security will be returned to unsuccessful bidders within sixty (60) days of the date of the award. 147 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 12 of 23 Adopted 4.01, 10/28/2020 d. Performance Bonds: The City may require a performance bond in such amount as it reasonably finds to protect the public interest. When applicable, the form and amount of the bonds will be described in the NIB. e. Published Notices: The NIB must be posted on the City’s website and published at least once in a newspaper of general circulation (required for public projects only); and, if applicable, in appropriate trade publications. The date of publication must be at least fourteen (14) calendar days before the due date. f. Bid Opening Procedure: All formal bids must be sealed and will be publicly opened and read at the date, time, and place indicated in the published notice. Sealed bids must be su bmitted to the City Clerk’s Department and identified as to bidder, project, and “Bid” on the envelope. A written record and tabulation will be made at the time all bids received are opened. g. Award of Contracts: If awarded, contracts will be awarded by the City Council to the lowest responsive and responsible b idder. 4. Bid Splitting - Purchases, contracts, public works contracts, work orders and projects must not knowingly be split into single transactions or smaller segments for the purpose of circumventing the competitive formal or informal bidding process. Bid splitting is a form of unauthorized purchasing under Section F. 5. Rejection of Bids – The Purchasing Officer or the requesting department may recommend rejection of any or all bids if it is determined to be in the best interest of the City. Reasons for rejection may include, but are not limited to, the following: a bid is determined to be non-responsive; the number of bids received is inadequate; bids received are not reason ably uniform in price, or the lowest bid received is deemed to be too high. The Purchasing Officer may, in any given case, reject all informal bids and the City Council may, in any given case, reject all formal bids. 6. Tie Bids – If two or more quotes/bids are received for the same total amount or unit price, quality and service being equal, then the department may accept the lower quotes/bids obtained through negotiation with the vendors submitting the tie quotes/bids. 7. Bid Protest – Any party that submitted a bid for the Project may file a protest regarding the purchasing decision authorized. a. Notice of Decision: After a decision regarding a bid award has been made, the department will post notice of intended award on the City website. If a bidder is rejected because the bid is found non- responsive or because the bidder is deemed not responsible, the 148 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 13 of 23 Adopted 4.01, 10/28/2020 City will give written notice to said bidder of evidence reflecting such decision. b. Time to File Protest: All protests must be submitted to the Office of the City Clerk by email or facsimile transmission within five (5) business days from the date on the notice of intended award. c. Form of Protest: All protests must be in writing, state the factual basis for the protest, state the facts relevant to the protest, and all evidentiary support to rebut adverse evidence that it or another bidder was either non-responsive or not responsible. All protests have to be filed in accordance with the instructions contained in the solicitation which is the subject of the protest. d. Protest Review: The Department Director will review all timely protests and recommend that the Purchasing Officer, or City Council if a formal bid, either reject the protest and award to the lowest responsible and responsive bidder, or accept the protest and award the bid to the next lowest responsible and responsive bidder. e. Hearing on Protest: A hearing will be set within a reasonable time to provide a decision before final approval of the selected low bid. f. Appeal of Purchasing Officer’s Decision to City Council: Such appeals must be in writing and must be filed with the City Clerk within five (5) business days from the date of the Purchasing Officer’s decision. g. Failure to Timely Appeal: A bidder who fails to file a protest within the times set forth in this section waives any right to protest the issue further. No appeal of any decision to award a bid may occur once the contract has been awarded. 8. Exemptions from Bidding – The following are exempted from obtaining competitive bids: a. Legal Services i. Anything relating to existing or threatened litigation ii. Anything that protects attorney-client privileged records or discussion b. Anything relating to a confidential on-going investigation and other confidential police business c. Advertising (airtime/newspaper/magazine ad space, not advertising agencies or design services) 149 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 14 of 23 Adopted 4.01, 10/28/2020 d. Public Projects under UPCCAA e. Government printed publications f. Subscriptions to publications g. Common carrier shipments h. Travel payments made directly to hotels, motels, airlines or for other transportation i. Insurance and claim settlements j. Legal brief printing and transcription k. Membership to professional organizations l. Credit card payments to a bank m. Contracts with other governmental entities n. Permit fees including, but not limited to, those to another governmental agency for operation of a City utility o. Events sponsorship p. Postage and United States Postal Service post office box fees (not private mail companies) q. Real property purchases, escrow fees and lease payments r. Utilities including but not limited to payments for electricity or gas s. Voting materials t. Debt services K. Information Technology Purchases The City recognizes that purchasing information technology on the basis of lowest purchase price alone may not always serve the best interests of the City. Therefore, to ensure hardware requirements and software compatibility, all such purchases must be reviewed by the Information Systems Division prior to purchase. L. Uniform Guidance Federal Procurement Standards The City is to conform purchases made with Federal funds in accordance with applicable Federal laws and standards identified in the Uniform Guidance, 150 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 15 of 23 Adopted 4.01, 10/28/2020 Procurement Standards (2 CFR 200.318-326) including but not limited to, excerpts summarized below. Where thresholds differ between City and Federal procurement policies, City employees utilizing Federal grants will follow the most restrictive rule. 1. General Procurements Standards No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employees or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the non-Federal entity must neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontractors. Ho wever, non-Federal entities may set standards for situations in which the financial interest is not substantial, or the gift is an unsolicited item of nominal value. Any City employee, officer, or agent that violates such standards shall be subject to disciplinary action per the City’s Personnel Rules. Purchases must be necessary and limit waste of government spending by avoiding acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurement to obtain a more economical purchase. Federal excess and surplus property shall be considered in lieu of purchasing new equipment and prop erty whenever such use is feasible and reduces project costs. The City shall maintain records sufficient to detail the history of procurement, such as rationale for the method of procurement, selection of contract type, contractor selection or rejection and the basis for the contract price. 