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05-10-2022 - Agenda Pkg - CC Regular Meeting
Tuesday, May 10, 2022 5:00 PM City of Hermosa Beach City Hall 1315 Valley Drive Hermosa Beach, CA 90254 City Council Mayor Michael Detoy Mayor Pro Tem Raymond Jackson Councilmembers Stacey Armato Mary Campbell Justin Massey Regular Meeting Agenda Closed Session - 5:00 PM Open Session - 6:00 PM Duly posted on May 6, 2022 at 9:00 AM by M.M. Executive Team Angela Crespi, Deputy City Manager Viki Copeland, Finance Director Myra Maravilla, City Clerk Paul LeBaron, Chief of Police Joe SanClemente, Public Works Director Carrie Tai, Community Development Director Vanessa Godinez, Human Resources Manager Lisa Nichols, Community Resources Manager City Treasurer Karen Nowicki City Attorney Patrick Donegan Suja Lowenthal, City Manager 1 May 10, 2022City Council Regular Meeting Agenda VIEWING OPTIONS FOR PUBLIC MEETINGS Public meetings are broadcast live on Spectrum Channel 8 and Frontier Channel 31 in Hermosa Beach. The following viewing options are provided as a courtesy: ZOOM: Join the meeting link if available or participate by phone YOUTUBE CHANNEL: https://www.youtube.com/c/CityofHermosaBeach90254 CITY WEBSITE: www.hermosabeach.gov and visit the Agendas/Minutes/Videos page ***PLEASE NOTE: IF YOU EXPERIENCE TECHNICAL DIFFICULTIES WHILE VIEWING THE MEETING ON ONE OF THESE PLATFORMS, PLEASE TRY ONE OF THE OTHER VIEWING OPTIONS*** All council meetings are open to the public. PLEASE ATTEND. The City Council agenda packet is available for your review on the City's website located at www.hermosabeach.gov. Complete agenda packets are also available for public inspection in the City Clerk's office. During the meeting, a packet is also available in the Council Chambers foyer or you can access the packet at our website, www.hermosabeach.gov, on your laptop, tablet or smartphone through the wireless signal available in the City Council chambers - Network ID: CHB-Guest, Password: chbguest To comply with the Americans with Disabilities Act of 1990, Assistive Listening Devices (ALD) will be available for check out at the meeting. If you require special assistance to participate in this meeting, you must call or submit your request in writing to the Office of the City Clerk at (310) 318-0204 at least 48 hours prior to the meeting. Page 2 City of Hermosa Beach Printed on 5/24/2023 2 May 10, 2022City Council Regular Meeting Agenda 5:00 P.M. - CLOSED SESSION (LOCATION: Meetings convene in the Council Chambers and move to the Second Floor Conference Room after Public Comment) CALL TO ORDER IN COUNCIL CHAMBERS ROLL CALL PUBLIC COMMENT ON THE CLOSED SESSION AGENDA Hybrid virtual/in-person meetings are held pursuant to AB361. State and local officials recommend measures to promote social distancing. Members of the public may email comments to cityclerk@hermosabeach.gov or submit eComments until 3:00 p.m. on the meeting date. IN-PERSON: Council Chambers, 1315 Valley Drive, Hermosa Beach ZOOM: https://us02web.zoom.us/j/89968207828?pwd=bXZmWS83dmxHWDZLbWRTK2RVaUxaUT09 OR PARTICIPATE BY PHONE: •Toll Free: 833-548-0276 •Meeting ID: 899 6820 7828, then # •Passcode: 472825 ATTENDEES WILL BE MUTED UNTIL THE PUBLIC PARTICIPATION PERIOD IS OPENED. If you are joining by phone, press * 9 to raise your virtual hand and * 6 to unmute your line when asked to do so. Comments from the public are limited to 3 minutes per speaker. RECESS TO CLOSED SESSION IN SECOND FLOOR CONFERENCE ROOM a.22-0294 MINUTES: Approval of minutes of Closed Session held on April 26, 2022. b.22-0295 CONFERENCE WITH LEGAL COUNSEL: Pending 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. Name of Case: Sinkler, Chantelle vs. City of Hermosa Beach Case Number: Los Angeles Superior Court Case No. 21STCV05150 Page 3 City of Hermosa Beach Printed on 5/24/2023 3 May 10, 2022City Council Regular Meeting Agenda c.22-0296 CONFERENCE WITH LABOR NEGOTIATOR Government Code Section 54957.6 City Negotiator:Labor Attorney Daphne M. Anneet and City Manager Employee Organizations:Hermosa Beach Police Officers’ Association Police Management Bargaining Group Teamsters Union, Local 911 Professional and Administrative Employee Group Hermosa Beach Management Association Unrepresented Employees RECESS TO OPEN SESSION Page 4 City of Hermosa Beach Printed on 5/24/2023 4 May 10, 2022City Council Regular Meeting Agenda 6:00 P.M. - REGULAR AGENDA Hybrid virtual/in-person meetings are held pursuant to AB361. State and local officials recommend measures to promote social distancing. Members of the public may email comments to cityclerk@hermosabeach.gov or submit eComments until 3:00 p.m. on the meeting date. IN-PERSON: Council Chambers, 1315 Valley Drive, Hermosa Beach ZOOM: https://us02web.zoom.us/j/89968207828?pwd=bXZmWS83dmxHWDZLbWRTK2RVaUxaUT09 OR PARTICIPATE BY PHONE: •Toll Free: 833-548-0276 •Meeting ID: 899 6820 7828, then # •Passcode: 472825 ATTENDEES WILL BE MUTED UNTIL THE PUBLIC PARTICIPATION PERIOD IS OPENED. If you are joining by phone, press * 9 to raise your virtual hand and * 6 to unmute your line when asked to do so. Comments from the public are limited to 3 minutes per speaker. Oral and Written Communication Persons who wish to have written materials included in the agenda packet at the time the agenda is published on the City's website must submit the written materials to the City Clerk’s office by email (cityclerk@hermosabeach.gov) or in person by noon on Tuesday, one week before the meeting date. Written materials pertaining to matters listed on the posted agenda received after the agenda has been posted will be added as supplemental materials under the relevant agenda item on the agenda packet. Supplemental materials may be submitted via eComment (instructions below) or emailed to cityclerk@hermosabeach.gov. Supplemental materials must be received by 3:00 p.m. on the date of the meeting to be posted to the agenda packet before the meeting begins and to ensure Council and staff have the ability to review materials before the meeting. Supplemental materials submitted after 3:00 p.m. on the date of the meeting but before the meeting ends will be posted to the agenda packet the next business day. Submit Supplemental eComments in three easy steps: Note: 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 (i.e. phone numbers, addresses, etc) that you do not want to be published. 1. Go to Agendas/Minutes/Video webpage and find the meeting you would like to submit comments on. Click on the eComment button for your selected meeting. 2. Find the agenda item for which you would like to provide a comment and select the comment button. 3. Sign in to your SpeakUp Hermosa account or submit a comment as a guest. Enter your name and comment in the fields provided. If you have an account, you may attach files before submitting your comment. Page 5 City of Hermosa Beach Printed on 5/24/2023 5 May 10, 2022City Council Regular Meeting Agenda I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. CLOSED SESSION REPORT V. ANNOUNCEMENTS - UPCOMING CITY EVENTS VI. APPROVAL OF AGENDA:This is the time for the City Council to change the order in which it takes up items on this agenda, remove and/or continue agenda items and pull items from the consent calendar for separate consideration. VII. PROCLAMATIONS / PRESENTATIONS a.22-0276 RECOGNIZING LOCAL ARTIST KATY JENSSEN FOR HER MOSAIC SURFBOARDS b.22-0289 RECOGNIZING LEADERSHIP HERMOSA BEACH EMERGING LEADERS c.22-0278 RECOGNIZING NATIONAL POLICE AND PUBLIC WORKS WEEK MAY 15-21, 2022 VIII. CITY MANAGER REPORT - The City Manager and staff may provide brief reports on pending City business. Longer oral reports to be provided are as follows: a.22-0290 POLICE CHIEF UPDATE Page 6 City of Hermosa Beach Printed on 5/24/2023 6 May 10, 2022City Council Regular Meeting Agenda IX. PUBLIC PARTICIPATION -- ORAL AND WRITTEN COMMUNICATIONS FROM THE PUBLIC: This is the time for members of the public to address the City Council on any items within the Council's jurisdiction not on this agenda and on items where public comment will not be taken (City Manager Reports, Written Communication, City Councilmember Comments, Consent Calendar items not pulled for separate consideration, and Future Agenda Items) only. All comments from the public under this agenda item are limited to three minutes per speaker. This time allotment may be reduced due to time constraints at the discretion of the City Council. The City Council acknowledges receipt of the written communications listed below. No action will be taken on matters raised in oral and written communications, except that the Council may take action to schedule issues raised in oral and written communications for a future agenda. Speakers with comments regarding City management or departmental operations are encouraged to submit those comments directly to the City Manager. Members of the audience will have a future opportunity to speak on items removed from the Consent Calendar for separate consideration, Public Hearings, and Municipal Matters, at the time those items are heard. All comments from the public under this agenda item are limited to three minutes per speaker, but this time allotment may be reduced due to time constraints. The City Council acknowledges receipt of the written communications listed below. No action will be taken on matters raised in oral and written communications, except that the Council may take action to schedule issues raised in oral and written communications for a future agenda. Speakers with comments regarding City management or departmental operations are encouraged to submit those comments directly to the City Manager. X. CITY COUNCILMEMBER COMMENTS: Councilmembers may briefly respond to public comments, may ask a question for clarification or make a brief announcement or report on his or her own activities or meetings attended. a.22-0291 UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES AND STANDING COMMITTEE DELEGATES/ALTERNATES XI. CONSENT CALENDAR: The following matters will be acted upon collectively with a single motion and vote to approve with the majority consent of the City Council. Councilmembers may orally register a negative vote on any Consent Calendar item without pulling the item for separate consideration prior to the vote on the Consent Calendar. There will be no separate discussion of these items unless a Councilmember removes an item from the Consent Calendar, either under Approval of the Agenda or under this item prior to the vote on the Consent Calendar. Items removed will be considered under Agenda Item XII (12), with public comment permitted at that time. The title is deemed to be read and further reading waived of any ordinance listed on the Consent Calendar for introduction or adoption. Page 7 City of Hermosa Beach Printed on 5/24/2023 7 May 10, 2022City Council Regular Meeting Agenda a.REPORT 22-0275 CITY COUNCIL MEETING MINUTES (City Clerk Myra Maravilla) Recommendation:Staff recommends City Council approve the minutes of the City Council Meeting of April 21, 2022 and April 26, 2022. b.REPORT 22-0274 CHECK REGISTERS (Finance Director Viki Copeland) Recommendation:Staff recommends City Council ratify the following check registers. c.REPORT 22-0280 CANCELLATION OF CERTAIN CHECKS (City Treasurer Karen Nowicki) Recommendation:The City Treasurer recommends City Council ratify cancellation of certain checks. d.REPORT 22-0287 ACTION MINUTES OF THE PARKS, RECREATION AND COMMUNITY RESOURCES ADVISORY COMMISSION MEETING OF APRIL 5, 2022 Recommendation:Staff recommends City Council receive and file the action minutes of the Parks, Recreation and Community Resources Advisory Commission meeting of April 5, 2022. e.REPORT 22-0222 LOS ANGELES COUNTY FIRE AND AMBULANCE MONTHLY REPORT FOR MARCH 2022 (Emergency Management Coordinator Brandy Villanueva) Recommendation:Staff recommends City Council receive and file the March 2022 Fire and Ambulance monthly report. f.REPORT 22-0292 FINDINGS TO HOLD REMOTE TELECONFERENCE/MEETINGS, PURSUANT TO ASSEMBLY BILL 361 (City Clerk Myra Maravilla) Recommendation:Staff recommends City Council authorize remote teleconference/virtual meetings of all City of Hermosa Beach legislative bodies in accordance with Assembly Bill 361 ("AB 361"), by finding that: (1) a statewide state of emergency is currently in place; (2) state and local officials have imposed or recommended measures to promote social distancing in connection with COVID-19; and meeting in person would present imminent risks to the health or safety of attendees. Page 8 City of Hermosa Beach Printed on 5/24/2023 8 May 10, 2022City Council Regular Meeting Agenda g.REPORT 22-0282 HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT 2022-2023 ADOPTION OF RESOLUTIONS REGARDING THE ENGINEER’S REPORT AND SETTING JUNE 14, 2022 FOR A PUBLIC HEARING (Public Works Director Joe SanClemente) Recommendation:Staff recommends City Council: 1. Adopt a resolution (Attachment 3) approving the Engineer's Report in connection with Hermosa Beach Landscaping and Street Lighting District 2022-2023 (District) made pursuant to the requirements of Resolution No. 22-7310; and 2. Adopt a resolution (Attachment 4) declaring the City's intention to order certain improvements and to levy and collect assessments within the Hermosa Beach Landscaping and Street Lighting District 2022-2023 for the Fiscal Year beginning July 1, 2022, through June 30, 2023, and appointing June 14, 2022, at the hour of 6:30 p.m. in the Civic Center Council Chambers as the time and place for a public hearing in relation thereto. h.REPORT 22-0270 APPROVAL OF LETTERS OF SUPPORT FOR PROPOSED ASSEMBLY BILL 2074 (GIPSON) PROVIDING INCENTIVES FOR MICROMOBILITY DEVICES AND 2432 (MURATSUCHI) ALLOWING CREATION OF A NEIGHBORHOOD ELECTRIC VEHICLE TRANSPORTATION PLAN (Environmental Programs Manager Douglas Krauss) Recommendation:Staff recommends City Council: 1. Authorize the Mayor to sign letters of support (Attachments 1 and 2) on behalf of the City regarding Assembly Bill 2074 providing incentives for micromobility and Assembly Bill 2432 allowing creation of a neighborhood electric vehicle transportation plan; and 2. Submit the letters to key legislators and local stakeholders i.REPORT 22-0264 A RESOLUTION OF THE CITY OF HERMOSA BEACH PROVIDING NOTICE OF THE CITY’S INTENT TO WITHDRAW FROM THE INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY (ICRMA) (Human Resources Manager Vanessa Godinez) Recommendation:Staff recommends City Council adopt a resolution (Attachment 1) providing notice of the City's intent to withdraw from the Independent Cities Risk Management Authority (ICRMA). Page 9 City of Hermosa Beach Printed on 5/24/2023 9 May 10, 2022City Council Regular Meeting Agenda j.REPORT 22-0312 APPROVAL OF FOURTH AMENDMENT TO AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND THE HERMOSA BEACH CHAMBER OF COMMERCE AND VISITORS BUREAU TO PROVIDE FIESTA HERMOSAS (Community Resources Manager Lisa Nichols) Recommendation:Staff recommends City Council: 1. Approve the proposed fourth amendment with the Hermosa Beach Chamber of Commerce and Visitors Bureau to allow for set-up of the Memorial Day 2022 event activities in the Community Center parking lot and on the beach on the south side of the Pier to begin the Thursday prior to the event and tear-down to conclude the Tuesday following the event; and with future requests for additional set-up and tear-down days at the sole discretion of the City; and 2. Authorize the Mayor to execute and the City Clerk to attest the fourth amendment subject to approval by the City Attorney (Attachment 9). XII. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION - Items pulled from the Consent Calendar will be handled separately. Public comment will be taken prior to Council deliberation and action on each item pulled from the Consent Calendar. XIII. PUBLIC HEARINGS - TO COMMENCE AT 6:30 P.M. a.REPORT 22-0283 APPROVAL OF ADDITIONAL 2022 IMPACT LEVEL III SPECIAL EVENTS INCLUDING: ASHER’S BASH AND RAINBOW DASH TO CURE CHILDHOOD CANCER (6/18); AND JERSEY MIKE’S USLA NATIONAL LIFEGUARD AND JUNIOR LIFEGUARD CHAMPIONSHIP (8/8-8/14) (Community Resources Manager Lisa Nichols) Recommendation:Staff recommends City Council approve the Parks, Recreation and Community Resources Advisory Commission's recommendation to include the following additional Impact Level III Special Events on the 2022 Special Event Calendar: 1. Asher's Bash and Rainbow Dash to Cure Childhood Cancer on Saturday, June 18 on the Greenbelt between Gould Avenue and Pier Avenue and at Valley Park subject to the conditions imposed by the Parks, Recreation and Community Resources Advisory Commission; and 2. Jersey Mike's USLA National Lifeguard and Junior Lifeguard Championship on Monday, August 8 through Sunday, August 14, in and out of the water north of the Pier with removal of the beach tennis courts. Page 10 City of Hermosa Beach Printed on 5/24/2023 10 May 10, 2022City Council Regular Meeting Agenda b.REPORT 22-0293 ADOPTION OF AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA, ADOPTING A MILITARY USE EQUIPMENT POLICY, IN ACCORDANCE WITH ASSEMBLY BILL 481 (City Clerk Myra Maravilla) Recommendation:Staff recommends City Council waive the full second reading and adopt by title an ordinance of the City of Hermosa Beach adopting a military use equipment policy in accordance with Assembly Bill 481 (Attachment 1), and direct staff to publish a summary ordinance (Attachment 2). XIV. MUNICIPAL MATTERS a.REPORT 22-0271 APPROVAL OF SECOND AMENDMENT TO AGREEMENT FOR PROJECT MANAGEMENT/COORDINATION IN IMPLEMENTING THE MUNICIPAL STORMWATER (MS4) PERMIT WITH JOHN L. HUNTER AND ASSOCIATES, INC. (Environmental Programs Manager Doug Krauss) Recommendation:Staff recommends City Council: 1. Approve the proposed second amendment to an agreement with John L. Hunter and Associates, Inc. for project management/coordination in implementing the Municipal Stormwater (MS4) Permit to extend the contract by two years, through June 30, 2024, and extend the annual compensation amount of $114,989 resulting in a total amended contract term of five years and a total not-to-exceed amount of $574,945; and 2. Authorize the Mayor to execute and the City Clerk to attest the attached second amendment subject to approval by the City Attorney (Attachment 4). b.REPORT 22-0299 CONSIDERATION OF PROPOSALS REGARDING THE EXTENSION OF AGREEMENTS BETWEEN THE CITY OF HERMOSA BEACH AND ARAKELIAN ENTERPRISES, INC (DBA ATHENS SERVICES) FOR SOLID WASTE MANAGEMENT SERVICES AND STREET SWEEPING AND CLEANING SERVICES (Environmental Programs Manager Douglas Krauss) Recommendation:Staff recommends City Council: 1. Consider the proposals submitted by Athens Services, Inc. for extension and amendment of the current solid waste management and street sweeping and cleaning services agreements; 2. Provide feedback regarding the most desired proposal option; and 3. Direct staff to proceed with negotiations with Athens Services, Inc. If City Council should desire to pursue a new Request for Proposals (RFP): 1. Direct staff to reappropriate $300,000 for Request for Proposal (RFP) development and estimated revenue of $300,000 for Reimbursement of the Solid Waste Management and Street Sweeping RFPs from the Fiscal Year 2021-22 Budget to the Fiscal Year 2022-23 Budget. Page 11 City of Hermosa Beach Printed on 5/24/2023 11 May 10, 2022City Council Regular Meeting Agenda c.REPORT 22-0297 APPROVAL OF A LETTER SUPPORTING SOUTH BAY REGIONAL HOUSING TRUST LEGISLATION AND BUDGET REQUEST (Interim Community Development Director Angela Crespi) Recommendation:Staff recommends City Council: 1. Authorize the Mayor to sign a letter of support (Attachment 1) on behalf of the City regarding the South Bay Cities Council of Government (SBCCOG) South Bay Regional Housing Trust Legislation and Budget Request, which would provide loans to facilitate the construction of affordable housing in participating South Bay cities; and 2. Submit the letter to key legislators and local stakeholders. d.REPORT 22-0301 AWARD A CONTRACT FOR STORM DRAIN CATCH BASIN MAINTENANCE SERVICES TO RON’S MAINTENANCE INC. (Public Works Director Joe SanClemente) Recommendation:Staff recommends City Council: 1. Award a contract for storm drain catch basin maintenance services to Ron's Maintenance, Inc. in the amount of $173,351 over four years beginning July 1, 2022 and ending June 30, 2026 with an option to extend for an additional year; 2. Authorize the Director of Public Works to establish a $10,000 per year project contingency for a total amount of $40,000; and 3. Authorize the Mayor to execute and the City Clerk to attest the proposed agreement subject to approval by the City Attorney. e.REPORT 22-0309 AWARD OF A SANITARY SEWER MAINTENANCE AND CCTV INSPECTION SERVICES CONTRACT TO EMPIRE PIPE CLEANING AND EQUIPMENT, INC. (Public Works Director Joe SanClemente) Recommendation:Staff recommends City Council: 1. Award a contract for sanitary sewer hydro-flushing and video inspection maintenance services to Empire Pipe Cleaning and Equipment, Inc. in the amount of $793,490 over four years beginning July 1, 2022 and ending June 30, 2026 with an option to extend for one additional year; 2. Authorize the Director of Public Works to establish a $10,000 per year project contingency for a total amount of $40,000; and 3. Authorize the Mayor to execute and the City Clerk to attest the contract subject to the approval of the City Attorney. XV. FUTURE AGENDA ITEMS - Requests from Councilmembers for possible future agenda items and questions from Councilmembers regarding the status of future agenda items. No discussion or debate of these requests shall be undertaken; the sole action is whether to schedule the item for consideration on a future agenda. No public comment will be taken. Councilmembers should consider the city's work plan when considering new items. The existing list of future agenda items below is for information only. a.22-0300 TENTATIVE FUTURE AGENDA ITEMS Page 12 City of Hermosa Beach Printed on 5/24/2023 12 May 10, 2022City Council Regular Meeting Agenda XVI. ADJOURNMENT Page 13 City of Hermosa Beach Printed on 5/24/2023 13 May 10, 2022City Council Regular Meeting Agenda FUTURE MEETINGS AND CITY HOLIDAYS CITY COUNCIL MEETINGS: May 24, 2022 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting June 2, 2022 -Thursday - Adjourned Regular Meeting: 5:00 PM - Budget Study Session June 14, 2022 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting June 28, 2022 - No meeting due to lack of quorum July 12, 2022 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting July 21, 2022 -Thursday - Adjourned Regular Meeting: 6:00 PM - Joint meeting with all Boards/Commissions July 26, 2022 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting August 4, 2022 -Thursday - Adjourned Regular Meeting: 5:00 PM - Study Session August 9, 2022 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting August 23, 2022 - Tuesday - No Meeting (Dark for Summer Break) September 1, 2022 -Thursday - Adjourned Regular Meeting: 5:00 PM - Study Session September 13, 2022 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting September 27, 2022 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting October 11, 2022 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting October 22, 2022 -Saturday - Adjourned Regular Meeting: 8:00 AM - City Council Retreat October 25, 2022 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting November 3, 2022 -Thursday - Adjourned Regular Meeting: 5:00 PM - Closed Session, 6:00 PM - Regular Meeting November 8, 2022 - No meeting due to lack of quorum (General Election) November 22, 2022 - No meeting due to lack of quorum (Thanksgiving week) November 29, 2022 -Tuesday - Adjourned Regular Meeting: 5:00 PM - Closed Session, 6:00 PM - Regular Meeting (Installation of new officers) December 1, 2022 -Thursday - Adjourned Regular Meeting: 6:00 PM - Mayor Transition Ceremony & Reception December 13, 2022 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting December 27, 2022 - Tuesday - No Meeting (Dark for WInter Break) Page 14 City of Hermosa Beach Printed on 5/24/2023 14 May 10, 2022City Council Regular Meeting Agenda BOARDS, COMMISSIONS AND COMMITTEE MEETINGS: May 17, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting May 18, 2022 - Wednesday - 6:00 PM - Public Works Commission Meeting June 6, 2022 - Monday - 6:00 PM - Economic Development Committee Meeting June 16, 2022 - Thursday - 7:00 PM - Parks and Recreation Advisory Commission Meeting June 21, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting July 5, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting July 19, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting July 20, 2022 - Wednesday - 6:00 PM - Public Works Commission Meeting August 2, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting August 16, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting September 6, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting September 20, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting September 21, 2022 - Wednesday - 6:00 PM - Public Works Commission Meeting October 6, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting October 18, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting November 1, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting November 15, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting November 16 - Wednesday - 6:00 PM - Public Works Commission Meeting December 6, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting December 20, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting CITY OFFICES CLOSED FRIDAY-SUNDAY AND ON THE FOLLOWING DAYS: May 30, 2022 - Monday - Memorial Day July 4, 2022 - Monday - Independence Day September 5, 2022 - Monday - Labor Day November 24, 2022 - Thursday - Thanksgiving Day December 26, 2022 - Monday - Christmas Day (observed) January 2, 2023 - Monday - New Year's Day (observed) Page 15 City of Hermosa Beach Printed on 5/24/2023 15 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 22-0294 Honorable Mayor and Members of the Hermosa Beach City Council Closed Session of May 10, 2022 MINUTES:Approval of minutes of Closed Session held on April 26, 2022. City of Hermosa Beach Printed on 5/6/2022Page 1 of 1 powered by Legistar™16 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 22-0295 Honorable Mayor and Members of the Hermosa Beach City Council Closed Session of May 10, 2022 CONFERENCE WITH LEGAL COUNSEL: Pending 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. Name of Case:Sinkler, Chantelle vs. City of Hermosa Beach Case Number:Los Angeles Superior Court Case No. 21STCV05150 City of Hermosa Beach Printed on 5/6/2022Page 1 of 1 powered by Legistar™17 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 22-0296 Honorable Mayor and Members of the Hermosa Beach City Council Closed Session of May 10, 2022 CONFERENCE WITH LABOR NEGOTIATOR Government Code Section 54957.6 City Negotiator:Labor Attorney Daphne M. Anneet and City Manager Employee Organizations:Hermosa Beach Police Officers’ Association Police Management Bargaining Group Teamsters Union, Local 911 Professional and Administrative Employee Group Hermosa Beach Management Association Unrepresented Employees City of Hermosa Beach Printed on 5/6/2022Page 1 of 1 powered by Legistar™18 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 22-0276 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 RECOGNIZING LOCAL ARTIST KATY JENSSEN FOR HER MOSAIC SURFBOARDS City of Hermosa Beach Printed on 5/6/2022Page 1 of 1 powered by Legistar™19 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 22-0289 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 RECOGNIZING LEADERSHIP HERMOSA BEACH EMERGING LEADERS City of Hermosa Beach Printed on 5/6/2022Page 1 of 1 powered by Legistar™20 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 22-0278 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 RECOGNIZING NATIONAL POLICE AND PUBLIC WORKS WEEK MAY 15-21, 2022 City of Hermosa Beach Printed on 5/6/2022Page 1 of 1 powered by Legistar™21 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 22-0290 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 POLICE CHIEF UPDATE City of Hermosa Beach Printed on 5/6/2022Page 1 of 1 powered by Legistar™22 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 22-0291 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES AND STANDING COMMITTEE DELEGATES/ALTERNATES City of Hermosa Beach Printed on 5/6/2022Page 1 of 1 powered by Legistar™23 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0275 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 CITY COUNCIL MEETING MINUTES (City Clerk Myra Maravilla) Recommended Action: Staff recommends City Council approve the minutes of the City Council Meeting of April 21, 2022 and April 26, 2022. Attachments: 1.April 21, 2022 Adjourned Regular City Council Meeting 2.April 26, 2022 Regular City Council Meeting Respectfully Submitted by: Myra Maravilla, City Clerk Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 1 of 1 powered by Legistar™24 Page 1 of 4 Hermosa Beach Virtual Council Adjourned Regular Meeting Minutes Thursday, April 21, 2022 5:00 P.M. Virtual Meeting via Zoom City Council Michael Detoy, Mayor Ray Jackson, Mayor Pro Tem Stacey Armato, Councilmember Mary Campbell, Councilmember Justin Massey, Councilmember I. CALL TO ORDER The City Council Adjourned Regular Meeting of the City of Hermosa Beach met via a hybrid virtual/in-person meeting held pursuant to Executive Order AB 361 issued by Governor Gavin Newsom September 16, 2021 on April 21, 2022. Meeting was called to order by Mayor Detoy at 5:04 p.m. II. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Trent Larson. III. ROLL CALL Present: Mayor Detoy, Mayor Pro Tem Jackson, Councilmembers Armato, Campbell, and Massey. Absent: None. IV. ANNOUNCEMENTS - UPCOMING CITY EVENTS Mayor Detoy stated that tomorrow was officially Earth Day. He added that the City of Hermosa Beach has a long tradition of innovative environmental programs and is currently working on several programs that will both reinforce its commitment to the local and global environment and pave the way for a more sustainable future. He announced the following events were celebrating Earth Day in the city and the surrounding area: • The Beach Bound Hermosa Beach team will host a Beach Clean Up Event from 25 Page 2 of 4 9:00 a.m. to 3:00 p.m., South of the Pier. • Sea Sprite Hotel will host their first annual Earth Day Beach Clean Up from 10:00 a.m. to 4:00 p.m. at 1016 The Strand. • The Roundhouse Aquarium at the end of the Manhattan Beach Pier will have a “Keep It Green, Keep It Clean” Earth Day Celebration from 10:00 a.m. to 2:00 p.m. Mayor Detoy announced that the 2022 Surfers Walk of Fame Weekend will take place on Friday, April 22 and Saturday, April 23 to honor the 2020 inductees: Nick Christensen, Josette Lagardere, Charlie Quesnel, and John Teague. The weekend will kick off Friday, April 22nd with the Surfers Walk of Fame Kick-Off Party at the Community Theatre at 5:00 p.m. Saturday, April 23, will be the official Induction Ceremony at 11:00 a.m. on Pier Plaza with Spyder Surf Fest to immediately follow. A special addition to this year’s event was the Leadership Hermosa Beach Class of 2022 project, “Boards Across Hermosa”, which includes local artist’s creations on upcycled surfboards to reflect the Hermosa Beach lifestyle. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 21, 2022 Announcements) V. APPROVAL OF AGENDA MOTION: Councilmember Armato moved, seconded by Councilmember Massey to approve the agenda as presented. Motion carried unanimously. AYES: Mayor Detoy, Mayor Pro Tem Jackson, Councilmembers Armato, Campbell, and Massey. NOES: None. ABSENT: None. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 21, 2022 Approval of the Agenda) VI. PUBLIC PARTICIPATION The following people provided public comment: 1. Trent Larson 2. Matt Mc Cool 3. Laura Pena (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 21, 2022 Public Participation) 26 Page 3 of 4 VII. OPENING REMARKS City Manager Suja Lowenthal introduced the study session and thanked staff for their efforts in preparing the information for a thoughtful dialogue regarding the City’s Capital Improvement Program (CIP) for Fiscal Year 2022-23. City Manager Lowenthal stated that staff will review the FY 2021-22 projects and that the CIPs should be reviewed and updated on a regular basis. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 21, 2022 Opening Remarks) VIII. STUDY SESSION a. FISCAL YEAR 2022-23 CAPITAL IMPROVEMENT PROGRAM STUDY SESSION Public Works Director SanClemente reviewed the Fiscal Year 2022-23 Capital Improvement Program and gave a presentation on the CIPs for Council discussion. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 21, 2022 Study Session) IX. COUNCIL QUESTIONS Councilmembers deliberated and asked questions on a myriad of topics, including additional staff allocation, park restrooms, timeframes, Go Hermosa app, CPI costs estimating, Library Assessment Project, community needs assessment on the theatre, historical funding, how other agencies fund CIPs, grants, possible revenue streams, Business District Study, Lighting Assessment Study, Park Master Plan, studies and costs, expediting processes, bidding processes, design work, Pavement Management Plan, sewer system at Hermosa Ave., annual resurfacing, South Park, utility box wrapping, lighting, comprehensive studies, city yard, and trailer update. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 21, 2022 Council Questions) X. PUBLIC PARTICIPATION The following people provided public comment: 1. Gary Clark 2. Trent Larson 3. Tony Higgins 4. Matt Mc Cool 27 Page 4 of 4 5. Lori Ford 6. Laura Pena (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 21, 2022 Public Participation) XI. COUNCIL DISCUSSION City Council discussed that an update on the current CIPs will be presented with the upcoming budget process. Mayor Pro Tem Jackson announced that he attended the Eagle Scout Ceremony for Kieran Lyons and congratulated him on his success. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 21, 2022 Council Discussion) XII. ADJOURNMENT Mayor Detoy adjourned the meeting at 8:10 p.m. He announced the next City Council Regular Meeting to be held on April 26, 2022, at 5:00 p.m. for a Closed Session, followed by the Open Session at 6:00 p.m. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 21, 2022 Adjournment). Myra Maravilla, City Clerk 28 Page 1 of 11 Hermosa Beach Hybrid Council Regular Meeting Minutes Thursday, April 26, 2022 Closed Session - 5:00 P.M. Regular Session - 6:00 P.M. Virtual Meeting via Zoom City Council Michael Detoy, Mayor Ray Jackson, Mayor Pro Tem Stacey Armato, Councilmember Mary Campbell, Councilmember Justin Massey, Councilmember I. CALL TO ORDER The City Council Regular Meeting of the City of Hermosa Beach met via a hybrid meeting held on April 26, 2022, pursuant to Executive Order AB 361 issued by Governor Gavin Newsom on September 16, 2021. The Closed Session meeting was called to order by Mayor Detoy at 5:00 p.m. II. ROLL CALL Present: Mayor Detoy, Mayor Pro Tem Jackson, Councilmembers Campbell, and Massey. Absent: Councilmember Armato was excused from this meeting. Michael Jenkins, City Attorney, requested to add a closed session item to the Closed Session Agenda: CONFERENCE WITH LEGAL COUNSEL: Pending 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. Name of Case: King v. City of Hermosa Beach 29 Page 2 of 11 Case Number: Los Angeles Superior Court Case No. 20STCV19777 III. PUBLIC COMMENT ON CLOSED SESSION ITEMS The following person provided public comment: 1. Matt McCool MOTION: Councilmember Massey moved, seconded by Mayor Pro Tem Jackson to add the Closed Session item King vs City of Hermosa Beach to the Closed Session agenda. AYES: Mayor Detoy, Mayor Pro Tem Jackson, Councilmembers Campbell, and Massey NOES: None ABSENT: Councilmember Armato Motion carried: 4-0-1 IV. RECESSED TO CLOSED SESSION The City Council recessed to Closed Session at 5:05 p.m. to hear the following Closed Session items and the added closed session item King v. City of Hermosa Beach. a. 22-0235 MINUTES: Approval of minutes of Closed Session held on April 12, 2022. b. 22-0262 CONFERENCE WITH LEGAL COUNSEL: Pending 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. Name of Case: Richard Taylor v. City of Hermosa Beach Case Number: Workers’ Compensation Appeals Board (WCAB) No. ADJ13695261 c. 22-0268 CONFERENCE WITH LEGAL COUNSEL: Pending 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. Name of Case: Arcadia et al. v. Southern California Edison Corp. Case Number: Santa Barbara County Superior Court Case No. 20CV02026 30 Page 3 of 11 d. 22-0179 CONFERENCE WITH LABOR NEGOTIATOR Government Code Section 54957.6 City Negotiator: Labor Attorney Daphne M. Anneet and City Manager Employee Organizations: Hermosa Beach Police Officers’ Association Police Management Bargaining Group Teamsters Union, Local 911 Professional and Administrative Employee Group Hermosa Beach Management Association Unrepresented Employees RECESSED TO OPEN SESSION I. CALL TO ORDER The City Council Regular Meeting of the City of Hermosa Beach met via a hybrid meeting held on April 26, 2022, pursuant to Executive Order AB 361 issued by Governor Gavin Newsom on September 16, 2021. The Regular meeting was called to order by Mayor Detoy at 6:12 p.m. II. PLEDGE OF ALLEGIANCE The pledge of allegiance was led by Trent Larson. III. ROLL CALL Present: Mayor Detoy, Mayor Pro Tem Jackson, Councilmembers Campbell, and Massey. Absent: Councilmember Armato was excused from this meeting. City Clerk Maravilla announced a quorum. IV. CLOSED SESSION REPORT City Attorney, Michael Jenkins, reported out of closed session and stated no reportable action. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 26, 2022 Closed Session Report) V. ANNOUNCEMENTS - UPCOMING CITY EVENTS Mayor Detoy thanked Lisa Nichols and her team for organizing the Surfer Walk of Fame and also announced the upcoming the Hermosa Beach Summer Sidewalk Celebration 31 Page 4 of 11 on Saturday April 30, 2022, and Sunday May 1, 2022, from 11:00 a.m. to 6:00 p.m. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 26, 2022 Announcements Upcoming City Events) VI. APPROVAL OF AGENDA MOTION: Councilmember Campbell moved, seconded by Mayor Pro Tem Jackson to approve the agenda as presented. AYES: Mayor Detoy, Mayor Pro Tem Jackson, Councilmembers Campbell, and Massey NOES: None ABSENT: Councilmember Armato Motion carried, 4-0-1. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 26, 2022 Approval of the Agenda) VII. PROCLAMATIONS / PRESENTATIONS a. COVID-19 HEALTH UPDATE FROM BEACH CITIES HEALTH DISTRICT b. LOS ANGELES COUNTY FIRE SERVICES AND MCCORMICK AMBULANCE 2021 ANNUAL REVIEW c. RECOGNIZING FORMER CITY PROSECUTOR ANA PAPADAKIS FOR HER SERVICE TO THE CITY (Complete audio and video are available upon request at the City Clerk’s Office or can be accessed by clicking the following link: April 26, 2022 Proclamations and Presentations) VIII. CITY MANAGER REPORT City Manager Lowenthal announced the promotion of Dennis Hrboka to Public Works Crew Supervisor and Abraham Villa to Public Works Maintenance Worker II, and Jay Plata to Police Services Supervisor. Ms. Lowenthal also welcomed Johnathan Massey, Interim Assistant Planner to the City of Hermosa Beach. Also, announced was Johnathon Masi as Interim Assistant Planner who started this week. City Manager Lowenthal gave a brief update regarding the Letter of Support for Assembly Bill 32 Page 5 of 11 1789: Trails and Greenways Program. She stated that last week, Mayor Detoy sent a letter of support for Assembly Bill 1789. City Manager Lowenthal stated that at the March 31, 2022, Adjourned Meeting, City Council approved a project to increase Greenbelt accessibility for users of all abilities, including those with mobility challenges. The project includes installation of a decomposed granite trail on a portion of the Greenbelt and will serve as a pilot program to explore and potentially later expand the use of decomposed granite on the Greenbelt for increased accessibility. Also, she stated that staff will continue to explore funding opportunities for the Greenbelt pilot project and should AB 1789 be approved, apply for grant funding. City Manager Lowenthal announced that the Capital Improvement Program (CIP) project 682: Parking Lot D Improvements was selected to receive $423,950 in Safe, Clean Water grant funding last week. The newly awarded funds will be combined with $433,650 in grant funds previously received from the Coastal Conservancy to cover the cost of construction. The project will completely rehabilitate Parking Lot D, located at Manhattan Avenue and 14th Street. The project is estimated to be completed in late 2023. City Manager Lowenthal further announced the city will host a COVID-19 vaccination clinic on Thursday, May 5th from 3 p.m. to 5 p.m. at the Clark building. The clinic will be open to those 5 years of age and older and first and second doses of COVID-19 vaccines, along with boosters for Pfizer, Moderna and Johnson & Johnson. City Manager Lowenthal shared that May 1st through May 7th is Public Service Awareness Week and invited the community to honor public servants by using the prompt “I appreciate public servants because...” and the hashtag #PSAW. Also, the same week of May 1st through 7th will be the 53rd Annual Professional Municipal Clerks Week. The week-long celebration began in 1969 to celebrate the importance of the role of city clerks. City Manager Lowenthal announced that May 7 is Fire Service Day. Fire Service Day offers the public an opportunity for residents to visit their local fire station to learn about the services provided by the dedicated men and women who serve as firefighters. Los Angeles County Fire Department invites Hermosa Beach residents and visitors to visit Fire Station 100 on Saturday, May 7, 2022, from 10:00 a.m. to 2:00 p.m. to meet the firefighters and get a tour of the fire station. Chief LeBaron provided his update. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 26, 2022 City Manager Report) IX. PUBLIC COMMUNICATIONS/ORAL AND WRITTEN COMMUNICATIONS The following people provided public comment: 1. Trent Larson 2. Kent Allen 3. Matt McCool 4. Laura Pena MOTION: Councilmember Campbell, seconded by Mayor Pro Tem Jackson to receive and file Written Communication. 33 Page 6 of 11 AYES: Mayor Detoy, Mayor Pro Tem Jackson, Councilmembers Campbell, and Massey NOES: None ABSENT: Councilmember Armato Motion carried, 4-0-1. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 26, 2022 Public Communication/Oral Written Communications) X. CITY COUNCIL COMMENTS a. UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES AND STANDING COMMITTEE DELEGATES/ALTERNATES Mayor Detoy announced Mayor Pro Tem Jackson and Councilmember Campbell attended the Beach Ball which is a fundraiser for the Leadership of Hermosa and acknowledged the nominees. Councilmember Campbell acknowledged HERmosa and highlighted their fundraising efforts. Councilmember Massey made comments regarding the Green Belt. Mayor Pro Tem made comments regarding his experience at Leadership Hermosa event. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 26, 2022 City Council Comments) XI. CONSENT CALENDAR a. MINUTES b. CHECK REGISTERS c. MEMORANDUM REGARDING REVENUE REPORT, COVID-19 REVENUE REPORTS, EXPENDITURE REPORT, AND CIP REPORT BY PROJECT FOR MARCH 2022. d. MEMORANDUM REGARDING CITY TREASURER’S REPOT AND CASH BALANCE REPORT FOR MARCH 2022 34 Page 7 of 11 e. CANCELLATION OF CERTAIN CHECKS f. CAPITAL IMPROVEMENT PROGRAM STATUS REPORT AS OF APRIL 20, 2022 g. ACTION MINUTES OF THE PLANNING COMMISSION SPECIAL MEETING OF APRIL 6, 2022 AND REGULAR MEETING OF APRIL 19, 2022 h. PLANNING COMMISSION TENTATIVE FUTURE AGENDA ITEMS i. FINDINGS TO HOLD REMORT TELECONFERENCE/MEETINGS, PURSUANT TO ASSEEMBLY BILL 361 j. AGENDA ITEM MOVED TO SEPARATE DISCUSSION k. AGENDA ITEM MOVED TO SEPARATE DISCUSSION l. AGENDA ITEM MOVED TO SEPARATE DISCUSSION MOTION: Councilmember Massey moved, seconded by Mayor Pro Tem Jackson to place agenda items j, k, and l to Separate Discussion and approve the remainder of the Consent Calendar. AYES: Mayor Detoy, Mayor Pro Tem Jackson, Councilmembers Campbell and Massey NOES: None ABSENT: Councilmember Armato Motion carried, 4-0-1. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 26, 2022 Consent Calendar) XII. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION j. PURCHASE OF LICENSE AUTOMATED PLATE READERS (ALPR) FOR POLICE DEPARTMENT The following people provided public comment: 1. Trent Larson 2. Matt McCool MOTION: Mayor Pro Tem Jackson moved, seconded by Councilmember Campbell to authorize the sole source selection of Vigilant Solutions, LLC to purchase four 35 Page 8 of 11 fixed automatic license plate readers at a total purchase price of $56,932.50. AYES: Mayor Detoy, Mayor Pro Tem Jackson, Councilmembers Campbell and Massey NOES: None ABSENT: Councilmember Armato Motion carried, 4-0-1. k. BROWN ACT DEMANDS FILED BY KENT ALLEN AND MATT MCCOOL The following people provided public comment: 1. Matt McCool MOTION: Mayor Pro Tem Jackson moved, seconded by Councilmember Campbell to receive and file this report and direct the City Attorney to send response letters pursuant to Government Code 54960.1(c)(2), communicating the City Council's determination that the Demand Letters incorrectly assert Brown Act violations where no violations occurred, and as such, the City Council need not cure or correct the challenged action. AYES: Mayor Detoy, Mayor Pro Tem Jackson, Councilmembers Campbell and Massey NOES: None ABSENT: Councilmember Armato Motion carried: 4-0-1. l. ADOPTION OF ORDINANCE NO. 22-1445 OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AMENDAING THE HERMOSA BEACH MUNICIPAL CODE CHAPTER 12.20: BEACH AND STRAND REGULATIONS. The following people provided public comment: 1. Matt McCool 2. Lauren Pena MOTION: Councilmember Massey moved, seconded by Mayor Pro Tem Jackson to waive the full second reading and adopt by title Ordinance 22-1445; and direct staff to publish a summary ordinance. AYES: Mayor Detoy, Mayor Pro Tem Jackson, Councilmembers Campbell and Massey 36 Page 9 of 11 NOES: None ABSENT: Councilmember Armato Motion carries, 4-0-1. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 26, 2022 Item removed from Consent Calendar) XIII. PUBLIC HEARINGS - TO COMMENCE AT 6:30 P.M. NONE. XIV. MUNICPAL MATTERS a. APPROVAL OF A RESOLUTION ACCEPTING THE PRELIMINARY ENGINEER’S REPORT FORTHE SEWER SERVICE CHARGES AND SETTING A MAJORITY PROTEST HEARING FOR JULY 12, 2022 SETTING A NEW INCREASED RATE AND FOR APPROVING THE ANNUAL LEVY OF THE CHARGE MOTION: Councilmember Campbell moved, seconded by Councilmember Massey to adopt the resolution accepting the Preliminary Engineer’s Report and setting the majority protest public hearing for July 12, 2022 and direct the City Clerk to mail all notices required under Proposition 218 and other applicable state laws. AYES: Mayor Detoy, Mayor Pro Tem Jackson, Councilmembers Campbell and Massey NOES: None ABSENT: Councilmember Armato Motion carries, 4-0-1. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 26, 2022 Municipal Matter item a) b. INTRODUCE ORDINANCE TO ADOPT A MILITARY USE EQUIPMENT POLICY PURSUANT TO ASSEMBLY BILL 481. The following people provided public comment: 1. Matt McCool MOTION: Councilmember Massey moved, seconded by Mayor Pro Tem Jackson to introduce and waive first reading of Ordinance adopting a Military Use Equipment Policy pursuant to Assembly Bill 481 (“AB 481”). 37 Page 10 of 11 AYES: Mayor Detoy, Mayor Pro Tem Jackson, Councilmembers Campbell and Massey NOES: None ABSENT: Councilmember Armato Motion carries, 4-0-1. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 26, 2022 Municipal Matter item b) c. VACANCIES-CIVIL SERVICE BOARD UPCOMING EXPIRATION OF TERM The following people provided public comment: 1. Matt McCool MOTION: Councilmember Campbell moved, seconded by Mayor Pro Tem Jackson to direct staff to immediately advertise and request applications from interested parties for one Civil Service Board Member for a four-year term ending July 15, 2026. AYES: Mayor Detoy, Mayor Pro Tem Jackson, Councilmembers Campbell and Massey NOES: None ABSENT: Councilmember Armato Motion carries: 4-0-1. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 26, 2022 Municipal Matter item c) XIV. FUTURE AGENDA ITEMS a. TENTATIVE FUTURE AGENDA ITEMS Council received and filed as there were no changes to the tentative agenda item. ADJOURNMENT Mayor Detoy adjourned the meeting at 8:53 p.m. to the Study Session on Monday, May 9, 2022 at 6:00 p.m. for a study session on the cannabis initiative. (Complete audio and video are available upon request at the City Clerk’s office or can be accessed by clicking the following link: April 16, 2022 Meeting Adjournment). 38 Page 11 of 11 Myra Maravilla, City Clerk 39 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0274 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 CHECK REGISTERS (Finance Director Viki Copeland) Recommended Action: Staff recommends City Council ratify the following check registers. Attachments: 1.Check Register 4/13/2022 2.Check Register 4/20/2022 Respectfully Submitted by: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 1 of 1 powered by Legistar™40 04/13/2022 Check Register CITY OF HERMOSA BEACH 1 5:12:14PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 99481 4/13/2022 AT&T 960 461-1985 555 7 PD COMPUTER CIRCUITS/APR2200321 001-2101-4304 239.57 Total : 239.5700321 99482 4/13/2022 ATHENS SERVICES 12017538 STREET SWEEPING/MAR2216660 001-3104-4201 16,844.52 001-3301-4201 11,225.47 001-3304-4201 1,546.74 001-6101-4201 1,649.27 STEAM CLEANING SVS/MAR2212017538A 001-3301-4201 5,065.43 001-3304-4201 1,427.64 SCRUBBER SVS/MAR2212017538B 001-3301-4201 4,779.66 001-3304-4201 764.74 Total : 43,303.4716660 99483 4/13/2022 ATHENS SERVICES 12064549 PD SHREDDING/APR2216660 001-2101-4309 45.39 Total : 45.3916660 99484 4/13/2022 BRAUN LINEN SERVICE 1754777 MAT REQ 583905/PRISONER LAUNDRY00163 001-2101-4306 68.23 MAT REQ 583908/PRISONER LAUNDRY1756562 001-2101-4306 84.13 MAT REQ 583910/PRISONER LAUNDRY1758387 001-2101-4306 42.60 MAT REQ 583913/PRISONER LAUNDRY1760145 001-2101-4306 42.60 Total : 237.5600163 99485 4/13/2022 CAPITAL WHOLESALE LIGHTING 451571 MAT REQ#638841/ELECTRICAL MAINT SUPPLIES21720 105-2601-4309 361.62 Total : 361.6221720 99486 4/13/2022 CDWG T928505 FY 2122 PC REFRESH ROUND 209632 715-1206-5401 10,273.00 715-1206-5401 959.88 Attachment 1 41 04/13/2022 Check Register CITY OF HERMOSA BEACH 2 5:12:14PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 11,232.88 99486 4/13/2022 CDWG09632 99487 4/13/2022 CLEAN ENERGY CE12482939 COMPRESSED NATURAL GAS/MAR2209694 715-3109-4310 46.72 Total : 46.7209694 99488 4/13/2022 CLEAN POWER ALLIANCE COHB-0222 CLEAN POWER ALLIANCE FEASIBILITY STUDY22524 001-1201-4251 10,000.00 Total : 10,000.0022524 99489 4/13/2022 COASTLINE EQUIPMENT COMPANY 898452 SEAT BELT FOR JOHN DEERE00045 715-3104-4311 367.92 Total : 367.9200045 99490 4/13/2022 COLANTUONO, HIGHSMITH &51388 LEGAL SERVICES/UUT LAWSUIT/MAR2221871 705-1133-4201 382.14 Total : 382.1421871 99491 4/13/2022 COMMERCIAL BUILDING MANAGEMENT 68778 JANITORIAL SVS/COVID PORTER/MAR2220627 001-4204-4201 6,861.00 157-2702-4201 4,296.44 Total : 11,157.4420627 99492 4/13/2022 CONTINENTAL MAPPING SERVICE 040622 PUBLIC NOTICE SERVICES APR2220398 001-4101-4201 1,000.00 Total : 1,000.0020398 99493 4/13/2022 DEPARTMENT OF JUSTICE 570989 MAT REQ 973985/FINGERPRINTING/MAR2200364 001-1203-4251 260.00 Total : 260.0000364 99494 4/13/2022 DEWEY PEST CONTROL Account 1233239 SEWER RAT ABATEMENT/APR2211449 160-3102-4201 278.00 PEST CONTROL/APR22Account 759408 001-4204-4201 849.00 Total : 1,127.0011449 99495 4/13/2022 DIV OF THE STATE ARCHITECT PO 37442 1ST QUARTER CASP FEE PAYMENT18263 001-6851 317.20 42 04/13/2022 Check Register CITY OF HERMOSA BEACH 3 5:12:14PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 317.20 99495 4/13/2022 DIV OF THE STATE ARCHITECT18263 99496 4/13/2022 DOVE, GUY PO 37462 PER DIEM FORCE INSTRUCTOR SCHOOL19358 001-2101-4312 225.00 Total : 225.0019358 99497 4/13/2022 EASY READER ER22041401 1/2 PG AD-SURFERS WALK OF FAME00181 001-4601-4302 650.00 1 PG AD-SURFERS WALK OF FAMEER22041402 001-4601-4302 1,300.00 Total : 1,950.0000181 99498 4/13/2022 FJR PACIFIC, INC.25143 AC REPAIR IN SHOOTING RANGE21217 715-4204-4201 2,310.00 Total : 2,310.0021217 99499 4/13/2022 FRONTIER 310-318-0113-1203155 EOC ANALOG LINES/APR2219884 715-1206-4304 1,239.42 Total : 1,239.4219884 99500 4/13/2022 FRONTIER 310-372-6373-0311045 PERSONNEL FAX LINE/APR2219884 001-1203-4304 51.06 Total : 51.0619884 99501 4/13/2022 FRONTIER 310-318-8751-0128095 CASHIER TAP LINES/APR2219884 001-1204-4304 47.55 Total : 47.5519884 99502 4/13/2022 GATES, GEORGE H Parcel 4188 012 089 STREET LIGHT PROPERTY TAX REBATE FY2121346 105-3105 24.61 Total : 24.6121346 99503 4/13/2022 GROH, MARK LEE HB-025 CITATION HEARING SVS APR2221597 001-1204-4201 240.00 Total : 240.0021597 99504 4/13/2022 HUBLER, SKYLER Permit 23-02252-GP PARKING PERMIT REFUND22580 001-3843 40.00 Total : 40.0022580 43 04/13/2022 Check Register CITY OF HERMOSA BEACH 4 5:12:14PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 99505 4/13/2022 IK CONSULTING, LLC IK-HB0322 ACCELA CONSULTING SVS/MAR 2222222 715-4201-4201 543.75 Total : 543.7522222 99506 4/13/2022 JOHN M CRUIKSHANK, INC.000017316 MUNI PIER ASSESSMENT SVS/MAR2213840 191-8629-4201 9,477.00 Total : 9,477.0013840 99507 4/13/2022 M6 CONSULTING INC 1895 PLAN CHECKS/SKECHERS/NOV2119487 001-2148 1,609.76 PLAN CHECKS/DEC 211934 001-4202-4201 495.00 PLAN CHECKS/JAN 221994 001-4202-4201 4,235.00 PLAN CHECKS/FEB 222029 001-4202-4201 6,100.00 PLAN CHECKS/SKECHERS/FEB222030 001-2148 775.00 Total : 13,214.7619487 99508 4/13/2022 MATEKO, KURT PO 37465 PER DIEM FORCE INSTRUCTOR SCHOOL22437 001-2101-4312 225.00 Total : 225.0022437 99509 4/13/2022 MCMURROUGH, JENNIFER PO 37448 SCHOOL REIMBURSEMENT20720 001-4202-4317 55.00 Total : 55.0020720 99510 4/13/2022 MERCHANTS LANDSCAPE SERVICES 59624 CITYWIDE LANDSCAPING SVS MAR2218071 001-6101-4201 21,200.00 MEDIANS/PARKWAY SVS MAR2259625 105-2601-4201 3,600.00 MULCH FOR COMMUNITY CENTER59689 125-8548-4201 3,900.00 Total : 28,700.0018071 99511 4/13/2022 MILLER, CLAIRE B Parcel 4184 023 007 STREET LIGHT & SEWER TAX REBATE FY2113183 001-6871 126.60 105-3105 24.61 44 04/13/2022 Check Register CITY OF HERMOSA BEACH 5 5:12:14PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 151.21 99511 4/13/2022 MILLER, CLAIRE B13183 99512 4/13/2022 NETRIX LLC 767796-16 IT SUPPORT SERVICES/APR2211539 715-1206-4201 16,096.21 Total : 16,096.2111539 99513 4/13/2022 OFFICE DEPOT 235111168001 MAT REQ 987426/OFFICE SUPPLIES13114 001-4601-4305 78.51 Total : 78.5113114 99514 4/13/2022 ONWARD ENGINEERING 6279 INSPECTION SVS/SKECHERS TUNNEL/MAR2221596 001-2148 12,650.00 Total : 12,650.0021596 99515 4/13/2022 PARS 50302 ALT RETIREMENT PLAN ADMIN FEES/FEB2214693 001-1101-4185 6.76 001-1204-4185 0.63 001-3302-4185 3.13 001-4204-4185 5.86 001-4101-4185 6.54 001-4201-4185 6.54 001-4601-4185 104.90 Total : 134.3614693 99516 4/13/2022 PEYTON CRAMER FORD 518235 MAT REQ#768661/SUPPLIES&LABOR/REPAIR11926 715-2101-4311 691.25 Total : 691.2511926 99517 4/13/2022 PLATA, YUNUEN TR#906 PER DIEM FOR TR#90618411 001-2101-4313 450.00 Total : 450.0018411 99518 4/13/2022 R3 CONSULTING GROUP 117194 SOLID WASTE MARKET/SVS ANALYSIS MAR2222538 001-2149 5,997.50 Total : 5,997.5022538 99519 4/13/2022 RED SECURITY GROUP, LLC 75447 MAT REQ#768952/DUPLICATE RESTROOM KEYS13255 001-3104-4309 20.80 Total : 20.8013255 45 04/13/2022 Check Register CITY OF HERMOSA BEACH 6 5:12:14PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 99520 4/13/2022 RODRIGUEZ, NATALIA PO 37432 PER DIEM - RODRIGUEZ21300 001-2101-4313 15.00 Total : 15.0021300 99521 4/13/2022 ROSCOE, KIMBERLY ANN PO 37433 INSTRUCTOR PAYMENT CLASS NO. 974620921 001-4601-4221 1,541.27 Total : 1,541.2720921 99522 4/13/2022 ROWE, JOANNE Voucher 2003202.003 REFUND-CANCELLED THEATRE RENTAL22582 001-2111 500.00 Total : 500.0022582 99523 4/13/2022 SOCAL GAS 170-781-3287 9 YARD CNG STATION/AUG 2100170 715-3104-4310 71.02 715-4204-4310 71.02 715-6101-4310 71.03 YARD CNG STATION/SEPT 21170-781-3287 9 715-3104-4310 42.66 715-4204-4310 42.66 715-6101-4310 42.66 YARD CNG STATION/OCT 21170-781-3287 9 715-3104-4310 52.39 715-4204-4310 52.39 715-6101-4310 52.40 YARD CNG STATION/NOV 21170-781-3287 9 715-3104-4310 54.38 715-4204-4310 54.38 715-6101-4310 54.38 YARD CNG STATION/MAR 22170-781-3287 9 715-3104-4310 102.44 715-4204-4310 102.44 715-6101-4310 102.43 DUPLICATE PAYMENT8/26/21-Dup Pymt 001-4204-4303 -196.48 DUPLICATE PAYMENT9/30/21-Dup Pymt 001-4204-4303 -204.84 Total : 567.3600170 99524 4/13/2022 SOCAL GAS 011 004 5767 8 YARD/BLDGS/NAT GAS/JULY 2100170 46 04/13/2022 Check Register CITY OF HERMOSA BEACH 7 5:12:14PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 99524 4/13/2022 (Continued)SOCAL GAS00170 001-4204-4303 21.67 Total : 21.6700170 99525 4/13/2022 SOUTHERN CALIFORNIA EDISON CO 700057262780 ELECTRICITY/3.8.22-4.5.2200159 105-2601-4303 68.74 ELECTRICITY/MAR22700156101336 001-4204-4303 11,261.13 001-6101-4303 323.75 ELECTRICITY/MAR 22700222378305 001-6101-4303 2,084.70 ELECTRICITY/3.8.22-4.5.22700234897163 001-3304-4303 2,638.70 ELECTRICITY 2/28/22-3/28/22700296306651 105-2601-4303 18.26 ELECTRICITY/3.8.22-4.5.22700304673105 160-3102-4201 35.52 ELECTRICITY/3.9.22-4.6.22700338055956 001-4204-4303 1,183.72 ELECTRICITY/3.10.22-4.7.22700371314327 105-2601-4303 134.86 ELECTRICITY 2/28/22-3/28/22700382668983 001-3104-4303 730.72 105-2601-4303 2,912.86 001-4204-4303 1,568.47 Total : 22,961.4300159 99526 4/13/2022 SPCALA 2022-0331 ANIMAL SHELTER SVS/MAR2218821 001-3302-4201 875.00 Total : 875.0018821 99527 4/13/2022 SUNSTATE EQUIPMENT CO LLC 10692873-001 BOOM LIFT FOR CLARK FIELD14019 105-2601-4201 2,671.99 Total : 2,671.9914019 99528 4/13/2022 THAYER'S DIST. & ELECTRICAL 7730 BARD STREET GATE REPAIR21075 715-4204-4201 1,600.00 Total : 1,600.0021075 47 04/13/2022 Check Register CITY OF HERMOSA BEACH 8 5:12:14PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 99529 4/13/2022 THE BANK OF NEW YORK MELLON 252-2461322 INVESTMENT SAFEKEEPING JAN-MAR2213270 001-1141-4201 875.00 Total : 875.0013270 99530 4/13/2022 TORRANCE AUTO PARTS 305543 MAT REQ 768668 AUTO REPAIR/MAINT PARTS16735 715-4206-4309 93.27 Total : 93.2716735 99531 4/13/2022 TRANBARGER, KELLY PO 37434 PER DIEM-TRAINING 4/18-4/19/2220198 001-2101-4313 75.00 Total : 75.0020198 99532 4/13/2022 UNDERGROUND SERVICE ALERT 320220317 UNDERGROUND SERVICE ALERT/MAR2208207 160-3102-4201 142.00 Total : 142.0008207 99533 4/13/2022 UNION BANK OF CALIFORNIA, PARS #6746019200PO 37008 PARS/OPEB CONTRIBUTIONS/APR2214528 001-1101-4190 54.00 001-1121-4190 560.00 001-1201-4190 2,224.00 001-1202-4190 1,334.00 001-1203-4190 537.00 001-1204-4190 956.00 001-2101-4190 19,276.00 001-3104-4190 896.00 001-3301-4190 102.00 001-3302-4190 2,793.00 001-4101-4190 1,408.00 001-4201-4190 1,282.00 001-4202-4190 1,395.00 001-4204-4190 664.00 001-4601-4190 835.00 001-6101-4190 845.00 105-2601-4190 171.00 160-3102-4190 251.00 161-3109-4190 183.00 715-4206-4190 423.00 Total : 36,189.0014528 48 04/13/2022 Check Register CITY OF HERMOSA BEACH 9 5:12:14PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 99534 4/13/2022 UNITED SITE SERVICES 114-12421433 TOILET RENTAL/SOUTH PARK/SEPT 2118753 301-8669-4201 2,362.97 TOILET RENTAL/CLARK FIELD/SEPT 21114-12421437 301-8669-4201 2,362.97 TOILET RENTAL/SOUTH PARK/OCT 21114-12520279 301-8669-4201 1,772.66 TOILET RENTAL/CLARK FIELD/OCT 21114-12520282 301-8669-4201 2,116.60 TOILET RENTAL/SOUTH PARK/NOV 21114-12616660 301-8669-4201 1,772.66 TOILET RENTAL/CLARK FIELD/NOV 21114-12616661 301-8669-4201 2,116.60 TOILET RENTAL/SOUTH PARK/DEC 21114-12701190 301-8669-4201 1,772.66 TOILET RENTAL/CLARK FIELD/DEC 21114-12701191 301-8669-4201 2,116.60 TOILET RENTAL/SOUTH PARK/JAN 22114-12788536 301-8669-4201 1,772.66 TOILET RENTAL/CLARK FIELD/JAN 22114-12788537 301-8669-4201 2,116.60 TOILET RENTAL/SOUTH PARK/FEB 22114-12871125 301-8669-4201 1,910.66 TOILET RENTAL/CLARK FIELD/FEB 22114-12871127 301-8669-4201 2,280.10 TOILET RENTAL/SOUTH PARK/MAR 22114-12948587 301-8669-4201 1,910.66 TOILET RENTAL/CLARK FIELD/MAR 22114-12948588 301-8669-4201 2,280.10 Total : 28,664.5018753 99535 4/13/2022 US BANK 1977913 REFUNDING BONDS INTEREST PMT FY2219648 201-1220-6701 155,100.00 Total : 155,100.0019648 99536 4/13/2022 VIVIANI, PHILIP Permit 23-08826-VP PARKING PERMIT REFUND22581 001-3843 40.00 Total : 40.0022581 99537 4/13/2022 ZUBER, BRENT PO 37466 PER DIEM BEHAVIOR ANALYSIS TRAINING21393 49 04/13/2022 Check Register CITY OF HERMOSA BEACH 10 5:12:14PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 99537 4/13/2022 (Continued)ZUBER, BRENT21393 001-2101-4312 225.00 Total : 225.0021393 99538 4/13/2022 ZUMAR INDUSTRIES INC 95954 MAT REQ 638945/STREET SIGN MAINTENANCE01206 001-3104-4309 744.60 MAT REQ 638946/STREET SIGN MAINTENANCE95955 001-3104-4309 929.83 Total : 1,674.4301206 289340 4/6/2022 PITNEY BOWES INC 4/13/22 Check run POSTAGE METER REFILL/APRIL 2213838 001-1208-4305 1,000.00 Total : 1,000.0013838 397332 5/24/2021 SOCAL GAS 097 904 5900 3 CITY-OWNED BLDGS GAS/4.8-5.6.2100170 001-4204-4303 95.83 Total : 95.8300170 397361 5/24/2021 SOCAL GAS 102 104 5900 3 CITY-OWNED BLDGS GAS/4.8-5.6.2100170 001-4204-4303 60.06 Total : 60.0600170 397588 5/24/2021 SOCAL GAS 139 104 4600 7 CITY-OWNED BLDGS GAS/4.8-5.6.2100170 001-4204-4303 14.30 Total : 14.3000170 397609 5/24/2021 SOCAL GAS 141 204 4600 1 CITY-OWNED BLDGS GAS/4.8-5.6.2100170 001-4204-4303 20.02 Total : 20.0200170 439686 8/24/2021 SOCAL GAS 097 904 5900 3 CITY-OWNED BLDGS GAS/7.8.21-8.6.2100170 001-4204-4303 86.50 Total : 86.5000170 439726 8/24/2021 SOCAL GAS 102 104 5900 3 CITY-OWNED BLDGS GAS/7.8-8.6.2100170 001-4204-4303 63.46 Total : 63.4600170 439957 8/24/2021 SOCAL GAS 139 104 4600 7 CITY-OWNED BLDGS GAS/7.8-8.6.2100170 001-4204-4303 14.30 50 04/13/2022 Check Register CITY OF HERMOSA BEACH 11 5:12:14PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 14.30 439957 8/24/2021 SOCAL GAS00170 439980 8/24/2021 SOCAL GAS 141 204 4600 1 CITY-OWNED BLDGS GAS/7.8-8.6.2100170 001-4204-4303 18.91 Total : 18.9100170 Bank total : 429,897.20 67 Vouchers for bank code :boa 429,897.20Total vouchers :Vouchers in this report 67 "I hereby certify that the demands or claims covered by the checks listed on pages 1 to 11 inclusive, of the check register for 4/13/2022 are accurate funds are available for payment, and are in conformance to the budget." By Finance Director Date 4/13/22 51 04/20/2022 Check Register CITY OF HERMOSA BEACH 1 5:45:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 99539 4/20/2022 ADAMSON INDUSTRIES INV368268 MAT REQ#838650/SHOOTING RANGE BEAN BAGS00138 001-2101-4201 248.27 Total : 248.2700138 99540 4/20/2022 ADMINISTRATIVE SERVICES CO OP 220119 TAXI VOUCHER PROGRAM CARDS/JAN2211437 145-3404-4201 1,580.82 145-3853 -64.00 TAXI VOUCHER PROGRAM CARDS/FEB22220220 145-3404-4201 1,602.41 145-3853 -66.00 TAXI VOUCHER PROGRAM CARDS/MAR22220316 145-3404-4201 1,840.76 145-3853 -81.00 Total : 4,812.9911437 99541 4/20/2022 AMERICAN GUARD SERVICES, INC. INV40726 CROSSING GUARD SERVICES/JAN2220685 146-2102-4201 23,612.36 Total : 23,612.3620685 99542 4/20/2022 CALIFORNIA MARKING DEVICE 6989 MAT REQ 583925/NAMEPLATES00262 001-2101-4305 48.18 Total : 48.1800262 99543 4/20/2022 CDWG V602001 P.O.E. INJECTORS FOR CITY YARD09632 715-1206-5401 170.45 715-1206-5401 15.01 DOCUMENT SCANNERV805828 001-1121-4305 969.99 001-1121-4305 90.25 MAT REQ#638669/PRINTER TONERV808876 001-1121-4305 998.66 Total : 2,244.3609632 99544 4/20/2022 COLLINS, DENNIS L.PO 37471 INSTRUCTOR PAYMENT/CLASSES THRU 4/24/2205970 001-4601-4221 4,620.00 Total : 4,620.0005970 99545 4/20/2022 FEDERAL EXPRESS CORP 7-725-50621 MAT REQ 973987/SHIPPING FEES01962 Attachment 252 04/20/2022 Check Register CITY OF HERMOSA BEACH 2 5:45:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 99545 4/20/2022 (Continued)FEDERAL EXPRESS CORP01962 001-1203-4201 41.30 Total : 41.3001962 99546 4/20/2022 FEDEX OFFICE 1016105532157102 MAT REQ#768502/PRINTING SERVICES06293 001-1101-4305 1.28 MAT REQ#768502/PRINTING SERVICES1016498500323974 001-1101-4305 1.28 MAT REQ#768502/PRINTING SERVICES1016553147155583 001-1101-4305 14.10 MAT REQ#768502/PRINTING SERVICES1016592269316164 001-1101-4305 7.05 Total : 23.7106293 99547 4/20/2022 FEHR & PEERS 154062 TRAFFIC COUNTS/JAN-MAR 202221539 001-3104-4201 1,996.13 Total : 1,996.1321539 99548 4/20/2022 FOREL, DENNIS Voucher#2003203.003 REFUND-THEATRE RENTAL DEPOSIT08599 001-2111 500.00 Total : 500.0008599 99549 4/20/2022 FRONTIER 209-190-0013-1206175 PD COMPUTER CIRCUITS/APR2219884 001-2101-4304 892.81 Total : 892.8119884 99550 4/20/2022 FRONTIER 310-318-9210-0827185 PD JAIL BREATHALYZER/APR2219884 001-2101-4304 79.02 Total : 79.0219884 99551 4/20/2022 GALLATIN INVESTIGATIONS 2022-0002 BACKGROUND CHECK/UNDERWOOD22096 001-2101-4201 315.00 Total : 315.0022096 99552 4/20/2022 HERNANDEZ, ALEXANDRA Citation 31029304 CITATION REFUND - DISMISSED22578 001-3302 53.00 Total : 53.0022578 99553 4/20/2022 IZARRARAS, ALEJANDRO Citation 35024642 CITATION REFUND - DISMISSED22576 001-3302 53.00 53 04/20/2022 Check Register CITY OF HERMOSA BEACH 3 5:45:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 53.00 99553 4/20/2022 IZARRARAS, ALEJANDRO22576 99554 4/20/2022 LA SUPERIOR COURT - TORRANCE PO 37473 CITATION PAYMENT SURCHARGES/MAR2200118 001-3302 45,950.00 Total : 45,950.0000118 99555 4/20/2022 MAGNUM VENTURE PARTNERS PO 37474 INSTRUCTOR PAYMENT CLASSES THRU 3/19/2218274 001-4601-4221 4,522.00 INSTRUCTOR PAYMENT CLASSES THRU 4/21/22PO 37475 001-4601-4221 5,176.50 Total : 9,698.5018274 99556 4/20/2022 MAYNARD, TIMOTHY Citation 31029298 CITATION REFUND - DISMISSED22579 001-3302 53.00 Total : 53.0022579 99557 4/20/2022 MCA DIRECT LLC 2022089 ARCHIVAL PAPER00289 001-1121-4305 628.80 001-1121-4305 118.26 Total : 747.0600289 99558 4/20/2022 MCCORMICK AMBULANCE 266286 AMBULANCE TRANSPORT SVS/MAR2220898 001-1201-4201 29,250.00 Total : 29,250.0020898 99559 4/20/2022 MILLER PLANNING ASSOCIATES LLC 20007-0322-16 ZONING & SUBDIVISION ORDINANCES/MAR2221660 150-4105-4201 11,800.00 Total : 11,800.0021660 99560 4/20/2022 OFFICE DEPOT 236636221001 MAT REQ 583553/OFFICE SUPPLIES13114 001-4202-4305 53.85 MAT REQ 583553/OFFICE SUPPLIES236637482001 001-4202-4305 10.72 MAT REQ 583557/OFFICE SUPPLIES238556140001 001-4202-4305 73.17 Total : 137.7413114 99561 4/20/2022 PARKS COFFEE CALIFORNIA, INC.70087399 PD COFFEE SERVICE/APR2222071 001-2101-4305 72.13 001-2101-4306 72.14 54 04/20/2022 Check Register CITY OF HERMOSA BEACH 4 5:45:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 144.27 99561 4/20/2022 PARKS COFFEE CALIFORNIA, INC.22071 99562 4/20/2022 PORTER, TRAVIS Citation 31029347 CITATION REFUND - DISMISSED22577 001-3302 53.00 Total : 53.0022577 99563 4/20/2022 PROVIDENCE MEDICAL GuarantorID600000285 MAT REQ#973986/PRE-EMPLOYMENT PHYSICALS01911 001-1203-4320 1,381.00 Total : 1,381.0001911 99564 4/20/2022 RACE COMMUNICATIONS RC655849 DEDICATED INTERNET SERVICE/APR2222179 715-1206-4201 1,020.00 Total : 1,020.0022179 99565 4/20/2022 ROSCOE, KIMBERLY ANN PO 37451 INSTRUCTOR PAYMENT CLASS NO. 974520921 001-4601-4221 945.00 Total : 945.0020921 99566 4/20/2022 SOUTH BAY SHELL AND CAR WASH JAN/FEB/MAR 2022 MAT REQ#583923 CAR WASHES/JAN-MAR2218595 715-2101-4311 396.00 715-3302-4311 72.00 Total : 468.0018595 99567 4/20/2022 SPECTRUM BUSINESS 8448 30 030 0352413 1301 HERMOSA/540 PIER CONNECT/APR2220236 001-2101-4304 268.08 Total : 268.0820236 99568 4/20/2022 SPECTRUM BUSINESS 8448 30 030 0049969 PD CABLE/APR2220236 001-2101-4201 77.07 Total : 77.0720236 99569 4/20/2022 SPORTS CAMP MANAGEMENT PO 37480 2022 SPRING BREAK CAMP18036 001-4601-4221 2,370.45 Total : 2,370.4518036 99570 4/20/2022 SPRINT 551834312-244 COMM RES/CELL PHONES/MAR2210098 001-4601-4304 157.10 Total : 157.1010098 99571 4/20/2022 STAFFORD HR CONSULTING, LLC 06-001 HR CONSULTANT SERVICES/MAR2222586 55 04/20/2022 Check Register CITY OF HERMOSA BEACH 5 5:45:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 99571 4/20/2022 (Continued)STAFFORD HR CONSULTING, LLC22586 001-1203-4201 1,275.00 Total : 1,275.0022586 99572 4/20/2022 SUPER SOCCER STARS PO 37454 2022 SPRING BREAK CAMP16921 001-4601-4221 840.00 Total : 840.0016921 99573 4/20/2022 TILLMANN FORENSIC INVESTIGATIO 22-0210HB CASE EVALUATION/FINGERPRINT ANALYSIS22136 001-2101-4201 150.00 Total : 150.0022136 99574 4/20/2022 U-HAUL Citation 40017532 CITATION REFUND - OVERPAYMENT13593 001-3302 83.00 Total : 83.0013593 4192022 4/18/2022 EXXON MOBIL BUSINESS FLEET 80174657 VEHICLE FUEL 3/11/22-4/10/2210668 001-1250 126.13 715-4201-4310 3.13 715-3302-4310 1,282.29 715-2101-4310 7,291.32 715-4204-4310 404.30 715-4206-4310 329.82 715-6101-4310 694.61 715-3104-4310 1,116.17 Total : 11,247.7710668 Bank total : 157,656.17 37 Vouchers for bank code :boa 157,656.17Total vouchers :Vouchers in this report 37 56 04/20/2022 Check Register CITY OF HERMOSA BEACH 6 5:45:03PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount "I hereby certify that the demands or claims covered by the checks listed on pages 1 to 6 inclusive, of the check register for 4/20/2022 are accurate funds are available for payment, and are in conformance to the budget." By Finance Director Date 4/20/22 57 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0280 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 CANCELLATION OF CERTAIN CHECKS (City Treasurer Karen Nowicki) Recommended Action: The City Treasurer recommends City Council ratify cancellation of certain checks. Summary: Please ratify the following request for cancellation of the check listed below: Check #:99593 Date Issued:04/27/2022 Amount:$11,240.00 Payee:GLEOW LLC Payment was made via Electronic Funds Transfer (EFT). Respectfully Submitted by: Karen Nowicki, City Treasurer Noted for Fiscal Impact: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 1 of 1 powered by Legistar™58 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0287 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 ACTION MINUTES OF THE PARKS, RECREATION AND COMMUNITY RESOURCES ADVISORY COMMISSION MEETING OF APRIL 5, 2022 Recommended Action: Staff recommends City Council receive and file the action minutes of the Parks,Recreation and Community Resources Advisory Commission meeting of April 5, 2022. Attachments: 1.Action Minutes of the April 5, 2022 Parks, Recreation and Community Resources Advisory Commission Meeting Respectfully Submitted by: Lisa Nichols, Community Resources Manager Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 1 of 1 powered by Legistar™59 MINUTES REGULAR MEETING of the PARKS, RECREATION AND COMMUNITY RESOURCES ADVISORY COMMISSION April 5, 2022 – Council Chambers, City Hall 1315 Valley Drive – 7:00 P.M. Parks, Recreation and Community Resources Advisory Commission Barbara Ellman, Chairperson Traci Horowitz, Vice Chairperson Jani Lange E. Thomas Moroney Lauren Pizer Mains ************************************************************************************************************************ VIRTUAL MEETINGS ARE HELD PERSUANT TO AB361 BECAUSE STATE AND LOCAL OFFICIALS ARE RECOMMENDING MEASURES TO PROMOTE SOCIAL DISTANCING ************************************************************************************************************************ I. Call to Order II. Pledge of Allegiance III. Roll Call Present: Vice Chairperson Horowitz, Commissioner Lange, Commissioner Moroney, Commissioner Pizer Mains, Recreation Coordinator Nick Shattuck, and Community Resources Manager Lisa Nichols Absent: Chairperson Ellman IV. Announcements – Upcoming City Events V. Presentations a. Hearts of Hermosa Pre-Event Presentation Coming forward to address the Commission at this time: (11:07) Lisa Vargas Gardner, Hermosa Beach Education Foundation Representative VI. Community Resources Manager Report a. Updates Regarding City Council Items Previously on the Parks, Recreation and Community Resources Advisory Commission’s Agenda VII. Public Participation – Oral and Written Communications from the Public: This is the time for members of the public to address the Commission on any items within the Commission's jurisdiction not on this agenda, on items on this agenda as to which public comment will not be taken (Announcements, Community Resources Manager Report, Consent Calendar items that are not pulled for separate consideration and Future Agenda Items), on written communications, and to request the removal of an item from the consent calendar. Public comments on the agenda items called Announcements, Community Resources Manager Report, Consent Calendar items that are not pulled for separate consideration and Future Agenda Items will only be heard at this time. Further, comments on public hearing items are heard only during the public hearing. Members of the audience may also speak during discussion of items removed from the Consent Calendar for separate consideration; during Public Hearings; and, during discussion of items appearing under Matters for Commission Consideration. All comments from the public under this agenda item are limited to three minutes per speaker, but this time allotment may be 60 reduced due to time constraints. The Commission acknowledges receipt of the written communications listed below. No action will be taken on matters raised in oral and written communications, except that the Commission may take action to schedule issues raised in oral and written communications for a future ag enda. Speakers with comments regarding City management or departmental operations are encouraged to submit those comments directly to the City Manager. Coming forward to address the Commission at this time: (18:05) Tony Higgins, Hermosa Beach Resident a. Written Communication from Tony Higgins (Submitted on 4-5-2022 at 10:50am) VIII. Commissioner Comments: Commissioners may briefly respond to public comments, may ask a question for clarification or make a brief announcement or report on his or her own liaison or subcommittee roles, activities or meetings attended. IX. Consent Calendar a. February, 2022 Activity Report b. Action Minutes of the Regular Meeting of March 1, 2022 Motion by Commissioner Moroney to approve items a. February, 2022 Activity Report and b. Action Minutes of the Regular Meeting of March 1, 2022 with correction to the motion for the Consent Calendar from “Motion passed with a 5-1 vote” to “Motion passed with a 4-1 vote.” Commissioner Lange seconded the motion. Motion passed with a 4-0 vote. X. Items Removed from the Consent Calendar for Separate Discussion XI. Public Hearings a. None XII. Matters for Commission Consideration a. Fee Waiver Grant Requests Coming forward to address the Commission at this time: (35:01) Carolina Garbato, USA Volleyball Representative Becky Scholten, Hermosa View Vista Valley Parent Teacher Organization Representative Motion by Commissioner Lange to not approve the 2022 Fee Waiver Grant request from the Alzheimer’s Association for its Walk to End Alzheimer’s in the amount of $2,500. Commissioner Moroney seconded the motion. Motion passed with a 3-1 vote. Motion by Commissioner Pizer Mains to approve the 2022 Fee Waiver Grant request from Claire’s Place Foundation, Inc. for its Glow Ride for Cystic Fibrosis in the amount of $927.50. Commissioner Lange seconded the motion. Motion passed with a 4-0 vote. Motion by Commissioner Lange to approve the 2022 Fee Waiver Grant request from Hermosa View Vista Valley Parent Teacher Organization for its Dolphin Dash in the amount of $1,740 . Commissioner Moroney seconded the motion. Motion passed with a 4-0 vote. Motion by Commissioner Pizer Mains to approve the 2022 Fee Waiver Grant request from Indivisible Arts for its State of the Art in the amount of $300. Commissioner Lange seconded the motion. Motion passed with a 4-0 vote. Motion by Commissioner Lange to approve the 2022 Fee Waiver Grant request from Our Lady of Guadalupe Church for its Easter Sunrise Mass in the amount of $1,740. Commissioner Moroney seconded the motion. Motion passed with a 4-0 vote. Motion by Commissioner Lange to not to approve the 2022 Fee Waiver Grant request from the Skechers Foundation for its Pier to Pier Friendship walk in the amount of $2,500. Commissioner Pizer Mains seconded the motion. Motion failed with a 2-2 vote. 61 Motion by Vice-Chair Horowitz to continue consideration of the 2022 Fee Waiver Grant request from the Skechers Foundation for its Pier to Pier Friendship Walk in the amount of $2,500 to the next scheduled Parks, Recreation and Community Resources Advisory Commission meeting. Commissioner Lange seconded the motion. Motion passed with a 4-0 vote. Motion by Commissioner Lange to approve the 2022 Fee Waiver Grant request from USA Volleyball for its U19 World Championship Trials and World University Championship Trials in the amount of $589 . Vice-Chair Horowitz seconded the motion. Motion failed with a 2-2 vote. Motion by Vice-Chair Horowitz to continue consideration of the 2022 Fee Waiver Grant request from USA Volleyball for its U19 World Championship Trials and World University Championshi p Trials in the amount of $589 to the next scheduled Parks, Recreation and Community Resources Advisory Commission meeting. Commissioner Lange seconded the motion. Motion passed with a 4-0 vote. b. Fiscal Year 2022/2023 Capital Improvement Project (CIP) Review Motion by Vice-Chair Horowitz to provide the Parks, Recreation and Community Resources Advisory Commission ’s input to City Council on Capital Improvement Projects (CIP) related to the purview of the Commission and the Community Resources Department for the City Council’s consideration of the 2022/2023 Fiscal Budget . Commissioner Pizer Mains seconded the motion. Motion passed with a 4-0 vote. XIII. Future Agenda Items - Requests from Commissioners for possible future agenda items. No discussion or debate of these requests shall be undertaken; the sole action is whether to schedule the item for consideration on a future agenda. No public comment will be taken. Commissioners should consider the city's work plan when considering new items. a. None XIV. Adjournment This meeting was adjourned to the regular Tuesday, May 3, 2022, meeting by Vice-Chair Horowitz at 8:26pm. 62 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0222 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 LOS ANGELES COUNTY FIRE AND AMBULANCE MONTHLY REPORT FOR MARCH 2022 (Emergency Management Coordinator Brandy Villanueva) Recommended Action: Staff recommends City Council receive and file the March 2022 Fire and Ambulance monthly report. Executive Summary: City departments generate monthly reports to provide a snapshot of activities performed each month. Prior to the transition of fire and ambulance transport services to the County of Los Angeles,the Hermosa Beach Fire Department developed monthly response reports.After the transition,the monthly report was updated to include Los Angeles County Fire Department (LACoFD)and McCormick Ambulance information and continues to be uploaded to the website.The following report provides details regarding services provided for the month of March 2022. Background: At the February 11,2020 Council meeting,City Council requested monthly reports be placed onto the City Council agenda under consent calendar.On the July 14,2020 City Council agenda,the monthly reports began to appear. The enclosed report reflects the services for March 2022. Past Board, Commission and Council Actions Meeting Date Description February 11, 2020 (Regular Meeting) City Council requested monthly reports be placed onto the City Council agenda under consent calendar. July 14, 2020 (Regular Meeting) Monthly reports began on City Council consent agenda. Discussion: The March 2022 monthly report provides an overview of services provided by LACoFD and McCormick Ambulance (Attachment 1:March 2022 LACoFD and McCormick Ambulance Monthly City of Hermosa Beach Printed on 5/6/2022Page 1 of 4 powered by Legistar™63 Staff Report REPORT 22-0222 Report). Los Angeles County Fire Department (LACoFD) LACoFD and McCormick Ambulance work together to provide emergency medical services (EMS)to the Hermosa Beach community.LACoFD has two apparatus stationed at Station 100 including:one assessment engine (Engine 100)staffed with a Fire Captain,a Fire Engineer and a Firefighter Paramedic;and a paramedic squad (Squad 100)staffed with two Firefighter Paramedics.The paramedic squad (Squad 100)only responds to calls for service exclusively within the City of Hermosa Beach.It does not provide mutual aid,thereby remaining available for calls within Hermosa Beach. Each of the LACoFD apparatus has the capability of providing basic emergency medical care known as Basic Life Support (BLS)to medical patients.In addition,the paramedic squad has advanced equipment including medications and responds from within the City to address Advanced Life Support (ALS) calls, such as a stroke or heart attack. McCormick Ambulance is one of the emergency medical transport companies within Los Angeles County.LACoFD does not conduct patient transport;therefore,unincorporated areas are included in the fire department transport contracts with various providers.Contract cities are responsible for negotiating and contracting with a medical transport provider for their community.Within the South Bay,many of the cities have contracted with McCormick Ambulance to conduct emergency medical transportation including the City of Hermosa Beach. When LACoFD is dispatched,McCormick Ambulance may also be dispatched as the City’s emergency medical transportation provider.LACoFD provides life-saving medical care on scene and continues ALS level care as the patient is transported to a local hospital.In the case of a BLS level call,monitoring and care are safely provided by one of the two Emergency Medical Technicians (EMTs) assigned to the responding ambulance. LACoFD follows industry standards developed by the National Fire Protection Association (NFPA), which outlines call transfer times and total response times.The NFPA standard for call transfer time is that each call will be answered within 60 seconds 90 percent of the time.Additionally,responding units are to be enroute within 60 seconds to EMS related calls and 80 seconds for structure fire calls. NFPA further stipulates that for EMS calls,responding units must arrive on scene within 8 minutes and 59 seconds 90 percent of the time. The March 2022 call transfer report provided by LACoFD indicates that two calls had a transfer time longer than the NFPA standard.The calls were received during a period of increased call volume in the dispatch center. Table 1 below provides the response details for the two incidents. . Table 1: Date Call Type Call Transfer Time Length of Transfer LACoFD Dispatch Time On Scene Time Length of Arrival Total Response Time March 19 ALS 22:14 65 seconds 22:16 22:20 4 minutes 5 minutes 5 seconds March 27 Vehicle Fire 22:53 96 seconds 22:55 23:05 10 minutes 11 minutes 36 seconds City of Hermosa Beach Printed on 5/6/2022Page 2 of 4 powered by Legistar™64 Staff Report REPORT 22-0222 Date Call Type Call Transfer Time Length of Transfer LACoFD Dispatch Time On Scene Time Length of Arrival Total Response Time March 19 ALS 22:14 65 seconds 22:16 22:20 4 minutes 5 minutes 5 seconds March 27 Vehicle Fire 22:53 96 seconds 22:55 23:05 10 minutes 11 minutes 36 seconds Table definitions ·Call Transfer Time:The time when the call was actually transferred from South Bay Regional Public Communications Authority also known as Regional Communications Center (RCC). ·Length of Transfer:The length of time that it took from LACoFD dispatch center to answer the call from RCC. ·LACoFD Dispatch Time:The time in which appropriate fire apparatus were dispatched to the incident. ·On Scene Time: The time in which the dispatched units arrived at the incident location. ·Length of Arrival: The time between when the unit was dispatched and arrived on scene. ·Total Response Time:The total combined time between the call transfer time and the length of time arriving units on scene. McCormick Ambulance McCormick Ambulances are staffed by two EMT’s who can provide and transport BLS patients independently and,with the support of LACoFD paramedics riding in the ambulance,can also transport ALS patients. In March 2022,McCormick Ambulance responded to 65 calls for services within the City of Hermosa Beach.The March 2022 report indicated that 12 calls resulted in delayed Code 3 responses,which is a slight increase in delayed calls from the February 2022 transport report.There were 5 delayed Code 2 responses in March 2022.A Code 3 response is one where the responding emergency units are driving with lights and sirens to a presumed life-threatening emergency,which is typically classified as an ALS call.According to the McCormick Ambulance contract,“response time must not exceed eight (8)minutes,fifty-nine (59)seconds”for a Code 3 incident.A Code 2 response is one where the responding emergency units are driving with lights and sirens to an emergency situation classified as a basic life support or BLS call. Staff reviewed the March 2022 McCormick Ambulance monthly report.The following outlines the reasons for the delayed responses: ·Multiple Calls: (13) The dispatch center received multiple calls at the same time; ·Distance:(3)Based on the location the ambulance begins the response to the City,it could impact the response time.The City contract does not have a unit permanently stationed within Hermosa Beach,therefore,the responding ambulance often begins the response outside of City of Hermosa Beach Printed on 5/6/2022Page 3 of 4 powered by Legistar™65 Staff Report REPORT 22-0222 Hermosa Beach,therefore,the responding ambulance often begins the response outside of the City; and ·Crew Error: (1) The crew responded to the wrong address. McCormick Ambulance demonstrates a continuous effort to detect and correct service level performance deficiencies by identifying the reason for delayed response times,issuance of personnel performance notices when mandatory response requirements are not met,and the release of personnel upon continued performance issues.McCormick Ambulance also provides training and continuing education to staff to improve skills and service delivery. Although the emergency medical transport units were delayed in arriving on scene within the allowable timeframe for 17 calls in March 2022,patients were provided timely life-saving emergency medical care on scene by Los Angeles County Fire Department paramedics.When LACoFD arrives on scene,it takes paramedics 5 to 10 minutes to conduct the required treatment protocols prior to commencing transport with McCormick Ambulance.During the patient treatment phase,the requested ambulance is typically on scene waiting for the paramedics to complete their treatment protocols even if the ambulance response is delayed.Los Angeles County Fire Department and McCormick Ambulance are committed to providing excellent emergency medical care,customer service, and response to the residents and visitors of Hermosa Beach. General Plan Consistency: This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Safety Element Goal 5. High quality police and fire protection services provided to residents and visitors. Policy: ·5.2 High level of response.Achieve optimal utilization of allocated public safety resources and provide desired levels of response, staffing, and protection within the community. Fiscal Impact: Fire and ambulance services are contracted and accounted for during the annual budget process. Attachments: 1.Fire and Ambulance Monthly Report-March 2022 Respectfully Submitted by: Brandy Villanueva, Emergency Management Coordinator Noted for Fiscal Impact: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 4 of 4 powered by Legistar™66 E100 S100 Total FIRE, EXPLOSION 130 ‐ Mobile property (vehicle) fire, other 1 1 2 0.82% FIRE, EXPLOSION Total 1 1 2 0.82% RESCUE, EMS 300 ‐ Rescue, emergency medical call (EMS) call, other 7 6 13 5.35% 311 ‐ Medical assist, assist EMS crew 3 2 5 2.06% 320 ‐ Emergency medical service, other 1 1 2 0.82% 321 ‐ EMS call, excluding vehicle accident with injury 74 65 139 57.20% 322 ‐ Vehicle accident with injuries 1 1 2 0.82% RESCUE, EMS Total 86 75 161 66.26% HAZARDOUS CONDITION 413 ‐ Oil or other combustible liquid spill 1 1 0.41% 440 ‐ Electrical wiring/equipment problem, other 3 3 1.23% 444 ‐ Power line down 1 1 0.41% 445 ‐ Arcing, shorted electrical equipment 1 1 0.41% HAZARDOUS CONDITION Total 6 6 2.47% SERVICE CALL 522 ‐ Water or steam leak 1 1 0.41% 550 ‐ Public service assistance, other 1 1 0.41% 555 ‐ Defective elevator, no occupants 1 1 0.41% SERVICE CALL Total 3 3 1.23% GOOD INTENT CALL 600 ‐ Good intent call, other 8 4 12 4.94% 611 ‐ Dispatched & cancelled enroute 21 5 26 10.70% GOOD INTENT CALL Total 29 9 38 15.64% FALSE ALARM, FALSE CALL 710 ‐ Malicious, mischievous false call, other 1 1 0.41% 730 ‐ System malfunction, other 1 1 0.41% 733 ‐ Smoke detector activation due to malfunction 1 1 0.41% 735 ‐ Alarm system sounded due to malfunction 2 2 0.82% 744 ‐ Detector activation, no fire ‐ unintentional 1 1 0.41% 745 ‐ Alarm system sounded, no fire ‐ unintentional 1 1 0.41% FALSE ALARM, FALSE CALL Total 7 7 2.88% SPECIAL OR OTHER INCIDENT TYPE 900 ‐ Special type of incident, other 18 4 22 9.05% 911 ‐ Citizen complaint 3 1 4 1.65% SPECIAL OR OTHER INCIDENT TYPE Total 21 5 26 10.70% Grand Total 153 90 243 100.00% Note: Data based on updated fireview ‐ apparatus 2022 data. Hermosa Beach units responses. LOS ANGELES COUNTY FIRE DEPARTMENT HERMOSA BEACH FOR THE MONTH OF MARCH 2022 Incident Type UNIT RESPONSES Percentage Submitted by Brandy Villanueva, Emergency Management Coordinator 1 67 DAY OF THE WEEK E100 S100 Total Sunday 18 16 34 Monday 21 12 33 Tuesday 25 13 38 Wednesday 21 6 27 Thursday 25 15 40 Friday 20 12 32 Saturday 23 16 39 Grand Total 153 90 243 Note: Data based on updated fireview ‐ apparatus 2022 data. Hermosa Beach units responses. LOS ANGELES COUNTY FIRE DEPARTMENT HERMOSA BEACH FOR THE MONTH OF MARCH 2022 UNIT RESPONSES 0 5 10 15 20 25 30 E100 S100 Submitted by Brandy Villanueva, Emergency Management Coordinator 2 68 TIME OF THE DAY E100 S100 Total 00:00:00 TO 00:59:59 9 7 16 01:00:00 TO 01:59:59 2 2 4 02:00:00 TO 02:59:59 3 1 4 03:00:00 TO 03:59:59 2 1 3 04:00:00 TO 04:59:59 2 2 05:00:00 TO 05:59:59 3 2 5 06:00:00 TO 06:59:59 1 1 2 07:00:00 TO 07:59:59 6 2 8 08:00:00 TO 08:59:59 4 4 8 09:00:00 TO 09:59:59 5 1 6 10:00:00 TO 10:59:59 7 5 12 11:00:00 TO 11:59:59 13 6 19 12:00:00 TO 12:59:59 7 5 12 13:00:00 TO 13:59:59 8 4 12 14:00:00 TO 14:59:59 8 4 12 15:00:00 TO 15:59:59 12 8 20 16:00:00 TO 16:59:59 6 6 12 17:00:00 TO 17:59:59 7 5 12 18:00:00 TO 18:59:59 5 1 6 19:00:00 TO 19:59:59 12 6 18 20:00:00 TO 20:59:59 6 4 10 21:00:00 TO 21:59:59 9 6 15 22:00:00 TO 22:59:59 10 6 16 23:00:00 TO 23:59:59 6 3 9 Grand Total 153 90 243 Note: Data based on updated fireview ‐ apparatus 2022 data. Hermosa Beach units responses. LOS ANGELES COUNTY FIRE DEPARTMENT HERMOSA BEACH FOR THE MONTH OF MARCH 2022 UNIT RESPONSES ‐ 2 4 6 8 10 12 14 00:00:00 TO 00:59:5901:00:00 TO 01:59:5902:00:00 TO 02:59:5903:00:00 TO 03:59:5904:00:00 TO 04:59:5905:00:00 TO 05:59:5906:00:00 TO 06:59:5907:00:00 TO 07:59:5908:00:00 TO 08:59:5909:00:00 TO 09:59:5910:00:00 TO 10:59:5911:00:00 TO 11:59:5912:00:00 TO 12:59:5913:00:00 TO 13:59:5914:00:00 TO 14:59:5915:00:00 TO 15:59:5916:00:00 TO 16:59:5917:00:00 TO 17:59:5918:00:00 TO 18:59:5919:00:00 TO 19:59:5920:00:00 TO 20:59:5921:00:00 TO 21:59:5922:00:00 TO 22:59:5923:00:00 TO 23:59:59E100 S100 Submitted by Brandy Villanueva, Emergency Management Coordinator 3 69 Ad Hoc Report: Name: Date: Description: Seizure Date Seizure Time ALI City Answer Secs Call Type ID ALI Class 3/2/2022 17:09:44 HERMOSA BEACH 8 911 Calls VOIP 3/3/2022 19:23:45 HMB 2 911 Calls WPH2 3/4/2022 15:37:39 HERMOSA BEACH 2 911 Calls VOIP 3/5/2022 14:53:23 HERMOSA BEACH 23 911 Calls WPH2 3/5/2022 14:57:07 HMB 3 911 Calls WPH2 3/6/2022 04:12:56 HMB 2 911 Calls WPH2 3/6/2022 12:19:44 HERM BCH 2 911 Calls WPH2 3/6/2022 16:23:46 HMB 2 911 Calls WPH2 3/6/2022 19:27:55 HERM BCH 2 911 Calls WPH2 3/7/2022 09:13:35 HERM BCH 2 911 Calls WPH2 3/7/2022 13:52:11 HERMOSA BEACH 2 911 Calls RESD 3/8/2022 08:42:27 HERMOSA BEACH 2 911 Calls RESD 3/8/2022 14:09:26 HMB 2 911 Calls WPH2 3/8/2022 19:42:23 HERMOSA BEACH 2 911 Calls WPH2 3/9/2022 10:38:53 HERMOSA BEACH 2 911 Calls WPH2 3/9/2022 15:46:39 HERM BCH 2 911 Calls WPH2 3/10/2022 12:53:07 HERM BCH 25 911 Calls WPH2 3/11/2022 00:18:34 HERM BCH 2 911 Calls WPH2 3/11/2022 12:18:07 HERM BCH 2 911 Calls W911 3/12/2022 00:33:56 HERM BCH 2 911 Calls WPH2 3/12/2022 07:12:35 HERMOSA BEACH 2 911 Calls VOIP 3/12/2022 10:36:39 HMB 21 911 Calls WPH2 3/13/2022 20:44:08 HERMOSA BEACH 2 911 Calls RESD 3/14/2022 12:05:45 HERMOSA BEACH 2 911 Calls RESD 3/14/2022 14:59:18 HERMOSA BEACH 2 911 Calls WPH2 3/14/2022 15:38:15 HERMOSA BEACH 2 911 Calls RESD 3/14/2022 21:26:38 HERM BCH 18 911 Calls WPH2 3/15/2022 10:04:19 HERMOSA BEACH 2 911 Calls VOIP 3/15/2022 10:44:11 HERM BCH 2 911 Calls WPH2 3/15/2022 11:43:03 HERMOSA BEACH 24 911 Calls VOIP 3/15/2022 15:16:33 HERMOSA BEACH 2 911 Calls VOIP 3/15/2022 19:04:51 HERMOSA BEACH 2 911 Calls RESD 3/16/2022 07:22:17 HERM BCH 2 911 Calls WPH2 3/16/2022 11:42:47 HERMOSA BEACH 2 911 Calls RESD 3/17/2022 15:22:40 HERM BCH 2 911 Calls WPH2 3/17/2022 19:19:21 HERMOSA BEACH 2 911 Calls VOIP 3/17/2022 21:07:31 HB 2 911 Calls WPH2 3/19/2022 00:52:05 HERM BCH 2 911 Calls WPH2 3/19/2022 11:48:35 HERMOSA BEACH 2 911 Calls RESD Hermosa Call Answer Time 4/1/2022 Los Angeles County Fire March 2022 Submitted by Brandy Villanueva, Emergency Management Coordinator 4 70 3/19/2022 22:14:25 HERM BCH 65 911 Calls WPH2 3/20/2022 11:37:55 HERMOSA BEACH 2 911 Calls VOIP 3/20/2022 19:59:34 HERMOSA BEACH 17 911 Calls VOIP 3/21/2022 05:09:03 HERMOSA BEACH 2 911 Calls VOIP 3/22/2022 06:56:55 HERMOSA BEACH 2 911 Calls RESD 3/23/2022 16:19:18 HERM BCH 2 911 Calls WPH2 3/23/2022 21:54:36 HERMOSA BEACH 2 911 Calls RESD 3/24/2022 11:02:05 HERMOSA BEACH 2 911 Calls WPH2 3/24/2022 22:21:26 HERM BCH 2 911 Calls WPH2 3/25/2022 12:26:41 HERMOSA BEACH 2 911 Calls WPH2 3/25/2022 14:09:30 HERMOSA BEACH 2 911 Calls WPH2 3/26/2022 01:03:03 HERM BCH 2 911 Calls WPH2 3/26/2022 01:03:25 HERM BCH 37 911 Calls WPH2 3/26/2022 01:03:38 HERM BCH 2 911 Calls WPH2 3/26/2022 08:15:35 HERM BCH 2 911 Calls WPH2 3/26/2022 19:42:55 HERM BCH 39 911 Calls WPH2 3/27/2022 10:21:19 HERMOSA BEACH 2 911 Calls VOIP 3/27/2022 13:05:25 HERMOSA BEACH 2 911 Calls VOIP 3/27/2022 20:07:20 HERMOSA BEACH 2 911 Calls WPH2 3/27/2022 22:53:51 HERM BCH 20 911 Calls WPH2 3/27/2022 22:53:53 HERM BCH 96 911 Calls WPH2 3/27/2022 22:54:21 HERM BCH 32 911 Calls WPH2 3/28/2022 13:37:29 HERMOSA BEACH 36 911 Calls WPH2 3/28/2022 16:03:03 HERM BCH 2 911 Calls WPH2 3/28/2022 18:23:52 HMB 1 911 Calls WPH2 3/29/2022 13:34:36 HERMOSA BEACH 2 911 Calls WPH2 3/29/2022 20:15:27 HMB 47 911 Calls WPH2 3/30/2022 17:27:34 HERMOSA BEACH 2 911 Calls CNTX 3/30/2022 22:07:18 HERM BCH 2 911 Calls WPH2 3/30/2022 23:35:41 HERMOSA BEACH 2 911 Calls RESD 3/31/2022 00:48:40 HERMOSA BEACH 3 911 Calls RESD 3/31/2022 07:23:44 HMB 2 911 Calls WPH2 Average Call Answer Time (seconds)9 Submitted by Brandy Villanueva, Emergency Management Coordinator 5 71 McCormick Ambulance March 2022 Total Number of Dispatched Calls Dispatched Calls Totals Transported 65 Cancelled 39 Grand Total 104 NOTE: None 65, 62% 39, 38% Total Dispatched Calls Transported Cancelled Submitted by Brandy Villanueva, Emergency Management Coordinator 6 72 Calls per the day of the week Day of the Week Completed Cancelled Total Sunday 9 8 17 Monday 11 3 14 Tuesday 8 8 16 Wednesday 7 3 10 Thursday 13 4 17 Friday 5 7 12 Saturday 12 6 18 Grand Total 65 39 104 0 2 4 6 8 10 12 14 Completed Canceled Submitted by Brandy Villanueva, Emergency Management Coordinator 7 73 Response by the Time of Day Time of Day Total Response 00:00:00 TO 00:59:59 8 01:00:00 TO 01:59:59 2 02:00:00 TO 02:59:59 1 03:00:00 TO 03:59:59 1 04:00:00 TO 04:59:59 1 05:00:00 TO 05:59:59 2 06:00:00 TO 06:59:59 1 07:00:00 TO 07:59:59 2 08:00:00 TO 08:59:59 4 09:00:00 TO 09:59:59 2 10:00:00 TO 10:59:59 6 11:00:00 TO 11:59:59 7 12:00:00 TO 12:59:59 7 13:00:00 TO 13:59:59 4 14:00:00 TO 14:59:59 4 15:00:00 TO 15:59:59 11 16:00:00 TO 16:59:59 6 17:00:00 TO 17:59:59 5 18:00:00 TO 18:59:59 4 19:00:00 TO 19:59:59 7 20:00:00 TO 20:59:59 5 21:00:00 TO 21:59:59 6 22:00:00 TO 22:59:59 5 23:00:00 TO 23:59:59 3 Grand Total 104 0 2 4 6 8 10 12 00:00:00 TO 00:59:5901:00:00 TO 01:59:5902:00:00 TO 02:59:5903:00:00 TO 03:59:5904:00:00 TO 04:59:5905:00:00 TO 05:59:5906:00:00 TO 06:59:5907:00:00 TO 07:59:5908:00:00 TO 08:59:5909:00:00 TO 09:59:5910:00:00 TO 10:59:5911:00:00 TO 11:59:5912:00:00 TO 12:59:5913:00:00 TO 13:59:5914:00:00 TO 14:59:5915:00:00 TO 15:59:5916:00:00 TO 16:59:5917:00:00 TO 17:59:5918:00:00 TO 18:59:5919:00:00 TO 19:59:5920:00:00 TO 20:59:5921:00:00 TO 21:59:5922:00:00 TO 22:59:5923:00:00 TO 23:59:59Time of Day Responses Submitted by Brandy Villanueva, Emergency Management Coordinator 8 74 Response Times Within Allowable Time Delayed Response Cancelled Total Code 3: Response Time of 8:59 or less 10 12 0 22 Code 2: Response Time of 15:00 or less 43 0 0 43 Cancelled Responses 0 0 39 39 Grand Total 53 12 39 104 Submitted by Brandy Villanueva, Emergency Management Coordinator 9 75 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0292 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 FINDINGS TO HOLD REMOTE TELECONFERENCE/MEETINGS, PURSUANT TO ASSEMBLY BILL 361 (City Clerk Myra Maravilla) Recommended Action: Staff recommends City Council authorize remote teleconference/virtual meetings of all City of Hermosa Beach legislative bodies in accordance with Assembly Bill 361 (“AB 361”),by finding that: (1)a statewide state of emergency is currently in place;(2)state and local officials have imposed or recommended measures to promote social distancing in connection with COVID-19;and meeting in person would present imminent risks to the health or safety of attendees. Background: All meetings of the City’s legislative bodies are subject to the Ralph M.Brown Act (Gov.Code §§ 54950 et seq.)and must be open and public so that any member of the public may attend and participate in the meetings.Commencing in March of 2020,Governor Newsom issued a series of executive orders aimed at preventing the spread of a respiratory disease that came to be known as the novel coronavirus,“COVID-19.”Among these were Executive Orders (“EO”)N-25-20,N-29-20, and N-35-20 (collectively,the “Brown Act Orders”)that waived the teleconferencing requirements of the Brown Act to allow legislative bodies to meet virtually. On June 11,2021,the Governor issued EO N-08-21 to begin winding down some of the prior measures that were adopted to respond to COVID-19.Notably,EO N-08-21 rescinded the Brown Act Orders,effective September 30,2021.On September 16,2021,Governor Newsom signed AB 361,which became effective October 1,2021,and amended the Brown Act to allow legislative bodies to meet virtually,without following the Brown Act’s standard teleconferencing rules,provided that the legislative body makes specific findings, which include the following: 1.A statewide state of emergency is currently in place; 2.State or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19; and/or 3.Meeting in person would present imminent risks to the health or safety of attendees. Continued compliance with AB 361 would require City Council to approve the action making theCity of Hermosa Beach Printed on 5/6/2022Page 1 of 2 powered by Legistar™76 Staff Report REPORT 22-0292 Continued compliance with AB 361 would require City Council to approve the action making the required findings at least every 30 days. Discussion: All three findings under AB 361 can be made given the current circumstances.The Governor has proclaimed a state of emergency in response to the ongoing COVID-19 pandemic.The state of emergency currently remains in effect. Further,State officials,including the California Department of Public Health,have recommended measures to promote social distancing in connection with COVID-19,which are currently in place.Similarly,local officials,including the County Public Health Officer,have also recommended measures to promote social distancing in connection with COVID -19.In a recommendation dated September 28,2021,the County Public Health Officer stated that “utilizing teleconferencing options for public meetings is an effective and recommended social distancing measure to facilitate participation in public affairs and encourage participants to protect themselves and others from the COVID-19 disease.” Finally,the City has determined that meeting in person would present imminent risks to the health or safety of attendees. Accordingly, all of the above-referenced AB 361 findings currently exist. If City Council thus desires to allow virtual meetings in order to both ensure the health and safety of the public,the legislative bodies of the City,and City staff,as well as continuity of government in allowing regularly-scheduled meetings to continue to occur without interruption,staff recommends City Council authorize virtual/teleconference meetings by making the findings set forth above. Alternative: If City Council does not make the findings pursuant to AB 361,the City would have to conduct its public meetings for City Council and other public boards and commissions in person and not have the option of conducting its meetings via teleconferencing. Fiscal Impact: There is no fiscal impact associated with the recommended action. Attachments: Link to Assembly Bill 361 Respectfully Submitted by: Myra Maravilla, City Clerk Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 2 of 2 powered by Legistar™77 City Council Hybrid Meeting (Closed Session - 5:00 PM and Open Session - 6:00 PM) 05-10-22 17:00 Agenda Name Comments Support Oppose Neutral f. REPORT 22-0292 FINDINGS TO HOLD REMOTE TELECONFERENCE/MEETINGS, PURSUANT TO ASSEMBLY BILL 361 (City Clerk Myra Maravilla) 1 0 0 1 Sentiments for All Agenda Items The following graphs display sentiments for comments that have location data. Only locations of users who have commented will be shown. Overall Sentiment Agenda Item: eComments for f. REPORT 22-0292 FINDINGS TO HOLD REMOTE TELECONFERENCE/MEETINGS, PURSUANT TO ASSEMBLY BILL 361 (City Clerk Myra Maravilla) Overall Sentiment Dean francois Location: Submitted At: 11:32pm 05-09-22 I suggest the council come up with a plan to return to open public meetings. Many elected bodies have already done this. While continuation of zoom commission meetings could be considered beneficial to those volunteers, it is quite another having elected officials continuing to deliberate from the luxury of their homes when they were elected to attend open meetings and ace the public directly. 