2. Competition Procurement procedures must be documented and conducted in a manner that provides full and open competition. Geographical preferences are prohibited, unless mandated by Federal statue or state license. 3. Methods of Procurement In addition to the City’s Procurement Policy approval limits, one of the following procurement methods should be used (threshold amounts are subject to change by the Federal Acquisition Regulation and the City will follow the most current limitation): a. Micro-purchase: Purchase without soliciting competitive quotes if reasonable, if the aggregate dollar amount does not exceed the micro-purchase threshold (2 CFR 200.67). 151 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 16 of 23 Adopted 4.01, 10/28/2020 b. Small Purchase: Simplified Acquisition with price or rate quotes obtained from an adequate number of qualified sources, if the aggregate dollar amount does not exceed the small purchase threshold (2 CFR 200.88). c. Sealed Bid: Amounts greater than Small Purchase with formal advertising awarded to lowest responsible bidder. This method is primarily for construction contracts and a cost and price analysis must be performed. d. Competitive Proposal: Amounts greater than Small Purchase when Sealed Bid is not appropriate. Proposals can either be fixed-price or cost-reimbursement and a cost and price analysis must be performed. e. Noncompetitive Proposal: Amounts great than Micro-purchase with justification documented and requirements me t. This category applies to procurement where the item is only available from a single source, or when there is a public emergency. Sole Source procurements require approval from the Federal or pass-through funding source. All five (5) procurement types must comply with the Procurement Standards which can be summarized generally as follows: (1) the purchase complies with the non-Federal entity’s documented procedures in place, (2) purchases are necessary, (3) open competition (to the extent require by each method), (4) conflict of interest policy, and (5) proper documentation for the purchases. 4. Contracting with Small/Minority and Women’s Business Enterprises All necessary affirmative steps should be taken to assure that minority business, women’s business enterprises, and labor surplus area firms are used when possible. Affirmative steps include: a. Placing qualified small and minority businesses, and women’s business enterprises on solicitation lists; b. Assuring that small and minority businesses, and women’s business enterprises are solicited whenever they are potential sources; c. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women’s business enterprises; d. Establishing procurement specifications, where the requirement permits, which encourage participation by small and minority businesses, and women’s business enterprises; 152 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 17 of 23 Adopted 4.01, 10/28/2020 e. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and f. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed above. 5. Contracts Cost and Price A cost analysis should be performed and documented with every procurement and contract modification over the Simplified Acquisition Threshold. The cost plus a percentage of cost and percentage of construction cost methods of contracting is not to be used and the City is to make independent estimates before receiving bids or proposals. 6. Federal Awarding Agency or Pass-Through Entity Review The City must make available, upon request of the Federal awarding agency or pass-through entity, technical specification on proposed procurements where the Federal awarding agency or pass-through entity believes such review is needed to ensure compliance with the procurement standards. The City may be exempt from procurement review if compliance determination or self-certification is relied upon. 7. Bonding Requirements Bid guarantees, performance bonds, and payment bonds may be required for construction/facility improvement contracts/subcontracts exceeding the Simplified Acquisition Threshold to ensure that the Federal interest in the procurement is adequately protected. 8. Contracted Provisions The City’s contracts are to contain the provisions in the Office of Management and Budget (OMB) Federal Regulations Appendix II to Title 2, Subtitle A, Part 200 – Contract Provisions for non-Federal Entity Contracts Under Federal Awards, as applicable. M. Surplus Property Refer to Policy 3.17, Surplus Property. N. Credit Card Refer to Policy 4.02, Credit Card Usage. 153 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 18 of 23 Adopted 4.01, 10/28/2020 O. Definitions 1. Agreement. A written understanding or arrangement between two or more parties. Also see “Contract” and “Purchase Order”. 2. Addendum. A document issued during the bid period to clarify, modify or support the plans, specification, and other bid document terms. 3. Appropriation. City Council authorization to expend public funds for a specific purpose. 4. As Is. A term indicating that goods offered for sale in existing condition are without Warranty or Guarantee. 5. Award. The acceptance of a Bid or Proposal. 6. Bid. The executed document submitted by a Bidder in response to a Notice Inviting Bids (NIB), Request for Proposals, or a Requests for Qualifications. 7. Bidder. A person or legal entity who submits a bid in response to a solicitation. Proposer. See Bid or Proposal. 8. Blanket Purchase Order. An Agreement of no more than one year between the City and a Vendor allowing authorized City employees to charge repetitive Purchases of goods, equipment, and services on an as- needed basis at pre-arranged prices, dollar limits and/or other terms and conditions. 9. Brand Name. A trade name which serves to identify a produ ct or particular manufacturer. 10. Change Order. A contract amendment to a Public Works construction contract. 11. City. City shall mean the City of Camarillo, the Camarillo Sanitary District, The Camarillo Development Commission, the Camarillo Capital Improvement Corporation, the Camarillo Industrial Development Authority, and other such districts, authorities, or agencies as may be governed by the members of the City of Camarillo City Council. 12. City Attorney. Shall mean and include the City Attorney of the City of Camarillo, the District Counsel of the Camarillo Sanitary District, and Legal Counsel to the Camarillo Capital Improvement Corporation, the Camarillo Development Commission, and the Camarillo Industrial Development Authority. 13. City Council. Shall mean and include the City Council of the City of Camarillo and the Board of Directors of the Camarillo Sanitary District, the 154 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 19 of 23 Adopted 4.01, 10/28/2020 Camarillo Capital Improvement Corporation, the Camarillo Development Commission, and the Camarillo Industrial Development Authority. It sha ll also mean the governing boards of such other districts, authorities, or agencies as may be governed by the City Council of the City of Camarillo. 14. City Manager. Shall mean and include the City Manager of the City of Camarillo, the District Manager of the Camarillo Sanitary District, the President of the Camarillo Capital Improvement Corporation, and the Executive Director of the Camarillo Development Commission. 15. Competitive Bidding. The submission of prices by vendors competing for a Contract, privilege, or right to goods, equipment, or services. 16. Contract. A written, legally binding mutual agreement between two parties, e.g., an accepted Purchase Order or fully executed agreement for the purchase of goods, equipment, and services stating the expectations o f both parties such as term, cost, scope of work, insurance requirements, and labor code, and prevailing wage requirements. 17. Contract Amendment. Written modification or addition to a Purchase Order or Contract/Agreement authorized by the appropriate authority, except for construction contracts (see Change Order). 18. Discount. An allowance or deduction from a normal or list price extended by a seller to a buyer to make the unit price more competitive. 19. Dispose of. To transfer or part with, to sell; get rid of; to throw out. 20. Emergency Purchase. An emergency purchase requires declaration of emergency and City Council action as noted in PCC Section 22050. City may perform work in accordance with PCC Section 22035. 21. Encumbrance. Committing budgeted funds prior to receiving goods, equipment, and services; funds are shown as an encumbrance until goods, equipment, and services are received, at which time funds are actually expended. 22. Equipment. Personal property necessary to conduct the City’s business, including, but not limited to furnishings, machinery, vehicles, rolling stock, and other property used to conduct the City’s business. 23. Formal Bid. A Bid which must be submitted in a sealed envelope and in conformance with a prescribed format, to be opened and announced at a specified time at a public opening. 24. General Services. Services such as custodial, uniform cleaning, maintenance, and other services for which the performance of such activities do not require any unique skill, special background or training. 155 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 20 of 23 Adopted 4.01, 10/28/2020 25. Goods. Office supplies, custodial supplies, materials, goods, tools, or other commodities used in the general conduct of the City’s business, except supplies or materials for a Public Project which is regulated under the Public Contract Code section 20160, et seq. 26. Guarantee. A pledge or assurance that something is as represented and will be replaced or repaired if it fails to meet the stated Specifications. 27. Informal Bid. Written Quotations for goods, equipment, and services which, pursuant to this Policy, are not required to meet the formal bidding requirements. Informal Bids include unsealed written quotes, quotes received via fax, or quotes received via email. 28. Lowest (Responsive and) Responsible Bidder. The Bidder submitting the lowest price and capable of performing the proposed Contract. See also “Responsive Bidder” and “Responsible Bidder”. 29. Non-Responsive Bid. A Bid that does not conform to the essential requirements of the Notice Inviting Bids. Non-Conforming Bid. Unresponsive Bid. 30. Notice Inviting Bids (NIB). A formal notice, posted on the City’s website, or published in the newspaper (required for public projects only) or elsewhere or sent directly to potential Bidders, notifying them that the City is accepting bids for a specific purpose. 31. On-Call Contracts. Contracts without a specific project scope of work, but rather categorized around general types of anticipated work or trades. When a specific scope of work is identified, task orders are authorized based on either a not-to-exceed time and materials basis or on a negotiated lump sum amount, using the unit priced bid by the contracts. The contracts are typically on an annual or multi-year basis. 32. Procurement. The act of obtaining or buying goods or services. 33. Professional Services. Any work performed by an auditor, attorney, doctor, architect, engineer, land surveyor, construction project manager, appraiser, expert, or consultant. 34. Proposal. The executed document submitted by an offeror or in response to a Request for Proposals (and the basis for subsequent negotiation). 35. Public Contract Code. Shall mean the Public Contract Code of the State of California. 36. Public Project (definition is from State of California Public Contract Code). “Public project” means any of the following: 156 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 21 of 23 Adopted 4.01, 10/28/2020 (1) Construction, reconstruction, erection, alternation, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility. (2) Painting or repainting of any publicly owned, leased, or operated facility. (3) In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher. “Public project” does not include maintenance work. For purposes of this section, “maintenance work” includes all of the following: (1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes. (2) Minor repainting. (3) Resurfacing of streets and highways at less than one inch. (4) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems. (5) Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher. “Facility” means any plant, building, structure, ground facility, utility system, subject to the limitation found in paragraph (3) of subdivision (c), real property, streets and highways, or other public work improvement. 37. Purchase. Renting, leasing, purchasing, licensing, or a trade of goods, equipment, and services. 38. Purchase Order. A Purchaser’s document to formalize a Purchase transaction with a Vendor. Acceptance of a Purchase Order constitutes a Contract; a Purchaser’s written offer to a supplier stating all terms and conditions of a proposed transaction. 39. Purchasing Division. The division and/or department within the organization to which the purchasing function has been delegated by the Purchasing Officer. 40. Purchasing Officer. The City Manager or his/her designated representative. 157 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 22 of 23 Adopted 4.01, 10/28/2020 41. Qualified Bidder. A “qualified” bidder, is a bidder that demonstrates the following characteristics: (1) can provide product quality, fitness, and capacity for the required usage. (2) has the ability, capacity, and skill to perform the contract or provide the service required. (3) has demonstrated character, integrity, reputation, judgment, experience, and efficiency, particularly with reference to past purchases by the City or other public agencies. (4) has the ability to perform within the time required. (5) has shown quality of performance and/or of products provided in previous contracts or services with the City or other public agencies. (6) Note: Previous documented incidents of unsatisfactory performance and/or unsatisfactory delivery, materials, or services may also result in a determination of unqualified. 42. Quotation. A Bid. A statement of price, terms of sale, and description of goods or services offered by a prospective seller to a prospective Purchaser, usually for Purchases below the amount requiring Formal Bidding. 43. Request for Proposal (RFP). All documents, whether attached or incorporated by reference, utilized for soliciting competitive cost Proposals including scope of work. 44. Request for Qualifications (RFQ). Documents prepared to solicit the qualification of professionals. An RFQ does not request prices and must be evaluated solely on the basis of experience and qualifications. 45. Responsible Bidder. A person who has the capability in all respects to perform in full the Contract requirements, and the integrity and reliability which will assure good faith performance. 46. Responsive Bidder. (1) A person who has submitted a Bid which conforms in all material respects to the Notice Inviting Bids (NIB) or (2) one whose Bid conforms in all material respects to the terms and conditions, Specifications and other requirements of the NIB. 47. Sealed Bid. A Bid which has been submitted in a sealed envelope to prevent its contents from being revealed or kn ow before the deadline for the submission of all Bids; required on Formal Bids. 158 Adopted 4.1, March 22, 1989 Policy 4.01 Amended 10/09/2002; 06/27/2018 Page 23 of 23 Adopted 4.01, 10/28/2020 48. Sole Source. A determination that there is only one reasonably known capable supplier due to the unique nature of the requirements, the supplier, or market conditions for the goods, equipment, and services. 