78 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0282 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT 2022-2023 ADOPTION OF RESOLUTIONS REGARDING THE ENGINEER’S REPORT AND SETTING JUNE 14, 2022 FOR A PUBLIC HEARING (Public Works Director Joe SanClemente) Recommended Action: Staff recommends City Council: 1.Adopt a resolution (Attachment 3)approving the Engineer's Report in connection with Hermosa Beach Landscaping and Street Lighting District 2022-2023 (District)made pursuant to the requirements of Resolution No. 22-7310; and 2.Adopt a resolution (Attachment 4)declaring the City’s intention to order certain improvements and to levy and collect assessments within the Hermosa Beach Landscaping and Street Lighting District 2022-2023 for the Fiscal Year beginning July 1,2022,through June 30,2023, and appointing June 14,2022,at the hour of 6:30 p.m.in the Civic Center Council Chambers as the time and place for a public hearing in relation thereto. Executive Summary: The Hermosa Beach Landscaping and Street Lighting District (District)collects funds for the maintenance and operation of the citywide street lighting program and landscaping within street medians and parkways.The District must be renewed annually by following a three-step process. Staff recommends continuation of the process for Fiscal Year 2022-2023. Background: The District was created in Fiscal Year 1989-1990,pursuant to the Landscaping and Lighting Act of 1972 (Street and Highway Code Sections 22500-22679).The District assessment provides funding to maintain and operate streetlights,traffic signals,and landscaping located within parkways and medians citywide.The assessment rate has not increased since the passage of Proposition 218 in 1996 and is set at $41.45 per dwelling unit. The anticipated assessment to be collected for Fiscal Year 2021-2022 is $456,346;a subsidy of City of Hermosa Beach Printed on 5/6/2022Page 1 of 4 powered by Legistar™79 Staff Report REPORT 22-0282 The anticipated assessment to be collected for Fiscal Year 2021-2022 is $456,346;a subsidy of $229,790 was approved for transfer from the RTI Undersea Cable Fund to the Landscaping and Street Lighting District Fund to cover the shortfall for maintaining the citywide Landscaping and Street Lighting District for Fiscal Year 2021-2022. The District must be renewed annually by following a three-step process.First,Council authorizes the Director of Public Works to prepare an Engineer’s Report containing the estimated cost of maintaining the District,the list of parcels within the District,and the method of apportionment of the assessment.At its April 12,2022 meeting,City Council adopted Resolution 22-7310 (Attachment 1) authorizing preparation of a report. Second,the Engineer’s Report (Attachment 2)is presented to Council for approval and the Council sets a date for a Public Hearing declaring the City Council’s intention to order certain improvements and to levy and collect assessments within the District for the new fiscal year.The third and final step is to hold a Public Hearing to accept public input on the matter of the proposed assessment and,if approved, to levy the assessment for the new fiscal year. Past Council Actions Meeting Date Description April 12, 2022 City Council adopted Resolution 22-7310 authorizing the preparation of a report for the annual levy of assessments within the Hermosa Beach Landscaping and Street Lighting District during Fiscal Year 2022-2023 Analysis: Based on the advice of the City Attorney,the City is in compliance with Proposition 218 and can continue to levy assessments to pay for the maintenance and operation of streetlights,street medians,and parkway landscaping without balloting requirements so long as the assessments are not increased.The assessment rate per dwelling unit has not increased since the passage of Proposition 218 in 1996. The Council is now considering the second step in the process.By approving the first resolution (Attachment 3),City Council approves the Engineer’s Report,prepared by the Deputy City Engineer acting as the Assessment Engineer.This report contains maps,methodology,costs,and estimated assessments for the District and is on file in the office of the City Clerk.Adoption of the proposed resolution confirms that the report was prepared prior to the public hearing. By approving the second resolution (Attachment 4),City Council sets June 14,2022,at 6:30 p.m.in the City Hall Council Chambers as the time and place for a Public Hearing in order to accept input on the report.The City Clerk would publish a Notice of Public Hearing in the Easy Reader a minimum of City of Hermosa Beach Printed on 5/6/2022Page 2 of 4 powered by Legistar™80 Staff Report REPORT 22-0282 10 days in advance of the hearing. The draft public notice is included as Attachment 5. In order to levy and collect assessments within the Hermosa Beach Landscaping and Street Lighting District 2022-2023, the City Council must also: 1.Hold a Public Hearing and adopt a Resolution confirming the map and assessment for the District for Fiscal Year 2022-2023 and levy the set assessment per-unit rate for the fiscal year commencing July 1, 2022 and ending June 30, 2023; and 2.Adopt the Fiscal Year 2022-2023 estimated revenue for secured collections for the District. General Plan Consistency: This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Mobility Element Goal 2.A public realm that is safe,comfortable,and convenient for travel via foot,bicycle,public transit,and automobile and creates vibrant,people oriented public spaces that encourage active living. Policies: ·2.1 Prioritize public right-of-ways.Prioritize improvements of public right-of-ways that provide heightened levels of safe,comfortable and attractive public spaces for all non-motorized travelers while balancing the needs of efficient vehicular circulation. ·2.4 Sustainable landscape.Use consistent and sustainable landscape and streetscape designs that reflect the city’s community identity;showcase local assets and the community’s unique and vibrant culture. Parks + Open Space Element Goal 10. Abundant landscaping, trees, and green space provided throughout the community. Policy: ·10.3 Green space co-benefits.Recognize the many positive qualities provided by landscaping,trees,and green space including reduced heat gain,controlled stormwater runoff,absorbed noise,reduced soil erosion,improved aesthetic character,and absorption of air pollution. Infrastructure Element Goal 1. Infrastructure systems are functional, safe, and well maintained. Policies: ·1.1 Infrastructure systems plan.Establish and adopt an integrated,holistic systems approach City of Hermosa Beach Printed on 5/6/2022Page 3 of 4 powered by Legistar™81 Staff Report REPORT 22-0282 ·1.1 Infrastructure systems plan.Establish and adopt an integrated,holistic systems approach to guide infrastructure development, improvement, maintenance, and resilience. ·1.4 Fair share assessments.Require new development and redevelopment projects to pay their fair share of the cost of infrastructure improvements needed to serve the project and ensure that needed infrastructure is available prior to or at the time of project completion. Fiscal Impact: The anticipated assessment to be collected for Fiscal Year 2022-2023 is $461,300.Staff recommends in the FY2022-2023 Preliminary Budget that an additional $239,245 be transferred from the RTI Undersea Cable Fund,and $1,590 be transferred from the Tyco Fund (rather than the General Fund)to cover the shortfall in the Landscaping and Street Lighting District Fund and maintain the citywide Landscaping and Street Lighting District for Fiscal Year 2022-2023. Attachments: 1.Resolution 22-7310 approving the preparation of the Engineer’s Report 2.Engineers Report, City of Hermosa Beach Landscaping and Lighting District 2022-2023 3.Draft Resolution 22-xxxx approving the Engineer's Report in connection with Hermosa Beach Landscaping and Street Lighting District 2022-2023 4.Draft Resolution 22-xxxx declaring the City’s intention to order certain improvements and to levy and collect assessments within the Hermosa Beach Landscaping and Street Lighting District 2022-2023 for the Fiscal Year beginning July 1, 2022 through June 30, 2023, and appointing a time and place for a Public Hearing in relation thereto 5.Draft Notice of Public Hearing 6.Link to April 12, 2022 Staff Report Respectfully Submitted by: Romany Basilyous, Associate Engineer Concur:Lucho Rodriguez, Deputy City Engineer Concur:Joseph SanClemente, Public Works Director Noted for Fiscal Impact:Viki Copeland, Finance Director Legal Review:Mike Jenkins, City Attorney Approved:Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 4 of 4 powered by Legistar™82 ATTACHMENT 2 ENGINEER’S REPORT CITY OF HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT 2022-2023 83 ENGINEER'S REPORT CITY OF HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT 2022-2023 Prepared By: Romany Basilyous Associate Engineer Lucho Rodriguez, P.E. Deputy City Engineer May 10, 2022 84 ENGINEER'S REPORT CITY OF HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT 2022-2023 TABLE OF CONTENTS Certificate .................................................................................................. 1 Report ........................................................................................................ 2 Part A - Plans and Specifications ................................................... 4 Part B - Estimate of Cost ................................................................ 5 Part C - Assessment Roll ............................................................... 6 Part D - Method of Apportionment of Assessment .......................... 7 Part E - Property Owner List ........................................................... 9 Part F - Assessment District Boundary ........................................... 10 85 1 ENGINEER’S REPORT CITY OF HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT 2022-2023 The undersigned respectfully submits the enclosed report as directed by the City Council. DATED: May 10, 2022 BY: Joseph SanClemente Director of Public Works ______________________________________ BY: Lucho Rodriguez, P.E. Deputy City Engineer ______________________________________ BY: Romany Basilyous Associate Engineer I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Diagram thereto attached was filed with me on the _________ day of __________, 2022. City Clerk, City of Hermosa Beach Los Angeles County, California By I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Diagram thereto attached, was approved and confirmed by the City Council of the City of Hermosa Beach, California, on the _________ day of __________, 2022. City Clerk, City of Hermosa Beach Los Angeles County, California By I HEREBY CERTIFY that the enclosed Assessment Roll and Diagram were filed with the County Auditor of the County of Los Angeles, on the _________ day of __________, 2022. City Clerk, City of Hermosa Beach Los Angeles County, California By 86 2 FISCAL YEAR 2022-2023 CITY OF HERMOSA BEACH ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972, SECTION 22500 THROUGH 22679, OF THE CALIFORNIA STREETS AND HIGHWAYS CODE Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, and in accordance with the Resolution of Initiation adopted by the Council of the City of Hermosa Beach, State of California, in connection with the proceedings for: HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT 2022-2023 Hereinafter referred to as the "Assessment District" or "District", Lucho Rodriguez, Deputy City Engineer, the duly appointed ENGINEER OF WORK, submit herewith the "Report" consisting of six (6) parts as follows: PART A Plans and specifications for the improvements showing and describing the general nature, location and extent of the improvements. PART B An estimate of the cost of the proposed improvements for FY 2022-2023, including incidental costs and expenses in connection therewith. PART C An assessment of the estimated cost of the improvements on each benefited lot or parcel of land within the Assessment District. PART D The method of apportionment of assessments, indicating the proposed assessment of the total amount of the costs and expenses of the improvements upon the several lots and parcels of land within the Assessment District, in proportion to the estimated benefits to be received by such lots and parcels. 87 3 PART E A list of the names and addresses of the owners of real property within the Assessment District, as shown on the last equalized roll of the Assessor of the County of Los Angeles. PART F The Diagram of the Assessment District Boundaries showing the exterior boundaries of the Assessment District, the boundaries of any zones within the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District. 88 4 PART A PLANS AND SPECIFICATIONS The facilities, which have been constructed within the City of Hermosa Beach, and those which may be subsequently constructed, will be operated, serviced and maintained as generally described as follows: DESCRIPTION OF IMPROVEMENTS FOR THE HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT 2022-2023 The proposed improvements for FY 2022-2023 may be generally described as the continued maintenance and operation of streets and sidewalks within the District, including the operation, servicing and maintenance of landscaping, lighting and appurtenant facilities that are located in and along such streets and sidewalks, including but not limited to, personnel, electrical energy, utilities such as water, materials, contracting services, and other items necessary for the satisfactory operation of these services described as follows: Street Landscaping and Appurtenant Facilities Landscaping, planting, shrubbery, trees and appurtenant facilities, including irrigation systems, hardscapes and fixtures in public street and sidewalk rights-of-way, including parkways and medians, within the boundaries of the Assessment District. Street Lighting and Appurtenant Facilities Poles, fixtures, bulbs, conduits, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide street lighting and traffic signals in public street and sidewalk rights-of-way, including parkways and medians, within the boundaries of the Assessment District. Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of the landscaping, lighting facilities and appurtenant facilities, including repair, removal or replacement of all or part of any of the landscaping, lighting facilities or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Servicing means the furnishing of water for the irrigation of the landscaping and the maintenance of any of the lighting facilities or appurtenant facilities and the furnishing of electric current or energy, gas or other illuminating agent for the lighting facilities, or for the lighting or operation of the landscaping or appurtenant facilities. The plans and specifications for the improvements, showing and describing the general nature, location, and the extent of the improvements, are on file in the office of the City Clerk and are incorporated herein by reference. 89 5 PART B ESTIMATE OF COSTS LANDSCAPING AND STREET LIGHTING DISTRICT Proposed Budget - Fiscal Year 2022-2023 The estimated cost of the operation, servicing and maintenance of the street and sidewalk improvements for fiscal year 2022-2023, as described in Part A, are summarized herein and described below. Lighting and Landscaping Maintenance and Servicing • Median & Pkwy Landscaping Maintenance and Servicing • Lighting Maintenance and Servicing • Tree Trimming $522,782 Administration Costs $11,054 Insurance $204,533 L.A. County Tax Collection Costs $2,000 Equipment Replacement $55,099 Proposed Capital Improvements $0 Expenditures Subtotal: $795,468 Appropriation from Fund balance $92,097 Amount transferred from RTI Undersea Cable Fund and Tyco Fund $240,835 Miscellaneous Revenues $1,236 Total Assessment: $461,300 Fund Balance 6/30/23 $0 Total amount of $229,790 was transferred from the RTI Undersea Cable Fund in FY 2021– 22. An additional amount of $239,245 will be transferred from the RTI Undersea Cable Fund and $1,590 will be transferred from the Tyco Fund to maintain the District for FY 2022–23. The 1972 Act requires that a special fund be set up for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be made to reduce assessments, as the City Council deems appropriate. Any balance or deficit remaining on July 1 must be carried over to the next fiscal year. Note: Total cost of the operation, servicing and maintenance of the Landscaping and Street Lighting District 2022-2023 is estimated to be $795,468. 90 6 PART C ASSESSMENT ROLL The total proposed assessment for Fiscal Year 2022-2023 and the amount of the total proposed assessment apportioned to each lot or parcel within the District, as shown on the latest assessment roll at the Los Angeles County Assessor's Office, are contained in the Assessment Roll on file in the office of the City Clerk of the City of Hermosa Beach, which is incorporated herein by reference. The description of each lot or parcel is part of the Los Angeles County assessment roll and this roll is, by reference, made part of this Report. 91 7 PART D METHOD OF APPORTIONMENT OF ASSESSMENT GENERAL Part 2, of Division 15, of the Streets and Highways Code, the Landscaping and Lighting Act of 1972, permits the establishment of assessment districts by cities for the purpose of providing certain public improvements which include operation, maintenance and servicing of street lights, traffic signals and landscaping. The 1972 Act requires that maintenance assessments be levied according to benefit rather than according to assessed value. Section 22573 provides that: “The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.” The Act permits the designation of zones of benefit within any individual assessment district if "by reason of variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements" (Sec. 22574) Thus, the 1972 Act requires the levy of a true "benefit assessment" rather than a "special tax." Exempted from the assessment would be the areas of all publicly owned property in use in the performance of a public function. Railroad and utility rights-of-way are also exempt from assessment. BENEFIT ANALYSIS • Street Lighting and Traffic Signals - The proper functioning of street lighting and traffic signals is imperative for the welfare and safety of the public and property throughout the City. Proper operation, maintenance and servicing of the street lighting system benefits properties within the District by providing proper illumination for ingress and egress and safe traveling at night. Properties within the District also benefit from the proper functioning of the District's traffic signal system. Proper operation of the streetlight and traffic signal systems is imperative to public convenience, orderly traffic flow, enhanced congestion management and safety. Improved security, fuel conservation, protection of property from crime and vandalism, and reduction of traffic accidents, are special and direct benefits to all properties within the City; lighting benefits are directly related to public safety and property protection and therefore increase property values. • Median and Parkway Landscaping and Tree Trimming - Trees, landscaping, hardscaping and appurtenant facilities, if well maintained, provide beautification, shade and enhancement of the desirability of the surroundings, and therefore increase property value. The City maintains trees and miscellaneous shrubbery and landscaping throughout the City. The trees, shrubbery and landscaping are located within the public street and sidewalk rights-of- way, including parkways and medians. These trees, shrubbery and landscaping provide an 92 8 aesthetically pleasing environment, shade, beautification, and, according to some authorities, air purification and sound attenuation. These positive attributes increase the value of all properties throughout the City. Therefore, all property within the District receive an overall specific and direct benefit from the maintenance and servicing of the street median and parkway landscaping and street tree trimming programs. Special benefits which are received by all parcels in the City are considered to be City-wide Benefits, and the associated costs of these special benefits are spread equally, based on Equivalent Dwelling Units, to all parcels within the District. All properties in the District benefit from the operation, maintenance and servicing of the street lighting, traffic signals, street median and parkway landscaping and street tree trimming. The degree of benefit to each parcel of land varies depending on its land use and the size of the parcel. If assessments were spread on an individual parcel basis, not considering land use or parcel size, it would not be an equitable method of spread because a single family parcel would pay the same assessment as a 50-unit apartment parcel or a large commercial parcel. Therefore, the method for spreading the improvement costs, which must be based on special and direct benefit, is on an Equivalent Dwelling Unit (EDU) basis. The EDU method uses the residential dwelling unit as the basic unit and compares other uses to it, as follows: • Residential parcels are assessed based on the number of dwelling units on each parcel, where each residential dwelling unit equals one EDU • Non-residential parcels have been converted into EDU'S, based on engineering judgment taking into consideration the size of the parcel and the amount of frontage along the street. Every parcel is assessed a minimum of one (1) EDU. There are a total of 11,129 EDU's within the Assessment District. ASSESSMENT RATE CALCULATION Based on a budget of $461,300 as shown in Part B of this report, the preliminary assessment rate for FY 2022-2023 is calculated as follows: $461,300 ÷ 11,129 EDU's = $41.45 per EDU The assessment for FY 2021-2022 was $41.45 per EDU. 93 9 PART E PROPERTY OWNER LIST A list of names and addresses of the owners of all parcels within this District is shown on the last equalized Property Tax Roll of the Assessor of the County of Los Angeles, which by reference is hereby made a part of this report. This list is keyed to the Assessor's Parcel Numbers as shown on the Assessment Roll on file in the office of the City Clerk of the City of Hermosa Beach. 94 10 PART F ASSESSMENT DISTRICT BOUNDARY The boundaries of the District are coterminous with the boundaries of the City of Hermosa Beach. A diagram showing the exterior boundaries of the District, the boundaries of any zones within the District, and the lines and dimensions of each lot or parcel of land within the District is on file in the office of the City Clerk of the City of Hermosa Beach, and is incorporated herein by reference. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles for fiscal year 2021-2022. The Assessor's maps and records are incorporated by reference herein and made part of this report. 95 11 2022-2023 96 Page 1 of 2 22-XXXX 1 RESOLUTION NO. 22-XXXX 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, 4 CALIFORNIA, APPROVING THE ENGINEER’S REPORT IN CONNECTION WITH 5 HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT 2022-2023 6 7 HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT 2022-2023 8 WHEREAS, the City Council of the City of Hermosa Beach, California, by its Resolution 9 No. 21-7310, adopted April 12, 2022, ordered the Director of Public Works to prepare and file a 10 report in accordance with Article 4 of Chapter 1 of the Landscaping and Lighting Act of 1972, Part 11 2 of Division 15 (Section 22500, et seq.) of the Streets and Highways Code of the State of California, 12 in connection with the proposed maintenance and operation of streets and sidewalks within an 13 existing assessment district to be designated as the “Hermosa Beach Landscaping and Street 14 Lighting District 2022-2023”, including the operation, maintenance and servicing of landscaping, 15 lighting and appurtenant facilities located in and along such streets and sidewalks for the fiscal year 16 commencing July 1, 2022 and ending June 30, 2023; and 17 WHEREAS, under the direction of the Director of Public Works, the Deputy City Engineer, 18 acting as the Assessment Engineer, prepared and filed in the office of the City Clerk a written report 19 in accordance with Article 4 of Chapter 1 of the Landscaping and Lighting Act of 1972; and 20 WHEREAS, the City Clerk presented the report of the Deputy City Engineer to the City 21 Council, and the City Council carefully examined, inspected and considered the report and is 22 satisfied with the report and with each and all of the items set forth therein. 23 24 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA 25 BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: 26 SECTION 1. The report of the Deputy City Engineer entitled “Engineer’s Report, Hermosa 27 Beach Landscaping and Street Lighting District 2022-2023,” which was prepared and filed pursuant 28 to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 (Section 22500, 29 et seq.) of the Streets and Highways Code of the State of California, is hereby approved as filed. 30 97 Page 2 of 2 22-XXXX SECTION 2. This Resolution shall take effect immediately. The City Clerk shall certify to 31 the passage and adoption of this Resolution, shall cause the original of the same to be entered among 32 the original resolutions of the City Council, and shall make a minute of the passage and adoption 33 thereof in the minutes of the City Council meeting at which the same is passed and adopted. 34 35 36 PASSED, APPROVED AND ADOPTED this 10th day of May, 2022. 37 38 ________________________________________________________________________ 39 PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California 40 41 42 43 ATTEST: APPROVED AS TO FORM: 44 45 46 __________________________ __________________________ 47 Myra Maravilla Michael Jenkins 48 City Clerk City Attorney 49 50 51 98 Page 1 of 3 22-XXXX 1 RESOLUTION NO. 22-XXXX 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, 4 CALIFORNIA, DECLARING ITS INTENTION TO ORDER CERTAIN IMPROVEMENTS 5 AND TO LEVY AND COLLECT ASSESSMENTS WITHIN THE HERMOSA BEACH 6 LANDSCAPING AND STREET LIGHTING DISTRICT 2022-2023 FOR THE FISCAL 7 YEAR BEGINNING JULY 1, 2022 AND ENDING JUNE 30, 2023, AND APPOINTING A 8 TIME AND PLACE FOR A PUBLIC HEARING IN RELATION THERETO 9 10 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA 11 BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: 12 SECTION 1. The public interest and convenience require, and it is the intention of the City 13 Council of the City of Hermosa Beach, California, to order certain improvements within an existing 14 citywide assessment district for the fiscal year beginning July 1, 2022 and ending June 30, 2023, 15 and to levy and collect assessments against properties within the assessment district for that fiscal 16 year. 17 SECTION 2. The proposed improvements are the continued maintenance and operation of 18 the streets and sidewalks within the assessment district including the operation, servicing and 19 maintenance of landscaping, lighting and appurtenant facilities that are located in and along such 20 streets and sidewalks. 21 SECTION 3. The assessment district is designated as the “Hermosa Beach Landscaping 22 and Street Lighting District 2022-2023.” The assessment district is comprised of all of the City of 23 Hermosa Beach, as shown in the Engineer’s Report and on the “MAP OF LANDSCAPING AND 24 STREET LIGHTING DISTRICT 2022-2023” on file in the Office of the City Clerk. 25 SECTION 4. The assessments to be levied and collected against the assessable lots and 26 parcels of land within the assessment district for fiscal year 2022-2023 are not proposed to increase 27 from those levied and collected in fiscal year 2021-2022. 28 SECTION 5. Reference is hereby made to the report prepared by the Deputy City Engineer, 29 entitled “Engineer’s Report, for Hermosa Beach Landscaping and Street Lighting District 2022-30 2023,” on file in the Office of the City Clerk, for a full and detailed description of the improvements, 31 99 Page 2 of 3 22-XXXX the boundaries of the assessment district and any zones therein, and the proposed assessments upon 32 assessable lots and parcels of land within the assessment district. 33 SECTION 6. The improvements shall be provided pursuant to the provisions of the 34 Landscaping and Lighting Act of 1972, Part 2 of Division 15 (Section 22500, et seq.) of the Street 35 and Highways Code of the State of California, and in accordance with plans and specifications on 36 file in the office of the City Clerk. 37 SECTION 7. The assessment shall be levied and collected at the same time and in the same 38 manner and with the same interest and penalties as general taxes of the City, which are collected for 39 the City by the Los Angeles County Tax Collector. 40 SECTION 8. Public property owned by any public agency and in use in the performance 41 of a public function, which is included within the boundaries of the assessment district shall be 42 omitted and exempt from the assessment to be made to cover the costs and expenses of the 43 improvements. 44 SECTION 9. To expedite the making of the improvements, the City Council may transfer 45 into the “Hermosa Beach Landscaping and Street Lighting District 2022-2023 Fund,” out of any 46 money in the General Fund, any sums as it shall deem necessary, and the sums so transferred shall 47 be deemed a loan to such fund and shall be repaid in accordance with the Landscaping and Lighting 48 Act of 1972. 49 SECTION 10. NOTICE IS HEREBY GIVEN that Tuesday, June 14, 2022, at the hour of 50 6:30 PM in Civic Center Council Chambers, 1315 Valley Drive, Hermosa Beach, California, is 51 appointed as the date, time and place for hearing protests to the question of approving and 52 confirming the levy of the proposed assessment. 53 SECTION 11. The City Clerk is hereby authorized, designated and directed to give notice 54 of the public hearing in the time, form and manner required by law. 55 SECTION 12. The EASY READER, a weekly newspaper of general circulation circulated 56 within the City, is hereby designated as the newspaper in which said notice shall be published. 57 SECTION 13. This Resolution shall take effect immediately. The City Clerk shall certify 58 to the passage and adoption of this Resolution, shall cause the original of the same to be entered 59 among the original resolutions of the City Council and shall make a minute of the passage and 60 adoption thereof in the minutes of the City Council meeting at which the same is passed and adopted. 61 62 100 Page 3 of 3 22-XXXX PASSED, APPROVED AND ADOPTED this 10th day of May, 2022. 63 64 ________________________________________________________________________ 65 PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California 66 67 68 69 ATTEST: APPROVED AS TO FORM: 70 71 72 __________________________ __________________________ 73 Myra Maravilla Michael Jenkins 74 City Clerk City Attorney 75 76 77 101 City of Hermosa Beach NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of Hermosa Beach shall hold a public hearing on Tuesday, June 14, 2022, to consider the following: 1. The order of certain improvements and the levy and collection of assessments within the Hermosa Beach Landscaping and Street Lighting District 2022-2023 for the fiscal year beginning July 1, 2022 and ending June 30, 2023. On May 10, 2022, the City Council adopted a resolution of intention to order certain improvements and collect assessments within the Citywide Hermosa Beach Landscaping and Street Lighting District for the fiscal year 2022-2023 and setting the public hearing for June 14, 2022. SAID PUBLIC HEARING shall be held at 6:30 P.M., or as soon thereafter as the matter may be heard at the regular City Council meeting for the hearing of protests or objections to the levy of the proposed assessment against the lots and parcels of property within the District for the 2022-2023 fiscal year. Hybrid virtual/in-person meetings are held pursuant to AB361. State and local officials recommend measures to promote social distancing. Members of the public may email comments to cityclerk@hermosabeach.gov or submit eComments until 3:00 p.m. on the meeting date. IN-PERSON: Council Chambers, 1315 Valley Drive, Hermosa Beach ZOOM: The link is available on the published agenda at www.hermosabeach.gov OR PARTICIPATE BY PHONE: Toll Free: 833-548-0276 Meeting ID: 899 6820 7828, then # Passcode: 472825 ATTENDEES WILL BE MUTED UNTIL THE PUBLIC PARTICIPATION PERIOD IS OPENED. If you are joining by phone, press * 9 to raise your virtual hand and * 6 to unmute your line when asked to do so. Comments from the public are limited to 3 minutes per speaker. ANY AND ALL PERSONS interested are invited to participate and speak at this hearing at the above time and place. All interested persons shall be afforded the opportunity to hear and be heard. Any interested person may file a written protest with the City Clerk prior to the conclusion of the hearing. A written protest shall state all grounds of objection. A protest by a property owner shall contain a description sufficient to identify the property owned by the signer thereof. Written protests may be delivered in person to the City Clerk or may be mailed to the City Clerk at City Hall, 1315 Valley Drive, Hermosa Beach, CA 90254. Any written protest must be received by the close of the public hearing to be counted. For inclusion in the agenda packet to be distributed, written comments of interested parties should be submitted to the department listed with the item, in care of City Hall at the above address prior to Tuesday, June 7, 2022, at 12:00 noon. 102 IF YOU CHALLENGE the above matter(s) in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the above-listed departments at, or prior to, the public hearing. FOR FURTHER INFORMATION, please contact the Public Works Department, Tel: (310) 318-0214 or e-mail gledezma@hermosabeach.gov. A copy of the staff report(s) in the City Council packet will be available for public review by Friday, June 10, 2022, at the Office of the City Clerk and on the City’s website at www.hermosabeach.gov. Myra Maravilla City Clerk 103 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0270 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 APPROVAL OF LETTERS OF SUPPORT FOR PROPOSED ASSEMBLY BILL 2074 (GIPSON) PROVIDING INCENTIVES FOR MICROMOBILITY DEVICES AND 2432 (MURATSUCHI) ALLOWING CREATION OF A NEIGHBORHOOD ELECTRIC VEHICLE TRANSPORTATION PLAN (Environmental Programs Manager Douglas Krauss) Recommended Action: Staff recommends City Council: 1.Authorize the Mayor to sign letters of support (Attachments 1 and 2)on behalf of the City regarding Assembly Bill 2074 providing incentives for micromobility and Assembly Bill 2432 allowing creation of a neighborhood electric vehicle transportation plan; and 2.Submit the letters to key legislators and local stakeholders Executive Summary: Proposed Assembly Bills 2074 and 2432 (AB 2074 and AB 2432)both aim to promote and expand micromobility.As defined by the Federal Highway Administration,micromobility refers to,“any small, low-speed,human-or electric-powered transportation device,including bicycles,scooters,electric- assist bicycles,electric scooters (e-scooters),and other small,lightweight,wheeled conveyances.” Staff recommends City Council approve a letter supporting the proposed legislation.These bills align with mobility goals established in PLAN Hermosa,the City’s general plan developed in 2017,and are both sponsored by the South Bay Cities Council of Governments (SBCCOG). Background: The City of Hermosa Beach works to increase and improve multi-modal transportation opportunities. PLAN Hermosa details a number of mobility goals including an emphasis on promoting Complete Streets and multi-modal transportation options.Additionally,the City works with the SBCCOG on their Local Travel Network (LTN),which aims to increase options and safety for neighborhood electric vehicles (NEV,i.e.,“golf carts”)and other micromobility modes of transportation throughout the South Bay. Since the SBCCOG will not know the exact nature of LTN signage or street markings until later in the program,the SBCCOG is supporting AB 2432 to provide cities the authority to adopt a plan,should it be determined that using "NEV"is important for the implementation of the LTN.AB 2074 proposes to City of Hermosa Beach Printed on 5/6/2022Page 1 of 4 powered by Legistar™104 Staff Report REPORT 22-0270 be determined that using "NEV"is important for the implementation of the LTN.AB 2074 proposes to obligate the State Air Resources Board to provide incentives for micromobility devices.This offers the potential to benefit both municipalities and community members with future incentive programs. Discussion: Assembly Bill 2432 Existing law defines “low-speed vehicle”for purposes of the Vehicle Code as a motor vehicle with four wheels that is capable of a minimum speed of 20 miles per hour and a maximum speed of 25 miles per hour on a paved level surface,having a gross vehicle weight rating of less than 3,000 pounds.Existing law imposes certain restrictions on the use of low-speed vehicles on public streets and highways,and generally requires an operator of a low-speed vehicle to have a driver’s license.A low-speed vehicle is also known as a neighborhood electric vehicle (NEV). State laws currently authorize certain local agencies to establish a NEV transportation plan subject to requirements.A person operating a NEV in a plan area in violation of certain provisions is guilty of an infraction punishable by a fine not exceeding $100.A violation of the Vehicle Code is an infraction, unless otherwise specified.This bill would authorize the County of Los Angeles or any city in the South Bay,as defined,to establish a similar NEV transportation plan for a plan area that may include any applicable portion of the county or city located within the jurisdiction of the South Bay Cities Council of Governments, as specified, subject to the same penalties. AB 2432 proposes to authorize the adoption of an NEV transportation plan by the County of Los Angeles or any city within the jurisdiction of the South Bay Cities Council of Governments.An adopted Neighborhood Electric Vehicle Plan would allow cities to use signage or street markings with the words "Neighborhood Electric Vehicle" or "NEV". AB 2432 would require the transportation plan to have received a prior review and the comments of the South Bay Cities Council of Governments,Southern California Association of Governments,and any agency having traffic law enforcement responsibilities in an entity included in the plan area. Review and approval of the plans by the Department of Transportation (DOT) would be required. If the County of Los Angeles or a city in the South Bay adopts a NEV transportation plan for the plan area,the bill would require the Southern California Association of Governments to,in consultation with DOT,the Department of the California Highway Patrol,and local law enforcement agencies, submit a report,as specified,to the Legislature on or before August 31,2028.The legislation would repeal these provisions on January 1,2040.Since the bill would create a new crime,it would impose a state-mandated local program.The California Constitution requires the State to reimburse local agencies and school districts for certain mandated costs.Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act City of Hermosa Beach Printed on 5/6/2022Page 2 of 4 powered by Legistar™105 Staff Report REPORT 22-0270 for a specified reason. Assembly Bill 2074 Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board (State Board)for the purposes of funding projects related to,among other things, the reduction of criteria air pollutants and improvement of air quality.Pursuant to its existing statutory authority,the State Board has established the Clean Vehicle Rebate Project,as a part of the Air Quality Improvement Program,to promote the production and use of zero-emission vehicles by providing rebates for the purchase of new zero-emission vehicles.Existing law specifies the types of projects eligible to receive funding under the program. AB 2074 would provide incentives for purchasing micromobility devices and would require the State Board,no later than July 1,2023,to establish a Micromobility Device Incentives Project to provide incentives, in the form of vouchers, to individuals for the purchase of micromobility devices. Both bills are supported by the SBCCOG and they have asked South Bay agencies to offer their individual support as well.Staff recommends that Council authorize the Mayor to sign a letter of support for each bill on behalf of the City. General Plan Consistency: This report and associated recommendations have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Mobility Goal 1. Complete Streets (Living Streets) that serve the diverse functions of mobility, commerce, recreation, and community engagement for all users whether they travel by walking, bicycling, transit, or driving. Policies: ·1.1 Consider all modes.Require the planning, design, and construction of all new and existing transportation projects to consider the needs of all modes of travel to create safe, livable and inviting environments for all users of the system. Mobility Goal 3.Public right-of-ways supporting a multi-modal and people-oriented transportation system that provides diversity and flexibility on how users choose to be mobile Policy: ·3.5 Incentivize other modes.Incentivize local shuttle/trolley services,rideshare and car share programs, and developing infrastructure that support low carbon vehicles Fiscal Impact: City of Hermosa Beach Printed on 5/6/2022Page 3 of 4 powered by Legistar™106 Staff Report REPORT 22-0270 There is no fiscal impact associated with the recommended action. Attachments: 1.Draft Support Letter for AB 2432 2.Draft Support Letter for AB 2074 Respectfully Submitted by: Douglas Krauss, Environmental Program Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 4 of 4 powered by Legistar™107 City of Hermosa Beach Civic Center, 1315 Valley Drive, Hermosa Beach, CA 90254-3885 Page 1 of 2 May 11, 2022 The Honorable Al Muratsuchi Assemblymember, 66th District State Capitol P.O. Box 942849 Sacramento, CA 94249-0066 RE: AB 2432 (Muratsuchi) Neighborhood electric vehicles: County of Los Angeles: South Bay cities area. – SUPPORT Dear Assemblymember Muratsuchi, On behalf of the City of Hermosa Beach, I am writing to express our support for AB 2432 (Muratsuchi). This bill will allow cities within the South Bay region of Los Angeles County to adopt neighborhood electric vehicle (NEV) plans. The South Bay Cities Council of Governments (SBCCOG) is working with cities to implement the South Bay Local Travel Network (LTN). As part of that initiative, cities may need to display road markings and signage that would notify all road users that those streets are designated for the use of NEVs. That process requires the state authorize cities to adopt NEV plans. Over the past decade, SBCCOG research has shown that approximately 70% of trips in the South Bay are within three miles of a person’s home, a distance too far to walk but too short for the infrequent transit service that exists. This causes people to use a personal vehicle to travel short distances. Despite significant efforts, electric vehicle adoption remains low, meaning most of these short trips are made in greenhouse gas (GHG) emitting gas-powered vehicles. Through grants from LA Metro and Caltrans, the SBCCOG developed the LTN, providing a network of signed, safe, and slow-speed local streets that connect neighborhoods to destinations throughout the subregion. The SBCCOG believes that once implemented, individuals will be encouraged to convert some of those trips to NEVs, e-bikes, or other clean micromobility modes, particularly if the purchase of those vehicles is incentivized through a rebate program as proposed in AB 2074 (Gipson). Converting trips to these zero-emission vehicles will help the state meet GHG reduction targets as well as reducing congestion on major arterials. 108 City of Hermosa Beach Page 2 of 2 For these reasons, the City of Hermosa Beach supports AB 2432. Should you have any questions, contact our City Manager, Suja Lowenthal, at suja@hermosabeach.gov. Sincerely, Michael Detoy Mayor of Hermosa Beach Copy: South Bay Cities Council of Governments (via email to info@southbaycities.org) Al Muratsuchi, Assemblymember, assemblymember.muratsuchi@assembly.ca.gov Jorge Morales, Legislative and Governmental Affairs Consultant, California Contract Cities Association, jorge@contractcities.org Jeff Kiernan, Regional Public Affairs Manager, Cal Cities jkiernan@calcities.org 109 City of Hermosa Beach Civic Center, 1315 Valley Drive, Hermosa Beach, CA 90254-3885 May 11, 2022 The Honorable Mike Gipson Assemblymember, 64th District State Capitol P.O. Box 942849 Sacramento, CA 94249-0064 RE: AB 2074 (Gipson) Air Quality Improvement Program: micromobility devices. – SUPPORT Dear Assemblymember Gipson, On behalf of the the City of Hermosa Beach, I am writing to express our support for AB 2074 (Gipson). We strongly support efforts to incentivize Californians to purchase electric vehicles and encourage a cleaner mode of travel. AB 2074 would create a rebate program for the purchase of micromobility devices which are low-speed vehicles powered by an electric powertrain with a top speed of 25 miles per hour. These vehicles include devices such electric bicycles, tricycles, scooters, skateboards, and neighborhood electric vehicles/golf-carts. As climate change accelerates, the state must do more to encourage individuals to shift travel modes into cleaner battery powered modes of transportation. Despite California’s incentives towards the purchase of full-size electric vehicles (EVs) over the past several years, EV adoption remains low. AB 2074 would help reduce the costs of micromobility devices that are more affordable to most Californians than a Tesla or similar full-size EV. The entire range of micromobility devices should be incentivized so that all Californians can do their part to reduce travel-related greenhouse gas emissions. For these reasons, the City of Hermosa Beach supports AB 2074. Should you have any questions, contact our City Manager, Suja Lowenthal, at suja@hermosabeach.gov. Sincerely, Michael Detoy Mayor of Hermosa Beach Copy: South Bay Cities Council of Governments (via email to info@southbaycities.org) Jeff Kiernan, Regional Public Affairs Manager, Cal Cities jkiernan@calcities.org Jorge Morales, Legislative and Governmental Affairs Consultant, California Contract Cities Association, jorge@contractcities.org Page 1 of 1 110 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0264 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 A RESOLUTION OF THE CITY OF HERMOSA BEACH PROVIDING NOTICE OF THE CITY’S INTENT TO WITHDRAW FROM THE INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY (ICRMA) (Human Resources Manager Vanessa Godinez) Recommended Action: Staff recommends City Council adopt a resolution (Attachment 1)providing notice of the City’s intent to withdraw from the Independent Cities Risk Management Authority (ICRMA). Executive Summary: The City of Hermosa Beach currently contracts with the Independent Cities Risk Management Authority (ICRMA)for insurance and risk management products and programs.To ensure cost- effective service delivery and reduction of financial risk,staff recommends conducting a review of the various insurance options available to the City.Providing a notice of the City’s intent to withdraw from ICRMA would allow the minimum noticing period to begin while staff concurrently conducts its review. Background: The City of Hermosa Beach has been a member of Independent Cities Risk Management Authority (ICRMA)since 1985.ICRMA is currently comprised of 16 Southern California cities including Adelanto,Bell,Downey,El Monte,El Segundo,Fullerton,Glendora,Hawthorne,Hermosa Beach, Huntington Park, Inglewood, Lynwood, Monterey Park, San Fernando, Santa Ana, and South Gate. The City is enrolled in the self-insured risk-sharing pool for general liability and workers’ compensation programs,along with property,cyber,and crime programs.The term ‘risk sharing pool’ refers to the pooling of risks among a group of entities,generally in a Joint Powers Authority (JPA). Member cities join to share losses within the pooled layer.The annual premium amount each member pays for programs is the best actuarial estimates of what will be needed to fund the claims for a given program year.Currently,ICRMA’s cost allocation formulas for the General Liability and Workers Compensation programs are 70 percent 10-year losses and 30 percent exposure (payroll). . At its February 27,2018 meeting,City Council directed staff to continue membership with City of Hermosa Beach Printed on 5/6/2022Page 1 of 3 powered by Legistar™111 Staff Report REPORT 22-0264 Independent Cities Risk Management Authority (ICRMA). Past Council Actions Meeting Date Description February 27, 2018 City Council direct staff to continue membership with Independent Cities Risk Management Authority (ICRMA) Discussion: To ensure cost-effective service delivery and reduction of financial risk,staff recommends conducting a study of the various insurance options available to the City.This due-diligence analysis would take place over the next six months,at which point the City would have the appropriate information to make an informed decision regarding the best insurance option. The current ICRMA Bylaws (Attachment 2)require the City provide ICRMA the Notice of Intent to Withdraw no later than July 1 of the preceding year.Notice received after that date shall be considered untimely.The City may revoke such notice by subsequently notifying ICRMA of its revocation by December 1 of the preceding year.Such revocation must be supported by the Council resolution or meeting minutes of the City authorizing such action. Adoption of the attached resolution (Attachment 1)would preserve the City's right to withdraw from ICRMA if the study shows the City would be better off with another option.Should the analysis, currently underway,demonstrate that ICRMA continues to be the best option for the City,Council will be asked to rescind the resolution at a future meeting. General Plan Consistency: This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Governance Element Goal 1. A high degree of transparency and integrity in the decision-making process. Policies: ·1.1 Open meetings.Maintain the community’s trust by holding meetings in which decisions are being made,that are open and available for all community members to attend,participate, or view remotely. ·1.6 Long-term considerations.Prioritize decisions that provide long-term community benefit and discourage decisions that provide short-term community benefit but reduce long-term City of Hermosa Beach Printed on 5/6/2022Page 2 of 3 powered by Legistar™112 Staff Report REPORT 22-0264 opportunities. Fiscal Impact: There is no fiscal impact associated with the recommended action. Attachments: 1. Draft Resolution 2. Independent Cities Risk Management Authority (ICRMA) Bylaws Respectfully Submitted by: Vanessa Godinez, Human Resources Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 3 of 3 powered by Legistar™113 -1- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 RESOLUTION NO. 2022-XXXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, PROVIDING NOTICE OF THE CITYS INTENT TO WITHDRAW FROM THE INDEPENDENT CITIES RISK MANAGEMENT AUTHORITY (ICRMA) WHEREAS; the Independent Cities Risk Management Authority (ICRMA) provides variety of pooled insurance products to its member cities; WHEREAS, the City of Hermosa is currently an ICRMA Member and participates in various ICRMA insurance programs; WHEREAS, the Joint Exercise of Powers Agreement f or Insurance and Risk Management Purposes and the By-laws of the ICRMA establish the guidelines for participation in the insurance and other related programs offered by ICRMA and further provide the process for withdrawal from the ICRMA; WHEREAS, the City of Hermosa Beach would like to perform a due- diligence analysis of its current method for providing insurance and related programs; WHEREAS, the City of Hermosa Beach wishes to preserve its right to withdraw from ICRMA should the current analysis show that withdrawal would be advantageous to the City; WHEREAS, the City of Hermosa Beach may elect to adopt a resolution rescinding this notice to withdrawal should the current analysis show that withdrawal would not be advantageous to the City; and WHEREAS, the ICRMA program by-laws require a Member to provide specific notification of intent to withdraw via the adoption of a governing body resolution. NOW, THERFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City will withdraw from the Independent Cities Risk Management Authority at the end of the next program year, effective at 11: 59 p.m. on June 30, 2023. PASSED, APPROVED, and ADOPTED this 10th day of May, 2022. 114 -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 _________________________________________________________________ PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: __________________________ __________________________ City Clerk, Myra Maravilla City Attorney, Michael Jenkins 115 ICRMA BYLAWS Effective August 12, 2021 116 As Approved 8/12/2021 *** ICRMA General Counsel reviewed and approved prior to Board vote. Page 2 of 15 Change Record Date Description 3/1/2018 The Board approved this restatement of ICRMA’s bylaws at its March 1, 2018 meeting as follows: They will become effective on July 1, 2018. Board members (voting and alternate) seated as of March 1, 2018 will be exempted from the following provision until they resign, are removed, or the seat becomes vacant. At that point, the replacement must comply with this provision. ARTICLE VII – DIRECTORS B. Eligibility & Appointment 3. Eligibility – Directors must be 1) elected officials, OR 2) City Managers, OR 3) hold positions with authority equivalent to a Department Director within the Member hierarchy; OR 4) be dedicated (full time) to risk management for the Member and approved for appointment by the ICRMA Board. In addition to replacing the current ICRMA bylaws, approval of this document incorporates and thus supersedes the following stand-alone policies: o Administrative Committee Roles and Responsibilities adopted December 12, 2007 o Dispute Resolution Policy adopted April 17, 2008 o Mission statement adopted February 7, 2010 o Policy Regarding Recusal of Member City adopted August 15, 2001 8/12/2021 Article VII.B - Clarified Board Director eligibility applies only to elected officials and certain employees. Article VIII.E.2 - Revised solicitation process for Officer positions. Article XI.K-M - Revised settlement authority to include the Property and Auto Physical Damage programs. Article XI.N - Clarified that claims audit requirements only apply to the Liability and Workers’ Compensation Programs. Article XIII - Revised: 1) in Section H.2. to allow for a transfer of funds between program years when the conditions of the Net Asset Policy are met, 2) in Section I.1. to allow the Board more discretion in determining an appropriate amount to assess, and 3) in Section I.2.c to match the language in the Net Asset Policy. Article XVII - Revised to not require special notice to the Board of proposed Bylaws changes. 117 As Approved 8/12/2021 *** ICRMA General Counsel reviewed and approved prior to Board vote. Page 3 of 15 Table of Contents ARTICLE I – PURPOSE ARTICLE II – DEFINITIONS ARTICLE III – BROWN ACT ARTICLE IV – NOTICE ARTICLE V – MEMBERSHIP A. Eligibility B. Application C. Obligations of Membership D. Surcharges E. Default of Member Obligations F. Voluntary Withdrawal G. Following Withdrawal or Expulsion ARTICLE VI – BOARD OF DIRECTORS A. Authority B. Composition C. Decision-Making D. Quorum E. Meetings ARTICLE VII – DIRECTORS A. Terminology B. Eligibility & Appointment C. Form of Appointment D. Director Authority E. Conflicts of Interest F. Resignation, Removal & Vacancy ARTICLE VIII – OFFICERS A. Number B. Duties C. Eligibility for Office D. Terms of Office E. Elections F. Vacancy ARTICLE IX – COMMITTEES A. Formation B. Claims Committee C. Nominations Committee ARTICLE X – ADMINISTRATION A. Executive Director B. Legal Counsel C. Authority to Contract D. Directors & Officers Insurance E. Claims Against ICRMA ARTICLE XI – COVERAGE PROGRAMS A. Purpose B. Authority C. Bylaws D. Coverage Terms E. Participation F. Conflicting Representation G. Retained Limits H. Excess Coverage I. Claims Procedures J. Claims Committee K. Settlement Authority L. Claims Audit ARTICLE XII – DISPUTE RESOLUTION A. Defined B. Scope C. Procedure ARTICLE XIII – FINANCIAL MATTERS A. Fiscal year B. Budget C. Audit D. Board Compensation & Expenses E. General Administration of Funds F. Program Accounting G. Member Contribution H. Dividends I. Assessments J. Deposit & Investment of Funds ARTICLE XIV – TERMINATION & DISTRIBUTION A. Termination B. Distribution of Assets C. Durability in Wind-Down ARTICLE XV – TORT LIABILITY ARTICLE XVI – EFFECTIVE DATE & SUPERSESSION ARTICLE XVII – AMENDMENTS 118 As Approved 8/12/2021 *** ICRMA General Counsel reviewed and approved prior to Board vote. Page 4 of 15 ICRMA BYLAWS ARTICLE I – PURPOSE The Independent Cities Risk Management Authority (ICRMA) is a public entity established for the purpose of operating and maintaining a cooperative program of self-insurance, jointly purchased insurance coverage, and risk management; and to provide a forum for the discussion, study, development, and implementation of procedures of mutual benefit in risk sharing and risk management progra ms. Its stated mission is to be the premier member-focused association of California public entities, joined together to protect member resources by managing the cost of risk, by providing its members with comprehensive risk management services and broad coverage, resulting in cost stabilization and effective risk solutions. Further objectives may be provided for in the ICRMA Joint Powers Agreement (the Agreement) or ICRMA’s Governing Documents. 1 ARTICLE II – DEFINITIONS Unless expressly provided otherwise, terms used in these Bylaws are as defined in the Agreement and/or Memoranda of Coverage. ARTICLE III – BROWN ACT ICRMA shall act in accordance with the Ralph M. Brown Act (Government Code §54950 et seq., hereinafter the “Brown Act”). ARTICLE IV – NOTICE Unless otherwise specified, any notice to be given or to be served in connection with these Bylaws must be in writing (i.e., mail, email, or other means of written communication) and will be deemed to have been given and received when delivered personally, by mail, email, or other form of notice acceptable under the Brown Act using the contact information as shown on ICRMA’s records. ARTICLE V – MEMBERSHIP A. Eligibility – The Agreement defines Member eligibility under California law, and each party to the Agreement is a Member. B. Application – In order to become a Member, a governmental agency must agree to: 1. Be bound by ICRMA’s Governing Documents, 2. Participate in ICRMA’s liability program (minimum participation required), AND 3. Comply with all requirements set forth in ICRMA’s Underwriting Policies then in effect and as subsequently modified. The Board of Directors (the Board) approves or disapproves applications per ICRMA’s Underwriting Policies then in effect. C. Obligations of Membership – The obligations of a Member include but are not limited to those listed below. Failure to comply in any way may subject the Member to penalties, up to and including expulsion from ICRMA. 1. Minimum Commitment – Upon acceptance, the Member shall commit to three (3) full years of membership in ICRMA. Subsequently, the Member shall commit to at least one (1) full year per renewal. The Member may apply to participate in any coverage program. However, it must maintain participation in the liability program order to remain a member of ICRMA. 2. Active Engagement – ALL current members shall appoint a representative to the Board and attend meetings. 3. Payments – ALL current AND past members shall be responsible for: a Contributing their share of premiums or funds to any fund or insurance program created by the Authority AND b Paying their respective share of ICRMA expenses UNTIL ALL claims or other unpaid liabilities, covering the period ICRMA’s the Member’s participation in the program have been 1 As defined in the Agreement, ICRMA’s Governing documents include the Agreement, ICRMA’s Bylaws, the Memoranda of Coverage and any other document stipulated as a Governing Document in the Bylaws or by action of the Board of Directors. 119 As Approved 8/12/2021 *** ICRMA General Counsel reviewed and approved prior to Board vote. Page 5 of 15 finally resolved and the Board has determined the final amount of payments due by, or credited to, the Member for the period of its participation. These obligations include payment of assessments, retrospective adjustments, as well as any other amounts due and payable. The Board determines all such amounts. 4. Data – ALL current AND past members shall be responsible for providing timely, accurate and factual data required by ICRMA to determine appropriate cost of coverage, evaluate claims exposure, manage programs, or otherwise facilitate operations of ICRMA. As a result, the Member may be required to disclose activities not usual and customary in their operation. The obligation to provide timely data does not cease with withdrawal, expulsion, or termination of any program. 5. Cooperation – The Member shall at all times cooperate with ICRMA in regard to ICRMA’s underwriting and claims activities, which shall include the collection of loss data in accordance with ICRMA’s Third Party Claims Administration Data Request Standards. Cooperation with ICRMA includes but is not limited to cooperation with its Executive Director, program managers, Claims Committee, claims adjusting company, and loss control personnel. 6. Accountability – All Members shall be held accountable for understanding and abiding by ICRMA’s Governing Documents, as well as any changes thereto. D. Surcharges – Failure by a Member to meet some obligations are immediately subject to surcharges as follows: 1. Delinquent Payments – Members with delinquent amounts due to ICRMA will be assessed a surcharge as follows unless other arrangements for payment have been approved by the Board: a One percent (1%) of the unpaid amount due to ICRMA 30 days after the initial invoice due date. b A surcharge of another one percent (1%) accrues after an additional 45 days. 2. Delinquent Data – Applications that are incomplete or not timely received by ICRMA prior to the beginning of the new program year will subject the member entity to a surcharge in accord with ICRMA’s Governing Documents. 3. Implementation of Surcharges – Interest accrues on all delinquent amounts due and payable to ICRMA at the applicable rate of 10% per year from the due date of the billing until the date finally posted by the designated financial institution. a For the purpose of assessing surcharges and interest, the fee calculation shall be based on each calendar day the delinquent amount is late, notwithstanding the foregoing. b No surcharge may exceed the maximum authorized by law. c The Board may waive or reduce a surcharge for good cause shown by the Member, no more than once per five (5) years. d Each Member shall indemnify ICRMA from expenses resulting from its failure to pay sums on or before their due date. 4. Appeals – A Member may appeal any surcharge assessed here in accordance Article XII of these bylaws. E. Default of Member Obligations – The Agreement allows for expulsion of Members following material breach per provisions to be included in these Bylaws. As such, this Section defines expulsion and other remedies for default of member obligations. 1. Definition – The following are "defaults" under the Agreement and these Bylaws: a Failure by a Member to observe or perform any covenant, condition, or agreement under ICRMA’s Governing Documents; b Consistent failure by a Member to attend meetings, respect Board decision-making authority, or otherwise circumvent ICRMA’s integrity as a joint powers agency; c Consistent failure to cooperate fully in the fulfillment of the ICRMA objectives, including but not limited to: i Submission of requested documents and information; ii Cooperation with any insurer, claims adjuster, legal counsel or other service provider engaged or retained by ICRMA in all matters relating to ICRMA. d Failure to pay ANY amounts, including surcharges, penalties and interest, due to ICRMA for more than 30 days; e The filing of a petition applicable to the Member in any proceedings instituted under the provisions of the Federal Bankruptcy Code or under any similar act which may hereafter be enacted; OR f Any condition of the Member that the Board of Directors believes is unduly detrimental to ICRMA. 120 As Approved 8/12/2021 *** ICRMA General Counsel reviewed and approved prior to Board vote. Page 6 of 15 2. Remedies Available to ICRMA on Default a Scope – ICRMA may exercise any and all remedies available pursuant to law or granted pursuant to the Agreement and these Bylaws whenever a default as defined in this Article occurs. i No remedy contained in these Bylaws is intended to be exclusive. ii Available remedies include, but are not limited to, imposing a penalty or assessment, cancellation of Member’s coverage, expulsion from a risk management program, and/or expulsion of the Member from ICRMA. b Process i The Board will give a Member in default 30 days’ notice of its intent to deliberate on a remedy for said default. ii Remedies will be effective on the date prescribed by the Board. iii The Board has discretion to impose conditions for curing any default, and for reinstating the Member to its rights. c Cancellation of Coverage under a Program – Upon any default, the Board may: i Temporarily cancel any or all rights of the defaulting Member in any program in which such Member is in default until such time as the condition causing default is corrected and/or other conditions are met (e.g., the Board may temporarily suspend coverage if a Member fails to pay its contribution); OR ii Permanently cancel any or all rights of the defaulting Member in any program in which such Member is in default. d Involuntary Termination or Expulsion – The Board may expel any Member that is in default as defined in these Bylaws. Such expulsion will be effective on the date prescribed by the Board, but not earlier than 30 days after notice of expulsion has been personally served on or sent via certified mail to the Member. e No Additional Waiver Implied – No delay or omission to exercise any right or power accruing upon any default shall impair any such right or shall be construed to be a waiver thereof. Further, in the event any condition contained in ICRMA’s Governing Documents is breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived, and shall not be deemed to waive any other breach hereunder. 3. Agreement to Pay Attorney's Fees and Expenses – In the event either ICRMA or a Member is in default and the other party employs attorneys or incurs expenses for the collection of moneys, the enforcement of performance, or observance of any obligation under the Agreement on the part of the defaulting party, the losing party shall pay to the other party the reasonable fees of such attorneys and such other expenses so incurred by the other party. F. Voluntary Withdrawal – Member withdrawal from any or all programs must be in accord with ICRMA’s Governing Documents. 1. Limitations a No withdrawal may become effective EXCEPT at the close of a program year. b A Member providing untimely notice shall be responsible for the full cost of the subsequent year’s contribution. c A Member may NOT withdraw prior to the end of its initial three (3) year commitment period and shall be obligated, in all cases, for payment of its ENTIRE annual contribution for those three (3) years. 2. Notice of Intent to Withdraw a In order to be effective, notice of intent to withdraw from ICRMA or to terminate participation in a specific program must be from the City Manager or other duly authorized official of the Member AND must be accompanied by the Council resolution or meeting minutes of the Member authorizing such action. b In order to be timely for a given program year beginning July 1, notice must be received by ICRMA no later than July 1 of the preceding year. Notice received after that date shall be considered UNTIMELY and thus INEFFECTIVE. c The Member may revoke such notice by subsequently notifying ICRMA of its revocation by December 1 of the preceding year. Such revocation must be supported by the Council resolution or meeting minutes of the Member authorizing such action. However, that support may arrive following communication to ICRMA of the Member’s revocation. 3. Reapplication – A Member, which has voluntarily withdrawn from ICRMA or a specific program, may reapply for membership. G. Following Withdrawal or Expulsion 1. NEITHER WITHDRAWAL NOR EXPULSION FROM ICRMA OR ANY OF ITS PROGRAMS RELIEVES ANY MEMBER OF ANY RIGHTS, OBLIGATIONS, LIABILITIES, OR DUTIES DURING THOSE PROGRAM YEARS, IN WHICH THE ENTITY PARTICIPATED. 121 As Approved 8/12/2021 *** ICRMA General Counsel reviewed and approved prior to Board vote. Page 7 of 15 2. Neither the withdrawal nor the expulsion of any Member from any program shall require the repayment or return to that Member of all or any part of any contributions, payments, advances, or distributions except in conformance with the provisions set forth herein and in ICRMA’s Governing Documents. ARTICLE VI – BOARD OF DIRECTORS A. Authority – ICRMA is governed by its Board of Directors (the Board). The Board has the responsibility and authority to perform all relevant functions, and make all decisions affecting ICRMA’s programs, consistent with the powers of ICRMA and not in conflict with the Agreement or other ICRMA Governing Documents. Actions properly approved or taken by the Board shall be binding on all Members regardless of the vote of any individual Director or her/his presence when the action was taken. The Board may delegate its responsibilities EXCEPT for: 1. Those requiring a vote by the Board as specified in the Agreement and ICRMA’s Governing Documents, OR 2. Those listed here: a Accept a new Member into ICRMA; b Alter a Member’s retained limit; c Adopt a budget; d Amend its Governing Documents, including these Bylaws; e Approve contracts for ICRMA administrative services and legal counsel; f Approve dividends to and/or assessments of Members; g Establish, amend, or terminate a program; h Settle matters in excess of the Claims Committee authority; i Approve indebtedness; j Expel, terminate or suspend the rights of a Member; and k Approve dissolution of ICRMA. B. Composition – The ICRMA Board is comprised of one (1) Director appointed by each Member agency. C. Quorum – Quorum for the transaction of business is defined in the Agreement. D. Decision-Making – All matters within the purview of the Board may be decided by a simple majority (over 50%) vote of the Board present, EXCEPT for the following matters specified as requiring a two-thirds majority vote of the full Board: 1. Approve indebtedness; 2. Expel, terminate or suspend the rights of a Member; and 3. Approve dissolution of ICRMA. E. Meetings 1. Regular Meetings – The Board holds regular meetings each year at the time and place of its choosing. 2. Special Meetings – The President OR a majority (over 50%) of the Board may call a special meeting. 3. Conference Telephone – Directors may participate in a meeting by teleconference in compliance with the Brown Act. ARTICLE VII – DIRECTORS A. Terminology – In these Bylaws the term “Director”, unmodified, refers to the Voting Director as well as any appointed alternates. B. Eligibility & Appointment 1. Voting Director – Each Member agency is required to appoint one (1) Voting Director to the Board. 2. Alternates – A Member may appoint no more than two (2) alternates in order to ensure attendance at Board meetings. 3. Eligibility – Directors must be 1) elected officials of the Member, OR 2) City Managers performing services exclusively for the Member, OR 3) Employees of the Member holding positions with authority equivalent to a Department Director within the Member hierarchy; OR 4) Employees of the Member dedicated (full time) to risk management for the Member and approved for appointment by the ICRMA Board. C. Form of Initial or Changed Appointment 1. ICRMA must receive notice of an appointment BEFORE it can become effective. 2. All appointments shall be made via Member Council resolution. 3. All appointments must be of a specifically named individual or specific position (e.g., City Manager). 122 As Approved 8/12/2021 *** ICRMA General Counsel reviewed and approved prior to Board vote. Page 8 of 15 4. Appointments by position must provide specific contact information with the initial resolution. 5. The Board may approve or reject appointment of a specific individual and request that the Member select another. D. Director Authority 1. General – Each Director is individually expected to: a Meet all legal obligations of Board service, b Perform all duties set forth in ICRMA’s Governing Documents, and c Serve with keen attention to ICRMA’s purpose and high professional standards 2. Voting Rights a ICRMA allows no proxies. Thus, Voting Directors and alternates exercise independent judgment in all ICRMA matters including but not limited to voting, making motions, or otherwise acting in a governance capacity at a Board meeting. b In no instance may a Member have more than one vote on any item before the Board or have more than one appointee vote, make motions, or otherwise act in a governance capacity during a single meeting. Therefore, when the Voting Director is in attendance, only she/he votes, makes motions, or otherwise acts in a governance capacity at a Board meeting. An alternate may do these things in the Voting Director’s absence. c A Member shall notify ICRMA of an anticipated Voting Director absence as soon as practicable, at which point t he Member will declare which alternate will exercise its voting rights for a given meeting. 3. Recusal – Whenever a member city is involved in litigation with ICRMA, the representative of that member city may not participate in, nor be present during, any discussion related to that litigation between ICRMA counsel and the ICRMA Board or any of its committees, nor may any legally privileged communication between ICRMA's counsel and the Board or the Committee be distributed to the representative of the member city. E. Conflicts of Interest – ICRMA’s Conflict of Interest Policy incorporates by reference California Code of Regulations, §18730, and any amendments thereto. F. Resignation, Removal & Vacancy 1. Resignation – A Director may resign at any time by giving notice of resignation to the ICRMA Executive Director. Such resignation is immediate unless otherwise specified. Acceptance of such resignation is not necessary to make it effective. 2. Removal a By the Board – The Board may request removal of any Director for cause. Cause for removal of a Director includes, but is not limited to, two (2) or more consecutive absences, failure to adhere to approved code of conduct, repeated failure to fulfill the duties set forth these bylaws or other board-approved policy statements, repeated failure to address conflicts of interest, or other actions that jeopardize IRCMA or the Board’s governance function. b By the Member – The appointing Member may remove its Director(s) with or without cause. c Automatic – Termination of office or employment with the appointing Member automatically terminates a Director’s appointment to the Board. 3. Vacancy – The respective Member shall promptly fill any Board vacancy regardless of its cause. ARTICLE VIII – OFFICERS A. Number – ICRMA has four (4) Officers – President, Vice President, Treasurer, and Secretary – as set forth in these Bylaws. B. Duties – All Officers are expected to maintain regular meeting attendance and to ensure that ICRMA affairs are carried out consistent with its mission, Bylaws, and Governing Documents. In addition, individual offices have specific duties as follow: 1. President – The President has such powers and duties as the Board may designate from time to time and: a Chairs ICRMA Board meetings; b Unless otherwise specified, appoints the members of ICRMA committees; c Executes documents on behalf of ICRMA as authorized by the Board, or delegates this to the Executive Director; d Serves as the primary liaison between ICRMA and any other organization; e Serves on all committees; and f Appoints the Investment Delegate in accordance with Government Code §53607 and ICRMA’s Investment Policy. 123 As Approved 8/12/2021 *** ICRMA General Counsel reviewed and approved prior to Board vote. Page 9 of 15 2. Vice President – The Vice President serves as required in the President’s absence with all the attendant powers and duties. The Vice President also serves on all committees. The Vice President has such other powers and performs such other duties as the Board may designate. 3. Secretary – The Secretary is responsible for ICRMA minutes, notices and records as well as such other duties as the Board may assign. 4. Treasurer – The Treasurer: a Ensures ICRMA funds, accounts, and property, are maintained in accordance with the California Government Code; b Supervises the maintenance of such records to ensure they are in accordance with accepted accounting practices and procedures prescribed by the Government Accounting Standards Board (GASB); c Provides for inspection of all financial records; d Serves as Investment Delegate in accordance with Government Code §53607 and ICRMA’s Investment Policy; e Oversees, monitors and reports on investment action; and f Oversees and monitors the financial audit. C. Eligibility for Office – Any Director may serve as President, Vice President, Treasurer or Secretary, provided that NO Member has more than one representative in office at any time. D. Terms of Office – Officers serve two- (2)-year terms commencing with the start of the fiscal year unless otherwise specified. During said terms, officers serve until resignation or removal in accordance with Article VII.F of these Bylaws, whichever is earliest. E. Elections 1. Frequency & Timing – The Board holds annual elections in order to stagger officer terms. Elections generally occur at the last regular Board meeting of the fiscal year according to Board-approved procedure. 2. Nominations – The ICRMA Executive Director or their designee, or the Nominating Committee as needed or if deemed appropriate, solicits for and receives nominations and presents candidates for office to the Board at the last regular Board meeting of the fiscal year. Nominations may also be made at the time of the meeting, provided the candidate(s) meet the requirements set forth in these Bylaws or other ICRMA Governing Documents. 3. Determining the Outcome – Candidates receiving a majority of votes in each office succeed to those offices. If no nominee receives a majority vote, the nominee with the least votes will be deleted as a nominee and a new vote taken. This elimination process continues until one nominee receives a majority vote. If two or more nominees are tied with the least votes, then another vote will be taken immediately. If that does not eliminate a nominee, then the President eliminates one of the nominees with the least number of votes by way of a random process of his/her choosing (e.g., a coin flip). F. Vacancy 1. The President may select a Director to fill an officer vacancy. An officer so selected holds office until the next meeting of the Board, when the Board will vote on the appointment. 2. In the event the office of President becomes vacant, the Vice President assumes all duties and appoints a Vice President. Both officers hold office until the next meeting of the Board, when the Board will vote on the appointment. ARTICLE IX – COMMITTEES A. Formation 1. The Board may establish committees as deemed necessary to the work of ICRMA. 2. The President may appoint ad hoc committees at any time. B. Claims Committee 1. Authority a The Claims Committee has the responsibility and authority to perform all functions delegated to it by the Board and make all decisions affecting ICRMA Programs, provided that such functions and decisions are consistent with the powers of ICRMA and are not in conflict with ICRMA’s Governing Documents. b Specifically, the Committee is responsible for reviewing all aspects of each program, including, but not limited to: i Claims handling, review and settlement as provided herein; 124 As Approved 8/12/2021 *** ICRMA General Counsel reviewed and approved prior to Board vote. Page 10 of 15 ii Memoranda of Coverage; iii Litigation Management Procedures; iv Proposals for Claims Adjusters, Claims Auditors, and Legal Defense Services; v Negotiating and approving contracts within its scope, $50,000 or less, and within the approved budget; and vi Items referred by the Board. c Limitations i The Committee forwards recommendations to the Board for approval. ii Any claim above the Committee’s authority must be brought to the Board for approval. 2. Disputes Regarding Management of a Claim – Any claims settlement or arbitration decision made by the Claims Committee may be appealed. Such appeal shall be in accordance with the Memoranda of Coverage. 3. Composition & Appointment a The Claims Committee consists of twenty (20) to forty (40) percent of the Board up to a maximum of seven (7) members. b The Claims Committee recommends Directors to its available seats, making efforts to include: i A balanced mix of Members from each program, and ii At least one (1) individual working in each of the following: Risk Management, Finance, Legal, Human Resources, and Administration. c The Board approves Committee appointments ensuring that no Member holds more than one representative appointee to the Committee at any given time. d The Claims Committee members serve three- (3) year terms. e Anyone on the Claims Committee who was appointed by a Member that has announced its intent to withdraw from ICRMA loses her/his eligibility to serve on the committee following the December 1 deadline to rescind said notice. 4. Attendance – Claims Committee meeting attendance is essential to ICRMA business. A Claims Committee member missing two (2) meetings in a fiscal year shall be subject to Board review concerning forfeiture of his/her seat on the Committee. 5. Vacancies – The President may fill Committee vacancies by appointment. A committee member so selected serves until the next meeting of the Board, when the Board will vote on the appointment. 6. Meetings a Chair – The Claims Committee elects a Chair and Vice Chair from among its number. In the absence of or inability of the Chair to act, the Vice Chair acts as Chair. If either the Chair or Vice Chair ceases to be eligible to serve on the Committee, the Claims Committee will fill the resulting vacancy at its next meeting. b Frequency – The Claims Committee meets as required but not less than four (4) times a year. c Quorum – A majority of the appointees to the Claims Committee shall be quorum for the transaction of business. d Proxy – No proxies are allowed for Claims Committee business. C. Nominating Committee – The President periodically appoints three (3) to five (5) Directors to serve as Nominating Committee for the purpose of officer elections. ARTICLE X – ADMINISTRATION A. Executive Director – The Board appoints ICRMA’s Executive Director (referred to as “General Manager” in some ICRMA Governing Documents). The Executive Director is responsible for the daily administration, management, and operation of ICRMA and its programs subject to the direction and control of the Board and as clarified in ICRMA’s Governing Documents, relevant job descriptions and/or contracts. The Executive Director may, but need not be, an employee of ICRMA, a consultant, or a corporation contracted to serve. B. Legal Counsel – The Board approves legal counsel to advise on matters relating to the operation of ICRMA. ICRMA has the right to pay such legal counsel reasonable compensation for said services. 125 As Approved 8/12/2021 *** ICRMA General Counsel reviewed and approved prior to Board vote. Page 11 of 15 C. Authority to Contract – The Board may authorize the Executive Director, any officer, and/or agent, to enter into any contract or execute any instrument in the name and on behalf of ICRMA. Such authorization may be general or confined to specific instances. Unless so authorized by the Board, no officer, agent, or employee has any power or authority to bind ICRMA by any contract or to pledge its credit or to render it liable for any purpose or to any amount. D. Director & Officers Insurance – ICRMA may purchase insurance indemnifying the Directors, Officers, and Administrative staff for personal liabilities arising out of wrongful acts in the discharge of their duties to ICRMA or may elect to self-insure such risk. E. Claims Against ICRMA – Claims against ICRMA shall be presented to the mailing address of ICRMA. ARTICLE XI – COVERAGE PROGRAMS A. Purpose – ICRMA establishes programs of risk sharing, insurance, and risk management services in such areas as the Board may determine, including but not limited to property, workers' compensation, liability and benefits. The purpose in establishing each ICRMA Program is to create a method for providing coverage for legal exposures incurred by the Member and ICRMA, as provided in the related Memoranda of Coverage. B. Authority – ICRMA’s Programs have been organized under authority granted by, and shall be conducted in accordance with the laws of, the State of California and the standards set forth by the California Association of Joint Powers Authorities (CAJPA) in its accreditation standards. C. Bylaws – These Bylaws are applicable to all ICRMA programs as operationalized through ICRMA’s Governing Documents. The Agreement further requires Board approval of program Bylaws in order for each program to become operational with the full authority of ICRMA and the powers specifically delegated to it by the Board. The specific requirement of program Bylaws is met with passage of each program’s authorizing ICRMA Resolution and approval of its Memoranda of Coverage or relevant policies. D. Coverage Terms – Each ICRMA coverage program provides coverage under the terms and conditions set forth in its Memoranda of Coverage and/or related policy documents. The amount of coverage to be pooled and/or purchased is at the discretion of the Board. Although Programs are provided to the Members under those terms and conditions which prevail when the Member joins, ICRMA’s Board retains the right to alter the terms and conditions of the program in response to the needs and abilities of program participants, as well as in response to availability of coverage from outside sources. E. Participation – Any Member may apply to participate in an ICRMA program by complying with all requirements set forth in ICRMA’s Governing Documents then in effect and as subsequently modified. The Board may approve or disapprove the application consistent with ICRMA’s Governing Documents then in effect and as subsequently modified. If accepted, the Member shall commit to three (3) full years of participation in the program. Subsequently, the Member shall commit to at least one (1) full year of participation per renewal. F. Conflicting Representation – After being notified in writing that one Member of ICRMA has filed a formal claim, which could be reasonably construed to seek damages covered by a Memoranda of Coverage, against another Member, in accordance with provisions of the California Government Code, ICRMA will no longer act, on behalf of either Member with respect to such claim, without written consent from ALL members involved, insofar as the case giving rise to the claim is concerned. Any action that ICRMA may choose to take is without waiver of any provision or exclusion of any Memorandum of Coverage. G. Retained Limits – The Member shall pay the amount of each loss, including expenses, which is less than its retained limit. 1. ICRMA establishes the limit of coverage for each coverage program annually. The underlying coverage of the program provides Members retained limits per occurrence, or other limits modified by resolution. 2. If as Member wants to change its retained limit for the beginning of the following program year, it must request the change in writing no later than January 15 of the prior program year. 3. The Board may require a Member to have a retained limit different from the expiring program year, at the inception of a program year and upon written notice sent no later than January 15 of the prior program year. H. Excess Coverage – The Board shall ensure that each program year is provided with excess coverage for the participants of each program. It is the intent and purpose of ICRMA to continue to provide such coverage to the participants, provided that such coverage can be obtained, and the coverage is not unreasonably priced. This coverage may be obtained from an insurance company, by participating in another pool established under the Government Code as a joint powers authority, or offered through 126 As Approved 8/12/2021 *** ICRMA General Counsel reviewed and approved prior to Board vote. Page 12 of 15 another program pooling procedure. If the coverage is purchased from an insurance company, such insurance company shall have an A.M. Best Rating Classification of A- or better and an A.M. Best Financial Rating of VII or better or their equivalents. 1. ICRMA pays the premiums for such coverage from the proceeds received as annual contributions from its Members. 2. The Board may alter excess coverage based on insurance market conditions, available alternatives, costs, and other factors. 3. The Board places excess coverage with the competing objectives of security and minimizing cost to each program as a whole. I. Claims Procedures – The Board adopts claims policies and procedures including reporting procedures, forms, and other vital information that are provided to all program participants. All program participants are accountable for understanding and abiding by ICRMA’s Governing Documents then in effect and as subsequently modified. J. Claims Committee – The authority and function of the Claims Committee are as described in Article IX of these Bylaws. K. Liability and Workers’ Compensation Settlement Authority 1. Each Member has authority to settle any claim arising out of any one occurrence, as defined in the Memoranda of Coverage, which does not exceed the amount remaining of the Member’s Retained Limit, including attorney fees and other costs. The Claims Committee reviews these claims from time to time and may offer its recommendation to the Member’s Third Party Administrator (TPA) and the Member regarding settlement. 2. Authority to settle any claim, as defined in the Memoranda of Coverage, in excess of the Retained Limit of the Member involved, is as follows: a The Executive Director has authority up to $50,000 in excess of the Retained Limit; b The Claims Committee has authority up to $750,000 in excess of the Retained Limit; and c The Board, unless otherwise delegated, retains unto itself the authority to approve settlement of any other claim. L. Property Settlement Authority 1. Each Member has authority to settle any claim arising out of any one occurrence, as defined in the Memoranda of Coverage, which does not exceed 100% of the amount remaining of the Member Deductible. 2. Authority to settle any claim, as defined in the Memoranda of Coverage, in excess of the Member Deductible, is as follows: a The Third Party Administrator (TPA) has authority up to $50,000 in excess of the Member Deductible; and b The Executive Director has authority in excess of the TPA’s authority and up to the Self-Insured Retention. M. Auto Physical Damage Settlement Authority 1. Each Member has authority to settle any claims arising out of any one occurrence, as defined in the Memoranda of Coverage, which does not exceed 100% of the amount remaining of the Member Deductible. 2. Authority to settle any claim, as defined in the Memoranda of Coverage, in excess of the Member Deductible, is as follows: a The Third party Administrator (TPA) has authority up to the Self-Insured Retention. N. Liability and Workers’ Compensation Claims Audit 1. The adequacy of claims adjusting for both ICRMA and Members shall be examined at least once every two (2) years. 2. The examination shall be by an independent auditor who specializes in claims auditing. 3. The costs of such claims audit shall be paid by ICRMA. 4. The claims audit report shall address the issues of both adequacy of claims procedures and accuracy of claims data. The report shall be filed with ICRMA and sent to each Member. ARTICLE XII – DISPUTE RESOLUTION A. Defined – A “dispute” means complaint or disagreement relating to implementation of ICRMA Governing Documents, policies and procedures that cannot be resolved in the usual course of business despite the best efforts of both parties. This may include but is not limited to, the terms and conditions of membership, obligations of Members and ICRMA, interpretation or application of policies and procedures, and the performance of staff and ICRMA consultants. B. Scope – The purpose of this Article is to provide Members with a process to address conflicts or disagreements pertaining to membership issues, other than claim handling and coverage issues, in a neutral and expeditious manner by establishing standard procedures for their resolution. All claims and coverage related disputes should be addressed per the Memoranda of Coverage. 127 As Approved 8/12/2021 *** ICRMA General Counsel reviewed and approved prior to Board vote. Page 13 of 15 C. Procedure 1. Formal Request for Resolution a Submission – Members shall submit disputes to the ICRMA Executive Director in writing, clearly describing the dispute and related facts as well as efforts made to resolve the issue before going to the Board. b Processing – The Executive Director 1) acknowledges receipt, 2) refers the matter to the Board for consideration within ten (10) days of receipt of the written dispute, and 3) places the matter on the agenda for discussion at the next regularly scheduled meeting of the Board. If said meeting is more than sixty (60) days from the date the dispute was raised, a special meeting of the Board will be scheduled to discuss the dispute. c Resolution of Dispute i The Board will render a written decision to the Member within ten (10) days of the meeting. ii A dispute may be resolved at any stage of the proceedings, and that resolution will be final and binding. iii Likewise, the Member may withdraw a dispute at any stage in the procedure. d Penalties Stayed – Relevant surcharges, penalties and/or interest will not accrue during a dispute. 2. Presidential Request for Resolution – If the President perceives or has information that indicates a dispute pertaining to a membership issue exists; the President may initiate a dispute resolution procedure without written notice as required in a Formal Request for Resolution. 3. Time Limits – Time limits shall be strictly enforced. However, any time limits established in this policy, may be waived or extended by mutual agreement of both the Member and ICRMA, and confirmed in writing. ARTICLE XIII – FINANCIAL MATTERS A. Fiscal year – ICRMA’s fiscal year is the period from July 1 of each year through June 30 of the subsequent year. B. Budget – The Board adopts an annual budget by July 1 of each year, with receipt of a draft budget forty-five (45) days prior thereto. The Board has the authority to extend the deadline if it is unable to adopt a budget by July 1. C. Audit – The Board shall cause an annual audit of the financial accounts and records of ICRMA to be made by a qualified, independent individual or firm. The minimum requirements of the audit are those prescribed by California law. D. Board Compensation & Expenses – Directors may not receive compensation for their services. However, ICRMA will reimburse any Director or Officer, who does not otherwise receive compensation, for actual expenses incurred, and reasonable out of pocket expenses of the Director or Officer in the performance of his/her duty on behalf of ICRMA. E. General Administration of Funds – ICRMA offers participation in a risk sharing pool, covering losses of participants in accordance with the Agreement and the applicable Memorandum of Coverage. 1. The assets of the pooled program shall be maintained at all times as the assets of the participants collectively. 2. The assets may be disbursed only pursuant to the provisions of these Bylaws. 3. Members shall NOT have an individual right to exercise control over said assets except as provided in the Agreement. 4. ICRMA is responsible for the strict accountability of all funds and reports of all receipts and disbursements. 5. ICRMA shall comply with all relevant law, including California Government Code §6505. F. Program Accounting – The accounting method for each risk management program will be in accordance with the provisions of the Bylaws governing that program and Government Accounting Standards Board principles. 1. Funds received for each program shall be accounted for separately on a full-accrual basis. 2. Each program year shall be accounted for separately, unless the Board approves a multi-year program funding option. Specifically, the income and expenses of each program year shall be accounted for separately from any other program year's income or expenses. 3. A program year shall not be closed until such time that the Board authorizes closure, being convinced that known claims for the year are all closed and the probability of further claims being discovered is minimal. Any closed years MAY be reopened at any time if deemed necessary and approved by the Board. 4. An independent actuary shall test the condition of each self-insured risk management program of ICRMA on an annual basis. 128 As Approved 8/12/2021 *** ICRMA General Counsel reviewed and approved prior to Board vote. Page 14 of 15 The condition of each open program year within each such program shall be tested to determine its actuarial soundness. G. Annual Member Contribution – The Board shall approve the annual contribution amount for each Member entity as part of the approved annual budget. The Executive Director recommends rates for each program in conjunction with ICRMA’s actuary or other financial advisors, if deemed necessary. Each Member will be evaluated annually and their contribution amount shall be calculated according to an approved allocation formula or other guidelines approved by the Board. Billing will occur annually with due dates specified and failure to pay consequences as provided in the Bylaws or other ICRMA Governing Documents. H. Dividends 1. Definition – A dividend is a distribution or allocation of ICRMA funds to members for a given program year when that program year is determined by the Board to be eligible for a dividend distribution according to ICRMA’s Net Asset Policy as articulated in ICRMA’s Governing Documents. 2. Limitations a The Board may declare dividends ONLY when the conditions of ICRMA’s Net Asset Policy are met. b No such distribution or allocation may be considered to be a dividend unless expressly declared as such by the Board. c ICRMA may transfer funds between program years when the conditions of ICRMA’s Net Asset Policy are met. d Dividends are never required. Any declaration of a dividend will be at the discretion of the Board. e Dividends will be distributed in an equitable manner. Past members shall receive any distribution of dividends based on the same methodology as applied to the current members. I. Assessments 1. Definition – If the Board determines that a program lacks sufficient funds as described in ICRMA’s Net Asset Policy as articulated in ICRMA’s Governing Documents for a given program year or for the program as a whole, the Board may assess an amount deemed necessary and approved by the Board as sufficient to protect the net assets of the program. 2. Limitations a The Board may levy assessments when the conditions of ICRMA’s Net Asset Policy are met. b Assessments of participating Members, former or present, will be at the discretion of the Board. c Each Member’s share of the assessment shall be allocated based upon the method by which the annual contributions were collected for the risk-sharing layer of each program year being assessed. J. Deposit and Investment of Funds – The Treasurer may deposit and invest ICRMA funds, subject to the same requirements and restrictions that apply to the deposit and investment of the general funds of a City incorporated in the State of California and in accordance with ICRMA’s Investment Policy adopted by the Board annually. ARTICLE XIV – TERMINATION & DISTRIBUTION A. Termination – The Board’s authority to terminate a program or dissolve ICRMA is as described in Article VI.A of these Bylaws. B. Distribution of Assets – Upon termination of ICRMA, the assets and liabilities of ICRMA shall be distributed and apportioned among the Members that have been members in its programs, including those Members that previously withdrew or were expelled pursuant to these Bylaws, their predecessors or any other ICRMA Governing Documents in accordance with and proportionate to their contributions and assessments paid. The Board determines such distribution after the last pending claim or loss, covered by the program has been finally resolved and there is a reasonable expectation that no new claims will be filed. Any additional funds received after the above distributions are made shall be returned in proportion to the contributions made. C. Durability in Wind-down – The Agreement, these Bylaws, and ICRMA continue to exist after termination for the purpose of disposing of all claims, distribution of assets, and all other functions necessary to conclude the obligations and affairs of ICRMA. ARTICLE XV – TORT LIABILITY California Government Code §895.2 imposes certain tort liability jointly upon entities solely by reason of such entities being parties to an agreement as defined in §895 of said Code. Therefore, the members hereto, as between themselves, pursuant to the authorization contained in California Government Code §895.4 and 895.6, each assumes the full liability imposed upon it for any of its officers, agents, or employees by law for injuries caused by a negligent or wrongful act or omission occurring in the performance of this agreement, to the same extent that such liability would be imposed in the absence of §895.2 of said Code. To achieve this purpose, each Member indemnifies and holds all other members harmless for any loss, cost, or expense that may be imposed upon such other Member solely by virtue of California Government Code §895.2. 129 As Approved 8/12/2021 *** ICRMA General Counsel reviewed and approved prior to Board vote. Page 15 of 15 ARTICLE XVI – EFFECTIVE DATE & SUPERSESSION These Bylaws are effective immediately upon the date of approval unless specified otherwise for the purpose of avoiding conflicts among documents. Upon adoption they supersede prior Bylaws and/or amendments thereto. Adoption of these Bylaws shall not affect the Agreement. In the event that a provision in these Bylaws conflicts with the Agreement and/or Memoranda of Coverage the latter shall rule but only to the extent and duration of the conflict. ARTICLE XVII – AMENDMENTS The Board may amend or repeal these Bylaws as provided in Article VI.A of these Bylaws. Voting Directors will be given notice of intended amendment or repeal in advance of taking such action. 