49. Specifications. A description of what the Purchaser seeks to buy or accomplish, and consequently, what a Bidder must be responsive to in order to be considered for Award of a Contract. A Specification may be a description of the physical or functional characteristics, or the nature of goods, equipment, and services. It may inc lude a description of any requirements for inspecting, testing, or preparing goods, equipment, and services for delivery. 50. Split. To divide a Purchase into two or more parts in order to avoid the requirements of the Procurement Policy. This action is prohibited by the Policy. Example: Split: If a department knows it will use $31,000 of a particular supply in one fiscal year and they place two orders six months apart to keep each order below the $30,000 limit, the action is considered Splitting and is not allowed under the Policy. Not Split: If a department hires ABC Engineering to prepare a fee study for $8,000 and also hires the same company to oversee a capital improvement project for $9,000, the action is not considered Splitting. 51. Surplus Property. Any City property that is no longer needed or usable by the holding department. Refer to Policy 3.17, Surplus Property. 52. Urgency Purchase. An urgency purchase does not require a declaration of emergency but must only be made to preserve or protect life, health or property, or upon natural disaster, or to forestall a shutdown of essential public services, or for reasons as determined by the Purchasing Officer. 53. Vendor. A supplier of goods, equipment, and services. 54. Warranty. The representation that something is true. Not to be confused with “Guarantee”. A representation of utility, condition, and durability made by a Bidder or offeror for a product offered. 159 Agenda Item No.: 14.B Mtg. Date: 02/24/2025 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:SAMANTHA CREW, MANAGEMENT ANALYST THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: RECEIVE AND FILE A PRESENTATION ON THE STATUS OF EMERGENCY GENERATOR USE WITHIN CITY LIMITS, DUE TO THE RECENT UTILITY SHUT OFFS DATE:February 24, 2025 BACKGROUND: In the City's de-energized areas, generators have become essential for residents to remain in their homes. Recently, City Staff were made aware of concerns regarding the noise levels of these generators. Currently, there are no City ordinances addressing this issue. On Thursday, September 12, Southern California Gas Company (SCG) informed 40 Rolling Hills residents of an impending service shutoff, followed by Southern California Edison's (SCE) announcement the next day, September 13, of an indefinite power outage affecting 51 homes. Both actions were prompted by ongoing land movement concerns on the Palos Verdes Peninsula, leaving residents urgently seeking alternative power sources. The City’s Municipal Code allows for the installation/construction of certain improvements under the Temporary Use Permit Chapter (17.48), Section 17.48.040 lists Allowed Temporary Uses. Subsection (C) in Chapter 17.48 expands this list: Similar Temporary Uses. Similar Temporary Uses which, in the opinion of the review authority, are compatible with the zoning district and surrounding land uses. In addition, Section 17.48.020 (B) explains that emergency public health and safety activities are exempt from the requirements for a temporary use permit and other City approval. The City implemented streamlined permitting procedures at both the City and County levels to facilitate the installation of alternative power solutions. At the January 13, 2025, City Council meeting, staff sought guidance on how to address concerns about excessive generator noise. The subsequent questions were proposed: 1. Maintain the Status Quo: The City can choose not to adopt any specific noise ordinance or regulation at this time. 2. Adopt a Noise Ordinance: The City could adopt a traditional noise ordinance applicable 160 to all noise in the City based on metric(s) that best effectuate the City’s desired goals. 3. Establish Time Frames for Mechanical Equipment Noise: The City could implement a policy setting allowable time frames for generator use and other audible mechanical equipment (e.g., pool pumps, older air conditioning units). The City Council agreed that imposing additional hardships on affected residents is undesirable. Staff were directed to survey residents utilizing alternative power sources and gather data on their progress and determine their current status. The day following the January 13 City Council meeting, SCE announced plans to restore power to de-energized Rolling Hills residents whose properties passed structural and electrical inspections and who provided homeowner consent. SoCal Gas are still exploring solutions but have not yet announced any plans for service reconnection. Following this evening's discussion, staff will proceed according to the City Council's direction. DISCUSSION: As a result of SCE's announcement to restore power to de-energized Rolling Hills residents, the City may experience a reduction in generator use. This raises the question of whether action is necessary at this time. Staff are actively working with SCE, LA County Fire Department, LA County Building and Safety, Willdan, the Rolling Hills Community Association (RHCA) to facilitate a seamless transition for re-energization. Below are the figures for affected residents who experienced utility shut offs (electrical and gas) in the fall of 2024. SCE shut offs - 51 SoCal Gas shut offs - 40 Impacted addresses - 56 total (some vacant lots included) First wave of re-energization in October of 2024 - 10 properties restored Staff contacted most of the impacted residents to assess the resources they had secured during the outage. The following figures offer insight into the community's efforts to obtain alternative power sources amid ongoing utility disruptions. Permits: Generators - 16 Propane - 18 Solar -28 On January 13, The City Council aimed to find a balance between allowing residents to maintain essential power sources and minimizing disturbances to the surrounding neighborhood. The Council inquired about potential methods to reduce generator noise levels. Reducing the noise of a generator can be achieved through several methods, including: Building a Sound Barrier Erect a temporary or permanent sound barrier using materials like plywood, cement boards, mass-loaded vinyl, acoustic foam or hay bales to deflect sound. Build natural barriers like walls, fences, or bushes and consider the material and height of the barrier play a significant role in its effectiveness. Piling sandbags is an alternative DIY soundproofing method when keeping in mind the minimum clearance from the unit. Install a Muffler or Silencer Upgrade the generator's stock muffler with a high-quality aftermarket muffler designed to reduce exhaust noise. 161 Use Anti-Vibration Mounts Place the generator on rubber feet or vibration-dampening pads to minimize vibrations that contribute to noise. Direct the Exhaust Away Position the exhaust pipe so that noise is directed away from living areas or use an extension to redirect sound. Perform Regular Maintenance Keeping the generator well-maintained (changing oil, cleaning air filters, and tightening loose components) can prevent excessive noise caused by mechanical issues. Use a Quiet Generator Consider investing in an inverter generator, which typically operates at lower noise levels than conventional generators Various factors that can amplify the noise of a generator include: Topography, including canyons. Echo from nearby buildings. Atmospheric conditions. A generator’s installation on a resonant surface such as wood decking. Safety: Before installing a backup generator that will be connected to your home or business electrical system, you must inform SCE of the generator location by completing and submitting an online application for interconnection to SCE, according to California Health and Safety Code Section 119085 (b). Attaching a generator to a residence will push power into any wires connected to a house, including the wires fixed to your meter. This is called “backfeed” and creates a dangerous situation. Any electrical workers performing work on a line with backfeed will not know there is power in the line and could be injured or lose their lives. If a line with backfeed breaks and falls to the ground, it could also start fires or electrocute anyone that comes near the line. Medical Conditions and Energy Needs: Residents who have special energy needs due to qualifying medical conditions, include those who are paraplegic, hemiplegic, or quadriplegic conditions, multiple sclerosis with special heating and/or cooling needs, scleroderma with special heating needs, life-threatening illness, compromised immune system, or other condition that requires special heating and/or cooling, asthma and/or sleep apnea, motorized wheelchair/scooter, IPPB or CPAP machines, respirator (all types), hemodialysis machine, iron lungs, dialysis machine, nebulizer. Conclusion: The City Council may explore various approaches to address the issue of generator noise affecting residents: 1. Maintain the Current Approach: Opt not to implement any new noise ordinances or regulations at this time, thereby preserving the existing conditions. 2. Implement a Comprehensive Noise Ordinance: Introduce a noise ordinance applicable to all sources within the City, establishing clear metrics to balance the need for reliable power with the community's desire for tranquility. This could involve setting maximum permissible noise levels during specific hours, as seen in other municipalities. 3. Set Specific Operational Timeframes for Equipment: Define allowable operating hours for mechanical equipment, such as generators, pool pumps, and older air conditioning units, to minimize disturbances. For instance, restricting the use of such equipment during nighttime hours could reduce noise-related disruptions. 162 Staff are prepared to offer further guidance and support as the Council deliberates on these options and determines the most suitable course of action. FISCAL IMPACT: None RECOMMENDATION: Receive and file. Provide direction to staff. ATTACHMENTS: Attachment A - CL_AGN_250108_CC_NoiseLevels&Generators.pdf 163 City of Rolling Hills Information on Noise Levels and Generators Agency Municipal Code Regulation Generators Enforcement City of Torrance Chapter 6 Noise Regulation Torrance's Municipal Code prohibits unnecessary, excessive, and annoying noises, including those from generators. Specific decibel limits and time restrictions are in place to ensure community peace. Does not specifically mention generators.Noise concerns, including those related to generators, are typically handled by the Code Enforcement Division or the Police Department, depending on the situation. City of Carson Chapter 7 Noise Element Carson’s Noise Element includes regulations to control noise from various sources, such as electric motors and engines. The city enforces specific standards to protect residents from excessive noise. Does not specifically mention generators.Enforcement of noise regulations is managed by the Planning Division and Code Enforcement. For urgent or after-hours concerns, the Sheriff’s Department may handle complaints. City of Lafayette Chapter 5-2 - Noise Lafayette has amended its noise ordinance to address backup generator noise during power outages. The city provides exemptions for emergencies while maintaining standards to minimize disturbances. Backup generators are exempt from standard noise restrictions during power outages between 7:00 a.m. and 10:00 p.m. For individuals with medical needs, generator use is permitted 24/7 during power outages. In February 2021, the City of Lafayette amended its noise ordinance to address concerns regarding backup generator noise during power outages. Noise concerns, including backup generator noise, are addressed by the Planning and Building Department or Code Enforcement Division. For immediate disturbances, the Police Department may intervene. City of Larkspur Chapter 9.54 Noise Control Regulations Larkspur's Municipal Code exempts emergency generators from strict noise standards during declared emergencies or utility power outages, subject to specific limitations and standards. In 2020 City Council amended code to exempt emergency generators from the strict application of the noise standards, subject to specific limitations and standards, when operated during unexpected catastrophe or Public Safety Power Shutoff (PSPS) events by PG&E. The Code Enforcement Division or the Planning Department oversees compliance with noise standards. Immediate issues may be handled by the Police Department. City of Saratoga Section 7-30.030 - Exemptions The use of an emergency generator is exempt from the city's noise standards. Operating an emergency generator during power outages or other emergencies is permitted, even if the noise produced exceeds the typical noise limits established by the city. The Code Enforcement Division enforces noise ordinances, especially for ongoing violations. Residents can report noise concerns through city channels. City of Emeryville 5-13.08 Leaf Blowers, Generators and Other Loud Equipment. The use of loud equipment, including generators, is limited to weekdays from 8:00 a.m. to 6:00 p.m. to minimize noise disturbances. Yes, addresses generators. Noise issues are managed by the Community Development Department, particularly the Code Enforcement Division. The Police Department may address after-hours disturbances. City of Orange Chapter 8.24 Noise Control The city's noise control regulations aim to protect residential areas from unnecessary, excessive, and annoying sounds, which can include generator noise. Does not specifically mention generators.The Code Enforcement Division is responsible for investigating and addressing noise complaints. Urgent disturbances may involve the Police Department Sacramento County Chapter 6.68 Noise Control regulation In residential zones of unincorporated Sacramento County, maximum noise levels are generally limited to 55 decibels (dBA) between 7 a.m. and 10 p.m., and 50 dBA between 10 p.m. and 7 a.m. Does not specifically mention generators.The Environmental Management Department (EMD) enforces noise regulations in unincorporated areas. The Sheriff's Department may intervene for violations causing immediate public disturbances. City of Rancho Palos Verdes Chapter 17.56 - Performance Standards According to the city's guidelines, no noise should emanate from a property exceeding 65 decibels (dBA) at the common property lines abutting a residential zoning district. Property owners are responsible for monitoring and preventing noise nuisances to neighboring properties. These limits apply to any noise source, including generators. Code Enforcement Officers (2) City of Rolling Hills Estates Chapter 8.32 - Noise It prohibits any device from producing noise that exceeds the ambient noise level by more than 5 decibels during the day and 3 decibels at night. Emergency use of generators during power outages or natural disasters is exempt from noise restrictions. Code Enforcement Officer City of Palos Verdes Estates Chapter 