130 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0312 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 APPROVAL OF FOURTH AMENDMENT TO AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND THE HERMOSA BEACH CHAMBER OF COMMERCE AND VISITORS BUREAU TO PROVIDE FIESTA HERMOSAS (Community Resources Manager Lisa Nichols) Recommended Action: Staff recommends City Council: 1.Approve the proposed fourth amendment with the Hermosa Beach Chamber of Commerce and Visitors Bureau to allow for set-up of the Memorial Day 2022 event activities in the Community Center parking lot and on the beach on the south side of the Pier to begin the Thursday prior to the event and tear-down to conclude the Tuesday following the event;and with future requests for additional set-up and tear-down days at the sole discretion of the City; and 2.Authorize the Mayor to execute and the City Clerk to attest the fourth amendment subject to approval by the City Attorney (Attachment 9). Executive Summary: The Fiesta Hermosa events have evolved over the last 50 years since it began in 1968 with the events currently taking place on the Memorial Day and Labor Day weekends.The City has executed successive agreements with the Hermosa Beach Chamber of Commerce and Visitors Bureau (Chamber)to produce Fiesta Hermosa with a current agreement in place for Fiesta Hermosa events through 2022.The Chamber has requested an additional set-up day and tear-down day for the event activities in the Community Center parking lot and on the beach on the south side of the Pier beginning with the Fiesta Hermosa of Memorial Day 2022. Background: Fiesta de las Artes began in 1968 as a one-day Labor Day event on what is now Pier Plaza.This event has evolved over the last 50 years to a bi-annual event held on Saturday,Sunday,and Monday of each Memorial Day and Labor Day weekend.Since 1972,the City has executed successive agreements with the Chamber to produce Fiesta Hermosa. At its regular meeting on February 12,2019,City Council approved a three-year agreement with the City of Hermosa Beach Printed on 5/6/2022Page 1 of 4 powered by Legistar™131 Staff Report REPORT 22-0312 At its regular meeting on February 12,2019,City Council approved a three-year agreement with the Chamber to provide Fiesta Hermosa events through 2021 (Attachment 1).As a result of the COVID- 19 pandemic,the Fiesta Hermosa of Memorial Day 2020,Labor Day 2020,and Memorial Day 2021 were cancelled.At its regular meeting on May 13,2021,City Council approved the first amendment extending the agreement by one year to the end of 2022 (Attachment 2). At its regular meeting of June 22,2021,City Council approved a second amendment to the agreement to allow for event activities to take place Friday evening on a trial basis beginning with the Fiesta Hermosa of Labor Day 2021 (Attachment 3). At its regular meeting of April 12,2022,City Council approved a third amendment to the agreement to allow for event activities to take place in the Community Center parking lot and on the beach on the south side of the Pier beginning with the Fiesta Hermosa of Memorial Day 2022 (Attachment 4). Past Board, Commission, and Council Actions Meeting Date Description February 12, 2019 Approval of a three-year Agreement between the City of Hermosa Beach and the Hermosa Beach Chamber of Commerce and Visitors Bureau for Fiesta Hermosa events May 13, 2021 Approval of First Amendment to Agreement to extend the term by one year to 2022 June 22, 2021 Approval of Second Amendment to Agreement to allow for event activities on Friday evening on a trial basis beginning with Labor Day 2021 April 12, 2022 Approval of Third Amendment to Agreement to allow for event activities at the Community Center parking lot and on the beach on the south side of the Pier on a trial basis beginning with Memorial Day 2022 Discussion: The Chamber made a request to allow set-up of event activities in the Community Center parking lot and on the beach on the south side of the Pier to begin the Thursday prior to Memorial Day and for tear-down to extend through the Tuesday following Memorial Day for the Fiesta Hermosa of Memorial Day 2022.The request is due to vendor staffing shortages resulting in the concern that only permitting set-up to begin the Friday evening before Memorial Day,would not allow adequate time for the vendors’staff to complete the set-up needed for the event activities in the Community Center parking lot and on the beach on the south side of the Pier to begin on time.The events would be scheduled to begin the Saturday prior to Memorial Day,along with all the other Fiesta Hermosa of City of Hermosa Beach Printed on 5/6/2022Page 2 of 4 powered by Legistar™132 Staff Report REPORT 22-0312 scheduled to begin the Saturday prior to Memorial Day,along with all the other Fiesta Hermosa of Memorial Day 2022 event related activities throughout the City. The use of the Community Center parking lot would be for the carnival event Saturday through Monday,an event activity that previously took place in Lot A.The use of the beach on the south side of the Pier would be for a family friendly concert Saturday through Monday,an event that previously took place on Pier Plaza.Since these event locations have not previously been used for Fiesta Hermosa related activities,the request made by the Chamber would also allow for additional set-up and tear-down time for the vendors to respond to any adjustments that may need to be made in response to these activities taking place in new locations. The proposed amendment would allow the additional set-up and tear-down days requested in the Community Center parking lot and on the beach on the south side of the Pier on a trial basis for the Memorial Day 2022 event.If approved,the City shall have sole discretion to deny subsequent requests for additional set-up and tear-down days at these locations after the Memorial Day 2022 initial trial.All other terms and conditions would remain as stated in the original agreement.Included as Attachment 9 is the proposed fourth amendment with the Chamber to provide Fiesta Hermosa events. General Plan Consistency: This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Governance Element Goal 1. A high degree of transparency and integrity in the decision-making process. Policy: ·1.6 Long-term considerations.Prioritize decisions that provide long-term community benefit and discourage decisions that provide short-term community benefit but reduce long -term opportunities. Parks and Open Space Element Goal 3. Community parks and facilities encourage social activity and interaction. Policies: ·3.1 Community-friendly events.Encourage,permit,and support community group, nonprofit,or business organized events on City property that support physical activity, beach culture, and family-friendly social interactions. ·3.2 Social and cultural events.Design and program parks and open space to accommodate unique social and cultural events to foster connectedness and interaction. City of Hermosa Beach Printed on 5/6/2022Page 3 of 4 powered by Legistar™133 Staff Report REPORT 22-0312 Fiscal Impact: Event fees for 2022 would include direct costs associated with the necessary use of staff and other City resources based on details of each proposed event and a flat fee per vendor in lieu of individual vendors obtaining business licenses.Event revenue would be based on the terms included in the original agreement.The City will reimburse the Chamber for costs associated with the shuttle bus program at a not-to-exceed amount of $35,000 from Proposition A funds. Attachments: 1.Agreement with the Hermosa Beach Chamber of Commerce and Visitors Bureau 2.First Amendment to Agreement 3.Second Amendment to Agreement 4.Third Amendment to Agreement 5.Link to February 12, 2019 City Council Staff Report 6.Link to May 13, 2021 City Council Staff Report 7.Link to June 22, 2021 City Council Staff Report 8.Link to April 12, 2022 City Council Staff Report 9.Proposed Fourth Amendment to Agreement Respectfully Submitted by: Lisa Nichols, Community Resources Manager Concur: Angela Crespi, Deputy City Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 4 of 4 powered by Legistar™134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 FIRST AMENDMENT TO AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND THE HERMOSA BEACH CHAMBER OF COMMERCE TO PROVIDE FIESTAS HERMOSA THIS FIRST AMENDMENT TO AGREEMENT TO PROVIDE FIESTAS HERMOSA ("First Amendment") is made and entered into this 13th day of May 2021, by and between the City of Hermosa Beach, a municipal corporation ("City'') and Hermosa Beach Chamber of Commerce ("CHAMBER"). RECITALS A.City entered into an agreement with Chamber to provide Fiesta Hermosa ("Agreement") for a term of three years during the Saturday, Sunday and Monday of each Memorial Day and Labor Day Weekend in 2019, 2020, and 2021. B.As a result of the COVID-19 pandemic, the Fiestas of Memorial Day 2020, Labor Day 2020, and Memorial Day 2021 were cancelled and therefore, the parties mutually desire to extend the agreement for an additional year to provide for two Fiestas in 2022. NOW, THEREFORE, in consideration of the foregoing, the parties agree as follows: 1.Section 1.a is amended to read as follows: a.Fiestas. CHAMBER shall organize, coordinate, produce and oversee the Fiestas, open to the public, during the Saturday, Sunday and Monday of the Memorial Day and Labor Day Weekends in 2019, Labor Day Weekend only in 2021, and Memorial Day and Labor Day Weekends in 2022. The Fiestas shall be held in a location as mutually agreed upon between the CITY and CHAMBER. Except as modified above, the Agreement and each and every term and provision thereof remains in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment on the date and year first above written. HERMOSA BEACH CHAMBER OF COMMERCE President DocuSign Envelope ID: 4CF9E314-29AB-4D72-9D73-7F1058BE4CCE 151 CITY MANAGER, Suja Lowenthal APPROVED AS TO FORM: CITY ATTORNEY, Michael Jenkins ATTEST: CITY CLERK, Eduardo Sarmiento CITY OF HERMOSA BEACH DocuSign Envelope ID: 4CF9E314-29AB-4D72-9D73-7F1058BE4CCE 152 SECOND AMENDMENT TO AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND THE HERMOSA BEACH CHAMBER OF COMMERCE TO PROVIDE FIESTAS HERMOSA THIS SECOND AMENDMENT TO AGREEMENT TO PROVIDE FIESTAS HERMOSA ("Second Amendment") is made and entered into this 22nd day of June 2021, by and between the City of Hermosa Beach, a municipal corporation ("City'') and Hermosa Beach Chamber of Commerce ("CHAMBER"). RECITALS A. City entered into an agreement with Chamber to provide Fiesta Hermosa ("Agreement") for a term of three years during the Saturday, Sunday and Monday of each Memorial Day and Labor Day Weekend in 2019, 2020, and 2021. B. On May 13, 2021, the City Council and Chamber executed a first amendment to the Agreement to extend the agreement for an additional year to provide for two Fiestas in 2022. C. The City and Chamber now desire to amend the Agreement to allow event activities with a local focus and limited local advertisement on the Friday evening of Labor Day weekend 2021 on a trial basis with future activities on Friday to be at the sole discretion of the City. NOW, THEREFORE, in consideration of the foregoing, the parties agree as follows: 1. Section 1.a is amended to read as follows: a. Fiestas. CHAMBER shall organize, coordinate, produce and oversee the Fiestas, open to the public, during the Saturday, Sunday and Monday of the Memorial Day and Labor Day Weekends in 2019; Friday, Saturday, Sunday and Monday of the Labor Day Weekend only in 2021; and Saturday, Sunday and Monday, with the possibility of Friday evening at the sole discretion of the City, of the Memorial Day and Labor Day Weekends in 2022. The Fiestas shall be held in a location as mutually agreed upon between the CITY and CHAMBER. The addition of Friday activities is approved on a trial basis for Labor Day 2021 and is limited to evening hours only. Friday activities shall maintain a local focus by featuring local food and beverage establishments, limiting advertisement to the Hermosa only, and maintaining a family friendly atmosphere. Notwithstanding the agreement, the City shall have sole discretion to deny subsequent requests for Friday event activities after the initial trial for Labor Day 2021. Except as modified above, the Agreement and each and every term and provision thereof remains in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment on the date and year first above written. DocuSign Envelope ID: 2104C6D7-3492-4123-AF52-F907B2851C7B 153 HERMOSA BEACH CHAMBER OF COMMERCE President, APPROVED AS TO FORM: CITY ATTORNEY, Michael Jenkins CITY OF HERMOSA BEACH CITY MANAGER, Suja Lowenthal ATTEST: CITY CLERK, Eduardo Sarmiento DocuSign Envelope ID: 2104C6D7-3492-4123-AF52-F907B2851C7B 154 FOURTH AMENDMENT TO AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND THE HERMOSA BEACH CHAMBER OF COMMERCE TO PROVIDE FIESTAS HERMOSA THIS FOURTH AMENDMENT TO AGREEMENT TO PROVIDE FIESTAS HERMOSA ("Fourth Amendment") is made and entered into this 10th day of May 2022, by and between the City of Hermosa Beach, a municipal corporation ("City'') and Hermosa Beach Chamber of Commerce ("Chamber"). RECITALS A. City entered into an agreement with Chamber (“Agreement”) to provide Fiesta Hermosa ("Fiesta” or “Event") for a term of three years during the Saturday, Sunday and Monday of each Memorial Day and Labor Day Weekend in 2019, 2020, and 2021. B. On May 13, 2021, the City Council and Chamber executed a first amendment to the Agreement to extend the Agreement for an additional year to provide for two Fiestas in 2022. C. On June 22, 2021, the City and Chamber executed a second amendment to the Agreement to allow event activities with a local focus and limited local advertisement on the Friday evening of Labor Day weekend 2021 on a trial basis with future activities on Friday to be at the sole discretion of the City. D. On April 12, 2022, the City and Chamber executed a third amendment to the Agreement to allow specified event activities to take place in the Community Center parking lot (carnival) and on the beach on the south side of the Pier (concert) for the Memorial Day 2022 event with setup for these two activities to begin Friday evening. E. The City and Chamber now desire to amend the Agreement to allow for setup for the Memorial Day 2022 event activities to take place in the Community Center parking lot (carnival) and on the beach on the south side of the Pier (concert) to begin the Thursday prior to the event and tear-down of event related materials in relation to these specified event activities to conclude the Tuesday following the event. NOW, THEREFORE, in consideration of the foregoing, the parties agree as follows: 1. Section 1.a is amended to read as follows: a. Fiestas. CHAMBER may organize, coordinate, produce and oversee the Fiestas, open to the public, during the Saturday, Sunday and Monday of the Memorial Day and Labor Day Weekends in 2019; Friday, Saturday, Sunday and Monday of the Labor Day Weekend in 2021; Saturday, Sunday and Monday of the Memorial Day Weekend in 2022; and Saturday, Sunday and Monday, and potentially Friday evening at the sole discretion of the City for the Labor Day Weekend in 2022. The addition of Friday evening activities for the Labor Day 2022 Event is subject to approval of the City Council (which may be obtained without an amendment to this Agreement). Friday activities must maintain a local focus by featuring local food and beverage establishments, limiting advertisement to the Hermosa Beach community, and maintaining a family friendly atmosphere. The addition of event locations of the Community Center parking 155 lot for the carnival and the beach south of the Pier for a family friendly concert with setup for these activities beginning the Thursday prior to Memorial Day and teardown on the Tuesday following Memorial Day is approved on a trial basis for the Memorial Day 2022 Event. The activities and additional setup and teardown days in these locations at future Fiestas is at the sole discretion of the City. Except as modified above, the Agreement and each and every term and provision thereof, as amended, remains in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment on the date and year first above written. HERMOSA BEACH CHAMBER OF COMMERCE President APPROVED AS TO FORM: City Attorney, Michael Jenkins CITY OF HERMOSA BEACH City Manager, Suja Lowenthal ATTEST: City Clerk, Myra Maravilla 156 City Council Hybrid Meeting (Closed Session - 5:00 PM and Open Session - 6:00 PM) 05-10-22 17:00 Agenda Name Comments Support Oppose Neutral j. REPORT 22-0312 APPROVAL OF FOURTH AMENDMENT TO AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND THE HERMOSA BEACH CHAMBER OF COMMERCE AND VISITORS BUREAU TO PROVIDE FIESTA HERMOSAS (Community Resources Manager Lisa Nichols) 1 1 0 0 Sentiments for All Agenda Items The following graphs display sentiments for comments that have location data. Only locations of users who have commented will be shown. Overall Sentiment Agenda Item: eComments for j. REPORT 22-0312 APPROVAL OF FOURTH AMENDMENT TO AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND THE HERMOSA BEACH CHAMBER OF COMMERCE AND VISITORS BUREAU TO PROVIDE FIESTA HERMOSAS (Community Resources Manager Lisa Nichols) Overall Sentiment Dean francois Location: Submitted At: 11:26pm 05-09-22 I recommend adding to the proposed amendment that all development be ""in compliance with the CA Coastal Act ensuring that no commercial activity occurs on the beach west of the strand wall"". This is the first time the chamber will be managing beach concerts. Nowhere in the proposed amendment does it assure that the CA Coastal Act is followed. In fact any mention of a Coastal Commission approval or permit is not mentioned. 157 We would not be as concerned except for the fact that this city is very lax in its compliance with the Coastal Act. In past fiestas, commercial advertising signs have been placed on our beaches near the bike valet services without commission approval. We need to ensure that we do not go down that slippery slope as our beaches c0mercialztion of many money making activities is hard to control but must be protected., And the Coastal Commission would be very surprised if advertising signs, selling of services or merchandise ends up occurring at these concerts, suggesting that beach space is being rented out for profit. 158 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0283 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 APPROVAL OF ADDITIONAL 2022 IMPACT LEVEL III SPECIAL EVENTS INCLUDING: ASHER’S BASH AND RAINBOW DASH TO CURE CHILDHOOD CANCER (6/18); AND JERSEY MIKE’S USLA NATIONAL LIFEGUARD AND JUNIOR LIFEGUARD CHAMPIONSHIP (8/8-8/14) (Community Resources Manager Lisa Nichols) Recommended Action: Staff recommends City Council approve the Parks,Recreation and Community Resources Advisory Commission’s recommendation to include the following additional Impact Level III Special Events on the 2022 Special Event Calendar: 1.Asher’s Bash and Rainbow Dash to Cure Childhood Cancer on Saturday, June 18 on the Greenbelt between Gould Avenue and Pier Avenue and at Valley Park subject to the conditions imposed by the Parks, Recreation and Community Resources Advisory Commission; and 2.Jersey Mike’s USLA National Lifeguard and Junior Lifeguard Championship on Monday, August 8 through Sunday, August 14, in and out of the water north of the Pier with removal of the beach tennis courts. Executive Summary: The City of Hermosa Beach is a highly sought-after destination for special events,especially those taking place on the beach.The Community Resources Department is tasked with overseeing these event requests and permits following an extensive review and approval process that includes both the Parks,Recreation and Community Resources Advisory Commission (Commission)and City Council,depending on the Impact Level of each event.Impact Level III events,which are the largest impact events or new events to the City,require a Public Hearing by the Commission and City Council for formal approval on the Special Event Calendar. At its May 3,2022 meeting,the Commission,through a Public Hearing deliberation,recommended approval of the following additional Impact Level III events to the 2022 Special Events Calendar: ·Asher’s Bash and Rainbow Dash to Cure Childhood Cancer on Saturday,June 18 on the Greenbelt and at Valley Park; and City of Hermosa Beach Printed on 5/6/2022Page 1 of 7 powered by Legistar™159 Staff Report REPORT 22-0283 ·Jersey Mike’s USLA National Lifeguard and Junior Lifeguard Championship on Monday, August 8 through Sunday, August 14, in and out of the water north of the Pier with removal of the beach tennis courts. Background: In 2017,the Special Event Policy Guide was implemented,which outlined an updated approval process for special events consistent with each event’s categorized Impact Level.Impact Level III events,which are the largest impact events or new events to the City,require review and approval by City Council through Public Hearing deliberations.Impact Level II events require review and approval by the Commission,and Impact Level I events are approved by staff.Impact Level III events are given priority review and approval. Staff began accepting applications from all event producers interested in applying for 2022 event dates,regardless of their individual Impact Levels,on September 27,2021.Event producers with Impact Level III event requests were required to submit a special event application by October 24, 2021 to be included within the first round of review and approval of Impact Level III events by the Commission and City Council in December.Staff continues to accept applications from event producers after the initial due dates that meet the processing timeframe and requirements based on the event’s Impact Level as outlined in the Special Event Policy Guide. Staff received a total of two additional Impact Level III special event applications for 2022.The additional Impact Level III event requests recommended for approval are included on the 2022 Special Events Calendar (Attachment 1). Past Commission Actions Meeting Date Description December 7, 2021 Recommended approval of Impact Level III event requests to City Council January 4, 2022 Recommended approval of additional Impact Level III event requests to City Council March 1, 2022 Recommended approval of additional Impact Level III event requests to City Council May 3, 2022 Recommended approval of additional Impact Level III event requests to City Council Past Council Actions Meeting Date Description December 14, 2021 Approval of Impact Level III event requests January 11, 2022 Approval of additional Impact Level III event requests March 22, 2022 Approval of additional Impact Level III event requests City of Hermosa Beach Printed on 5/6/2022Page 2 of 7 powered by Legistar™160 Staff Report REPORT 22-0283 Past Council Actions Meeting Date Description December 14, 2021 Approval of Impact Level III event requests January 11, 2022 Approval of additional Impact Level III event requests March 22, 2022 Approval of additional Impact Level III event requests Discussion: A brief summary of each event request recommended for approval by the Commission is included below.Event overview sheets containing additional event details,estimated permit fees payable to the City, and a corresponding site plan for each event are included as attachments. Asher’s Bash and Rainbow Dash to Cure Childhood Cancer Northwestern Mutual and the Pediatric Cancer Research Foundation request to hold a fundraising event for the Asher Michael Johnston Fund on Saturday,June 18,2022.This is a new event request to the City.The event producer requests use of the Greenbelt between Gould Avenue and Pier Avenue for a community walk/run and Valley Park for community friendly activations such as a bounce house,mini-golf,face-painting,tie-dye station,and photobooth.The event producer would also have an information booth present at Valley Park to inform the community of the purpose of the event. The purpose of the event is to celebrate what would have been Asher Michael’s first birthday,a South Bay resident who was born and diagnosed with Rhabdomyosarcoma,a type of cancer,and to raise funds for the Pediatric Cancer Research Foundation in his honor.The Los Angeles County Fire Department would be present to guide event participants safely across the street between Valley Park and the Greenbelt. The event producer requested event load-in to begin at 6:30 a.m.on the day of the event to allow for certain event activities to begin at 8:00 a.m.At its May 3,2022 regular meeting,Commission recommended approval of the Asher’s Bash and Rainbow Dash to Cure Childhood Cancer under the condition that the event’s load-in time begin no earlier than 8:00 a.m.and that the City work with the event producer to ensure enough volunteers are present along the Greenbelt between Gould Avenue and Pier Avenue. The motion passed with a 2-1 vote. The Commission stipulated the later load-in out of concern that allowing a start-time earlier than 8:00 a.m.would impact the nearby residents and to remain consistent with past practice in permitting events or activities at Valley Park.Therefore,the event producers have adjusted their load-in time to 8:00 a.m.with certain event activities beginning at 9:30 a.m.Additionally,the event producer would have volunteers present along the Greenbelt between Pier Avenue and Gould Avenue to provide City of Hermosa Beach Printed on 5/6/2022Page 3 of 7 powered by Legistar™161 Staff Report REPORT 22-0283 have volunteers present along the Greenbelt between Pier Avenue and Gould Avenue to provide water to participants,to guide participants along the path,and to respond to any public inquiries about the event.Staff would work with the event producer to ensure the total number of volunteers is sufficient. The event date is concurrent with other events scheduled within the City;however,the events are planned for different locations and different times.Therefore,staff does not anticipate any conflicts. Additional event details are included in the Asher’s Bash and Rainbow Dash to Cure Childhood Cancer event overview sheet (Attachment 8).Estimated permit fees payable to the City are included in Table 1 below. Table 1: Asher’s Bash and Rainbow Dash to Cure Childhood Cancer Estimated Permit Fees Fee Cost Calculation Total Non-Profit Application Fee $616 - $616 Non-Profit Category I Fee $2 per participant $2 per participant x 500 participants $1,000 Amplified Sound Permit $181 - 181 Parking Fees $1.25/$1.50 per hour, per space TBD TBD $1,797 Jersey Mike’s USLA National Lifeguard and Junior Lifeguard Championship The LA County Surf Lifesaving Association (LACoSLSA)requests to hold the USLA National Lifeguard and Junior Lifeguard Championship on Wednesday,August 10 through Saturday,August 13 with load-in Monday,August 8 through Tuesday,August 9 and load-out Sunday,August 14. LACoSLSA requests to hold the event on the north side of the Pier,in and out of the water,with removal of the beach tennis courts. This event last took place in Hermosa Beach in 2016,prior to the adoption of the Special Event Policy Guide.Therefore,it is required to follow the review and approval process of a new event to the City.This event consists of swimming,running,board paddling,surf boat rowing,and surf ski paddling adult and junior competitions.The requested event dates are concurrent with other events City of Hermosa Beach Printed on 5/6/2022Page 4 of 7 powered by Legistar™162 Staff Report REPORT 22-0283 paddling adult and junior competitions.The requested event dates are concurrent with other events scheduled within the City.LACoSLSA has worked with the event producers of the International Surf Festival,Triathlon,and the CBVA Volleyball Tournament to address any conflicts between the events, all which also take place within the commercial zone on the beach during some of LACoSLSA’s requested event dates.Additional event details are included in the Jersey Mike’s USLA National Lifeguard and Junior Lifeguard Championship event overview sheet (Attachment 9).Estimated permit fees payable to the City are included in Table 2 below. Table 2: Jersey Mike’s USLA National Lifeguard and Junior Lifeguard Championship Estimated Permit Fees Fee Cost Calculation Total Non-Profit Application Fee $616 - $616 Category II Fee $2, 940 per event day $2,940 x 4 event days $11,760 Load-in $278 per load-in day $278 x 2 load-in days $556 Load-out $278 per load-out day $278 x 1 load-out day $278 Amplified Sound Permit $181 - $181 Parking Fees $1.25/$1.50 per hour, per space TBD TBD Co-Sponsors $311 per co-sponsor TBD TBD $13,391 The Special Events Policy Guide (Attachment 10)provides limits to the number of Special Events eligible for permitting within the City per calendar year.It allows a maximum number of 15 event days per month (outside of the Peak Season)and the following maximum number of event days on the Beach or Pier Plaza in the Peak Season, which extends between Memorial Day and Labor Day: ·Maximum of 30 event days used by Impact Level III events; ·Maximum of 40 event days used by Impact Level I and Impact II events,and CityCity of Hermosa Beach Printed on 5/6/2022Page 5 of 7 powered by Legistar™163 Staff Report REPORT 22-0283 ·Maximum of 40 event days used by Impact Level I and Impact II events,and City Sponsored/Contracted Events (on days not used by Impact Level III events); and ·Events under a Long-Term Agreement are categorized by their Impact Level. These guidelines allow a total of 70 event days throughout the Peak Season on the Beach or Pier Plaza.If City Council approves the Jersey Mike’s USLA National Lifeguard and Junior Lifeguard Championship,it would exceed the maximum of 30 event days used by Impact Level III events, providing a total of 57 event days used by Impact Level III events.However,the total amount of event days would be 61 out of the allotted 70 event days throughout the Peak Season for events on the Beach or Pier Plaza. The maximum number of event days allotted for Impact Level III events during the Peak Season on the Beach or Pier Plaza does not provide enough event days to accommodate all returning Impact Level III events on the Beach or Pier Plaza.In addition,it does not allow staff to accept and move forward with consideration by Commission and City Council of any new event requests on the Beach or Pier Plaza in the Peak Season without further exceeding the maximum number of event days allotted for Impact Level III events at those locations during the Peak season.Any new event request to the City is categorized as an Impact Level III event.Therefore,staff and the Special Events Subcommittee will review the Special Event Policy Guide,including the Impact Level Characteristics Matrix,to provide recommendations in advance of the upcoming calendar year in response to the maximum total number of event days allotted for Impact Level III events on the Beach or Pier Plaza during the Peak Season being exceeded. General Plan Consistency: This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Governance Element Goal 5. Small beach town character is reflected throughout Hermosa Beach. Policy: •5.7 Visitor and resident balance.Recognizing the desire and need to balance visitor-serving and local-serving uses as a key to preserving character and the economic vitality of the community. Parks and Open Space Element Goal 3. Community parks and facilities encourage social activity and interaction. Policies: •3.1 Community-friendly events.Encourage,permit,and support community group,nonprofit, or business organized events on City property that support physical activity,beach culture,and City of Hermosa Beach Printed on 5/6/2022Page 6 of 7 powered by Legistar™164 Staff Report REPORT 22-0283 or business organized events on City property that support physical activity,beach culture,and family-friendly social interactions. •3.2 Social and cultural events.Design and program parks and open space to accommodate unique social and cultural events to foster connectedness and interaction. •3.3 Commercial use of facilities.Regulate and enforce commercial use of City parks and open spaces to ensure activities do not impact general use and enjoyment. Goal 7.The beach offers high quality recreational opportunities and amenities desired by the community. Policies: •7.3 Recreational asset.Consider and treat the beach as a recreational asset and never as a commercial enterprise. •7.5 Designated recreational uses.Continually evaluate and explore devoting certain portions of the beach to different preferred recreational uses while providing access for all users and meeting the recreation needs of visitors and residents. Fiscal Impact: If approved, estimated event revenue would be approximately $15,188. Attachments: 1.2022 Special Event Calendar 2.Link to December 7, 2021 Commission Staff Report 3.Link to January 4, 2022 Commission Staff Report 4.Link to March 1, 2022 Commission Staff Report 5.Link to May 3, 2022 Commission Staff Report 6.Link to December 14, 2021 City Council Staff Report 7.Link to January 11, 2022 City Council Staff Report 8.Asher’s Bash and Rainbow Dash to Cure Childhood Cancer Event Overview Sheet 9.Jersey Mike’s USLA National Lifeguard and Junior Lifeguard Championship Event Overview Sheet Respectfully Submitted by: Lisa Nichols, Community Resources Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 7 of 7 powered by Legistar™165 TENTATIVE 2022 SPECIAL EVENTS CALENDAR City of Hermosa Beach Community Resources Department 710 Pier Avenue, Hermosa Beach, CA 90254 (310) 318-0280 hbconnect@hermosabeach.gov 166 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 AAU Southern Grand Prix Series North Volleyball Courts 18 19 20 21 22 SCVA BRQ Winter Series North Volleyball Courts & Beach Tennis Courts 23 24 25 26 27 28 29 AAU Southern Grand Prix Series North Volleyball Courts 30 31 JANUARY 2022 Impact Level I Impact Level II Impact Level III Long Term Agreement City Hosted or City Contracted Event 167 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 AAU Southern Grand Prix Series North Volleyball Courts 6 7 8 9 10 11 CBVA North Volleyball Courts 12 SCVA BRQ Winter Series North Volleyball Courts & Beach Tennis Courts 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 AAU Southern Grand Prix Series North Volleyball Courts 28 FEBRUARY 2022 Impact Level I Impact Level II Impact Level III Long Term Agreement City Hosted or City Contracted Event 168 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 HBLL Opening Day Clark Field Beach Tennis Tournament Beach Tennis Courts 6 Beach Tennis Tournament Beach Tennis Courts 7 8 9 10 11 12 St. Patrick’s Day Parade Downtown 13 AAU Southern Grand Prix Series North Volleyball Courts 14 15 16 17 18 19 20 21 22 23 24 25 26 27 CBVA North Volleyball Courts 28 29 30 31 MARCH 2022 Impact Level I Impact Level II Impact Level III Long Term Agreement City Hosted or City Contracted Event 169 Sun Mon Tue Wed Thu Fri Sat 1 2 AAU Southern Grand Prix Series North Volleyball Courts 3 4 5 6 7 8 Beach Tennis Tournament Beach Tennis Courts (Load-in) 9 Beach Tennis Tournament Beach Tennis Courts 10 AAU Southern Grand Prix Series North Volleyball Courts 11 12 13 14 15 16 CBVA North Volleyball Courts 17 Easter Sunrise Mass South of Pier 18 19 20 21 22 Surfer’s Walk of Fame Kick- off Party Community Theatre 23 The Subaru Pacific South Bay Series South of Pier Surfer’s Walk of Fame Spyder Surf Fest 24 AAU Southern Grand Prix Series North Volleyball Courts 25 26 27 28 29 30 State of the Art Cypress Avenue & 6th Street HVPTO’s Dolphin Dash Strand - North of Pier, & Schumacher Plaza Sidewalk Sale Various Locations Downtown HBLL Night at the Ballpark Clark Field APRIL 2022 Impact Level I Impact Level II Impact Level III Long Term Agreement City Hosted or City Contracted Event 170 Sun Mon Tue Wed Thu Fri Sat 1 AAU Southern Grand Prix Series North Volleyball Courts Sidewalk Sale Various Locations Downtown 2 3 4 5 6 Hearts of Hermosa Community Center (Load-in) 7 Hearts of Hermosa Community Center Pets in the Park Valley Park Endless Summer Classic Car Show Pier Plaza 8 Hearts of Hermosa Community Center (Load-out) AAU Southern Grand Prix Series 9 10 11 12 13 14 CBVA North Volleyball Courts 15 CBVA North Volleyball Courts 16 17 18 19 20 21 Best Day Foundation Beach Day South of Pier AAU Southern Grand Prix Series North Volleyball Courts 22 Best Day Foundation Beach Day South of Pier 23 24 25 26 27 Fine Arts Festival Community Center Lawn (Load-in) Fiesta Hermosa Downtown (Load-in) 28 Fine Arts Festival Community Center Lawn CBVA North Volleyball Courts Fiesta Hermosa Downtown 29 Fine Arts Festival Community Center Lawn CBVA North Volleyball Courts Fiesta Hermosa Downtown 30 Fine Arts Festival Community Center Lawn CBVA North Volleyball Courts Fiesta Hermosa Downtown 31 MAY 2022 Impact Level I Impact Level II Impact Level III Long Term Agreement City Hosted or City Contracted Event 171 Sun Mon Tue Wed Thu Fri Sat 1 2 3 Beach Tennis Tournament Beach Tennis Courts (Load-in) 4 Beach Tennis Tournament Beach Tennis Courts South Bay Paddle South of Pier 5 Beach Tennis Tournament Beach Tennis Courts HBLL Closing Day Clark Field 6 7 8 9 10 11 12 13 14 15 16 17 18 DB Events North Volleyball Courts Asher’s Bash & Rainbow Dash to Cure Childhood Cancer Greenbelt & Valley Park 19 U19 World Championship & World University Championship Trials North Volleyball Courts (Load-in) 20 U19 World Championship & World University Championship Trials North Volleyball Courts 21 U19 World Championship & World University Championship Trials North Volleyball Courts 22 U19 World Championship & World University Championship Trials North Volleyball Courts 23 U19 World Championship & World University Championship Trials North Volleyball Courts 24 25 Nothing Weekend 26 Nothing Weekend 27 28 29 AVP North & South Volleyball Courts (Load-in) 30 AVP North & South Volleyball Courts (Load-in) JUNE 2022 Impact Level I Impact Level II Impact Level III Long Term Agreement City Hosted or City Contracted Event 172 Sun Mon Tue Wed Thu Fri Sat 1 AVP Volleyball Courts - North & South of Pier & Beach Tennis Courts (Load-in) 2 AVP Volleyball Courts - North & South of Pier & Beach Tennis Courts (Load-in) 3 AVP Volleyball Courts - North & South of Pier & Beach Tennis Courts (Load-in) 4 AVP Volleyball Courts - North & South of Pier & Beach Tennis Courts (Load-in) 5 AVP Volleyball Courts - North & South of Pier & Beach Tennis Courts 6 AVP Volleyball Courts - North & South of Pier & Beach Tennis Courts 7 AVP Volleyball Courts - North & South of Pier & Beach Tennis Courts 8 AVP Volleyball Courts - North & South of Pier & Beach Tennis Courts 9 AVP Volleyball Courts - North & South of Pier & Beach Tennis Courts 10 AVP Volleyball Courts - North & South of Pier & Beach Tennis Courts 11 AVP Volleyball Courts - North & South of Pier & Beach Tennis Courts (Load-out) 12 AVP Volleyball Courts - North & South of Pier & Beach Tennis Courts (Load-out) 13 AVP Volleyball Courts - North & South of Pier & Beach Tennis Courts (Load-out) Shakespeare by the Sea Valley Park 14 JVA/BVCA National Championships Volleyball Courts - North & South of Pier & Beach Tennis Courts (Load-in) Shakespeare by the Sea Valley Park 15 JVA/BVCA National Championships Volleyball Courts - North & South of Pier & Beach Tennis Courts 16 JVA/BVCA National Championships Volleyball Courts - North & South of Pier & Beach Tennis Courts 17 JVA/BVCA National Championships Volleyball Courts - North & South of Pier & Beach Tennis Courts 18 JVA/BVCA National Championships Volleyball Courts - North & South of Pier & Beach Tennis Courts 19 JVA/BVCA National Championships Volleyball Courts - North & South of Pier & Beach Tennis Courts 20 AAU Junior National Girls’ Championships Volleyball Courts - North & South of Pier (Load-in) 21 AAU Junior National Girls’ Championships Volleyball Courts - North & South of Pier 22 AAU Junior National Girls’ Championships Volleyball Courts - North & South of Pier 23 AAU Junior National Girls’ Championships Volleyball Courts - North & South of Pier 24 AAU Junior National Girls’ Championships Volleyball Courts - North & South of Pier 25 West Coast AAU Junior Olympic Games Volleyball Courts - North & South of Pier 26 West Coast AAU Junior Olympic Games Volleyball Courts - North & South of Pier 27 West Coast AAU Junior Olympic Games Volleyball Courts - North & South of Pier 28 West Coast AAU Junior Olympic Games Volleyball Courts - North & South of Pier 29 West Coast AAU Junior Olympic Games Volleyball Courts - North & South of Pier (Load-out) 30 Smackfest South Volleyball Courts 31 JULY 2022 Impact Level I Impact Level II Impact Level III Long Term Agreement City Hosted or City Contracted Event 173 Sun Mon Tue Wed Thu Fri Sat 1 2 3 International Surf Festival North & South of Pier (Load-in) 4 International Surf Festival North & South of Pier (Load-in) 5 International Surf Festival North & South of Pier 6 International Surf Festival North & South of Pier & North Volleyball Courts (CBVA) Sidewalk Sale Various Locations Downtown 7 International Surf Festival North & South of Pier Sidewalk Sale Various Locations Downtown 8 International Surf Festival North & South of Pier (Load-out) Jersey Mike’s USLA National Lifeguard & Junior Lifeguard Championship North of Pier, & Beach Tennis Courts (Load-in) 9 Jersey Mike’s USLA National Lifeguard & Junior Lifeguard Championship North of Pier & Beach Tennis Courts (Load-in) 10 Jersey Mike’s USLA National Lifeguard & Junior Lifeguard Championship North of Pier & Beach Tennis Courts 11 Jersey Mike’s USLA National Lifeguard & Junior Lifeguard Championship North of Pier & Beach Tennis Courts 12 Triathlon Strand, Pier Plaza, South of Pier, & North of Pier (Load-in) Jersey Mike’s USLA National Lifeguard & Junior Lifeguard Championship North of Pier & Beach Tennis Courts 13 Triathlon Strand, Pier Plaza, South of Pier, & North of Pier (Load-in) CBVA North Volleyball Courts Good World Peace Festival South of Pier Jersey Mike’s USLA National Lifeguard & Junior Lifeguard Championship North of Pier & Beach Tennis Courts 14 Triathlon Strand, Pier Plaza, South of Pier, & North of Pier CBVA North Volleyball Courts Jersey Mike’s USLA National Lifeguard & Junior Lifeguard Championship North of Pier & Beach Tennis Courts (Load-out) 15 16 17 18 19 20 Nothing Weekend 21 Nothing Weekend 22 23 24 25 26 Beach Tennis Tournament Beach Tennis Courts (Load-in) 27 Beach Tennis Tournament Beach Tennis Courts Glow Ride for Cystic Fibrosis Strand - North of Pier 28 CBVA North Volleyball Courts 29 30 31 AUGUST 2022 Impact Level I Impact Level II Impact Level III Long Term Agreement City Hosted or City Contracted Event 174 Sun Mon Tue Wed Thu Fri Sat 1 2 Fiesta Hermosa Downtown (Load-in) 3 CBVA North Volleyball Courts Fiesta Hermosa Downtown 4 CBVA North Volleyball Courts Fiesta Hermosa Downtown 5 Fiesta Hermosa Downtown 6 7 8 9 Movies at the Beach South of Pier (Load-in) 10 Movies at the Beach South of Pier Best Day Foundation Beach Day 11 Best Day Foundation Beach Day South of Pier 12 13 14 15 16 Beach Tennis Tournament Beach Tennis Courts (Load-in) 17 Coastal Cleanup Day Pier Hermosa Harmony Festival South of Pier Beach Tennis Tournament Beach Tennis Courts 18 Beach Tennis Tournament Beach Tennis Courts Hope Chapel Family Picnic Valley Park 19 20 21 22 23 Movies at the Beach South of Pier (Load-in) 24 Movies at the Beach South of Pier 25 26 27 28 29 30 SEPTEMBER 2022 Impact Level I Impact Level II Impact Level III Long Term Agreement City Hosted or City Contracted Event 175 Sun Mon Tue Wed Thu Fri Sat 1 AAU Southern Grand Prix Series North Volleyball Courts Walk to End Alzheimer’s Strand - North of Pier & Pier Plaza Hermosa Harmony Festival South of Pier 2 3 4 5 6 7 8 Pumpkins in the Park Edith Rodway Park AAU Southern Grand Prix Series North Volleyball Courts 9 10 11 12 13 14 Beach Tennis Tournament Beach Tennis Courts (Load-in) 15 Beach Tennis Tournament Beach Tennis Courts 16 Beach Tennis Tournament Beach Tennis Courts 17 18 19 20 21 22 Volley4Sound North Volleyball Courts 23 24 25 26 27 28 Beach Tennis Tournament Beach Tennis Courts (Load-in) 29 Beach Tennis Tournament Beach Tennis Courts 30 Beach Tennis Tournament Beach Tennis Courts Skechers Pier to Pier Friendship Walk Strand - North of Pier & Pier Plaza 31 OCTOBER 2022 Impact Level I Impact Level II Impact Level III Long Term Agreement City Hosted or City Contracted Event 176 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 Sandy Saute North of Pier 6 AAU Southern Grand Prix Series North Volleyball Courts 7 8 9 10 11 Veterans Day Wreath Laying Ceremony & “Veterans Are Timeless” Campaign Community Center 12 13 14 15 16 17 18 19 AAU Southern Grand Prix Series North Volleyball Courts 20 Tree Lighting Ceremony Pier Plaza 21 22 23 24 25 26 27 28 29 30 NOVEMBER 2022 Impact Level I Impact Level II Impact Level III Long Term Agreement City Hosted or City Contracted Event 177 Sun Mon Tue Wed Thu Fri Sat 1 2 3 Sand Snowman Contest North of Pier SCVA BNQ Championships North Volleyball Courts 4 AAU Southern Grand Prix Series North Volleyball Courts 5 6 7 8 9 10 California Great Santa Stroll Strand - North of Pier & Pier Plaza 11 AAU Southern Grand Prix Series North Volleyball Courts 12 13 14 15 16 17 18 Community Menorah Lighting Pier Plaza & Greenwood Park 19 20 21 22 23 24 25 26 27 28 29 30 31 New Years Eve Celebration Pier Plaza DECEMBER 2022 Impact Level I Impact Level II Impact Level III Long Term Agreement City Hosted or City Contracted Event 178 Off-Season Monthly Events (Labor Day – Memorial Day) # of Special Event Days # of Days Available (out of 15) January 3 12 February 4 11 March 5 10 April 10 5 May (through May 29) 11 4 September (from September 6) 8 7 October 9 6 November 5 10 December 6 9 Peak Season (Memorial Day: May 30, 2022 – Labor Day: September 5, 2022) # of Special Event Days (Beach/Pier Plaza Events) Level I & II Event Days (not on Level III Event Days) & City Sponsored/Contracted (not on Level III, II or I Event Days) (Maximum of 40) Level III Event Days (Maximum of 30) Total # of Event Days (out of 70 total) 4 57 61 Peak Season Event Limits: To balance coastal access with beach events, the beach/Pier Plaza area will be limited to the following number of events during the peak summer season (Memorial Day to Labor Day – approximately 100 days over the summer): o Maximum of 30 days used by Level III Events o Maximum of 40 days used by Level I and II Events, and City Sponsored/Contracted Events (on days not used by Level III Events) Events under a Long Term Agreement will be categorized by their Impact Level 179 1 2022 City of Hermosa Beach Special Event Permit Application Overview Event Title: Asher’s Bash and Rainbow Dash to Cure Childhood Cancer Impact Level: III Proposed Event Date(s): Saturday, June 18, 2022 Applicant Name: Heather Johnston Organization Name: Northwestern Mutual and Pediatric Cancer Research Foundation Non-Profit: NO/YES Event Time: Valley Park: Load-in: 8:00am-9:30am, Check-in: 9:30am for Greenbelt Walk/Run, Greenbelt Walk/Run: 10:30am- 11:30am, and Valley Park Event Activities: 11:00am-2:30pm. Event load-out from Valley Park completed by 4:00pm Event Summary: A walk/run and community event with local businesses, bounce house and information booths with proceeds going to the Asher Michael Johnson Fund (Please see attached for more information) Returning Event: NO/YES Event Location (Site Map Attached): Greenbelt (Pier Avenue to Gould Avenue) and Valley Park Estimated Number of Participants per Day: Maximum of 150 participants for the Greenbelt Walk/Run. Maximum of 400 participants for Valley Park activities. Estimated Number of Spectators per Day: N/A Age of Participants: All Ages Participant Fee: $25 per adult, $20 per child for Greenbelt Walk/Run and Valley Park event activities. $15 per person for those interested in participating just in the Valley Park event activities Parking: Yes – A total of 10 parking spots within the parking lot next to Kiwanis and Rotary buildings to accommodate portable restrooms, loading and unloading, and shuttle drop off (shuttle from Mira Costa High School and Journey of Faith) Amplified Sound: Yes, for DJ and announcements Generator(s): Yes (two), one for DJ, one for photobooth/bounce house Fenced Area(s): None Stage(s), Structure(s) or Tent(s): Yes, small stage for DJ Security: None. Volunteers will assist with event activities and with guiding participants throughout the Greenbelt and will be identified with yellow t-shirts noting they are volunteers. Additionally, the LA County Fire Department will be present to safely cross the walk/run participants across the street from Valley Park to Gould Avenue and vice-versa. Sponsor(s): Yes Applicable Fees: Application (Non-Profit) $616 Category I (Non-Profit) $2 per participant with a roster of participants Amplified Sound $181 Parking TBD Co-Sponsor Fees TBD *Additional fees may apply due to required staffing and/or services from the City of Hermosa Beach’s Police Department, Building Division, Public Works Department and the Los Angeles County Fire Department 180 Asher had a powerful impact on our lives and this world during the short time he walked this earth. It is our mission to carry out Ashy’s legacy and we know he will continue to change the world in insurmountable ways from heaven. The Johnston’s have chosen to partner with Pediatric Cancer Research Foundation. PCRF is dedicated to identifying and investing in leading-edge research that demonstrates the best hope for a cure of childhood cancer. These funds will target emerging and breakthrough opportunities so that the babies of the future have hope and a full life. Asher Michael JohnstonAsher Michael Johnston Please join Asher and us on this journey to make a change for our worlds most vulnerable and their futures. 181 182 183 1 2022 City of Hermosa Beach Special Event Permit Application Overview Event Title: Jersey Mike’s USLA National Lifeguard and Junior Lifeguard Championship Impact Level: III Proposed Event Date(s): Wednesday, August 10 – Saturday, August 13 with load-in Monday, August 8 – Tuesday, August 9 and load- out Sunday, August 14 Applicant Name: Charlotte Graham Organization Name: LA County Surf Lifesaving Association Non-Profit: NO/YES Event Time: 8:00am-5:00pm, with load-in 10:00am-4:00pm on Monday, August 8 and 7:00am - 5:00pm on Tuesday, August 9, and load-out 4:00pm to 9:00pm on Saturday, August 13 and 10:00am-12:00pm on Sunday, August 14 Event Summary: Swimming, running, board paddling, surf boat rowing, and surf ski padding adult and junior competitions. Returning Event: NO/YES This event took place in 2016 most recently, which was before the adoption of the Special Events Policy Guide, therefore, this event is required to be treated as a new event to the City Event Location (Site Map Attached): North of the Pier (in and out of the water) with Impact to the Beach Tennis Courts Estimated Number of Participants per Day: Up to 600 per event day Estimated Number of Spectators per Day: Up to 200 per event day Age of Participants: All Ages Participant Fee: Estimated to be $75 for 18 and under and $110 for adults Parking: Yes Amplified Sound: Yes, for announcements and background music Generator(s): Yes Fenced Area(s): Yes, around the event equipment area only Stage(s), Structure(s) or Tent(s): Yes, 2 stages for event announcers and tents for officials, awards, athlete needs, event coordination, first aid, etc. Security: Yes Sponsor(s): Yes Applicable Fees: Application (Non-Profit) $616 Category II $2,940 x 4 event days = $11,760 Event Load-in $278 x 2 load-in days = $556 Event Load-out $278 x 1 load-out day = $278 Amplified Sound $181 Parking TBD Co-Sponsors TBD *Additional fees may apply due to required staffing and/or services from the City of Hermosa Beach’s Police Department, Building Division, Public Works Department and the Los Angeles County Fire Department 184 185 HERMOSA BEACH SPECIAL EVENTS POLICY GUIDE 186 1 This policy guide has been developed to clarify and carry out the City’s mission statement related to special events that occur on outdoor public spaces within the community. Cover Image: Hermosa Beach Murals Project - John Van Hamersveld Mission Statement Hermosa Beach strives to offer a safe and enjoyable environment for special events to take place in a way that balances resident and visitor needs. Special events in Hermosa Beach are celebrated for being community-friendly, enhancing local beach culture, and offering a myriad of benefits to the local community. The City of Hermosa Beach* works collaboratively with event operators in an efficient and clear manner to process and carry out permits in compliance with this policy. * “City of Hermosa Beach” collectively refers to City staff, Parks, Recreation and Community Resources Advisory Commission, City Manager, and City Council. City Contact Information The City of Hermosa Beach Department of Community Resources is available to assist and answer any questions related to the special events process: Website: www.hermosabeach.gov Phone: (310) 318-0280 Email: hbconnect@hermosabeach.gov Address: 710 Pier Avenue, Hermosa Beach, CA 90254 187 2 Table of Contents General Information + Frequently Asked Questions.......................................................................................3 When is a special events permit required? How do I apply for a special events permit? Are private events allowed? What is the “Nothing Weekend”? How will this policy be enforced? Where are special events allowed? Use Classification + Impact Characteristics……………………………………………….…...…………………5 Impact Characteristics Matrix Pass-Through Events Pier Plaza Promotions Approval Guidelines + Requirements……………………………………………………………………….…….5 Event Approval Findings Application Submittal Deadlines and Approval Process Peak Season Event Limits Simultaneous Use of North and South Volleyball Courts Pre/Post Event Meetings Accessibility Plan Site Plan, Equipment, and Signage Amplified Sound Food, Beverage, or Merchandise Sales Professional Filming Security Insurance Event Day Expectations Applicable Fees…………………………………………………………………………………….……………9 Current Fee Schedule Application Fees Special Events Permit Fee Additional Fees Damage Deposit Refund/Cancellation Policy Compliance…...…………………………………………………………………………………………...……11 Environmental Requirements Applicable Codes + Regulations Fee Waivers…...…………………………………………………………………………….…………...………12 Funding Limits Eligibility Approval Obligations Disqualification Long-term Agreements………………………………………………………………………………..…………13 Eligibility Term Limits Procedures Obligations 188 3 General Information + Frequently Asked Questions When is a special events permit required? Any organized event, activity, celebration, or function involving the use of the beach at which one hundred (100) or more persons are to be assembled, or use of outdoor city facilities, rights-of-way, or parkland at which twenty-five (25) or more persons are to be assembled requires a special events permit. Additionally, special events permits shall be required for any commercial or non-profit group requesting use of any outdoor area or public facility within the city. How do I apply for a special events permit? Applications for special events must be submitted using the online form on the City of Hermosa Beach website and questions may be directed toward the Department of Community Resources. Are private events allowed? All events located on the beach within the commercial zone, the Pier, or Pier Plaza must be open to spectators/general public free of charge. Participant entry fees are permissible. What is the “Nothing Weekend”? On at least one weekend during each summer season, the Parks, Recreation and Community Resources Advisory Commission will recommend that no special events permits be issued. This means that any application for a special events permit that coincides with the designated “Nothing Weekend” will be asked to change dates in order for their event to be considered. How will this policy be enforced? The special events policy will be strictly enforced by Community Resources Department staff, Code Enforcement Officers, and the Police Department. Events, either permitted or unpermitted, found to be violating the City's rules or failing to comply with any of the requirements of the Hermosa Beach Municipal Code may be subject to penalties or fines. Special events, and any of its participants, vendors, or spectators, found to have caused damage or be in violation of any City rules may be subject to greater deposits, regulation, or restrictions when submitting special events applications in the future. Where are special events allowed? To ensure adequate space and resources are available, and to limit potential disturbances to residents, s pecial events are limited to the following locations: • South of Pier (Adjacent to the commercial area on the beach (between 10th Street and the pier); • North of the Pier (Adjacent to the commercial area on the beach (between the pier and 15th Street • Designated Surf Zone • Along The Strand (only allowed for races or events that are continuously moving); • Pier Plaza • Within a public right of way (please note that any event, race, or block party within the public right of way is subject to approval by the Chief of Police); • The following City Parks and Facilities o Valley Park: Corner of Gould and Valley Drive o Community Center: 710 Pier Avenue o Clark Field: 861 Valley Drive o Greenwood Park: PCH & Aviation o Edith Rodaway Park: Prospect & Hollowell Ave o The Greenbelt Events on the beach outside of the commercial area (between 10th and 15th Street) are not permitted. 189 4 Beach Special Event Boundaries 190 5 Use Classifications + Impact Characteristics Special events are evaluated based on a number of factors and will be categorized as a level I, II, or III event based on the information provided in the special events application. Once the information is submitted and reviewed by the Community Resources Department, City staff will determine the impact level of the event using the impact characteristics matrix. The impact level of the event will be used to determine: o applicable fees; o timing of application submittal; o requirements for pre event meeting and post event walk through; and o level of review for approval (City staff, Commission or City Council) Impact Characteristics Matrix If more than one option is applicable, the highest characteristic will be used to determine the impact level. Characteristic Impact Level I Impact Level II Impact Level III Attendees and spectators total 100-500 501 – 1,999 2,000 or more Event has previously occurred in Hermosa Beach 3 or more years 1 or 2 years New event Event location(s) a park or the beach Pier or Pier Plaza Streets, the Strand, or public right of way Event season(s) Winter Spring or Fall Summer Event day(s) Monday - Thursday Friday, Saturday, or Sunday Holiday Total event days per year (including set-up and tear- down) 1-2 3-4 5 or more Events per year 1-2 3-4 5 or more Additional requests such as filming, reserved parking, fencing, stage, street closures, or amplified sound None 1-2 3 or more Impact Level 5 or more applicable = Impact Level I 2 or more applicable = Impact Level II 2 or more applicable = Impact Level III Pass-Through Events A pass-through event is exactly what the name implies, the event participants pass through the City of Hermosa Beach and the event does not start or end in Hermosa Beach. A special events application is required to be submitted and pass-through events must also go through the approval process required based on the impact level assigned to the event. Pier Plaza Promotions The Pier Plaza Promotion option is designed to provide companies or event sponsors a one-day promotional opportunity on Pier Plaza subject to a Pier Plaza use fee. These events must be strictly commercial product or service promotions and not special events. Companies or sponsors who request approval for this use will be required to submit a special events application. Approval Guidelines + Requirements Event Approval Findings A special events permit may be issued upon finding that: 1. The applicant reimburses the City for all costs incurred by the City in connection with the event, including public safety, traffic control and monitoring. 191 6 2. The number of estimated attendees can be accommodated at the proposed location and surrounding area. 3. The applicant is capable and qualified to manage the event in a competent, professional manner in accordance with all conditions of approval. 4. Adequate provision has been made for satellite parking, shuttle transportation and traffic control (as requested and determined by City staff). 5. Adequate provision has been made for security, crowd control, ingress and egress, and clean-up. 6. The total number of days required for the event shall not exceed sixteen consecutive days. 7. The applicant provides required insurance, deposits, bonding and indemnification of the City. Application Submittal Deadlines and Approval Process Special Events Applications must be submitted as follows: • Level III events: Must be submitted no later than July 30 for the following calendar year. Will be subject to a public hearing by both the Parks and Recreation Commission and the City Council. Upon recommendation for approval by the Parks, Recreation and Community Resources Advisory Commission and approval by City Council, permits will be processed and issued by the Community Resources Manager. Applicants who do not meet the July 30 deadline, must submit an application at least ninety (90) days in advance of the event for consideration on a case-by-case basis. o New events: Please note, any events that are new to Hermosa Beach will need to follow the approval process for impact level III events. • Level II events: Must be submitted at least ninety (90) days in advance of the event, but no earlier than October 15 of the prior calendar year. Upon Parks, Recreation and Community Resources Advisory Commission approval, the Community Resources Manager may process and issue permits. Should the Parks, Recreation and Community Resources Advisory Commission recommend denial of a Special Event, that decision may be appealed to the City Council. • Level I events: Must be submitted at least thirty (30) days, but no earlier than October 15 of the prior calendar year. Level I events will be reviewed and permits will be issued by the Community Resources Manager. Should the Community Resources recommend denial of a Special Event, that decision may be appealed to the City Council. o Pier Plaza Promotions: Review and approval of Pier Plaza Promotion events will follow the same approval process as Level I events. The Parks, Recreation and Community Resources Advisory Commission and City Council will evaluate and recommend approval of Level III events and a “Nothing Weekend” first, and then will consider approval of Level II events. Events submitted earliest will be given priority for their preferred dates. Review Timeline Application Period Opens Last Day to Submit Application Commission Review City Council Review Level I October 15 (for following calendar year) 30 days prior to event n/a n/a Level II October 15 (for following calendar year) 90 days prior to event Beginning in December n/a Level III/ New Events July 1 (for following calendar year) July 30 (for following calendar year) September Meeting – Public Hearing October Meeting – Public Hearing At the discretion of the Community Resources Manager, special events applications may be submitted for consideration after the application submittal deadline has passed, provided: • there are unforeseeable circumstances (memorial service, team victory celebration, need for minimal marketing/advertising) • the event does not exceed Peak Season Event Limits • the event can still meet all of the event approval findings (as noted on Page 9) The Community Resources Manager and the City’s Special Events Team will participate in the review and approval of event applicants submitted after the deadline has passed. The Parks, Recreation and Community 192 7 Resources Advisory Commission and City Council will receive an update on the status of events submitted after the deadlines. City staff will provide both a calendar of all upcoming special events and a brief event wrap -up summary for special events to the Parks, Recreation and Community Resources Advisory Commission and City Council (if required). Event organizers are expected to be present at the Parks, Recreation and Community Resources Advisory Commission and City Council meetings (if required) where their event is scheduled to be reviewed. Peak Season Event Limits To balance coastal access with beach events, the beach/Pier Plaza area will be limited to the following number of events during the peak summer season (Memorial Day to Labor Day – approximately 100 days over the summer): o Maximum of 30 days used by Level III Events o Maximum of 40 days used by Level I and II Events, and City Sponsored/Contracted Events events (on days not used by Level III Events) o Events under a Long Term Agreement will be categorized by their Impact Level Additionally, the monthly number of event limits for off-peak season (Labor Day to Memorial Day) will be limited to a maximum of 15 days used by events per month. Simultaneous Use of North and South Volleyball Courts One side of the North and South of Pier Volleyball courts will be required to remain open for general public use during special events occurring on weekends (exception provided for events that occur at the same time as City-sponsored classes utilizing the North or South of Pier Volleyball Courts) or at the discretion of the Par ks, Recreation and Community Resources Advisory Commission and the City Council. Pre/Post Event Meetings Pre-event meetings and post-event walkthrough/evaluations with City staff and event producers may be required. A “pre-event meeting” may be scheduled anytime between 3 months to several weeks prior to the actual event date as determined by City staff. The goal of this meeting is to provide information to any and all City departments involved or impacted by your event. The Community Resources Department may require any event to have an “on-site meeting” prior to the event and a final site map must be presented at this time. City staff may require multiple meetings if the event details require further discussion or if additional information is requested. First-time events that expect to be recurring events may also be required to attend a “post-event meeting.” The Community Resources Department will invite representatives from other City Departments to these meetings if who may be involved or affected by your event. Permits may also specify a time for a “post-event walkthrough” where he applicant, event coordinator, or another authorized representative of the applicant is required to be present during the “post-event walkthrough” inspection, as staff will walk through the site and assess the condition it was left in. Failure to participate in pre or post meeting events, may jeopardize your approved event or future events in Hermosa Beach. Site Plan, Equipment, and Signage A detailed map schematic must be submitted to move forward with the review and approval process that includes the proposed location of the event, including all temporary facilities/structures/signage/equipment to be erected, ingress and egress, number and type of vehicles and whether existing structures/facilities are to be relocated or modified. Events requiring Building, Police, or Fire Department review, must include maps and plans that are drawn to scale. All recreational activities and set-up of recreational equipment should remain at least 50 feet from the Strand wall. Special considerations may be made for permitted and approved recreational events or activities by the City, Commission and/or City Council. Additionally, all recreational activities and set-up shall not block beach access or hinder emergency access onto and from the beach by the Los Angeles County Lifeguards. This includes temporary volleyball courts and temporary beach tennis courts. All tents must remain at least 10 feet from the Strand wall. 193 8 A parking plan showing the number of public parking spaces to be occupied by the event organizers, the location of satellite parking lots to be used for attendee parking, arrangements for shuttle bus transportation, and plans for publicizing the availability of off-site public parking may also be required. Events that set up bleachers, stages higher than 2’ off the ground, fencing or other temporary structures will be subject to review and inspection by the City Building Official prior to the start of the event. Accessibility compliance will be required for seating, bleachers or any stages higher than 2’ off the ground. Pedestrian access shall be maintained, and a layout plan may be required to ensure proper access and circulation. Events including promotional signs/banners, a frame signs, and other signage items shall not be placed o n City facilities or premises without prior written approval from the City and must include a temporary sign/banner permit and site plan. Accessibility Plan It is the applicant’s responsibility to comply with all City, County, State and Federal disability access requirements applicable to the event, including the American with Disabilities Act (ADA). All indoor and outdoor sites, activities and programs must be accessible to persons with disabilities. Amplified Sound Amplified sound (Public Address system for announcements, etc.) is limited to the hours of 10:00 AM to 9:00 PM for up to a total of four hours in any day. Exceptions may be approved for special events, in conjunction with the Special Event approval. Events must comply with the City Noise Ordinance HBMC 8.24 and speakers must be facing westward (towards the ocean) at all times. Event producers are required to obtain an Amplified Sound Permit if the event intends to use a loudspeaker or sound amplifying equipment for the purpose of giving instructions, directions, lectures, or transmitting music. Requests should be noted when submitting a special events application to the Community Resources Department to ensure proper coordination with the Chief of Police. The Chief of Police will consider the following in the issuance of amplified sound permits: 1. The volume and intensity of the noise, particularly as it is experienced within a residence or place of business; 2. Whether the noise is prolonged and continuous; 3. How the noise contrasts with the ambient noise level; 4. The proximity of the noise source to residential and commercial uses; 5. The time of day; and 6. The anticipated duration of the noise Food, Beverage, or Merchandise Sales In accordance with HBMC Section 12.20.300, the sale of food, non -alcoholic beverages, or branded merchandise from the event producer on the beach are allowed pursuant to a special events permit approved by the City Council. The sale of any other commodity, merchandise, wares, products, or service on the beach or the strand is not allowed. Applicant is responsible for obtaining any applicable food or beverage permits. A Temporary Food Permit is required when selling, serving, giving away, or sampling food or consumable products, including water or other beverages, at a public event. Additionally, each food vendor at the event must also have a Temporary Food Permit. Different permits, policies and procedures depend on the classification and the number of days of the event. As part of the food handling requirements, applicants or event organizers are required to include public safety features in the event plans such as hand-washing sinks. The County of Los Angeles Department of Environmental Health issues food permits. It is the responsibility of the applicant to ensure all vendors have current permits. If the sale of alcohol is included in a special event application (requests for alcohol on the beach will not be approved), approval from the City Council is required and the applicant must request authorization from the State of California Department of Alcohol Beverage Control (ABC). A copy of the ABC License must be provided to the Community Resources Department prior to the issuance of a permit. City departments may place restrictions on the way in which alcohol is managed at a proposed event. Professional Filming A Film Permit Application is required for any event utilizing professiona l filming equipment or recording activities resulting in commercial use. Information about professional filming permits can be obtained on the City of Hermosa Beach website. 194 9 Security City staff or law enforcement may deem an activity warrants the presence of one or more Police Officers or security personnel and the cost of such services shall be borne by the applicant. Security personnel must be licensed, in uniform and are subject to approval by the City. Proof of obtaining the required security personnel must be provided to the Community Resources Manager at least two (2) weeks prior to the event. Portable Restrooms + Hand Sanitizing/Sink Facilities Events may be required to provide portable restrooms and hand-sanitizing/sink facilities. The cost of such services shall be borne by the applicant. The number of portable restrooms and hand-sanitizing/sink facilities required will be determined by City staff and factors such as the event location, total duration of the event, estimated attendance (participants and spectators), season the event takes place and whether food and beverage will be served will be considered. City staff will designate the location for any portable restrooms and hand-sanitizing/sink facilities required at the event location. Insurance At least ten (10) days prior to the event, applicants will provide the City with a certificate of insurance providing liability insurance with the following requirements: Applicant agrees to furnish the City of Hermosa Beach evidence of comprehensive general liability insurance in the form of a certificate naming "the City of Hermosa Beach, its officers, agents, volunteers, and employees as additional insureds." This exact verbiage is required. Applicant shall notify the City at least thirty (30) days prior to the termination, reduction, cancellation, suspension, modification, or expiration of the policy. Notwithstanding the foregoing, Applicant shall maintain insurance coverage meeting the standards outlined in this Section at all times during the term of the activity or activities for which Applicant submitted its application, as reflected in and permitted by this Agreement. All certificates are subject to approval of the City’s Risk Manager. Coverage shall be at least as broad as Insurance Services Form CG 00 01 covering commercial general liability on an "occurrence" basis, including property damage, bodily injury, death, and personal and advertising injury with limits no less than two million dollars ($2,000,000) per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this Agreement, or the general aggregate limit shall be twice the required occurrence limit. The City reserves the right to request greater or lesser amounts of insurance coverage. If the use includes athletic activities, Applicant shall provide evidence of that the commercial general liability insurance includes coverage for injuries to athletic participants and participant accident insurance. If the Applicant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. Event Day Expectations In order to immediately address any issues or changes that may arise during the course of an event, producers are responsible for: • Providing a cell phone number upon which City staff may contact the producer • Being available on-site or providing a designated contact at all times during the event. This includes agreement that producers (or their designated contact) will not actively participate in the event. • Maintaining copies of all applicable special events permits and any other permits issued by the City of Hermosa Beach on-site during the event. Applicable Fees All special events are subject to an application fee, special event category fees and additional fees established by resolution of the City Council and any additional costs incurred by the City on behalf of the event. Payment of special event fees is due upon receipt. The Community Resources Manager has the discretion to revoke a permit or place a hold on processing future event applications if all ap plicable fees are not paid in a timely manner. 195 10 Current Fee Schedule Event Categories Fee Category I • Less than 500 people Non-profit: $2 per registrant and roster or participants due to City Commercial: 70/30 split of proceeds and roster or participants due to City Category II • Impacts public areas for no longer than one (1) day including set-up/tear-down • Is conducted in the off-season (not between Memorial Day and Labor Day or on any holiday) • Participant plus spectator crowd more than 500 but less than 3,000 • Has no television coverage (except news) • A non-profit entity is the beneficiary of the net revenues (100%) • Does not meet any of the identifying criteria for a Category III or IV event $2,940 per event day Category III • Impacts public areas for more than one (1) day including set-up/tear-down • Participant plus Spectator crowd does not exceed 5,000 • Has no television coverage (except news) • Has more than $3,000 and less than $50,000 in prize money • Does not meet any of the identifying criteria for a Category IV event $3,235 per event day Category IV • Meets Category III Criteria and has one or more of the following: ▪ Has network television coverage ▪ Estimated participant/spectator crowds exceed 5,000 people ▪ Prize money in excess of $50,000 ▪ Charges admission to spectator ▪ Gross revenues in excess of $50,000 $5,882 per event day Additional Fees Fees Commercial Application Fee - non-refundable $924 Non-Profit Application Fee - non-refundable $616 Pass-Thru Application Fee - non-refundable $308 Amplified Sound Permit $181 Pier Plaza Use Fee $12,312 per event day Event Co-Sponsor $311 each Event Set-Up/Tear-Down $278 per location, per day Community Resources Staff $369 per day Parking Meter Space Fee $1.25 per hour (8am-8pm) $1.50 per hour (8pm-8am) Depending on event details additional fees may apply due to required staffing and/or services from the City of Hermosa Beach’s Building Division, Police Department, Public Works Department and the Los Angeles County Fire Department. 196 11 Application Fees Upon review of the special events application, City staff will follow up to the event contact to collect payment of the application fee, which will be due immediately to continue the review and approval process. This fee will not be applied to special events permit fees and is non-refundable. Special Events Permit Fees Events are subject to a daily permit fee based on the designated event category level. Payment of applicable special event permit fees shall be due following event approval and must be submitted at least 10 days in advance of the scheduled event. Additional Fees The Community Resources Department will confirm the necessary permits during application review and will coordinate with applicants to secure permits and process fees from the appropriate City departments once the Special Event is approved by the appropriate review body. Additional fees may be required for: • the use of Pier Plaza and reservation of City Facilities • installation of street banners or temporary signs • reservation/use of public parking spaces • use of amplified sound • use of professional filming or still photography • presence of police, fire, community resources, or paramedic staff on site before, during or after event • application for business license Damage Deposit Monetary deposits, bonds and other security may be necessary to guarantee performance of all required conditions, clean-up and repair of any City property or facilities damaged as a result of the event. Events may be required to submit a deposit to cover any potential damage to City facilities. All or a portion of the deposit may be refunded upon post event inspection or sign -off by Public Works, Chief of Police, or other applicable City staff. Events will be billed for the costs to repair or replace any City property damaged as a result of the event if the damage exceeds the deposit provided. Refund/Cancellation Policy Once a permit is approved and issued, the special events permit and additional impact fees may be refunded when written notice is given to the Community Resources Department at least two weeks prior to the event date and provided that no staff services are incurred. If rain is predicted and the decision is made to cancel within two weeks prior to the event, no monetary refund will be given but City staff will work with event producers to re-schedule events to another available date. Compliance Environmental Requirements All events will be required to submit an environmental protection plan showing proposed compliance to reduce environmental impacts as part of the application form. Such measures may include, but shall not be limited to: • Waste recycling and reduction • Energy efficiency • Protection of the marine environment • Community education opportunities • Monitoring and reporting compliance with the environmental protection plan Applicable Codes + Regulations The City of Hermosa Beach Municipal Code governs the approval, review, and enforcement of Special Events. The Special Event Policy rules and regulations must be strictly adhered to and all pertinent City Ordinances shall be enforced. The sections of the Hermosa Beach Municipal Code relevant to Special Events include: Title 8 – Health and Safety 8.24 Noise Control - http://www.codepublishing.com/CA/HermosaBeach/#!/HermosaBeach08/HermosaBeach0824.html 8.64 Ban on Polystyrene Food Service Ware – 197 12 http://www.codepublishing.com/CA/HermosaBeach/#!/HermosaBeach08/HermosaBeach0864.html#8.64 Title 9 – Public Peace Morals and Welfare 9.28 Parties, Events and Gatherings on Private Property http://www.codepublishing.com/CA/HermosaBeach/#!/HermosaBeach09/HermosaBeach0928.html#9.28 Title 10 – Vehicles and Traffic 10.28 Loading and Unloading http://www.codepublishing.com/CA/HermosaBeach/#!/HermosaBeach10/HermosaBeach1028.html#10.28 10.32 Stopping, Standing and Parking http://www.codepublishing.com/CA/HermosaBeach/#!/HermosaBeach10/HermosaBeach1032.html#10.32 Title 12 Street, Sidewalks and Public Places 12.20 Beach and Strand Regulations http://www.codepublishing.com/CA/HermosaBeach/#!/HermosaBeach12/HermosaBeach1220.html#12.20 12.24 Municipal Pier http://www.codepublishing.com/CA/HermosaBeach/#!/HermosaBeach12/HermosaBeach1224.html#12.24 12.28 Parks, Playgrounds and Other Public Areas http://www.codepublishing.com/CA/HermosaBeach/#!/HermosaBeach12/HermosaBeach1228.html#12.28 Fee Waivers To support qualifying organizations, the City provides special event fee waiver grant opportunities to assist in its success by relieving the financial burden associated with the cost of the City’s special event fees. The Special Event Fee Waiver Grant Policy is intended for those events required to complete the annual application filing, review, and approval process. Events and organizations that qualify for a long -term agreement are not bound to the terms of this policy. Funding Limits The Parks, Recreation and Community Resources Advisory Commission (“Commission”) awards grant funding for qualified organizations that have received approval to hold their event in the City of Hermosa Beach. The annual award limit of the Special Event Fee Waiver Grant is approved by the City Council each fall for the upcoming calendar year. Grants will be awarded up to a maximum of $2,500 per event or a 50% reduction of indirect City special event fees, whichever is the lesser amount. Awards may only be used toward indirect special event fees charged by the City; direct costs (i.e. application processing fee, inspections, staff time, Police or Fire services, etc.) are not eligible for consideration of this grant and organizations are required to pay those in full. A fee worksh eet is included in the Fee Waiver Grant Application that further outlines those fees eligible under this grant. The minimum amount of requested special event fee waiver grants must total at least $250. Fee waivers will not be considered for events taking p lace between Memorial Day and Labor Day (peak season). Eligibility In order to be eligible to apply for a Special Event Fee Waiver Grant, the special event must have been successfully approved through its applicable approval process as outlined in the Spe cial Event Policy Guide. Following approval of a special event, a completed Special Event Fee Waiver Grant Application is required to be submitted to the Community Resources Department at least 60 days prior to the event. Following a review to ensure the completeness of the application, the request will be included on an upcoming meeting of the Commission for its formal review and determination of grant award. 198 13 Fee waivers may be granted when the Commission determines that the event is of significant value to the community or to a significant portion of its residents and provides a measurable community benefit. In addition, the organization producing the event must meet at least 1 (one) of the following criteria: 1) An organization that has a demonstrated community benefit to Hermosa Beach. 2) Hermosa Beach business that is not delinquent on city permits or fees. 3) Organizations that are producing returning events to the City of Hermosa Beach and can demonstrate: a. A community benefit (must complete the Community Benefit form); or b. A positive economic impact as a result of the event (must complete the Economic Impact Report with previous years’ event details). Activities specifically prohibited from receiving a fee waiver grant include those events that: • Promote, advocate or advance a political message or belief. • Projects or organizations who have unsatisfactorily fulfilled its obligations from previous Special Event Fee Waiver Grant awards. Approval The five (5) member Commission is tasked with reviewing and determining the level of Special Event Fee Waiver Grant award at one of their regular meetings held on the first Tuesday of each month beginning at 7:00pm. Consideration will include careful review of: • Special Event Fee Waiver Grant Application. • Community Benefit Form (if required). • Economic Impact Report (if required). • Successful fulfillment of previously awarded grant obligations. In addition, the Commission will consider the following evaluation criteria: • Whether the event serves, involves, and/or promotes Hermosa Beach, its residents, schools, and/or businesses. • Whether the event delivers substantive and measurable economic and community benefits to the City. • Whether the event enhances the quality of life to the Hermosa Beach community; offering recreational, cultural, social, and or and/or educational activities of interest to the community. The Commission’s decision to deny grant funding for specific events is appealable by the City Council. Th e City Council will not consider additional fee waiver considerations in addition to the maximum award amounts allowable through the Special Event Fee Waiver Grant program. Obligations Organization receiving grant funding through the Special Event Fee Waiver Grant program will be required to complete the following: • Submission of a Grant Final Report within 30-days following the event. • A formal presentation to the Parks, Recreation and Community Resources Advisory Commission at one of its regular meetings no more than 60-days following the event. The presentation shall include discussion of: o Number of attendees. o Beneficiary of funds raised by the event (if applicable). o Overview of event budget and financial outlook. Disqualification Failure to complete these requirements in accordance with this policy shall automatically disqualify the organization from submitting a future request to receive a Special Event Fee Waiver Grant for the remainder of the current calendar year plus one additional year. If any information submitted as part of the Special Event Fee Waiver Grant is found to be fraudulent, event approvals already granted for the remainder of the calendar year will be automatically revoked. While the organization will be permitted to reapply for app roval of event(s) in the following calendar year, it will no longer be eligible to apply for Special Event Fee Waiver Grants. Long-term Agreements 199 14 The City of Hermosa Beach recognizes the value in hosting a variety of beloved community events that help create a balanced and enjoyable events calendar for its residents. To support and develop a long - term approach to the scheduling of events, eligible events can qualify for a long-term agreement (LTA) with the City. Eligibility In order for an organization to be eligible for consideration of a long-term agreement, its event(s) must satisfactorily meet at least three of the following: □ The event(s) must qualify as an Impact Level II or III (per the Impact Worksheet), and at least one of the following: o Have a combined estimated total of 5,000 people in attendance; or o The event must be at least two (2) consecutive days (including setup and teardown). □ Have held its event in Hermosa Beach for at least three consecutive years and can demonstrate a positive and differentiated impact to the city including substantive and measurable economic and community benefits; □ The event must be produced by an organization that serves, involves, and/or promotes Hermosa Beach’s coastal lifestyle, its residents, schools, and/or businesses; and □ The organization or event producer must be able to demonstrate how its programs (outside of those provided at the event) provide a positive impact to the City including enhancements to quality of life to the Hermosa Beach community; or the offering of recreational, cultural, social, and/or educational activities of interest to the community. Upon request of an organization whose event does not satisfy one or more of the above eligibility criteria, the City Council may at a regular Council meeting authorize such organization to apply for an LTA where its event provides a demonstrable or differentiated benefit to the community or a servi ce that the City would otherwise be unable to provide. Term Limits LTA’s shall be for no less than two (2) years but shall not exceed a maximum of three (3) years unless otherwise determined by the City Council. Procedures The following steps are required to guide the development and implementation of an LTA: 1. Submittal of an LTA Application and corresponding letter to the Community Resources Department explaining the organization’s qualifications (as outlined above). 2. Review and recommendation for City Council approval by the Parks, Recreation and Community Resources Advisory Commission (Commission). 3. Review and approval by the City Council to begin LTA negotiations with Staff. 4. LTA negotiations and development. 5. Presentation of the final LTA to the City Council for approval. Obligations Organizations whose event(s) are approved through an LTA are required to provide a formal presentation to the Commission at one of its regular monthly meetings no more than 60 -days prior AND 60-days following its event(s). The pre-event presentation shall include a general event overview including anticipated number of attendees; an overview of the event footprint and individualized setup; and its anticipated impact(s) to the community, etc. The post-event presentation shall include a general overview including the actual number of attendees; actual impact(s) to the community; and any event struggles and successes, etc. 200 201 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0293 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 ADOPTION OF AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA, ADOPTING A MILITARY USE EQUIPMENT POLICY, IN ACCORDANCE WITH ASSEMBLY BILL 481 (City Clerk Myra Maravilla) Recommended Action: Staff recommends City Council waive the full second reading and adopt by title an ordinance of the City of Hermosa Beach adopting a military use equipment policy in accordance with Assembly Bill 481 (Attachment 1), and direct staff to publish a summary ordinance (Attachment 2). Executive Summary: At its April 26,2022 meeting,City Council introduced and waived first reading of an ordinance adopting a military use equipment policy pursuant to Assembly Bill 481 (AB 481).The proposed text would comply with the requirements of AB 481 to increase transparency,accountability,and oversight surrounding the use and acquisition of military equipment by state and local law enforcement. Background: AB 481 was enacted to increase transparency,accountability,and oversight surrounding the use and acquisition of military equipment by state and local law enforcement.The legislation requires law enforcement agencies to obtain approval from the legislative bodies that oversee them before purchasing,raising funds for,or acquiring military equipment,by any means.Law enforcement agencies are also required to obtain approval from their legislative bodies before collaborating with another law enforcement agency in the deployment or use of military equipment within the law enforcement agency’s jurisdiction,or before using any new or existing military equipment not previously approved. Under AB 481,a governing body approval must take the form of an ordinance adopting a publicly released,written military equipment use policy,which must address a number of specific topics, including the type,quantity,capabilities,purposes,and authorized uses of each type of military equipment;the fiscal impact of their acquisition and use;the legal and procedural rules that govern their use;the training required by any officer allowed to use them;the mechanisms in place to ensure City of Hermosa Beach Printed on 5/6/2022Page 1 of 4 powered by Legistar™202 Staff Report REPORT 22-0293 their use;the training required by any officer allowed to use them;the mechanisms in place to ensure policy compliance; and the procedures by which the public may register complaints. The governing body must consider a proposed military equipment use policy in open session and may only approve a military equipment use policy if it makes various specific findings regarding the necessity of the military equipment and the lack of reasonable alternatives. AB 481 also requires any law enforcement agency that receives approval for the use of military equipment to submit annual reports to the governing body regarding the use of the equipment, complaints received,internal audits,and other information about violations of the military equipment use policy, the cost of such use, and other similar information. At its April 26,2022 meeting,City Council approved the introduction of the ordinance by the following vote: Ayes:Mayor Detoy, Mayor Pro Tem Jackson, Councilmembers Campbell, and Massey Noes:None Absent:Councilmember Armato Abstain:None Past Council Actions Meeting Date Description April 26, 2022 (Regular Meeting) City Council introduced and waived first reading of an ordinance adopting a military use equipment policy pursuant to Assembly Bill 481. Analysis: Law enforcement incidents can be unpredictable and complex.In order to de-escalate violent and tense situations,at times special equipment,tools,or resources may be necessary to reduce the possibility of harm to community members,individuals directly involved in the incident and officers and to increase the likelihood of a positive outcome.Military equipment,as that term is defined by statute,includes,but is not limited to,unmanned aerial (i.e.,drones)or ground vehicles,bulletproof vehicles,pepper balls,less lethal 40mm projectile launchers,and distraction devices.These tools have been tested in the field and are used to help enhance community safety,officer safety,and reduce the need for escalation of force.They are commonly utilized by law enforcement and their use is considered best practices.The Hermosa Beach Police Department (“Department”)has not discovered other reasonable alternatives for these tools that can achieve the same objectives of community member safety and officer safety as these tools are capable of doing. City of Hermosa Beach Printed on 5/6/2022Page 2 of 4 powered by Legistar™203 Staff Report REPORT 22-0293 The Department is committed to utilizing equipment that helps to safeguard the community and reduce the risk of escalating volatile situations that might rise to the level of a lethal encounter. The proposed Ordinance (Attachments 1 and 2)and AB 481 Policy (Attachment 3)provide for safeguards to the public’s safety,welfare,and civil rights and ensure transparency,oversight,and accountability measures are in place.As examples,the Department would be required to conduct annual audits of the equipment to ensure compliance with the policy,annually report to City Council the use of this equipment, and seek approval prior to additional military equipment. General Plan Consistency: This report and recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Governance Element Goal 1. A high degree of transparency and integrity in the decision-making process. Policy: ·1.1 Open meetings.Maintain the community’s trust by holding meetings in which decisions are being made,that are open and available for all community members to attend,participate, or view remotely. Public Safety Element Goal 5. High quality police and fire protection services provided to residents and visitors. Policy: ·5.2 High level of response.Achieve optimal utilization of allocated public safety resources and provide desired levels of response, staffing, and protection within the community. Fiscal Impact: The fiscal impact will vary from year to year based on training,staffing,and use required of equipment throughout the year. Attachments: 1.Draft Ordinance Adopting AB 481 2.Draft Summary Ordinance AB 481 3.S2.31 Military Equipment Use Policy 4.Link to April 26, 2022 City Council Staff Report City of Hermosa Beach Printed on 5/6/2022Page 3 of 4 powered by Legistar™204 Staff Report REPORT 22-0293 Respectfully Submitted by: Myra Maravilla, City Clerk Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 4 of 4 powered by Legistar™205 65270.00001\34421077.1 ORDINANCE NO. ___ AN ORDINANCE OF THE CITY OF HERMOSA BEACH ADOPTING A MILITARY USE EQUIPMENT POLICY, IN ACCORDANCE WITH ASSEMBLY BILL 481. The City Council of the City of Hermosa Beach does hereby ordain as follows: Section 1. Recitals. A. On September 30, 2021, Governor Newsom signed into law Assembly Bill (“AB”) 481 to address the funding, acquisition, and use of military equipment, as th at term is defined by Government Code section 7070(c). B. AB 481 requires adoption of a military use equipment policy (“Policy”) by the City Council before the Hermosa Beach Police Department (“Department”) may take action to request military equipment; seek funds (such as grants or in-kind donations) for acquiring military equipment; actually acquire military equipment, either permanently or temporarily by owning, borrowing, or leasing; collaborate with other law enforcement agencies to deploy or use military equipment in the agency’s territorial jurisdiction; use new or existing military equipment in a manner not previously subject to AB 481’s scope; solicit or respond to a proposal for, or enter into an agreement with, any person or entity to seek funds for , apply for, acquire, use, or collaborate in using military equipment; or to acquire military equipment through any other means not specifically detailed in the statute . C. In accordance with AB 481, the proposed Policy was made available on the website on the Department website at least thirty (30) days prior to the public hearing by the City Council to adopt the Policy. D. In accordance with AB 481, the Policy is on the agenda as an open session item at a regular meeting of the City Council, and public comment on the item will be allowed in accordance with the Brown Act. E. This Ordinance will be reviewed by City Council at least annually and based on an annual military equipment report that will be submitted to the City Council pursuant to AB 481. Section 2. Findings. Pursuant to Government Code section 7071(d)(1), as may be amended or renumbered from time to time, the City Council hereby makes the following findings in support of its adoption of the Policy: A. The military equipment identified in the Policy is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. 206 65270.00001\34421077.1 B. The proposed Policy will safeguard the public’s welfare, safety, civil rights, and civil liberties. C. If the Department purchases military equipment pursuant to the Policy, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. D. Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance. Section 3. Adoption of the Military Equipment Policy. The City Council hereby adopts the Military Use Equipment Policy, which are all attached hereto as Exhibit “A”. Section 4. Environmental Review. The City Council finds that adoption and implementation of this ordinance is not a “project” for purposes of the California Environmental Quality Act (CEQA), as that term is defined by CEQA guidelines (Guidelines) sections 15061(b)(3), and 15378(b)(5). The effect of the proposed amendment will be to maintain the status quo. No new development will result from the proposed action. No impact to the physical environment will result. The City Council also alternatively finds that the adoption and imp lementation of this ordinance is exempt from the provisions of CEQA as an administrative activity by the City of Hermosa Beach, that will not result in any direct or indirect physical change in the environment, per sections 15061(b)(3), and 15378(b)(5) of the CEQA Guidelines, as well as CEQA Guidelines section 15064(e) (economic regulations). Section 6. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or any part thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining porti on of this ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase be declared unconstitutional. Section 7. Pursuant to California Government Code section 36937, this ordinance shall take effect thirty (30) days after its final passage. Section 8. The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of Hermosa Beach’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and cause it to be published or posted in accordance with California law. 207 65270.00001\34421077.1 PASSED, APPROVED and ADOPTED this __th day of _________________, 2022. VOTE: AYES: NOES: ABSTAIN: ABSENT: _______________________________________ MAYOR of the City of Hermosa Beach, California ATTEST: ___________________________ City Clerk APPROVED AS TO FORM: ___________________________ City Attorney 208 65270.00001\34421077.1 Exhibit “A” [Insert AB 481 Policy] 209 NOTICE AND SUMMARY OF ORDINANCE NO. XXXX AN ORDINANCE OF THE CITY OF HERMOSA BEACH ADOPTING A MILITARY USE EQUIPMENT POLICY, IN ACCORDANCE WITH ASSEMBLY BILL 481. Notice is hereby given that on May 10, 2022, the City Council of the City of Hermosa Beach (“City”) will consider the adoption of Ordinance No. XXXX, adopting a Military Equipment Use Policy pursuant to Assembly Bill (“AB”) 481 and adding said Policy to the Hermosa Beach Police Department’s Policy Manual. The Ordinance demonstrates the City’s compliance with AB 481 by establishing guidelines for the acquisition, funding, use, and reporting of military equipment, as defined by Government Code section 7070, including but not limited to requiring annual compliance reports and engaging with the community regarding any questions or concerns relating to the Military Equipment Use Policy. The City’s Military Use Equipment Policy is available for review on the City’s website. Upon adoption of this Ordinance adopting a Military Equipment Use Policy, the City will thereafter submit annual compliance reports regarding the use and acquisition of military equipment pursuant to Government Code section 7072, and make said reports publicly available on the City’s website. The above is a simply a summary of the Ordinance. To obtain a full understanding of the Ordinance, it should be read in its entirety. A certified copy of the full text of the Ordinance is posted in the City Clerk’s office at Hermosa Beach City Hall, 1315 Valley Drive, 2nd floor, Hermosa Beach, CA 90254, and on the City’s website at http://www.hermosabeach.gov. 210 HERMOSA BEACH POLICE DEPARTMENT S2.31 MILITARY EQUIPMENT USE POLICY Effective 03/28/2022 PURPOSE The purpose of this policy (“Policy”) is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment pursuant to Assembly Billy 481 (“AB 481”). (California Government Code 7070, et seq.). POLICY It is the Policy of the Hermosa Beach Police Department (“HBPD” or “Department”) that members of this Department comply with the provisions of Government Code section 7071 with respect to military equipment. DEFINITIONS Definitions related to this Policy include those provided in Government Code section 7070, and as follows: Governing body – City Council of the City of Hermosa Beach (“City Council”). Military Equipment – Includes but is not limited to the following: Unmanned, remotely piloted, powered aerial or ground vehicles. Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. However, police versions of standard consumer vehicles are specifically excluded from this policy. High mobility multipurpose wheeled vehicles (HMMWV), commonly referred to as Humvees, two and one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. However, unarmored all-terrain vehicles (ATVs) and motorized dirt bikes are specifically excluded from this Policy. Tracked armored vehicles that provide ballistic protection to their occupants. Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. Weaponized aircraft, vessels, or vehicles of any kind. Battering rams, slugs, and breaching apparatuses that are explosive in nature. However, items designed to remove a lock, such as bolt cutters, or a handheld ram designed to be operated by one person, are specifically excluded from this Policy. Firearms of .50 caliber or greater. However, standard issue shotguns are specifically excluded from this Policy. Ammunition of .50 caliber or greater. However, standard issue shotgun ammunition is specifically excluded from this Policy. 211 Specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, except for standard issue service weapons and ammunition of less than .50 caliber that are issued to e mployees of the HBPD. Any firearm or firearm accessory that is designed to launch explosive projectiles. “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls,” excluding standard, service-issued handheld pepper spray. Taser Shockwave, microwave weapons, water cannons, and the Long-Range Acoustic Device (LRAD). The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) wea pons. Any other equipment as determined by the City Council to require additional oversight. ANNUAL REPORT The HBPD shall provide the City Council with an annual military equipment report regarding our approved military equipment within one year of this Policy’s approval, and annually thereafter, for as long as military equipment is available for use by the HBPD. The most recently completed annual military equipment report will also be made publicly available on the HBPD’s internet website at least thirty (30) days prior to the HBPD providing the annual military equipment report to the City Council. The HBPD will continue posting annual military equipment reports on the HBPD’s internet website for as long as military equipment is available for use by the HBPD. The annual military equipment report shall, at a minimum, include the following information: 1. A summary of how the military equipment was used and the purpose of its use. 2. A summary of any complaints or concerns received concerning the military equipment. 3. The results of any internal audits, any information about violations of this Policy, and any actions taken in response. 4. The total annual cost for each type of military equipment. This will include acquisition, personnel, training, transportation, maintenance, storage, upgrades, and other ongoing costs. This will also include from what source the funds will be provided for the military equipment in the calendar year following the submission of the annual military equipment report. 5. The quantity possessed for each type of military equipment. 6. If the HBPD intends to acquire additional military equipment in the next year, the report will include the quantity sought for each type of military equipment. COMMUNITY ENGAGEMENT The HBPD shall make proposed changes to this Policy available on HBPD’s internet website at least thirty (30) days prior to any public hearing concerning the military equipment at issue. 212 Within thirty (30) days of submitting and publicly releasing an annual military equipment report pursuant to this Policy, the HBPD shall hold at least one well-publicized and conveniently located community engagement meeting, at which the public may discuss and ask questions regarding the annual military equipment report, and the HBPD’s funding, acquisition, or use of military equipment. MILITARY EQUIPMENT INVENTORY The HBPD’s inventory of military equipment is attached to this Policy as Exhibit “A,” and is incorporated into this Policy by this reference. Exhibit “A” will be updated annually during preparation for the annual military equip ment report, and its updated version will be replaced within this policy prior to the annual military equipment report being submitted to the City Council. MILITARY EQUIPMENT COORDINATOR The Chief of Police or their designee, should assign at least one HBPD employee, who should be at or above the rank of Sergeant, to be the Military Equipment Coordinator. The Military Equipment Coordinator may receive assistance from other HBPD employees or HBPD volunteers. The responsibilities of the Military Equipment Coordinator include, but are not limited to: 1. Conducting an inventory of all military equipment owned or operated by the HBPD at least annually, and prior to preparing the annual military equipment report. This inventory includes the aggregate cost and quantity for each type of ammunition controlled by this policy that wa s purchased since the submission of the previous year’s annual military equipment report. 2. Preparing the annual military equipment report for submission to the City Council pursuant to the section of this Policy titled, “Annual Report;” and ensuring that this report is displayed on the HBPD’s internet website at least thirty (30) days prior to any public hearing concerning military equipment and keeping it on the HBPD’s internet website for as long as military equipment is available for use by the HBPD. 3. Preparing for, scheduling, advertising, and coordinating the annual military equipment community engagement meeting within thirty (30) days of submitting and publicly releasing an annual military equipment report. 4. Answering questions, responding to concerns, and receiving complaints from the public about the HBPD’s possession or usage of military equipment. The Military Equipment Coordinator may be used as a subject matter expert if a complaint involves the possession or use of military equipment. COORDINATION WITH OTHER JURISDICTIONS Military equipment used by any member this Department shall be approved for use in accordance with this Policy. Military equipment used by other jurisdictions that are providing mutual aid to the City of Hermosa Beach, or otherwise engaged in law enforcement operations in the City, shall comply with their respective military equipment use policies in rendering mutual aid or carrying out a law enforcement function related to a criminal matter under their investigation. 213 QUESTIONS, CONCERNS, OR COMPLAINTS Any member of the public may direct questions, concerns, or complaints related to the equipment controlled by this Policy to any member of the HBPD, in person or by any electronic means, including by calling the HBPD’s non-emergency business number (#310-318-0360). If a HBPD member’s response is deemed unsatisfactory, then the question(s), concern(s), or complaint(s) should be forwarded to the Military Equipment Coordinator who should respond in a timely manner. If the Military Equipment Coordinator’s response is deemed unsatisfactory, or if the Military Equipment Coordinator believes it would be more appropriate to do so, then the question(s), concern(s), or complaint(s) should be forwarded to an on-duty watch commander, or up their chain of command. COMPLIANCE Department members are bound to adhere to this Policy, in addition to state and local laws and ordinances when employing the use of military equipment at any time. Violations of the law or this Policy may result in criminal or administrative investigations and, or actions. APPROVED. Paul LeBaron Chief of Police 214 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0271 notHonorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 APPROVAL OF SECOND AMENDMENT TO AGREEMENT FOR PROJECT MANAGEMENT/COORDINATION IN IMPLEMENTING THE MUNICIPAL STORMWATER (MS4) PERMIT WITH JOHN L. HUNTER AND ASSOCIATES, INC. (Environmental Programs Manager Doug Krauss) Recommended Action: Staff recommends City Council: 1.Approve the proposed second amendment to an agreement with John L.Hunter and Associates,Inc.for project management/coordination in implementing the Municipal Stormwater (MS4)Permit to extend the contract by two years,through June 30,2024,and extend the annual compensation amount of $114,989 resulting in a total amended contract term of five years and a total not-to-exceed amount of $574,945; and 2.Authorize the Mayor to execute and the City Clerk to attest the attached second amendment subject to approval by the City Attorney (Attachment 4). Executive Summary: The City entered into an agreement on August 27,2019 with John L.Hunter and Associates,Inc. (JLHA)to provide project management/coordination in implementing the Municipal Stormwater (MS4) Permit.The proposed second amendment would extend the agreement for two additional years and extend the annual not-to-exceed compensation of $114,989 resulting in a total amended contract term of five years and total not-to-exceed amount of $574,945. Approval of the agreement would allow continuation of a variety of stormwater-related services including site inspections,policy development,and annual reporting.These services ensure the City’s compliance with relevant laws and regulations,and help advance the City’s important pollution prevention goals. Background: In June 2019,the City of Hermosa Beach issued a formal request for proposals to provide professional stormwater consulting services.Upon completion of the competitive review process, John L. Hunter and Associates, Inc. was selected to provide the requested professional services. City of Hermosa Beach Printed on 5/6/2022Page 1 of 4 powered by Legistar™215 Staff Report REPORT 22-0271 At its regular meeting on August 27,2019,City Council approved an agreement with John L.Hunter and Associates,Inc.to administer the City's Municipal Stormwater Management Program in connection with National Pollutant Discharge Elimination System (NPDES)permit requirements and to perform a host of stormwater related services for an annual amount of $114,989 (Attachment 2). The services described in the agreement include: ·Annual Clean Bay Restaurant inspections and reporting; ·Commercial/Industrial stormwater inspections; ·General policy and regulatory support; ·Grant application assistance and reporting, including Safe Clean Water funding; ·Annual stormwater reporting assistance; ·Private development plan review and inspection as needed; ·Stormwater capital improvement project support; ·Sewer system management plan assistance and guidance; and ·Training for City staff and contractors. On December 10,2019,the City and consultant executed the first amendment to the agreement to correct an error such that the Agreement reflects the parties mutual understanding when entering into the Agreement (Attachment 3). Past Council Actions Meeting Date Description August 27, 2019 Award of an agreement with John L. Hunter and Associates Inc. for Professional Stormwater Consulting Services Discussion: For many years the City has utilized the service of consultants to augment efforts to administer the City’s stormwater programs.Additional resources support the City’s own ambitious efforts to preserve and protect the health of its beach and ocean,as well as the complex and evolving nature of stormwater regulation. John L.Hunter and Associates,Inc.(JLHA)has been a well-regarded stormwater consultant in Southern California for many decades.Its staff works well with various City staff and with partners in many other local and regional agencies.The consultant has been instrumental in helping the City successfully apply for regional Safe Clean Water funds to construct proposed renovations to Parking Lot D.This funding was approved by the South Santa Monica Bay Watershed Area Steering Committee in April 2022. City of Hermosa Beach Printed on 5/6/2022Page 2 of 4 powered by Legistar™216 Staff Report REPORT 22-0271 The City is also engaged in ongoing discussions with the Regional Water Quality Control Board (Water Board)to ensure final approval of its recently submitted Enhanced Watershed Management Plan which dictates the programs and projects the City must implement to remain compliant with pollution reduction requirements.These discussions also include possible extensions of compliance deadlines to allow timely completion of required capital projects and JLHA will be integral to those efforts. JLHA is also in the midst of its required stormwater inspections of commercial properties,as well as inspections of restaurants as part of the City’s Clean Bay Restaurant program.These inspections have been instrumental in ensuring citywide compliance with other important programs such as the single-use plastics ban and organics recycling requirements. If approved,the proposed second amendment (Attachment 4)would extend the term of the agreement two additional years to allow continuation of a variety of stormwater-related services including site inspections,policy development,and annual reporting.These services ensure the City’s compliance with relevant laws and regulations and help advance the City’s important pollution prevention goals. The consultant,JLHA,provided an updated proposal for the additional term,which includes revised hourly rates but with no change to the annual not-to-exceed contract amount of $114,989.Staff recommends City Council approve the proposed contract amendment to ensure continuation of the many City stormwater programs and activities. General Plan Consistency: This report and associated recommendations have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Infrastructure Element Goal 5.The stormwater management system is safe,sanitary,and environmentally and fiscally sustainable. Policy: ·5.1 Integration of stormwater best practices.Integrate stormwater infiltration best practices when initiating streetscape redevelopment or public facility improvement projects. Fiscal Impact: The agreement has an annual not-to-exceed amount of $114,989,which would be appropriated in the Storm Drain Fund,account number 161-3109-4201 during the annual budget process.This City of Hermosa Beach Printed on 5/6/2022Page 3 of 4 powered by Legistar™217 Staff Report REPORT 22-0271 annual not-to-exceed amount would remain the same for the extended contract term. Agreement Modification Request Agreement Current Authorized Amount Modified Request Amount FY 2021-22 Budget Dept. Account # Total Revised Contract Amount AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF HERMOSA BEACH AND JOHN L. HUNTER AND ASSOCIATES TO PROVIDE PROJECT MANAGEMENT/COORDINATION IN IMPLEMENTING THE MUNICIPAL STORMWATER (MS4) PERMIT Not-to-exceed $344,967 ($114,989 annually) Not-to-exceed $229,978 ($114,989 annually) 161-3109-4201 $574,945 Attachments: 1.Link to August 27, 2019 City Council Staff Report 2.Agreement with JLHA 3.First Amendment to Agreement with JLHA 4.Proposed Second Amendment to Agreement with JLHA Respectfully Submitted by: Douglas Krauss, Environmental Program Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 4 of 4 powered by Legistar™218 219 220 221 222 223 224 225 226 227 SECOND AMENDMENT TO AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF HERMOSA BEACH AND JOHN L. HUNTER AND ASSOCIATES TO PROVIDE PROJECT MANAGEMENT/COORDINATION IN IMPLEMENTING THE MUNICIPAL STORMWATER (MS4) PERMIT This Second Amendment to the Agreement for Professional Services (“Second Amendment”) is entered into by and between the City of Hermosa Beach, a municipal corporation (“CITY”) and John L. Hunter and Associates, a California corporation (“CONSULTANT”) as of May 10, 2022. RECITALS A. CITY and CONSULTANT are parties to an Agreement For Professional Services dated August 27, 2019 (the “Agreement”) by which CITY engaged CONSULTANT to provide Project Management/Coordination in Implementing the Municipal Stormwater (MS4) Permit services for the City. B. The intent of the Agreement, as advertised in the formal Request for Proposals originally issued May 16, 2019 and re-issued June 27, 2019 by the City, was for a three-year term. C. John L. Hunter and Associates was determined to be the most competitive proposer at a not-to-exceed cost of $114,989 per year, for a three-year term, as approved by Council at the August 27, 2019 City Council meeting. D. The Agreement erroneously provided for total not-to-exceed compensation of $114,989 for the entire three-year term, rather than per year. A First Amendment executed on December 10, 2019 corrected this. E. City and Consultant now desire to amend the Agreement in order to extend the term for two additional years at the same not-to-exceed amount of $114,989. NOW, THEREFORE, in consideration of the foregoing, the Agreement is amended as follows: 1. Section 1 of the Agreement is amended to read as follows: CONSIDERATION AND COMPENSATION As partial consideration, CONSULTANT agrees to perform the work listed in the SCOPE OF SERVICES, attached as EXHIBIT A. As additional consideration, CONSULTANT and CITY agree to abide by the terms and conditions contained in this Agreement. As additional consideration, CITY agrees to pay CONSULTANT a total not to exceed $114,989 annually, for CONSULTANT’s services, unless otherwise specified by written amendment to this Agreement. No additional compensation shall be paid for any other expenses incurred, unless first approved by the City Manager or his/her designee. CONSULTANT shall submit to CITY, by not later than the 10th day of each month, its invoice for services itemizing the fees and costs incurred during the previous month. 228 CITY shall pay CONSULTANT all uncontested amounts set forth in CONSULTANT’s invoice within 30 days after it is received. 2. Section 7 of the Agreement is amended to read as follows: TERM OF AGREEMENT. The term of this Agreement shall commence upon execution by both parties and shall expire on June 30, 2024, unless earlier termination occurs under Section 11 of this Agreement, or this Agreement is extended in writing in advance by both parties. Except as above modified, in all other respects the Agreement is hereby reaffirmed in full force and effect. CITY OF HERMOSA BEACH CONSULTANT ________________________________ _______________________________ Suja Lowenthal, City Manager John L. Hunter, President ATTEST: APPROVED AS TO FORM: _________________________________ ____________________________________ Myra Maravilla, City Clerk Michael Jenkins, City Attorney 229 April 12, 2022 Douglas Krauss City of Hermosa Beach 1315 Valley Dr. Hermosa Beach, CA 90254 Subject: Extension of Proposal for Professional Services for Stormwater Consulting Dear Douglas Krauss: John L. Hunter & Associates, Inc. (JLHA) welcome the opportunity to continue offering our professional Municipal NPDES (Stormwater) services to the City of Hermosa Beach. Our existing scope of work and annual expenditure of $114,989.00 with the City will apply for the service extension. Our latest Standard Rate Schedule is included on the following page. Work will be conducted on a time and materials basis. JLHA will provide consultant services not to exceed the budgetary amount without the City’s prior authorization. Thank you again for the opportunity to offer our services. If you have any questions, you can reach me at cmccullough@jlha.net or 562.726.4259. Sincerely, Cameron McCullough, Director EXHIBIT A 230 Standard Rate Schedule Principal $195 / hour Director $175 / hour Program Manager $175 / hour Staff Engineer $175 / hour Project Manager $165 / hour Assistant Project Manager $155 / hour Project Engineer $155 / hour Compliance Specialist II $125 / hour Project Analyst II $125 / hour Industrial/commercial facility inspection $125 / unit Compliance Specialist I $115 / hour Project Analyst I $115 / hour Administrative Assistant, Laborer (OSHA 40hr certified) $75 / hour Inspection – Combined CBR/FOG or NPDES/FOG $150 / unit Inspection – FOG only $125 / unit Inspection – Industrial/commercial facility $125 / unit State Certified Laboratory Analysis Cost + 5% Legal Consultation, Court Appearances/Document review, etc. $250 / hour Subcontracted equipment Cost + 5% Fee Schedule effective as of January 1, 2021 JLHA does not add charges for overhead items such as administrative copying or mileage in and around the city. 231 232 233 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0299 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 CONSIDERATION OF PROPOSALS REGARDING THE EXTENSION OF AGREEMENTS BETWEEN THE CITY OF HERMOSA BEACH AND ARAKELIAN ENTERPRISES, INC (DBA ATHENS SERVICES) FOR SOLID WASTE MANAGEMENT SERVICES AND STREET SWEEPING AND CLEANING SERVICES (Environmental Programs Manager Douglas Krauss) Recommended Action: Staff recommends City Council: 1.Consider the proposals submitted by Athens Services,Inc.for extension and amendment of the current solid waste management and street sweeping and cleaning services agreements; 2.Provide feedback regarding the most desired proposal option; and 3.Direct staff to proceed with negotiations with Athens Services, Inc. If City Council should desire to pursue a new Request for Proposals (RFP): 1.Direct staff to reappropriate $300,000 for Request for Proposal (RFP)development and estimated revenue of $300,000 for Reimbursement of the Solid Waste Management and Street Sweeping RFPs from the Fiscal Year 2021-22 Budget to the Fiscal Year 2022-23 Budget. Executive Summary: Athens Services (Athens)has provided solid waste and street sweeping services for Hermosa Beach since 2013 and 2010,respectively.Both agreements were set to expire in June 2021 and were extended an additional 24 months per the terms of the agreements.Athens Services submitted informal proposals to the City for the purpose of discussing an amendment to the current agreements and extension of the terms.Staff recommends Council consider the proposals and provide staff direction on the most desirable option to proceed with negotiations.Alternatively,should Council desire to pursue a new agreement,direct staff to proceed with the Request for Proposals (RFP) process. City of Hermosa Beach Printed on 5/6/2022Page 1 of 14 powered by Legistar™234 Staff Report REPORT 22-0299 Background: At its October 12,2010 meeting,City Council approved an agreement with Athens Services for Sweeping/Cleaning of Streets,Alleys,Walkstreets,Parking Lots and the Pier.(Attachment 1).The agreement was subsequently amended by the first amendment to agreement for Street Sweeping Services dated March 26,2013.That amendment served to extend the term and have it coincide with the term of the agreement with Athens for solid waste collection services which was also entered into on March 26,2013 (Attachment 2).A second amendment to the agreement for street sweeping services was approved September 25,2018,adding certain cleaning services.A first amendment to the solid waste franchise was executed in September 2018 revising some minor contract elements.In 2019,the City and Athens Service agreed upon a special rate increase to allow for organic waste collection in response to AB1826 (2014),a State law that required commercial and multi-family customers to recycle organic waste (Attachment 3). The City pays Athens approximately $544,000 annually for street sweeping and cleaning services. This agreement includes a number of sweeping and cleaning services for public the right-of-way including:weekly sweeping of all streets,daily cleaning of the Strand and Pier,regular cleaning of Pier Plaza,cleaning of sidewalks,emptying public trash cans citywide,and sweeping and cleaning of public parking lots. The solid waste franchise agreement provides solid waste services for all properties in the City, including residential,commercial,and municipal properties.This includes free collection service for City facilities and the Hermosa Beach School District.The agreement also includes a number of related services including hosting annual compost give-away and paper shredding events.There is no cost to the City for this agreement because compensation to Athens is via rates paid by ratepayers and the City receives approximately $422,000 in franchise fees and AB 939 surcharges per year that adjust proportional to Athens’ revenue. A solid waste administrative fee is also received. Both these agreements were scheduled to expire June 30,2021.Per the agreements,the City had the sole option to extend the agreement up to 24 months.The City extended these agreements until June 30,2023 to ensure continuity of service and continue the favorable rates to customers.As was intended in 2013 during the amendment of the street sweeping and clean services agreement, coinciding the two agreements allows for efficient administration of the agreements and logistical coordination between the two services.The extension also allowed the City to continue to work with Athens to implement mandatory organics recycling programs that must be implemented in 2022. Staff has been working closely with Athens to deliver carts to customers,distribute outreach materials,and monitor participation per the requirements of the mandatory organics processing regulations of Senate Bill 1383 (2016).An Ordinance adding these regulations to the Hermosa Beach Municipal Code was approved by Council in May 2021,allowing the City to enforce these measures, per State requirements. City of Hermosa Beach Printed on 5/6/2022Page 2 of 14 powered by Legistar™235 Staff Report REPORT 22-0299 Past Council Actions Meeting Date Description October 12, 2010 Approved Agreement with Athens Services for Street sweeping and cleaning services March 26, 2013 Approved First Amendment to street sweeping agreement with Athens Services extending term March 26, 2013 Approved Franchise Agreement with Athens for Solid Waste Collection Services September 17, 2018 Approved First Amendment to Agreement for Solid Waste Services September 25, 2018 Approved Second Amendment to Agreement for Street sweeping and cleaning services September 10, 2019 Approved special rate increase for organic services per AB1826 Discussion: The extension of the agreements for 24 months allowed the City time to explore the full range of options for the future of these agreements.Staff reviewed both existing agreements and hired a consultant to analyze Athens’proposals.Staff also surveyed neighboring agencies and evaluated recent contract negotiations in the region to provide Council context on the City’s options.The options below could be applied to either the solid waste agreement,street sweeping agreement,or both. Option 1-Request for Proposals (RFP) The process of issuing a RFP seeking new vendors typically takes 12-18 months.This timeline includes:assessing the current contract;developing and advertising the RFP;analyzing the submitted proposals;selecting the desired contractor;negotiating a new agreement;securing Council approval; executing the new agreements; and onboarding the new contractor. Should a new hauler be chosen,a transition process would then occur for the new hauler to learn the routes and logistics of the required services.RFP processes for solid waste service recently undertaken by two local agencies took close to 18 months and cost $150,000 each.In Hermosa Beach’s case,because these are two separate agreements for different services,this cost could be doubled.Typically,the RFP includes language requiring the successful proposer to reimburse the City for these costs. The RFP process and subsequent proposals would most likely reflect the many cost uncertainties currently affecting the waste industry.These uncertainties include historically low commodity prices for recyclables and the significant costs associated with mandatory organic waste service implementation.RFPs issued in 2019 by Manhattan Beach and Lawndale resulted in rate increases City of Hermosa Beach Printed on 5/6/2022Page 3 of 14 powered by Legistar™236 Staff Report REPORT 22-0299 implementation.RFPs issued in 2019 by Manhattan Beach and Lawndale resulted in rate increases of approximately 50 percent and 70 percent,respectively.This increase was largely due to the many new programs and services associated with mandatory organics service.For reference,processing facility rates for organic waste are typically 40 percent more than disposal rates for municipal solid waste. The additional organic waste services resulting from the new mandates include: ·Distributing organics containers to nearly all customers; ·Developing and implementing routing which can include new staff, vehicles, and equipment; ·Conducting regular route audits, including waste container inspections and assistance with City enforcement; ·Performing education and outreach, both passive information distribution and targeted onsite trainings for customers; ·Transporting the organic materials to specified processing facilities; and ·Ongoing record keeping and monitoring. Although a special rate increase to accommodate increased organic waste services in Hermosa Beach was approved by the City Council at its September 10,2019 meeting,this increase was implemented to provide organic recycling service allowing the City to comply with AB1826 (2014)and was thus designed specifically for commercial and multi-family customers targeted to begin recycling organics by 2019.Residential organics recycling was also implemented at this time but was optional for customers.Rates for organic service for commercial customers were built into these increased rates but,because residential service was optional,the rate was kept separate from existing solid waste (black cart)service.SB1383 is much broader in scope for not only the number of required participants but also associated ongoing programs and record-keeping. Option 2-Negotiate with Athens In August 2021,Athens submitted an informal proposal for the City’s review that described terms of an amendment and extension to the existing agreements.Discussions between Athens and City staff led to Athens submitting additional informal proposals with variations on these suggested terms. City staff issued an RFP to solicit consultants to analyze the proposals,assess them in terms of general trends in the solid waste industry,and compare them within the context of the regional market.The City solicited three proposals from qualified consultants specializing in solid waste and awarded the contract to R3 Consulting Group (R3).R3 is uniquely qualified due to their statewide work on solid waste contracts and analysis.They are also directly involved in the statewide implementation of new mandatory organics recycling regulations on behalf of public agencies throughout the State.Per the current franchise agreement,the analysis was funded through the City, but paid for by Athens.Athens deposited the not-to-exceed contract amount with the City,which selected, directed, and paid the consultant directly. City of Hermosa Beach Printed on 5/6/2022Page 4 of 14 powered by Legistar™237 Staff Report REPORT 22-0299 R3 Consulting Group analyzed Athens’proposals to help the City assess whether the amendments and rate adjustments proposed are equitable within existing market conditions and in relation to Athens’current revenues and forecasts and provided a final report (Attachment 4).Athens’ proposals each included variations on a significant increase to customer rates for solid waste services.These increases serve to compensate Athens for revenue deficit associated with Hermosa Beach’s historically low rates relative to the regional market,as well as the additional costs associated with implementation of mandatory organics recycling programs associated with SB1383. As described in the R3 analysis,and based on financial information prepared by Athens,the company has been operating at a loss in Hermosa Beach for some time.With the proposed rate increases, Athens would not begin to realize a profit until 2024-25 at the earliest. Each proposal option has similar essential elements but each with unique variations.Though similar, each was crafted by Athens so that the various costs associated with any changes are amortized in synchronization with the scheduled rate increases.Should the City choose to negotiate with Athens, alteration of the various elements could be discussed.The various proposal elements are described and discussed below and each center on the following elements: 1.Rate increase; 2.Change to the annual rate adjustment formula; 3.Change to minimum diversion requirement; 4.New programs to support SB1383 compliance; 5.Term extension; and 6.Payments to the City. Rate Increase Each proposal from Athens includes significant rate increases.The rate increases proposed by Athens span a range from 47 percent to 53.25 percent and would be implemented over the course of 3-5 years.These proposed increases are comparable to recent rate increases in the cities of Lawndale (67 percent in 2019),Redondo Beach (35 percent for residential,70 percent for commercial,2019)and Manhattan Beach (47 percent average across all sectors,2019),each of which were implemented immediately. As shown below in the following table,the rate surveys performed by R3,Hermosa Beach residents and businesses enjoy some of the lowest trash rates in the region. Comparison of Residential FY 2021-22 Rates for South Bay Cities (includes green cart service though not all agencies offer organic recycling yet) 32/35-gal.64-gal.96-gal. Hermosa Beach $ 12.37 $ 17.04 $ 21.68 Inglewood N/A 17.46 N/A Manhattan Beach 14.01 18.83 22.37 Redondo Beach N/A 22.72 N/A Hawthorne 20.45 23.87 27.71 Lawndale 23.09 27.45 31.80 Rancho Palos Verdes 26.06 33.54 40.99 Torrance N/A 34.10 35.31 Culver City N/A 44.21 N/A Average without Hermosa Beach 20.90 27.77 31.64 Hermosa Beach Over (Under) Average (8.53) (10.73) (9.96) Percent Over (Under) Average (41%)(39%)(31%) City of Hermosa Beach Printed on 5/6/2022Page 5 of 14 powered by Legistar™238 Staff Report REPORT 22-0299 32/35-gal.64-gal.96-gal. Hermosa Beach $ 12.37 $ 17.04 $ 21.68 Inglewood N/A 17.46 N/A Manhattan Beach 14.01 18.83 22.37 Redondo Beach N/A 22.72 N/A Hawthorne 20.45 23.87 27.71 Lawndale 23.09 27.45 31.80 Rancho Palos Verdes 26.06 33.54 40.99 Torrance N/A 34.10 35.31 Culver City N/A 44.21 N/A Average without Hermosa Beach 20.90 27.77 31.64 Hermosa Beach Over (Under) Average (8.53) (10.73) (9.96) Percent Over (Under) Average (41%)(39%)(31%) Comparison of Commercial FY 2021-22 Rates for South Bay Cities 3 CY 1/week Garbage; 96- gallon Recycling; 96-gallon Organics 1 CY 1/week Garbage; 1 CY 1/week Recycling; 96-gallon Organics 3 CY 1/week Garbage; 1 CY 1/week Recycling; 96-gallon Organics Hermosa Beach $198.91 $148.35 $207.53 Inglewood 189.72 189.72 N/A Culver City 204.55 N/A 204.55 Manhattan Beach 219.79 N/A 273.33 Lawndale 220.40 148.62 220.40 Hawthorne 235.73 182.20 262.13 Redondo Beach 242.64 N/A 242.64 Average without Hermosa Beach 218.81 173.51 240.61 Hermosa Beach Over (Under) Average (19.90)(25.16)(33.08) Percent Over (Under) Average (9%)(15%)(14%) For the categories above that do not contain rates,the information was either not available in an equivalent form or the service is not available. City of Hermosa Beach Printed on 5/6/2022Page 6 of 14 powered by Legistar™239 Staff Report REPORT 22-0299 Despite the proposed significant rate increase,Hermosa Beach’s rates are still projected to be some of the lowest in the area over the next five years (see chart below).The rates for the some of the cities shown below,including Inglewood and Hawthorne,do not yet incorporate full organic recycling service,and thus are expected to increase accordingly.Additionally,projected rates for communities other than Hermosa Beach and Redondo Beach are based on assumptions of 3-5 percent annual increases, not inclusive of possible extraordinary adjustments. Projection and Comparison of 64-gallon Residential Rates Over Five Years FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 Inglewood $18.16 $18.88 $19.64 $20.43 $21.24 Manhattan Beach 19.77 20.76 21.80 22.89 24.03 Hawthorne 24.82 25.82 26.85 27.92 29.04 Hermosa Beach (Options A & B)20.15 23.83 28.19 29.17 30.18 Hermosa Beach (Option C)19.14 21.50 24.16 27.14 30.51 Redondo Beach 25.48 28.16 29.14 30.16 31.22 Lawndale 28.55 29.69 30.88 32.11 33.40 Rancho Palos Verdes 34.88 36.28 37.73 39.24 40.81 Torrance 35.46 36.88 38.36 39.89 41.49 Culver City 48.63 53.49 54.83 56.20 56.20 Average without Hermosa Beach 29.47 31.25 32.40 33.61 34.68 Hermosa Beach Over (Under) Average (Options A & B) (9.32)(7.42)(4.21)(4.44)(4.50) Percent Over (Under) Average (32%)(24%)(13%)(13%)(13%) Hermosa Beach Over (Under) Average (Option C) (10.33)(9.75)(8.25)(6.46)(4.17) Percent Over (Under) Average (35%)(31%)(25%)(19%)(12%) Change to the current annual rate adjustment formula A change in the annual rate adjustment formula was included in each of the proposal options.In the existing agreement for solid waste services,Athens is allowed an annual rate adjustment,which is based on a weighted calculation of several indices including the Consumer Price Index for All Urban Consumers (CPI)and Producer Price Index for fuel and equipment.Athens proposes a change to this formula that would instead rely solely on the Garbage and Trash Collection Consumer Price Index published by the Bureau of Labor Statistics (BLS),plus one additional percent.Per Athens,this index reflects the realities and costs of the solid waste industry and it is increasingly common for waste haulers to request that cities utilize this index for regular rate adjustments. City of Hermosa Beach Printed on 5/6/2022Page 7 of 14 powered by Legistar™240 Staff Report REPORT 22-0299 R3 mentions in their analysis that,although this index is traditionally higher than the current indices used by Athens,inflation makes it difficult to accurately forecast either of these indices and consequent rate adjustments.The table below provides the City’s recent annual rate adjustments compared to hypothetical adjustments using the proposed index for the same years.In the table,the proposed “Garbage and Trash Collection in U.S.City Average”index was inserted into the existing rate adjustment calculation formula and the additional one percent was added. Hermosa Beach Adjustment ( percent) Garbage & Trash Index Adjustment + 1 percent ( percent) 2016 -0.46 2.40 2017 0.79 2.80 2018 3.43 3.00 2019 1.64 3.97 2020 2.02 5.56 2021 0.88 3.75 Average 1.79 3.58 Change in the minimum diversion requirement With each proposal option,Athens proposes to revise the existing requirement to divert 50 percent of all solid waste it collects.They have instead offered to focus on helping the City comply with SB1383 and continue to indemnify the City from any penalties associated with non-compliance with AB939, the Integrated Waste Management Act of 1989,as included in the existing agreement.AB939 established a mandatory 50 percent diversion requirement for agencies statewide.As explained in R3’s analysis,other agencies are making similar changes to their agreements with their waste haulers to reflect the State’s changing emphasis from monitoring strict diversion percentages to instead implementing programs to increase and expand diversion. This change in strategy also reflects the changing realities of commodity and recycling markets which have made comprehensive diversion more difficult.R3 recommends that the City require similar indemnification for other relevant State regulations related to waste diversion such as SB1383.The City may also consider rejecting this request to align with its history of ambitious diversion programs or add language that would require a reversion to the current requirement should market or regulatory conditions change in the future. Comprehensive implementation of mandatory organics recycling program in compliance with SB1383 Athens has already begun implementing many of the programs necessary to help the City achieve compliance with SB1383 and has secured the resources to establish the permanent program City of Hermosa Beach Printed on 5/6/2022Page 8 of 14 powered by Legistar™241 Staff Report REPORT 22-0299 compliance with SB1383 and has secured the resources to establish the permanent program elements required (Attachment 5).These include:education and outreach;mandatory site visits and contamination screening;ongoing monitoring;and data management and reporting.Athens’ implementation strategy for these programs is included in each proposal option. The City relies on the waste hauler for implementation of many of these programs,both due to inherent operational logistics as well as a lack of adequate City staff resources.Per the R3 analysis, the costs of SB1383 implementation are relatively minor but are extraordinary beyond the regular annual rate adjustment and could result in a separate extraordinary rate adjustment request.In their report,R3 has included suggested language to include in a potential contract amendment which would specify the services and programs required to ensure Athens’ implementation of SB1383. Term Extension Each proposal option includes a minimum 10-year term extension of both the solid waste and street sweeping agreements.The length of the terms correlates directly with Athens’ability to amortize costs and recover revenues.At a minimum,Athens has proposed a flat 10-year extension and,at a maximum,they have proposed a 10-year “rolling”term that would automatically renew assuming Athens is materially compliant with all franchise terms.With the “rolling”term extension,the City has the option to trigger termination only after the initial five years,so the term is essentially 15 years at a minimum.Triggering the termination would also result in reduction of franchise fees paid to the City, per Athens’proposal.The other proposed term extension is a 10-year extension to the current agreement terms with a clause that would add 5 years at the end of that time should Athens be found materially compliant with certain contract terms and if monthly customer rates are within 10 percent of the average residential rate in the surrounding area at that time. Payments to City Each of Athens’proposal options include payments to the City,commensurate to the revenue projections anticipated from the rate increases and term extension.These payments are proposed alternatively as one-time upfront payments or as funds specified for specific services and programs. For instance,in the proposal with the “rolling”term extension,a $200,000 cash payment is proposed. In the option with the simple 10-year extension,a $100,000 upfront payment is proposed.In the option with the 10-year term extension that includes a 5-year renewal option,the funds are earmarked as such: ·$20,000 annual payment for additional cleaning and trash removal services,to be chosen by the City; ·$10,000 towards the replacement of lids on public trash cans; and City of Hermosa Beach Printed on 5/6/2022Page 9 of 14 powered by Legistar™242 Staff Report REPORT 22-0299 ·$40,000 towards installation of downtown decorative lighting. The annual $20,000 for services could be used to address a variety of seasonal or sporadic cleaning needs that arise,including pressure washing,additional trash pick-up at parks,or other services Athens currently provides.A $10,000 one-time payment for the replacement of lids on City trash receptacles was proposed in response to discussions related to the City’s public trash cans and the ongoing cleaning and maintenance they require. Athens first submitted initial drafts of these proposals to the City in August 2021.The one-time payment of $40,000 for lighting was proposed then and,in October 2021,Athens ended up donating the funds to the City for the purpose of installing decorative lights in November of 2021.The City secured a vendor and used the donation to fund the installation.The lights are now in place year- round on the roofline of the Community Center and on palm trees in the center medians of Pier Avenue and Hermosa Avenue in the downtown area.Should the City choose a different proposal option, terms could be adjusted accordingly if necessary. The three informal proposal options provided by Athens are listed verbatim below: OPTION A 1.Extend trash contract to a new 10-year term contract; 2.Extend the Street Sweeping & Maintenance contract to a new 10-year term contract; 3.Implement a 52.00 percent extraordinary rate adjustment, spread over 3 years; 4.Provide a one-time $100K up-front payment to the City; 5.Implement a SB1383 program for all green barrels &provide other SB1383 compliance (waste characterizations, route audits, reporting assistance, site visits, etc.); 6.Modify the diversion requirement from 50 percent hauler diversion to AB939 CalRecycle compliance; and 7.Modify the annual rate adjustment formula to “Trash CPI +1 percent” OPTION B 1.Extend trash contract to a new 10-year term contract,with a 5-year extension that SHALL be offered,provided that Athens is in material compliance with all requirements (see exact language below); 2.Extend the Street Sweeping & Maintenance contract to same term as trash contract in #1; 3.Implement a 53.25 percent extraordinary rate adjustment, spread over 3 years; 4.Provide $40,000.00 to City for permanent lights at Pier Plaza & holiday décor; 5.Implement a SB1383 program for all green barrels &provide other SB1383 compliance (waste characterizations, route audits, reporting assistance, site visits, etc.); 6.Modify the diversion requirement from 50 percent hauler diversion to AB939 CalRecycle City of Hermosa Beach Printed on 5/6/2022Page 10 of 14 powered by Legistar™243 Staff Report REPORT 22-0299 6.Modify the diversion requirement from 50 percent hauler diversion to AB939 CalRecycle compliance; 7.Modify the annual rate adjustment formula to “Trash CPI +1 percent”; 8.Provide $20K annually to City by way of annual payments or additional trash/sweeper services; and 9.Provide $10K one time for new fabricated lids for the City public receptacles. DRAFT EXTENSION TERM LANGUAGE “Upon at least five (5)years before the end of the initial Term,City shall offer Contractor,in writing,a five (5)year extension to the initial Term of this Agreement,with the extension period beginning January 1,2032 to December 31,2036,(the “Extension Term”);provided that Contractor is in material compliance with all requirements of this Agreement as of the time of such extension offer. In addition,upon at least ninety (90)days prior to the end of the initial term,City shall offer Contractor,in writing,a five (5)year extension to the previously offered &accepted “Extension Term” of this Agreement,with each additional extension period beginning January 1st of the year immediately following the end of the previous extension period;provided that Contractor is in material compliance with all requirements of this Agreement,and provided that the Hermosa Beach standard monthly residential customer rate is below,or within 10 percent,of the average standard monthly residential customer rate in the surrounding area, as of the time of such extension offer.” OPTION C 1.Extend trash contract to a new 10-year rolling contract, that cannot be triggered for 5 years; 2.If trigger is ever given, 3 percent of the 10 percent City Fee will be held back; 3.Extend the Street Sweeping & Maintenance contract to same as trash contract in #1; 4.Implement a 47.00 percent extraordinary rate adjustment, spread over 5 years; 5.Provide a one-time $200K up-front payment to the City; 6.Implement a SB1383 program for all green barrels &provide other SB1383 compliance (waste characterizations, route audits, reporting assistance, site visits, etc.); 7.Modify the diversion requirement from 50 percent hauler diversion to AB939 CalRecycle compliance; and 8.Modify the annual rate adjustment formula to “Trash CPI +1 percent”. Next Steps As described in the report from the consultant that analyzed the proposals,Athens’proposals are reasonable. Per the report: City of Hermosa Beach Printed on 5/6/2022Page 11 of 14 powered by Legistar™244 Staff Report REPORT 22-0299 “Athens’ proposal to extend the Agreement term, provide SB 1383 organics collection and associated services, and increase rates appears to be reasonable. Even after the proposed rate increases over three to five years, and given modest assumptions about how rates in the rest of the South Bay region will increase over time, the City’s residential rates are likely to remain below the average of other South Bay cities. Moreover, our analysis indicates that Athens’ proposed rate increases would achieve an appropriate level of reasonable operating profit within three to five years while also providing funding for new SB 1383 programs and new payments to the City.” Despite the proposed rate increase,it is anticipated that Hermosa Beach customers would still enjoy some of the lowest rates in the region.Additionally,all indications from community feedback and staff observations are that customers are generally content with the services provided by Athens as well. Athens has been a reliable community partner for over 10 years now and is very familiar with Hermosa Beach and its services and needs.City staff has also been satisfied with the quality of service and responsiveness for street sweeping,sidewalk cleaning and other City services provided by Athens. As evidenced by Athens’implementation of a citywide organics recycling program over the last few months,they are willing to implement new programs as necessary to assist the City and its diversion requirements.Continuing with Athens would also help the City avoid the disruptive process of transitioning to a new contractor.The existing and proposed agreements both allow for addition of new services and programs should need arise in the future.For example,the community and City Council have both expressed interest in increased cleaning services at various times.The menu of services in the agreement allows the City to add or subtract services as needed and adjust the compensation accordingly. Based on the information presented,staff recommends the City negotiate with Athens and seeks Council’s direction on which proposal option to pursue.Staff also asks Council’s feedback on the general terms and elements of the proposals as well as any other relevant considerations.A successful negotiation and implementation of the resulting rate increases would require a 45-day Proposition 218 notification be sent to all customers.This notice would detail the rates as well as the time and date of a required public hearing which would be scheduled for a future City Council meeting. Should negotiations prove fruitless,the City could choose to begin the RFP process.This process should begin expeditiously to accommodate the potential 12-18-month timeline of the process.R3 recommends,should the RFP process be chosen,that the City secure at least six additional months of service with Athens to ensure uninterrupted service and a more efficient transition to a potential new hauler. City of Hermosa Beach Printed on 5/6/2022Page 12 of 14 powered by Legistar™245 Staff Report REPORT 22-0299 Although coinciding the two solid waste and street sweeping agreements has allowed for efficient administration of the agreements and logistical coordination between the two services,the City may choose different options for each agreement.Based on the Public Resources Code,though these agreements have been in effect for many years,the City has the right to negotiate and execute agreements for these services without competitive bidding.Should the City choose to negotiate with Athens,staff would also work with Athens to improve a few minor contract elements that have been discussed over the course of the current agreements.Examples of these minor changes include: adding a rate for locking commercial carts;clarifying language related to removal of the trash compactor in Parking Lot A; and other similar language clean-ups. General Plan Consistency: This report and associated recommendations have been evaluated for their consistency with the City’s General Plan. Relevant policies are listed below: Sustainability and Conservation Element Goal 6.Hermosa Beach is a low or zero-waste community with convenient and effective options for recycling, composting, and diverting waste from landfills. Policy: ·6.1 Franchise Agreements.Ensure waste franchise agreements and program offerings provide progressively higher rates of waste diversion. Fiscal Impact: Issuing RFPs would require an upfront cost of approximately $200,000-$300,000 for hiring a consulting firm to develop the RFPs and complete the proposal process.These costs would be reimbursed by the winning proposer should the City choose to make this a requirement of the RFP. The FY 2021-22 budget includes $300,000 for this effort,along with estimated revenue of $300,000 for Reimbursement of the Solid Waste Management and Street Sweeping RFPs.Both would be reappropriated to the 2022-23 budget if Council directs staff to pursue an RFP.The City currently pays Athens approximately $544,000 annually for street sweeping and cleaning services and,should the agreement be extended,this rate would continue unchanged except for the fixed 3 percent annual adjustment.Other payments to the City described in the proposal options or resulting changes to franchise fees would be determined after negotiations. Attachments: 1.Agreement for Street Sweeping and Cleaning Services 2.Agreement for Solid Waste Services 3.Resolution 19-7210 City of Hermosa Beach Printed on 5/6/2022Page 13 of 14 powered by Legistar™246 Staff Report REPORT 22-0299 4.R3 Analysis of Athens’ Proposals 5.Athens SB1383 Implementation Plan 6.Link to October 12, 2010 Staff Report 7.Link to March 26, 2013 Staff Report 8.Link to September 17, 2018 Staff Report 9.Link to September 25, 2018 Staff Report 10.Link to September 10, 2019 Staff Report Respectfully Submitted by: Douglas Krauss, Environmental Programs Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 14 of 14 powered by Legistar™247 PART3 SECTION 10 AGREEMENT SWEEPING/CLEANING OF STREETS, ALLEYS, WALKSTREETS, PARKING LOTS AND THE PIER IN HERMOSA BEACH This Agreement for SWEEPING/CLEANING OF STREETS, ALLEYS, WALKSTREETS, PARKING LOTS AND THE PIER IN HERMOSA BEACH-Street Cleaning Services ("Agreement") is made on this 12th day of October 2010, at Hermosa Beach, California, by and between the City of Hermosa Beach, a' municipal corporation, 1315 Valley Drive, Hermosa Beach, California 90254 (hereinafter referred to as the "CITY") and Arakelian Enterprises, Inc. (Hereinafter referred to as the "CONTRACTOR"). RECITALS A CITY proposes to contract for Street Cleaning Services for all public owned properties as set forth below in this Agreement; ~ B. CONTRACTOR is willing to perform such services and has the necessary qualifications by reason of experience, preparation, and organization to provide the required services. C. NOW, THEREFORE, the CITY and the CONTRACTOR mutually agree as follows: 1. SERVICES. CONTRACTOR shall perform those services set forth in PART 5 -SPECIAL PROVISIONS which is attached hereto and incorporated herein by reference. CITY reserves the right to change the scope of services, including the items and frequency of work to be performed, at any time in its sole discretion during the term of this Agreement, and to modify the payment due CONTRACTOR accordingly, based on the prices set forth in CONTRACTOR'S proposal. 2. TIME OF PERFORMANCE. The term of this Agreement shall be for the time period beginning July 1, 2010 and ending on June 30, 2013. 3. PAYMENT FOR SERVICES. CONTRACTOR shall be compensated in an amount not to exceed $681 ,807.44 . Compensation shall under no circumstances be increased except by written amendment of this Agreement. CONTRACTOR shall be paid within thirty (30) days of presentation of an invoice to CITY for services performed to CITY's satisfaction. CONTRACTOR shall submit invoices monthly describing the services performed, the date services were performed, a description of reimbursable costs, and any other information requested by CITY. 4. AGREEMENT ADMINISTRATION. 4.1. CITY's Representative. Unless otheiWise designated in writing Mike Flaherty, Maintenance Supervisor, shall serve as the CITY's representative for the administration of the project. All activities performed by the CONTRACTOR shall be coordinated with this person. 4.2. Manager-in-Charge. For the CONTRACTOR Gary Clifford, COO shall be in charge of the project on all matters relating to this Agreement and any agreement or approval made by her/him shall be binding on the CONTRACTOR. The Manager-in- Charge shall not be replaced without the written consent of the CITY. 15 248 4.3. Responsibilities of the CITY. The CITY shall provide all relevant documentation in its possession to the CONTRACTOR upon request in order to minimize duplication of efforts. The CITY's staff shall work with the CONTRACTOR as necessary to facilitate performance of the services. 4.4. Personnel. The CONTRACTOR represents that it has or will secure at its own expense all personnel required to perform the services under this Agreement All of the services required under this Agreement will be performed by the CONTRACTOR or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. The CONTRACTOR reserves the right to determine the assignment of its own employees to the performance of the CONTRACTOR's services under this Agreement, but the CITY reserves the right, for good cause, to require the CONTRACTOR to exclude any employee from performing services on the CITY's premises. 5. TERMINATION. 5.1. Termination for Convenience. Either party may terminate this Agreement without cause and in its sole discretion at any time by giving the other party thirty (30) days' written notice of such termination. In the event of such termination, the CONTRACTOR shall cease services as of the date of termination and shall be compensated for services performed to the CITY's satisfaction up to the date of termination. 5.2. Termination for Cause. All terms, provisions, and specifications of this Agreement are material and binding, and failure to perform any material portion of the work described herein shall be considered a breach of this Agreement Should the Agreement be breached in any manner, the CITY may, at its option, terminate the Agreement not less than five (5) days after written notification is received by the CONTRACTOR to remedy the violation within the stated time or within any other time period agreed to by the parties. In the event of such termination, the CONTRACTOR shall be responsible for any additional costs incurred by the CITY in securing the services from another CONTRACTOR. 6. INDEMNIFICATION. CONTRACTOR shall indemnify, defend with counsel approved by City, and hold harmless City, its officers, officials, employees 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 CONTRACTOR's performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole negligence or willful misconduct of the City. 7. INSURANCE REQUIREMENTS. 7 .1. The CONTRACTOR, at the CONTRACTOR's own cost and expense, shall procure and maintain, for the duration of the agreement, the following insurance policies: 7.1.1. Workers' Compensation Coverage. The CONTRACTOR shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for its employees in accordance with the laws of the State of California. In addition, the CONTRACTOR shall require any and every subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non-renewal of all Workers' Compensation policies must be received by the CITY at least thirty 16 249 (30) days prior to such change. The insurer shall agree to waive all r"tghts of subrogation against the CITY, its officers, agents, employees, and volunteers for losses arising from work performed by the CONTRACTOR for City. 7.1.2. General Liability Coverage. The CONTRACTOR shall maintain commercial general liability insurance in an amount of not less than one milrton dollars ($1 ,000,000) per occurrence for bodily injury, personal injury, and propenty damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate lim.tt shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. 7.1.3. Automobile Liability Coverage. The CONTRACTOR shall maintain automobile liability insurance covering bodily injury and propenty damage for all activities of the CONTRACTOR arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired, and non-owned vehicles, in an amount of not less than three hundred thousand dollars ($1 ,000,000) combined single limit for each occurrence. 7.2. Endorsements. Each general liability and automobile liability insurance policy shall be issued by insurers possessing a Best's rating of no less than A:VII and shall be endorsed with the specific language of Section 7.2.1 below. 7.2.1. "The CITY, its elected or appointed officers, officials, employees, agents, and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the CONTRACTOR, including materials, parts, or equipment furnished in connection with such work or operations." 7.2.2. This policy shall be considered primary insurance as respects the CITY, its elected or appointed officers, officials, employees, agents, and volunteers. Any insurance maintained by the CITY, including any self-insured retention the CITY may have shall be considered excess insurance only and shall not contribute with this policy. 7 .2.3. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. 7.2.4. The insurer waives all rights of subrogation against the CITY, its elected or appointed officers, officials, employees, or agents. 7 .2.5. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents, or volunteers. 7.2.6. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thinly (30) days' written notice has been received by the CITY. 7.3. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the CITY's option, the CONTRACTOR shall demonstrate financial capability for payment of such deductibles or self-insured retentions. 17 250 7.4. Certificates of Insurance. The CONTRACTOR shall provide certificales of insurance with original endorsements to the CITY as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the CITY on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the CITY at all times during the term of this Agreement. 7.5. Failure to Procure Insurance. Failure on the part of the CONTRACTOR to procure or maintain required insurance shall constitute a material breach of agreement under which the CITY may terminate this Agreement pursuant to Section 6.2 above. 8. ASSIGNMENT AND SUBCONTRACTING. The parties recognize that a substantial inducement to the CITY for entering into this Agreement is the professional reputation, experience, and competence of the CONTRACTOR. Assignments of any or all rights, duties, or obligations of the CONTRACTOR under this Agreement will be perm"ttted only with the express consent of the CITY. The CONTRACTOR shall not subcontract any portion of the work to be performed undert11is Agreement without the written authorization of the CITY. If \ the CITY consents to such subcontract, the CONTRACTOR shall be fully responsible to.the CITY for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between the CITY and subcontractor nor shall it create any obligation on the part of the CITY to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise is required by law. 9. COMPLIANCE WITH LAWS, CODES, ORDINANCES, AND REGULATIONS. The CONTRACTOR shall use the standard of care in its profession to comply with all applicable federal, state, and local laws, codes, ordinances, and regulations. 9.1. Taxes. The CONTRACTOR agrees to pay all required taxes on amounts paid to the CONTRACTOR under this Agreement, and to indemnify and hold the CITY harmless from any and all taxes, assessments, penalties, and interest asserted against the CITY by reason of the independent CONTRACTOR relationship created by this Agreement. In the event that the CITY is audited by any Federal or State agency regarding the independent CONTRACTOR status of the CONTRACTOR and the audit in any way fails to sustain the validity of a wholly independent CONTRACTOR relationship between the CITY and the CONTRACTOR, then the CONTRACTOR agrees to reimburse the CITY for all costs, including accounting and attorneys' fees, arising out of such audit and any appeals relating thereto. 9.2. Workers' Compensation Law. The CONTRACTOR shall fully comply with the workers' compensation law regarding the CONTRACTOR and the CONTRACTOR's employees. The CONTRACTOR further agrees to indemnify and hold the CITY harmless from any failure of the CONTRACTOR to comply with applicable workers' compensation laws. The CITY shall have the right to offset against the amount of any compensation due to the CONTRACTOR under this Agreement any amount due to the CITY from the CONTRACTOR as a result of the CONTRACTOR's failure to promptly pay to the CITY any reimbursement or indemnification arising under this Section. 9.3. Licenses. The CONTRACTOR represents and warrants to the CITY that it has all licenses, pem1its, qualifications, insurance, and approvals of whatsoever nature which are legally required of the CONTRACTOR to practice its profession. The CONTRACTOR represents and warrants to the CITY that the CONTRACTOR shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, insurance, and approvals which are legally required of the CONTRACTOR to practice its profession. The CONTRACTOR shall maintain a City of Hermosa Beach business license, if required under CITY ordinance. 18 251 10. CONFLICT OF INTEREST. The CONTRACTOR confirms that it has no financial, contractual, or other interest or obligation that conflicts with or is harmful to performance of its obligations under this Agreement. The CONTRACTOR shall not during the term of this Agreement knowingly obtain such an interest or incur such an obligation, nor shall it employ or subcontract with any person for performance of this Agreement who has such incompatible interest or obligation. 11. NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY. The CONTRACTOR represents and agrees that it does not and will not discriminate against any employee or applicant for employment because of race, religion, color, medical condition, sex, sexual orientation and/or gender identity, national origin, political affiliation or opinion, or pregnancy or pregnancy-related condition. 12. RECORDS AND AUDITS. The CONTRACTOR shall maintain accounts and records, including personnel, property, and financial records, adequate to identify and account for all costs pertaining to this Agreement and such other records as may be deemed necessary by the CITY or any authorized representative, and will be retained for three years after the expiration of this Agreement. All such records shall be made available for inspection or audit by the CITY at any time during regular business hours. 13. OWNERSHIP OF DOCUMENTS. It is understood and agreed that the CITY shall own all documents and other work product of the CONTRACTOR, except the CONTRACTOR's notes and work papers, which pertain to the work performed under this Agreement The CITY shall have the sole right to use such materials in its discretion and without further compensation to the CONTRACTOR, but any re-use of such documents by the CITY on any other project without prior written consent of the CONTRACTOR shall be at the sole risk of the CITY. The CONTRACTOR shall at its sole expense provide all such documents to the CITY upon request. 14. INDEPENDENT CONTRACTOR. The CONTRACTOR is and shall at all times remain as to the CITY a wholly independent CONTRACTOR. Neither the CITY nor any of its agents shall have control over the conduct of the CONTRACTOR or any of the CONTRACTOR's employees or agents, except as herein set forth. The CONTRACTOR 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. The CONTRACTOR shall have no power to incur any debt, obligation, or liability on behalf of the CITY or otherwise act on behalf of the CITY as an agent. 15. NOTICE. All Notices permitted or required under this Agreement shall be in writing, and shall be deemed made when delivered to the applicable party's representative as provided in this Agreement. Additionally, such notices may be given to the respective parties at the following addresses, or at such other addresses as the parties may provide in writing for this purpose. Such notices shall be deemed made when personally delivered or when mailed forty-eight (48) hours after deposit in the U.S. mail, first-class postage prepaid, and addressed to the party at its applicable address. 19 252 CITY OF HERMOSA BEACH 1315 Va\ley Drive Hermosa Beach, CA 90254 Attention: Richard Morgan, Director Public Works Department CONTRACTOR: Arakelian Enterprises, Inc. DBA Athens Services P.O. Box 60009 City of Industry, California 91716 Attention: Contract Administration 16. GOVERNING LAW. This Agreement sha\1 be governed by the laws of the State of California. 17. ENTIRE AGREEMENT; MODIFICATION. This Agreement supersedes any and a\1 other agreements, either oral or written, between the parties, and contains a\1 of the covenants and agreements between the parties. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any parties, which are not embodied herein. Any agreement. statement, or promise not conta·tned in the Agreement, and any mod-ification to the Agreement, wi\1 be effective only if signed by both parties. 18. ATTORNEYS' FEES. In any action brought to declare the rights granted herein or to enforce any of the terms of this Agreement, the prevailing party sha\1 be entitled to an award of reasonable attorneys' fees in an amount determined by the court. 19. WAIVER. Waiver of a breach or default under this Agreement shal\ not constitute a continuing waiver of a subsequent breach of the same or any other provision under this agreement. Payment of any invoice by the CITY sha\1 not constitute a waiver of the CITY's right to obtain correction or replacement of any defective or noncompliant work product. 20. EXECUTION. This Agreement may be executed in several counterparts, each of which shal\ constitute one and the same instrument and sha\1 become binding upon the parties when at ·least one copy hereof shal\ have been signed by both parties hereto. In approving this Agreement, it shal\ not be necessary to produce or account for more than one such counterpart. 21. AUTHORITY TO ENTER AGREEMENT. The CONTRACTOR has al\ requisite power and authority to conduct its business and to execute, deliver, and perform this Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party. 20 253 IN WITNESS WHEREOF, the parties have executed this Agreement the 12th day of Oct , 2010. '~CTOR Ro~~~' Executive Officer TITLE Peter Tucker, Mayor 21 254 A r<EGISlRAfi . RECOROE Arakelian Enterprises, Inc. "''"'"" P.O. Box 60009 City. City of Industry Sillll.!: CA 1 crwck on~ onl~ FICTITIOUS BUSINESS NAME STATEMENT ~ ' y I---~-------T'''~"E~·~F~O~l~L~O~W~IN~G~P~E~R~S~O~N~(S~)~I~S~(~A~R~E~)~O~O~IN~G~B~U~S~I~N~E~S~S~A~S~:~(A~l~la~c~il~a~d~d~it~io~n~al~p~a~g~e~s~if~r~e~qu~i~ffi~d~)----------4 fwtilim:s Gusino~s Namet~) ,_ Community Disposal Company 2 ' Athens Services -~C'_Ih ens D~_posal_f_9.!:fl P<lr:''L __ r·-·_------------~----- . . 11\riJC\oS of lrrcorp.<Hal~an or Organ12:8lton Nu>nbGr (of~JJpli.;o!>lc) _ ________ 0'..':'?" A0540259 Street Address, Cny & !:>tate ol l'tu\C:tp<rl f1tace ot t;usmes~ 10 Ci.1hfornm (P.O. 8ox a\0111."1 not acc:ei-!l<~hle) 1-3-_ 1404_8_'{alley_ BlvsG_~ity of lndjjst~~~ 917 46 ______________________ _ Full name of Registrant/ Coq.>or<~lion I Limited Li;~hilily Company (if corporation -Incorporated in w!mt slnlal 4 _1'\_r~I\_~~<Jl:l.Enterprj~~-s~Ln_c.: ____ --------····----~alifornia _ _ _ ___ -·-····-----__ ........ . Rcsidel'lce S!rco; Addra~;s {P.O. Box not accoplud) City Zip Code _142~8_\f§!le)'_1_3Jv!l -'.~JY ()fl~~ustl)'c. __ CA 91746 {if corpcr2tion -incorpom·t<::"d in wt11;1\ slate) 4A f<e.s,dence:: Slrcc: Adt1r~ss (P.O. Box not ::~cceplf=d) Cily 1-----------·--·----------···----------------------------~---- 5 This. Busino&s is conducted by: {chock on~ Qll\yj I ~n indivitfun.l t co-partnors ) a general pm1ners.hip ) husband <~nd wile ) an oninco![l'Orated ossociution olh~! Umu u p;utner~hip ) joint venUJre { .( I <1 corpora!ion ( ) a limited liability comp;;sny I declare that aU\nformallon In this statement Is lruo and correct. {A registrant who dec\aras i\S ir~c Information which he or she knoWs to be falso is guilty of a crlmo.) __________ .:_ _______ _ If Regist(ant IS a C0RP_9RATION or LLC, Sign b~.!low SA ArC!~ Enteforises, Inc. =~~"Nt''~g/"' -~ Stgnaturo Signature of R~gistrant{s) 8 ···-----------· Sigrmtom lypctprint nome S\gM!uce type/print n<Jme Chief Financial Officer type/print namo Tille Kevin P. Hanifin Typo or PrlnlN~;~------~---------------. ··--··--· --·-··· typcfprint rmm.e 1---L---------------------- Sign(IIUCG !--~hi~~"ICJII'lnlE<nl wns filfld with the C<lunly Oer~-~----_____ :::=:::---==:~~_:_~-~~~-~:~..-:::-. -·--County an dale indicated by fits s:l..omp abOve -- NOTICE ·THIS FICTITIOUS NAME STATEMENT EXPIRES FIVE YEARS FROM DATE IT WAS FILEO IN THE OFFICE OF THE COUNTY CLERK. A NEW FICTITlOUS BUSINESS NAME STATEMENT MUST BE FILED PRIOR TO THAT DATE The filing of Hlis sldl~n"IOnt docs not of il.self authorize lhc \ISfl-ifl this slate of <1 fictitious bus~ness namf! i11 vinl<ilion uf ll1o :ighls of anoUmr und!!r k~derat. :ste~te. ur commOitlaw (See Set."1ion 14411 ffl seq .. Businllss and Professions Code} RF.C".JSTRAR -RECOROEFJCCUNTY CLERK RIJS!NESS FILING ANO ReGISTRATION P.O. f\OX 53:i!l7.. I.OS ANGElE$. ("..,A.1!0053-fl:i~7. PH· {561) 4fi7-2177 FlUNG FEE: S23.00 !.or t FBN wtd 2 rculslranls plus S<\.00 fcc l!ildladdllional FBN/regls1mnl RENEWAL FlUNG FEE: S18.00 REFER ro THE BACK OF FORM FOR INSTRUCTIONS . \I . ( r '-. L.i y -du. !.. J. /-1 fORM t 76F2800-F029 (Rl"l. ~(1)4) 255 ~. I ACORD CERTIFICATE OF LIABILITY INSURANCE Page DATE (MM/DOfYYYY) ~ 1 of 2 03/09/2011 THIS CERTIFICATE IS ISSUED AS A MATIER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies)must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME: Willis Insurance Services of California, Inc. P,tJg~EO EXTI: 877-945-7378 l Fffc NO· 888-467-2378 26 Century Blvd. P. 0. Box 305191 E-MAIL certificates@willis.com ADDRESS Nashville, TN 37230-5191 INSURER( S )AFFORDING COVERAGE NAIC# INSURER A: Chartis Specialty Insurance Comi?.any 26883-900 ~Eo INSURERS Arch Insurance Company 11150-001 Athens Services, Inc. 14048 Valley Blvd. INSURERC: City of Industry, CA 91746 INSURERD: INSURERE INSURERF: COVERAGES CERTIFICATE NUMBER· 15616418 REVISION NUMBER· THIS JS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOlWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR L TR TYPE OF INSURANCE A GENERALLIABILITY ~ . . .. "~ X COMMERCIAL GENERAL LIABILITY 1--+-_j I CLAIMS-MAoe[i] OCCUR c,-- 1--- -~ ~'L AGGREG~LIMIT AP~ PEA: ~-~-l. POLICY I I P~r?T I I LOC B AUTOMOBILE LIABILITY ~ ANYAUTO r---ALLOWNED r--SCHEDULED _ AUTOS HIRED AUTOS r---~g1~8WNED f----AUTOS - -UMBRELLA UAB HOCCUA EXCESS LIAS CLAIMS-MADE OED I I RETENTION$ POLICYNUM y B WORKERSCOMPENSATION y 71WCI4941603 AND EMPLOYERS' UABILITY y 1 N ANY PROPRIETORIPAATNERIEXECUTIVE D N I A OFFICER/MEMBER EXCLUDED? !Mandatory in NH) 1 yes, describe unOer DESCRIPTION OF OPERATIONS below ~0JJ5JM~Yl 3/1/2012 3/1/2012 3/1/2011 3/1/2012 DESCRIPTION OF OPERA noNS I LOCAnONS/VEHICLES (Attach AC1:1rd 101, Additonal Remarks Schedule, if more space is required) LIMITS EACH OCCURRENCE $ ~~~~~l~9E~~~~~ncel $ MEO EXP {Anyone person) $ PERSONAL & MJV INJURY s GENERAL AGGREGATE $ PRODUCTS. COMP/OP AGG $ $ COMBINE~~~INGLE LIMIT (Eaaccident $ BODILY INJURY(Per person) $ BODILY INJUAY(Per accident) $ rPRe?~~Th~~gf\MAuE $ $ EACH OCCURRENCE $ AGGREGATE $ $ E.l. EACH ACCIDENT $ E.l. DISEASE· EA EMPLOYEE $ E.l. DISEASE· POLICY LIMIT $ It is agreed that The City of Hermosa Beach, its elected or appointed officers, officials, employees, agents, and volunteers are included as Additional Insureds as respects to General Liability and Auto Liability, as required by written contract. 1 000 000 300 000 25 000 1 000 000 2 000 000 2 000 000 2,000,000 1,000,000 1,000,000 1,000,00C It is further agreed that such insurance as is afforded shall be Primary with any other insurance in force for or which may be purchased by the Additional Insureds. CERTIFICATE HOLDER City of Hermosa Beach Public Works Department 1315 Valley Drive Hermosa Beach, CA 90254 CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFOR THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED II\ ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPAESENTAnVE Coll, 3291444 Tpl, 1230311 Cert' 156164'18 ©1988..120107\CORD CORPORATION. All rights res< ACORD 25 (201 0/05) The ACORD name and logo are registered marks of ACORD 256 AGENCYCUSTOMERID:~3~0~3~6~7~9 ________________________ __ LOG#: __________ _ ADDITIONAL REMARKS SCHEDULE Page 2 of 2 --- AGENCY NAMED INSURED Athens Services, Inc. Willis Insurance Services of California, Inc. 14048 Valley Blvd. POLICY NUMBER City of Industry, CA 91746 See First Page CARRIER I NAICCOOE See First Paqe EFFECTIVE DATE: See First Paqe ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: CERTIFICATE OF LIABILITY INSURANCE Waiver of officers, Liability Subro~ation applies in favor of The City of Hermosa Beach, its elected or ap~ointed offic~als, employees, agents, and volunteers with respects to General Liabil2ty, Auto and Workers Compensation policies, only by contract and permitted by law. ACORD 101 (2008/01) Coll: 3291444 Tpl: 1230311 Cert: 15616418 ©2008ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD 257 Appropriate endorsements have been requested from the carrier and will be provided as soon as available. If you have any questions, please contact Laarni Samaniego or Tanya Peterson at 213-607-6300; Fax: 213-607-6301. 258 ACORD"' CERTIFICATE OF LIABILITY INSURANCE Page 1 of 1 J DATE (MM!DDIYYYY) ~ 03/09/2011 THIS CERTIFICATE IS ISSUED AS A MA TIER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR AL TEA THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies)must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME· Willis Insurance Services of California, Inc. r~g~~ EXT): 877-945-7378 I FAX 888-467-2378 26 Century Blvd. . {NC NO) P. 0. Box 305191 E-MAIL certificates@willis.com ADDRESS: Nashville, TN 37230-5191 INSURER{S)AFFOAOING COVERAGE NAIC~ INSURER A" Chartis Specialty Insurance Company 26883-900 INSURED INSURER B: Arch Insurance Company 11150-001 Athens Services, Inc. 14048 Valley Blvd. INSUAERC: City of Industry, CA 91746 INSURERD· INSURERE: I INSURERF· COVERAGES :ATE NIIMR"R· 15616419 THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. 11~-f.\' TYPE I ~~';;~ ~'II POll Llt,OTS A C.'"<RAI ARII I~ y F.r.< .. 0324 X I I lc1. 1 of J OCCUR - - j :FNI POLICY lll~~;pnpl:: B LIABILITY y nr>R4041503 lx ANY AUTO r-ALL OWNED ,-- AUTOS 1~3~~!" r-r- HIRED AUTOS r-1--- UMBRELLA UAB H OCCUR - EXCESS LIAB CLAIMS-MADE OED I 1<$ B WORKERS COMPENSATION 71WCI4941603 AND EMPLOYERS' LIABILITY YIN ANY PAOPRIETORIPAATNERIEXECUTIVE 0 N/A OFFICER/MEMBER EXCLUDED? h~~~?~~~b~ ~~~er DESCRIPTION OF OPERATIONS below I Acord C~=~-o_f. Hermosa Beach is named as Additional Insured 'le Liability policy, but only as required by CERTIFICATE HOLDER City of Hermosa Beach Attn: Ken Reamey 1315 Valley Drive Hermosa Beach, CA 90254 13/1/2011 3/1/2012 EACH l, 000' 000 ~NlED 300.000 I MEDEXP(Aoy• 25,000 , & ADV INJURY I• L ooo, ooo CFNFRAI 2.000.000 PROOL 'AGG 2,000,000 13/1/2011 3/1/2012 I 11 2,000,000 BODILY I I• BODILY' i (,?AMAGE I EACH OCCIIRR<NCF ,. I• I• 3/1/2011 3/1/2012 X I ,';';~~[:l,;1¥s I lu/~ I E.LEACH, 1,000,00C I E.L DISEASE. ,$ 1,000,00( F.' n«FA<F. POLICY LIMIT I• 1,ooo,ooc with respects to the General Liability and written contract. CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFOR THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE Call: 32 91444 Tp1: 123 0311 Cert: 1561641.9 © 1988-'2010ACORD CORPORATION. All rights rese ACORD 25 (201 0/05) The ACORD name and fogo are registered marks of ACORD 259 1: CITY OF HERMOSA BEACH REQUEST FORM FOR CONTRACTS AND ON-GOING SERVICES o: Finance Director Date: 12/15/2010 From Frank Senteno Director Signature ___________ _ Department of Public Works Please issue a Contractor's purchase order to the following: Arakelian Enterprises, Inc. DBA Athens Services '·. ; • -7:: /-' VENDOR NAME P.O. Box 60009 VENDOR ADDRESS City of Industry CA 91716 CITY STATE ZIP Ron Arakelian 626 336-3636 office VENDOR CONTACT This request is authorized by the following: [g) City Council Approved Contract Date of City Council Approval: October 12. 2010 0 Signed Agreement (Attach Copy) 0 Approved Lease (Attach Copy) 0 On-Going Services Provider Estimated Annual Amount $ Description of Services: Citywide Street Sweeping PURCHASE ORDER# FINANCE DIRECTOR CITY MANAGER FINANCE USE ONLY: DATE ____________ ~ DATE Invoices relating to the above services will be forwarded to the requesting department for approval and assignment of an account number. F:\895\PWFILES\ongoing or contract requests\ATHENS 12-15-10.doc 260 I Honorable Mayor and Members of the Hermosa Beach City Council October 19, 2010 Regular Meeting of October 26, 2010 AWARD CONTRACT FOR SWEEPING/CLEANING OF STREETS, ALLEYS, WALKSTREETS, PARKING LOTS, AND THE PIER IN HERMOSA BEACH Recommendation: It is recommended that the City Council: 1. Award Sweeping/Cleaning Services contract to Athens Services for the period beginning November 1, 2010 and ending June 30, 2013 for a three-year contract total of $681 ,807 .44; 2. Authorize the Mayor to execute and the City Clerk to attest the contract subject to approval by the City Attorney; and 3. Authorize the Director of Public Works to make changes as necessary within the budgeted amount. Background: This contract provides street sweeping and cleaning services throughout the city, including streets, walkstreets, commercial sidewalks, the Strand, City-owned parking lots, the parking structure, and the pier. This contract was originally bid in March 2010. Due to discrepancies with the lowest cost proposal, Council rejected all bids and directed staff to rebid the contract. The scope of work was modified by eliminating optional levels of service and adding cleaning of the parking structure and quarterly cleaning of all commercial sidewalks. On September 2, 2010, the revised scope of work was advertised in the Easy Reader and on the City's website. The City Clerk received five bids by the closing date of September 30, 2010. The bids were publicly opened and read aloud. The bid results were as follows: TOTAL 1111/10 07/01/11 07/01/12 (1111/10 Bidder through through through through 06/30/11 06130/12 06/30/13 6/30/13) Athens Services $164,449.70 $254,856.04 $262,501.70 $681,807.44 CleanStreet $223,834.96 $342,467.64 $349,317.12 $915,619.72 Webco LB LLC $246,442.00 $422,472.00 $422,472.00 $1,091,386.00 Cannon Pacific Services, Inc. $459,397.12 $689,095.68 $689,095.68 $1,837,588.48 Borden Trucking, Inc. $703,327.00 $1,068,054.00 $1,068,054.00 $2,839,435.00 261 Analysis: The bid of the apparent low bidder, Athens Services, is approximately 30% below the amount currently budgeted for this work. Staff reviewed the low bidder's documents and found them to be in order. The Contractor has performed similar work for other public agencies and received favorable references. Staff recommends award of this contract to Athens Services. Fiscal Impact: This work is funded from three sources. The breakdown by fund is as follows: Downtown General Fund --General Fund --Enhancement Fund Street Sweeping Pier Maintenance TOTAL 1 09-3301-4201 001-3104-4201 001-61 01-4201 -<I> Current Year Budget for Full Year $112,519 $205,150 $40,150 $357,819 Cl '0 :::1 co -"' 0 u -" .. '--c: 0 u Current Year Budget (pro-rated for 8 months of $75,013 $136,767 $26,767 $238,546 service) Current Year Contract Cost $56,927 $96,961 $10,561 $164,450 (8 months of service) FY1112 Contract Cost (Full Year) $87,953 $150,586 $16,317 $254,856 FY1213 Contract Cost (Full Year) $90,591 $155,104 $16,806 $262,502 TOTAL CONTRACT COST $235,472 $402,652 $43,684 $681,807 The cost for the remainder of the current year is approximately $74,000 less than the budgeted amount. The cost for the next two fiscal years is approximately $100,000 per year less than the amount budgeted for the current year. Attachment: Cost Breakdown -Athens Sweeping/Cleaning Proposal Received 09/30/10 2 262 Respectfully submitted, ((b, ~ Ken Reamey, P.E. Associate Engineer Noted for Fiscal Impact: Viki Copeland Finance Director Concur: 3 Frank Senteno, P.E. Interim Director of Public Works Stephen R. Burrell City Manager F :\895\PWFI LES\CCITEMS\AwardStreetSweepingContract1 0121 O.doc 263 Cost Breakdown Athens Services Sweeplng/CI.eaning Proposal Received 09/30/10 11/1/10 thru 6130/11 7/1/11 thru 6/30112 711/12 thru 6J30/13 Item Description Frequency Funding Source Monthly Annual Monthly Annual Monthly Annual 1 Sweep Downtown Mon. Wed, Frl, Sat, Sun 109~3301-4201 $2,066.07 $16,528.56 $2,128.05 $25,536.60 $2,191.89 $26,302.68 2 Sweep Strand Daily 001-31044201 $1,774.64 $14,197.12 $1,827.88 $21,934.56 $1,882.72 $22,592.64 3 Clean City Pier Mon. Wed, Fri, Sat, Sun 00·1-61 01-4201 $1,320.12 $10,560.96 $1,359.72. $16,316.64 $1,400.52 $16,806.24 4 Morning Porter Service Downtown Mon, Wed, Fri, Sat, Sun 109-3301-4201 $1,603.83 $12,830.84 $1,851.94 $19,823.28 $1.701.50 $20,418.00 5 Afternoon Porter Service Downtown Sat, Sun, Holidays 109-3301-4201 $702.52 $5,620.16 $72360 $8,883.20 $745.30 $8,943.60 6 Clean Dumpster Enclosures in Lots A, B, and D. Weekly 109-3301-4201 $487.33 $3,898.64 $501.95 $6,023.40 $517.01 $6,204.12 7 Sweep aU streets, alleys, walkstreets, and public Weekly, excluding holidays 001-3104-4201 $10,155.90 $81,247.20 $10,460.58 $125,526.96 $10,n4.39 $129,292,68 parking lots not Included In Downtown area. 8 Clean I Sweep Upper Pier Avenue Mon. Wed, Frl, Sat, Sun 109-3301-4201 $1,018.08 $8.144.64 $1,048.62 $12,583.44 $1,080.08 $12,960.96 9 Commercial Sidewalk Cleaning Quarterly 001-3104-4201 $758.49 $1,516.98 $781.24 $3,124.96 $804.68 $3,218.72 10 Clean I Sweep Parl<ing Structure Mon, Fri 109-3301-4201 $1,236.10 $9,904.80 $1,275.24 $15,302.88 $1,313.50 $15,762.00 TOTAL ANNUAL COST: $164,449.70 $254,855.92 $262,501.64 KFR: F:\895\PW FILES\CJF'\Sma!!Projecls\StreetSweeping20 1 0\CostBreakdown.xls: 1 0/6/201 0:9:35 AM 264 REQUEST FOR PROPOSALS FOR SWEEPING/CLEANING OF STREETS, ALLEYS, WALKSTREETS, PARKING LOTS AND THE PIER IN HERMOSA BEACH NOVEMBER 1, 2010 THRU JUNE 30, 2013 PUBLIC WORKS DEPARTMENT 1315 Valley Drive Hermosa Beach, CA 90254 310/318-0214 265 TABLE OF CONTENTS PAGE NO. PART1 Notice to Contractors 3 PART2 Instructions to Proposers 4 PART3 Proposal Documents Section 1 Proposal to the City Council 7 Section 2 Non-Collusion Affidavit 8 Section 3 Contractors Industrial Safety Record 9 Section 4 Contractor's Hourly Cost 10 Section 5 Cost Proposal 11 Section 6 Addenda 12 Section 8 Signature Page 14 Section 9 References 15 Section 10 Agreement 16 PART4 General Provisions Section 1 Definitions of Terms 24 Section 2 Award and Execution of Agreement 26 Section 3 Legal Requirements and Responsibilities 31 Section 4 Prosecution and Progress of the Work 33 Section 5 Method of Payment 34 PARTS Special Provisions Section 1 Scope of Work 35 Section 2 Personnel and Supervision 43 Section 3 Equipment and Materials 45 Section 4 Items of Work 47 Section 5 Activity Schedules 48 Attachments Reporting Forms 49 City Map 52 Sweeper Route Maps 53 2 266 City of 2-lermosa 'IJeach NOTICE TO CONTRACTORS SEALED PROPOSALS will be received at the office of the City Clerk, City of Hermosa Beach, California, until 2:00 p.m. on Thursday, September 30, 2010, at which time they will be publicly opened and read aloud for performing the following work: SWEEPING/CLEANING OF STREETS, ALLEYS, WALKSTREETS, PARKING LOTS AND THE PIER IN HERMOSA BEACH Late proposals will not be accepted. The proposal shall be enclosed in a sealed envelope addressed to the City Clerk, City of Hermosa Beach, 1315 Valley Drive, Hermosa Beach, CA 90254, and shall be identified in the lower left corner of the envelope "Sealed Proposal"-SWEEPING/CLEANING OF STREETS, ALLEYS, WALKSTREETS, PARKING LOTS AND THE PIER IN HERMOSA BEACH. City Hall is open Monday through Thursday, from 7:00 a.m. until 6:00 p.m. No proposal shall be considered unless it is made on a proposal form furnished by the Department of Public Works. Specifications, instructions to proposers, proposal, agreement, general and special provisions may be obtained in the Public Works Department, Room 001, City of Hermosa Beach, 1315 Valley Drive. A pre-proposal meeting will be held on Wednesday, September 15,2010 at 9:00am in City Hall, Council Chambers, 1315 Valley Drive, Hermosa Beach, California. All questions regarding this proposal must be submitted in writing to Michael Flaherty, Public Works Superintendent, on or before 3:00PM on Wednesday, September 22, 2010 via facsimile (310/937-5015). It is the responsibility of the proposer to inquire as to the issuance of any addenda prior to the submittal of proposal. A business license is required to work in the City of Hermosa Beach. The City of Hermosa Beach reserves the right to reject any or all proposals and to waive any irregularity of informality in any proposal to the extent permitted by law. The City of Hermosa Beach reserves the right to during the life of the contract to change the scope of services by adding or reducing work items and increasing or reducing quantities or frequencies based on the prices set forth for each item of work in this proposal. Thank you for your time and interest in the City of Hermosa Beach. Sincerely, Richard D. Morgan, P.E. Director of Public Works/City Engineer 3 267 PART2 SECTION 1 INSTRUCTIONS TO PROPOSERS 2.1.1 GENERAL Proposals for this project shall be submitted on the blank forms furnished herewith. When presented, they must be completely filled out in the manner and form indicated therein: (1) showing the proposed prices clearly and legibly in both words and numerals, and (2) properly signed by the proposer, whose address and telephone number shall also be shown. The City Council reserves the right to reject any proposal if all of the above information is not furnished. Each proposal submitted shall be presented under sealed cover, and must be filed prior to the time, and at the place, designated in the Notice Inviting Proposals. 2.1.2 EXAMINATION. SPECIFICATIONS, AND SITE OF THE WORK The specifications to which the proposal forms refer are on file and open to inspection in the office of the Director of Public Works. Proposers must satisfy themselves by personal examination of the location of the proposed work and by such other means, as they may prefer as to the actual conditions and requirements of the work. Proposers shall not at any time after submission of the proposal dispute, complain, or assert that there was any misunderstanding in regard to the nature or amount of work to be done. 2.1.3 ESTIMATED QUANTITIES The quantities shown in the proposal form, and in the estimate included in the specifications, are approximate only, and give a general indication of the amount of work or material to be performed or furnished. They are the quantities, which will be used as a basis for comparison of the proposals. 2.1.4 DISQUALIFICATION OF PROPOSALS More that one proposal for the same work from any individual, firm, partnership, corporation, or association under the same or different names will not be accepted, and reasonable grounds for believing that any proposer is interested in more than one proposal for the work will be cause for rejecting all proposals in which such proposer is interested. Proposals in which the prices are obviously unbalanced, and those, which are incomplete or show any alteration of form or contain any additions or conditional or alternate proposals that are not called for or otherwise permitted, may be rejected. A proposal in which the signature of the proposer has been omitted will be rejected. 2.1.5 AWARD OF AGREEMENT The award of the agreement, if it is awarded, will be made to the most qualified and responsible proposer whose proposal complies with all the prescribed requirements and who proposes the lowest price for all of the proposal items. Until award is made, the City reserves the right to reject any or all proposals and to waive technical errors or discrepancies if to do so is deemed to best serve the interests of the City. In no event will an award be made until all necessary investigations are made as to the responsibility of the proposer to whom it is proposed to make such award. 4 268 2.1.6 PROPOSAL FIGURES In case of a discrepancy between words and figures, the words shall prevail. The proposal price shown in words shall take precedence over the price shown for the total should any discrepancy exist. An alteration of, or addition to, the form of proposal, which qualifies the proposal, will invalidate it. No mention shall be made of Sales Tax or Use Tax; all proposal prices submitted will be considered as including such tax. 2.1. 7 EXECUTION OF AGREEMENT If awarded the agreement, the undersigned hereby agrees to sign said agreement and furnish the necessary certificate of insurance within ten (1 0) days of the Notice of Award of said agreement, and to begin work as of the date on the Notice to Proceed from the City of Hermosa Beach, California. 2.1.8 INSTRUCTIONS FOR SIGNING PROPOSAL AND AGREEMENT CORPORATIONS Give the name of Corporation. Signatures: President or Vice-President and Secretary or Assistant Secretary. Affix Corporation seal and Notary's acknowledgment. Others may sign for the corporation if the Director of Public Works has been furnished a certified copy of a resolution of the Corporation Board of Directors authorizing them to do so. PARTNERSHIPS Signatures: All members of partnership, one may sign if the Director of Public Works has a copy of the authorization. Affix Notary's acknowledgment. JOINT VENTURES Give the names of the joint ventures. Signatures: All members of partnership, one may sign if the Director of Public Works has a copy of the authorization. Affix Notary's acknowledgment. INDIVIDUALS Signature: The individual. Affix Notary's acknowledgment. Another may sign for the individual if the Director of Public Works has been furnished a certified power-of-attorney authorizing the other person to sign. FICTITIOUS NAMES Show fictitious name. Satisfy all pertinent requirements shown above. 5 269 2.1.10 QUALIFICATIONS OF PROPOSERS All proposers hereunder must furnish satisfactory evidence to the City that they have operated or are presently operating a street sweeping service of the type similar to the operation described in this document and that they have successfully done so for a municipality for a minimum of five (5) years. In order to determine the eligibility of the proposers, all of them must list all terminated or existing sweeping services (existing ones will be subject to inspection by City personnel). As an attachment to the proposal, all proposers shall include detailed inventories of their equipment and all accessories by type, by model, year of manufacture, and anticipated remaining useful life as of the date of the inventory. All leased equipment shall be listed separately; the time remaining of each leased machine and option of renewal, where applicable, shall be stated. All equipment proposed to accomplish the work under this agreement must be available upon the effective date of the commencement of operations. Any new equipment proposed to be acquired shall be described in the schedule attached to the proposal document stating the scheduled time in calendar days such equipment will be in operation and shall include copies of delivery guaranties by manufacturers. All proposers shall be required to demonstrate to the satisfaction of the City that they have adequate financial resources, experienced personnel, and expertise to perform the services required by these specifications. No agreement will be awarded to any proposer who, as determined by the City, has an unsatisfactory performance record or inadequate experience, or who at any time lacks the necessary capital, organization, and equipment to conduct and complete the services in strict accordance with the specifications. All proposers shall be held to comply with all laws of the State of California, the rules and regulations promulgated thereunder, the applicable ordinances, the rules and regulations of the City of Hermosa Beach, the ordinances and rules and regulations of the County of Los Angeles, and all other provisions of law. The CONTRACTOR shall meet all the requirements of the legislation and regulations, including any subsequent changes. All power sweeping equipment (including Strand sweeper) must use alternative fuel in accordance with South Coast Air Quality Management District Rule No. 1186.1. 6 270 PART3 SECTION 1 PROPOSAL TO THE CITY COUNCIL SWEEPING/CLEANING OF STREETS, ALLEYS, WALKSTREETS, PARKING LOTS AND THE PIER IN HERMOSA BEACH 3.1.1 PROPOSAL The undersigned, as proposer, declares that: (1) this proposal is made without collusion with any other person, firm or corporation, and that the only persons or parties interested as principals are those named· herein; (2) proposer has carefully examined the specifications, instructions to proposers, proposal, notice to Contractors and all other information furnished therefore and the sites of the proposed work; and (3) proposer has investigated and is satisfied as to the conditions to be encountered, the character, quality and quantities of work to be performed and materials to be furnished. Furthermore, proposer agrees that submission of this proposal shall be conclusive evidence that such examination and investigation have been made and agrees, in the event this agreement is awarded to proposer, to enter into a agreement with the City Council of the City of Hermosa Beach to perform said proposed work in accordance with the terms of the specifications, in the time and manner therein prescribed, and to furnish or provide all materials, labor, tools, equipment, apparatus and other means necessary to do said work, except such thereof as may otherwise be furnished or provided under the terms of said specifications, for the following stated prices as submitted and attached hereto. 3.1.2 REQUIRED PROPOSAL DOCUMENTS The proposer has submitted a complete Proposal, which includes all of the following documents: Proposal to the City Council Non-Collusion Affidavit Agreement Contractor's Industrial Safety Record Designation of Sub-Contractors Contractor's Hourly Cost Proposer's Itemized Cost Breakdown by Year References 7 271 3.2.1 AFFIDAVIT PART3 SECTION 2 NON-COLLUSION AFFIDAVIT The undersigned in submitting a proposal for performing the following work by agreement, being duly sworn, deposes and says: That he/she has not, either directly or indirectly, entered into any agreement, participated in any collusion, or otherwise taken any action in restraint of free competitive proposing in connection with such agreement. City Project Name: SWEEPING/CLEANING OF STREETS, ALLEYS, WALKSTREETS, PARKING LOTS AND THE PIER IN HERMOSA BEACH Signature of Proposer Business Address Subscribed and sworn to before me this. ___ day of 2010. Notary Public in and for the County of Los Angeles, State of California My Commission expires. ______ .20 . 8 272 PART3 SECTION 3 CONTRACTOR'S INDUSTRIAL SAFETY RECORD 3.3.1 SAFETY RECORD To be submitted with each proposal to agreement for: 1. 2. 3.* 4.* 5.* Project Identification--------------------- Proposal Date __________________ _ The information must include all work undertaken in the State of California by the proposer, partnership, joint venture or corporation that any principal of the proposer participated in as a principal or owner for the last five calendar years and the current calendar year prior to the date of proposal submittal. Separate information shall be submitted for each particular partnership, joint venture, corporate or individual proposer. The proposer may attach any additional information or explanation of data, which he/she would like taken into consideration in evaluating the safety record. An explanation must be attached of the circumstances surrounding any and all fatalities. NAMEOFCONTRACTOR: ----------------------------------- Record last Five (5) Full Years YEAR OF RECORD 2005 2006 2007 2008 2009 No. of Contracts Total dollar amount of contracts (in thousands of dollars) No. of Fatalities No of lost workday cases No. of lost workday cases involving permanent transfer to another job or termination of employment 6.* No. of lost workdays *The information required for these items is the same as required for columns 3 to 6, Code 10, Occupational Injuries, Summary of Occupational Injuries and Illnesses, OSHA No. 102. 9 273 PART3 SECTION 4 CONTRACTOR'S HOURLY COST 3.5.1 HOURLY COSTS-This section must be filled in completely Hourly Costs for labor and equipment are provided below: 3.5.2 LABOR CLASSIFICATION!TITLE HOURLY COST MARKUP Laborer Crewleader Supervisor Equipment Operator Others (please list) 3.5.3 EQUIPMENT EQUIPMENT HOURLY COST MARKUP TYPE: 10 TOTAL TOTAL 274 PART3 SECTION 5 COST PROPOSAL 3.6.1 ANNUAL COSTS OF SWEEPING/CLEANING OF STREETS, ALLEYS, WALKSTREETS, PARKING LOTS AND THE PIER IN HERMOSA BEACH NAME OF CONTRACTOR: 11/1/10 thru 6/30/11 7/1/11 thru 6/30/12 7/1/12 thru 6/30/13 TOTAL COST PROPOSAL ITEMS Monthly Annual Cost Monthly Cost Annual Monthly Annual Cost Cost Cost Cost 1 Sweep Downtown 5 days/week 2 Sweep Strand 7 days/week 3 Clean City Pier 5 days per/week 4 Morning Porter Service 5 days/week Downtown 5 Afternoon Porter Saturdays/ Service Downtown Sundays/ Holidays 6 Clean dumpster 1 day/week enclosures in Lots A, B and D 7 Sweep all streets, 1 day/week alleys, Walkstreets and excluding parking lots not included holidays in Downtown area 8 Clean\sweep Upper 5 days/week, Pier Avenue including holidays 9 Commercial Sidewalk Quarterly Cleaning 10 Parking Structure Per Section 5.1.4a TOTAL .. Note: The agreement will be awarded to the lowest responsive and responsible proposer based on the total amount proposed for all above bid items for three (3) consecutive years. The cost loading of individual work items must be able to stand alone and not be dependent upon other items of work, because from time to time during the life of the agreement the City reserves the option to change the scope of services based upon prices for each work item set forth above in this proposal. Total cost in writing: Proposer's Signature: __________________ Date ___ _ 11 275 PART3 SECTION 6 ADDENDA The undersigned acknowledges the receipt of the following addenda to the specifications. Addendum No. Date Addendum No. Date CONTRACTOR SIGNATURE 12 276 PART3 SECTION 8 SIGNATURE PAGE The information herewith stated was compiled from the records that are available to me at this time and I declare under penalty of perjury that the information is true, and accurate within the limitations of those records. Name of Proposer Signature Address City Zip Code Telephone 13 277 PART3 SECTION 9 REFERENCES SUBMIT SEPARATELY A LIST OF ALL CONTRACTS IN FORCE AS OF THIS DATE, INCLUDING CONTACT PERSON, AMOUNT OF THE CONTRACT AND TELEPHONE NUMBER. 1. 2. 3. 4. 5. 14 278 PART3 SECTION 10 AGREEMENT SWEEPINGICLEANING OF STREETS, ALLEYS, WALKSTREETS, PARKING LOTS AND THE PIER IN HERMOSA BEACH This Agreement for SWEEPING/CLEANING OF STREETS, ALLEYS, WALKSTREETS, PARKING LOTS AND THE PIER IN HERMOSA BEACH-Street Cleaning Services ("Agreement") is made on this _day of 2010, at Hermosa Beach, California, by and between the City of Hermosa Beach, a municipal corporation, 1315 Valley Drive, Hermosa Beach, California 90254 (hereinafter referred to as the "CITY") and (Hereinafter referred to as the "CONTRACTOR"). RECITALS A. CITY proposes to contract for Street Cleaning Services for all public owned properties as set forth below in this Agreement; B. CONTRACTOR is willing to perform such services and has the necessary qualifications by reason of experience, preparation, and organization to provide the required services. C. NOW, THEREFORE, the CITY and the CONTRACTOR mutually agree as follows: 1. SERVICES. CONTRACTOR shall perform those services set forth in PART 5 -SPECIAL PROVISIONS which is attached hereto and incorporated herein by reference. CITY reserves the right to change the scope of services, including the items and frequency of work to be performed, at any time in its sole discretion during the term of this Agreement, and to modify the payment due CONTRACTOR accordingly, based on the prices set forth in CONTRACTOR'S proposal. 2. TIME OF PERFORMANCE. The term of this Agreement shall be for the time period beginning November 1, 2010 and ending on June 30, 2013. 3. PAYMENT FOR SERVICES. CONTRACTOR shall be compensated in an amount not to exceed . Compensation shall under no circumstances be increased except by written amendment of this Agreement. CONTRACTOR shall be paid within thirty (30) days of presentation of an invoice to CITY for services performed to CITY's satisfaction. CONTRACTOR shall submit invoices monthly describing the services performed, the date services were performed, a description of reimbursable costs, and any other information requested by CITY. 4. AGREEMENT ADMINISTRATION. 4.1. CITY's Representative. Unless otherwise designated in writing Mike Flaherty, Maintenance Supervisor, shall serve as the CITY's representative for the administration of the project. All activities performed by the CONTRACTOR shall be coordinated with this person. 4.2. Manager-in-Charge. For the CONTRACTOR shall be in charge of the project on all matters relating to this Agreement and any agreement or approval made by her/him shall be binding on the CONTRACTOR. The Manager-in- Charge shall not be replaced without the written consent of the CITY. 15 279 4.3. Responsibilities of the CITY. The CITY shall provide all relevant documentation in its possession to the CONTRACTOR upon request in order to minimize duplication of efforts. The CITY's staff shall work with the CONTRACTOR as necessary to facilitate performance of the services. 4.4. Personnel. The CONTRACTOR represents that it has or will secure at its own expense all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by the CONTRACTOR or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. The CONTRACTOR reserves the right to determine the assignment of its own employees to the performance of the CONTRACTOR's services under this Agreement, but the CITY reserves the right, for good cause, to require the CONTRACTOR to exclude any employee from performing services on the CITY's premises. 5. TERMINATION. 5.1. Termination for Convenience. Either party may terminate this Agreement without cause and in its sole discretion at any time by giving the other party thirty (30) days' written notice of such termination. In the event of such termination, the CONTRACTOR shall cease services as of the date of termination and shall be compensated for services performed to the CITY's satisfaction up to the date of tenmination. 5.2. Termination for Cause. All terms, provisions, and specifications of this Agreement are material and binding, and failure to perform any material portion of the work described herein shall be considered a breach of this Agreement. Should the Agreement be breached in any manner, the CITY may, at its option, terminate the Agreement not less than five (5) days after written notification is received by the CONTRACTOR to remedy the violation within the stated time or within any other time period agreed to by the parties. In the event of such termination, the CONTRACTOR shall be responsible for any additional costs incurred by the CITY in securing the services from another CONTRACTOR. 6. INDEMNIFICATION. CONTRACTOR shall indemnify, defend with counsel approved by City, and hold harmless City, its officers, officials, employees 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 CONTRACTOR's performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole negligence or willful misconduct of the City. 7. INSURANCE REQUIREMENTS. 7 .1. The CONTRACTOR, at the CONTRACTOR's own cost and expense, shall procure and maintain, for the duration of the agreement, the following insurance policies: 7.1 .1. Workers' Compensation Coverage. The CONTRACTOR shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for its employees in accordance with the laws of the State of California. In addition, the CONTRACTOR shall require any and every subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non-renewal of all Workers' Compensation policies must be received by the CITY at least thirty 16 280 (30) days prior to such change. The insurer shall agree to waive all rights of subrogation against the CITY, its officers, agents, employees, and volunteers for losses arising from work performed by the CONTRACTOR for City. 7.1.2. General Liability Coverage. The CONTRACTOR shall maintain commercial general liability insurance in an amount of not less than one million dollars ($1 ,000,000) per occurrence for bodily injury, personal injury, and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. 7 .1.3. Automobile Liability Coverage. The CONTRACTOR shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the CONTRACTOR arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired, and non-owned vehicles, in an amount of not less than three hundred thousand dollars ($1 ,000,000) combined single limit for each occurrence. 7 .2. Endorsements. Each general liability and automobile liability insurance policy shall be issued by insurers possessing a Best's rating of no less than A:VII and shall be endorsed with the specific language of Section 7 .2.1 below. 7 .2.1. "The CITY, its elected or appointed officers, officials, employees, agents, and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the CONTRACTOR, including materials, parts, or equipment furnished in connection with such work or operations." 7.2.2. This policy shall be considered primary insurance as respects the CITY, its elected or appointed officers, officials, employees, agents, and volunteers. Any insurance maintained by the CITY, including any self-insured retention the CITY may have shall be considered excess insurance only and shall not contribute with this policy. 7 .2.3. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. 7 .2.4. The insurer waives all rights of subrogation against the CITY, its elected or appointed officers, officials, employees, or agents. 7 .2.5. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents, or volunteers. 7.2.6. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days' written notice has been received by the CITY. 7 .3. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the CITY's option, the CONTRACTOR shall demonstrate financial capability for payment of such deductibles or self-insured retentions. 17 281 7 .4. Certificates of Insurance. The CONTRACTOR shall provide certificates of insurance with original endorsements to the CITY as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the CITY on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the CITY at all times during the term of this Agreement. 7 .5. Failure to Procure Insurance. Failure on the part of the CONTRACTOR to procure or maintain required insurance shall constitute a material breach of agreement under which the CITY may terminate this Agreement pursuant to Section 6.2 above. 8. ASSIGNMENT AND SUBCONTRACTING. The parties recognize that a substantial inducement to the CITY for entering into this Agreement is the professional reputation, experience, and competence of the CONTRACTOR. Assignments of any or all rights, duties, or obligations of the CONTRACTOR under this Agreement will be permitted only with the express consent of the CITY. The CONTRACTOR shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of the CITY. If the CITY consents to such subcontract, the CONTRACTOR shall be fully responsible to the CITY for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between the CITY and subcontractor nor shall it create any obligation on the part of the CITY to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise is required by law. 9. COMPLIANCE WITH LAWS, CODES, ORDINANCES, AND REGULATIONS. The CONTRACTOR shall use the standard of care in its profession to comply with all applicable federal, state, and local laws, codes, ordinances, and regulations. 9.1. Taxes. The CONTRACTOR agrees to pay all required taxes on amounts paid to the CONTRACTOR under this Agreement, and to indemnify and hold the CITY harmless from any and all taxes, assessments, penalties, and interest asserted against the CITY by reason of the independent CONTRACTOR relationship created by this Agreement. In the event that the CITY is audited by any Federal or State agency regarding the independent CONTRACTOR status of the CONTRACTOR and the audit in any way fails to sustain the validity of a wholly independent CONTRACTOR relationship between the CITY and the CONTRACTOR. then the CONTRACTOR agrees to reimburse the CITY for all costs, including accounting and attorneys' fees, arising out of such audit and any appeals relating thereto. 9.2. Workers' Compensation Law. The CONTRACTOR shall fully comply with the workers' compensation law regarding the CONTRACTOR and the CONTRACTOR's employees. The CONTRACTOR further agrees to indemnify and hold the CITY harmless from any failure of the CONTRACTOR to comply with applicable workers' compensation laws. The CITY shall have the right to offset against the amount of any compensation due to the CONTRACTOR under this Agreement any amount due to the CITY from the CONTRACTOR as a result of the CONTRACTOR's failure to promptly pay to the CITY any reimbursement or indemnification arising under this Section. 9.3. Licenses. The CONTRACTOR represents and warrants to the CITY that it has all licenses, permits, qualifications, insurance, and approvals of whatsoever nature which are legally required of the CONTRACTOR to practice its profession. The CONTRACTOR represents and warrants to the CITY that the CONTRACTOR shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, insurance, and approvals which are legally required of the CONTRACTOR to practice its profession. The CONTRACTOR shall maintain a City of Hermosa Beach business license, if required under CITY ordinance. 18 282 10. CONFLICT OF INTEREST. The CONTRACTOR confirms that it has no financial, contractual, or other interest or obligation that conflicts with or is harmful to performance of its obligations under this Agreement. The CONTRACTOR shall not during the term of this Agreement knowingly obtain such an interest or incur such an obligation, nor shall it employ or subcontract with any person for performance of this Agreement who has such incompatible interest or obligation. 11. NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY. The CONTRACTOR represents and agrees that it does not and will not discriminate against any employee or applicant for employment because of race, religion, color, medical condition, sex, sexual orientation and/or gender identity, national origin, political affiliation or opinion, or pregnancy or pregnancy-related condition. 12. RECORDS AND AUDITS. The CONTRACTOR shall maintain accounts and records, including personnel, property, and financial records, adequate to identify and account for all costs pertaining to this Agreement and such other records as may be deemed necessary by the CITY or any authorized representative, and will be retained for three years after the expiration of this Agreement. All such records shall be made available for inspection or audit by the CITY at any time during regular business hours. 13. OWNERSHIP OF DOCUMENTS. It is understood and agreed that the CITY shall own all documents and other work product of the CONTRACTOR, except the CONTRACTOR's notes and work papers, which pertain to the work performed under this Agreement. The CITY shall have the sole right to use such materials in its discretion and without further compensation to the CONTRACTOR, but any re-use of such documents by the CITY on any other project without prior written consent of the CONTRACTOR shall be at the sole risk of the CITY. The CONTRACTOR shall at its sole expense provide all such documents to the CITY upon request. 14. INDEPENDENT CONTRACTOR. The CONTRACTOR is and shall at all times remain as to the CITY a wholly independent CONTRACTOR. Neither the CITY nor any of its agents shall have control over the conduct of the CONTRACTOR or any of the CONTRACTOR's employees or agents, except as herein set forth. The CONTRACTOR 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. The CONTRACTOR shall have no power to incur any debt, obligation, or liability on behalf of the CITY or otherwise act on behalf of the CITY as an agent. 15. NOTICE. All Notices permitted or required under this Agreement shall be in writing, and shall be deemed made when delivered to the applicable party's representative as provided in this Agreement. Additionally, such notices may be given to the respective parties at the following addresses, or at such other addresses as the parties may provide in writing for this purpose. Such notices shall be deemed made when personally delivered or when mailed forty-eight (48) hours after deposit in the U.S. mail, first-class postage prepaid, and addressed to the party at its applicable address. 19 283 CITY OF HERMOSA BEACH 1315 Valley Drive Hermosa Beach, CA 90254 Attention: Richard Morgan, Director Public Works Department CONTRACTOR: Attention: ________ _ 16. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. 17. ENTIRE AGREEMENT; MODIFICATION. This Agreement supersedes any and all other agreements, either oral or written, between the parties, and contains all of the covenants and agreements between the parties. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any parties, which are not embodied herein. Any agreement, statement, or promise not contained in the Agreement, and any modification to the Agreement, will be effective only if signed by both parties. 18. ATTORNEYS' FEES. In any action brought to declare the rights granted herein or to enforce any of the terms of this Agreement, the prevailing party shall be entitled to an award of reasonable attorneys' fees in an amount determined by the court. 19. WAIVER. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this agreement. Payment of any invoice by the CITY shall not constitute a waiver of the CITY's right to obtain correction or replacement of any defective or noncompliant work product. 20. EXECUTION. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart. 21. AUTHORITY TO ENTER AGREEMENT. The CONTRACTOR has all requisite power and authority to conduct its business and to execute, deliver, and perform this Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party. 20 284 IN WITNESS WHEREOF, the parties have executed this Agreement the __ day of __ , 2010. CITY OF HERMOSA BEACH: Peter Tucker, Mayor ATTEST: City Clerk APPROVE AS TO FORM Michael Jenkins CONTRACTOR TITLE 21 285 COMPENSATION INSURANCE CERTIFICATE I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this agreement. COMPANY SIGNATURE TITLE DATE 22 286 COMPENSATION INSURANCE CERTIFICATE I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this agreement. •• m~ •• ~__, SIGNATURE Executive Officer TITLE May 24, 2011 DATE . ··:.,.._ 22 287 PART4 GENERAL PROVISIONS SECTION 1 DEFINITION OF TERMS 4.1.1 DEFINITIONS Change Order-Any modification of the Agreement made after the Formal Agreement is executed. City-The City Council of Hermosa Beach or its designated representative. CONTRACTOR -A person or organization identified as such in the Agreement and is referred to throughout the Agreement Document. The term CONTRACTOR means the CONTRACTOR or his/her authorized representative. Daily-Refers to normal hours of work from Monday through Sunday with the exception of holidays. Days -When used to designate a period of time, days shall be in reference to calendar days, unless otherwise specified. Director of Public Works -That person designated by City Council as Director of Public Works or his/her designated representative. Specifications -The written directions, provisions and requirements pertaining to the work and to the quantities and qualities of labor, equipment and materials furnished under this agreement. Subcontractor -An individual, firm or corporation supplying labor or labor and materials for work under this agreement and whose contractual relationship is with the CONTRACTOR and not the City. Supplemental Agreements -Written agreements covering exhibits, schedules, drawings, instructions, alterations, amendments or extensions of the Agreement. Refuse -Shall mean all types of debris including dirt, rock, paper, and leaves. Business District -Shall be deemed to mean that territory described as commercial, industrial or manufacturing districts in the zoning may be territory of the City of Hermosa Beach; and also all that territory abutting upon any public highway or street within said City, when fifty percent (50%) or more of the frontage thereon for a distance of three hundred (300) feet or more is now, or may hereafter be, occupied by buildings in use for business purposes. Residence District-Shall include all that portion of said City not included within the business district as herein detained, including also such residences or dwelling structures as may exist in such district or any other area of the City of Hermosa Beach. Shall-Shall be mandatory. May-Shall be permissive. Working Day-Shall mean Monday through Sunday. 23 288 Sign Route -Shall mean any street or alley posted with signs specifying a particular day for street sweeping. Street-Shall mean any dedicated street in the City of Hermosa Beach. Alley-Shall mean any dedicated alley in the City of Hermosa Beach. Parking Lot-Shall mean any City-owned parking lot. Median Island-Shall mean the raised portion of the street between opposing lanes of traffic. Regular Sweeping -Shall mean sweeping of streets, alleys, parking lots, medians and other areas at pre-arranged scheduled intervals. Walkway-Shall mean any City-owned walkway. Extra work-Shall be defined in Section 5.1.5. Barriers-Shall include warning signs, cones and other safety warning devices. 24 289 PART3 SECTION 10 AGREEMENT SWEEPING/CLEANING OF STREETS, ALLEYS, WALKSTREETS, PARKING LOTS AND THE PIER IN HERMOSA BEACH This Agreement for SWEEPING/CLEANING OF STREETS, ALLEYS, WALKSTREETS, PARKING LOTS AND THE PIER IN HERMOSA BEACH-Street Cleaning Services ("Agreement") is made on this 12th day of October 2010, at Hermosa Beach, California, by and between the City of Hermosa Beach, a municipal corporation, 1315 Valley Drive, Hermosa Beach, California 90254 (hereinafter referred to as the "CITY") and Arakelian Enterprises, Inc. (Hereinafter referred to as the "CONTRACTOR"). RECITALS A. CITY proposes to contract for Street Cleaning Services for all public owned properties as set forth below in this Agreement; B. CONTRACTOR is willing to perform such services and has the necessary qualifications by reason of experience, preparation, and organization to provide the required services. C. NOW, THEREFORE, the CITY and the CONTRACTOR mutually agree as follows: 1. SERVICES. CONTRACTOR shall perform those services set forth in PART 5 -SPECIAL PROVISIONS which is attached hereto and incorporated herein by reference. CITY reserves the right to change the scope of services, including the items and frequency of work to be performed, at any time in its sole discretion during the term of this Agreement, and to modify the payment due CONTRACTOR accordingly, based on the prices set forth in CONTRACTOR'S proposal. 2. TIME OF PERFORMANCE. The term of this Agreement shall be for the time period beginning November 1, 2010 and ending on June 30, 2013. 3. PAYMENT FOR SERVICES. CONTRACTOR shall be compensated in an amount not to exceed $681,807.44. Compensation shall under no circumstances be increased except by written amendment of this Agreement. CONTRACTOR shall be paid within thirty (30) days of presentation of an invoice to CITY for services performed to CITY's satisfaction. CONTRACTOR shall submit invoices monthly describing the services performed, the date services were performed, a description of reimbursable costs, and any other information requested by CITY. 4. AGREEMENT ADMINISTRATION. 4.1. CITY's Representative. Unless otherwise designated in writing, the Maintenance Supervisor shall serve as the CITY's representative for the administration of the project. All activities performed by the CONTRACTOR shall be coordinated with this person. 4.2. Manager-in-Charge. For the CONTRACTOR Garv Clifford. COO shall be in charge of the project on all matters relating to this Agreement and any agreement or approval made by her/him shall be binding on the CONTRACTOR. The Manager-in- Charge shall not be replaced without the written consent of the CITY. 4.3. Responsibilities of the CITY. The CITY shall provide all relevant documentation in its possession to the CONTRACTOR upon request in order to minimize duplication 15 290 4. 3. Responsibilities of the CITY. The CITY shall provide all relevant documentation in its possession to the CONTRACTOR upon request in order to minimize duplication of efforts. The CITY's stall shall work with the CONTRACTOR as necessary to facilitate performance of the services. 4.4. Personnel. The CONTRACTOR represents that it has or will secure at its own expense all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by the CONTRACTOR or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. The CONTRACTOR reserves the right to determine the assignment of its own employees to the performance of the CONTRACTOR's services under this Agreement, but the CITY reserves the right, for good cause, to require the CONTRACTOR to exclude any employee from performing services on the CITY's premises. 5. TERMINATION. 5.1. Termination for Convenience. Either party may terminate this Agreement without cause and in its sole discretion at any time by giving the other party thirty (30) days' written notice of such termination. In the event of such termination, the CONTRACTOR shall cease services as of the date of termination and shall be compensated for services performed to the CITY's satisfaction up to the date of termination. 5.2. Termination for Cause. All terms, provisions, and specifications of this Agreement are material and binding, and failure to perform any material portion of the work described herein shall be considered a breach of this Agreement. Should the Agreement be breached in any manner, the CITY may, at its option, terminate the Agreement not less than five (5) days after written notification is received by the CONTRACTOR to remedy the violation within the stated time or within any other time period agreed to by the parties. In the event of such termination, the CONTRACTOR shall be responsible for any additional costs incurred by the CITY in securing the services from another CONTRACTOR. 6. INDEMNIFICATION. CONTRACTOR shall indemnify, defend with counsel approved by City, and hold harmless City, its officers, officials, employees 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 CONTRACTOR's performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole negligence or willful misconduct of the City. 7. INSURANCE REQUIREMENTS. 7.1. The CONTRACTOR, at the CONTRACTOR's own cost and expense, shall procure and maintain, for the duration of the agreement, the following insurance policies: 7.1.1. Workers' Compensation Coverage. The CONTRACTOR shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for its employees in accordance with the laws of the State of California. In addition, the CONTRACTOR shall require any and every subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non-renewal of all Workers' Compensation policies must be received by the CITY at least thirty 16 291 7.4. Certificates of Insurance. The CONTRACTOR shall provide certificates of insurance with original endorsements to the CITY as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the CITY on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the CITY at all times during the term of this Agreement. 7.5. Failure to Procure Insurance. Failure on the part of the CONTRACTOR to procure or maintain required insurance shall constitute a material breach of agreement under which the CITY may terminate this Agreement pursuant to Section 6.2 above. 8. ASSIGNMENT AND SUBCONTRACTING. The parties recognize that a substantial inducement to the CITY for entering into this Agreement is the professional reputation, experience, and competence of the CONTRACTOR. Assignments of any or all rights, duties, or obligations of the CONTRACTOR under this Agreement will be permitted only with the express consent of the CITY. The CONTRACTOR shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of the CITY. If the CITY consents to such subcontract, the CONTRACTOR shall be fully responsible to the CITY for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between the CITY and subcontractor nor shall it create any obligation on the part of the CITY to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise is required by law. 9. COMPLIANCE WITH LAWS, CODES, ORDINANCES, AND REGULATIONS. The CONTRACTOR shall use the standard of care in its profession to comply with all applicable federal, state, and local laws, codes, ordinances, and regulations. 9.1. Taxes. The CONTRACTOR agrees to pay all required taxes on amounts paid to the CONTRACTOR under this Agreement, and to indemnify and hold the CITY harmless from any and all taxes, assessments, penalties, and interest asserted against the CITY by reason of the independent CONTRACTOR relationship created by this Agreement. In the event that the CITY is audited by any Federal or State agency regarding the independent CONTRACTOR status of the CONTRACTOR and the audit in any way fails to sustain the validity of a wholly independent CONTRACTOR relationship between the CITY and the CONTRACTOR, then the CONTRACTOR agrees to reimburse the CITY for all costs, including accounting and attorneys' fees, arising out of such audit and any appeals relating thereto. 9.2. Workers' Compensation Law. The CONTRACTOR shall fully comply with the workers' compensation law regarding the CONTRACTOR and the CONTRACTOR's employees. The CONTRACTOR further agrees to indemnify and hold the CITY harmless from any failure of the CONTRACTOR to comply with applicable workers' compensation laws. The CITY shall have the right to offset against the amount of any compensation due to the CONTRACTOR under this Agreement any amount due to the CITY from the CONTRACTOR as a result of the CONTRACTOR's failure to promptly pay to the CITY any reimbursement or indemnification arising under this Section. 9.3. Licenses. The CONTRACTOR represents and warrants to the CITY that it has all licenses, permits, qualifications, insurance, and approvals of whatsoever nature which are legally required of the CONTRACTOR to practice its profession. The CONTRACTOR represents and warrants to the CITY that the CONTRACTOR shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, insurance, and approvals which are legally required of the CONTRACTOR to practice its profession. The CONTRACTOR shall maintain a City of Hermosa Beach business license, if required under CITY ordinance. 18 292 10. CONFLICT OF INTEREST. The CONTRACTOR confirms that it has no financial, contractual, or other interest or obligation that conflicts with or is harmful to performance of its obligations under this Agreement. The CONTRACTOR shall not during the term of this Agreement knowingly obtain such an interest or incur such an obligation, nor shall it employ or subcontract with any person for performance of this Agreement who has such incompatible interest or obligation. 11. NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY. The CONTRACTOR represents and agrees that it does not and will not discriminate against any employee or applicant for employment because of race, religion, color, medical condition, sex, sexual orientation and/or gender identity, national origin, political affiliation or opinion, or pregnancy or pregnancy-related condition. 12. RECORDS AND AUDITS. The CONTRACTOR shall maintain accounts and records, including personnel, property, and financial records, adequate to identify and account for all costs pertaining to this Agreement and such other records as may be deemed necessary by the CITY or any authorized representative, and will be retained for three years after the expiration of this Agreement. All such records shall be made available for inspection or audit by the CITY at any time during regular business hours. 13. OWNERSHIP OF DOCUMENTS. It is understood and agreed that the CITY shall own all documents and other work product of the CONTRACTOR, except the CONTRACTOR's notes and work papers, which pertain to the work performed under this Agreement. The CITY shall have the sole right to use such materials in its discretion and without further compensation to the CONTRACTOR, but any re-use of such documents by the CITY on any other project without prior written consent of the CONTRACTOR shall be at the sole risk of the CITY. The CONTRACTOR shall at its sole expense provide all such documents to the CITY upon request. 14. INDEPENDENT CONTRACTOR. The CONTRACTOR is and shall at all times remain as to the CITY a wholly independent CONTRACTOR. Neither the CITY nor any of its agents shall have control over the conduct of the CONTRACTOR or any of the CONTRACTOR's employees or agents, except as herein set forth. The CONTRACTOR 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. The CONTRACTOR shall have no power to incur any debt, obligation, or liability on behalf of the CITY or otherwise act on behalf of the CITY as an agent. 15. NOTICE. All Notices permitted or required under this Agreement shall be in writing, and shall be deemed made when delivered to the applicable party's representative as provided in this Agreement. Additionally, such notices may be given to the respective parties at the following addresses, or at such other addresses as the parties may provide in writing for this purpose. Such notices shall be deemed made when personally delivered or when mailed forty-eight (48) hours after deposit in the U.S. mail, first-class postage prepaid, and addressed to the party at its applicable address. 19 293 CITY OF HERMOSA BEACH 1315 Valley Drive Hermosa Beach, CA 90254 Attention: Richard Morgan, Director Public Works Department CONTRACTOR: Arakelian Enterprises, Inc. DBA Athens Services P .0. Box 60009 City of Industry, California 91716 Attention: Contract Administration 16. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. 17. ENTIRE AGREEMENT; MODIFICATION. This Agreement supersedes any and all other agreements, either oral or written, between the parties, and contains all of the covenants and agreements between the parties. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any parties, which are not embodied herein. Any agreement, statement, or promise not contained in the Agreement, and any modification to the Agreement, will be effective only if signed by both parties. 18. ATTORNEYS' FEES. In any action brought to declare the rights granted herein or to enforce any of the terms of this Agreement, the prevailing party shall be entitled to an award of reasonable attorneys' fees in an amount determined by the court. 19. WAIVER. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this agreement. Payment of any invoice by the CITY shall not constitute a waiver of the CITY's right to obtain correction or replacement of any defective or noncompliant work product. 20. EXECUTION. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart. 21. AUTHORITY TO ENTER AGREEMENT. The CONTRACTOR has all requisite power and authority to conduct its business and to execute, deliver, and perform this Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party. 20 294 IN WITNESS WHEREOF, the parties have executed this Agreement the 12th day of Oct , 2010. Executive Officer 21 295 A REGISTRAR • RECORDE Your Rnh,ro Mr~ilin:J Addross Arakelian Enterprises, Inc. ~, y """'"" P.O. Box 60009 City: Cily of Industry S!sh:: CA Zip Colle: 9171€\-0009 1 0 Firs! Filing 121 Rtmewal r:ilin!J Check onil only FICTITIOUS BUSINESS NAME STATEMENT THE FOLLOWING PERSON(S) IS (ARE) DOING BUSINESS AS: (AUacll alldilional pages if required) riolilious Busino.s «amu(s) '·Community Disposal Company 2 'Athens Services ,------,-··------~.....,.--,--,---,----- 1 Articles of Incorporation or Org<:~niz:afton Nlunbor (if <TJ!plko!:JJe) __ 2· Athens Qisposal Company ____ ..... ___ ..........J!:'"'oN A0540259 SUeet Address, City & State of Punctpal Place of Busmes~ 10 Ctllifornta W.O. Box alono not acr.e;>tab!e) }_ __ 140'!?_\{alley Blvd., City of lndus~r.~-'-A'---'-91_7-'4-'-6·--c:---::----,----------------· Full name o( Registrant I Corpor<~lion I limited Liability Company {if corporation· Incorporated in wtmt strolo) 4 __ [\ra I<_~~ an __ E nte rprisesc.l n .s:~-------------------______ (;a lito.rn~-----------·-------------_ _ Residence Stre.o; Addra~s (P.O. Box nol accoptod) City Stale Zip Code 14048_Y aii<:J_Y_§I~cl_,c Ci tygf_l~_~ustry-'----____ _ __________ g~-------------·-------~ 17 4'L_ ___ _ Fullnam~ uf Rugi:>lmnl/ Corpl.lmtiun f lim!!ed Liability Cornp<mr (if <:<orporalion • incorpmubd in what state} 4A Res;dence Sire~: Address (P.O. Box not accept~;:d) City Zip Code 48 --------·----------------------·--·------------------ This Businoss is ( l an individual ( ) a general partnership { ) joint venture ( i a businass trust 5 conducted by; ( ) co-padners ( ) husband and wife ( .; ) a corporation { } a limilod par!norship {chock ono only) ( ) an unillcorporated asscx:iulion olh~r Umn a P<~r\fl(m:;hip ( ) a limited liiibUlly company ( ) ----;.o;;;,w;;--- ~--_( ___ }_T_I!;;;;;~r~~;-~o-m_m_e~~~d~~-~:~;;;~~b~~ines-;~nd~;~:fu;t<tio;,~-~~;i~~~~-n--.-'"-.-.·-r-.-am-,-,-,,·-,,-d-o_n_(D-,t-eJ-,·---~-rffiZ/97 __ _ ( } Registrant hos not yet begun to transact business under the fictitious business name or names listed herein. ------ 7 I dcclaro that all Information In this statement Is lrun and correct. (A registrant who declares as tmo Information which he or she knows to ba fafso is g:ulfty of a crlma.J SA If RcgisUant is a CORP)JRATION or LLC, sign below Arak~ian EnWpri~_s, Inc. Signature of Registrant{s) 8 Signatun.t lyflclprint name --·~--·.tiporaUon NujotJ..tllm.J>l~~npany ivt..-( _f'__ ~ 1-- Signature lYtle/print nmne -···-·--Slgnaturo Z Chief Financial Officer Siijoat1.11a Tille Kevin P. Hanifin J Sil:Jnalure lypc/print numc --------~------------ Thi::; statement wm; fitl'td with the County Clerk of _________ _.L,o,s2.!0A!!N,G.,Esl, __ E,.s,_ ____ _ 1------------------County on c1ata Indicated by rda stamp abOvQ, NOTICE -THIS FICTITIOUS NAME STATEMENT EXPIRES FIVE YEARS FROM DATE IT WAS FILED IN THE OFFICE OFTHE COUNTY CLERK. A NEW FICTITIOUS BUSINESS NAME STATEMENT MUST BE FILED PRIOR TO THAT DATE. The filing of this sliltomont docs not af il!ielf aulhori<!c the u!>e in U1is state of El fictitious buslnl'!ss name in vitll<llion of \\1~ righls of ~n(Jthar und!!r f\~tlen:11. :st<o~le. or cou1mon law (See Set.1ton 14411 f:ll seq., Busine:ss and Professions Code} RF..C'..ISTRAR. RECORDE~JCCUNTY CLERK RIJSINESS FILING AND REGISlRATION P;O. ROX 53:i92. I.OS ANGELES, ('.A 9005:HJ591. PH· (561) 4t'i7-21t? FILING fEE: 523.00 lor 1 FBN ;u\d 2 ICUislrants pkls S<l.OO rcr each additional FBN/renMranf RI!NEWAL FILING FEE: $18.00 REFER TO THE BACK OF FORM FOR INSTRUCTIONS . \I , ( t \ ... Li t-du. /,, _/. fl fORM~ 76.f21!UD.F029 (Ht"', ~lil4l 296 PART4 SECTION 2 AWARD AND EXECUTION OF AGREEMENT 4.2.1 AGREEMENT DOCUMENT Documents, which shall be signed and provided to the City by the awardee, are: A. Agreement B. Certificate of Insurance -Commercial General Liability C. Certificate of Insurance-Business Auto Liability (Code 1) D. Certificate of Insurance-Worker's Compensation 4.2.2 INTENT, INTERPRETATION AND PRECEDENCE OF AGREEMENT DOCUMENTS The Agreement is intended to describe and provide for complete work. Each agreement document is intended to be cooperative and a requirement included in one is as binding as though included in all. On questions relating to the acceptability of material, machinery, equipment, classification of materials or work, the proper execution of progress, the sequence of work, quantities, interpretation of the specifications or drawings; the decision of the Director of Public Works shall be final, binding and shall be a condition precedent to any payment under the agreement, unless otherwise ordered by the City. In the event of a conflict between one agreement document and any of the other agreement documents, the document highest in precedence shall control and supersede the document, which is contrary to it. The order of precedence of the agreement documents is as follows: 4.2.3 INSURANCE First: Supplemental Agreements the last being the first in precedence Second: Third: Fourth: Fifth: Agreement Specifications Plans, Schedules or Exhibits Contractor's Proposal The CONTRACTOR shall purchase and maintain insurance as set forth below and shall not commence work under this agreement until he/she has obtained all insurance required under this heading. CONTRACTOR shall pay, at his/her own expense, all premiums upon said policies and shall maintain the same in full force and effect during the life of the agreement. The procuring of such policies of insurance shall not be construed as a limitation of CONTRACTOR's liability or as a full performance on CONTRACTOR's part of the indemnification provisions of the agreement. CONTRACTOR's liability shall be not withstanding such policies of insurance, for the full and total amount of any damage, injury or loss caused by or related to CONTRACTOR's operations under the agreement. Said insurance coverage obtained by the CONTRACTOR excepting Worker's Compensation Insurance, shall name the City as an additional insured. Neither the City, agent of nor appointee of the City shall be personally responsible for any liability arising under the agreement. A. Commercial General Liability Insurance Concurrently with the execution of any agreement incorporating these specifications, CONTRACTOR shall procure a policy of Public Liability Insurance from a company authorized to do business in the State of California, which policy shall insure the City, its 25 297 officers, agents or employees against any and all liability for death, injury, loss or damage arising out of or in any manner related to CONTRACTOR's operations under any agreement that may be let pursuant to these specifications. Such policy of insurance shall be in the amount of not less than One Million Dollars ($1 ,000,000) for any one claim. Said insurance coverage shall provide that CONTRACTOR and his/her insurers are primarily responsible for any claim which arises from CONTRACTOR's performance of this agreement and that neither City nor any of its insurers shall be required to contribute to any such claim. B. Business Auto Liability Insurance The CONTRACTOR shall carry and maintain insurance coverage for property damage resulting from the CONTRACTOR's operations, in the sum of not less than One Million Dollars ($1 ,000,000) resulting from any one occurrence, which may arise from the operation of the CONTRACTOR in the performance of the work that is provided herein. Said insurance coverage shall provide that CONTRACTOR and his/her insurers are primarily responsible for any claim which arises from CONTRACTOR's performance of this agreement and that neither City nor any of its insurers shall be required to contribute to any such claim. C. Worker's Compensation Insurance The CONTRACTOR shall provide such compensation insurance as required by the Labor Code of the State of California. The CONTRACTOR at all times shall keep fully insured at his/her own expense, all persons employed by hirn in connection with the agreement as required by the "Worker's Compensation Insurance and Safety Act" of the State of California. The CONTRACTOR shall during the life of the agreement, keep on file with the City Clerk evidence that the CONTRACTOR if fully and properly insured as required by said Act, which evidence shall be approved by the Hermosa Beach City Attorney as to form and sufficiency. D. Location of Policies CONTRACTOR shall concurrently with the execution of the agreement, deliver said policy of insurance, or a certified Photostat copy thereof, to the City Attorney for approval by him as to form and sufficiency, and the agreement shall not be effective, for any purpose, until such insurance policy is so delivered and so approved. When such policy has been approved, it shall be filed in the office of the City Clerk of the City. E. Insurance Certificate In lieu of filing said insurance policy with the City, the same will be returned to CONTRACTOR after approval as to sufficiency and as to form as above provided, if the CONTRACTOR shall file with the City a CONTRACTOR's Insurance Certificate, executed by the insurance carrier, certifying that the aforesaid insurance is in full force and effect and that all operations of the insured under the agreement entered into pursuant to these specifications are covered thereby, and that the policy will not be canceled without giving the City thirty (30) days prior written notice. F. Non-Liability of City Officials No member of the City Council or Director of Public Works, or any other official or authorized assistant, employee, or agent of the City shall be personally responsible for any damage resulting from the performance liability arising under the agreement, or nonperformance negligently or intentionally of any portion of the services contracted. G. Defaults The breach of any of the terms and conditions of the agreement on the part of the CONTRACTOR shall be grounds for the forfeiture of the agreement at the option of the City. 26 298 The City upon such termination shall be at liberty to re-let the work to other parties or to perform said work without agreement. (1) If for any reason whatsoever street sweeping and disposal services of the CONTRACTOR are interrupted and scheduled street sweeping services are discontinued for more than forty-eight (48) hours, the City shall have the right to discontinue payment until such services are resumed. (2) No work shall be done by the CONTRACTOR during any period when he/she is not covered by insurance as required in paragraphs (A) and (B) above. In such event, at the option of the City, the City may declare forfeiture as provided herein. (3) All terms and conditions of the agreement are considered material and in the event the CONTRACTOR defaults in the performance of any of the covenants or agreements to be kept, done, or performed by it under the terms of said agreement, the City may give said CONTRACTOR ten (10) days thereafter to make good or perform the default, then the City without further notice and without suit or other proceeding, may cancel and annul the rights and privileges granted in said agreement. The Director of Finance may withhold payment to the CONTRACTOR in the event of default until such time as service in accordance with these specifications is resumed. (4) In the event of termination of the agreement for breach or default by the CONTRACTOR as hereinabove specified, the City shall have the right forthwith to take possession of all sweepers and other equipment of the CONTRACTOR for the purpose of sweeping streets and disposing of the refuse which the CONTRACTOR agreed to do. The City shall have the right to retain possession of said sweepers and equipment until other suitable sweepers and equipment can be purchased or otherwise acquired by the City for said purpose and shall pay the CONTRACTOR the reasonable rental value of such sweepers and equipment during the time the same are used by the City for said purpose. (5) Failure to comply with the terms of these specifications relative to the sweeping of streets and alleys on the part of the CONTRACTOR by reason of major disaster, epidemic, or other extreme emergency within the City or by reason of the enforcement of Federal, State, or local laws not now in effect and inconsistent or in conflict with the purpose and terms of this agreement, within the City, shall not constitute a breach of the agreement. H. Lawsuits The CONTRACTOR shall pay any judgment which may be obtained against the City, either alone or jointly with the CONTRACTOR, for injury or damage to persons or property by reason of the performance or non-performance of the tenms of the agreement or in connection with the infringement of any patents provided that if the City alone be sued for such injury or damage immediate notice in writing shall be given to the CONTRACTOR and he/she shall appear and defend such action and shall be liable for all costs of such litigation incurred by the City. I. Deliverv of Notice Whenever under the terms hereof, a written notice is required, it shall be sufficient to deliver personally, or mail such notice addressed to the City to: The City Manager, with a copy to the Director of Public Works at his/her office in the City Hall, City of Hermosa Beach, California, those addressed to the CONTRACTOR to him at his/her local office as designated in writing by the CONTRACTOR. 27 299 J. Time is of the Essence Time is of the essence as to all provisions of these specifications and in any agreement based in whole or in part upon them. K. Transfer of Stock or Interest Any sale, gift, or transfer of stock or change of partners or assignment of any interest on the part of the proposer during the term of the agreement is subject to the approval of the City Council of said action. Violation of this requirement is a breach of the agreement. L. Bankruptcy If the CONTRACTOR shall at any time during the terms of this agreement become insolvent, or if proceedings in bankruptcy shall be instituted by or against the CONTRACTOR, or if the CONTRACTOR shall be adjudged bankrupt or insolvent by any court, or if a receiver or trustee in bankruptcy or a receiver of any property of the CONTRACTOR shall be appointed in any suit or proceeding brought by or against the CONTRACTOR, or if creditors, then and in each and every such case, this shall immediately cease, determine, and be forfeited and canceled without notice and without suit or other proceeding. M. Cancellation of Agreement The City Council reserves the right to cancel this agreement at any time during its term, and shall notify the CONTRACTOR, in writing, 30 days prior to cancellation. 4.2.4 FINAL DECISION The CONTRACTOR shall at all times comply immediately with any and all demands made by the Director of Public Works. In the event of controversy between the Director of Public Works and the CONTRACTOR, the CONTRACTOR agrees to abide by the decision of the City Manager whose decision shall be final as to all matters in dispute. 4.2.5 CONTROL OF WORK Within the scope of the agreement, the Director of Public Works has the authority to enforce compliance with the schedule and specifications. The CONTRACTOR shall promptly comply with instructions from the Director of Public Works. On all questions relating to quantities, the acceptability of material, equipment, or work, the execution, progress or sequence of work and the interpretation of specifications, the decision of the Public Works Department is final, binding and shall be precedent to any payment under the agreement, unless otherwise ordered by the City Council. All work and materials are subject to inspection and approval of the Public Works Department. The CONTRACTOR shall provide every reasonable facility for ascertaining that the workmanship is in accordance with these specifications. Inspection of the work shall not relieve the CONTRACTOR of the obligation to fulfill all conditions of the agreement. 4.2.6 PERSONNEL No employee of the CONTRACTOR shall continue to be so employed on any work under these specifications that is found to be intemperate and troublesome, disorderly, inefficient, or otherwise objectionable as determined by the Director of Public Works. Employees operating vehicles shall possess a valid California Drivers License and be eighteen (18) years of age or older. 28 300 4.2.7 PERMITS AND LICENSES The CONTRACTOR shall obtain all permits and licenses required by the City (including City Business License). County and State. 29 301 PART4 SECTION 3 LEGAL REQUIREMENTS AND RESPONSIBILITIES 4.3.1 LAWS TO BE OBSERVED The CONTRACTOR shall keep himself fully informed of all existing and future State and/or Federal laws, all municipal ordinances and/or regulations of the City and of all such orders and/or decrees of bodies or tribunals having jurisdiction or authority over the work. CONTRACTOR shall comply with all such laws, ordinances and orders, which in any manner affect those, engaged or employed in the work, or the materials used in the work, or which in any way affect the conduct of the work. 4.3.2 SAFETY AND ACCIDENT PREVENTION In accordance with generally accepted safety practice, the CONTRACTOR will be solely and completely responsible for conditions of the job site, including safety of all persons and property during the performance of the work. This requirement will apply continuously and not be limited to normal working hours. 4.3.3 HOURS OF LABOR Eight hours constitutes a legal day's work. The CONTRACTOR shall forfeit, as a penalty to the City, twenty-five dollars ($25.00) for each worker employed in the execution of the agreement by the CONTRACTOR or any subcontractor under him/her for each calendar day during which such worker is required or permitted to work more than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of the Labor Code and in particular Sections 1810 and 1815 thereof, inclusive. Except, work performed by employees of CONTRACTOR in excess of eight hours per day and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of eight hours per day at not less than one and one- half times the basic rate of pay, as provided in Section 1815 of the Labor Code. 4.3.4 LABOR DISCRIMINATION No discrimination shall be made in the employment of persons under this agreement because of the race, religious creed, color, ancestry or national origin, physical handicap, medical condition, marital status, or sex of such person. 4.3.5 PERMITS AND LICENSES The CONTRACTOR shall procure all required permits and licenses, (i.e., City Business License and pay all charges or fees). The CONTRACTOR is required to possess all valid licenses as required. 4.3.6 PUBLIC CONVENIENCE AND SAFETY The CONTRACTOR shall provide all notices necessary or incidental to the due and lawful prosecution of the work. The CONTRACTOR shall also conduct his/her operations as to cause the least possible obstruction and inconvenience to vehicle and pedestrian traffic at the highest level of safety. 4.3.7 PATENTS The CONTRACTOR shall assume all responsibilities arising from the use of patented material, equipment, devices, or processes used on or incorporated in the work. 30 302 4.3.8 RESPONSIBILITY FOR DAMAGE The City, its officers, employees, agents, the City Council and the Director of Public Works shall not be responsible or accountable in any manner for any loss or damage that may happen due to the work or any part of the work thereof. This loss or damage includes any material or equipment used in performing the work, any injury to a person or persons (either workmen or the public) and any damage to adjoining or other property from whatever cause. The CONTRACTOR shall defend, indemnify and save harmless the City, its officers, employees, agents, the City Council, and the Director of Public Works from any suits, claims, or actions brought by any person or persons for or on account of any injuries or damages sustained or arising in the performance of the work or in consequence thereof. The City may retain such money due the CONTRACTOR, as it shall consider necessary until disposition has been made of such suit or claim for damages as aforesaid. 4.3.9 RECOVERY OF ATIORNEY'S FEES Should action be instituted to enforce any of the terms and provisions of the agreement, the prevailing party in such action shall be entitled to recover such reasonable attorney fees as may be affixed by the Court. 31 303 PART4 SECTION 4 PROSECUTION AND PROGRESS OF THE WORK 4.4.1 SUBLETTING AND ASSIGNMENT The CONTRACTOR shall give his/her personal attention to the fulfillment of the agreement and shall keep the work under his/her control. The CONTRACTOR shall not assign or otherwise dispose of this agreement or its right; title or interest therein to any person without prior written consent by the City. Subcontractors will not be recognized as such without prior written consent of the City. All persons engaged in the work will be considered as employees of the CONTRACTOR without this written consent and their work will be subject to the provisions of this agreement and its specifications. 4.4.2 TERMS OF AGREEMENT This agreement is anticipated to begin on November 1, 2010. This agreement shall automatically be extended at the end of this agreement on a month-by-month basis on the same terms and conditions until the canceling party gives the other party thirty (30) days advanced written notice of its desire to terminate the Agreement. In any event, this Agreement will expire on June 30, 2013 at midnight. The agreement may be renegotiated at that time for up to (3) three additional years. That renegotiated agreement will be based upon the satisfactory evaluation of the CONTRACTOR's performance and the agreement of both parties. 4.4.3 PROGRESS OF THE WORK AND TIME FOR COMPLETION The CONTRACTOR shall begin work no later that the date set within the notice to proceed and shall diligently prosecute the agreement from said date to the expiration of the agreement. 4.4.4 SUSPENSION OF AGREEMENT If at any time in the opinion of the City, the CONTRACTOR has failed to supply adequate working force, or equipment of proper quality, or has failed in any other respect to prosecute the work with the diligence and force specified and intended in and by the terms of the agreement, notice thereof in writing will be served upon him/her. Should he/she neglect or refuse to provide means for a satisfactory compliance with the agreement, as directed by the Director of Public Works, within the time specified in such notice, the City Council in such case shall have the power to terminate the agreement. 4.4.5 CITY OBSERVED HOLIDAYS /WORK RESPONSIBILITIES Holiday Month Observed Independence Day July Labor Day September Veteran's Day November Thanksgiving Day November Christmas Day December New Year's Day January Martin Luther King Day January President's Day February Memorial Day May The CONTRACTOR shall provide a modified level of service on all holidays. A modified level of service is defined as power sweeping The Strand, picking up and removing all trash cans on the Strand, from Herondo to 35'h, plus those at 2"d St. and 22"d St. at Hermosa Ave, and all regular maintenance of the Pier and Downtown areas. 32 304 4.5.1 PAYMENT PART4 SECTION 5 METHOD OF PAYMENT Based on written evidence submitted by the CONTRACTOR or on other satisfactory evidence to the City, The Director of Public Works shall recommend to the City Council monthly payment for services rendered. The amount of the monthly payment will be based on the amounts shown within the proposal to the City Council. No payment will be made until the CONTRACTOR has submitted a monthly statement requesting payment and submitted other reports as required. 4.5.2 SUSPENSION OF PAYMENT If after written notice to the CONTRACTOR of any deficiencies in his/her work, or of failure to comply with the agreement provisions, or failure to comply with the schedule, the Director of Public Works shall recommend that all or a portion of payments due or to become due under the agreement shall be suspended until the CONTRACTOR corrects any such deficiency. The City may suspend said payment until such deficiencies are corrected. 4.5.3 RETENTION No retention shall be withheld. Payment or partial payment shall be withheld when there is an error or discrepancy in the invoice until said error or discrepancy is corrected. 4.5.4 PAYROLL RECORDS Payroll records are not normally required to be submitted. The CONTRACTOR shall provide payroll records only if required. 4.5.5 FORMAT OF INVOICE The monthly statement (invoice) submitted by the CONTRACTOR shall include the following minimum information: A. City Purchase Order Number and Issue Date B. The CONTRACTOR's Mailing Address C. The Monthly Cost D. CONTRACTOR shall submit the original and one duplicate invoice 4.5.6 TIME SHEETS CONTRACTOR shall keep records of time that his/her personnel spend on the agreement. When requested, the CONTRACTOR shall furnish the City those records of man-hours by task and location. This request for additional information should only occur on an infrequent basis. An example is when there is an opportunity for State or Federal reimbursement to the City as a result of storm damage or some other type of emergency. 33 305 PARTS SPECIAL PROVISIONS SECTION 1 SCOPE OF WORK 5.1.1 GENERAL The CONTRACTOR shall provide at his/her own risk and cost all labor, materials, tools, equipment, transportation, hauling, dumping and other items needed to do the work as described herein. 5.1.2 SCOPE OF WORK The CONTRACTOR shall perform all work necessary to complete the agreement in a manner satisfactory to the Public Works Director or his/her designee. The work to be done under these specifications shall include the furnishing of all labor, material, equipment, tools, and any other incidental expense necessary to perform the following services for the City of Hermosa Beach: A. The Contractor shall be responsible for sweeping and cleaning the City's public right-of-way including all streets, walk streets, public parking lots, the Strand and the Pier. Sweeping and cleaning costs for the City's downtown area (defined below) have a different fund source from the rest of the City and therefore must be broken out on the cost proposal and billed separately on monthly billing. The same applies to the City Pier. B. This agreement shall be in effect until June 30, 2013 with the ability to agreement an additional three (3) years with approval from the City. extend the C. Additional sweeping for which the CONTRACTOR is entitled to additional compensation as extra work based upon the Hourly Cost Schedule (Part 3, Section 5 herein) may be required as follows: (1) Emergency sweeping. CONTRACTOR shall provide direct and prompt attention to requests from the City for emergency service response to be within one hour. (2) Special Events. CONTRACTOR shall provide street sweeping for special events such as parades, street fairs, etc.) after receiving appropriate notice from the City. Hourly is statement to be provided. (3) Sweeping prior to sealing or resurfacing of street. CONTRACTOR shall provide sweeping of streets in preparation for the application of seal coat or resurfacing after receiving appropriate notification of schedule from City. Entire width of the street from curb to curb shall be swept thoroughly to the satisfaction of the Director of Public Works or his/her agent. Such sweeping may be required at night or early in the morning. D. CONTRACTOR to be responsible for sufficient water for the street sweeping equipment necessary to comply with these specifications. CONTRACTOR is to contact California Water Service Company and obtain a water meter. The CONTRACTOR shall endeavor to not waste water and shall conserve wherever and whenever possible in his/her operations. E. The discharge of non-stormwater into storm drain inlets, catch basins, or into the curb-and- gutter leading to the storm drain system is strictly prohibited by Chapter 8.44 Stormwater and Urban Runoff Pollution Control Regulations and under the Federal Clean Water Act. 34 306 F. Daily statement. CONTRACTOR shall submit a daily statement reporting total loads of debris and refuse hauled to dumpsite. CONTRACTOR shall also submit a daily statement reporting sweeper miles. 5.1.3 The following areas outside the downtown area shall be swept one day per week excluding holidays. A. All streets and alleys within the City whether curbed or uncurbed, including medians. An estimated 5 alleys are only 8 feet wide and will have to be swept with a small sweeper or by hand as shown below. (Proposal Item 7) ( 1) Narrow Alleys 31st Place from, Palm Drive to Valley Drive 32nd Place from Palm Drive to Valley Drive 34th Place from Palm Drive to Highland Avenue 35th Place from Palm Drive to Manhattan Avenue Alley from 22nd to 21st Street between Hermosa Avenue & Beach Drive • (2) Walk Streets/Misc. Areas All Walk Streets may be swept with a small sweeper or by hand. Walk Streets between Hermosa Avenue and the Strand at: Herondo, Lyndon, 1't, 3'd, 4th, 5th, 61h, 7th, 8th, g'h, 161h, 17th, 18th, 19th, 201h, 21't, 23'd, 24th, 25th, 26 1h and 351h Street from Hermosa Avenue to The Strand, including stairs. 30th Place from Hermosa Avenue to The Strand hand clean -stairs, alcove and bench. Longfellow from Hermosa Avenue to Strand hand clean -large speed bumps. 30th Street from Morningside west to Manhattan Avenue 31'1 Street from Morningside west to Manhattan Avenue 33'd Street from Palm Drive to Hermosa Avenue hand clean-stairs. 34th Street from Hermosa Avenue to the Strand hand clean -multiple planters. (3) Planter Boxes at the Strand Hand clean around the planters at 2"d, 13th, 14th, 15th. and 22"d streets where they intersect the Strand ( 4) Parking Lots The following parking lots are located and described with approx. area/notations. Clean around all buildings, ex1erior only. a. Greenbelt Parking Areas Valley Drive East side- West side- 8th Street to 11th Street 690 ft. X 30 ft. 160 ft. x 32ft., include trash enclosure 35 307 b. Valley Park Parking Areas Gould Ave. Morningside Drive to Valley Drive South side-350ft. x 20ft. posted Monday 8:00a.m.-12:00 p.m. c. 11th Street. 500 block. "Clark Stadium" 1 '1 lot 124 ft. x 83 ft. Restroom area 150 ft. x 30 ft. Snack bar area 234 ft. x 30 ft. "Old" basketball area 360 ft. x 30 ft. South/West corner 132ft. x 22ft. d. 4th Street; between PCH and Ocean View Area: 85 ft. x 20 ft. including meters/bumper stops e. 3"' Street; 700 block, south to 2"" Street Area: 300ft. x 40ft. posted Wednesday f. 14th Street at Palm Drive Upper Lower g. City Hall parking lots West side East side South side 11th Place h. Community Center Southside South Court area West Court area North Court assisted North side West side Ramp to theater West side of South Ct. 77 ft. x 60 ft. meters/bumper stops 77 ft. x 30 ft. meter/bumps stops trash area 145ft. x 55 ft. planters, easUwesUtrash area 220 ft. X 72 ft. 163 ft. x 62 ft. mini-storage 59 ft. X 32 ft. 131ft. x 133ft. bumper stops/ramp bumper stops 140ft. X 61 ft. 125ft. X 14ft. 125 ft. X 11 ft. 115ft. x6ft. 125ft. X 5 ft. 118 ft. X 23 ft. 240ft. X 13ft. i. Kiwanis, Rotary-Valley Drive 2600 block South side 11 0 ft. x 40 ft. West side 137ft. x 60ft. North side 106 ft. x 43 ft. Between buildings 67 ft. x 17 ft. East side 156 ft. x 17 ft. limited access (5) Note -Cleaning includes removal of all weeds in pavement cracks in all streets, walk streets, and parking lots, use of a "weed whacker" is acceptable. B. The Strand-to be swept 7 (seven\ days per week including holidays. (Proposal Item 2) All of the Strand shall be swept from Herondo to 35th Street. Special attention/handwork must be given to: • All Strand openings • Light poles and aggregate trash container areas • Jarvis Memorial, between 14th & 15th Street Note: No Strand work shall commence before 7:00 AM 36 308 5.1.4 DOWNTOWN AREA includes the following areas to be power swept 5 (five) days per week (Saturday, Sunday, Monday, Tuesday, Friday). (Proposal Item 1) 5.1.4a A. Streets 1. Hermosa Ave. between St" St. and 15th St. 2. Pier Ave. between Hermosa Ave. and Pacific Coast Highway 3. Beach Drive between 10th St. and 14th St. 4. 11th Court between Beach Drive and Hermosa Ave. 5. 11th Street (Walk Street) between Beach Drive and Hermosa Ave. 6. 12'h Court between Beach Drive and Hermosa Ave. 7. 13th Court between Beach Drive and Hermosa Ave. 8. 13th Street (Walk Street) between Beach Drive and Hermosa Ave. 9. 14th Court between Beach Drive and Hermosa Ave. 10. 14th Street (Walk Street) between Beach Drive and Hermosa Ave. 11. 15th Court between Beach Drive and Hermosa Ave. ·12. The Strand between 10th St. and 15th St. B. Other 1. The Hermosa Beach Pier-1 ,200 feet in length and the Pier Head west of the Strand 2. The Pier Plaza between Hermosa Avenue and the Strand 3. Parking Lot A 4. Parking Lot B 5. Parking Lot D PARKING STRUCTURE CLEANING DUTIES (see bid item #10) 1. Power sweeping, twice per week Monday and Friday. 2. Trash pick up, twice per week Monday and Friday. 3. Trash can emptying, twice per week Monday and Friday. 4. Elevator cleaning, daily including wet mopping as needed to sanitize. 5. Stairwell cleaning, twice per week Monday and Friday including wet mopping as needed to sanitize. 5.1.5 LEVEL OF CLEANING The CONTRACTOR must employ sufficient personnel to perform all work as scheduled and approved by the City. All work shall be performed in accordance with this agreement so as to maintain a pleasing aesthetic appearance of the City. The City and the CONTRACTOR will meet weekly at mutually agreed times. Inspection of the area included in the agreement will be made by the City and CONTRACTOR weekly. The results of each inspection will be recorded, forwarded to the CONTRACTOR and retained for reference. REPORTS A. Deficiency Report. The CONTRACTOR is required to correct any deficiencies found by inspection and listed in a deficiency report. Said deficiencies shall be corrected within the time specified by the City (seven (7) calendar days). If work listed in the Deficiency Report is not completed, payment covering subject deficiency shall be withheld until said deficiency is corrected. B. Weekly Request. The CONTRACTOR's representative shall contact the City on a weekly basis for notification of deficiencies requiring correction or for changes of any type. C. Pavement & Sidewalk Condition. The CONTRACTOR shall report any observed bad order conditions of street pavement or sidewalk. 5.1.6 EXTRA WORK Extra work is that work not included under the various proposal items or the result of the CONTRACTOR's negligence. Extra work shall include but not be limited to: street sweeping, hand 37 309 sweeping and trash and litter pick-up. The City will pay for all extra work at the approved hourly rate. The CONTRACTOR shall be responsible for any losses or damage due to his negligence as determined by the Agreement Administrator. The CONTRACTOR shall obtain written approval from the Agreement Administrator prior to proceeding with any extra work except for emergency clean-up. CONTRACTOR shall submit a written proposal to the City when extra work is required or requested by the City. The City reserves the right to have any extra work completed by other CONTRACTORs or City forces. All work performed under this section shall not interfere with, or reduce, normal maintenance schedules or activities. Separate crews shall be utilized for extra work. 5.1.7 WORKING TIME LIMITS Residential districts shall be swept between the hours of 8:00 AM and 4:00 PM in accordance with the schedule provided by the Public Works Superintendent with the following exception: Sweeping of The Strand shall start at 7:00 AM and end no later than 8:00AM. 5.1.8 DAMAGES The CONTRACTOR shall report without delay any damage to City equipment, City property or private property. The CONTRACTOR shall be liable for damages caused by his/her actions. Any repairs and associated cost resulting from CONTRACTOR caused damage shall be the responsibility of the CONTRACTOR. 5.1.9 DISPOSAL OF SWEEPINGS AND/OR DEBRIS The CONTRACTOR shall dispose of all sweepings accumulated as a result of cleaning operations and shall not allow any sweepings to remain on the public street or other public property for more than one hour after it is accumulated. ALL DEBRIS AND SWEEPINGS SHALL BE DELIVERED TO THE CITY YARD TRASH CONTAINERS. Spillage resulting from hauling on or across the public roadways shall be immediately removed at CONTRACTOR's expense. When entering or leaving roadways carrying public traffic, the CONTRACTOR's equipment, whether empty or loaded, shall in all cases yield to public traffic. Freshly wind blown sand shall be returned to the beach. Dirty sand shall be disposed of at the city yard. The CONTRACTOR shall not dispose of dirty sand on the beach. Debris is defined as bottles, cans, paper, trash, sand, litter and all foreign rnatter, etc. 5.1.10 MONTHLY CLEANING SCHEDULE The CONTRACTOR is required to furnish a monthly cleaning schedule to include planned activities for all persons performing any function of the agreement. The monthly schedule shall be submitted to the City. The schedule shall show manpower, equipment and time during the day that the work is planned. The City will provide a form for the CONTRACTOR to use. 5.1.11 SIGNS Street sweeping signs have been installed throughout the City. The CONTRACTOR shall schedule his/her work to be performed within the posted hours. 5.1.12 SWEEPING ROUTES 38 310 City shall provide CONTRACTOR with schedule and map delineating those districts within the City marked for sweeping Monday through Friday inclusive. The sweeping schedule shall be maintained unless a change therein is first approved in writing by the Director of Public Works and notice thereof given as hereinafter provided. 5.1.13 FAILURE TO SWEEP Should the CONTRACTOR fail to sweep, the City will deduct from the CONTRACTOR's next monthly payment a sum of money equal to the number of hours not swept divided by the number of hours to be swept during the month times the monthly payment. 5.1.14 OFFICE FOR INQUIRIES AND COMPLAINTS The CONTRACTOR shall maintain an office at some fixed place and shall maintain telephone therein, listed in the telephone directory in his/her own name or in the file name by which he/she is commonly known, and shall at all times during the hours between 8:00 AM and 5:00 PM of each working day have a full-time employee at said office for the answering of inquiries and for receiving complaints from the Director of Public Works. The telephone number of a designated employee available between 5:00 PM and 8:00 AM for emergency calls and complaints shall be furnished the Director of Public Works. The CONTRACTOR shall maintain a written log of all complaints, the date thereof, and the action taken pursuant thereto or the reason for non-action. Such a log of complaints shall be open to the inspection of the Director of Public Works. The CONTRACTOR shall make every reasonable effort to respond to complaints on the same day they are received and shall report to the Director of Public Works within twenty-four (24) hours as to the action taken concerning each complaint. 5.1.15 PUBLIC RELATIONS A. CONTRACTOR is required to have radio-equipped street sweepers and a supervisor available by telephone on a 24-hour basis who is assigned to provide direction and prompt attention to requests from the City for emergency service. Response shall be within one hour after request is received. B. CONTRACTOR shall, in person or through his/her agent, investigate any complaint, which may concern, or be involved in, the performance of the agreement. CONTRACTOR shall report to the Director of Public Works, or the designee, the following working day as to the action taken with reference to the complaint and, when necessary, complete the Service Request, which will remain on file at City Hall. Complaints received before noon shall b answered the same day; complaints received after noon shall be answered the following day. 5.1.16 BARRIERS The CONTRACTOR shall provide all labor, materials and equipment to install barriers advising the public of hazards due to cleaning. Upon completion of the work, the CONTRACTOR shall promptly remove all signs and warning devices. When performing work under this agreement, should the CONTRACTOR appear to be neglectful or negligent in furnishing warning and protective measures, the City may direct attention to the existence of a hazard. The necessary warning and protective ensures shall be furnished and installed by the CONTRACTOR, at the CONTRACTOR's expense. 5.1.17 POSSIBLE AREA CLOSURE 39 311 In the event any of the work area is unusable for any reason, including acts of nature or vandalism, the Director of Public Works may declare a closure of any portion of the work area. The CONTRACTOR shall not be entitled to compensation for any portion of the work area closed by the Director of Public Works. 5.1.18 DUMPSTER ENCLOSURE CLEANING IN LOTS A, B, AND D The CONTRACTOR will pressure wash the trash enclosures twice weekly. The CONTRACTOR will prevent all water and debris from flowing into any catch basin or drain while cleaning the trash enclosures. The CONTRACTOR will provide proper signs and traffic control for vehicles and pedestrians as needed while pressure washing. Dumpsters are picked up in the early morning. Cleaning should be scheduled appropriately. 5.1.19 STRAND TRASH PICK-UP ON HOLIDAYS The CONTRACTOR shall pick-up all trash containers on The Strand on all holidays. This area is from Herondo to 10'h Street and from 151h Street to 351h Street. This includes removal, relining as needed, and disposal. This work shall be completed prior to 9:00 AM of each holiday listed in Section 4.4. 5. 5.1.20 UPPER PIER AVENUE CLEANING The CONTRACTOR shall provide power sweeping, trash pick-up and hand cleaning to the Upper Pier Avenue section 5 (five) days per week. (Proposal Item 8) This area is located from Pacific Coast Highway west to Manhattan Avenue. A separate line item is included in the Proposal Sheet. This includes holidays. 5.1.21 SCOPE OF WORK FOR CITY PIER to be done 5 (five) days per week. (Proposal Item 3) The CONTRACTOR shall provide a 2-man crew with pick-up truck and all equipment necessary to provide the following services on a daily basis between the hours of 4:00 am and 6:00 pm. • Litter Pick-Up CONTRACTOR will pick up any paper, glass, plastic and any other debris not safe to the environment. This will be done on a daily basis. • Trash Receptacles CONTRACTOR will empty all trash cans and replace all plastic liners. This shall be done on a daily basis. • Fish Cleaning Stations CONTRACTOR will scrub and wash the bowl, top surface, and all sides of each fish cleaning station. This will be done on a daily basis. • Pier Railing CONTRACTOR will clean the pier handrails on a daily basis. • Pressure Washing CONTRACTOR will pressure wash the pier deck, fish cleaning stations and railing. Care will be taken not to damage the wood railings. This will be done on a daily basis. • Graffiti CONTRACTOR will remove any graffiti, including paint, markers and stickers, from the pier deck, deck lights, handrails, fish cleaning stations, trash containers and benches. This will be done on a daily basis. • Wood Benches CONTRACTOR will remove any foreign materials and clean the benches with care not to damage the wood. This will be done on a daily basis. • Securitv The contractor will open and secure the pier gates each morning prior to 6:00 am. 5.1.22 PORTER SERVICE 40 312 ' The CONTRACTOR will provide porter service for cleaning the Downtown Area which includes the morning hours from 6:00 arn to 9:00 am and the afternoon hours from 2:00 pm to 6:00 pm as described below: A. Morning Porter Service shall consist of a 2-rnan crew with a pick-up truck working 7 days per week including holidays (Proposalltern No. 4 ). This crew will primarily be cleaning the Pier Plaza but may also be directed to clean other areas in the Downtown Area. Note that the morning Porter Service may be the same personnel that provide the daily pier cleaning services. B. Afternoon Porter Service (Proposal Item No. 5) shall consist of a 2-man crew with a pick-up truck in the months of April through Octobers on Saturdays, Sundays and holidays and 1-man crew with a pick-up truck during the months of November through March, also on Saturdays, Sundays and holidays. 5.1.23 PARKING LOT CLEANING Prior to sweeping, parking lots will be inspected for areas of heavy oil deposits or excessive oil buildup, and where present will be treated with absorbent material to absorb excess oil. Absorbent will be swept up and disposed in designated container for oily waste at the City yard. This section applied to all parking lots. 5.1.24 COMMERCIAL SIDEWALK CLEANING (BID ITEM 9) The ~ONTRACTOR shall provide thorough cleaning services for the commercial sidewalk segments listed below to be done every three (3) months. Specific attention is to be paid to removing all gum, stains and weeds. The equipment and method used for this work must provide full water recovery (water cannot enter the street, gutter or storm drain without recovery) and not damage the sidewalk. Hermosa Ave.: Pier Ave.: Pacific Coast Hwy.: Aviation Blvd.: \rs•h Street to 15'h Street \.V Hermosa Ave. to Pacific Coast Highway v Southern Boundary to Northern Boundary 'v Pacific Coast Highway to Harper Ave. 41 313 PARTS SECTION 2 PERSONNEL AND SUPERVISION 5.2.1 PERSONNEL REQUIREMENTS The CONTRACTOR shall use and furnish all labor necessary for the satisfactory performance for the work set forth in this agreement. 5.2.2 CONTRACTOR'S EMPLOYEE PERFORMANCE The CONTRACTOR agrees to require his/her employees to present a neat appearance at all times while engaged in the performance of their duties. The employees shall also maintain good bearing and deportment toward the public. Should for any reason an employee be unsatisfactory in the opinion of the City, the CONTRACTOR, when notified in writing, shall cause that employee to be removed from the job and replaced by a satisfactory employee. 5.2.3 CONTRACTOR'S EMPLOYEE ATTIRE The CONTRACTOR shall require each of his/her employees to adhere to a basic standard of working attire. This standard is a clean uniform with the CONTRACTOR's company name or insignia clearly visible, proper shoes, other gear as required by State Safety Regulations and proper wearing of the clothing. Shirts shall be worn at all times, buttoned and tucked in. 5.2.4 TYPICAL TASKS OF CONTRACTOR'S EMPLOYEES The CONTRACTOR shall supply employees with the skills to perform various semi-skilled duties in connection with cleaning functions; cleaning rubbish and debris; operating a variety of hand and power tools; cleaning of public facilities, and operating light equipment. 5.2.5 KNOWLEDGE & ABILITIES OF CONTRACTOR'S EMPLOYEES Employees must have the ability to use and maintain various tools, ability to perform heavy manual labor, ability to follow oral and written instructions. 5.2.6 SPECIAL ACTIVITY REQUIREMENTS The CONTRACTOR if so requested by the Director of Public Works shall supply additional employees. Any additional employees will be paid at a rate equal to the wage rate and mark up as shown on the form titled "CONTRACTOR's Hourly Rate". 5.2.7 LEVEL OF SUPERVISION The CONTRACTOR shall provide adequate supervision as to furnish proper surveillance of workmanship and adherence to the schedule by the employees performing the work. The field supervisor or his/her representative shall check with the Department of Public Works weekly as to (1) schedule of work, (2) complaints and (3) adequacy of performance. The CONTRACTOR shall submit such reports as the City may require insuring compliance with scheduled work. The 42 314 Supervisor shall be in the City at least 20% of the time while work is in progress. The CONTRACTOR shall be penalized Two Hundred and Fifty Dollars ($250) per week for failing to have a supervisor in the City at least seven hours per week. 5.2.8 APPROVAL OF SUPERVISOR The Supervisor shall be someone other than the labor type of employee provided in this agreement. The CONTRACTOR shall provide in writing to the City (before starting work under this agreement) the name of the Field Supervisor. After approval of the Field Supervisor, the CONTRACTOR may substitute another individual provided the CONTRACTOR makes a written request to the City and said request is approved. The Supervisor should have at least five years practical experience in supervision. 5.2.9 EMERGENCY TELEPHONE NUMBERS The CONTRACTOR shall provide the City throughout the duration of this agreement at least two (2) telephone numbers of qualified persons who can be called anytime that the CONTRACTOR's representative is not immediately available at the job site. An emergency 24-hour number shall also be provided. The emergency number shall be to contact a representative of the CONTRACTOR who can take the necessary action required to alleviate an emergency condition. 5.2.10 INCLEMENTWEATHER The CONTRACTOR shall contact the City for the determination of non-operational conditions. During inclement weather, the CONTRACTOR shall provide staffing for citywide debris removal and clean up. 43 315 PART 5 SECTION 3 EQUIPMENT AND MATERIALS 5.3.1 EQUIPMENT Equipment and Use of Equipment. CONTRACTOR's street sweeping equipment shall meet the following requirements: A. CONTRACTOR shall use street sweeping equipment in conformance with the highest standard of street sweeping. Sweeper speed and broom pattern shall be in accordance with manufacturer's recommendations. Sweepers at work shall not exceed the maximum speed of 10 mph; sweepers when driven shall have a maximum of the posted speed limit. B. CONTRACTOR shall use such standard heavy street sweeping equipment as is necessary to clean the City streets of paper, dirt, rocks, leaves and debris. C. CONTRACTOR shall maintain all equipment. It should be clean and in good mechanical condition, uniformly painted and numbered. D. CONTRACTOR shall use equipment deemed acceptable by express approval of the Director of Public Works. The equipment shall be: Large Sweeper(s): Tymco 600 air sweeper or Tymco F.H.D. regenerative air sweeper or equal. Mobile sweeper M9 high-dump (for the Strand) or approved equal. Small Sweepers: "Green Machine" applied 414RS-cushion sweeper or approved equal. E. CONTRACTOR's equipment shall be subject to inspection by the Director of Public Works or Designee and upon notification in writing to the CONTRACTOR that any equipment does not cornplywith the standards herein, such equipment shall be removed from, service by the CONTRACTOR and not again so used until inspected and approved in writing by the Director or of Public Works or Designee. F. Sweeper must have a dual cutter broom. G. The CONTRACTOR shall submit a list of equipment he/she intends to use in the City of Hermosa as part of the proposal package. 5.3.2 VEHICLES CONTRACTOR shall display the name of his/her firm on any vehicles used by the CONTRACTOR's employees to carry supplies and equipment. The firm name shall be in letters large enough to be easily legible from a distance of fifty (50) feet. 44 316 5.3.3 EQUIPMENT MAINTENANCE All equipment used by the CONTRACTOR shall be kept in a neat and clean appearance. The equipment shall also be kept in top mechanical condition and properly adjusted, both from an operational standpoint and from a safety standpoint. 5.3.4 SAFETY LIGHTS All vehicles shall be equipped with an operational rotating amber light when parked or used on public streets. 5.3.5 EQUIPMENT NOISE City noise level requirements shall apply to all equipment on the project or related to the project including but not limited to trucks, or transient equipment that may or may not be owned by the CONTRACTOR. The use of loud sound signals shall be voided in favor of light warnings except those required by safety laws for the protection of the public or CONTRACTOR's personnel. 5.3.6 AIR POLLUTION CONTRACTOR shall comply with all air pollution control rules, regulations, ordinances and statutes which apply to any work performed pursuant to the agreement and shall not discharge smoke, dust or any other air contaminants into the atmosphere in such quantity as will violate the regulations of any legally constituted authority. All power sweeping equipment (including Strand Sweeper) must use alternative fuel in accordance with the South Coast Air Quality Management District Rule No. 1186.1. 5.3.7 MATERIALS TO BE PROVIDED BY CONTRACTOR The CONTRACTOR at his/her own cost and expense shall furnish all necessary materials, and tools supplies of good quality and in the amounts necessary to fulfill this agreement and to accomplish an acceptable and professional level of cleaning. 45 317 PARTS SECTION 4 ITEMS OF WORK 5.4.1 AREA CLEANING The cleaning work pertaining to the City of Hermosa Beach has been organized into specific work activities and frequency schedules. The CONTRACTOR shall report to the Director of Public Works or his/her designee for resolution of any cleaning problems or concerns. 5.4.2 POWER SWEEPING All streets and paved parking lots shall be swept according to the frequency schedule. Street sweepers shall be equipped to perform left and right hand-pick-up and shall at all times travel in a direction "with" traffic. Any sweeper shall have the capability of picking up broken glass. 5.4.3 HAND SWEEPING Where sidewalks on walk streets are inaccessible by machinery they shall be hand swept to remove dust, dirt, sand and debris to present a clean and neat appearance at all times according to the frequency schedule. All debris must be picked up and removed. At no time are backpack blowers permitted to be used within the Hermosa Beach City Limits. 5.4.4 SAND REMOVAL When sand is blown into the agreement area the CONTRACTOR shall with due diligence remove the sand. The CONTRACTOR shall not be entitled to any extra compensation. - The purpose of this agreement is to provide a clean City. 5.4.5 LITTER PICK UP Litter pick up shall include the hand cleaning and removal of debris frorn any area where the power sweeper and hand sweeping are not effective, such as around dumpster enclosures, traffic islands or medians, tree well planters, median planters, booth areas, trash cans, berms surrounding parking lots, parking bumpers, median corners and etc. Litter pick up shall be performed not less than specified in the frequency schedule. 5.4.6 SWEEPER ROUTES Letter-size sweeper route maps are included as part of this Request for Proposals. Large scalable route maps are available in the Public Works Department, City Hall, 1315 Valley Drive, Room 001, Hermosa Beach or upon request, an electronic copy can be provided by email. F:\895\PWFILES\Yard\Yard RFPs\street cleaninglrfp for street cleaning services updated 8-25-10 rev 8-30-10.doc 46 318 PART 5 SECTION 5 ACTIVITY SCHEDULE FOR STREET SWEEPING AS ACTIVITIES DAILY WEEKLY NEEDED Sweep streets and alleys X Frontage Road and Bike Path on Hermosa Avenue X The Strand (Sweep Monday, Tuesday, Wednesday, X Thursday, Friday, Saturday & Sunday) Walk Streets/Misc. Areas X Parking lot east side of City Hall (Sweep Friday) X All other parking lots except the east side of City Hall X Parking Islands on Pier Avenue X ACTIVITY SCHEDULE FOR DOWNTOWN AREA CLEANING ACTIVITIES MON TUE WED THU FRI SAT SUN POWER SWEEPING Sidewalks X X X X X Streets (gutters and 100% of the driving surface). X X X Parking lots A, B and D X X X X X (includes cleaning around bumper stops) HAND SWEEPING All areas not power swept X I I X X X X TRASH BARREL PICK UP Empty barrels Re-line barrels This work is to be done daily. Litter pick-up Hose barrels Lot A, B and D & parking structure DUMPSTER AREA CLEANING LOTS A, BAND D Broom Sweep/Litter Pick-up X X X X X Pressure Washing-Monday and Friday X X LITTER PICK-UP X X X X X Includes around dumpster enclosures, streets, gutters, sidewalks, traffic median islands, booth areas & parking bumper stops SAND REMOVAL This work is to be done as requested. ACTIVITY SCHEDULE FOR PARKING STRUCTURE ACTIVITIES MON TUE WED THU FRI SAT SUN Parking structure X X Cleaning/wiping doors and interior of elevator X X X X X X X All items of activity are as specified by the Public Works Superintendent. 47 319 DATE SWEPT: STREET SWEEPING REPORT OF STATE HIGHWAYS SWEPT IN HERMOSA BEACH PACIFIC COAST HIGHWAY START TIME:----------------- STOP TIME: TOTAL TIME:----------------- OPERATOR'S SIGNATURE:------------- CONTRACTOR: 48 320 Driver Start Time STREET SWEEPING REPORT DAILY REPORT FOR HERMOSA BEACH Stop Time D Route completed as scheduled D Route NOT completed as scheduled Missed streets: Complaint: Complaint: Complaint: Date Total 0 Re-swept 0 NOT Re-swept 0 Re-swept 0 NOT re-swept 0 Re-swept 0 NOT Re-swept Operator's Signature 49 321 DAY Monday Tuesday Wednesday Thursday Friday Missed Areas: NON-POSTED AREAS FOR STREET SWEEPING WEEKLY CHECKLIST FOR HERMOSA BEACH Week Ending Friday ___ ./ __ __,/ __ _ AREA SWEPT 28th 29th 30th 31't 32"' & 33" Place ' . ' ' ' Gould Terrace Alleys between Rhodes & PCH Alley off Gould, west of PCH Alley off 5th Street, west of Ocean View Shakespeare Bike Path alon~ Hermosa Avenue 00 block from 3" Court to 1oth Court Beach Drive from Herondo to 1oth Street 15th Court through 21 't Court Beach Drive: 15th Street to 22"' Street Lot-Kiwanis Club & Rotary Club Lot-14th & Palm (Friday 7 a.m. to 8 a.m.) Lot -City Hall (front) Lot -City Hall (Hermosa Storage) Lot-City Hall (rear) Lot -Community Center (rear) 800 block Valley Drive -Greenbelt parking Lot-Clark Building Lot -1 035 Valley (rear) & Clark Stadium Lot -4th Street at Ocean View Bard Street -behind PO (last Friday of month) Reason Missed: 50 DAY TIME NP NP NP NP NP NP NP NP NP NP NP NP NP NP NP NP NP NP NP NP NP NP 322 i~~·sf" · ~~,s~;_; __ -_ ~~~~ 51 @ Citg of 2&mo:;a 'lkach ~. ' 323 \ ,. \ \ \ ~· \ I !_. -· -y -· i L. II \ i ·-· I I I ' .,., \ I -· L~~ \\ \ '\., -· .... /,._, I \ / .... \ ,. -· .. \ I \,\ \ -· / -· -· ... \ \ ··:. .. \ ..... \ ... - I ~~=:::\ //~--~, 1 ,___ A l / \ \:::~, . / . .. y-· ---\--/ \ \ -~--~--j • \ -\... .......... --\ . I '---~\ \ r-·-\· \ \·-:. \ \ .. \ -~ i \ .. I -· ..... \ .. $ City of 2lermosa '13each Street Sweeping Schedule .. \ -. -· ... -· -· \ \ . . -· \ \ ' .. \ ,.~ .. ... \ I \ \ .. \. 1 . . .. ------------~ Daily \ ' \ \\ '> \ \ \ /\ _. \ ' .~· \ \ \ I ' \ .. \ .. \'\\\ \ 1' \ \ I ,.. --·· .. ~ \------ . -~- -~--.. ~~ ~,-- --The Strand --Downtown District 52 324 $ -City of 2-lermosa rneach Street Sweeping Schedule Monday .. \ \ .. ' .. \ ' .. \ \ ----Monday Bam -12pm ----~ Monday 1 Dam -2pm ---Monday 1 pm -2pm +· 53 325 -City of 2-lermosa 'Beach Street Sweeping Schedule Tuesday .. \ ' \ --Tuesday Bam-12pm --Tuesday 1 Dam -2pm 54 326 ·~-Wednesday Sam -12pm --Wednesday 10am-2pm ·--Wednesday 1 pm -2pm 55 1$} City of 2/.ermosa ffleach Street Sweeping Schedule Wednesday +· 327 ~~ Thursday Bam -12pm · Thursday 1 Oam -2pm Thursday 1 pm-2pm 56 L \ $-City of 2lermosa '13each Street Sweeping Schedule Thursday 328 \\ .. \ \ \ \ \ .... , \ G -· \ ' \ ... \ ?.:· _. \\ ~·: -:: I \ \ \ \ - -· \ ... _. \ -· \ t \ ,.M \ . -· -· -·· \ \ •" -· .. I -· ' -· \ ' \ ·· .. .. I I -· ~/--- --Friday 3am -6am --Friday 9am -11am 57 $ City of 2lermosa r]each Street Sweeping Schedule Friday -· •" ... I -· \ \ .... , .. \ .. •" \ '· \ .. I I -· ' .. .. \ .... .. ·· 329 330 331 332 333 AGREEMENT BETWEEN CITY OF HERMOSA BEACH AND ARAKELIAN ENTERPRISES, INC. DBA ATHENS SERVICES FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES * * * May 24, 2013 334 May 24, 2013 i City of Hermosa Beach AGREEMENT BETWEEN CITY OF HERMOSA BEACH AND ARAKELIAN ENTERPRISES, INC. dba ATHENS SERVICES FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES TABLE OF CONTENTS Page RECITALS 1 ARTICLE 1.................................................................................................................................................3 DEFINITIONS.......................................................................................................................................................................... 3 1.1 AB 939 ...................................................................................................................................................................... 3 1.2 AFFILIATE ................................................................................................................................................................. 3 1.3 BILLINGS ................................................................................................................................................................... 4 1.4 BIN ............................................................................................................................................................................ 4 1.5 BIN SERVICE ............................................................................................................................................................. 4 1.6 BULKY ITEMS ............................................................................................................................................................ 4 1.7 CALRECYCLE ............................................................................................................................................................ 5 1.8 CAN .......................................................................................................................................................................... 5 1.9 CAN SERVICE ............................................................................................................................................................ 5 1.10 CART .................................................................................................................................................................... 5 1.11 CITY ..................................................................................................................................................................... 5 1.12 CITY MANAGER ................................................................................................................................................... 5 1.13 COLLECT/COLLECTION ...................................................................................................................................... 5 1.14 COMMERCIAL ...................................................................................................................................................... 6 1.15 COMMERCIAL PREMISES ...................................................................................................................................... 6 1.16 CONTRACTOR ...................................................................................................................................................... 6 1.17 CONTRACTOR'S PROPOSAL ................................................................................................................................. 6 1.18 CONTRACTOR COMPENSATION .......................................................................................................................... 6 1.19 CONSTRUCTION AND DEMOLITION DEBRIS ....................................................................................................... 7 1.20 CONTAINER ......................................................................................................................................................... 7 1.21 CPI ....................................................................................................................................................................... 7 1.22 CUSTOMER ........................................................................................................................................................... 7 1.23 DISPOSE/DISPOSAL ............................................................................................................................................. 7 1.24 DISPOSAL SITE(S) ................................................................................................................................................. 7 1.25 DIVERSION ........................................................................................................................................................... 7 1.25A DOWNTOWN AREA ............................................................................................................................................. 8 1.25B DOWNTOWN COMPACTOR ................................................................................................................................. 8 1.25C DOWNTOWN COMPACTOR FACILITY ................................................................................................................. 8 1.25D DOWNTOWN COMPACTOR FACILITY SERVICE AREA ......................................................................................... 8 1.26 ELECTRONIC WASTE ............................................................................................................................................. 8 1.27 ENVIRONMENTAL LAWS ..................................................................................................................................... 8 335 May 24, 2013 ii City of Hermosa Beach 1.28 FACILITY .............................................................................................................................................................. 9 1.28A FOOD WASTE ....................................................................................................................................................... 9 1.29 GREEN WASTE ..................................................................................................................................................... 9 1.30 GREEN WASTE PROCESSING FACILITY................................................................................................................ 9 1.31 GROSS RECEIPTS .................................................................................................................................................. 9 1.32 HAZARDOUS SUBSTANCE.................................................................................................................................. 10 1.33 HAZARDOUS WASTE ......................................................................................................................................... 10 1.34 HOUSEHOLD HAZARDOUS WASTE (“HHW”) ................................................................................................. 11 1.35 MATERIALS RECOVERY FACILITY (“MRF”) ..................................................................................................... 11 1.36 MULTI-FAMILY DWELLING ............................................................................................................................... 11 1.37 PERSON .............................................................................................................................................................. 11 1.38 PREMISES ........................................................................................................................................................... 11 1.39 RATE YEAR ........................................................................................................................................................ 11 1.40 RECYCLE/RECYCLING....................................................................................................................................... 11 1.41 RECYCLABLE MATERIALS .................................................................................................................................. 12 1.42 REFUSE ............................................................................................................................................................... 12 1.43 RESIDENTIAL...................................................................................................................................................... 12 1.44 RESIDENTIAL PREMISES ..................................................................................................................................... 12 1.45 ROLL-OFF BOX ................................................................................................................................................... 12 1.46 SINGLE FAMILY DWELLING ............................................................................................................................... 13 1.47 SOLID WASTE .................................................................................................................................................... 13 1.48 SOLID WASTE HANDLING SERVICES ................................................................................................................. 13 1.49 SOURCE SEPARATED .......................................................................................................................................... 13 1.50 STATE ................................................................................................................................................................. 13 1.51 TRANSFORMATION ............................................................................................................................................ 13 1.52 TRANSFER STATION ........................................................................................................................................... 14 1.53 WASTE GENERATOR .......................................................................................................................................... 14 ARTICLE 2...............................................................................................................................................15 GRANT AND ACCEPTANCE OF FRANCHISE ............................................................................................................. 15 2.1 GRANT AND ACCEPTANCE OF FRANCHISE, INDEMNITY OF AWARD ................................................................... 15 2.2 ENFORCEMENT OF EXCLUSIVITY ............................................................................................................................ 15 2.3 EFFECTIVE DATE .................................................................................................................................................... 16 2.4 TERM OF AGREEMENT ............................................................................................................................................ 16 2.5 CITY’S OPTION TO EXTEND TERM.......................................................................................................................... 16 2.6 REPRESENTATIONS AND WARRANTIES OF CONTRACTOR .................................................................................... 16 2.7 CONDITIONS TO EFFECTIVENESS OF AGREEMENT ................................................................................................. 18 2.8 DELEGATION OF AUTHORITY ................................................................................................................................ 18 2.9 LIMITATIONS TO SCOPE.......................................................................................................................................... 18 2.10 CITY'S RIGHT TO DIRECT CHANGES.................................................................................................................. 20 2.10.1 General ..................................................................................................................................................... 20 2.10.2 New Diversion Programs ......................................................................................................................... 