8.28 - Noise It is unlawful to create, maintain, or allow any noise or vibration that is unreasonable and causes discomfort to individuals within the vicinity. Does not specifically mention generators.Code Enforcement Division is responsible for handling noise complaints, including those related to generators. If the noise issue occurs outside of regular city hours, the Police Department 1/8/2025 1 of 1164 Agenda Item No.: 14.C Mtg. Date: 02/24/2025 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:SAMANTHA CREW, MANAGEMENT ANALYST THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: RECEIVE AND FILE A SUMMARY REPORT ON PREVIOUS FIRE FUEL COMMITTEE DISCUSSION, RECOMMENDATIONS AND/OR ACTIONS (COUNCILMEMBER MIRSCH) DATE:February 24, 2025 BACKGROUND: California has a long and intense history with wildfire. Several fires in the past decade have been record setting as the largest, most deadly, and destructive fires in the history of the United States as a whole. Most recently, fires in Los Angeles County killed 29 people, forced more that 200,000 to evacuate, and destroyed an estimated 18,000 structures with 57,000 acres burned. The Tubbs fire in 2017 killed 23 people and destroyed 5,636 structures. In 2018, the Camp Fire saw 85 deaths, and 18,804 structures burned. Mendocino County experienced fires in August of 2020 which burned over 1,032,648 acres. These are only some of the latest, more significant fires. Fire fuel plays a critical role in the spread and intensity of fire and managing fire fuel is essential for public safety. In 2019, staff began reporting quarterly on dead vegetation cases to the City Council. That same year, the City conducted a community survey, asking about the community's top concern. Survey responses showed residents were fearful of the amount of fire fuel in the canyons. In response to community concerns about the significant fire fuel levels in the canyons posing a safety risk, the City Council established a standing committee, the Fire Fuel Committee (the Committee), to address the issue. Councilmember Mirsch and Black were assigned to the Committee at the April 26, 2021 City Council meeting. Public hearings were conducted to engage residents, assess the challenges of managing vegetation on privately owned canyon properties, and formulate recommendations for practical solutions. The Committee also discussed regulatory versus voluntary approaches to management of fire fuel in the canyons, and the cost to comply with an ordinance. By June of 2021 the City had documentation and maps that outlined blue line streams within the community, and the canyons of highest priority for wildfire risk. The Committee examined fire fuel management strategies for the canyons based on guidance from experts at the Los Angeles County Fire Department. The City Council was presented with two competing 165 proposals: Option A: Fund one fire fuel abatement project per year. Option B: Designate areas for abatement, notify property owners, and enforce nuisance abatement proceedings if work is not done. September, 2021, the Committee worked on a new fuel abatement/nuisance ordinance and proposed prohibiting high fire hazard plants in new developments. Also considered was the modification of the fire fuel abatement ordinance and adjusting the slope ratio. At the November 22, 2021 City Council meeting, the Council moved to draft an ordinance prohibiting new plantings of high-hazard plants. March 14, 2022, Ordinance No. 375 was adopted, prohibiting new plantings of high-hazard plants and trees in new developments. The City Council approved the hiring of Wildland Resource Management (WRM) for services that included new ordinance development, highlighting what constitutes a nuisance, as well as canyon management consulting. The overall goals were to (1) provide guidance to the community about best practices and CEQA, (2) conduct canyon evaluations, and (3) as an optional activity, train staff regarding how to evaluate the compliance and fuel management of canyons. May of 2022, the Committee reviewed the recommendations provided on a draft fire fuel abatement ordinance by WRM. The consultant advised to enhance the required fire fuel abatement within the 200 feet from structures (defensible space) to be more restrictive than the Los Angeles County Fire Code, and to follow the model of the City’s current CalOES/FEMA grant project for abatement conducted outside of the defensible space, where the City takes the lead to group a cluster of homes for vegetation treatment. Vegetation treatment outside of the defensible space is considered a “project” under State law and would require environmental analysis and permitting requirements by other agencies. After consideration of the recommendations outlined by WRM in July of 2022, the Fire Fuel Committee determined that the draft fire fuel abatement ordinance would cause significant financial burden on residents including the costs of the additional environmental analysis and permitting requirements for treatment outside of defensible space. In addition, the Committee agreed that requiring enhanced treatment within 200 feet was unnecessary as the Fire Department already had a requirement in place. At that time the Committee discontinued work on the draft ordinance due to high costs and existing Fire Department requirements. November 2022, post-election, the Fire Fuel Committee restructured into an Ad Hoc Fire Fuel Committee. At the June 6, 2023 Ad Hoc Fire Fuel Committee meeting, it was decided to monitor voluntary fire fuel abatement before considering future mandates. The Fire Fuel Ad Hoc Committee was charged with data collection relating to fuel management and fuel removal in the community. The Fire Fuel Committee concluded that the community is voluntarily spending time and money to manage fire fuel on private property and a mandate is not necessary. However, the Fire Fuel Committee wanted to monitor progress and revisit the mandate if data showed a lack of fire fuel management and abatement in the community. 166 DISCUSSION: Given the recent fires in the county and current fire fuel concerns in the City of Rolling Hills, it is important to assess whether reestablishing the Fire Fuel Committee would provide valuable oversight, coordination, and solutions. Historically, the Committee faced significant community pushback, which created barriers to further establishing new fire fuel ordinances. Many residents expressed concerns over cost and mandatory mitigation efforts which lead to resistance and a lack of consensus. This opposition created obstacles that made it difficult to implement plans and achieve measurable results. These challenges raise important questions about how to approach such an initiative moving forward and whether reinstating the Committee would yield better outcomes. Before moving forward, it is essential to consider the Committee’s potential impact, necessary resources, and the specific goals it aims to achieve. Fire Fuel abatement plays a crucial role in reducing fire risks and improving community preparedness. Effective fire fuel reduction requires a strategic, step-by-step approach to ensure meaningful progress while managing resources efficiently. Breaking the process into achievable tasks allows for steady improvements without overwhelming those tasked with the expense and efforts. This can begin with identifying high-risk areas and prioritizing them based on factors such as vegetation density, proximity to structures, and accessibility. By addressing fire fuel reduction in stages, Rolling Hills can enhance safety and resilience in a sustainable and organized manner. Staff are seeking direction from the City Council on whether to re-establish the Fire Fuel Committee to