21 2.11 OWNERSHIP OF SOLID WASTE .......................................................................................................................... 21 2.12 CONTRACTOR STATUS ....................................................................................................................................... 22 2.13 CONTRACTOR AUTHORIZATION ....................................................................................................................... 22 2.14 PERMITS AND LICENSES .................................................................................................................................... 23 ARTICLE 3...............................................................................................................................................24 FEES PAID TO THE CITY ................................................................................................................................................... 24 3.1 CONTRACTING FEE ................................................................................................................................................ 24 3.2 COLLECTOR FEE ..................................................................................................................................................... 24 336 May 24, 2013 iii City of Hermosa Beach 3.3 ADMINISTRATIVE FEE ............................................................................................................................................ 24 3.4 AB 939 FEE ............................................................................................................................................................. 24 3.5 TIMING AND SUBMITTAL OF MONTHLY FEE PAYMENTS ...................................................................................... 25 3.6 FUTURE FEES .......................................................................................................................................................... 25 ARTICLE 4...............................................................................................................................................26 DIRECT SERVICES .............................................................................................................................................................. 26 4.1 REFUSE .................................................................................................................................................................... 26 4.1.1 General .......................................................................................................................................................... 26 4.1.2 Residential Cart/Can Refuse Collection ........................................................................................................ 26 4.1.3 Refuse Cart/Can Overage ............................................................................................................................. 27 4.1.4 Walk-Out Service .......................................................................................................................................... 27 4.1.5 Bin Refuse Collection .................................................................................................................................... 28 4.1.6 Commercial Premises Cart Service ............................................................................................................... 28 4.1.7 Overflowing Bins and Carts ......................................................................................................................... 29 4.1.8 Temporary Bin Service .................................................................................................................................. 29 4.1.9 Scout Vehicles ............................................................................................................................................... 30 4.1.10 Bin Push-out Service ................................................................................................................................ 30 4.1.11 Locking Bins ............................................................................................................................................. 30 4.1.12 Roll-off Box Service .................................................................................................................................. 31 4.1.13 Extra Assistance in High Solid Waste Generating Commercial Areas .................................................... 31 4.1.14 Shared Solid Waste Downtown Compactor Facility and Porter Service ................................................. 31 4.1.15 On-Call Bulky Item Pickup ...................................................................................................................... 35 4.1.16 Bulky Item Diversion ............................................................................................................................... 36 4.1.17 Disposal of Electronic and Other Special Wastes ..................................................................................... 36 4.1.18 Optional On-Call Household Hazardous Waste Collection and Disposal ............................................... 36 4.1.19 Restaurant Food Waste Program Option ................................................................................................. 37 4.1.20 Document Shredding ............................................................................................................................... 37 4.2 RECYCLING ............................................................................................................................................................. 38 4.2.1 Residential Cart/Can Recycling Collection ................................................................................................... 38 4.2.2 Commercial Recyclables Collection ............................................................................................................... 38 4.2.2.1 Source Separated Recycling ..................................................................................................................... 38 4.2.2.2 Downtown Compactor Facility Solid Waste Processing .......................................................................... 39 4.2.2.3 Bin and Roll-Off Waste Processing .......................................................................................................... 39 4.2.3 Warning Notice............................................................................................................................................. 39 4.2.4 Marketing and Sale of Recyclable Materials ................................................................................................. 40 4.2.5 Minimum Recycling Requirements .............................................................................................................. 40 4.2.6 Construction and Demolition Debris Diversion ........................................................................................... 40 4.2.7 Battery Recycling Drop-Off .......................................................................................................................... 41 4.3 GREEN WASTE PROGRAM ...................................................................................................................................... 41 4.3.1 Single Family Green Waste Collection ......................................................................................................... 41 4.3.2 Holiday Tree Collection Program ................................................................................................................. 42 4.3.3 End Uses for Green Waste ............................................................................................................................ 43 4.3.4 Backyard Compost Program ......................................................................................................................... 43 4.3.5 Free Compost Give-A-Way Events ............................................................................................................... 43 4.3.6 Free City Compost......................................................................................................................................... 44 4.3.7 Residential Food Waste Pilot Program ......................................................................................................... 44 4.4 CONTAINER SELECTION, DISTRIBUTION AND EXCHANGES .................................................................................. 44 4.4.1 Containers ..................................................................................................................................................... 44 4.4.1.1 Residential Container Distribution .......................................................................................................... 44 4.4.1.2 Removal of Existing Containers ............................................................................................................... 45 4.4.1.3 Container Design Requirements .............................................................................................................. 46 4.4.1.4 Capacity .................................................................................................................................................... 46 337 May 24, 2013 iv City of Hermosa Beach 4.4.1.5 Container Handles ................................................................................................................................... 46 4.4.1.6 Container Lid ........................................................................................................................................... 46 4.4.1.7 Container Colors ...................................................................................................................................... 47 4.4.1.8 Container Markings ................................................................................................................................. 47 4.4.2 Container Performance Requirements .......................................................................................................... 48 4.4.2.1 Cart Load Capacity ................................................................................................................................... 48 4.4.2.2 Container Durability ................................................................................................................................ 48 4.4.2.3 Chemical Resistant ................................................................................................................................... 49 4.4.2.4 Stability and Maneuverability ................................................................................................................. 49 4.4.2.5 Lid Performance ....................................................................................................................................... 49 4.4.2.6 Reparability .............................................................................................................................................. 50 4.4.3 Container Ownership and Maintenance Responsibilities ............................................................................. 50 4.4.4 Bins ............................................................................................................................................................... 50 4.4.5 Roll-off Boxes ................................................................................................................................................ 51 4.5 CITY SERVICES ........................................................................................................................................................ 52 4.5.1 City Facilities Collection ............................................................................................................................... 52 4.5.2 City Litter Containers ................................................................................................................................... 53 4.5.3 School Facilities Collection............................................................................................................................ 54 4.5.4 Special Events ............................................................................................................................................... 55 4.5.5 Emergency Collection and Disposal Service ................................................................................................. 55 4.5.6 Abandoned Item Collection ........................................................................................................................... 55 4.5.7 Large Venue Event Assistance, Event Recycling ......................................................................................... 56 4.5.8 Litter Boxes for Non-City-Sponsored Events................................................................................................ 56 4.5.9 Code Enforcement Assistances ...................................................................................................................... 56 4.5.10 Capacity Guarantee .................................................................................................................................. 56 4.5.11 Toy Drive Assistance ............................................................................................................................... 56 4.5.12 South Bay Work Investment Board .......................................................................................................... 56 4.5.13 Dog Waste Program ................................................................................................................................. 57 4.6 OPERATIONS ........................................................................................................................................................... 57 4.6.1 Schedules ....................................................................................................................................................... 57 4.6.1.1 Collection Days and Hours ...................................................................................................................... 57 4.6.1.2 Review of Schedules and Routing ............................................................................................................ 57 4.6.1.3 Missed Pickups ......................................................................................................................................... 58 4.6.2 Vehicles ......................................................................................................................................................... 58 4.6.3 Litter Abatement ........................................................................................................................................... 62 4.6.4 Personnel ....................................................................................................................................................... 62 4.6.5 Identification Required .................................................................................................................................. 64 4.6.6 Fees and Gratuities ....................................................................................................................................... 64 4.6.7 Non-Discrimination ...................................................................................................................................... 64 4.6.8 Routing and Coordination With Street Sweeping Services .......................................................................... 65 4.6.9 Report of Accumulation of Solid Waste; Unauthorized Dumping ............................................................... 65 4.7 TRANSPORTATION OF SOLID WASTE ..................................................................................................................... 65 4.8 APPROVED FACILITIES ........................................................................................................................................... 66 4.9 STATUS OF DISPOSAL SITE ..................................................................................................................................... 66 4.10 DEDICATED ROUTES .......................................................................................................................................... 67 4.11 SERVICE EXCEPTIONS; HAZARDOUS WASTE NOTIFICATIONS ......................................................................... 67 4.12 DOWNTOWN COMPACTOR FACILITY DEVELOPMENT ...................................................................................... 67 ARTICLE 5...............................................................................................................................................70 OTHER SERVICES ............................................................................................................................................................... 70 5.1 CUSTOMER SERVICE ............................................................................................................................................... 70 5.1.1 Local Office, Response Time .......................................................................................................................... 70 5.1.2 Complaint Documentation ............................................................................................................................ 71 338 May 24, 2013 v City of Hermosa Beach 5.1.3 Resolution of Customer Complaints ............................................................................................................. 71 5.1.4 Service Liaison/Route Supervisor ................................................................................................................. 72 5.2 EDUCATION AND PUBLIC AWARENESS ................................................................................................................. 72 5.2.1 General .......................................................................................................................................................... 72 5.2.2 Implementation and On-going Education Requirements ............................................................................. 72 5.2.3 Contractor Representative ............................................................................................................................ 74 5.2.4 Community Events ....................................................................................................................................... 74 5.2.5 School Outreach ............................................................................................................................................ 75 5.2.6 Business Outreach ........................................................................................................................................ 75 5.2.7 Multi-Family Outreach ................................................................................................................................ 76 5.2.8 Facility Tours ................................................................................................................................................ 76 5.2.9 Free Mailing of City Materials ..................................................................................................................... 76 5.2.10 Mighty Mike Mascot ................................................................................................................................ 77 5.2.11 Presentations to City Council .................................................................................................................. 77 5.2.12 Guest Speaker and Writing Assistance .................................................................................................... 77 5.3 WASTE GENERATION/CHARACTERIZATION STUDIES .......................................................................................... 77 5.4 Community Support .......................................................................................................................................... 77 5.6 Neighborhood Safety Watch ............................................................................................................................... 78 ARTICLE 6...............................................................................................................................................79 CONTRACTOR COMPENSATION AND RATES ......................................................................................................... 79 6.1 GENERAL ................................................................................................................................................................ 79 6.2 INITIAL RATES ........................................................................................................................................................ 79 6.3 SCHEDULE OF FUTURE ADJUSTMENTS ................................................................................................................... 79 6.3.1 Request Submittal ......................................................................................................................................... 79 6.3.2 Approval Process ........................................................................................................................................... 79 6.4 METHOD OF ADJUSTMENTS ................................................................................................................................... 80 6.4.1 General .......................................................................................................................................................... 80 6.4.2 Cost Components for Rate Adjustment Indices ............................................................................................ 80 6.4.3 Rate Adjustment Steps ................................................................................................................................. 81 6.4.4 Green Waste Rate Adjustment Upon Closure of Puente Hills ..................................................................... 82 6.5 EXTRAORDINARY ADJUSTMENTS ........................................................................................................................... 82 6.6 REDELIVERY/RETURN TRIP FEE ............................................................................................................................ 83 6.7 CUSTOMER BILLING AND CONTRACTOR COMPENSATION ................................................................................... 84 6.7.1 Residential Customers Receiving Individual-Unit Service ............................................................................ 84 6.7.2 Permanent Bin and Roll-Off Box Customers ................................................................................................ 84 6.7.3 Temporary Services Billing ........................................................................................................................... 84 6.7.4 Contractor’s Invoices .................................................................................................................................... 84 6.7.5 Billing Disputes ............................................................................................................................................ 85 6.7.6 Delinquent Accounts .................................................................................................................................... 85 6.7.7 Customer Billing Adjustments ..................................................................................................................... 86 6.7.8 Exemption from Service ................................................................................................................................ 86 6.7.9 Active Military Rate Reductions .................................................................................................................. 87 6.7.10 Senior Low-Income Rate Reduction ......................................................................................................... 87 REVIEW OF SERVICES AND PERFORMANCE ............................................................................................................ 88 7.1 PERFORMANCE REVIEW MEETING......................................................................................................................... 88 7.2 PERFORMANCE SATISFACTION SURVEY ................................................................................................................ 89 7.3 ROUTE AUDIT ......................................................................................................................................................... 90 ARTICLE 8...............................................................................................................................................92 RECORDS, REPORTS AND INFORMATION REQUIREMENTS ............................................................................. 92 8.1 GENERAL ................................................................................................................................................................ 92 339 May 24, 2013 vi City of Hermosa Beach 8.2 RECORDS ................................................................................................................................................................ 92 8.2.1 General .......................................................................................................................................................... 92 8.2.2 Financial Records .......................................................................................................................................... 93 8.2.3 Solid Waste Records ...................................................................................................................................... 93 8.2.4 CERCLA Defense and Disposal Records ...................................................................................................... 94 8.2.5 Other Programs' Records ............................................................................................................................. 95 8.2.6 Audit ............................................................................................................................................................. 95 8.2.7 Payments and Refunds ................................................................................................................................. 96 8.3 REPORTS ................................................................................................................................................................. 96 8.3.1 Report Formats and Schedule ....................................................................................................................... 96 8.3.2 Monthly Reports ........................................................................................................................................... 97 8.3.3 Annual Report .............................................................................................................................................. 97 8.3.4 Financial Report ............................................................................................................................................ 98 8.4 REPORTING ADVERSE INFORMATION .................................................................................................................... 98 8.5 RIGHT TO INSPECT RECORDS ................................................................................................................................. 99 8.6 FAILURE TO REPORT ............................................................................................................................................... 99 ARTICLE 9.............................................................................................................................................100 INDEMNIFICATION, INSURANCE AND BOND ...................................................................................................... 100 9.1 DEFENSE OF AGREEMENT .................................................................................................................................... 100 9.2 INDEMNIFICATION ............................................................................................................................................... 100 9.3 HAZARDOUS SUBSTANCES INDEMNIFICATION ................................................................................................... 101 9.4 AB 939 INDEMNIFICATION AND GUARANTEE .................................................................................................... 103 9.5 INSURANCE........................................................................................................................................................... 103 9.6 FAITHFUL PERFORMANCE BOND ......................................................................................................................... 109 9.7 FORFEITURE OF PERFORMANCE BOND ................................................................................................................ 109 9.8 PERFORMANCE SECURITY BEYOND SERVICE TERM ............................................................................................ 110 ARTICLE 10...........................................................................................................................................111 CITY'S RIGHT TO CONTRACT WITH THIRD PARTIES TO PERFORM FRANCHISED SERVICES ........... 111 ARTICLE 11...........................................................................................................................................112 DEFAULT, REMEDIES AND LIQUIDATED DAMAGES .......................................................................................... 112 11.1 EVENTS OF DEFAULT ....................................................................................................................................... 112 11.2 RIGHT TO TERMINATE UPON DEFAULT AND RIGHT TO SPECIFIC PERFORMANCE ....................................... 114 11.3 LIQUIDATED DAMAGES ................................................................................................................................... 115 11.4 EXCUSE FROM PERFORMANCE ........................................................................................................................ 120 11.4.1 Force Majeure ......................................................................................................................................... 120 11.4.2 Labor Unrest .......................................................................................................................................... 120 11.4.3 Procedures In Event of Excused Performance ........................................................................................ 121 11.5 NOTICE, HEARING AND APPEAL OF CITY BREACH ........................................................................................ 122 11.6 ASSURANCE OF PERFORMANCE ...................................................................................................................... 122 ARTICLE 12...........................................................................................................................................123 MISCELLANEOUS PROVISIONS .................................................................................................................................. 123 12.1 RELATIONSHIP OF PARTIES ............................................................................................................................. 123 12.2 COMPLIANCE WITH LAW ................................................................................................................................ 123 12.3 GOVERNING LAW ............................................................................................................................................ 123 12.4 JURISDICTION ................................................................................................................................................... 123 12.5 ASSIGNMENT ................................................................................................................................................... 124 12.6 CONTRACTING OR SUBCONTRACTING............................................................................................................ 126 12.7 BINDING ON ASSIGNS ...................................................................................................................................... 126 340 May 24, 2013 vii City of Hermosa Beach 12.8 COOPERATION IN PREPARATION FOR TERMINATION OR EXPIRATION OF CONTRACT ................................. 126 12.9 PARTIES IN INTEREST ....................................................................................................................................... 127 12.10 WAIVER ........................................................................................................................................................... 127 12.11 CONTRACTOR'S INVESTIGATION ..................................................................................................................... 128 12.12 CONDEMNATION ............................................................................................................................................. 128 12.13 NOTICE ............................................................................................................................................................ 128 12.14 REPRESENTATIVES OF THE PARTIES ................................................................................................................ 129 12.15 CITY FREE TO NEGOTIATE WITH THIRD PARTIES ........................................................................................... 129 12.16 COMPLIANCE WITH MUNICIPAL CODE .......................................................................................................... 129 12.17 PRIVACY ........................................................................................................................................................... 130 12.18 PROPRIETARY INFORMATION, PUBLIC RECORDS ............................................................................................ 130 12.19 ENTIRE AGREEMENT ....................................................................................................................................... 130 12.20 SECTION HEADINGS ........................................................................................................................................ 130 12.21 REFERENCES TO LAWS AND OTHER AGREEMENTS ........................................................................................ 131 12.22 INTERPRETATION ............................................................................................................................................. 131 12.23 AGREEMENT .................................................................................................................................................... 131 12.24 SEVERABILITY .................................................................................................................................................. 131 12.25 EXHIBITS .......................................................................................................................................................... 131 12.26 ATTORNEYS’ FEES ............................................................................................................................................ 131 Exhibits 1. Reserved 2. Initial Maximum Rates 3. Example Rate Adjustment Formula 4. City Litter and Recycling Collection Container Map 5. Corporate Guarantee 6. Contractor’s Faithful Performance Bond 7. Reserved 8. Initial Scout Service Customers 9. Downtown Area 10. Areas Where Automated Service Not Feasible (Can Service Areas) 11. Downtown Compactor Facility Service Area 12. Notary Certification 341 May 24, 2013 -1- City of Hermosa Beach AGREEMENT This Agreement for Integrated Solid Waste Management Services (hereinafter the “Agreement”) is entered into this ___ day of ________, 2013, by and between the City of Hermosa Beach, California, (“City”) and Arakelian Enterprises, Inc. dba Athens Services (“Contractor”), for the collection, transportation, recycling, processing, and disposal of solid waste and other services related to meeting the goals and requirements of the California Integrated Waste Management Act. RECITALS WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (“AB 939”) (California Public Resources Code Section 49100 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for solid waste handling within their jurisdictions; and, WHEREAS, pursuant to California Public Resources Code Section 49300 and 49500 through 49524 inclusive, the City has determined that the public health, safety, and well-being require that an exclusive franchise be awarded to a qualified company for the collection, transfer and transportation, recycling, processing, and disposal of solid waste and other services related to meeting the diversion goals required by AB 939, and other requirements of the California Integrated Waste Management Act; and, WHEREAS, City declares its intention of maintaining reasonable rates and quality service related to the collection, transfer and transportation, recycling, processing, and disposal of solid waste and other services; and, WHEREAS, in response to a Request for Proposals, Contractor has submitted a proposal to City and City selected the Contractor on the competitive advantages of that proposal over other proposals received by City; and, WHEREAS, City and Contractor (“Parties”) hereto desire to enter said Agreement; and, WHEREAS, City and Contractor are mindful of the provisions of the laws governing the safe collection, transport, recycling, processing and disposal of solid waste, including AB 939, the Resource Conservation and Recovery Act ("RCRA"), and the Comprehensive Environmental Response, Compensation and Liability Act 342 May 24, 2013 -2- City of Hermosa Beach ("CERCLA"). City and Contractor desire to leave no doubts as to their respective roles and to memorialize that by entering into this Agreement, City is not thereby becoming an "arranger" or a "generator" as those terms are used in CERCLA, and that it is Contractor, not City, who is "arranging for" the collection from premises in the City, transport for disposal, composting or other processing, and recycling of municipal solid waste which may contain hazardous substances; and further to confirm that as a material inducement to City entering into this Agreement, Contractor has agreed to fully indemnify City in connection with any claims, losses, liabilities, lawsuits or actions relating to the inadvertent or intentional collection, transportation and/or disposal of hazardous materials that may occur in connection with Contractor’s performance under this Agreement; and, WHEREAS, Contractor has agreed, as part of this Agreement, acting as an independent contractor to provide such personnel, equipment and supplies as are necessary to ensure City complies with the requirements of Public Resources Code Section 49100, et seq. NOW, THEREFORE, in consideration of the premises above stated and the terms, conditions, covenants and agreements contained herein, the Parties do hereby agree as follows: 343 May 24, 2013 -3- City of Hermosa Beach ARTICLE 1 DEFINITIONS The terms used in this Agreement shall have the meaning set forth in this Article 1. In the event a term is not defined in this Article 1, then it shall have the meaning set forth in the Hermosa Beach Municipal Code or in Division 30, Part 1, Chapter 2 of the California Public Resources Code (with precedence given to definitions in the Hermosa Beach Municipal Code over conflicting definitions contained in the Public Resources Code). Except as provided in Article 1, words beginning with lower case letters are being used with their common ordinary meanings, not as defined terms. Otherwise, the following capitalized words and terms shall have the following meanings: 1.1 AB 939 "AB 939" means the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000 et seq.), as it may be amended from time to time. 1.2 Affiliate "Affiliate" means all businesses (including corporations, limited and general partnerships and sole proprietorships) which are directly or indirectly related to Contractor by virtue of direct or indirect ownership interest or common management shall be deemed to be "Affiliated with" Contractor and included within the term "Affiliates" as used herein. An Affiliate shall include a business in which Contractor owns a direct or indirect ownership interest, a business which has a direct or indirect ownership interest in Contractor and/or a business which is also owned, controlled or managed by any business or individual which has a direct or indirect ownership interest in Contractor. For purposes of determining whether an indirect ownership interest exists, the constructive ownership provisions of Section 318(a) of the Internal Revenue Code of 1986, as in effect on the date of this Agreement, shall apply; provided, however, that (i) "ten percent (10%)" shall be substituted for "fifty percent (50%)" in Section 318(a)(2)(C) and in Section 318(a)(3)(C) thereof; and (ii) Section 318(a)(5)(C) shall be disregarded. For purposes of determining ownership under this paragraph and constructive or indirect ownership under Section 318(a), ownership interest of less than ten percent (10%) shall be disregarded and percentage interests shall be determined on 344 May 24, 2013 -4- City of Hermosa Beach the basis of the percentage of voting interest or value which the ownership interest represents, whichever is greater. 1.3 Billings "Billings" or “Billing” or “Bill” means the statements of charges provided to Customers for services rendered by Contractor. 1.4 Bin “Bin” means a metal Container with hinged lids and wheels with a capacity of less than ten (10) cubic yards. 1.5 Bin Service “Bin Service” means Solid Waste Handling Services in which a Bin is used for the Collection of Solid Waste. 1.6 Bulky Items “Bulky Items” means Solid Waste that cannot and/or would not typically be accommodated within a Cart including specifically: furniture (including chairs, sofas, mattresses, and rugs); appliances (including refrigerators, ranges, washers, dryers, water heaters, dishwashers, plumbing, small household appliances and other similar items, commonly known as “white goods”); yard debris, Green Waste and small pieces of wood limited to one cubic yard of contained material; Electronic Waste; fluorescent bulbs; household batteries; and clothing. Bulky Items do not include car bodies, tires, Construction and Demolition Debris or items requiring more than two (2) persons to remove. Other items not specifically included or excluded above will be Collected provided that they are not more than eight (8) feet in length, four (4) feet in width, or more than one hundred fifty (150) pounds. In the event a question ever arises as to whether a specific item or category of items meets the definition of Bulky Items, City shall be responsible to determine whether said definition shall apply, which determination shall be final and binding on the Parties. 345 May 24, 2013 -5- City of Hermosa Beach 1.7 CalRecycle “CalRecycle” means the State of California’s Department of Resources Recycling and Recovery, and, as this department was structured prior to January 1, 2010, the California Integrated Waste Management Board, or CIWMB. 1.8 Can “Can” means a plastic Container with a lid and with or without wheels, with a capacity between 30 and 35-gallons, also referred to as a barrel. 1.9 Can Service “Can Service” refers to Residential service provided in accordance with Section 4.1.2 in which Contractor provides Residential Customers Cans, bags or boxes, for Refuse Collection due to Cart Collection not being feasible. 1.10 Cart “Cart” means a plastic Container with a hinged lid and wheels serviced by an automated or semi-automated truck with a capacity of no less than 32- and no greater than 101-gallons. Cart also means a 20-gallon Cart provided to Residential Customers at a discounted rate as provided in this Agreement. 1.11 City "City" means City of Hermosa Beach, California, a municipal corporation, and all the territory lying within the municipal boundaries of City as presently existing or as such boundaries may be modified during the term of this Agreement. 1.12 City Manager “City Manager” means the City Manager of the City of Hermosa Beach and his or her designee. 1.13 Collect/Collection "Collect" or "Collection" means to take physical possession, transport, and remove Solid Waste within and from City. 346 May 24, 2013 -6- City of Hermosa Beach 1.14 Commercial "Commercial" refers to services performed at or for Commercial Premises. 1.15 Commercial Premises "Commercial Premises" means Premises located within the boundaries of the City, occupied or used for any purpose other than residential uses. It includes premises upon which business activity is conducted, including but not limited to retail sales, services, wholesale operations, manufacturing and industrial operations, but excluding Residential Premises upon which business activities are conducted when such activities are permitted under applicable zoning regulations and are not the primary use of the property. Notwithstanding any provision to the contrary herein in the Hermosa Beach Municipal Code or otherwise, for purposes of this Agreement, Premises upon which the following uses are occurring shall be deemed to be Commercial Premises: Assisted Living Facilities, Convalescent Homes, Dormitories, Extended Stay Motels, Group Residential Facilities, Group Care Facilities, Hotels, Hostels, and Motels. 1.16 Contractor "Contractor" means Arakelian Enterprises, Inc. dba Athens Services, a corporation organized and operating under the laws of the State of California and its officers, directors, employees, agents, companies and subcontractors, as permitted under Section 12.6. 1.17 Contractor's Proposal "Contractor's Proposal" means the proposal submitted by Contractor to City on May 7, 2012 in response to a Request for Proposals dated March 13, 2012. This Agreement supersedes Contractor’s Proposal and is the final written expression of the Parties’ Agreement. 1.18 Contractor Compensation "Contractor Compensation" means the revenue received by the Contractor from Customers and the City in return for providing services in accordance with this Agreement. 347 May 24, 2013 -7- City of Hermosa Beach 1.19 Construction and Demolition Debris "Construction and Demolition Debris" means Solid Waste generated at a Premises that is directly related to construction or demolition activities occurring thereon. 1.20 Container "Container" means any and all types of Solid Waste receptacles, including Carts, Cans, Bins and Roll-off Boxes. 1.21 CPI “CPI” means the Consumer Price Index (CUUR0000SA0L1E) for All Urban Consumers (CPI-U), all items less food and energy index – U.S. city average. 1.22 Customer “Customer” means a Person receiving Solid Waste Handling Services from Contractor pursuant to the terms of this Agreement. 1.23 Dispose/Disposal "Dispose” or “Disposal" means the ultimate disposition of Solid Waste Collected by Contractor at a landfill or otherwise in full regulatory compliance. 1.24 Disposal Site(s) "Disposal Site(s)" means the Solid Waste handling Facility or Facilities utilized for the ultimate Disposal of Solid Waste Collected by Contractor. 1.25 Diversion "Diversion" means any combination of waste prevention (source reduction), recycling, reuse and composting activities that reduces waste disposed at landfills, provided such activities are recognized by CalRecycle as Diversion in its determination of the City’s Diversion rate and compliance with AB 939. CalRecycle may limit Diversion considered to be achieved through Transformation/waste-to-energy, use of Green Waste as alternative daily cover (“ADC”) and other activities. 348 May 24, 2013 -8- City of Hermosa Beach 1.25A Downtown Area “Downtown Area” means the properties, businesses and Customers as defined in Exhibit 9. 1.25B Downtown Compactor “Downtown Compactor” means the Roll-Off Box attached to compaction equipment used to service the businesses located in the Downtown Compactor Facility Service Area (See Exhibit 11). 1.25C Downtown Compactor Facility “Downtown Compactor Facility” means the facility housing the Downtown Compactor (Roll-Off Box attached to compaction equipment), developed in City Parking Lot A. In the event that public restrooms are constructed as part of the Facility, the Downtown Compactor Facility does not include the public restrooms. 1.25D Downtown Compactor Facility Service Area “Downtown Compactor Facility Service Area” means portions of the Downtown Area where automated service is not feasible and Customers may utilize the Downtown Compactor Facility under the terms of this Agreement, and as further described in Exhibit 11. 1.26 Electronic Waste “Electronic Waste” means electronic equipment, including stereos, televisions, computers and monitors, VCRs, microwaves and other similar items commonly known as “brown goods” and “e-waste”. 1.27 Environmental Laws "Environmental Laws" means all federal and state statutes, county, local and City ordinances concerning public health, safety and the environment including, by way of example and not limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC §9601 et seq.; the Resource Conservation and Recovery Act, 42 USC §6902 et seq.; the Federal Clean Water Act, 33 USC §1251 et seq.; the Toxic Substances Control Act, 15 USC §1601 et seq.; the 349 May 24, 2013 -9- City of Hermosa Beach Occupational Safety and Health Act, 29 USC §651 et seq.; the California Hazardous Waste Control Act, California Health and Safety Code §25100 et seq.; the California Hazardous Substance Account Act, California Health and Safety Code §25300 et seq.; the Porter-Cologne Water Quality Control Act, California Water Code §13000 et seq.; the Safe Drinking Water and Toxic Enforcement Act, California Health and Safety Code §25249.5 et seq.; and Hermosa Beach Municipal Code Chapter 8; as currently in force or as hereafter amended, and all rules and regulations promulgated there under. 1.28 Facility "Facility" means any plant or site, owned or leased and maintained, operated or used by Contractor for purposes of performing under this Agreement. 1.28A Food Waste “Food Waste” means Solid Waste that may be Collected as part of the Food Waste programs included in Sections 4.3.1 and 4.3.7, which includes: • All food (including fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese and eggshells); • Food-soiled paper (including napkins, paper towels, paper plates); and, • Tea bags, coffee grounds and filters. 1.29 Green Waste "Green Waste" means tree trimmings, wood stumps, small pieces of wood, grass cuttings, dead plants, leaves, branches, flowers, plant stocks, and dead trees (not more than six (6) inches in diameter or forty-eight (48) inches in length) and similar materials. 1.30 Green Waste Processing Facility “Green Waste Processing Facility” means a permitted Facility where Green Waste is sorted, mulched or separated for the purposes of Recycling, reuse or composting. 1.31 Gross Receipts “Gross Receipts” means any and all revenue received from Billings by City or Contractor, and compensation in any form, of Contractor or subsidiaries, parent companies or other Affiliates of Contractor, for the Collection and transportation of 350 May 24, 2013 -10- City of Hermosa Beach Solid Waste pursuant to this Agreement, in accordance with Generally Accepted Accounting Principles, including, but not limited to, Customer fees for Collection of Solid Waste, without subtracting Disposal fees, City fees or other fees or any other cost of doing business. Sales revenue from the sale of Recyclable Materials is excluded from Gross Receipts for the purpose of calculating Collector Fees. 1.32 Hazardous Substance "Hazardous Substance" shall mean any of the following: (a) any substances defined, regulated or listed (directly or by reference) as "Hazardous Substances", "hazardous materials", "Hazardous Waste", "toxic waste", "pollutants" or "toxic substances" or similarly identified as hazardous to human health or the environment, in or pursuant to (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC §9601 et seq. (CERCLA); (ii) the Hazardous Materials Transportation Act, 49 USC §1802, et seq.; (iii) the Resource Conservation and Recovery Act, 42 USC §6901 et seq.; (iv) the Clean Water Act, 33 USC §1251 et seq.; (v) California Health and Safety Code §§25115-25117, 25249.8, 25281, 25316, 25501 and 25501.1; (vi) the Clean Air Act, 42 USC §7901 et seq.; and (vii) California Water Code §13050; (b) any amendments, rules or regulations promulgated there under to such enumerated statutes or acts currently existing or hereafter enacted; and (c) any other hazardous or toxic substance, material, chemical, waste or pollutant identified as hazardous or toxic or regulated under any other applicable federal, state or local Environmental Laws currently existing or hereinafter enacted, including, without limitation, friable asbestos, polychlorinated biphenyl’s ("PCBs"), petroleum, natural gas and synthetic fuel products and by- products. 1.33 Hazardous Waste "Hazardous Waste" means all substances defined as Hazardous Waste, acutely Hazardous Waste, or extremely Hazardous Waste by the State of California in Health and Safety Code §25110.02, §25115, and §25117 or in the future amendments to or recodifications of such statutes or identified and listed as Hazardous Waste by the US Environmental Protection Agency (EPA), pursuant to the Federal Resource Conservation and Recovery Act (42 USC §6901 et seq.), all future amendments thereto, and all rules and regulations promulgated there under. 351 May 24, 2013 -11- City of Hermosa Beach 1.34 Household Hazardous Waste (“HHW”) "Household Hazardous Waste" means Hazardous Waste generated at Residential Premises. 1.35 Materials Recovery Facility (“MRF”) "Materials Recovery Facility" means a permitted Solid Waste Facility where Solid Wastes or Recyclable Materials are sorted or separated for the purposes of Recycling, processing or composting. 1.36 Multi-Family Dwelling "Multi-Family Dwelling" means any building or lot containing five (5) or more dwelling units. Multi-Family Dwelling units generally receive Refuse Collection service through the use of shared Bins, but may use Carts. Service is not dependent upon unit count unless specifically stated. 1.37 Person "Person" means any individual, firm, association, organization, partnership, corporation, business trust, joint venture, the United States, the State of California, Los Angeles County, cities, and special purpose districts. 1.38 Premises "Premises" means any land or building in City where Solid Waste is generated or accumulated. 1.39 Rate Year "Rate Year" means the period July 1 to June 30, for each year during the Term of this Agreement. 1.40 Recycle/Recycling “Recycle” or "Recycling" means the processing of Recyclable Materials for the purpose of returning them to the economy in the form of raw materials for new, reused, or reconstituted products. The Collection, transportation or Disposal of Solid Waste not 352 May 24, 2013 -12- City of Hermosa Beach intended for, or capable of, reuse is not Recycling. Recycling does not include use of Solid Waste for conversion to energy. 1.41 Recyclable Materials "Recyclable Materials" means Solid Waste that is Source Separated, has some potential economic value, and is set aside, handled, packaged, or offered for Collection in a manner different from Refuse in order to allow it to be processed for Recycling. 1.42 Refuse "Refuse" means putrescible and non-putrescible Solid Waste. 1.43 Residential "Residential" refers to services performed at and for Residential Premises, which include both Single-Family Dwellings and Multi-Family Dwellings. 1.44 Residential Premises “Residential Premises” means Premises upon which dwelling units exist, including, without limitation, Single Family Dwellings, apartments, boarding or rooming houses, condominiums and mobile homes. Notwithstanding any provision to the contrary herein, in the Hermosa Beach Municipal Code, or otherwise, for purposes of this Agreement, Premises upon which the following uses are occurring shall not be deemed to be Residential Premises, and rather shall be deemed to be Commercial Premises: Assisted Living Facilities, Convalescent Homes, Dormitories, Extended Stay Motels, Group Residential Facilities, Group Care Facilities, Hostels, Hotels, Motels, and any other businesses not specifically listed at which residency is transient in nature and hence should be classified as Commercial Premises as determined by City on a case by case bases. 1.45 Roll-off Box “Roll-off Box” means Solid Waste Collection Containers of 10 (ten) cubic yards or larger. 353 May 24, 2013 -13- City of Hermosa Beach 1.46 Single Family Dwelling "Single Family Dwelling" means a dwelling unit in a building containing fewer than five (5) Residential dwelling units. Single Family Dwelling units generally receive individual Can or Cart Refuse Collection service, but service is not dependent upon unit count unless specifically stated. 1.47 Solid Waste "Solid Waste" means all discarded putrescible and non-putrescible solid, semisolid, and liquid wastes, including Refuse, Construction and Demolition Debris, Bulky Items, Recyclable Materials, Green Waste, and Food Waste or any combination thereof which are permitted to be disposed of in a Class III landfill, and which are included in the definition of “Non-hazardous Solid Waste” set forth in the California Code of Regulations. 1.48 Solid Waste Handling Services “Solid Waste Handling Services” means the Collection, transfer, transport, Recycling, processing, and Disposal of Solid Waste. 1.49 Source Separated "Source Separated" means the segregation by the Waste Generator of individual components of Solid Waste, which otherwise would become Refuse or garbage (such as glass bottles, metal cans, newspapers, plastic containers, Green Waste etc.) into separate Container(s) for the purpose of allowing the Recycling of such materials. 1.50 State “State” means the State of California. 1.51 Transformation “Transformation” means incineration, pyrolysis, distillation, gasification, or biological conversion other than composting. 354 May 24, 2013 -14- City of Hermosa Beach 1.52 Transfer Station “Transfer Station” means a Facility that receives Solid Waste from Collection vehicles and transfers the material to larger vehicles for transport to landfills and other destinations. Transfer Stations may or may not include MRFs, transferring residual Refuse (Refuse left after the sorting of Recyclable Materials) to landfills and Recyclable Materials, including Green Waste and/or Construction and Demolition debris, to processors, brokers or end-users. 1.53 Waste Generator "Waste Generator" means any Person as defined by the Public Resources Code, whose act or process produces Solid Waste as defined in the Public Resources Code, or whose act first causes Solid Waste to become subject to regulation. 355 May 24, 2013 -15- City of Hermosa Beach ARTICLE 2 GRANT AND ACCEPTANCE OF FRANCHISE 2.1 Grant and Acceptance of Franchise, Indemnity of Award Subject to the terms and conditions of this Agreement (including but not limited to the exclusions set forth in Section 2.9 hereof) and applicable State laws, and to the rights of State, county and school district facilities to use a Solid Waste enterprise other than Contractor, City hereby grants to Contractor and Contractor hereby accepts from City, for the Term hereof, the exclusive franchise, right and privilege to provide Solid Waste Handling Services at all Residential and Commercial Premises within City (the “Franchise”). 2.2 Enforcement of Exclusivity Contractor shall be responsible for enforcing the exclusivity of this Agreement. City shall have the right to enforce the exclusivity provisions hereof if, in its absolute and sole discretion, it chooses to do so, but shall have no obligation to do so for the benefit of Contractor or otherwise. City additionally shall have the right, but not the obligation, to request that Contractor enforce the exclusivity provisions hereof. Contractor shall have an affirmative obligation to enforce such exclusivity provisions when requested to do so by City. For example, Contractor may be asked to notify City of inappropriately placed Containers and to place warning tags on such Containers. City may direct Contractor to impound such Containers in accordance with the City’s Municipal Code and may be entitled to charge Container owners City-approved fees for such impounding. If Contractor requests that City take administrative, law enforcement, or other legal action to protect Contractor’s exclusive rights, or otherwise enforce the exclusivity of this Agreement (including the adoption of any resolution or ordinance intended to facilitate the enforcement of the exclusive rights granted herein), Contractor shall reimburse City for all administrative, law enforcement, or other legal costs and fees related to any such action. Contractor’s obligation to reimburse City shall not apply to any criminal enforcement by City. 356 May 24, 2013 -16- City of Hermosa Beach 2.3 Effective Date The “Effective Date” of this Agreement shall be the date which the City Council approves this Agreement. 2.4 Term of Agreement The term of this Agreement (the “Term”) shall be eight (8) years, commencing on July 1, 2013, and expiring June 30, 2021, subject to extension as provided in Section 2.5, as applicable. Notwithstanding the foregoing, the unexcused failure or refusal of Collector to perform any material term, covenant, obligation or condition contained in this Agreement shall give rise to the right, in favor of City, for earlier termination of this Agreement for cause in accordance with the procedures elsewhere contained herein. 2.5 City’s Option to Extend Term City shall have the sole option to extend the Term of this Agreement up to twenty-four (24) months following the Agreement Term under Section 2.4. The City may, upon at least ninety-day (90-day) advance written notice to the Contractor prior to the expiration of the Term of this Agreement, exercise this extension option. This extension period shall terminate, upon the earlier of: (i) the expiration of the aforementioned twenty-four (24) months, or (ii) the date City instructs Contractor that the contact will end, provided written notice of termination is provided to Contractor by City at least ninety (90) days prior to this termination date. 2.6 Representations and Warranties of Contractor Contractor hereby covenants, represents, and warrants the following to City for the purpose of inducing City to enter into this Agreement and to consummate the transaction contemplated hereby, all of which shall be true as of the date of this Agreement and as of the Effective Date: a) Contractor is validly existing as a corporation under the laws of the State of California. b) Neither the execution of this Agreement nor the delivery by Contractor of services nor the performance by Contractor of its obligations hereunder: (1) conflicts with, violates or results in a breach of any applicable law; (2) conflicts with, violates or results in a breach of any term or condition of any judgment, 357 May 24, 2013 -17- City of Hermosa Beach decree, agreement (including, without limitation, the certificate of incorporation of Contractor) or instrument to which Contractor is a party or by which Contractor or any of its properties or assets are bound, or constitutes a default under any such judgment, decree, agreement or instrument; or (3) will result in the creation or imposition of any encumbrance of any nature whatsoever upon any of the properties or assets of Contractor. c) There is no action, suit or other proceeding as of the date of this Agreement, at law or in equity, or to the best of Contractor’s knowledge, any investigation, before or by any court or governmental authority, pending or threatened against Contractor which is likely to result in an unfavorable decision, ruling or finding which would materially and adversely affect the validity or enforceability of this Agreement or any such agreement or instrument entered into by Contractor in connection with the transactions contemplated hereby, or which could materially and adversely affect the ability of Contractor to perform its obligations hereunder or which would have a material adverse effect on the financial condition of Contractor. This provision may be waived by the City acting through its City Manager. d) Contractor has no knowledge of any applicable law in effect as of the date of this Agreement that would prohibit the performance by Contractor of this Agreement and the transactions contemplated hereby. e) Contractor has made an independent investigation, satisfactory to it, of the conditions and circumstances surrounding this Agreement and the work to be performed by it, and is satisfied that those conditions and circumstances will not impair its ability to perform the work and provide the Collection services required by this Agreement. f) The information supplied by Contractor in all submittals made in connection with negotiation and execution of this Agreement, including all materials in Exhibits of this Agreement, and all representations and warranties made by Contractor throughout this Agreement are true, accurate, correct and complete in all material respects on and as of the Effective Date of this Agreement. Inaccuracies in Contractor’s Proposal, such as material omissions of past and pending litigation as requested under the Request for Proposals through which this Agreement was procured, are grounds for termination of this Agreement. 358 May 24, 2013 -18- City of Hermosa Beach g) Contractor’s representative, designated in Section 5.2.3, shall have authority in all daily operational matters related to this Agreement. City may rely upon action taken by such designated representative as action of Contractor unless the actions taken are not within the scope of this Agreement. 2.7 Conditions to Effectiveness of Agreement The satisfaction of each and all of the conditions set out below, each of which may be waived in whole or in part by City in writing, is a condition precedent to the effectiveness of this Agreement: a) Accuracy of Representations. All representations and warranties made by Contractor and set forth in this Agreement shall be accurate, true and correct on and as of the Effective Date. b) Absence of Litigation. There shall be no litigation pending in any court challenging the award of this Franchise to Contractor or the execution of this Agreement or seeking to restrain or enjoin its performance. This provision may be waived by the City, acting through its City Manager. c) Furnishing of Insurance and Bond. Contractor shall have furnished evidence of the insurance and bonds required by Article 9, and shall comply with all ongoing requirements relating thereto. d) Contractor shall have paid the contracting fee to City, as provided in Section 3.1. 2.8 Delegation of Authority The administration of this Agreement by City shall be under the supervision and direction of City Manager's office and the actions specified in this Agreement, unless otherwise stated, shall be taken by the City Manager. This section shall in no way be interpreted to obviate required City Council action if so provided in the Hermosa Beach Municipal Code. 2.9 Limitations to Scope Notwithstanding any provision to the contrary contained herein, the exclusive franchise, right and privilege to provide Solid Waste Handling Services at Premises within City granted to Contractor by this Agreement specifically excludes the following 359 May 24, 2013 -19- City of Hermosa Beach services, which services may be provided by Persons other than Contractor and which may be the subject of other permits, licenses, franchises or agreements issued or entered into by City: a) The sale or donation of Source-Separated Recyclable Material by the Waste Generator to any Person or entity other than Contractor; provided, however, if the Generator is required to pay monetary or non-monetary consideration for the Collection, transportation, transfer, or processing of Recyclable Material, even if the Generator receives a reduction or discount in price (or in other terms of the consideration the Generator is required to pay), the transaction shall not be considered a sale or donation; b) Solid Waste, including Recyclable Materials and Green Waste, which is removed from any Premises by the Waste Generator, and which is transported personally by such Generator (or by his or her full-time employees) to a processing or Disposal Facility in a manner consistent with all applicable laws and regulations; c) Green Waste removed from a Premises by a gardening, landscaping, or tree trimming contractor, utilizing its own equipment, as an incidental part of a total service offered by that contractor, rather than as a hauling service; d) The Collection, transfer, transport, Recycling, processing, and disposal of animal remains from slaughterhouse or butcher shops for use as tallow; e) The Collection, transfer, transport, Recycling, processing, and disposal of by- products of sewage treatment, including sludge, sludge ash, grit and screenings; f) The Collection, transfer, transport, Recycling, processing, and disposal of Hazardous Substances, Hazardous Waste, Household Hazardous Waste and radioactive waste regardless of its source; g) The Collection transfer, transport, Recycling, processing, and Disposal of Construction and Demolition Debris; h) The Collection of Refuse and/or Recyclables from public litter Containers (see Section 4.5.2 and Exhibit 4); i) The Collection, transfer, transport, Recycling, processing, and Disposal of Solid Waste generated from City-owned and/or operated premises, public works 360 May 24, 2013 -20- City of Hermosa Beach projects, City-sponsored events or other City-related activities, by City through City officers or employees in the normal course of their City employment; and, j) Solid Waste Handling Services for governmental agencies other than City, which may have facilities in City, but over which City has no jurisdiction in connection with the regulation of Solid Waste. The exclusive franchise, right and privilege to provide Solid Waste Handling Services within City granted to Contractor by this Agreement shall be interpreted to be consistent with all applicable state and federal laws, now in effect and adopted during the term of this Agreement, and the scope of this Agreement shall be limited by all applicable current and developing laws and regulations. In the event that future interpretations of current law, future enactments or developing legal trends limit the ability of City to lawfully grant Contractor the scope of services as specifically set forth herein, Contractor agrees that the scope of this Agreement will be limited to those services and materials which may be lawfully provided, and that City shall not be responsible for any lost profits claimed by Contractor as a result thereof. 2.10 City's Right to Direct Changes 2.10.1 General City may direct Contractor to perform additional services (including new Recycling or other Diversion programs, additional Solid Waste processing, etc.) or modify the manner in which it performs existing services or Bills for services. Pilot programs and innovative services which may entail new Collection methods, and different kinds of services and/or new requirements for Waste Generators are included among the kinds of changes which City may direct. Contractor acknowledges that State law may increase the Diversion requirement during the term of this agreement and Contractor agrees to propose services to meet such Diversion requirements. Contractor shall be entitled to an adjustment in its Contractor Compensation for providing such additional or modified services, including a profit factor equal to ten percent (10%) of the incremental cost of such additional or modified services. City may utilize cost components included in the Contractor’s Proposal in calculating equitable rate adjustments. If City and Contractor cannot agree on compensation for new or additional services within ninety (90) days from the date City first requests a proposal from Contractor, then City may contract 361 May 24, 2013 -21- City of Hermosa Beach with other parties for such services, which shall be considered exempt from the exclusivity provisions of Section 2.1. 2.10.2 New Diversion Programs Contractor shall present, within thirty (30) days of a request to do so by City, a proposal to provide additional or expanded Diversion services. The proposal shall contain a complete description of the following: • Collection methodology to be employed (equipment, manpower, etc.). • Equipment to be utilized (vehicle number, types, capacity, age, etc.). • Labor requirements (number of employees by classification). • Type(s) of Containers to be utilized. • Type(s) of material to be Collected. • Provision for program publicity/education/marketing. • One-year projection of the financial results of the program's operations in an operating statement format, including documentation of the key assumptions underlying the projections, and the support for those assumptions. 2.11 Ownership of Solid Waste City and Contractor understand and agree that it is Contractor, and not City, who will arrange to Collect Solid Waste, that City has not, and, by this Agreement does not, instruct Contractor on its Collection methods, nor supervise the Collection process; nor do the Parties intend to place title to Solid Waste Collected by Contractor in City. Rather, the Parties intend that whatever, if any, title in and to the Solid Waste that is Collected by Contractor which otherwise might exist in or with City in the absence of this Agreement is hereby transferred to Contractor; and further that if Contractor gains title to such Solid Waste it is by operation of law and agreement with its Customers and is not the result of this Agreement. Subject to the provisions of this Agreement, and unless City exercises its rights to direct the location for Disposal and processing of Solid Waste, Contractor shall have the right to retain, Recycle, process, dispose of, and otherwise use Solid Waste Collected pursuant to the terms hereof in any lawful fashion 362 May 24, 2013 -22- City of Hermosa Beach or for any lawful purpose; and, further, shall have the right to retain any benefit resulting from its right to retain, Recycle, process, dispose of, or reuse the Solid Waste which it Collects. City’s right to redirect Solid Waste is not intended to impact Contractor’s right to retain Recyclables revenue pursuant to Section 4.2.4 of this Agreement. Ownership of Solid Waste shall transfer to Contractor when Customer places it at point of Collection. Pursuant to Section 4.8, City reserves the right to designate the Solid Waste Facilities, including the Disposal Sites, to be used by Contractor. If City directs Contractor to a Facility other than a Solid Waste Facility chosen by Contractor (or directs Contractor to change the amount of Solid Waste being delivered to a Facility), and in doing so it adversely affects the ability of Contractor to meet either or both of the requirements of Section 4.2.5 and/or Section 9.4, then in this event the City and Contractor shall meet and confer and mutually agree on revised obligations for Sections 4.2.5 and 9.4. In addition, if any such exercise by City serves to significantly change Contractor’s cost of Disposal, processing and transportation of Solid Waste, rates may be equitably adjusted. 2.12 Contractor Status Contractor represents and warrants that it is duly organized, validly existing and in good standing under applicable laws. It is qualified to transact business in the State of California and has the power to own its properties and to carry on its business as now owned and operated and as required by this Agreement. 2.13 Contractor Authorization Contractor represents and warrants that it has the authority to enter into and perform its obligations under this Agreement. The Board of Directors or partners of Contractor (or the shareholders, if necessary) have taken all actions required by law, its articles of incorporation, its bylaws or otherwise to authorize the execution of this Agreement. The Persons signing this Agreement on behalf of Contractor have authority to do so. Contractor shall authorize one employee for the City as a single point of contact for issues arising under this Agreement, and Contractor acknowledges and agrees that City may expect and assume that this employee’s actions are taken on behalf of and with the full approval of the Contractor. 363 May 24, 2013 -23- City of Hermosa Beach 2.14 Permits and Licenses Contractor shall acquire and maintain all necessary permits and licenses for the Collecting, transporting, processing, and storing of Solid Waste including Recyclables, disposing of Solid Waste, and the Recycling of Recyclables as required under this Agreement. Failure to maintain all required permits shall be deemed a material breach of contract for which City may terminate this Agreement as provided in Section 11.1. Contractor must follow requirements of the Hermosa Beach Municipal Code. 364 May 24, 2013 -24- City of Hermosa Beach ARTICLE 3 FEES PAID TO THE CITY In addition to any other consideration set forth herein, as part of its consideration for entering into this Agreement, and for the exclusive franchise, right and privilege to provide Solid Waste Handling Services as specified herein, Contractor shall provide the following: 3.1 Contracting Fee Contractor shall pay to City a “Contracting Fee” in a one-time lump sum payment of One Hundred Fifty Thousand Dollars ($150,000) within seven (7) days of execution of this Agreement to reimburse the City for costs it incurred in connection with entering this Agreement. 3.2 Collector Fee In consideration of the exclusive Franchise granted pursuant to this Agreement, the Contractor shall pay to the City a “Collector Fee,” equal to 10% of the Gross Receipts, net of AB 939 fees, received by Contractor. See Section 3.5 for submittal requirements. 3.3 Administrative Fee To cover the cost of administering and managing the Franchise, the Contractor shall pay to the City an annual Administrative Fee in the amount of Fifty Thousand Dollars ($50,000), one twelfth of which to be paid monthly in accordance with Section 3.5. The Administrative Fee shall be adjusted annually, beginning with the January payment, by the percentage change in the Consumer Price Index for all Urban Customers (CPI-U), all items less food and energy – US City average for the twelve (12) month period ended the prior September. See Section 3.5 for submittal requirements. 3.4 AB 939 Fee In order to support City’s recycling efforts, Contractor shall remit to City an AB 939 Fee in an amount equal to twenty-five cents ($0.25) per Residential Cart/Can Customer per month, and twenty-five cents ($0.25) per cubic yard of Refuse collected for all other Customers, including Multi-Family Bin, Commercial Cart, Bin and Can and Roll-Off 365 May 24, 2013 -25- City of Hermosa Beach Box Customers, for both permanent and temporary services, but excluding source separated Recyclable Material Collection. See Section 3.5 for submittal requirements. See approved rate schedule for AB 939 fees by service level. An example calculation of the monthly AB 939 Fee for a Bin Customer is as follows: a three (3) cubic yard Bin Collected five (5) times per week will result in an AB 939 fee of $16.25 per month ($0.25 per cubic yard x 3 cubic yards x 5 times per week x 4.33 weeks per month). 3.5 Timing and Submittal of Monthly Fee Payments On or before the fifteenth (15th) day of each month during the Term of this Agreement, Contractor shall remit the Collector Fee and the AB 939 Fee based upon services provided to City the previous month, and one-twelfth of the annual Administrative Fee. If the fees are not paid on or before the fifteenth (15th) day of the month, Contractor shall, along with fee payment, pay the maximum interest rate permitted by law on any balance not paid by the due date. Contractor shall prepare and submit a fee payment statement with each fee payment that includes receipts by sector and supporting fee calculations for each fee. Note that, as the Collector and AB 939 Fees are paid based upon the prior month’s services and receipts, a payment will be due the month following termination of the Agreement. This will not apply to the Administrative Fee, which is payable each month beginning July 2013. 3.6 Future Fees In the event that City implements a new fee in compliance with all legal requirements such as Proposition 218 (including an increase in the Collector Fee percentage, or the AB 939 fee dollar amount), Contractor shall be entitled to a rate adjustment in an amount sufficient to recover the fee from Customers. City may elect to have Contractor pay monthly, or on another schedule as City identifies. City may set deadlines and late fees, and additional fees would be subject to audit. 366 May 24, 2013 -26- City of Hermosa Beach ARTICLE 4 DIRECT SERVICES 4.1 Refuse 4.1.1 General The work to be done by Contractor pursuant to this Agreement shall include, but not be limited to, the furnishing of all labor, supervision, equipment, materials, supplies, and all other items necessary to perform the services required. The enumeration of, and specification of requirements for, particular items of labor or equipment shall not relieve Contractor of the duty to furnish all others, as may be required, whether enumerated elsewhere in the Agreement or not. The work to be done by Contractor pursuant to this Agreement shall be accomplished in a thorough and professional manner so that all Customers are provided reliable, courteous and high-quality Solid Waste Handling Services at all times. The enumeration of, and specification of requirements for, particular aspects of service quality shall not relieve Contractor of the duty of accomplishing all other aspects in the manner provided in this section, whether such other aspects are enumerated elsewhere in the Agreement or not. 4.1.2 Residential Cart/Can Refuse Collection Contractor will supply each Residential Refuse Cart Customer with 96, 64, 32 or 20- gallon Refuse Cart(s), as requested by Customer as described in Section 4.4.1.1. Residential Customers shall be charged based upon the number and size of Refuse Carts requested. Should a Residential Customer require more than one (1) 20-gallon Refuse Cart to contain all Collected Refuse, then the Residential Customer shall be required to convert to a larger Cart at the applicable rates. Alternative “Can” Service - Residential Customers who cannot accommodate Carts due to space constraints and/or conditions otherwise preventing the use of Carts will continue to receive service using Contractor-provided Refuse Containers, such as Cans, bags or boxes, for an equivalent monthly fee based on Container size; this form of service shall be called “Can” service. If Contractor and Customer cannot agree on whether Can service is necessary, the City Manager shall make the final determination. 367 May 24, 2013 -27- City of Hermosa Beach Residential Customers that receive Can service in the form of barrels may request, and Contractor shall supply, barrels with both lids and wheels to facilitate ease of movement by Customers. Contractor shall Collect Refuse delivered for Collection in accordance with this section not less than once per week. The designated Collection location of Containers, if disputed by the Customer or the Contractor, shall be determined by the City. Additionally, if in the City’s opinion the existing Collection location is inappropriate, the City may require the Customer and/or the Contractor to relocate the Collection location. 4.1.3 Refuse Cart/Can Overage Residential Cart Customers may periodically generate more Refuse than will fit in the Refuse Cart(s)/Can(s). Residential Customers are therefore entitled to six (6) annual pickups per calendar year of material that does not fit in the Refuse Cart(s) at no additional charge. One pickup shall consist of up to the equivalent of three (3) large bags, boxes or barrels of Refuse. Additionally, Contractor shall Collect all additional Refuse placed out for Collection in the Residential Customer’s own Containers (bags, barrels, etc.) at no additional charge for two (2) weeks beginning each December 26. This service is limited to Refuse that could otherwise be placed in the Refuse Cart or Cans, and not Bulky Items which are Collected in accordance with Sections 1.6 and 4.1.15. Residential Customers may be charged per pickup in accordance with the approved rate schedule for overage pickups exceeding six (6) per year and outside the two-week period beginning December 26. Commercial Customers may request Cart overage Collections in accordance with the approved rate, but are not entitled to free overage collections. 4.1.4 Walk-Out Service Walk-Out Service means that Contractor will remove Refuse, Recyclable and Green Waste Carts and, if applicable, Customer-provided Containers from Customer’s storage area, place them out for Collection, and return Carts and Customer-provided 368 May 24, 2013 -28- City of Hermosa Beach Containers to Customer’s storage area after Collection, ensuring that all doors or gates are closed securely. Contractor shall provide disabled Residential (excluding Bin) Customers with Walk- Out Service at no additional charge. In order to qualify as disabled under this Section, Customers must provide evidence that they are physically unable to move the Containers, such as a doctor’s note, or must otherwise obtain approval to receive such services from the City. Additionally, Walk-Out Service need not be provided if an able- bodied person resides with the disabled Customer. Customers may be asked periodically, but no more than once per year, to sign an affidavit that no able-bodied residents reside at the Premises. Able-bodied Customers may request Walk-Out Service for an additional charge in accordance with the approved rate schedule. 4.1.5 Bin Refuse Collection Contractor shall provide Bin Service to Residential Customers not receiving Cart or Can service, and Commercial Customers. Contractor shall Collect and remove all Refuse that is placed in Bins at least once per week, and more frequently if required to handle the waste generated at the Premises where the Bins are located. If Contractor and Customer dispute applicable service levels, City shall make final determination as to the number and size of Containers, and frequency of Collection to be provided to Customers. Special consideration shall be given when determining the pickup areas to ensure that the flow of traffic is not impeded. Contractor shall provide 1, 1.5, 2, 3, 4, 6 and 8 cubic yard Bins upon request. Contractor will service Bins equipped with compaction devices or “compactors” that attach to the Bins. The provision of the compaction device itself is outside of this Agreement. 4.1.6 Commercial Premises Cart Service Contractor shall offer Collection in 32, 64 or 96-gallon Refuse Carts to Customers at Commercial Premises that do not have space for a Bin. If Contractor and Customer have a disagreement as to whether a Refuse Cart is appropriate, or if City determines the Collection in a Refuse Cart causes health and safety or other concerns, City shall make the final determination as to whether Collection in a Refuse Cart may occur. 369 May 24, 2013 -29- City of Hermosa Beach 4.1.7 Overflowing Bins and Carts Customers that regularly produce more Refuse than their current level of service can accommodate may have their service level increased in accordance with the following procedure. Containers may be considered overflowing if Solid Waste rises above the top of the Container sufficiently that it is likely to fall out of the Container. First Incident in Three Month Period – If more material is placed for Collection than fits in a Containers (unless Collection of overage has been properly arranged under Section 4.1.3), Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer (at both the service and billing addresses) the picture and a letter instructing that additional instances may result in an increase in the level of service. Second Incident in Three Month Period – Upon the second event of an overfilled Container (unless Collection of overage has been properly arranged under Section 4.1.3) in a three-month period, Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer the picture and a letter instructing that a third incident in that same three month period may result in an increase in the level of service. Third Incident in Three Month Period – Upon the third event of an overfilled Containers (unless Collection of overage has been properly arranged under Section 4.1.3) in a three-month period, Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer the picture and a letter requesting that Customer increase its service level. If the Customer declines, Contractor may petition City to permit Contractor to increase the service level to accommodate the higher demand for service. City approval is required prior to increasing a Customer’s service level without prior Customer consent. 4.1.8 Temporary Bin Service Contractor shall provide exclusive temporary Bin Service to Customers upon request. Contractor must deliver a temporary Bin to a Customer within forty-eight (48) hours of request (Sundays and holidays identified in Section 4.6.1.1 excluded). Rates for temporary Bin Service are listed separately in the approved rate schedule. 370 May 24, 2013 -30- City of Hermosa Beach 4.1.9 Scout Vehicles Scout vehicles are defined as vehicles that transport a Solid Waste Container to and from the point of Collection by a Collection vehicle. Customers receiving scout truck service immediately prior to the start of service under this Agreement will continue to receive this service as identified in Exhibit 8. Contractor may continue to charge existing scout service Customers for this service, if it is operationally required to service the Bin. Contractor may add Customers to this service if the Bin cannot otherwise be positioned for Collection or if the service is requested by the Customer, or remove Customers from the scout route, in accordance with the approved rate schedule. In the event of a disagreement, the City shall make the final decision. 4.1.10 Bin Push-out Service Contractor shall maneuver Customers’ Bins to the point of Collection, and return the Bins to Bin enclosures or other storage locations. Company may only charge a push-out fee, included in the approved rate schedule, if the push-out distance is at least ten (10) feet from the front of the enclosure or other storage location to the point on the Bin closest to the storage location when positioned for Collection, and that this point of Collection is as close to the storage location as operationally feasible. If it is operationally feasible for the route Collection vehicles to Collect at a location close enough that this measurement does not reach ten feet, a fee will not be applied. In accordance with Exhibit 2, if a fee is permitted per this section, it may be applied for each fifty (50) feet the Bin must be moved; charged once for ten (10) to fifty (50) feet, twice for fifty-one (51) to one hundred (100) feet, etc. Application of this fee to Customers not already being charged is subject to written approval of the City. A push-out and a scout charge may not both be applied for servicing the same Bin. 4.1.11 Locking Bins Contractor shall provide locking Bin Service (including providing the hasp and lock and servicing the lock) to Customers that request such service in accordance with the approved rate schedule. 371 May 24, 2013 -31- City of Hermosa Beach 4.1.12 Roll-off Box Service Contractor shall provide exclusive permanent and temporary Roll-off Box Collection service upon request. Contractor must deliver a temporary Roll-off Box to a Customer within forty-eight (48) hours of request (Sundays and holidays identified in Section 4.6.1.1 excluded). Contractor will provide standard 10, 30 and 40-cubic-yard standard Roll-off Boxes. The provision of compactor Roll-off Boxes, which are enclosed Containers attached to a compaction devise, is not included in this Agreement. Providing service to such compactor Roll-off Boxes is included. Roll-off Box service shall be Billed at a pull plus dump rate, meaning a flat rate for service plus a per ton rate for the Solid Waste Collected. Customer may be charged a per ton overweight charge for each ton over ten (10) in any Roll-Off Box load. If Contractor can determine that a load is greater than ten (10) tons prior to Collection, Contractor may instruct Customer to reduce the load to no more than ten (10) tons. 4.1.13 Extra Assistance in High Solid Waste Generating Commercial Areas Areas of the City, particularly the Downtown Area, receive a significant increase in Solid Waste disposal on holiday weekends when Collection service might otherwise be postponed. In the Downtown Area (see Exhibit 9), Contractor shall continue Collection despite holidays, shall provide extra pickups as needed to minimize overflowing Containers, and maintain cleanliness in and around Bin enclosures and Solid Waste Containers. Contractor shall proactively work with Customers to plan for surges in Solid Waste generation. Contractor shall work with Customers to minimize overflow from Bins and into enclosures on an ongoing basis. 4.1.14 Shared Solid Waste Downtown Compactor Facility and Porter Service Customers in the Downtown Compactor Facility Service Area share Solid Waste Container(s) due to space constraints on using individual Collection Containers and must utilize the Compactor Facility for solid waste collection. 372 May 24, 2013 -32- City of Hermosa Beach Contractor shall monitor and control access to the shared solid waste facility. Additional collection containers, such as for grease collection, may be housed in this Facility, and access will be provided to Customers paying for the shared Collection service and to third parties hired to provide collection of grease or other materials from the enclosure. Contractor is responsible for enclosure cleanliness and shall steam clean this enclosure, in accordance with all National Pollution Discharge Elimination System (NPDES) regulations, reclaiming and properly removing for disposal water, a minimum of three times per week, or more frequently if needed to control cleanliness of enclosure. Contractor is responsible for monitoring and maintaining cleanliness of adjacent areas used to place other Solid Waste Containers, including Recycling Bins. A. Shared Solid Waste Containers in Downtown Compactor Facility Service Area Prior to Construction of Downtown Compactor Facility a) Prior to construction of new Downtown Compactor Facility, businesses in the Downtown Compactor Facility Service Area utilizing the shared solid waste containers in the existing non-automated enclosure shall continue bringing solid waste to the enclosure for Collection. Rates shall be charged based on generation level data from previous hauler. b) When construction on new Downtown Compactor Facility begins, Contractor shall also provide a secured temporary staging area that will serve to provide trash collection services during the construction process. The Contractor shall have a designated representative to coordinate disposal operations during the construction process. c) Access and Cleaning – Contractor shall monitor and control access to the shared solid waste facility. Additional collection containers, such as for grease collection, may be housed in this Facility, and access will be provided to Customers paying for the shared Collection service and to third parties hired to provide collection of grease or other materials from the enclosure. Contractor is responsible for enclosure cleanliness and shall steam clean this enclosure, in accordance with all National Pollution Discharge Elimination System (NPDES) regulations, reclaiming and properly removing for disposal water, a minimum of three times per week, or more frequently if needed to control cleanliness of enclosure. Contractor is responsible for monitoring and maintaining cleanliness of adjacent areas used to place other Solid Waste Containers, including Recycling Bins. 373 May 24, 2013 -33- City of Hermosa Beach B. Shared Solid Waste Containers in Downtown Compactor Facility Service Area After Construction of Downtown Compactor Facility a) Porter Service. Porter service is the provision of Contractor employee(s) to operate and maintain the Downtown Compactor Facility. Contractor may assess fees for porter service in accordance with the approved rate schedule. This fee shall represent full compensation for the porter service. Contractor shall be responsible for dividing the porter service fee among Customers based on level of generation, which will, at a minimum, be done at the start of service, each time there is a change in the amount of the fee, and if requested by City. Contractor shall maintain records of level of generation and Collection of Solid Waste at participating businesses, and shall update the records, at a minimum, once a year, and each time the City requests a report or there is a change in tenants that may significantly alter the distribution of Collection efforts. City may request an increase or decrease in the customer base receiving porter service, may add additional enclosures, or make other service adjustments; if such service changes make a significant impact in the cost of providing service, the porter service fee shall be adjusted to reflect the actual change in costs. b) Cost Allocation. Only costs included on the approved rate schedule and as provided in this section, and the new Downtown Compactor Facility construction cost and utilities as described in Section 4.12, may be charged and allocated by Contractor. Contractor shall determine shared Container Collection costs in accordance with the approved rate schedule and shall allocate the cost to participating Customers based upon usage. This allocated Solid Waste Collection fee shall be identified on the Customer’s invoice separately from the allocated porter service fee. In addition to rates for Collection services under the approved rate schedule, businesses in the Downtown Compactor Facility Service Area utilizing the Downtown Compactor Facility described in Section 4.12 may also be charged for utility services and lease of the compactor. Utility services for said Facility operation may be charged, including Gas, Water, and Electric service. Gas may be employed for the provision of hot water service. Electrical service will be required for lighting, and operation of compactors, roll- 374 May 24, 2013 -34- City of Hermosa Beach up doors, and miscellaneous equipment. Water will be required for operation and cleaning of facilities. The cost of leasing the compactor may be charged to participating businesses provided City provides written approval of the amount based on documentation of cost of the lease. The Facility will also include a confined area for the installation of an above- ground grease receptacle, providing a means for disposal of used restaurant grease. While Contractor does not provide the grease collection service, Contractor shall keep the grease collection area clean. Contractor shall also be responsible for operation and maintenance of facility’s grease clarifier. These Downtown Compactor Facility costs shall be proportionally allocated amongst the participants in the same manner that the other Facility costs are proportioned among the participating businesses (see above), and shall be charged on the businesses’ monthly billing statements. c) Dispute over Allocation of Fees and Costs. If Customer and Contractor dispute the allocation of porter fees or shared Solid Waste Collection costs, Contractor shall provide Solid Waste Collection reports to the City Manager identifying the estimated quantity of Solid Waste Collected by Customer versus total Solid Waste Collected, based upon capacity, and the City Manager’s determination as to the allocation shall be final. Reallocation of these costs among Customers shall be done only upon request by, or with the approval of, the City. Reasons for reallocation may include a significant shift in the waste stream due to a change in mix of Customers or vacancy. d) Dispute over Participation in Shared Downtown Compactor Facility Collection and Porter Service. If there is a dispute between a Customer and Contractor as to whether a business is to participate in porter service and in sharing Collection services and service costs, or if the City Manager otherwise determines a change is warranted for health and safety or other reasons, City Manager shall make the final determination as to participation. 375 May 24, 2013 -35- City of Hermosa Beach 4.1.15 On-Call Bulky Item Pickup Contractor shall provide Bulky Item pickup service to all Residential Customers (including Cart, Can and Bin Customers) on a regularly scheduled collection day. While Contractor may request Customers to call in Bulky Item pickups, Contractor shall ensure all items placed for Collection are picked up whether or not call has been placed. If it is unclear to the driver whether an item was intended for Collection, Contractor may contact Customer for confirmation prior to collecting the item(s). If Contractor is unable to contact the Customer or unable to receive conformation prior to Collecting the item(s), Contractor will assign the Bulky Item(s) to the physical address in which the item(s) was placed. If there is a dispute between Contractor and Customer as to whether a Bulky Item Collection is to be assigned to a particular Customer, City will make the final determination. Each Residential Customer shall be entitled to two (2) Bulky Item pickups per dwelling unit per calendar year at no additional charge. Customers may put out up to three (3) cubic yards at each pickup. Contractor shall Collect all Bulky Items as defined in Section 1.6 including items referred to as Electronic Waste. The following provisions shall apply to this program: • No single item that cannot be handled by two (2) workers will be accepted. • The following items will not be picked up: Hazardous Substances, Hazardous Waste, including waste oil or anti-freeze. (For the purposes of this section, universal wastes such as fluorescent bulbs, household batteries, and televisions, monitors and other items referred to as Electronic Waste are not considered hazardous and will be Collected by and disposed of in accordance with this section as well as Sections 4.1.16 and 4.1.17 by Contractor.) Residential Customers that exceed the number of free Bulky Item pickups, and all Commercial Customers, may receive Bulky Item Collection under the same terms for a fee, in accordance with the approved rate schedule in Exhibit 2. 376 May 24, 2013 -36- City of Hermosa Beach 4.1.16 Bulky Item Diversion Bulky Items Collected by Contractor in accordance with Section 4.1.15, 4.1.17 and 4.5.6, or otherwise Collected under this Agreement, may not be landfilled or disposed of until the following hierarchy of Diversion efforts has been followed by Contractor: 1) Reuse as is; 2) Disassemble for reuse or Recycling; 3) Recycle; 4) Dispose. This hierarchy is intended to preclude the use of front or rear loading packer vehicles for Bulky Items, unless the compaction mechanism is not used to compact the Bulky Items, unless such items have been designated for Disposal. 4.1.17 Disposal of Electronic and Other Special Wastes Contractor shall divert waste requiring special handling, such as Electronic Waste Collected in accordance with Sections 4.1.15, 4.1.16 or 4.5.6, or by other means under this Agreement, by taking these goods to a properly permitted Facility, and not by landfilling. Contractor may encourage Customers through public education materials to bring small items requiring special handling, such as fluorescent bulbs or batteries, to a local HHW drop-off center, but will properly process such material received through the provision of services under this Agreement at no additional charge. 4.1.18 Optional On-Call Household Hazardous Waste Collection and Disposal Contractor shall implement a door-to-door HHW Collection program if requested by City within ninety (90) days of such a request. Contractor shall receive a rate increase, as specified in the approved rate schedule, of $0.45 per dwelling unit per month, applicable when the service becomes available to Residential Customers. Prior to program implementation, this $0.45 shall be recalculated to include the annual percentage rate increases approved by the City for the monthly Residential Cart Collection rate. For billing purposes, the City may direct Contractor to either add this HHW charge in with the monthly Residential Collection rate, or itemize the fee as a separate cost item on the invoice. 377 May 24, 2013 -37- City of Hermosa Beach If the City chooses to implement the door-to-door HHW Collection, City and Contractor shall meet and confer prior to implementation of this program to determine the frequency, or to establish the pre-scheduled days for door-to-door HHW collection. These pre-scheduled days can be set at up to twice per month, based on the needs of the City. Residents will call Contractor to be placed on the route for the next pre-scheduled HHW Collection day. During this call, the residents shall receive instructions as to where, when and how to place the items for Collection. Items to be Collected shall include, at a minimum: Sharps, non-controlled pharmaceuticals, paint, oil, chlorine, pool acid, pesticides, household batteries, fluorescent bulbs, and other household chemicals. If the City elects to provide City-wide drop-off events instead of individual door-to- door Collection of HHW, in addition to provisions allowing e-waste to be included as part of Bulky Item pick-up, for no more than the same cost per dwelling unit per month, Contractor shall promote and conduct two City-wide HHW drop-off events per year. Contractor shall be responsible for securing an in-City location and for all associated event costs. Contractor may schedule the drop-off events in conjunction with the Shred Day events described in Section 4.1.20. These events would be separate from, and in addition to, any events conducted through Los Angeles County programs. Subject to City approval, Contractor may use a third-party vendor for such services, provided Contractor remains fully responsible for services provided by, and any payment to, such party. Contractor is responsible for ensuring that the vendor providing HHW Collection and proper disposal services under this section maintains all of the proper permits and insurance to provide such service. 4.1.19 Restaurant Food Waste Program Option City may require Contractor to conduct a Restaurant Food Waste diversion pilot program upon request, at no additional charge. 4.1.20 Document Shredding Contractor will conduct two (2) shredding events per calendar year, on City-approved days, at a City-provided location at no additional cost. City will inform Contractor of the time at which each event will begin, and each event shall last for eight (8) hours. Contractor shall be on-site for a sufficient time before and after the event to set up and clean up. Contractor shall provide staff and equipment to Collect all paper delivered by 378 May 24, 2013 -38- City of Hermosa Beach anyone that resides or operates a business in the City. Contractor will shred paper in manner that guarantees confidentiality and destruction of the documents, and diverts the shredded material from landfilling. Contractor will publicize the event through its mailers, contacting local business groups and placing local ads. Contractor shall provide monthly document shredding services for City facilities. Multiple sites may require servicing each month and Contractor is responsible for visiting each City facility in need of the service. 4.2 Recycling 4.2.1 Residential Cart/Can Recycling Collection Contractor shall provide all Customers receiving Cart/Can Refuse Collection with a 96, 64 or 32-gallon Cart for Collection of Recyclable Materials (“Recycling Cart(s)”), and shall Collect all Recyclable Materials placed therein for Collection not less than once per week. Contractor shall Collect Recyclable Materials from each Customer on the same day as Customers’ Refuse Cart/Can is Collected. Residential Customers who cannot accommodate Carts due to space constraints and/or conditions otherwise preventing the use of Carts shall continue to receive service using Contractor-provided Blue Cans (“Recycling Cans”). Recycling collection will be provided at no charge to the Residential Cart/Can Customers. Customers that regularly fill their Recycling Cart(s)/Can(s) may request additional Recycling Cart(s)/Can(s) at no additional charge. Contractor shall have a Recycling program whereby it, at a minimum, Collects all materials that can be recovered at the local processing Facility used by Contractor. Contractor will update public education materials accordingly as new items are added to those recovered by the Facility. 4.2.2 Commercial Recyclables Collection 4.2.2.1 Source Separated Recycling Contractor shall provide Recycling services to Multi-Family Bin and Commercial Customers at rates no higher than 50% of comparable Refuse Collection rates for the same size Container and Collection frequency, in accordance with the approved rate schedule. Commercial Recyclables in Carts shall be collected on the Residential 379 May 24, 2013 -39- City of Hermosa Beach Recyclables Cart route, and Recyclables in Bins may be Collected with mixed waste from Refuse Bins provided all such material is processed to recover Recyclables. As Commercial Recyclables tonnage will be co-Collected with other waste streams, Contractor shall provide an allocation of such tonnage on its tonnage reports, and provide allocation support upon request. Contractor shall assist the City in meeting mandatory Commercial Recycling program requirements at no additional charge, including providing reporting that may be required. Contractor shall contact all Bin and permanent Roll-off Box Customers within the first twelve (12) months of the Agreement in an effort to establish Recycling programs. Contractor shall provide a reporting of these contacts, including whether a Recycling program was implemented as a result, and/or if the Customer indicated it already has a Recycling program in place, either through Contractor or a third party, and any other information that may assist the City in meeting the State’s mandatory Commercial Recycling program requirements. Upon request, Contractor shall provide City with a list of Residential Bin Customers, and all Customers generating the State’s threshold for participation in mandatory Commercial Recycling (currently four-cubic-yards or more of Solid Waste generated per week), that do not subscribe to a Recycling program offered by Contractor or, if known, a third-party. 4.2.2.2 Downtown Compactor Facility Solid Waste Processing Contractor shall process all Solid Waste Collected from the Downtown Compactor Facility, removing non-compostables and composting the remainder of the Solid Waste for diversion credit. 4.2.2.3 Bin and Roll-Off Waste Processing Contractor shall send to a MRF for processing all Solid Waste Collected in Bins and Roll-Off Boxes not covered under Section 4.2.2.2 to recover Recyclables prior to landfilling. 4.2.3 Warning Notice Contractor shall place a red tag or other warning notice approved by the City on all Refuse, Recyclable Material or Green Waste loads that are contaminated, indicating to 380 May 24, 2013 -40- City of Hermosa Beach the Customer why the load was not Collected and, if applicable, diverted, or if the Recycling or Green Waste Container was sufficiently contaminated that it had to be Collected as Refuse, and providing Contractor’s phone number. For Customers with off-site management such as small apartment buildings, Contractor shall also mail a copy of the warning to the Customer’s Billing address. Contractor shall notify City on a monthly basis of any warning notices issued pursuant to this section, and shall provide copies of such warnings to City upon request. With prior written City authorization, Contractor may remove Recycling and Green Waste Containers from habitual contaminators that have received a total of three (3) warnings on a Container in any six- month period. Recycling and Green Waste Containers will be returned after six (6) months, or upon direction of the City, or if there is a change of occupancy. Contractor will visually inspect the contents of Residential Refuse Carts and, if significant Recyclable Materials are found, leave a notice educating Customer to better separate Recyclable Materials from Refuse. 4.2.4 Marketing and Sale of Recyclable Materials Contractor shall be responsible for marketing and sale of all Recyclable Materials Collected pursuant to this Agreement. Contractor may retain revenue from the sale of Recyclable Materials, and shall report the amount of such revenues to City upon request. 4.2.5 Minimum Recycling Requirements Contractor shall divert from landfilling a minimum of fifty percent (50%) of all Solid Waste it Collects under this Agreement. Recycling of materials not Collected by the Contractor is not to be counted towards meeting this requirement. For the purposes of this section, diversion includes Recycling, Transformation and other forms of converting Solid Waste into energy to the extent that such diversion is accepted by the State toward meeting the City’s diversion goal under AB 939. 4.2.6 Construction and Demolition Debris Diversion Contractor shall divert a minimum of seventy percent (70%) of all Construction and Demolition Debris Collected. Contractor will bring all loads of mixed Construction and Demolition Debris to a construction and demolition debris processing facility for separation and recovery of this material. 381 May 24, 2013 -41- City of Hermosa Beach Contractor shall provide a dedicated customer service representative focused on providing support for construction and demolition projects who will work with each Customer to provide the correct services and service levels that ensure the highest feasible diversion at the lowest cost to the Customer. 4.2.7 Battery Recycling Drop-Off Contractor shall provide containers at a minimum of four locations, such as City Hall, as identified by City for the drop-off of household batteries by residents. Contractor shall Collect batteries at least monthly, or more frequently if needed, and provide for proper disposal. This program shall be provided at no additional charge to City, rate payers or participants. 4.3 Green Waste Program 4.3.1 Single Family Green Waste Collection Contractor shall provide all Customers receiving Cart Refuse Collection who opt to receive Green Waste service with 96, 64 or 32-gallon Cart(s), as requested, for Collection of Green Waste (“Green Waste Cart(s)”). Green Waste service shall only be provided using Carts, not Cans. See Section 4.4.1.1 for Cart distribution. Customers shall be charged for Green Waste Cart Collection based upon the number and size of Green Waste Carts requested in accordance with the approved rate schedule. Contractor shall Collect all Green Waste placed in Green Waste Carts, as well as all Green Waste bundled as set forth below, and put out for Collection by Customers paying for service not less than once per week. Contractor shall, at a minimum, Collect and divert the types of Green Waste defined in Section 1.29. Upon closure of the Puente Hills Landfill, Athens will accept and divert from landfilling Food Waste placed in Green Waste Carts, along with Green Waste, with no increase in rates for the addition of Food Waste to the Green Waste program other than the adjustment to Green Waste Cart rates permitted per Section 6.4.4 for the change in Green Waste facilities (from Puente Hills Landfill which could not accept Food Waste in Green Waste to a Facility that does). 382 May 24, 2013 -42- City of Hermosa Beach As soon as, and for as long as, Food Waste is permitted for Collection in the Residential Green Waste Cart, the City’s public schools administered by the Hermosa Beach City School District shall have the option of participating in this program at no cost to the City or schools. Contractor shall provide as many Carts to the schools as necessary to Collect their Food Waste, and such Carts shall be Collected on the Residential Green Waste Cart route. Contractor shall only be obligated to Collect Green Waste set out for Collection in bundles if bundles are each a maximum of four (4) feet long and eighteen (18) inches in diameter. Green Waste will be Collected from all subscribing Customers on the same weekday, initially determined to be Tuesday; the selected weekday shall be the day on which Customers with the greatest potential generation of Green Waste have their Refuse and Recyclables Collected, and any change in this day will be mutually agreed to in writing by the City and Contractor. At City’s sole discretion, Refuse Cart Customers with Refuse Collection on other weekdays may participate in the Green Waste program at the same rates, placing their Green Waste Carts out for Collection on Green Waste Collection day, or may not be provided the opportunity to opt-in in order to avoid Collection trucks on those Customers’ streets on a second Collection day each week. 4.3.2 Holiday Tree Collection Program Contractor shall operate an annual holiday tree Collection program, Collecting all holiday trees placed out for Collection on Collection day by Residential Cart/Can or Bin Customers for a minimum of three weeks following December 25. After this period, trees will be Collected as Bulky Items under Section 1.6. Trees up to six (6) feet in length will be Collected and diverted without Customers needing to cut them. Contractor may request that Customers with larger trees cut the trees to pieces no longer than six (6) feet. In addition to the above curbside program, Contractor shall provide three (3) roll-off boxes for tree drop-off at City-specified locations during the three (3) weeks following December 25. Contractor will divert all holiday trees from landfilling, with the exception of trees that cannot be diverted due to flocking, tinsel or ornaments. 383 May 24, 2013 -43- City of Hermosa Beach 4.3.3 End Uses for Green Waste Contractor shall divert Green Waste materials Collected through weekly Cart and bundle Collection, and holiday tree Collection from Disposal. Contractor must provide end uses for Green Waste that maximize Diversion credits for City according to regulations established by CalRecycle. Green Waste may be used as alternative daily cover at landfills, or “ADC,” only to the extent that the City will get full Diversion credit for its use. Contractor is responsible for monitoring how the Green Waste will be diverted at selected facilities and for selecting alternative facilities if necessary to ensure full Diversion credit. Failure to do so places the Contractor in default. City has the option, but not obligation, to direct Contractor where to deliver the material. 4.3.4 Backyard Compost Program Contractor shall offer composting bins and worm bins to each Residential Customer that requests one, and bill the Customer a co-pay in an amount to be determined by City. Contractor shall obtain written City approval prior to ordering bins, and City may select the bins. The difference between the amount billed to the Customer and the actual cost of the bin to the Contractor (excluding delivery or other associated costs) shall be reimbursed to Contractor by the City. City may inform Contractor as to an annual cap or overall cap on the number to be distributed. At no additional cost, Contractor shall offer composting classes at least twice per year, and will create and make available a brochure that educates Customers on composting. If requested by the City, Contractors will include presentations by nutritional experts and other guest speakers at the compost classes. 4.3.5 Free Compost Give-A-Way Events Contractor shall conduct a compost give-a-way event twice each calendar year at no additional charge. Dates must be approved in advance by the City, which may require Contractor to select alternative dates. Location to be arranged by Contractor, subject to City approval. Contractor shall promote events through its mailings, website and other outlets. Contractor shall provide, at no cost to City, ratepayers or participa nts, two 40- cubic yard containers of compost to the event. Contractor shall provide sufficient staff to operate the event in an orderly manner and to assist residents in transferring the compost into resident-provided containers. 384 May 24, 2013 -44- City of Hermosa Beach 4.3.6 Free City Compost Contractor shall provide 100 cubic yards of compost per year for City usage at no cost, and offer the City additional compost above this limit at Contractor’s cost. Contractor shall deliver compost at locations and times coordinated with City; deliveries may be at multiple locations at different times. 4.3.7 Residential Food Waste Pilot Program Contractor shall provide a three-month pilot program including Residential Green Waste Program Customers, but not less than ten percent (10%) of the City’s Residential Refuse Cart Collection Customers, for the Collection and Diversion of Food Waste. The program shall consist of educating participating residents to place Food Waste in their Green Waste Cart(s) for Collection on their regularly scheduled Green Waste Cart Collection day. Contractor shall collect tonnage data from partcipants before and during the pilot program period for comparison, and shall survey participants for feedback on program. This pilot program shall be conducted at no additional cost to City or ratepayers, and will be conducted at a time requested by City. (See Section 4.3.1 for converstion to City-wide Residential Food Waste Diversion program at closure of the Puente Hills Landfill.) The public schools in the City of Hermosa Beach shall be provided the option of participating in this, or any, Food Waste pilot program at no cost to the City or schools. The schools shall be provided sufficient Carts to accommodate the Food Waste generated by the schools. The schools need not add Green Waste to the Carts. 4.4 Container Selection, Distribution and Exchanges 4.4.1 Containers 4.4.1.1 Residential Container Distribution All Carts and Contractor-provided Cans shall be new at the start of service. Contractor shall mail a return postage paid postcard and information describing the new rate structure and Container options to all Residential Customers. Contractor must obtain City approval of post card and information to be sent prior to distribution. Postcard will provide Customers with an opportunity to select the size and number of Refuse Containers, and Recycling and Green Waste Carts to be delivered. 385 May 24, 2013 -45- City of Hermosa Beach If a selection is not made, Customers will receive one 64-gallon Refuse Cart and one 64- gallon Recycling Cart. No Green Waste Carts will be distributed to Customers who did not request one. After initial Container distribution, Customers may request one (1) Container exchange at no charge within the six (6) months of the distribution, and once per year thereafter. After one (1) exchange per year at no charge, Customers may request Container exchanges in accordance with the approved rate schedule. One exchange includes all Container adjustments requested at one time, and multiple Containers and types (Refuse, Recycling, Green Waste as applicable) may be exchanged. In areas where Contractor cannot provide automated service due to right-of-way constraints (see Exhibit 10) and therefore Refuse Carts are not practical, Containers shall be provided by Contractor for Refuse and Recycling. In addition, upon request and/or when a Customer expresses concern that he/she cannot accommodate anticipated Carts, Contractor will visit and work with Customers at their residences to demonstrate how the Carts can be stored and wheeled to the point of Collection where operationally feasible. Should Customers not be able to accommodate Carts to be distributed, Contractor shall work with the Customer to provide a Container(s) to meet any legitimate space constraints or any difficulties in moving Containers from storage to Collection point. Note that a rate for manual service is included in the rate schedule, to be applied when Cart service is not feasible. (See Section 4.1.2 – if Contractor and Customer dispute Cart versus manual/barrel service, City shall make the final determination.) 4.4.1.2 Removal of Existing Containers Upon and after distributing new Refuse, Recycling and Green Waste Carts, Contractor shall remove, and Recycle to the extent possible before Disposing, all Customer- provided Cans, if Customer does not intend to retain the Cans. Contractor will also remove prior hauler’s Containers if prior hauler does not remove them. Contractor shall establish and advertise a system whereby Customers can indicate what Cans should and should not be removed. Prior to advertising removal of Containers, Contractor shall confer with prior hauler regarding coordination of removal and disposal of prior haulers’ Containers. If agreement cannot be reached, the City shall make the final decision. Contractor is responsible for all costs associated with Container collection and 386 May 24, 2013 -46- City of Hermosa Beach Disposal or Recycling. Contractor may retain any scrap value received from the Recycling of collected Containers. 4.4.1.3 Container Design Requirements The Carts shall be manufactured by injection or rotational molding and meet the Cart design and performance requirements as specified below. Cans shall comply with this section and the design and performance requirements as specified below as applicable. All Containers selected shall be subject to City approval. 4.4.1.4 Capacity Contractor shall provide Carts in 96-, 64- and 32-gallon sizes for Refuse, Recycling, and Green Waste Carts, 20-gallon for Residential Refuse, and 18-gallon for Commercial Recycling. Section references to Cart sizes of 18, 20, 32, 64 and 96-gallons are approximate. Acknowledging the different sizes provided by the various Cart manufacturers, the Carts shall be uniform in appearance and must conform to the following ranges in size: 20 to 29-gallons (18 to 29-gallon for Commercial Recycling), 30 to 35-gallons, 60 to 70-gallons, and 90 to 101-gallons. 4.4.1.5 Container Handles The Cart handles and handle mounts may be an integrally molded part of the Cart body or molded as part of the lid. The Cart handles will provide comfortable gripping area for pulling or pushing the Cart or lifting the lid. The preceding shall apply to Cans to the extent applicable. Pinch points are unacceptable. 4.4.1.6 Container Lid Each Container shall be provided with a lid that continuously overlaps and comes in contact with the Container body or otherwise causes an interface with the Container body that simultaneously: 387 May 24, 2013 -47- City of Hermosa Beach • Prevents the intrusion of rainwater, rodents, birds, and flies; • Prevents the emission of odors; • Enables the free and complete flow of material from the Container during the dump cycle without interference with the material already deposited in the truck body or the truck body itself and its lifting mechanism; • Permits users of the Container to conveniently and easily open and shut the lid throughout the serviceable life of the Container; • The lid (and body) must be of such design and weight that would prevent an empty Container from tilting backward when flipping the lid open; and, • The lid shall be hinged to the Cart body in such a manner so as to enable the lid to be fully opened, free of tension, to a position whereby it may rest against the backside of the Container body. 4.4.1.7 Container Colors The Refuse, Recycling and Green Waste Containers will be differentiated by color. The colors shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation. Color must be uniform within each Container, including replacement Containers distributed throughout the Term. Refuse Carts/Cans will be black. Recycling Containers will be blue. Green Waste Carts will be green. 4.4.1.8 Container Markings Containers shall be hot stamped. All markings must be approved by City prior to ordering. Graphics indicating which materials may and may not be placed in each Container and instructions on how to properly dispose of HHW, shall be included on the Container lid. Information shall be bilingual in English and Spanish. Labels shall include Contractor’s name and phone number, and the phone number for the proper disposal of HHW and Bulky Items. Containers shall provide street addresses as required by the Hermosa Beach Municipal Code to ensure correct billing. 388 May 24, 2013 -48- City of Hermosa Beach 4.4.2 Container Performance Requirements All Carts shall be designed and manufactured to meet the minimum performance requirements described below, as applicable. 4.4.2.1 Cart Load Capacity Depending on the capacity, Containers shall have a minimum load capacity as noted below without Container distortion, damage, or reduction in maneuverability or any other functions as required herein. Size (Gallons) Minimum Load Capacity (LBS) 90-101 200 60-70 130 30-35 70 18 or 20–29 70 4.4.2.2 Container Durability Containers shall remain durable, and at a minimum, shall meet the following durability requirements to satisfy their intended use and performance, for the term of this Agreement: • Maintain their original shape and appearance; • Be resistant to kicks and blows; • Require no routine maintenance and essentially be maintenance free; • Not warp, crack, rust, discolor, or otherwise deteriorate over time in a manner that will interfere with the intended use; • Resist degradation from ultraviolet radiation; • Be incapable of penetration by biting or clawing of household pets (i.e., dogs and cats); 389 May 24, 2013 -49- City of Hermosa Beach • The bottoms of Containers’ bodies must remain impervious to any damage that would interfere with the Containers intended use after repeated contact with gravel, concrete, asphalt or any other rough and abrasive surface; • All wheel and axle assemblies are to provide continuous maneuverability and mobility as originally designed and intended; and, • Resist degradation by other airborne gases or particulate matter currently present in the ambient air of the City. 4.4.2.3 Chemical Resistant Containers shall resist damage from common household or Residential products and chemicals. Containers, also, shall resist damage from human and animal urine and feces. 4.4.2.4 Stability and Maneuverability Containers shall be stable and self-balancing in the upright position, when either empty or loaded to the maximum design capacity with an evenly distributed load, and with the lid in either a closed or open position. Containers shall be capable of maintaining the upright position in sustained or gusting winds of up to twenty-five (25) miles per hour as applied from any direction. Carts shall be capable of being easily moved and maneuvered, with an evenly distributed load equal in weight to its maximum design capacity on a level, sloped or stepped surface. 4.4.2.5 Lid Performance Cart lid assemblies shall meet the following minimum requirements: • Prevent damage to the Cart body, the lid itself or any component parts through repeated opening and closing of the lid by residents or in the dumping process as intended; • Remain closed in winds up to twenty-five (25) miles per hour from any direction. All lid hinges must remain fully functional and continually hold the lid in the 390 May 24, 2013 -50- City of Hermosa Beach original designed and intended positions when either opened or closed or any position between the two extremes; and, • Lid shall be designed and constructed such that it prevents physical injury to the user while opening and closing the Cart. Can lids shall maintain their shape and functionality, and be designed to remain in place, remain closed in winds up to twenty-five (25) miles per hour from any direction, and through repeated opening and closing of the lid by residents or in the dumping process as intended. 4.4.2.6 Reparability Minor cracks, holes, and other damages to hinges, wheels, axle, hardware, and other component parts shall be readily repairable by Contractor personnel. All repairs must restore the Container to its full functionality to meet the design and performance requirements as set for herein. 4.4.3 Container Ownership and Maintenance Responsibilities All Containers that are distributed by Contractor under this Agreement remain the property of the Contractor at the end of the Agreement term. The Contractor shall be responsible for Container repair and maintenance, and replacing lost, stolen or damaged Container within three (3) business days at no additional charge to the Customer or to the City. Graffiti shall be removed or the Container replaced within twenty-four (24) hours of request by City or Customers. However, the Contractor may charge, subject to City approval, the Customer for repairing or replacing a Container if the damage was due to the Customer’s willful negligence or abuse. In no event shall this charge be greater than the Contractor’s actual cost for replacement parts or the new Container. 4.4.4 Bins Contractor shall provide Customers with Bins for Collection of Solid Waste. Customers may obtain Bin compactors and Roll-off compactors from either Contractor or a third party; the leasing of such equipment is outside the scope of this Agreement. Contractor shall maintain its Bins in a clean, sound condition free from putrescible residue. Bins shall be constructed of heavy metal, or other suitable, durable material, and shall be watertight and well painted. Wheels, forklift slots, and other appurtenances, which 391 May 24, 2013 -51- City of Hermosa Beach were designed for movement, loading, or unloading of the Bin, shall be maintained in good repair. Contractor shall periodically inspect, and if necessary or requested by the Customer, clean or replace all Containers once per year at no charge. Contractor shall perform cleaning or replacement of Bins more frequently if necessary, in accordance with the approved rate schedule, to prevent a nuisance caused by odors or vector harborage and to check for leaks and damage. Contractor shall replace any leaking or damaged bins or lids within five (5) working days of observed damage or by request by the tenant or City at no charge. If free liquids are observed in bins, Contractor shall promptly notify Customer that free liquids are not permitted, and notify City on second such observation. Customer may request additional cleanings in accordance with the approved rate schedule. Contractor shall remove graffiti at no additional charge from any Bin within twenty-four (24) hours of request by City or Customers. All Bins provided by Contractor shall remain the property of Contractor. Each Bin placed in the City by the Contractor shall have the name and phone number of the Contractor in letters not less than three (3) inches high on the exterior of the Bin so as to be visible when the Bin is placed for use. Contractor shall repaint Bins upon City request. To limit the possibility of leakage, Contractor shall provide Bins with plastic liners or plastic Bins at no additional cost to Customers whose Solid Waste may include liquid, organic, or other wet waste. Such Bins shall be supplied upon request; Contractor reserves the right to first make a site visit to confirm the nature of the waste generated, with the City making the final determination as to the necessity of a plastic Bin or Bin liner. Following Collection, Bins shall be returned to enclosures with lids closed. 4.4.5 Roll-off Boxes The Contractor shall provide clean Roll-off Boxes, free from graffiti, equipped with reflectors, and shall have the name and phone number of Contractor in letters not less than three (3) inches high on the exterior of the Roll-off Box so as to be visible when the Container is placed for use. Contractor shall properly cover all open Roll-off Boxes 392 May 24, 2013 -52- City of Hermosa Beach during transport as required by the State Vehicle Code. Contractor shall replace any leaking or damaged Roll-Off Boxes within five (5) working days of observed damage or by request of the tenant or City at no charge. If free liquids are observed in Roll-off Boxes, Contractor shall promptly notify Customer that free liquids are not permitted, and notify City on second such observation. Graffiti shall be removed within twenty-four (24) hours of request by City or Customers. All Roll-Off Boxes provided by Contractor shall remain the property of Contractor. 4.5 City Services 4.5.1 City Facilities Collection Contractor shall Collect and dispose of all Refuse, Recyclable and Green Waste material put in Containers for Collection at Premises owned and/or operated by the City now and in the future at no charge, including no charge for locking Bins, scout service, push- out service or other special services. Contractor shall ensure a sufficient number of Solid Waste Containers are provided at all City facility locations to meet Collection needs. Service levels, facility locations, and number of facilities serviced may increase during the Term of this Agreement without any additional compensation paid to the Contractor. Such Premises include, but are not limited to, City Hall, City offices, parks, community facilities, City yard, public litter and Recycling Containers (see Section 4.5.2), and street maintenance operations. Collections shall be scheduled at a time mutually agreed upon by Contractor and City. Construction and demolition debris collected from City facilities and projects must be processed in accordance with Section 4.2.6 for maximum diversion credit at no additional charge. Notwithstanding, Collection of refuse and debris by reason of floods, earthquakes, other natural disasters, war, civil insurrection, riots, acts of any government (including judicial action), and other similar catastrophic events shall be charged at the contractual rates or rates otherwise negotiated with the City at the time. Street sweepings, as placed in a Container at the City yard by the street sweeping company, shall be collected and Disposed by the Contractor at no additional charge. 393 May 24, 2013 -53- City of Hermosa Beach Contractor shall provide in-office Recycling Containers at all City facilities, including but not limited to the fire station and community center, upon request, including desk- side Recycling Containers and larger cans for Collection in common areas. Contractor shall visit City facilities prior to the start of service under this Agreement and meet with City staff to fully understand City facilities service needs and to recommend and implement improvements, if any. 4.5.2 City Litter Containers Prior Consolidated Disposal Service-Serviced City Litter Containers Contractor shall service all City Refuse and Recycling public litter Containers identified in Exhibit 4 as Recycling and Refuse Containers previously managed by Consolidated Disposal Service at the following minimum frequencies: a) At Least Once Per Day - Collect all Refuse Containers, between Memorial Day weekend and Labor Day, located along the beach, along Pier Avenue west of Ardmore, and in the Downtown Pier area between 10th Street and 15th Street. b) At Least Once Per Day – Collect all Recycling Containers, between Memorial Day weekend and Labor Day, located along the beach, along Pier Avenue west of Ardmore, and in the Downtown Pier area between 10th Street and 15th Street. c) At Least Once Per Week – Above referenced Containers from after Labor Day until immediately before Memorial Day weekend, and all other Refuse and Recycling Containers. d) At Least Twice Per Week – Collect all Containers on Hermosa Avenue, Herondo Street, Greenwich Village, Longfellow Avenue and Aviation Boulevard. e) At Least Once Per Week – Collect all Containers on Prospect Avenue and Pacific Coast Highway. f) At Least Three Times Per Week – Collect all Recycle Containers at all parks and Community Center. g) Holiday Service – Contractor’s servicing of all City Litter Containers includes servicing on holidays. 394 May 24, 2013 -54- City of Hermosa Beach Athens/Contractor and True Green-Serviced Litter Containers Contractor shall assume Collection responsibility for all Refuse and Recycling public litter Containers identified in Exhibit 4 as serviced by True Green and by Contractor under a separate contract (see Exhibit 4 for identification of specific Containers). These Containers shall be Collected at the following minimum frequencies: a) At Least Seven Days per Week – Containers in the Downtown Area and on the Pier currently serviced by Contractor. b) At Least Three Days per Week - All other City litter Containers previously serviced by True Green in the Greenbelt, Parks and Community Center. City will provide Containers. Contractor shall provide all liners necessary to provide Collection service. Contractor is responsible for additional Collections as necessary to prevent Container overflow at no additional charge, including more frequent Collections on holiday weekends. City may add additional Recycling Container Collections at no additional charge; a Recycling Container may be paired with each litter Container in distribution. City may increase the number of Refuse Containers to be Collected by Contractor up to 10% above the number included in Exhibit 4 at no additional charge. Contractor and City shall negotiate in good faith for the servicing of additional Containers above this limit, in the future at the request of City. City reserves the right to have a third party service additional Containers. Solid Waste that may be Collected by third-parties from City public Refuse and Recycling Containers may be delivered to the City facilities for processing and Disposal by Contractor at no additional charge as part of City facilities Collection. 4.5.3 School Facilities Collection Contractor shall Collect and dispose of all Refuse, Recyclable and Green Waste material put in Containers for Collection at all public school facilities at no charge, including no charge for locking Bins, scout service, push-out service or other special services. Service levels and number of facilities serviced may increase during the Term of this Agreement without any additional compensation paid to the Contractor. Collections shall be scheduled at a time mutually agreed upon by Contractor and City. 395 May 24, 2013 -55- City of Hermosa Beach 4.5.4 Special Events Contractor shall provide litter/Recycling boxes and liners for Refuse and Recyclables Collection to City upon request at no additional charge for use at all City-sponsored and select other in-City events, including but not limited to: New Year’s Eve (not event, to address increased pedestrian activity); California Coastal Cleanup; Sunset Concert Series; Ark Walk; St. Patrick’s Day Parade; and, Surfer’s Walk of Fame. Recycling boxes should be easily distinguishable from Refuse boxes, and labeled to facilitate proper use by event participants. City crews may transport waste from these events and other in-City events to existing Bins and Roll-Off Boxes located at City yard or parks for servicing by Contractor under Section 4.5.1. If events are not listed in this section or otherwise sponsored by the City, Contractor may charge for litter boxes and liners in accordance with the approved rate schedule. 4.5.5 Emergency Collection and Disposal Service Contractor will assist City at the City’s request with emergency Collection and Disposal service (in the event of major disaster, such as an earthquake, storm, riot or civil disturbance), or as otherwise determined necessary by the City, by providing Collection equipment and drivers normally assigned to City. Contractor may charge City for actual Disposal costs plus service rates per the approved rate schedule. 4.5.6 Abandoned Item Collection Because time is of the essence, City crews will typically Collect items abandoned in the City and dispose of those items at City yard. Contractor will Collect such items from City yard and properly divert from landfilling or dispose of such items in accordance with Sections 4.1.16 and 4.1.17. To assist City crews, City may request that Contractor Collect abandoned items within 24 hours of request up to four times per month at no additional charge. 396 May 24, 2013 -56- City of Hermosa Beach 4.5.7 Large Venue Event Assistance, Event Recycling Contractor will assist planners of large venue events with reporting and planning needs as may be both useful in meeting the requirements of AB 2176, and in lowering Disposal quantities generated at, and reducing litter at, large venue and other events on City property for which a permit is required by the City at no additional charge. Contractor shall take a proactive role in Solid Waste planning for large events. When informed by City as to an upcoming event, Contractor shall contact event planners to initiate Solid Waste Collection planning. Contractor shall provide Recycling services upon request to special event planners in accordance with Section 4.2.2. 4.5.8 Litter Boxes for Non-City-Sponsored Events Contractor must make cardboard litter boxes and liners available for purchase for all non-City-sponsored events in accordance with the approved rate schedule. 4.5.9 Code Enforcement Assistances City may request Contractor assistance with code enforcement, including reporting of container and enclosure issues and potential Solid Waste-related health and safety code violations. See Section 2.2 for code enforcement assistance regarding illegal hauling. 4.5.10 Capacity Guarantee Contractor guarantees capacity at its processing facilities for all Solid Waste Collected under this Agreement. 4.5.11 Toy Drive Assistance Contractor shall assist with an annual toy drive as directed by City, delivering to a City - identified location, and later removing, a clean, covered, water-tight lockable, walk-in roll-off box suitable for the Collection of toys. 4.5.12 South Bay Work Investment Board Contractor will work with the South Bay Work Investment Board (“SBWIB”), to identify, interview, and hire SBWIB-provided candidates who meet Contractor’s hiring qualifications. 397 May 24, 2013 -57- City of Hermosa Beach 4.5.13 Dog Waste Program Contractor shall provide bags to the City for dog waste dispensers located in the City. City crews will place the bags in the dispensers. Bags will conform to the City’s dispensers, but Contractor may place its logo, educational information or other suitable communications on the bag approved by the City. 4.6 Operations 4.6.1 Schedules 4.6.1.1 Collection Days and Hours To preserve peace and quiet, Solid Waste shall only be Collected between 7:00 a.m. and 6:00 p.m. Residential collection is only permitted Monday through Thursday (with an exception for collection postponed to Friday during a holiday week as described below); Commercial collection is permitted seven (7) days a week. Contractor may not make exceptions to these Collection days and times without advanced written approval from the City. If the regularly scheduled Collection day falls on New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, or Christmas Day, Collection days for the remainder of that week shall all be postponed one Collection day, with the exception of service in the Downtown Area. Contractor shall continue providing scheduled service in the Downtown Area on holidays, and shall provide extra pickups as necessary, to prevent overflowing Containers on holiday weekends. See Section 4.1.13. 4.6.1.2 Review of Schedules and Routing Contractor shall review its operations plan outlining the Collection routes, intervals of Collection and Collection times for all materials Collected under this Agreement with City within 45 days of the effective date of this Agreement, and subsequently upon thirty (30) days written notice requesting said review. Contractor shall submit a copy of its Commercial and Residential Collection schedule and route map within seven (7) days if requested by City. If the plan is determined to be inadequate by City, Contractor shall revise it, incorporating any changes necessary to make it satisfactory to City within thirty (30) days. 398 May 24, 2013 -58- City of Hermosa Beach No change in schedules and routing shall be implemented for fifteen (15) days after Contractor receives approval from City and notifies Customers. No significant route changes may be made by Contractor without prior approval by City. 4.6.1.3 Missed Pickups If a missed pickup of Refuse, Recycling and/or Green Waste is reported to the Contractor by 3:00 p.m., the Contractor shall collect it on the same day. If a missed pickup is reported after 3:00 p.m., the Contractor shall make up the collection by noon of the next business day. 4.6.2 Vehicles A. General. The Contractor shall provide Collection vehicles sufficient in number and capacity to efficiently perform the work required by this Agreement in strict accordance with its terms as described in this Agreement. Any additional vehicles/routes that may be required to meet the service standards during the term of this Agreement shall be added at the Contractor's sole expense. The Contractor shall have available on Collection days sufficient back-up vehicles for each type of Collection vehicle used to respond to complaints and emergencies. B. Specifications. All route vehicles shall use compressed natural gas (“CNG”) or liquefied natural gas (“LNG”) within six months of the start of service under this Agreement. Contractor shall be in compliance with all rules and regulations currently in force or passed during the Agreement Term, including South Coast Air Quality Management District (“SCAQMD”) and the Air Resource Board’s regulations, in regards to all vehicles used in the City. No rate adjustments shall be made for such changes in law. All vehicles used by the Contractor in providing Solid Waste Collection services shall be registered with the California Department of Motor Vehicles. All such vehicles shall have watertight bodies designed to prevent leakage, spillage or overflow. Roll-off Box vehicles, Container delivery vehicles, scout vehicles, supervisor pickup trucks, and vehicles used for holiday tree Collection, special events and Bulky Item Collection are only required to use LNG or CNG fuel to the extent required by law, including SCAQMD and Air Resources Board regulations, with no rate adjustments granted for such changes in law. If SCAQMD Rule 1193 is determined to apply to the City of Hermosa Beach, Section 1193(d)(4)(B) would be applied for Roll-Off vehicles. 399 May 24, 2013 -59- City of Hermosa Beach All route vehicles shall be no older than fifteen (15) years at any point during the Term of the Agreement. Contractor shall provide sufficient numbers of Collection vehicles no larger than a scout truck of GVM – 6,400 lbs., L-212’ x W-92” x H-75”, wheel base–118” and/or a small side loader of GVM-19,500 lbs., L-273” x W-96” x H-121”, wheel base–178.5” to service narrow streets and alleys North of 27th Streets and other difficult areas where standard size Collection vehicles cannot easily and safely service Customers. C. Vehicle Identification. The Contractor's name, local telephone number, and a unique vehicle identification number designed by the Contractor for each vehicle shall be prominently displayed on all vehicles, in letters and numbers no less than three (3) inches high. The Contractor shall not place the City's name and/or any City logos on the Contractor’s vehicles. Vehicles shall all be painted in a standard color scheme. City must approve truck labeling. D. Collection Vehicle Billboards. City reserves the right to request that Contractor install frames on its Collection vehicles for placement of City billboards. City would be responsible for the cost of developing the billboards and providing the billboards to Contractor for mounting. City has the exclusive right to promote City events and provide public information through the use of billboards on Collection vehicles. E. Cleaning and Maintenance 1) Contractor shall maintain all of its properties, vehicles, Facilities, and equipment used in providing service under this Agreement in a good, safe, neat, clean and operable condition at all times, and compliant with all federal, State and local laws. 2) Vehicles used in the Collection of Solid Waste shall be painted, thoroughly washed, and thoroughly steam-cleaned on a regular basis so as to present a clean appearance. The City may inspect vehicles at any commercially reasonable time to determine compliance with this Agreement. The Contractor shall also make vehicles available to the Los Angeles County Health Department for inspection, at any frequency it requests. The Contractor agrees to replace or repair to the City’s satisfaction, any vehicle that the City determines to be of unsightly appearance, leaking, or in unsatisfactory operating condition. 400 May 24, 2013 -60- City of Hermosa Beach 3) Contractor shall repaint all vehicles used in the Collection of Solid Waste within sixty (60) days' notice from the City, if the City determines that their appearance warrants painting. City shall not request that vehicles be painted more than once every three (3) years. 4) The Contractor shall inspect each vehicle daily to ensure that all equipment is operating properly. Vehicles that are not operating properly, or vehicles that are leaking or in such a condition as to be unsafe or excessively noisy, shall be removed from service until repaired and operating properly. The Contractor shall reasonably perform all scheduled maintenance functions in accordance with the manufacturer's specifications and schedule. The Contractor shall keep accurate records of all vehicle maintenance, recorded according to date and mileage (or hours of operation) and shall make such records available to the City upon request. 5) Contactor shall repair, or arrange for the repair of, all of its vehicles and equipment for which repairs are needed because of accident, breakdown or any other cause so as to maintain all equipment in a safe and operable condition. The Contractor shall maintain accurate records of repair, which shall include the date and mileage (or hours of operation), nature of repair and the verification by signature of a maintenance supervisor that the repair has been properly performed. 6) Upon request by the City, the Contractor shall furnish the City a written inventory of all equipment, including Collection vehicles, used in providing service, and shall update the inventory annually. The inventory shall list all equipment by manufacturer, ID number, date of acquisition, type, and capacity. F. Operation 1) Vehicles. Vehicles shall be operated in compliance with the California Vehicle Code, and all applicable safety and local ordinances. The Contractor shall not load vehicles in excess of the manufacturer's recommendations or limitations imposed by State or local weight restrictions on vehicles. 2) Noise. Equipment shall comply with US EPA noise emission regulations, currently codified at 40 CFR Part 205, and other applicable noise control regulations, and shall incorporate noise control features throughout the entire 401 May 24, 2013 -61- City of Hermosa Beach vehicle. In no event shall the noise level of equipment used for Collection exceed seventy-five (75) dB when measured at a distance of twenty-five (25) feet from the vehicle, five (5) feet from the ground. Contractor shall submit to the City, upon City’s request, a certificate of vehicle noise level testing of all vehicles by an independent testing entity. The Contractor shall store all equipment in safe and secure locations in accordance with the City's applicable zoning regulations. 3) Damage. Contractor shall be responsible for any damage resulting from or directly attributable to any of its operations, and which it causes to: the City's driving surfaces (excluding normal wear and tear), whether or not paved; associated curbs, gutters and traffic control devices; other public improvements; and private roads and alleys. G. City Inspection Per Code. The City may cause any vehicle used in performance of this Agreement to be inspected and tested at any commercially reasonable time and in such manner as may be appropriate to determine that the vehicle is being maintained in compliance with the applicable provisions of the State Vehicle Code, including all Vehicle Code sections regarding smog equipment requirements. The City may direct the removal of any vehicle from service if that vehicle is found to be in nonconformance with applicable codes. No vehicle directed to be removed from service by the City shall be returned to service until it conforms with applicable codes, and its return to service has been approved by the City. H. Brake Inspections. The brake system of each vehicle used in performance of this Agreement shall be inspected and certified according to State law, but not less than annually, by the California Highway Patrol or by a brake inspection station licensed by the California Highway Patrol. Notice of certification shall be made available to the City within thirty (30) days of request. Failure to submit the required certification if requested shall be grounds for suspension or terminating this Agreement. I. Correction of Defects. Following any inspection, the City Manager shall have the right to cause the Contractor, at its sole cost and expense, to recondition or replace any vehicle or equipment found to be unsafe, unsanitary or unsightly. The City Manager’s determination may be appealed to the City Council, and its decision shall be final. 402 May 24, 2013 -62- City of Hermosa Beach 4.6.3 Litter Abatement A. Minimization of Spills. Contractor shall use due care to prevent Solid Waste or fluids from leaking, being spilled and/or scattered during the Collection or transporta- tion process. If any Solid Waste or fluids leak or spill during Collection, Contractor shall promptly clean up all such materials. Each Collection vehicle shall carry a broom, shovel, absorbent, and containment materials at all times for this purpose. Contractor shall not transfer loads from one vehicle to another on any public street, unless it is necessary to do so because of mechanical failure, accidental damage to a vehicle, or a pre-approved method of Solid Waste transfer between vehicles, without prior written approval by City. B. Clean Up. During the Collection or transportation process, Contractor shall clean up all litter spilled during Collection or otherwise caused by Contractor. Contractor shall leave a “red tag” notice for Customer if litter not caused by Contractor is found in Container enclosure or around Containers. For litter due to overflowing Bins, Contractor may address habitual offenders in accordance with Sections 4.1.3 and 4.1.7. In the event of a spill of materials (vehicle fluids, leachate, etc.), Contractor shall provide a cleanup of the spill to the satisfaction of City and other governing agencies. Cleanup methods may include pressure washing (Contractor must capture and reclaim water) or other similar clean-up methods. C. Covering of Loads. Contractor shall properly cover all open debris boxes during transport to the Disposal Site. D. Maintenance of Roll offs, Bins and 4.6.4 Personnel A. Qualified Drivers. Contractor shall furnish such qualified drivers, mechanical, supervisory, clerical, management and other personnel as may be necessary to provide the services required by this Agreement in a satisfactory, safe, economical and efficient manner. All drivers shall be trained and qualified in the operation of vehicles they operate and must possess a valid license, of the appropriate class, issued by the California Department of Motor Vehicles. 403 May 24, 2013 -63- City of Hermosa Beach B. Hazardous Waste Employee Training. Contractor shall establish and vigorously enforce an educational program which will train Contractor's employees in the identification of Hazardous Waste. Contractor's employees shall not knowingly place such Hazardous Waste in the Collection vehicles, nor knowingly dispose of such Hazardous Wastes at the processing Facility or Disposal Site. C. Customer Courtesy. Contractor shall train its employees in Customer courtesy, shall prohibit the use of loud or profane language, and shall instruct Collection crews to perform the work quietly. Contractor shall use its best efforts to assure that all employees present a neat appearance and conduct themselves in a courteous manner. If any employee is found to be discourteous or not to be performing services in the manner required by this Agreement, Contractor shall take all necessary corrective measures including, but not limited to, transfer, discipline or termination. If City has notified Contractor of a complaint related to discourteous or improper behavior, Contractor will consider reassigning the employee to duties not entailing contact with the public while Contractor is pursuing its investigation and corrective action process. D. Compliance with Local Laws. Contractor and its employees shall comply with all local laws when conducting business in the City. No smoking is allowed within vehicles, and all smoking materials that are allowed shall be properly disposed of; no smoking materials or other trash shall be discarded in any location except approved trash or recycling containers. Employees and subcontractors shall comply with all other laws or regulations pertaining to franchisees or the public generally. E. Unauthorized Material Removal. Contractor shall dismiss or discipline employees who remove documents or any other material from Containers, other than specifically for the purposes of Disposal and Diversion as described in this Agreement. F. Training. Contractor shall provide suitable operations, health and safety training for all of its employees who use or operate equipment or who are otherwise directly involved in Collection or other related operations. G. Compliance with Immigration Laws. Contractor shall be knowledgeable of and comply with all local, state and federal laws which may apply to the performance of this Agreement. Contractor warrants and represents that all of its employees, including any and all prospective employees hired to perform services for the City under this Agreement and the employees of any subcontractor retained by the Contractor to 404 May 24, 2013 -64- City of Hermosa Beach perform a portion of the services under this Agreement, are and will be authorized to perform the services contemplated by this Agreement in full compliance with all applicable state and federal laws, rules and regulations. H. Scavenging, Code Enforcement. Contractor shall train full time employees working in the City to work with local law and code enforcement to assist, and/or receive direction from, City to write warnings, to educate scavengers and Residents about proper Recycling, and to monitor the streets in the morning hours. 4.6.5 Identification Required Contractor shall provide its employees, companies and subcontractors who may make personal contact with residents or businesses in City with identification. City may require Contractor to notify Customers yearly of the form of said identification. Contractor shall provide a list of current employees, companies, and subcontractors to City upon request. City reserves the right to perform a security and identification check through the City’s Police Department on the Contractor and all their present and future employees employed by Contractor to work in the City, in accordance with accepted procedures established by City, or for probable cause. 4.6.6 Fees and Gratuities Contractor shall not, nor shall it permit any agent, employee, or subcontractors employed by it to accept or request, solicit or demand, either directly or indirectly, any compensation or gratuity for services authorized to be performed under this Agreement except as described in this Agreement, in accordance with Exhibit 2 as updated and approved by City throughout the Term of the Agreement. 4.6.7 Non-Discrimination Contractor shall not discriminate in the provision of service or the employment of Persons engaged in performance of this Agreement on account of race, color, religion, sex, age, physical handicap or medical condition in violation of any applicable federal or Solid Waste law. 405 May 24, 2013 -65- City of Hermosa Beach 4.6.8 Routing and Coordination With Street Sweeping Services Contractor shall provide all routes and route schedules to the City and work with the City to resolve conflicts with street sweeping schedules. 4.6.9 Report of Accumulation of Solid Waste; Unauthorized Dumping Contractor shall direct its drivers to note (a) the addresses of any Premises at which they observe that Solid Waste is accumulating and is not being delivered for Collection; and (b) the address, or other location description, at which Solid Waste has been dumped in an apparently unauthorized manner. Contractor shall deliver the address or description to City within one (1) working day of such observation. 4.6.10 Municipal Separate Storm Sewer System Protection Contractor shall conduct all aspects of work in accordance with municipal codes in a manner that prevents the discharge of non-stormwater and minimizes the discharge of pollutants in stormwater to the municipal separate storm sewer system (MS4) which includes paved streets, driveways, alleys, gutters, ditches, manmade channels, catch basins, yard or area drains connected to the street, etc. Any discharge that would result in or contribute to a violation of the Municipal Separate Storm Sewer System (MS4) NPDES permit, Order No. 01-182 and any subsequent amendments or reissued permit by the Los Angeles Regional Water Quality Control Board (Regional Board) is prohibited in accordance with the federal Clean Water Act. Liability for any such discharge including penalties levied by the Los Angeles Regional Water Quality Control Board shall be the responsibility of the contractor whose personnel caused or were responsible for the discharge. All non-storm water discharges to the MS4 are prohibited unless specifically exempted by the MS4 NPDES Permit or by the Regional Board Executive Officer. 4.7 Transportation of Solid Waste Contractor shall transport all Solid Waste Collected to an approved Facility per Section 4.8 (e.g. Transfer Station, waste-to-energy Facility, Green Waste Processing Facility, MRF, Disposal Site). 406 May 24, 2013 -66- City of Hermosa Beach Contractor shall maintain accurate records of the quantities of Solid Waste transported to all Facilities utilized and will cooperate with City in any audits or investigations of such quantities. Contractor shall cooperate with the operator of any Facility it uses with regard to operations therein, including, for example, complying with directions from the operator to unload Collection vehicles in designated areas, accommodating maintenance operations and construction of new facilities, cooperating with its Hazardous Waste exclusion program, and so forth. 4.8 Approved Facilities The approved Disposal Site for non-diverted Solid Waste is the Chiquita Canyon Landfill, Sunshine Canyon Landfill, El Sobrante Landfill and/or Puente Hills Landfill. Contractor must receive written advance approval from City to use each Transfer Station, Transformation Facility, processing Facility or other Facility used by Contractor in the fulfillment of this Agreement. Contractor is responsible for ensuring that each Facility it uses is properly permitted prior to requesting City approval to use such Facility. Unless and until the City instructs otherwise, the designated Disposal Site and other Facilities are: Athens Services Transfer Facility and MRF (City of Industry), Potential Industries (Wilmington), Chiquita Canyon Landfill (Castaic), Sunshine Canyon Landfill (Sylmar), El Sobrante Landfill (Corona), Puente Hills Landfill in Whittier, California Waste Systems (Gardena), Commerce Refuse-to-Energy (Commerce), Southeast Resource Recovery Facility or “SERRF” (Long Beach), Waste Resources Recovery (Gardena), Edco Recycling and Transfer (Signal Hill), and San Bernardino County Solid Waste Disposal sites. 4.9 Status of Disposal Site Any Disposal Site utilized by Contractor shall be designed and constructed in accordance with 23 California Code of Regulations Section 2510 et seq. ("Subchapter 15"). Any such landfill must have been issued all permits from federal, state, regional, county and City agencies necessary for it to operate as a Class III Sanitary Landfill and is in full regulatory compliance with all such permits. 407 May 24, 2013 -67- City of Hermosa Beach 4.10 Dedicated Routes Solid Waste Collected in the City may not be commingled in Collection vehicles with Solid Waste from other jurisdictions, unless the City approves in writing of the specific commingled routes and the tonnage allocation method to be used. 4.11 Service Exceptions; Hazardous Waste Notifications A. Failure to Collect. When Solid Waste is not Collected from any Solid Waste service recipient, Contractor shall notify the service recipient in writing, at the time Collection is not made, through the use of a “red tag” or otherwise, of the reasons why the Collection was not made. B. Hazardous Waste Inspection and Reporting. Contractor reserves the right to inspect Solid Waste put out for Collection and to reject Solid Waste observed to be contaminated with Hazardous Waste, and the right not to Collect Hazardous Waste put out with Solid Waste. Contractor shall notify all agencies with jurisdiction, if appropriate, including the California Department of Toxic Substances Control and Local Emergency Response Providers and the National Response Center of reportable quantities of Hazardous Waste, found or observed in Solid Waste anywhere within City. In addition to other required notifications, if Contractor observes any substances which it or its employees reasonably believe or suspect to contain Hazardous Wastes unlawfully disposed of or released on any City property, including storm drains, streets or other public rights of way, Contractor will immediately notify City Manager. Contractor shall implement and maintain a training program that will assist its employees in identifying and properly disposing of any Hazardous Waste that may come into their possession. C. Hazardous Waste Diversion Records. Contractor shall maintain records showing the types and quantities, if any, of Hazardous Waste found in Solid Waste and which was inadvertently Collected from service recipients within City, but diverted from landfilling. 4.12 Downtown Compactor Facility Development City shall build a Downtown Compactor Facility that, at a minimum, is a permanent, fully contained facility with utilities located in City Parking Lot A to contain the Downtown Compactor(s) and facilities required to provide solid waste services to the 408 May 24, 2013 -68- City of Hermosa Beach Downtown Compactor Facility Service Area in compliance with regulatory requirements. Contractor shall reimburse City the costs of designing and building the Facility, estimated to be approximately $130,000; provided that, if the City builds public restrooms at the facility, Contractor shall only be responsible for paying the costs associated with the Downtown Compactor Facility and not the public restrooms. Contractor shall reimburse City within 30 days of receipt of a written invoice from City. Failure to pay City in a timely manner shall be a material breach of this agreement. Alternatively, should the City elect not to include public restrooms in the facility, City shall have the right to assign the Contractor the responsibility for building the Facility in accordance with specifications approved by the City. In such event, Contractor shall pay prevailing wage rates in accordance with the California Labor Code. Contractor shall convey title to the facility to the City upon completion and acceptance by City. Contractor shall operate, maintain and be responsible for the Downtown Compactor Facility throughout the Term of this Agreement, including without limitation the same cleaning obligations as described for enclosure cleaning in Section 4.1.14. City shall have no obligations with respect to the Downtown Facility throughout the Term of this Agreement, provided that the City shall be responsible for maintaining and cleaning any public restrooms constructed at the Facility. Contractor shall provide all necessary utility services to the Downtown Compactor Facility and, if Contr actor builds the Facility, shall be responsible for obtaining all necessary approvals and permits to construct Facility. The City hereby grants Contractor a revocable license to enter and use the Facility Premises for the sole purpose of constructing, maintaining and operating the Downtown Compactor and Downtown Compactor Facility at the Facility Premises and to the specifications specified above and as required by the City for the Term of this Agreement. Upon expiration of termination of this Agreement, this license shall automatically become null and void, shall be of no further force and effect. Contractor may amortize the cost to construct the Downtown Compactor Facility over a twenty (20) year period and pass those costs through to the participating businesses in the Downtown Compactor Facility Service Area in proportion to the service levels of each of those participant businesses through the business’ monthly billing statement. Any amount of the amortized pass-through costs outstanding at the time this Agreement terminates or expires may be assigned to the City’s subsequent Collection contractor. City shall require the subsequent Collection contractor to reimburse 409 May 24, 2013 -69- City of Hermosa Beach Contractor in a lump sum any remaining as yet unreimbursed construction costs. In no event shall the City be responsible for paying the Downtown Compactor Facility construction costs, or any other costs associated with Downtown Compactor Facility maintenance or operation. 410 May 24, 2013 -70- City of Hermosa Beach ARTICLE 5 OTHER SERVICES 5.1 Customer Service 5.1.1 Local Office, Response Time Contractor shall maintain an office within City limits, for the term of the Agreement, staffed and open for Customers, at a minimum, from 8:00 a.m. to 5:00 p.m., Monday through Friday, excluding holidays. Contractor shall staff a toll-free telephone line to assist Customers from 7:00 a.m. to 6:00 p.m. Monday through Friday; a representative or an answering service shall be available from 8:00 a.m. to 5:00 p.m. on Saturday; a representative, an answering service or answering machine shall be available during all other hours. As an enhancement to the above requirements during certain hours, Contractor shall provide a live operator (not an automated menu leading to a representative) from 7:00 a.m. to 5:00 p.m. Monday through Friday and from 8:00 a.m. to 12:00 p.m. on Saturday. Calls received by answering service or machine shall be responded to by the next business day. Contractor shall provide City with a twenty-four (24) hour emergency number to a live person, not voice-mail. Contractor's telephone system shall be adequate to handle the volume of calls typically experienced on the busiest days and Customers must be reasonably able to reach Contractor by telephone during these hours. Contractor shall record Customer complaints regarding Customer service personnel in accordance with Section 5.1.2. Customer service representatives receiving multiple complaints are to be transferred from Customer service duties or, with City approval, disciplined and appropriately trained. Contractor shall be required to direct all Customers to Contractor’s offices in all public outreach, including its website. Should Customers first contact City, Contractor shall pay for any extra costs associated with establishing a means of forwarding Solid Waste- related calls directly to Contractor without the need for Customers to re-dial. 411 May 24, 2013 -71- City of Hermosa Beach 5.1.2 Complaint Documentation Service complaints received by City shall be directed to Contractor. Contractor shall keep daily logs of complaints forwarded to it for a minimum of three (3) years. Contractor shall log all complaints received, and said log shall include the date and time the complaint was received, the name, address and telephone number of the caller/complainant, a description of the complaint, the name of the employee recording the complaint and the action taken by Contractor to respond to and remedy the complaint. Log shall also include each instance that Solid Waste and/or Recyclables are not Collected, the form of notification used to inform the participants of the reasons for non-Collection, and the end result or means of resolution of the incident. All written Customer complaints and inquiries shall be date-stamped when received. All complaints shall be initially responded to within one (1) business day of receipt, except missed pickups, which shall be addressed within the time frame described in 4.6.1.3. Contractor shall use best efforts to resolve complaints within two (2) business days. Contractor shall log action taken by Contractor to respond to and remedy the complaint. All Customer service records and logs kept by Contractor shall be available to City upon request. Contractor shall supply compliant log to City on a quarterly basis. City shall, at any time during regular Office Hours, have access to Contractor's Customer service department for purposes that may include monitoring the quality of Customer service or researching Customer complaints. 5.1.3 Resolution of Customer Complaints Disputes between Contractor and Customers regarding the services provided in accordance with this Agreement may be resolved by City Manager. City Manager’s decision shall be final and binding. Intervention by City is not a condition precedent to any rights or remedies third parties might otherwise have in any dispute with Contractor. Nothing in this section is intended to affect the remedies of third parties against Contractor. 412 May 24, 2013 -72- City of Hermosa Beach 5.1.4 Service Liaison/Route Supervisor Contractor shall designate in writing a field supervisor as “Service Liaison” who shall be responsible for working with City and/or City's designated representative(s) to resolve Customer service related complaints. City shall have the right to approve the Contractor’s choice for a liaison. City shall be notified in advance of any change in Service Liaison. Service Liaison shall devote a minimum of 50% of his/her time to working with the City of Hermosa Beach, and 100% of his/her time to working in the South Bay. For at least the first 90 days of service, Contractor shall devote two Service Liaisons (route supervisors) to the City 100% of the time. 5.2 Education and Public Awareness 5.2.1 General Contractor acknowledges and agrees that education and public awareness are critical, key and essential elements of any efforts to achieve the requirements of AB 939. Accordingly, Contractor agrees to take direction from City to exploit opportunities to expand public and Customer knowledge concerning needs and methods to reduce, reuse and Recycle Solid Waste, and to cooperate fully with City in this regard. Contractor shall maintain its own program of providing information relevant to needs and methods to reduce, reuse and Recycle Solid Waste with its Bills. All public education materials shall be approved in advance by City and shall be printed in English and Spanish. 5.2.2 Implementation and On-going Education Requirements In order to promote public education, in addition to any other materials it develops, Contractor shall create the following public education materials and programs at Contractor expense, subject to City approval and input, which will be distributed as indicated below. All of these materials and programs shall be produced and/or available in English and Spanish languages, including pictures wherever applicable. All brochures, mailings, instructional “how-to” packets, and other educational materials are to be approved by City in advance of distribution. A public education plan shall be submitted to City for review within sixty (60) days of the execution of this Agreement. This plan shall address the items described in this section. 413 May 24, 2013 -73- City of Hermosa Beach • Initial Mailing – At least forty-five (45) days prior to the start of Collection service under this Agreement, Contractor will prepare and mail an initial mailing to all Customers explaining the transition from the existing Solid Waste Handling Service program to the new program as defined by this Agreement. The mailing will describe program changes, route changes if any, dates of program implementation, Recycling and Diversion programs available, and other pertinent information. • Instructional “How-to” Packets – An information packet shall be provided to each Customer at the start of service under this Agreement and to each new Customer throughout the Agreement term. This packet shall: describe available services, including available Recycling and Diversion programs and their benefits; provide instructions for proper use of the Carts and Bins provided (such as how to place Carts or other permitted items for Collection, the types of materials to be placed in each Cart); detail holiday Collection schedules; and provide Billing and Customer service telephone numbers. This packet will contain updated information on how to use Containers, when, where and how to place Solid Waste for Collection, and who to contact with service or Billing questions, and for Bulky Item pickups. The packet should also clearly indicate what materials, such as syringes and other HHW, should not be disposed of in these Containers. This brochure shall include instructions on how Customers should dispose of HHW and Sharps, such as information on the HHW drop-off facilities, Sharps program, and other available programs. • Public Outreach Pieces – Not less than twice per year during each Rate Year at Contractor’s cost, Contractor shall prepare and distribute to each Customer, either by mailing or as otherwise dictated by City a public education piece to update Customers regarding program basics, program changes, holiday schedules and other service related information. Mailings may promote and explain: all Solid Waste programs offered by City and Contractor (such as Recycling, Green Waste, holiday tree, Bulky Item Collections, annual HHW round-up) described in detail; the environmental, regulatory, and other benefits of participating in Recycling and waste minimization and reuse in general; how to properly dispose of Household Hazardous Waste such as syringes, paint, etc.; Collection schedules, including holiday schedules; Customers service numbers; or other information requested by City. 414 May 24, 2013 -74- City of Hermosa Beach City shall determine the messages to be included in each piece and the format (brochure, door hanger, other), and shall have final approval over the pieces. • Article and Press Release Assistance – Contractor shall assist the City in preparing articles and press releases related to Solid Waste services and environmental issues upon City request. • Corrective Action “Red-Tag” Notice – Contractor shall develop a corrective action notification form, or “Red-Tag” notice, for use in instances where a Customer sets out inappropriate materials for Collection, that explains the appropriate manner for Disposal of such items. • Website – Contractor shall develop and maintain an interactive website to enable Customers to contact Contractor, and to display holiday schedules, Sharps program information, proper HHW disposal procedures, which materials are to be placed in Recycling Containers, and other useful information. • Twitter Account – Contractor shall maintain a Twitter account for the dissemination of information regarding environmental and local community news. Contractor shall offer social media consultation to any Hermosa Beach-based organization. 5.2.3 Contractor Representative Contractor shall retain on its staff an individual who shall, as part of his or her job function, routinely visit civic groups, school assemblies and science classes, homeowners’ associations, Multi-Family complexes and businesses, town hall-type outreach meetings, to promote and explain the Recycling programs Contractor offers, promote re-use and Recycling, and participate in demonstrations and civic events. 5.2.4 Community Events At the direction of City, Contractor shall participate in and promote Recycling and other Diversion techniques at community events including Earth Day, and other local activities. Such participation would normally include providing, without cost, Collection and educational and publicity information promoting the goals of City's Integrated Solid Waste Management program and give-a-ways promoting waste reduction and reuse, such as reusable bags. 415 May 24, 2013 -75- City of Hermosa Beach If requested by City, Contractor shall conduct community disaster and emergency preparedness classes for all residents at Contractor’s expense. Contractor will assist conducting and promoting community recycling drives, partnering with the City, non- profit organizations, businesses, the Chamber of Commerce and other organizations, and providing staff, containers, and container transportation for use at the events. 5.2.5 School Outreach At no additional cost, Contractor shall contact all K-12 public schools in the City of Hermosa Beach at least once per school year to offer to conduct assemblies, and to prepare and provide classroom materials (not curriculum), to educate students regarding Recycling and other Solid Waste-related topics. Materials provided shall be in sufficient quantities to service all classrooms and students for which materials are requested, and shall be subject to City approval. Contactor shall provide in-classroom and on-campus Recycling Containers at no cost to schools or City. 5.2.6 Business Outreach Contractor shall conduct a program to recognize businesses making positive environmental efforts and participating in Recycling programs. Awards will be presented annually at an annual event, Council meeting or award ceremony to be mutually agreed upon by City and Contactor, Contractor shall provide selected companies with an award to be mutually agreed upon by City and Contractor. Contractor will provide business managers with promotional information, flyers and instructional posters made from recycled paper and labeled “Made from Recycled Paper” to implement a comprehensive waste reduction and recycling program, including information on what cannot be placed in the recycling container (i.e.: HHW). Contractor shall develop a comprehensive program to promote the following: • Reduce solid waste disposal and promote recycling; • Become energy and water efficient; • Purchase products that are less harmful to human health and the environment; • Minimize pollution contributions; • Help improve indoor air quality and reduce smog formation; and, 416 May 24, 2013 -76- City of Hermosa Beach • Educate businesses and their customers and employees about green business practices. Contractor shall provide initial and on-going consultation and support to businesses who request it to assist in the development and continuation of their business’ waste reduction and recycling programs. 5.2.7 Multi-Family Outreach Contractor will provide all property managers and Residents with Bin service with Recycling program guidelines, posters to be placed in laundry rooms, Refuse/Recyclable Container enclosures and other community areas at each building, and other outreach materials tailored to Multi-Family Bin Customer service. When contacting Multi-Family Customer building owner or property manager in accordance with Section 4.2.2, Contractor shall provide educational materials, and offer training to owner/manager in how to work with tenants to Recycle. Contractor shall provide each building owner and property manager with welcome packets for owner/manager to provide to each new resident upon move-in; packets will include information on what should be placed in the recyclables containers. 5.2.8 Facility Tours Upon thirty (30) days’ notice, Contractor shall provide City Customers and organizations tours of its Recycling and other Solid Waste facilities at no cost to City, Customers or organizations. Such tours shall not unreasonably disrupt facility operation. City shall not be charged for labor, overhead, overtime, or any other costs associated with such tours. As part of such tours, Contractor shall distribute an educational brochure, printed on recycled paper, on conservation, Recycling, and general Solid Waste management programs. 5.2.9 Free Mailing of City Materials Contractor will include in its Billing statements, at no charge to City, a City-generated semi-annual waste and recycling insert, and/or any other mailing inserts provided by City. Such material may be included on a quarterly basis at City’s request. These mailings are in addition to any other Contractor public education and distribution requirements under this Agreement. 417 May 24, 2013 -77- City of Hermosa Beach 5.2.10 Mighty Mike Mascot Contractor shall provide its Mighty Mike mascot truck at City-sponsored events at no additional charge for community events. Truck should be requested by the City 30 days in advance from Contractor’s Route Supervisor, Operations Manager or General Manager, and the truck will be tailored to fit the theme of the event. Contractor shall be responsible for delivery, display and demonstration of the vehicle throughout the course of the events, removal, and any other associated costs of providing this truck for such events. 5.2.11 Presentations to City Council Contractor, on request, shall present to the City Council updates on changing Solid Waste-related regulations and technologies and their potential impact on the City. 5.2.12 Guest Speaker and Writing Assistance City may require Contractor to provide guest speakers at community events and assistance with drafting written materials, such as articles and press releases, for Solid Waste-related topics. 5.3 Waste Generation/Characterization Studies Contractor acknowledges that City must perform Solid Waste generation and Disposal characterization studies periodically to comply with the requirements of AB 939. Contractor agrees to participate and cooperate with City and its agents and to accomplish studies and data collection and prepare reports, as needed and directed by City, to determine weights and volumes of Solid Waste Collected and characterize Solid Waste generated, disposed, transformed, diverted or otherwise handled/processed, by Customer type (Single Family, Multi-Family, Commercial), to satisfy the requirements of AB 939 and the City’s sustainability and environmental objectives. Contractor will at its sole expense conduct such a waste generation and characterization study upon request of City, but not more than once every two (2) years. 5.4 Community Support Contractor shall support the following events: Sunset Concerts – through annual sponsorship 418 May 24, 2013 -78- City of Hermosa Beach Fiesta Hermosa – through annual sponsorship and through providing employee volunteers at event Hermosa Beach Murals Project – Corporate membership contribution of $1,000 Hermosa Beach Education Foundation – Contractor shall match contributions to this foundation made by any Contractor employee, provide four $500 scholarships per year, and provide volunteer hours for foundation events. Hermosa Beach Historical Society – Business membership of $50 Hermosa Beach Sister Cities – Corporate membership of $250 Hermosa Beach Friends of the Library – Annual donation of $500 Hermosa Beach Friends of the Park – Annual donation of $500 Other non-profit organizations – Additional $10,000 (funding or in-kind services) to be distributed to organizations as directed by the City. 5.6 Neighborhood Safety Watch Contractor shall specially train drivers to recognize and report potentially dangerous, criminal, unusual or suspicious situations to local law enforcement. 419 May 24, 2013 -79- City of Hermosa Beach ARTICLE 6 CONTRACTOR COMPENSATION AND RATES 6.1 General The maximum rates set forth in Exhibit 2, and as more fully defined as Contractor Compensation in this Article, shall be the maximum amount that Contractor may charge Customers, as full, entire and complete compensation due pursuant to this Agreement for all labor, equipment, materials and supplies, City fees, taxes, insurance, bonds, letters of credit, overhead, Disposal, transfer, profit and all other things necessary to perform all the services required by this Agreement in the manner and at the times prescribed. Contractor shall impose no other charges for services provided to Customers unless approved by the City Manager. 6.2 Initial Rates The maximum rates that Contractor may charge Customers from July 1, 2013 through June 30, 2014, shall not exceed the maximum rates set forth in Exhibit 2. 6.3 Schedule of Future Adjustments 6.3.1 Request Submittal Beginning with the Rate Year starting July 1, 2014 and ending on June 30, 2015, and for all subsequent Rate Years, Contractor may request an annual adjustment to the maximum rates shown in Exhibit 2. The Contractor shall submit its request in writing, to be received by City in person or via certified mail, by the preceding March 1, and shall be based on the method of adjustment described in Section 6.4. Failure to submit a written request by March 1 shall result in Contractor waiving the right to request such an increase for the subsequent Rate Year. 6.3.2 Approval Process Annual adjustment to the maximum rates calculated in accordance with Section 6.4 is subject to the approval of the City Manager, with any other adjustments subject to approval of City Council. If a rate adjustment requested per this Section 6.3 is determined by the City to be accurately calculated in accordance with Agreement 420 May 24, 2013 -80- City of Hermosa Beach procedures, and would otherwise have been approved by the City Council, but is prevented from implementation due to a protest under Proposition 218, then Contractor is permitted to terminate this Agreement upon 24-month written notice to City, but shall not be entitled to compensation from City or Customers for lost revenue due to the Proposition 218 protest. 6.4 Method of Adjustments 6.4.1 General Pursuant to Section 6.3, Contractor may request an adjustment to the maximum rates according to the method described below, subject to review and approval of City. All future adjustments approved under Sections 6.3 and 6.4 are to be effective July 1. (Note that the following rate adjustment formulas shall apply to the rates net of AB 939 fee, as AB 939 fees are adjusted in accordance with Section 3.6.) 6.4.2 Cost Components for Rate Adjustment Indices The approved Company Compensation consists of the following cost component categories. Each cost component may be adjusted by the change in the corresponding index below. See Section 6.4.3 for detailed Company Compensation adjustment procedures. 421 May 24, 2013 -81- City of Hermosa Beach (1) If an index is discontinued, an alternative index must be approved by the City Manager. 6.4.3 Rate Adjustment Steps Cart, Can, and Bin Rates Bin, Can, and Cart rates will be adjusted using the cost component weightings identified above for Bin, Can, and Cart rates as described below. See Exhibit 3A. Step One – Calculate the percentage increase or decrease in each index listed in Section 6.4.2. The increase or decrease in the published indices for labor, fuel, equipment, disposal and all other (CPI) will be the change in the average annual published index between the 12-months ended the September prior to the Rate Year anniversary date and prior 12-month average (See Exhibit 3C). Step Two – The first rate adjustment cost components as a percentage of total costs are provided in Section 6.4.2 above, with subsequent components calculated in Step Four of the rate adjustment. For Step Two of each subsequent rate adjustment, use the cost components recalculated in Step Four during the previous rate adjustment. Bin/Cart/ Can/COD Roll-Off Box Pull Rate Labor 25%41% Employment Cost Index CIU20100005200000I, Total compensation, Private industry, Index number, Transportation and material moving Fuel 5%18% Producer Price Index WPU 0531, Not seasonally adjusted, Fuels and related products and power, natural gas Equipment 13%13% Producer Price Index, PCU336120336120, Heavy duty truck manufacturing Processing/ Disposal 27%n/a Consumer Price Index for All Urban Consumers (CUUR0000SA0L1E), all items less food and energy index – U.S. city average or 5%, whichever is lower All Other 30%28% Consumer Price Index for All Urban Consumers (CUUR0000SA0L1E), all items less food and energy index – U.S. city average Total 100%100% Rate Adjustment Factor (1)Cost Category Initial Weightings 422 May 24, 2013 -82- City of Hermosa Beach Multiply the percentage changes for each rate adjustment component by that component’s weighting and add these resulting percentages together to get the total weighted change to the rates. If this percentage change exceeds 5%, the change shall be capped at 5%. Step Three – Multiply the total weighted percent change from Step Two by the existing Customer rates to calculate the increase or decrease to the maximum rates. Add the rate increase or decrease to the existing rates to derive the newly adjusted rates. Step Four – Recalculate weightings for the following year based upon these changes. “Pull Plus Dump” Roll-Off Box Rates Roll-Off Box pull rates (excluding disposal-inclusive COD rates) will be adjusted using the same methodology above, with the weightings identified above for Roll-Off Pulls. The 5% cap on annual increases as described in Step 2 applies as well. The per ton Roll- Off Box Refuse Disposal rate shall adjust based upon the change in the disposal component of the rates (per the rate adjustment factor in Section 6.4.2). See Exhibit 3B. 6.4.4 Green Waste Rate Adjustment Upon Closure of Puente Hills The Residential Green Waste Cart rates for services provided under Section 4.3.1 shall increase by $0.30 per Cart per month upon the closure of Puente Hills Landfill, provided Contractor then transports material Collected on the Green Waste Cart route to Company’s American Organics facility in Victorville for composting. At this point , Food Waste will be permitted to be added to the Green Waste Carts for composting at no additional cost. This increase is the only compensation adjustment granted for the landfill closure and/or use of an alternative Green Waste facility. 6.5 Extraordinary Adjustments Contractor may request an adjustment to maximum rates in the event of extraordinary changes in the cost of providing service under this Agreement. Extraordinary rate adjustments may be requested no more than once per year. Reasons for such extraordinary rate adjustment requests shall not include changes in Recyclable Material or Green Waste tipping fees or processing costs, changes in transformation costs, changes in the market value of Recyclables from the values assumed in Contractor's 423 May 24, 2013 -83- City of Hermosa Beach Proposal, inaccurate estimates by the Contractor of its proposed cost of operations, unionization of Contractor’s work force, or change in wage rates or employee benefits. Contractor may request an extraordinary adjustment based upon changes in a direct per ton fee assessed at the Disposal Site by federal, state or local regulatory agencies after the Effective Date. Extraordinary rate adjustments shall only be effective after approval by City Council and may not be applied retroactively. Should any such adjustment require a Proposition 218 hearing, Contractor shall bear all costs. For each request for an adjustment to the maximum rates that Contractor may charge Customers brought pursuant to this section, Contractor shall prepare a schedule documenting the extraordinary costs. Such request shall be prepared in a form acceptable to City with support for assumptions made by Contractor in preparing the estimate. Contractor shall also submit a schedule showing how its total costs and total revenues have changed over the past three (3) years for the services provided under this Agreement. City may request a copy of the Contractor’s annual financial statements in connection with the City’s review of Contractor’s rate adjustment request. City shall review t he Contractor’s request and, in City’s sole judgment and absolute, unfettered discretion, make the final determination as to whether an adjustment to the maximum rates will be made, and, if an adjustment is permitted, the appropriate amount of the adjustment. City may consider increases or decreases in the Contractor’s total revenues and total cost of services when reviewing an extraordinary rate adjustment request. 6.6 Redelivery/Return Trip Fee Contractor may charge a fee, per the approved rate schedule, in the event that Contractor arrives on time for a scheduled Collection of Bins or Roll-off Boxes, is impeded from Collection due to Container being blocked or otherwise unable to be Collected due to issues within the Customer’s control, and Contractor must return a second time for Collection. Charge may be assessed for the trip, not per Bin or Roll-off Box, in the event of a Customer with multiple Bins or Roll-off Boxes. In event of dispute between Contractor and Customer over application of this fee, City Manager shall resolve the dispute. 424 May 24, 2013 -84- City of Hermosa Beach 6.7 Customer Billing and Contractor Compensation 6.7.1 Residential Customers Receiving Individual-Unit Service Contractor shall Bill individually-serviced Residential Customers quarterly, no sooner than the first day of the quarter for which services are being Billed. Contractor assumes the risk of non-payment. 6.7.2 Permanent Bin and Roll-Off Box Customers Contactor shall Bill permanent Bin and Roll-Off Box Customers monthly, no sooner than the first day of the month for which service is being Billed, with payment due no sooner than thirty (30) days after the invoice date. Contractor assumes the risk of non- payment by Bin Customers. 6.7.3 Temporary Services Billing Contractor shall Bill for temporary Roll-off Box and Bin services, and other special charges, as permitted in Exhibit 2. For established Commercial accounts, Contractor shall Bill monthly, no sooner than the first day of service, and require payment no sooner than thirty (30) days from the start of the service period Billed for. For Customers without an established, on-going service accounts, Contractor will accept major credit cards for payment. Such Customers who do not use credit cards may be required by the Contractor to post a security deposit or to pay on a “Cash on Delivery” (C.O.D.) basis. Any unused portion of a security deposit will be refunded to the Customer within five (5) business days of the termination of service. 6.7.4 Contractor’s Invoices All Bills must include service description, including Container size, frequency of service, any special services (such as scout or push-out service), and period billed for. City must approve Contractor Billings as to content and format of invoice. All Bills must carry a due date, not “due upon receipt.” Bills will not separately itemize City fees, surcharges, disposal components or other breakdown of rates without advance written approval from City. Bills shall include Contractor’s telephone number for Billing and service inquiries. 425 May 24, 2013 -85- City of Hermosa Beach 6.7.5 Billing Disputes If any Customer disputes a Billing statement provided by Contractor, Contractor shall provide notice thereof to the City Manager, with a copy of the Billing invoice and the nature of the dispute (including copies of any correspondence from the Customer). Contractor shall use its best efforts to resolve such disputes within seven (7) days of receipt of notice from the Customer of such dispute. If such dispute cannot be mutually resolved by the Contractor and the Customer within such seven (7) day period, the dispute will be submitted to the City Manager for binding dispute resolution. Contractor acknowledges that the determination of the City Manager relating to such dispute shall be final and un-appealable. 6.7.6 Delinquent Accounts Contractor shall be responsible for collecting unpaid Customer Billings, subject to limitations under this section. City will assist the Contractor with collections by putting delinquencies on the County property tax roll after the delinquency notes have been delivered, but is not liable for any bad debt. Residential Cart/Can Service For late payments, Contractor shall follow procedures below: 1. The first delinquency notice may be sent with the subsequent quarterly Billing, with a copy sent to the City Manager. A 10% late payment fee may be added to the outstanding, late balance. 2. The second delinquency notice may be sent no sooner than thirty (30) days following the first notice, with a copy sent to the City Manager. A second 10% late payment fee may be added to the outstanding, late balance. Bin, Commercial Cart/Can and Roll-Off Box Service 1. The first delinquency notice may be sent with the subsequent monthly Billing, with a copy to the City Manager. A 10% late payment fee may be added to the outstanding, late balance. 426 May 24, 2013 -86- City of Hermosa Beach 2. The second delinquency notice may be sent thirty (30) days after the first, warning that service may be suspended, with a copy to the City Manager. A second 10% late payment fee may be added to the outstanding, late balance. 3. Anytime following the second delinquency notice, Contractor shall send a notice warning that service will be suspended within seven (7) days, with copy to City Manager. Contractor may suspend service after seven (7) days with written City approval. City may prohibit suspension of service to Residential Cart/Can Customers, and may request that service be continued or resumed for delinquent Residential Bin Customers on a case-by-case basis due to code enforcement issues; in such cases, City shall not be liable to Contractor for service costs not recovered by Contractor. 6.7.7 Customer Billing Adjustments Should Contractor determine that Contractor has under-billed a Customer, or Customers, Contractor may back-Bill for no more than six (6) months. If it is determined by the City Manager that the under-billing was entirely due to an error or omission on the part of the impacted Customer, Contractor may request authority from the City Manager to back-bill longer than six months. Reimbursements to Customers for overbilling are not limited. If Contractor Bills Customers for any service charges not on the City-approved rate schedule, or not otherwise approved in writing by the City, such charges shall be refunded to Customers at City request. 