address ongoing concerns about wildfire risk. FISCAL IMPACT: Unknown at this time. RECOMMENDATION: Receive and file. ATTACHMENTS: 167 Agenda Item No.: 15.A Mtg. Date: 02/24/2025 TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:KARINA BAÑALES, CITY MANAGER THRU:KARINA BAÑALES, CITY MANAGER SUBJECT: APPROVE AND AUTHORIZE THE CITY MANAGER TO SIGN A MUTUAL AID PERSONNEL COOPERATION AGREEMENT BETWEEN THE CITY OF ROLLING HILLS AND THE CITY OF MALIBU FOR TEMPORARY PERSONNEL ASSISTANCE DATE:February 24, 2025 BACKGROUND: Mutual aid agreements play a crucial role in ensuring coordinated and effective emergency response efforts among local jurisdictions. When disasters exceed a city’s available resources, mutual aid allows neighboring agencies to provide critical support, enhancing regional resilience and recovery. These agreements establish a structured approach for requesting and deploying personnel, equipment, and other resources, ensuring that emergency operations remain functional during crises. By fostering collaboration and shared responsibility, mutual aid not only strengthens disaster response capabilities but also reinforces long-term partnerships between municipalities, ultimately improving preparedness and recovery efforts for future emergencies. This evening, staff seeks the City Council to authorize the City Manager to execute Mutual Aid Personnel Cooperation Agreement between the City of Rolling Hills and the City of Malibu for Temporary Personnel Assistance (Attachment A). DISCUSSION: The Palisades Fire erupted on January 7, 2025, devastating numerous communities in Los Angeles County. The City of Malibu was among the jurisdictions severely impacted by this destructive wildfire. Due to the extensive damage and prolonged emergency response, Malibu's Emergency Operations Center (EOC) required 24/7 staffing, which exceeded the city's available personnel resources. To support its EOC, Malibu sought mutual aid assistance from other local municipalities. 168 The City of Rolling Hills provided one staff member; Management Analyst, Samantha Crew, to help fulfill shifts in Malibu's EOC, supporting the city's disaster response efforts. Mutual aid is a component of the National Incident Management System (NIMS) in which local, state, and federal government agencies use as a framework for coordinated emergency response and recovery efforts. To reimburse assisting agencies for the direct costs of staff time dedicated to supporting Malibu's emergency operations, the attached Mutual Aid Personnel Cooperation Agreement was developed and is presented to the City Council for review and approval. Retroactive Agreement The Mutual Aid Personnel Cooperation Agreement is retroactive to January 8, 2025, to account for the immediate need for support following the onset of the Palisades Fire. Given the urgency of Malibu’s request for assistance, staff provided aid without delay to ensure continuity of emergency operations. As a result, this agreement is being brought before the City Council for approval after the fact, formalizing the partnership and allowing for proper reimbursement of costs incurred during the mutual aid deployment. FISCAL IMPACT: Approval of the Agreement allows the City of Rolling Hills to receive reimbursement for costs associated with staffing the City of Malibu’s Emergency Operation Center on assigned shifts. RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute Mutual Aid Personnel Cooperation Agreement Between the City of Rolling Hills and the City of Malibu for Temporary Personnel Assistance. ATTACHMENTS: Attachment A - CA_AGR_250224_Malibu Mutal Aid Agreement - Rolling Hills.pdf 169 65273.00001\43148413.1 PERSONNEL COOPERATION AGREEMENT CITIES OF MALIBU AND ROLLING HILLS (TEMPORARY PERSONNEL ASSISTANCE) This Agreement is made this 8th day of January 2025, by and between the City of Malibu (“Malibu”) and the City of Rolling Hills (“Lending Agency”), both California municipal corporations and general law cities (hereinafter referred to individually as a “party” and collectively as the “parties”). R E C I T A L S A. Each of the parties operates a city or county municipal government. Due to the Palisades Fire and other fires in and near Malibu, there is limited personnel available to adequately cover all government needs. These limitations cannot be resolved with in-house resources. B. The purpose of this agreement is to allow Malibu to maintain necessary minimum staffing levels by sharing resources and utilizing temporary personnel from Lending Agency. C. Lending Agency is willing to make its personnel resources available to Malibu during and after the Palisades Fire in the interest of providing support to a fellow municipality during a time of great need. D. This Agreement will facilitate the foregoing and will be to the mutual interest and advantage of both Parties. NOW, THEREFORE, in consideration of the foregoing and of the covenants and conditions set forth below, the parties agree as follows: 1. Personnel Assistance. Each party will develop its own respective internal policy to determine when and if Malibu can request and receive personnel assistance as described herein. Requests shall be made only when in-house personnel are unavailable and Malibu cannot satisfy its minimum staffing requirements as determined by the Acting City Manager or his/her designee. In-house personnel shall be classified as “unavailable” as determined by the City Manager or his/her designee. Requests shall be made with as much advance notice as is reasonably possible. When a Lending Agency is asked to provide assistance pursuant to this Agreement, it shall exercise its best efforts to provide aid subject to fulfilling its obligations to its own constituents. This Agreement does not create an obligation to provide assistance. Each party understands and acknowledges that while employees of Lending Agency (“Guest Personnel”) are providing services for Malibu, the Guest Personnel shall perform any assignments according to the rules and requirements of Malibu and under the direction of Malibu leadership. Each party further understands that Malibu has the right to reasonably reject or decline any particular Guest Personnel. 170 65273.00001\43148413.1 Guest Personnel shall be identified in writing by Lending Agency, and approved by the Acting City Manager of Malibu, or his/her designee, in advance of performing work for Malibu. All assignments will be given to Guest Personnel by the Acting Malibu City Manager, or his/her designee. 2. Cost Reimbursement. Malibu agrees to pay Lending Agency the direct cost of the Guest Personnel to Lending Agency at their then current hourly rate of compensation—the direct cost shall include only the unencumbered normal salary and shall not include the cost of any benefits or other payments or contributions. Payment shall be made within sixty (60) days of receipt of an invoice or as otherwise mutually agreed by the parties. Further, Malibu agrees to pay the mileage incurred by the Guest Personnel at current IRS rates and any costs for reasonable meals, hotel or lodging accommodations incurred as a result of performing Guest Personnel duties on behalf of Malibu. The total of such costs shall not exceed $100 per day ($300/day if hotel is required) unless written pre-approval is received. Reimbursement is contingent upon Lending Agency providing documentation sufficient for the City to receive reimbursement from California and Federal agencies. Malibu shall not be liable or responsible for payment of any benefits of any kind to, or on behalf of, the Guest Personnel. Malibu shall not be responsible for any compensation, costs, benefits, expenses or emoluments of any kind related to the work performed by Guest Personnel, other than described above in this Section. 3. Term of Agreement. This Agreement is effective as of January 8, 2025, and shall remain in effect until terminated by either party. Either party may terminate this Agreement for convenience and without cause by giving the other party thirty (30) days’ written notice of termination. 4. Status and Hours. Guest Personnel, while providing services for Malibu within the course and scope of the direction given to them by Malibu, shall be considered employees of Malibu for purposes of liability coverages only. Guest Personnel shall work not more than a combined 9 hours per day, and in no case for more than a total of 40 hours during a five day work period. 5. Status of the Parties. The parties are acting as independent contractors wherein each is providing a service in the nature of mutual assistance to the other. Each Guest Personnel shall remain in the fulltime employ of his or her respective employer, that Malibu shall not be deemed a dual employer of the guest personnel, and that Malibu shall have no liability for direct payment to any Guest Personnel for any compensation or benefits, including but not limited to workers’ compensation coverage, in connection with the performance of duties for Malibu. 6. Modification. This Agreement may be modified only by a written agreement executed by the parties. 7. Assignment. The parties understand that their unique status as public entities is the sole inducement for each to enter into this Agreement. For this reason, the parties agree that they will not assign or transfer any portion of or interest in this Agreement. Any attempt to assign or transfer any portion of this Agreement will be void. 171 65273.00001\43148413.1 8. Notices. All notices required by this Agreement must be in writing and given to the Parties at the following addresses: CITY OF MALIBU: Joseph Toney Acting City Manager 23825 Stuart Ranch Road Malibu, CA 90265 CITY OF ROLLING HILLS: Karina Bañales City Manager 2 Portuguese Bend Road Rolling Hills, CA 90274 9. California Law. This Agreement shall be construed in accordance with the laws of the State of California. 10. Indemnification/Liability. If any of the Guest Personnel commits an act of negligence during the course and scope of their work for Malibu, Malibu shall be liable under any statutory basis for said negligence, subject to any and all federal and or/state statutory and/or common law immunities and/or defenses applicable. Malibu shall not be liable for the conduct of Guest Personnel while they are not performing duties for Malibu within the course and scope of employment. 11. Preservation of Agreement. Should any provision of this Agreement be found invalid or unenforceable, the decision shall affect only the provision interpreted, and all remaining provisions shall remain enforceable. 12. Entire Agreement. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties with respect to the subject matter herein. Each party to this Agreement acknowledges that representations by any party not embodied herein, and any other agreements, statements, or promises concerning the subject matter of this Agreement, not contained in this Agreement, are not valid and binding. Any modification of this Agreement will be effective only if it is in writing signed by the parties. Any issue with respect to the interpretation or construction of this Agreement is to be resolved without resorting to the presumption that ambiguities should be construed against the drafter. 13. Dispute Resolution. The parties shall attempt in good faith to resolve any dispute arising out of or relating to this Agreement promptly by negotiations between the parties’ authorized representatives. The disputing party shall give the other party written notice of any dispute. Within twenty (20) days after delivery of such notice, the authorized representatives shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary to exchange information and to attempt to resolve the dispute. If the matter has not been resolved within thirty (30) days of the first meeting, any party may initiate a mediation of the dispute. The mediation shall be facilitated by a mediator that is acceptable to both parties and shall conclude within sixty (60) days of its commencement, unless the parties agree to extend the mediation process beyond such deadline. Upon agreeing on a mediator, the parties shall enter into a written agreement for the mediation services with each party paying a pro rata share of the mediator’s fee, if any. Each party shall bear its own legal fees and expenses. If, after good faith efforts to mediate 172 65273.00001\43148413.1 a dispute the parties cannot agree to a resolution of the dispute, any party may pursue whatever legal remedies may be available to it at law or in equity, before a court of competent jurisdiction and with venue in Los Angeles County. 14. Third Party Beneficiaries. This Agreement shall not be construed as an attempt to create a third party beneficiary contract. This Agreement is for the sole benefit of its parties; no other person or entity shall benefit from its terms. 15. Counterparts. This Agreement may be executed in any number or counterparts, each of which will be an original, but all of which together will constitute one instrument executed on the same date. 16. Interpretation. This agreement shall be deemed to have been entered into, and shall be construed and enforced in accordance with, the laws of the State of California as applied to contracts made and to be performed entirely within California. The Agreement shall be construed without regard as to who drafted it and shall be interpreted as though all parties hereto participated equally in the drafting of this Agreement. IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day and year first shown above. CITY OF MALIBU _____________________________ Joseph Toney Acting City Manager CITY OF ROLLING HILLS _____________________________ Karina Bañales City Manager Approved as to form: _____________________________ Trevor Rusin City of Malibu Interim City Attorney Approved as to form: _____________________________ Patrick T. Donegan City of Rolling Hills City Attorney 173 Agenda Item No.: 16.A Mtg. Date: 02/24/2025 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: PUBLIC EMPLOYEE PERFORMANCE EVALUATION PURSUANT TO GOVERNMENT CODE SECTION 54957 (B)(1) TITLE: CITY MANAGER DATE:February 24, 2025 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: None. ATTACHMENTS: 174 Agenda Item No.: 16.B Mtg. Date: 02/24/2025 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: EXISTING LITIGATION - GOVERNMENT CODE SECTION 54956.9(D)(1) THE CITY FINDS, BASED ON ADVICE FROM LEGAL COUNSEL, THAT DISCUSSION IN OPEN SESSION WILL PREJUDICE THE POSITION OF THE CITY IN THE LITIGATION. (1 CASE) a. NAME OF CASE: CONNIE ANDERSEN, ET AL. V. CALIFORNIA WATER COMPANY, ET AL. (SEAVIEW CASE) CASE NO.: 24STCV20953 DATE:February 24, 2025 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: None. ATTACHMENTS: 175 Agenda Item No.: 16.C Mtg. Date: 02/24/2025 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 - EXISTING LITIGATION GOVERNMENT CODE SECTION 54956.9 (TWO CASES) CPUC COMPLAINTS AGAINST SOUTHERN CALIFORNIA EDISON AND SOCAL GAS DATE:February 24, 2025 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: None. ATTACHMENTS: 176 Agenda Item No.: 16.D Mtg. Date: 02/24/2025 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 GOVERNMENT CODE SECTION 54956.9(D)(1) THE CITY FINDS, BASED ON ADVICE FROM LEGAL COUNSEL, THAT DISCUSSION IN OPEN SESSION WILL PREJUDICE THE POSITION OF THE CITY IN THE LITIGATION. (1 CASE) DATE:February 24, 2025 BACKGROUND: None. DISCUSSION: None. FISCAL IMPACT: None. RECOMMENDATION: None. ATTACHMENTS: 177