6.7.8 Exemption from Service Residents may request a temporary exemption from service due to non-occupancy, construction, documentation of self-hauled Disposal, or other reasons as set forth in the Hermosa Beach Municipal Code. Contractor shall be responsible for administering exemption procedures, pursuant to the requirements in the Hermosa Beach Municipal Code. City may provide or revise Contractor guidelines to exempt properties from receiving, and paying Contractor for, Solid Waste Collection service. Exempt properties may include vacant or unoccupied properties, or properties in which owners can document alternative means of self-haul Disposal. 427 May 24, 2013 -87- City of Hermosa Beach 6.7.9 Active Military Rate Reductions Contractor shall provide a 25% rate reduction to monthly Residential Cart rates for active members of the military. As active military may be stationed away from home for periods of time, this rate reduction would apply to the property so long as the military member maintains the property as his or her permanent residence. The City Manager shall make the final determination as to permanent residence status based on evidence provided by person requesting discount 6.7.10 Senior Low-Income Rate Reduction Contractor shall provide a 10% rate reduction to seniors sixty-two years of age or older that meet the criteria for low-income rate reductions offered by local utility companies, including California Alternative Rates for Energy, or CARE, and meet the following criteria. Qualifying Customer shall subscribe to Cart Collection service with Refuse Cart sizes of 35- to 96-gallons. (The 20-gallon Refuse Cart service rate is considered a reduced rate without further reduction.) Qualifying Customer shall be the head of the household with the Solid Waste Collection account in his/her name and shall reside in the applicable home. The discount is not applicable to Landlords or Bin Customers. Contractor shall be solely responsible for administering this rate reduction program. If Parties dispute the applicability of the rate reduction, the City Manager may, but is not obligated to, make a final determination as to applicability. 428 May 24, 2013 -88- City of Hermosa Beach ARTICLE 7 REVIEW OF SERVICES AND PERFORMANCE 7.1 Performance Review Meeting City may hold a meeting or a public hearing annually to review Contractor’s Solid Waste Collection efforts, source reduction, processing and other Diversion services and overall performance under this Agreement (the “Solid Waste Services and Performance Review Meeting”). The purpose of the Solid Waste Services and Performance Review Meeting is to provide for a discussion and review of technological, economic, and regulatory changes in Collection, source reduction, Recycling, processing and Disposal to achieve a continuing, advanced Solid Waste Collection, source reduction and Recycling and Disposal system; and to ensure services are being provided by Contractor with adequate quality, effectiveness and economy, and in full compliance with the terms of this Agreement. Topics for discussion and review at the Solid Waste Services and Performance Review Meeting shall include, but shall not be limited to, services provided, feasibility of providing new services, application of new technologies, Customer complaints, amendments to this Agreement, developments in the law, new initiatives for meeting or exceeding AB 939's goals, regulatory constraints, results of route audits, and Contractor performance. City and Contractor may each select additional topics for discussion at any Solid Waste Services and Performance Review Meeting. City shall notify Contractor of its intent to hold a Solid Waste Services and Performance Review Meeting at least sixty (60) days in advance thereof. Thirty (30) days after receiving notice from City of a Solid Waste Services and Performance Review Meeting, Contractor shall submit a report to City which may contain such information as it wished to have considered, and shall contain the following: a) Current Diversion rates and a report on Contractor’s outreach activities for the past year. b) Recommended changes and/or new services to improve City's ability to meet waste diversion goals and to contain costs and minimize impacts on rates. A specific plan for compliance with State diversion goals shall be included. c) Any specific plans for provision of new or changed services by Contractor. 429 May 24, 2013 -89- City of Hermosa Beach The reports required by this Agreement regarding Customer complaints shall be used as one basis for review of Contractor’s performance, and Contractor may submit other relevant performance information and reports for consideration at the Solid Waste Services and Performance Review Meeting. In addition to the above, City may request Contractor to submit any other specific information relating to its performance for consideration at the Solid Waste Services and Performance Review Meeting, and any Customer may submit comments or complaints during or before the Meeting, either orally or in writing. Contractor shall be present at and participate in the Solid Waste Services and Performance Review Meeting. As a result of its findings following any Solid Waste Services and Performance Review Meeting, City may require Contractor to provide expanded or new services within a reasonable time and City may direct or take corrective actions for any performance inadequacies (although nothing contained in this provision should be construed as requiring City to hold a Solid Waste Services and Performance Review Meeting in order to enforce any rights or remedies it has pursuant to the terms hereof.) Should City require expanded or new services as a remedy for Contractor’s failure to perform its obligations hereunder, no additional compensation shall be due for such services. Otherwise, any new or expanded services required of Contractor shall be subject to the provisions of Section 2.10. 7.2 Performance Satisfaction Survey If requested by the City, Contractor will create and conduct a survey at Contractor’s expense in preparation for any Solid Waste Services and Performance Review Meeting held pursuant to Section 7.1. City shall notify Contractor of its desire for such a survey at least ninety (90) days in advance of the Solid Waste Services and Performance Review Meeting. The purpose of the survey is to determine Customer satisfaction with current Collection services and Customer service provided by Contractor. The Survey will be distributed to a minimum of five percent (5%) of the Residential Customers and ten percent (10%) of the Commercial Customers, selected at random. City may instruct Contractor to send out separate Single Family and Multi-Family/Commercial surveys. Contractor shall obtain City’s approval of each survey’s content, format, and mailing list prior to its distribution. City may require that Contractor have Customer responses to the survey returned directly to City. The survey results shall be made available to the City thirty (30) days prior to the Solid Waste Services and Performance Review Meeting. 430 May 24, 2013 -90- City of Hermosa Beach 7.3 Route Audit Once during the first year, and thereafter at City request (but not more frequently than once per year), Contractor shall conduct an audit of its Residential and/or Commercial Collection routes in the City. City may use information from the audit to develop a request for proposals for a new service provider. City may instruct Contractor when to conduct the audit in order for the results to be available for use in preparation of a request for proposals or for other City uses. City may also instruct Contractor to conduct an audit at a time that would produce the most accurate Customer service information for a new service provider to use in establishing service with Customers. In setting these audit dates, City will establish due dates for Contractor providing routing and account information, and later, the report, to City. The route audit, at minimum, shall consist of an independent physical observation by person(s) other than the route driver of each Customer in City. This person(s) is to be approved in advance by City. The route audit information shall include, as a minimum, the following information for each account: For Residential Cart Customers (Residential Route Audit): Route number; Truck number; Number and size of Carts by waste stream (Refuse, Recycling, Green Waste); Service address; and, Cart condition. For Residential Bin, Commercial Bin and Cart, and permanent Roll-off Customers (Commercial Route Audit): Route number; Truck number; Account name; Account number; Account service address; Account type (Residential, Commercial, Roll-off); 431 May 24, 2013 -91- City of Hermosa Beach Service level per Contractor Billing system (quantity, size, frequency); Observed Containers (quantity and size). Container condition; Proper signage; and, Graffiti. Within thirty (30) days after the completion of the route audit, Contractor shall submit to City a report summarizing the results of the audit. This summary shall include: Identification of the routes; Route map; Truck numbers; Number of accounts, by route and in total (Residential, Commercial and Roll-off Box); Confirmation that all routes are dedicated exclusively to City Customers, or that the tonnage allocation methodology has been approved by the City; Number and type of exceptions observed; Total monthly service charge (Residential, Commercial and Roll-off Box), pre-audit; and, Total monthly service charge (Residential, Commercial and Roll-off Box), post-audit (subsequent to corrections of identified exceptions). The report shall include a description of the procedures followed to complete the route audit. This description shall include the names and titles of those supervising the route audits and the names and titles of those performing the observations. The report shall also include a description of the changes and Contractor’s plans to resolve the exceptions. The results of the audit, and supporting back-up data, shall be available for review by City or its representative and shall be made available in an electronic or printed format. 432 May 24, 2013 -92- City of Hermosa Beach ARTICLE 8 RECORDS, REPORTS AND INFORMATION REQUIREMENTS 8.1 General Contractor shall maintain such accounting, statistical and other records related to its performance under this Agreement as shall be necessary to develop the financial statements and other reports required by this Agreement. Also, Contractor agrees to conduct data collection, information and record keeping, and reporting activities needed to comply with applicable laws and regulations, to meet the reporting and Solid Waste program management needs of City, and to evaluate progress on meeting the City’s sustainability and environmental objectives. To this extent, such requirements set out in this and other articles of this Agreement shall not be considered limiting or necessarily complete. In particular, this article is intended to only highlight the general nature of records and reports and is not meant to define exactly what the records and reports are to be and their content. Further, with the written direction or approval of City, the records and reports to be maintained and provided by Contractor in accordance with this and other Articles of the Agreement shall be adjusted in number, format, or frequency. 8.2 Records 8.2.1 General Contractor shall maintain records required to conduct its operations, to support requests it may make to City, and to respond to requests from City in the conduct of City business. Adequate record security shall be maintained to preserve records from events that can be reasonably anticipated such as a fire, theft and earthquake. Electronically maintained data/records shall be protected and backed up to the satisfaction of the City. All records shall be maintained for five (5) years, and shall continue to be available for five (5) years after the expiration of this Agreement, except as otherwise provided in this Agreement. After minimum holding periods are met, Contractor will notify City ninety (90) days before destroying records. Contractor agrees that the records of any and all companies conducting operations addressed in the Agreement shall be provided or made available to City and its official 433 May 24, 2013 -93- City of Hermosa Beach representatives during normal business hours. Account histories shall be accessible to the City by computer for a minimum of five (5) years. City may review or utilize any of the records described in this section. Such records include, but are not limited to, financial, Solid Waste, CERCLA and Disposal records. 8.2.2 Financial Records Contractor shall maintain financial records relating to its operations pursuant to this Agreement separate and segregated from such records relating to its other operations. Contractor shall maintain at least the following records: • Audited financial statements for Contractor or, if a guarantee was provided, for the parent company guarantor as a whole; • Financial statements (compiled, reviewed or audited) of revenue and expense for this Agreement segregated from the other operations of Contractor (including without limitation those operations of Contractor in City and surrounding jurisdictions which are not covered by this Agreement), including a description of segregation methodology; and, • Complete descriptions of related party transactions (corporate and/or regional management fees, intercompany profits from transfer, processing or Disposal operations). 8.2.3 Solid Waste Records Contractor shall maintain and make available to the City upon request the following records relating to its operations pursuant to this Agreement: a) Customer services and Billing/City payment records; b) Records of tons Collected, processed, diverted and Disposed by waste stream (Refuse, Recycling and Green Waste), by Customer type (Cart/Can, Residential Bin, Commercial and Roll-off Box), and the Facilities (Transfer Station, MRF, or landfill) where such material was taken (Residential Bin versus Commercial Bin tonnage may be estimated based upon Container distribution or other method approved by City); 434 May 24, 2013 -94- City of Hermosa Beach c) Quantity of Recyclable Materials recovered by material type, as well as quantity of material diverted from landfills in compliance with AB 939; d) Bulky Item and special event tonnages, including tons disposed and diverted; e) Routes; f) Facilities, equipment and personnel used; g) Facilities and equipment operations, maintenance and repair; h) Number and type of Refuse, Recycling and Green Waste Containers in service by container type (Cart, Can, Bin, Roll-Off Box) and size; i) Complaints; and, j) Missed pickups. 8.2.4 CERCLA Defense and Disposal Records The City views the ability to defend against CERCLA, State Hazardous Substance Law, and related litigation as a matter of great importance. For this reason, the City regards the ability to prove where Solid Waste Collected in the City was taken for Disposal, as well as where it was not taken, to be matters of concern. The Contractor shall maintain data retention and preservation systems that can establish where Solid Waste Collected in the City was landfilled (and therefore establish where it was not landfilled) and provide a copy of disposal reports for twenty-five (25) years and the other reports required in Section 8.2.3 for five (5) years after the term during which Collection services are to be provided pursuant to this Agreement, or to provide copies of such records to the City. Contractor shall continue to retain records in accordance with Section 8.2.3 for five (5) years, and disposal records for twenty-five (25) years, after the term during which Collection services are to be provided pursuant to this Agreement. Contractor agrees to notify the City’s Risk Manager and the City Attorney at least ninety (90) days before destroying such records. This provision shall survive the expiration of the period during which Collection services are to be provided under this Agreement. 435 May 24, 2013 -95- City of Hermosa Beach 8.2.5 Other Programs' Records Records for other programs shall be tailored to specific needs. In general, they shall include: a) Plans, tasks, and milestones; and, b) Accomplishments in terms such as dates, activities conducted and numbers of participants and responses; and, c) Records relating to programs or other activities undertaken by Contractor pursuant to the Agreement that may help City to complete reporting related to the City’s sustainability and environmental objectives. 8.2.6 Audit City may conduct an audit of Contractor at any time. The scope of the audit and auditing party will be determined by City, and the scope may include, but is not limited to, compliance with terms of this Agreement, Customer service levels and Billing, fee payments, Gross Receipts, tonnage and verification of Diversion rate. Contractor will fund biennial audits. The first hauler-funded audit, to be performed following the 2014 fiscal year, will be based on the Contractor’s reports and records for fiscal year 2013/14. Contractor-funded audits will be performed every other year thereafter. Contractor will reimburse to the City the cost of such audits up to $80,000 for the first audit, and up to $50,000 for each subsequent biennial audit in 2014 dollars. The $50,000 amount in subsequent years shall be increased annually by the change in CPI identified in Section 6.4 as the change to the “all other” component. Should an audit conducted or authorized by the City disclose that fees payable by Contractor were underpaid by three percent (3%) or more, that tonnage was misreported by three percent (3%) or more, or that more than three percent (3%) of the Customers were inaccurately Billed based on the auditor’s sampling for the period under review, City may expand the scope of the audit and recover additional audit costs from the Contractor. 436 May 24, 2013 -96- City of Hermosa Beach 8.2.7 Payments and Refunds Should an audit disclose that fees payable by the Contractor were underpaid or that Customers were overcharged for the period under review, Contractor shall pay to City any underpayment of fees and/or refund to Contractor's Customers or to City, as directed by City, any overcharges within thirty (30) days following the date of the audit; reimbursement to City or Customers for underpayments and overcharg es may be limited to three (3) years. Contractor credit for overpayment of City fees shall be limited to three (3) years. Contractor shall pay interest to the City for any underpayment or overcharges at an annual rate of twelve percent (12%). Undercharges shall not be billed in arrears for more than six (6) months of service, with any remaining undercharges absorbed by Contractor. Should an audit disclose that fees were overpaid, City may credit such amounts against future fees payable by Contractor or may select another method of reimbursement. 8.3 Reports 8.3.1 Report Formats and Schedule Records shall be maintained in forms and by methods that facilitate flexible use of data contained in them to structure reports, as needed. Contractor may propose report formats that are responsive to the objectives and audiences for each report. The format of each report shall be approved by City. In addition to submitting all reports on paper, Contractor agrees to submit all reports in an electronic format approved by City, compatible with City’s software/computers at no additional charge. Reports shall be submitted within thirty (30) calendar days after the end of the reporting period. Annual reports for which a date is not otherwise specified in this Agreement shall be submitted within thirty (30) calendar days after the end of the fiscal year. If requested, Contractor’s complaint summary, described in Section 5.1.2, shall be sent to the City Manager within five (5) business days of request. All reports shall be submitted to: City Manager City of Hermosa Beach 1315 Valley Drive Hermosa Beach, California 90254 437 May 24, 2013 -97- City of Hermosa Beach 8.3.2 Monthly Reports The information listed below shall be the minimum reported: a) Solid Waste Collected by Contractor, sorted by type of Solid Waste Collected and diverted (Refuse, Recycling and Green Waste) in tons (including contamination and Diversion rates for each waste stream and Customer type), Customer type (Cart/Can, Bin and Roll-off Box) and the Facilities where the tons were processed or Disposed. b) Warning notices issued for contaminated Refuse, Recyclable Materials and Green Waste Containers. c) Narrative summary of problems encountered and actions taken with recommendations for City, as appropriate. d) Description of Contractor outreach activities and copies of promotional and public education materials sent during the month. e) Other information or reports that City may reasonably request or require. Note: Monthly fee payment statement supporting calculation of monthly fees due per Article 3 shall be submitted separately, accompanying the fee payment. 8.3.3 Annual Report The annual report shall include: a) A summary of the number of Containers in service as of December 31 by size (number of gallons, number of yards), sector (Residential Cart, Residential Can, Commercial Cart, Commercial Can, Residential Bin, Commercial Bin and Roll-off Box), service frequency, and type of service (Refuse, Recycling and Green Waste). Identify which Containers represent free City services. b) Records of tons Collected, processed, diverted and disposed by waste stream (Refuse, Recycling and Green Waste), by Customer type (Cart/Can, Bin and Roll- off Box). c) Number of routes and route hours per day by type of service as of June 30. d) General information about the Contractor and its most recent annual report. e) Other information or reports that City may reasonably request or require. 438 May 24, 2013 -98- City of Hermosa Beach f) Gross annual Billings by service sector (Cart/Can, Bin and Roll-off Box). 8.3.4 Financial Report The City may, at City’s option, request and be provided with Contractor's financial reports/statements for the most recently completed fiscal year in connection with any audit, extraordinary rate adjustment request, or verification of other information required under this Agreement. The financial statements and footnotes shall be prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) and audited, in accordance with Generally Accepted Auditing Standards (“GAAS”), by a certified public accountant (“CPA”) licensed (in good standing) to practice public accounting in the State of California as determined by the State of California Department of Consumer Affairs Board of Accountancy. The cost of preparation of the financial statements and audit shall be borne by Contractor as a direct cost of service. In addition to the above audited financial statements, Contractor shall provide to City the supplemental schedule of results of operations in the City on a compiled basis. The supplemental schedule will show Contractor’s specific revenues and expenses in connection with the operations provided for in this Agreement, separated from operations in other geographical areas. The supplemental schedule need not be audited and may be internally prepared; however, the total results of Contractor’s operations per the supplemental schedule must agree to the audited financial statements. 8.4 Reporting Adverse Information Contractor shall provide City two (2) copies (one to the City Manager, one to the City Attorney) of all reports, pleadings, applications, notifications, notices of violation, communications or other material relating in any way to Contractor’s performance of services pursuant to this Agreement, submitted by Contractor to, or received by Contractor from, the United States or California Environmental Protection Agency, CalRecycle, the Securities and Exchange Commission or any other federal, state or local agency, including any federal or state court. Copies shall be submitted to City within thirty (30) days of receipt by Contractor, or sooner if reasonably apparent that to do so is materially relevant; any responses by Contractor shall be submitted to City simultaneously with Contractor’s filing or submission of such matters with said agencies. Contractor’s routine correspondence to said agencies need not be routinely 439 May 24, 2013 -99- City of Hermosa Beach submitted to City, but shall be made available to City promptly upon City’s written request. 8.5 Right to Inspect Records City shall have the right to inspect or review the specific documents or records required expressly or by inference pursuant to this Agreement, or any other similar records or reports of Contractor or its Affiliates that City shall deem, in its sole discretion, necessary to evaluate annual reports, and Contractor's performance provided for in this Agreement. Contractor shall make all records and documents to be reviewed and inspected by City as a part of any audit or other record review conducted by City, available for City’s review, inspection and copying within five (5) days of receiving written notice from City requesting the same. 8.6 Failure to Report The refusal or failure of Contractor to file any required reports, or to provide required information to City, or the inclusion of any materially false or misleading statement or representation by Contractor in such report shall be deemed a material breach of the Agreement as described in Section 11.1 and shall subject Contractor to all remedies which are available to the City under Agreement or otherwise. 440 May 24, 2013 -100- City of Hermosa Beach ARTICLE 9 INDEMNIFICATION, INSURANCE AND BOND 9.1 Defense of Agreement Contractor agrees to, and shall timely, take all actions that are reasonably necessary to defend the validity and enforceability of this Agreement and shall pay all costs related to such defense. Contractor shall defend, indemnify, protect and hold harmless, the City, its officers, agents and employees from any and all claims, actions or proceedings to attack, set aside, void, annul or seek monetary damages resulting from an approval by the City of this Agreement. The City shall promptly notify Contractor of any such claim, action, or proceeding. The City and Contractor shall meet in good faith in an effort to come to a mutual agreement for a joint defense; provided that the City shall be entitled to select legal counsel of its choice to conduct the defense if an agreement cannot be reached. Contractor’s obligations to pay all costs, defend, indemnify, protect and hold harmless under this section shall not be altered in the event City retains separate counsel and shall also include reimbursement to City for time spent by its in- house City attorneys responding to the litigation. 9.2 Indemnification Contractor hereby agrees to and shall indemnify and hold harmless City, its elected and appointed boards, commissions, officers, employees, consultants and agents (collectively, “Indemnitees”) from and against any and all loss, liability, penalty, forfeiture, claim, demand, action, proceeding or suit in law or equity of any and every kind and description (including, but not limited to, injury to and death of any Person and damage to property, or for contribution or indemnity claimed by third parties) arising or resulting from and in any way connected with (1) the negligence or willful misconduct of Contractor, its officers, employees, agents, contractors and/or subcontractors in performing services under this Agreement; (2) the failure of Contractor, its officers, employees, agents, contractors and/or subcontractors to comply in all respects with the provisions of this Agreement, applicable laws (including, without limitation, the Environmental Laws), ordinances and regulations, and/or applicable permits and licenses; (3) the acts of Contractor, its officers, employees, agents, contractors and/or subcontractors in performing services under this Agreement 441 May 24, 2013 -101- City of Hermosa Beach for which strict liability is imposed by law (including, without limitation, the Environmental Laws). The foregoing indemnity shall apply regardless of whether such loss, liability, penalty, forfeiture, claim, demand, action, proceeding, suit, injury, death or damage is also caused in part by any of the Indemnitees’ negligence, but shall not extend to matters resulting from the Indemnitees’ sole negligence, or willful misconduct. Contractor further agrees to and shall, upon demand of City, at Contractor's sole cost and expense, defend (with attorneys acceptable to City) the Indemnitees against any claims, actions, suits in law or equity or other proceedings, whether judicial, quasi-judicial or administrative in nature, arising or resulting from any of the aforementioned events, and to reimburse City for any and all costs and expenses City incurs in providing any such defense, either before, during or after the time Contractor elects to provide such defense, including any and all costs incurred in overseeing any defense to be provided herein by Contractor. Contractor, upon demand of City, made by and through the City Attorney, shall protect City and appear in and defend the Indemnitees in any claims or actions by third parties, whether judicial, administrative or otherwise, including, but not limited to disputes and litigation over the definitions of “Solid Waste” or “Recyclable Material,” the scope of the rights granted herein, conflicts between the rights granted herein and rights asserted by other Persons, or the limits of City’s authority with respect to the grant of licenses, or agreements, exclusive or otherwise, or asserting rights under the United States or California Constitutions or any federal or state law to provide Solid Waste Handling Services in the City. THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE, SHALL BE GIVEN THE BROADEST POSSIBLE INTERPRETATION AND SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT. 9.3 Hazardous Substances Indemnification A. Without regard to any insurance coverage or requirements, and without limiting the above general indemnification obligation in any way, Contractor specifically agrees to and shall, to the maximum extent permitted by law, defend (with counsel acceptable to City), reimburse, indemnify, and hold harmless Indemnitees from and against any and all claims, actions, liabilities, damages, demands, judgments, losses, costs, liens, expenses, suits, actions, attorneys' fees, consultant fees, penalties and any and all other 442 May 24, 2013 -102- City of Hermosa Beach losses, damages, fees and expenses of whatever kind or nature ("Claims") (including but not limited to response costs, investigative costs, assessment costs, monitoring costs, treatment costs, cleanup costs, removal costs, remediation costs, and similar costs, damages and expenses) that arise out of, or are alleged to arise out of, or in any way relate to any action, inaction or omission of Contractor that: 1. results in any demand, claim, notice, order, or lawsuit, asserting that any Indemnitee is liable, responsible or in any way obligated to investigate, assess, monitor, study, test, treat, remove, remediate, or otherwise clean up, any Hazardous Contaminant (as defined herein); or 2. relates to material Collected, transported, Recycled, processed, treated or Disposed of by Contractor. B. Contractor’s obligations pursuant to this section shall apply, without limitation, to: 1. any Claims brought pursuant to or based on the provisions of any Environmental Law; 2. any Claims based on, or arising out of, or alleged to be arising out of the ownership, use, lease, sale, design, construction, maintenance or operation of Contractor of any Facility; 3. any Claims based on or arising out of or alleged to be arising out of the marketing, sale, distribution, storage, transportation, Disposal, processing or use of any materials recovered by Contractor; 4. any Claims based on or arising out of, or alleged to be arising out of, any breach of any express or implied warranty, representation or covenant arising out of or in connection with this Agreement. C. The foregoing indemnity and defense obligations shall apply irrespective of the negligence or willful misconduct of Contractor or any Affiliate of Contractor. D. For purposes of this section, the term "Hazardous Contaminant" shall mean any Hazardous Substance, any Hazardous Waste, any crude oil or refined or unrefined petroleum product or any fraction or derivative thereof; and any asbestos or asbestos- containing material. The term "Hazardous Contaminant" shall also include any and all 443 May 24, 2013 -103- City of Hermosa Beach amendments to any referenced statutory or regulatory provisions made before or after the date of execution of this Agreement. E. THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE, SHALL BE GIVEN THE BROADEST POSSIBLE INTERPRETATION AND SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT. 9.4 AB 939 Indemnification and Guarantee A. Contractor agrees to indemnify and hold harmless City from and against all fines and/or penalties imposed by CalRecycle in the event the source reduction and Recycling goals or any other requirement of AB 939 are not met by City with respect to the waste stream Collected under this Agreement. B. Contractor warrants and represents that it is familiar with City's waste characterization study as set forth in City's Source Recovery and Recycling Element (“SRRE”), and that it has the ability to and will provide sufficient programs and services to ensure City will meet or exceed the Diversion requirements (including, without limitation, amounts of Solid Waste to be diverted, time frames for Diversion, and any other requirements) set forth in AB 939, with respect to that portion of the Solid Waste generated in City that is the subject of this Agreement. 9.5 Insurance Contractor shall procure and maintain during the entire Term of this Agreement the following types of insurance, and shall maintain the following minimum levels of coverage, which shall apply to any claims which may arise from or in connection with Contractor’s performance hereunder or the actions or inactions of any of Contractor’s officers, agents, representatives, employees, or subcontractors in connection with Contractor’s performance. The insurance requirements hereunder in no way limit Contractor’s various defense and indemnification obligations, or any other obligations as set forth herein. A. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. The most recent editions of Insurance Services Office Commercial General Liability coverage ("occurrence" form CG 00 01). 444 May 24, 2013 -104- City of Hermosa Beach 2. The most recent editions of Insurance Services Office form number CA 00 01 covering Automobile Liability, code 1 "any auto" and endorsement CA 00 25. 3. Workers' Compensation insurance as required by the Labor Code of the State of California and Employers Liability insurance. 4. Pollution and/or Environmental Impairment Liability Insurance B. Minimum Limits of Insurance. Contractor shall maintain in force for the term of this Agreement limits no less than: 1. Comprehensive General Liability: Five Million Dollars ($5,000,000) limit aggregate and Five Million Dollars ($5,000,000) limit per occurrence for bodily injury, Personal injury and property damage. 2. Automobile Liability: Five Million Dollars ($5,000,000) limit aggregate and Five Million Dollars ($5,000,000) single limit per accident for bodily injury and property damage. 3. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California and Employers Liability limits of One Million Dollars ($1,000,000) per accident, One Million Dollars ($1,000,000) policy limit for bodily injury or disease; One Million Dollars ($1,000,000) per each employee bodily injury or disease. 4. Pollution and/or Environmental Impairment Liability: Three Million Dollars ($3,000,000) each occurrence/Ten Million Dollars ($10,000,000) policy aggregate covering liability arising from the release of waste materials and/or irritants, contaminants or pollutants. Contractor shall ensure that such coverage shall, if commercially available, without involvement of City, automatically broaden in its form of coverage to include legislated changes in the definition of waste materials and/or irritants, contaminants or pollutants. The policy shall stipulate this insurance is primary and no other insurance carried by City will be called upon to contribute to a loss suffered by Contractor hereunder and waive subrogation against City and other additional insureds. 445 May 24, 2013 -105- City of Hermosa Beach C. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self-insured retention’s as respects City, its officials, employees and agents; or Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. D. Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverages a) City, its elective and appointive boards, commissions, officials, employees, agents and volunteers are to be named as additional insureds as respects: liability arising out of activities performed by or on behalf of Contractor; products and completed operations of Contractor; Premises owned, leased or used by Contractor; or vehicles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to City, its elective and appointive boards, commissions, officials, employees, agents or volunteers. b) Contractor's insurance coverage shall be primary insurance as respects City, its elective and appointive boards, commissions, officials, employees, agents and volunteers. Any insurance or self- insurance maintained by City, its officials, elective and appointive boards, commissions, employees, agents or volunteers shall be excess of Contractor's insurance and shall not contribute with it. c) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its officials, elective and appointive boards, commissions, employees, agents or volunteers. d) Coverage shall state that Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 446 May 24, 2013 -106- City of Hermosa Beach e) The commercial general and automobile liability 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 Contractor (as the named insured) should Contractor 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. Contractor understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this Agreement. Failure by Contractor as primary insured to pay its SIR or deductible constitutes a material breach of this Agreement. Should City pay the SIR or deductible on Contractor’s behalf upon the Contractor’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 Contractor for breach of this Agreement in addition to any other damages incurred by City due to the breach. 2. Workers' Compensation and Employers Liability Coverage - The insurer shall agree to waive all rights of subrogation against City, its officials, elective and appointive boards, commissions, employees, agents and volunteers for losses arising from work performed by Contractor for City. 3. All Coverages - Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to City. E. Acceptability of Insurers. The insurance policies required by this section shall be issued by an insurance company or companies authorized to do business in the State of California and with a rating in the most recent edition of Best's Insurance Reports of size category VII or larger and a rating classification of A or better. F. Verification of Coverage. Contractor shall furnish City with certificates of insurance and with original endorsements affecting coverage required by this clause. Such certificates shall show the type and amount of coverage, effective dates and dates 447 May 24, 2013 -107- City of Hermosa Beach of expiration of policies, and shall have all required endorsements. The certificates and endorsements for each insurance policy are to be signed by a Person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms provided by or acceptable to City and are to be received and approved by City before work commences. City reserves the right to require complete, certified copies of all required insurance policies at any time. Renewal certificates will be furnished periodically to City to demonstrate maintenance of the required coverage throughout the Term. G. Companies and Subcontractors. Contractor shall include all companies and subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each contractor and subcontractor. All coverages for companies and subcontractors shall be subject to all of the requirements stated herein. H. Required Endorsements 1. The Workers' Compensation policy shall contain an endorsement in substantially the following form: "Thirty (30) days (or ten (10) days in the event of cancellation for non- payment) prior written notice by certified mail, return receipt requested, shall be given to City in the event of cancellation, reduction in coverage, or non-renewal of this policy. Such notice shall be sent to: City Manager City of Hermosa Beach 1315 Valley Drive Hermosa Beach, California 90254 2. The Comprehensive General Liability policy shall contain endorsements in substantially the following form: a) "Thirty (30) days (or ten (10) days in the event of cancellation for non-payment) prior written notice shall be given to City in the event of cancellation, reduction in coverage, or non-renewal of this policy. Such notice shall be sent to: City Manager City of Hermosa Beach 448 May 24, 2013 -108- City of Hermosa Beach 1315 Valley Drive Hermosa Beach, California 90254 b) "Contractor agrees to endorse the third party general liability coverage required herein to include as additional insureds City of Hermosa Beach, its officials, employees and agents, using standard ISO endorsement No. CB 2010 with an edition date of 1985, or equivalent provisions as determined acceptable by the Office of the City Attorney for the City of Hermosa Beach in its sole discretion. Contractor also agrees to require all contractors, subcontractors and anyone else involved in any way with the project contemplated by this agreement, to do likewise." c) "This policy shall be considered primary insurance as respects any other valid and collectible insurance maintained by City, including any self-insured retention or program of self-insurance, and any other such insurance shall be considered excess insurance only." d) "Inclusion of City as an insured shall not affect City's rights as respects any claim, demand, suit or judgment brought or recovered against Contractor. This policy shall protect Contractor and City in the same manner as though a separate policy had been issued to each, but this shall not operate to increase Contractor's liability as set forth in the policy beyond the amount shown or to which Contractor would have been liable if only one party had been named as an insured." e) “The City, as additional insured, shall be permitted to satisfy the self-insured retention (“SIR”) and/or deductible of the policy in lieu of the Contractor (as the named insured) should Contractor fail to pay the SIR or deductible requirements. “ I. Other Insurance Requirements 1. In the event any services are delegated to another company or subcontractor, Contractor shall require such company or subcontractor to provide statutory workers' compensation insurance and employer's liability insurance for all of the company’s or subcontractor's employees 449 May 24, 2013 -109- City of Hermosa Beach engaged in the work in accordance with this Section 9.5. The liability insurance required by this Section 9.4 shall cover all companies or subcontractors or the companies or subcontractors must furnish evidence of insurance provided by it meeting all of the requirements of this Section 9.5. 2. Contractor shall comply with all requirements of the insurers issuing policies. The carrying of insurance shall not relieve Contractor of any obligation under this Agreement. If any claim exceeding the amount of any deductibles or self-insured reserves is made by any third Person against Contractor or any company or subcontractor on account of any occurrence related to this Agreement, Contractor shall promptly report the facts in writing to the insurance carrier and to City. If Contractor fails to procure and maintain any insurance required by this Agreement, City may take out and maintain, at Contractor's expense, such insurance as it may deem proper and deduct the cost thereof from any moneys due Contractor. 9.6 Faithful Performance Bond Concurrently with execution of this Agreement, Contractor shall deliver to City a performance bond in the sum of the amount of Five Hundred Thousand Dollars ($500,000), similar to the form provided in Exhibit 6, which secures the faithful performance of this Agreement, including, without limitation, payment of any penalty and the funding of any work to cure a breach of this Agreement. The bond shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his or her power of attorney. 9.7 Forfeiture of Performance Bond In the event Contractor shall for any reason become unable to, or fail in any way to, perform as required by this Agreement, City may declare a portion or all of the performance bond which is necessary to recompense and make whole the City forfeited to the City. Upon partial or full forfeiture of the performance bond, Contractor shall restore the performance bond to its face amount within thirty (30) days of the City’s declaration. Failure to restore the performance bond to its full amount within thirty (30) days shall be a material breach of the Agreement. 450 May 24, 2013 -110- City of Hermosa Beach 9.8 Performance Security Beyond Service Term Some Agreement requirements extend beyond the Term and other requirements, such as minimum Diversion rates per Section 4.2.5, will not be substantiated until after the final service date. Therefore, Contractor shall not terminate the Performance Bond, and will renew them to ensure continuous availability to the City, until receiving a written release from the City. The Performance Bond will automatically expire at the end of twenty-four (24) months after the end of the Term, unless City has notified Contractor in writing as to a specific contractual area of concern yet to be resolved, instructing Contractor to retain all or a portion of the Performance Bond. Neither permission from the City to discontinue holding the Performance Bond, nor permitted expiration after twenty-four (24) months, shall relieve Contractor of payments to the City that may be due, or may become due. 451 May 24, 2013 -111- City of Hermosa Beach ARTICLE 10 CITY'S RIGHT TO CONTRACT WITH THIRD PARTIES TO PERFORM FRANCHISED SERVICES City may contract with another Solid Waste enterprise to Collect and transport Solid Waste in the event Contractor for any reason (except as provided below regarding Force Majeure) refuses or is unable to Collect Solid Waste for a period of more than forty- eight (48) hours. City must provide twenty-four (24) hours prior written notice to Contractor during such time before contracting with another solid waste enterprise. In such event Contractor must identify sources from which such substitute solid waste services are immediately available and reimburse City for all of its expenses for such substitute services during period in which Contractor does not provide Collection and transportation services required by this Agreement. 452 May 24, 2013 -112- City of Hermosa Beach ARTICLE 11 DEFAULT, REMEDIES AND LIQUIDATED DAMAGES 11.1 Events of Default All provisions of this Agreement to be performed by Contractor are considered material. Each of the following (by way of example and not as an exhaustive list) shall constitute an event of default by the Contractor. A. Fraud or Deceit or Misrepresentation. If the Contractor engages in, or attempts to practice, any fraud or deceit upon City or makes a misrepresentation regarding material information to City. B. Insolvency or Bankruptcy. If Contractor becomes insolvent, unable, or unwilling to pay its debts, files a bankruptcy petition or takes steps to liquidate its assets. C. Failure to Maintain Insurance Coverage and Valid Permits and Licenses. If Contractor fails to provide or maintain in full force and effect the Workers' Compensation, liability, or indemnification coverage, as well as valid permits and licenses as required by this Agreement. D. Violations of Regulation. If Contractor violates any orders or filings of any regulatory body having jurisdiction over Contractor relative to this Agreement, provided that Contractor may contest any such orders or filings by appropriate proceedings conducted in good faith, in which case no breach of the Franchise and this Agreement shall be deemed to have occurred until a final decision adverse to the Contractor is entered. E. Failure to Pay. If Contractor fails to make any payments required under this Agreement and/or refuses to provide City, within ten (10) days of the demand, with required information, reports, and/or records in a timely manner as provided for in the Agreement. F. Failure to Cooperate with Audits. Failure to complete, perform or cooperate with any audit as described by this Agreement. 453 May 24, 2013 -113- City of Hermosa Beach G. Failure to Submit Reports or Documentation. Failure to complete or to provide required reports or documents to City as required by this Agreement. H. Acts or Omissions. A. Any act or omission by Contractor relative to the services provided under this Agreement which violates the terms, conditions, or requirements of this Agreement, or AB 939, or any law, statute, ordinance, order, directive, rule, or regulation issued pursuant to AB 939 shall constitute a default by Contractor. Any failure to correct or remedy any such violation within the time set in the written notice of the violation or, if Contractor cannot reasonably correct or remedy the breach within the time set forth in such notice, if Contractor should fail to commence to correct or remedy such violation within the time set forth in such notice and diligently effect such correction or remedy thereafter, shall constitute a default by Contractor. B. Any situation in which Contractor or any of its officers, directors or employees is found guilty of any crime related to the performance of this Agreement, or of any crime related to anti-trust activities, illegal transport or Disposal of hazardous or toxic materials, or bribery of public officials shall constitute a default by Contractor. The term “found guilty” shall be deemed to include any judicial determination that Contractor or any of Contractor’s officers, directors or employees is guilty as well as any admission of guilt by Contractor or any of Contractor’s officers, directors or employees including, but not limited to, the plea of “guilty”, “nolo contendere”, “no contest”, and “guilty to a lesser charge.” I. False or Misleading Statements. Any representation or disclosure made to City by Contractor in connection with or as an inducement to entering into this Agreement, or any future amendment to this Agreement, which proves to be false or misleading in any material respect as of the time such representation or disclosure is made, whether or not any such representation or disclosure appears as part of this Agreement. J. Attachment. The seizure of, attachment of, or levy on, the operating equipment of Contractor, including, without limits, its equipment, maintenance or office facilities, or any part thereof. K. Suspension or Termination of Service. If Contractor ceases to provide all or a portion of the Collection, processing or Recycling services, or any other Solid Waste Handling Services as required under this Agreement (including, without limitation, 454 May 24, 2013 -114- City of Hermosa Beach failure to provide service due to labor unrest including strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action, unless all requirements of Section 11.4 are met) for two (2) or more consecutive days. L. Failure to Provide Assurance of Performance. If Contractor fails to provide reasonable assurances of performance as required under Section 11.6. M. Commingling of Recyclables With Refuse / Landfilling of Recyclables. If Contractor empties Containers of properly set out Recyclable Materials or Green Waste into a Refuse load, or transports Recyclable Materials or Green Waste to a landfill or other location at which the material will not be diverted from landfilling (with the exception of Green Waste used as alternative daily cover provided full Diversion credit is received). N. Failure to Meet Section 4.2.5 Diversion Goal. Failure to meet the minimum recycling requirements identified in Section 4.2.5 for two (2) consecutive calendar years. Contractor shall have five (5) business days from the time it is given notification by City to cure any default arising under subsections E, F, G, J, K, L and M provided, however, that City shall not be obligated to provide Contractor with a notice and cure opportunity if Contractor has committed the same or similar breach within a twenty- four (24) month period. It is expressly understood that Contractor is not entitled to receive notice of default, or to cure such default, with respect to those matters listed in subsections A, B, C, D, H, I, and N above. 11.2 Right to Terminate Upon Default and Right to Specific Performance If Contractor commits a material breach included in Section 11.1 above (and, if permitted to cure, does not cure it within the five days), City shall be entitled to unilaterally terminate this Agreement or impose other such sanctions (which may include financial sanctions, temporary suspensions or any other conditions it deems appropriate short of termination) as it shall deem proper. Should City decide to terminate this Agreement upon a default by Contractor, City shall have the right to do so upon giving ten (10) days’ notice to Contractor, and shall not be required to take any further action (such as holding any hearing, bringing any suit or taking any other action.) 455 May 24, 2013 -115- City of Hermosa Beach City may seek to revoke or suspend this Agreement for violation of any other provisions of this Agreement in accordance with the Hermosa Beach Municipal Code Section 8.12.090-130. City's rights to terminate this Agreement and contract with third parties to perform services are not exclusive, and City's termination of this Agreement shall not constitute an election of remedies. Instead, such remedies shall be in addition to any and all other legal and equitable rights and remedies which City may have. By virtue of the nature of this Agreement, the urgency of timely continuous and high- quality service, the time required to effect alternative service, and the rights granted by City to Contractor, the remedy of damages for a breach hereof by Contractor is inadequate and City shall be entitled to seek injunctive relief and/or specific performance of any breach of this Agreement. 11.3 Liquidated Damages A. General. City finds, and Contractor agrees, that as of the time of the execution of this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by City as a result of a breach by Contractor of certain specific obligations under this Agreement. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that: (i) substantial damage results to members of the public who are denied services or denied quality or reliable service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Agreement to individual members of the general public for whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) that the services that are the subject of this Agreement might be available at substantially lower costs than alternative services and the monetary loss resulting from denial of services or denial of quality or reliable services is impossible to calculate in precise monetary terms; and (iv) the termination of this Agreement for such specific breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches. B. Service Performance Standards; Liquidated Damages for Failure to Meet Standards. The Parties further acknowledge that consistent, reliable Solid Waste Handling Service is of utmost importance to City and that City has considered and 456 May 24, 2013 -116- City of Hermosa Beach relied on Contractor's representations as to its quality of service commitment in entering this Agreement with it. The Parties further recognize that some quantified standards of performance are necessary and appropriate to ensure consistent and reliable service and performance. The Parties further recognize that if Contractor fails to achieve the performance standards, or fails to submit required documents in a timely manner, City and its residents will suffer damages and that it is and will be impractical and extremely difficult to ascertain and determine the exact amount of damages which City will suffer. Therefore, without prejudice to City's right to treat such breaches as an event of default under this Article 11, the Parties agree that the following liquidated damage amounts represent a reasonable estimate of the amount of such damages for such specific breaches, considering all of the circumstances existing on the date of this Agreement, including the relationship of the sums to the range of harm to City that reasonably could be anticipated and the anticipation that proof of actual damages would be costly or impractical. In placing their initials at the places provided, each party specifically confirms the accuracy of the statements made above and the fact that each party has had ample opportunity to consult with legal counsel and obtain an explanation of the liquidated damage provisions at the time that the Agreement was made. Contractor City Initial Here Initial Here Contractor agrees to pay (as liquidated damages and not as a penalty) the amounts set forth below: 1. Collection Reliability a) For each failure to commence service to a new Customer account within seven (7) days after order, which exceeds five (5) such failures per calendar year: $50.00 b) For each failure, which exceeds ten (10) such failures annually, to Collect Solid Waste from any established Customer account on the scheduled Collection day and not make up the Collection within the time allotted per Section 4.6.1.3: $50.00 457 May 24, 2013 -117- City of Hermosa Beach c) For each failure to Collect Solid Waste, which has been properly set out for Collection, from the same Customer on two (2) consecutive scheduled pickup days: $50.00 2. Collection Quality a) For each occurrence of failure to properly return empty Containers to avoid pedestrian or vehicular traffic impediments or to place Containers upright which exceeds ten (10) such occurrences per calendar year: $25.00 b) For each occurrence in violation of the City’s noise ordinance which exceeds ten (10) per calendar year: $150.00 c) For each occurrence of Collecting Solid Waste during unauthorized hours which exceeds five (5) such occurrences per calendar year: $150.00 d) For each failure to clean up Solid Waste spilled from Solid Waste Containers within ninety (90) minutes which exceeds ten (10) such failures per calendar year: $150.00 3. Customer Responsiveness a) For each failure to initially respond to a Customer complaint within one (1) business day in accordance with Section 5.1.2, and for each additional day in which the complaint is not addressed, which exceeds five (5) per calendar year: $100.00 b) For each failure to process Customer complaints as required by Article 5, Section 5.1.2, which exceeds five (5) per calendar year: $100.00 c) For each failure to remove graffiti from Containers, or to replace with Containers bearing no graffiti, within twenty-four (24) hours (except Sundays and holidays) of request from City or Customer, which exceeds five (5) per calendar year: $ 50.00 per day d) For each failure to repair or replace a damaged or missing Container within three (3) business days of request from City or Customer, which exceeds five (5) per calendar year: $ 50.00 per day 458 May 24, 2013 -118- City of Hermosa Beach e) For each failure to process a claim for damages within thirty (30) days from the date submitted to Contractor: $100.00 f) For each additional thirty (30) day increment of time in which Contractor has failed to resolve a claim for damages within thirty (30) days from the claim date: $100.00 g) For each failure to respond on-site to an emergency within one hour of notification by City: $100.00 4. Diversion Efforts a) For each calendar year in which Contractor fails to provide support to the City within thirty (30) days of year-end, documenting that it diverted at least the minimum tonnage required by Section 4.2.5 under this Agreement (beginning with the partial year July to Dec. 2013 as the first applicable period): $25 for each ton below tonnage level necessary to meet Diversion goal b) For every Recycling or Green Waste Container Collected as Refuse without issuing a red tag or other warning per Section 4.2.3 which exceeds ten (10) failures per calendar year: $25 per Cart 5. Timeliness of Submissions to City Any report shall be considered late until such time as a correct and complete report is received by City. For each calendar day a report is late, the daily liquidated damage amount shall be: i) Monthly Reports: $50 per day ii) Annual Reports: $100 per day 6. Accuracy of Billing Each Customer invoice that is not prepared in accordance with the City’s approved rate schedule, or includes charges not identified on the City-approved rate schedule or otherwise approved in writing by the City, in excess of ten (10) invoices annually, and that are not accurately corrected in the next Billing run: 459 May 24, 2013 -119- City of Hermosa Beach $25 per invoice, not to exceed $2,500 per Billing run 7. Cooperation with Service Provider Transition a) For each day routing information requested by City Manager in accordance with Section 12.8 is received after City-established due dates, both for preparation of a request for proposals and for new service provider’s implementation of service : $1,000/day b) For each day delivery of keys, access codes, remote controls, or other means of access to Solid Waste Containers is delayed beyond one (1) day prior to new service provider servicing Customers with access issues, as described in Section 12.8: $1,000/day c) For delay in not meeting the requirements contained in Sections 7.3 and 12.8 in a timely manner, in addition to the daily liquidated damages for breach under 7(a) and 7(b) above, liquidated damages of: $10,000 City Manager may determine the occurrence of events giving rise to liquidated damages through the observation of its own employees or representative or investigation of Customer complaints. Prior to assessing liquidated damages, City Manager shall give Contractor notice of its intention to do so. The notice will include a brief description of the incident(s)/non - performance. Contractor may review (and make copies at its own expense) all information in the possession of City Manager relating to incident(s)/non-performance. Contractor may, within ten (10) days after receiving the notice, request a meeting with City Manager. Contractor may present evidence in writing and through testimony of its employees and others relevant to the incident(s)/non-performance. City Manager will provide Contractor with a written explanation of its determination on each incident(s)/non-performance prior to authorizing the assessment of liquidated damages. The decision of City Manager shall be final. C. Amount. City Manager may assess liquidated damages for each calendar day or event, as appropriate, that Contractor is determined to be liable in accordance with this Agreement. 460 May 24, 2013 -120- City of Hermosa Beach D. Timing of Payment. Contractor shall pay any liquidated damages assessed by City Manager within ten (10) days after they are assessed. If they are not paid within the ten (10) day period, City may proceed against the performance bond required by the Agreement or find Contractor in default and terminate this Agreement pursuant to Section 11.2, or both. 11.4 Excuse from Performance 11.4.1 Force Majeure The Parties shall be excused from performing their respective obligations hereunder in the event they are prevented from so performing by reason of floods, earthquakes, other natural disasters, war, civil insurrection, riots, acts of any government (including judicial action), and other similar catastrophic events which are beyond the control of and not the fault of the party claiming excuse from performance hereunder. 11.4.2 Labor Unrest Labor unrest, including but not limited to strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action conducted by the Contractor's employees or directed at the Contractor will be considered an excuse from performance to the extent that Contractor meets the terms of this Section 11.4. Notwithstanding other remedies to which the City shall be entitled under this Agreement in event of failure to perform, in the event of Contractor’s failure to perform, or anticipated failure to perform, due to labor unrest, Contractor shall: 1) Provide a contingency plan to the City Manager within ninety (90) days of the execution of this Agreement demonstrating how services will be provided during the period of labor unrest. The contingency plan is subject to City approval, and Contractor shall amend the plan to meet City requirements, including reasonably demonstrating how City’s basic Collection and sanitary needs will be met to the City’s satisfaction. Plan shall address, at a minimum, the priority of Collection by customer type (residents, hospitals, restaurants, nursing homes, etc.) and waste streams, additional Collection options to be provided (drop-off sites, etc.), source of additional personnel to be utilized, and detailed communications procedures to be used. 461 May 24, 2013 -121- City of Hermosa Beach 2) Notify City Manager sixty (60) days prior to the expiration of its drivers’ labor agreement. 3) Meet the requirements agreed to in the contingency plan. 4) Meet requirements of 11.4.3 below. Contractor shall meet all requirements under this Section or City may choose to revoke this excuse from performance offered under this Agreement and may choose to use enforcement provisions under this Agreement, including Sections 11.1, 11.2 and 11.3, in which case Contractor is not excused from performance and Contractor shall be obligated to continue to provide service notwithstanding the occurrence of any or all of such events. 11.4.3 Procedures In Event of Excused Performance The party claiming excuse from performance under Section 11.4.1 or 11.4.2 shall, within two (2) days after such party has notice of such cause, give the other party notice of the facts constituting such cause and asserting its claim to excuse under this section. Throughout service disruption, Contractor shall: 1) Provide City with a minimum of daily service updates. 2) Notify Customers on a real-time basis as to alternative Collection procedures. At a minimum, Contractor shall update its website and shall provide ongoing updates to City for use on its website, and a “reverse 911” contact method to reach all possible Customers. Should enhanced contact technologies become available, Contractor shall use such methods upon approval from City. The interruption or discontinuance of the Contractor's services caused by one or more of the events excused shall not constitute a default by the Contractor under this Agreement. Notwithstanding the foregoing, however, if the Contractor is excused from performing its obligations hereunder for any of the causes listed in this section for a period of thirty (30) days or more, the City shall nevertheless have the right, in its sole discretion, to terminate this Agreement by giving ten (10) days' notice, in which case the provisions relative to contracting with third parties in Article 10 and this Article 11 will apply. 462 May 24, 2013 -122- City of Hermosa Beach 11.5 Notice, Hearing and Appeal of City Breach (A) Administrative Hearing. Should Contractor contend that City is in breach of any aspect of this Agreement, it shall give notice to the City Manager requesting an administrative hearing on the allegation. A hearing officer shall be appointed by the City Manager, and the hearing shall occur as soon as reasonably possible, or on such date as mutually agreed by the City Manager. The hearing officer shall make an advisory ruling on Contractor’s allegations, and suggest a remedy if a breach by City is determined to exist. The hearing officer’s ruling shall be advisory only. (B) Other Remedies; Claims. Contractor shall be entitled to all available remedies in law or equity for City’s breach of this Agreement; provided, however, Contractor shall not file or otherwise commence any action against City, in law or equity, in any court, until after an administrative hearing as set forth above has been completed, and a thirty (30) day period to accept the hearing officer’s decision has passed, or either City or Contractor has given timely written notice to the other that it will not accept the hearing officers decision. (C) Actions for Damages. As a prerequisite to the filing and maintenance of any action for damages by Contractor against City arising out of this Agreement, Contractor shall present a claim to City, as required by Government Code section 910 et seq, within thirty (30) days of the date of the occurrence giving rise to the claim for damages. 11.6 Assurance of Performance City may, at its option and in addition to all other remedies it may have, demand from Contractor reasonable assurances of timely and proper performance of this Agreement, in such form and substance as City may require. If Contractor fails or refuses to provide satisfactory assurances of timely and proper performance in the form and by the date required by City, such failure or refusal shall be an event of default. 463 May 24, 2013 -123- City of Hermosa Beach ARTICLE 12 MISCELLANEOUS PROVISIONS 12.1 Relationship of Parties The Parties intend that Contractor shall perform the services required by this Agreement as an independent contractor engaged by City and not as an officer or employee of City, nor as a partner of or joint venture with City. No employee or agent or Contractor shall be or shall be deemed to be an employee or agent of City. Except as expressly provided herein, Contractor shall have the exclusive control over the manner and means of conducting the Solid Waste Handling Services performed under this Agreement, and all Persons performing such services. Contractor shall be solely responsible for the acts and omissions of its officers, employees, Affiliates, contractors, subcontractors and agents. Neither Contractor nor its officers, employees, Affiliates, contractors, subcontractors and agents shall obtain any rights to retirement benefits, workers' compensation benefits, or any other benefits which accrue to City employees by virtue of their employment with City. 12.2 Compliance with Law In providing the services required under this Agreement, Contractor shall at all times, at its sole cost, comply with all applicable laws and regulations of the United States, the State of California, and any federal, state, regional or local administrative and regulatory agencies, now in force and as they may be enacted, issued or amended, including but not limited to the payment of prevailing wage, if applicable. 12.3 Governing Law This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California. 12.4 Jurisdiction Except for those matters where Federal Courts have exclusive jurisdiction, any lawsuits between the Parties arising out of this Agreement shall be brought and concluded in the courts of the State of California, which shall have exclusive jurisdiction over such lawsuits. 464 May 24, 2013 -124- City of Hermosa Beach With respect to venue, the Parties agree that this Agreement is made in and will be performed in Los Angeles County. 12.5 Assignment Except as may be provided for in Article 10 (City's Right to Perform Service), Contractor shall not assign its rights, nor delegate, subcontract or otherwise transfer its oblig ations under this Agreement (collectively referred to as an “assignment”) to any other Person without the prior written consent of City Council. Any such assignment made without the consent of City shall be void and the attempted assignment shall constitute a material breach of this Agreement. For purposes of this section the term "assignment" shall be given the broadest possible interpretation, and shall include, but not be limited to (i) a sale, exchange or other transfer of substantially all of Contractor's assets dedicated to service under this Agreement to a third party; (ii) a sale, exchange or other transfer of outstanding common stock of Contractor to a third party provided said sale, exchange or transfer may result in a change of control of Contractor; (iii) any dissolution, reorganization, consolidation, merger, re-capitalization, stock issuance or re-issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction which results in a change of ownership or control of Contractor; (iv) any assignment by operation of law, including those resulting from mergers or acquisitions by or of Contractor of any of its Affiliates, insolvency or bankruptcy, making assignment for the benefit of creditors, writ of attachment for an execution being levied against this Agreement, appointment of a receiver taking possession of Contractor's property, or transfer occurring in the event of a probate proceeding; and (v) any combination of the foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer or change of ownership, or change of control of Contractor. Contractor acknowledges that this Agreement involved rendering a vital service to City's residents and businesses, and that City has selected Contractor to perform the services specified herein based on (1) Contractor's experience, skill and reputation for conducting its Solid Waste Handling Services in a safe, effective and responsible fashion, at all times in keeping with applicable Environmental Laws, regulations and best Solid Waste management practices, and (2) Contractor's financial resources to maintain the required equipment and to support its indemnity obligations to City under 465 May 24, 2013 -125- City of Hermosa Beach this Agreement. City has relied on each of these factors, among others, in choosing Contractor to perform the services to be rendered by Contractor under this Agreement. If Contractor requests City's consideration of and consent to an assignment, City may deny or approve such request in its sole and absolute discretion. Any request for an assignment must be approved by the City Manager, and no request by Contractor for consent to an assignment need be considered by City unless and until Contractor has met (or with respect to matters that would only occur upon completion of the assignment if approved, made reasonable assurances that it will meet) the following requirements: a) Contractor shall pay City its reasonable expenses for attorney's fees and investigation costs necessary to investigate the suitability of any proposed assignee, and to review and finalize any documentation required as a condition for approving any such assignment. An advance payment towards expenses may be requested by City prior to City consideration of any assignment request and Contractor shall be responsible to pay all costs incurred by City in considering a request for assignment, including those in excess of the aforesaid deposit amount, regardless of whether City consents to the assignment. b) Contractor shall pay a transfer fee to the City equal to one percent (1%) of the annual Gross Receipts for the most recent twelve (12) months prior to the effective date of the change of ownership, multiplied by the number of remaining years, or fraction thereof, under this Agreement. (This requirement will not be required in the event of an assignment to an Affiliate of Contractor); c) Contractor shall furnish City with audited financial statements for itself, and the proposed assignee's operations for the immediately preceding three (3) operating years. (This requirement shall not be required of an Affiliate.) d) Contractor shall furnish City with a pro-forma financial statement (income statement and balance sheet) for the proposed assignee with the projected results of operations assuming that the assignment is completed. Such pro-forma financial statement shall reflect any debt to be incurred by the assignee as part of the acquisition of Contractor’s operations. (This requirement shall not be required of an Affiliate.) 466 May 24, 2013 -126- City of Hermosa Beach e) Contractor shall furnish City with satisfactory proof: (i) that the proposed assignee has at least ten (10) years of Solid Waste management experience on a scale equal to or exceeding the scale of operations conducted by Contractor under this Agreement; (ii) that in the last five (5) years, the proposed assignee has not suffered any significant citations or other censure from any federal, state or local agency having jurisdiction over its Solid Waste management operations due to any significant failure to comply with state, federal or local Environmental Laws and that the assignee has provided City with a complete list of any such citations and censures; (iii) that the proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion; (iv) that the proposed assignee conducts its Solid Waste management practices in accordance with sound Solid Waste management practices in full compliance with all federal, state and local laws regulating the Collection and Disposal of Solid Waste including Hazardous Substances; and, (v) of any other information required by City to ensure the proposed assignee can fulfill the terms of this Agreement in a timely, safe and effective manner. Under no circumstances shall City be obliged to consider any proposed assignment by City if Contractor is in default at any time during the period of consideration. Should City consent to any assignment request, such assignment shall not take effect until all conditions relating to City’s approval have been met. 12.6 Contracting or Subcontracting Contractor shall not utilize any subcontractors, in direct interaction with City customers or City staff, for the performance of the services under this Agreement, except with the consent of the City Manager, which may be withheld or delayed at its sole and absolute discretion. 12.7 Binding on Assigns The provisions of this Agreement shall inure to the benefit to and be binding on the permitted assigns (if any) of the Parties. 12.8 Cooperation in Preparation for Termination or Expiration of Contract Prior to, and at, the end of the Term or in the event this Agreement is terminated for cause prior to the end of the Term, Contractor shall cooperate fully with City and any 467 May 24, 2013 -127- City of Hermosa Beach subsequent Solid Waste enterprise it designates to assure a smooth transition of Solid Waste Handling Services. Contractor's cooperation shall include, but not be limited to, providing route lists, Billing information and other operating records needed to service all Premises covered by this Agreement. Cooperation is required in a timely manner to assist with the City’s preparation of a request for proposals or a new agreement, as well as at the time of transition. The failure to cooperate with City following termination shall be conclusively presumed to be grounds for specific performance of this covenant and/or other equitable relief necessary to enforce this covenant. Contractor shall provide a new service provider with all keys, security codes and remote controls used to access garages and Bin enclosures. Contractor shall be responsible for coordinating transfer immediately after Contractor’s final pickups, so as not to disrupt service. Contractor shall provide City with detailed route sheets containing service names and addresses, Billing names and addresses, monthly rate and service levels (number and size of Containers and pickup days) at least ninety (90) days prior to the transition date, and provide an updated list two (2) weeks before the transition and a final list of changes the day before the transition. Contractor shall provide means of access to the new service provider at least one (1) full business day prior to the first day of Collection by another party, and always within sufficient time so as not to impede in any way the new service provider from easily servicing all Containers. 12.9 Parties in Interest Nothing in this Agreement, whether express or implied, is intended to confer any rights on any Persons other than the Parties to it and their representatives, successors and permitted assigns. 12.10 Waiver The waiver by either party of any breach or violation of any provisions of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach of violation of the same or any other provision. The subsequent acceptance by either Party of any moneys which become due hereunder shall not be deemed to be a waiver of any pre-existing or concurrent breach or violation by the other Party of any provision of this Agreement. 468 May 24, 2013 -128- City of Hermosa Beach 12.11 Contractor's Investigation Contractor has made an independent investigation (satisfactory to Contractor) of the conditions and circumstances surrounding the Agreement and the work to be performed by it. 12.12 Condemnation City fully reserves the rights to acquire Contractor's property utilized in the performance of this Agreement, by purchase or through the exercise of the right of eminent domain. This provision is additive, and not intended to alter the rights of the Parties set forth in Article 10. 12.13 Notice All notices, demands, requests, proposals, approvals, consents and other communications which this Agreement requires, authorizes or contemplates shall be in writing and shall either be personally delivered to a representative of the Parties at the address below or be deposited in the United States mail, first class postage prepaid, addressed as follows: If to City: City Manager City of Hermosa Beach 1315 Valley Drive Hermosa Beach, California 90254 If to Contractor: Gary Clifford Chief Operating Officer Athens Services 14048 Valley Boulevard City of Industry, California 91746 A copy of such communications shall also be electronically mailed to the recipient party. The sending party shall confirm the current e-mail address of the City Manager or Chief Operating Officer at the time of notice. The address to which communications may be delivered may be changed from time to time by a written notice given in accordance with this section. 469 May 24, 2013 -129- City of Hermosa Beach Notice shall be deemed given on the day it is personally delivered or, if mailed, three (3) days from the date it is deposited in the mail. 12.14 Representatives of the Parties References in this Agreement to the "City" shall mean the City Council and all actions to be taken by City shall be taken by the City Council except as expressly provided herein. The City Council may delegate, in writing, authority to the City Manager, and/or to other City employees and may permit such employees, in turn, to delegate in writing some or all of such authority to subordinate employees. Contractor may rely upon actions taken by such delegates if they are within the scope of the authority so delegated to them. Contractor shall, by the Effective Date, designate in writing a responsible officer who shall serve as the representative of Contractor in all matters related to the Agreement and shall inform City in writing of such designation and of any limitations upon his or her authority to bind Contractor. City may rely upon action taken by such designated representative as actions of Contractor unless they are outside the scope of the authority expressly delegated to him/her by Contractor as communicated to City. 12.15 City Free to Negotiate with Third Parties City may investigate all options for the Collection, transporting, Recycling, processing and Disposal of Solid Waste for periods during which this Agreement has expired or been terminated. Without limiting the generality of the foregoing, City may solicit proposals from Contractor and from third parties for the provision of Solid Waste Handling Services which are the subject of this Agreement, including without limitation Collection services, Disposal services, Recycling services, Green Waste services and processing, and any combination thereof, and may negotiate and execute agreements for such services which will take effect upon the expiration or earlier termination of this Agreement pursuant to Section 11.1 or otherwise. 12.16 Compliance with Municipal Code Contractor shall comply with those provisions of the municipal code of City which are applicable, and with any and all amendments to such applicable provisions during the Term of this Agreement. 470 May 24, 2013 -130- City of Hermosa Beach 12.17 Privacy Contractor shall strictly observe and protect the rights of privacy of Customers. Information identifying individual Customers or the composition or contents of a Customer's waste stream shall not be revealed to any Person, governmental unit, private agency, or company, unless upon the authority of a court of law, by statute, or upon valid authorization of the Customer. This provision shall not be construed to preclude Contractor from preparing, participating in, or assisting in the preparation of waste characterization studies or waste stream analyses which may be required by AB 939. This provision shall not apply to reports or records provided to City pursuant to this Agreement. 12.18 Proprietary Information, Public Records The City acknowledges that a number of the records and reports of Contractor are proprietary and confidential. Contractor is obligated to permit City inspection of its records on demand and to provide copies to City where requested. City will endeavor to maintain the confidentiality of all proprietary information provided by Contractor. Notwithstanding the foregoing, any documents provided by Contractor to City that are public records may be disclosed pursuant to a proper public records request. 12.19 Entire Agreement This Agreement contains the entire integrated agreement and understanding concerning the subject matter herein and supersedes and replaces any prior negotiations, promises, proposals (including Contractor’s Proposal), and agreements between the Parties, whether written or oral. The Parties acknowledges this document has been executed with the consent and upon the advice of counsel. Each of the Parties acknowledges that no Party or agent or attorney of any other party has made any promise, representation, or warranty, express or implied, not contained in this Agreement, to induce the other Party to execute this instrument. 12.20 Section Headings The article headings and section headings in this Agreement are for convenience of reference only and are not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions. 471 May 24, 2013 -131- City of Hermosa Beach 12.21 References to Laws and Other Agreements All references in this Agreement to laws shall be understood to include such laws as they may be subsequently amended or re-codified, unless otherwise specifically provided. 12.22 Interpretation This Agreement, including the Exhibits attached hereto, shall be interpreted and construed reasonably and neither for nor against either Party, regardless of the degree to which either Party participated in its drafting. 12.23 Agreement This Agreement may not be modified or amended in any respect except by a writing signed by the Parties. 12.24 Severability If any non-material provision of this Agreement is for any reason deemed to be invalid and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 12.25 Exhibits Each of Exhibits identified as Exhibit "1" through "12" is attached hereto and incorporated herein and made a part hereof by this reference. 12.26 Attorneys’ Fees If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to recover its reasonable attorney’s fees and costs. Attorneys’ fees shall include attorney’s fees on any appeal, and in addition a Party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to 472 May 24, 2013 -132- City of Hermosa Beach have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. IN WITNESS WHEREOF, City and Contractor have executed this Agreement as of the day and year first above written. CITY OF HERMOSA BEACH ("City") DATED: _______________________________ DATED: _______________________________ CITY OF HERMOSA BEACH Arakelian Enterprises Inc. dba Athens Services By: ____________________________________ By: ____________________________________ Patrick Bobko Ron Arakelian Jr. Mayor Chairman of the Board Approved as to form: By: ____________________________________ By: ____________________________________ Michael Jenkins Michael Arakelian City Attorney Secretary/Treasurer ATTEST: _______________________________________ Elaine Doerfling City Clerk 473 May 24, 2013 City of Hermosa Beach EXHIBIT 1 RESERVED 474 May 24, 2013 2 - 1 City of Hermosa Beach EXHIBIT 2 INITIAL MAXIMUM RATES Following are the rates for July 1, 2013 through June 30, 2014: Monthly Residential Cart Service Rates (Option 1: Cart System) Standard Service Includes one refuse cart and one or more recycling carts. Green waste carts are provided on a subscription basis. Cart Size: 20-gallon* 35-gallon* 64-gallon* 96-gallon* Standard Service – based upon refuse cart size $5.69 $6.69 $10.69 $14.69 Additional Refuse Cart – above one n/a $4.00 $6.00 $8.00 Additional Recycling Cart $0 $0 $0 $0 Each Yard Waste Cart n/a $3.70 $4.20 $4.70 Alternative “Can” Service (if carts not feasible) Equivalent cart rates based on capacity Active Military Rate Reduction – above rates reduced by 25% Senior Low Income Discount - above rates (excluding 20-gallon rate) reduced by 10% Other Cart Rates and Services (Charged in Addition to Monthly Cart Service Rates) Walk-Out Service – upon request $4.00 Walk-Out Service – authorized disabled customers No charge Additional Special Overage Pickup for Automated Cart Customers (in excess of six pickups per year) $5 per pickup Additional Bulky Item pickups (in excess of two free pickups per dwelling unit per year) $30.00 per pickup Cart Exchange (in excess of free exchanges to be provided) $15 per request Returned Check (“NSF”) Fee (applicable to all customers) Credit Card Declined Fee (applicable to all customers) Optional HHW Door-to-Door Collection – per dwelling unit $0.45/month *Including all City fees, including $0.25/home/month AB 939 fee. 475 May 24, 2013 2 - 2 City of Hermosa Beach EXHIBIT 2 INITIAL MAXIMUM RATES (continued) Following are the rates for July 1, 2013 through June 30, 2014: Monthly Bin Rates(1) Container Size Pickups per week 1 2 3 4 5 6 7 Extra Empty Refuse 32-gallon cart (2) $23.33 $40.87 $57.45 $74.99 $91.56 $109.10 $136.29 64-gallon cart (2) $37.02 $64.39 $90.80 $117.2 $143.61 $170.98 $211.86 96-gallon cart (2) $50.69 $84.98 $119.26 $153.55 $187.83 $222.12 $256.40 1 yard bin $69.35 $104.56 $140.84 $176.06 $210.21 $246.49 $288.10 $40.50 1.5 yard bin $77.36 $117.38 $167.00 $197.42 $236.37 $315.86 $369.75 $40.50 2 yard bin $93.91 $145.14 $197.45 $248.69 $292.46 $337.30 $393.87 $40.50 3 yard bin 109.92 $170.77 $230.56 $291.41 $351.19 $410.98 $482.50 $52.07 4 yard bin $132.33 $204.93 $309.53 $351.20 $423.80 $497.46 $581.79 $52.07 6 yard bin $166.51 $258.34 $351.24 $443.08 $535.98 $627.82 $734.59 $52.07 8 yard bin $207.07 $322.40 $434.53 $545.59 $652.39 $764.52 $895.85 $61.78 Recycling 18-gallon cart (3) $7.41 n/a 32-gallon cart (3) $11.58 $20.27 $28.47 $37.15 $45.36 $54.04 $68.55 64-gallon cart (3) $18.34 $31.82 $44.87 $57.90 $70.93 $84.44 $104.70 96-gallon cart (3) $25.09 $41.98 $58.87 $75.75 $92.64 $109.53 $126.42 1 yard bin $30.88 $46.32 $62.24 $77.68 $92.64 $108.56 $126.90 1.5 yard bin $34.26 $51.63 $73.34 $86.37 $103.26 $138.48 $162.12 2 yard bin $41.50 $63.69 $86.37 $108.56 $127.38 $146.68 $171.29 3 yard bin $48.25 $74.31 $99.88 $125.93 $151.51 $177.08 $207.96 4 yard bin $57.90 $88.78 $134.14 $151.02 $181.90 $213.27 $249.45 Locking Bin Service $5.79 $5.79 $5.79 $5.79 $5.79 $5.79 $5.79 Scout Truck Service $11.57 $11.57 $11.57 $11.57 $11.57 $11.57 $11.57 Push-Out Service $11.57 $11.57 $11.57 $11.57 $11.57 $11.57 $11.57 (1) Including all City fees. (2) Applicable to businesses. All residential cart customers are charged in accordance with the Residential Cart Service Rates on page 2-1. (3) Not applicable to residents with cart refuse service ; such customers receive recycling service at no additional charge. 476 May 24, 2013 2 - 3 City of Hermosa Beach EXHIBIT 2 INITIAL MAXIMUM RATES (continued) Following are the rates for July 1, 2013 through June 30, 2014: Additional Service Charges Rate Per Service* Porter Service (total amount to be shared by affected customers per Section 4.1.14) $5,500 per month Commercial Bulky Item Pickup: - 1 to 2 items $27.31/pickup - 3 to 5 items $54.61/pickup - 6 to 10 items $109.21/pickup - Each additional item on same pickup $27.31/add’l item Bin Return Trip/Dry Run Fee $50.00 per trip Bin Re-delivery Fee (if bins are pulled for non-payment) $45.00 per bin Bin Cleaning (over once per year) $40.00 3-yard Temporary Bin - Per dump (delivery, disposal and 7-day rental included) $100.35 - Rental per day after 7 days without a dump Special Event Litter Boxes - Rate per box $4.50 - Rate per box of 200 liners $50.00 Emergency Service Rates – one crew and one collection truck $85.00/hour *Including all City fees, inclusive of AB 939 fees on page 2-5. 477 May 24, 2013 2 - 4 City of Hermosa Beach EXHIBIT 2 INITIAL MAXIMUM RATES (continued) Following are the rates for July 1, 2013 through June 30, 2014: Roll-off Box Charges Rate* Roll-off Box Service – Pull Plus Dump - Standard Roll-off Box (any size) - Rate per pull (including delivery, and rental) $181.60 per pull - Compactor roll-off box – Rate per pull (does not include provision of compactor) 20 yard compactor $198.52 per pull 30 yard compactor $201.02 per pull 40 yard compactor $203.52 per pull - Compactor Monthly Lease $550.00 per month Per Ton Rate $ 61.56 per ton Per Ton Rate – Pier Compactor Roll-Off Only, for composting $ 65.00 per ton Per day rental after 7 days without a pull $10.00 per day Additional Roll-off Box Fees - Overweight charge (per ton over ten tons/load) 25% of Per Ton Rate - Dry Run/Redelivery/Return Trip/Relocation Fee $50.00 *Including all City fees, inclusive of AB 939 fees on page 2-5. 478 May 24, 2013 2 - 5 City of Hermosa Beach EXHIBIT 2 INITIAL MAXIMUM RATES (continued) AB 939 Fees Included in the Above Rates 1 2 3 4 5 6 7 32-Gallon Cart 0.17$ 0.34$ 0.51$ 0.68$ 0.85$ 1.02$ 1.19$ 64-Gallon Cart 0.35$ 0.70$ 1.05$ 1.40$ 1.75$ 2.10$ 2.45$ 96-Gallon Cart 0.51$ 1.02$ 1.53$ 2.04$ 2.55$ 3.06$ 3.57$ 1 Cubic Yard 1.08$ 2.16$ 3.24$ 4.32$ 5.40$ 6.48$ 7.56$ 1.5 Cubic Yard 1.62$ 3.24$ 4.86$ 6.48$ 8.10$ 9.72$ 11.34$ 2 Cubic Yard 2.17$ 4.34$ 6.51$ 8.68$ 10.85$ 13.02$ 15.19$ 3 Cubic Yard 3.25$ 6.50$ 9.75$ 13.00$ 16.25$ 19.50$ 22.75$ 4 Cubic Yard 4.33$ 8.66$ 12.99$ 17.32$ 21.65$ 25.98$ 30.31$ 6 Cubic Yard 6.50$ 13.00$ 19.50$ 26.00$ 32.50$ 39.00$ 45.50$ 8 Cubic Yard 8.66$ 17.32$ 25.98$ 34.64$ 43.30$ 51.96$ 60.62$ Refuse Container Size Number of Collections per Week Container/Service Type Roll-Off Box Pulls Standard Roll-Off Box - 20, 30, 40 yard 10.00$ per pull Compactor Roll-Off Box - 20 yard 5.00$ per pull Compactor Roll-Off Box - 30 yard 7.50$ per pull Compactor Roll-Off Box - 40 yard 10.00$ per pull Temporary Bin 3 Cubic Yard 0.75$ per dump AB 939 Fee 479 May 24, 2013 3 - 1 City of Hermosa Beach EXHIBIT 3A EXAMPLE RATE ADJUSTMENT FORMULA – CART & BIN Row Adjustment Factor Index 1 Labor (1)109.7 112.2 2.3% 2 Fuel (2)170.6 173.2 1.5% 3 Equipment (3)125.1 129.1 3.2% 4 Disposal (4)219.960 221.931 0.9% 5 All Other (5)219.960 221.931 0.9% Row Adjustment Factor Index 6 Labor (1)25.0%2.3%0.6% 7 Fuel (2)5.0%1.5%0.1% 8 Equipment (3)13.0%3.2%0.4% 9 Disposal (4)27.0%0.9%0.2% 10 All Other (5)30.0%0.9%0.3% 11 Total 100.0%1.6% Row Example Rate Categories 12 Res. service w/64-gal. refuse 10.69$ 1.6%0.17$ 10.86$ 13 Res. service w/32-gal. refuse 6.69$ 1.6%0.11$ 6.80$ 14 Extra 64-gal refuse cart 6.00$ 1.6%0.10$ 6.10$ 15 Extra 32-gal refuse cart 4.00$ 1.6%0.06$ 4.06$ 16 Alt.= Residential rate 10.69$ 1.6%0.17$ 10.86$ 17 3 cu.yd. bin 1x week 190.92$ 1.6%3.05$ 193.97$ 18 3 cu.yd. bin 2x week 170.77$ 1.6%2.73$ 173.50$ 19 3 yd bin, extra pickup 52.07$ 1.6%0.83$ 52.90$ 20 Commercial 96 gal. cart 50.69$ 1.6%0.81$ 51.50$ Row Adjustment Factor Index 21 Labor (1)25.0%2.3%0.6%25.6%25.2% 22 Fuel (2)5.0%1.5%0.1%5.1%5.0% 23 Equipment (3)13.0%3.2%0.4%13.4%13.2% 24 Disposal (4)27.0%0.9%0.2%27.2%26.8% 25 All Other (5)30.0%0.9%0.3%30.3%29.8% 26 Total 100.0%101.6%100.0% (4) Consumer Price Index for All Urban Consumers, less food and energy, U.S. city average - average annual change* or 5%, whichever is lower. (5) Consumer Price Index for All Urban Consumers, less food and energy, U.S. city average - average annual change.* (7) Example rates listed. Adjustment applies to all applicable rate categories. * See Exhibit 3C. (3) Producer Price Index, PCU336120336120, Heavy duty truck manufacturing - average annual change.* D Step Two: Determine components Old Index Value Percent Change In Index (from Column C) H I Total Weighted Change (Columns D x E) Cost Factor Category Weighted as a % of Component Total (6) L New Index Value Percent Change In Index ((Column B/ Column A) -1) E F Adjusted Cost Component Weightings (Column K + Column M) N G J Step Three: Apply percentage change to rates Change in Cost Component Weightings (Column K x Column L) K OM Cost Components Reweighted to Equal 100% (Column N Row divided by Column N Total) (1) Employment Cost Index CIU20100005200000I, Total compensation, Private industry, Index number, Transportation and material moving - average annual change.* (2) Producer Price Index, WPU 0531 not seasonally adjusted, Fuels and related products and power, natural gas - average annual change.* (6) First year based on Section 6.4. After the first adjustment, this coumn comes from Column O of the previous year's rate adjustment worksheet. Adjusted Rate (Column G + Column I) Rate Increase or Decrease (Column G x Column H) Current Customer Rate (7) Total Weighted Percentage Change (from Column F) Step Four: Re-weight cost components Cost Component (Column D) Percent Change in Index (Column E) 480 May 24, 2013 3 - 2 City of Hermosa Beach EXHIBIT 3B EXAMPLE RATE ADJUSTMENT FORMULA – ROLL-OFF BOX Row Adjustment Factor Index 1 2 Labor (1)109.7 112.2 2.3% 3 Fuel (2)170.6 173.2 1.5% 4 Equipment (3)125.1 129.1 3.2% 5 All Other (4)219.960 221.931 0.9% 6 Refuse/Ton (5)219.960 221.931 0.9% Row Adjustment Factor Index 7 8 Labor (1)41.0%2.3%0.9% 9 Fuel (2)18.0%1.5%0.3% 10 Equipment (3)13.0%3.2%0.4% 11 All Other (4)28.0%0.9%0.3% 12 100.0%n/a 1.9% 13 Refuse/Ton (5)100.0%0.9%0.9% Row 14 181.60$ 1.9%3.45$ 185.05$ 15 201.03$ 1.9%3.82$ 204.85$ 16 Refuse/Ton (5)61.56$ 0.9%0.55$ 62.11$ Row Adjustment Factor Index 17 Labor (1)41.0%2.3%0.9%41.9%41.1% 18 Fuel (2)18.0%1.5%0.3%18.3%18.0% 19 Equipment (3)13.0%3.2%0.4%13.4%13.2% 20 All Other (4)28.0%0.9%0.3%28.3%27.7% 21 Total 100.0%101.9%100.0% (4) Consumer Price Index for All Urban Consumers, less food and energy, U.S. city average - average annual change.* (5) Consumer Price Index for All Urban Consumers, less food and energy, U.S. city average - average annual change*, or 5%, whichever is lower. Service Component Total A Service Component (Pull Rate) C Old Index Value B E Service Component (Pull Rate) Cost Factor Category Weighted as a % of Component Total (6) FD Total Weighted Change (Columns D x E) Percent Change In Index (from Step One, Column C) L M N Step One: Calculate percentage change in indices New Index Value Percent Change In Index ((Column B/ Column A) -1) Step Two: Determine components Step Four: Re-weight service component cost components O Current Customer Rate Total Weighted Percentage Change (from Column F) Rate Increase or Decrease (Column H x Column I) 30 yd. Compactor Rolloff Box Pull Rate K Rate Category Step Three: Apply percentage change to rates G H Standard Rolloff Box Pull Rate Adjusted Rate (Column H + Column J) JI * See Exhibit 3C. Change in Cost Component Weightings (Column K x Column L) Adjusted Cost Component Weightings (Column K + Column M) Cost Components Reweighted to Equal 100% (Column N Row divided by Column N Total) Cost Component (Column D) (6) First year based on Section 6.4. After the first adjustment, this coumn comes from Column O of the previous year's rate adjustment worksheet. Percent Change in Index (Column E) (1) Employment Cost Index CIU20100005200000I, Total compensation, Private industry, Index number, Transportation and material moving - average annual change.* (2) Producer Price Index, WPU 0531 not seasonally adjusted, Fuels and related products and power, natural gas - average annual change.* (3) Producer Price Index, PCU336120336120, Heavy duty truck manufacturing - average annual change.* 481 May 24, 2013 3 - 3 City of Hermosa Beach EXHIBIT 3C EXAMPLE RATE ADJUSTMENT FORMULA - CALCULATION FOR AVERAGE ANNUAL CHANGE IN PUBLISHED PRICE INDICES Rate adjustment indices for labor, fuel, equipment and “all other” are calculated using the “average annual change” as demonstrated in the example below, measured for the twelve months ended the March before each rate adjustment, as compared to the twelve months ended the prior March. The Bureau of Labor Statistics publishes these monthly and quarterly indices. The following example is for the Consumer Price Index for All Urban Consumers all items less food and energy index - U.S. City average that is used to adjust the “all other” cost components. If a rate adjustment based on this CPI index were to be implemented as of July 1, 2013, the twelve-month average annual index for the period ended September 2012 of 228.653 would have been the “New Index Value” to be used in Column B of the example rate adjustment formulas in Exhibits 3A and 3B, and the twelve-month average annual index for the period ended September 2011 223.808 would have been the “Old Index Value” in Column A. This would have resulted in a 2.2% increase to the “all other” cost components in Column C. Consumer Price Index – All Urban Consumers, U.S. City Average All items less food and energy, CUUR0000SAOL1E Year Jan Feb March April May June July August Sept Oct Nov Dec Average 2010 222.079 222.077 221.795 2011 222.177 223.011 223.690 224.118 224.534 224.891 225.164 225.874 226.289 223.808 2011 226.743 226.859 226.740 2012 227.237 227.865 228.735 229.303 229.602 229.879 229.893 230.196 230.780 228.653 Average Annual Change: 2.2% 482 EXHIBIT 4 CITY LITTER AND RECYCLING CONTAINER COLLECTION MAP May 24, 2013 4 - 1 City of Hermosa Beach 483 May 24, 2013 5 - 1 City of Hermosa Beach EXHIBIT 5 CORPORATE GUARANTY Not Applicable 484 May 24, 2013 City of Hermosa Beach EXHIBIT 6 Contractor's Faithful Performance Bond KNOW ALL MEN BY THESE PRESENTS: That , a California , as PRINCIPAL, and , a Corporation organized and doing business by virtue of the laws of the State of California, and duly licensed for the purpose of making, guaranteeing, or becoming sole surety upon bonds or undertakings required or authorized by the laws of the State of California, as SURETY, are held and firmly bound to City, hereinafter called OBLIGEE, in the penal sum of five hundred thousand dollars ($500,000) lawful money of the United States, for the payment of which, well and truly to be made, we and each of us hereby bind ourselves, and our and each of our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH THAT: WHEREAS, the above bounden PRINCIPAL has entered into a contract, entitled "INTEGRATED SOLID WASTE MANAGEMENT SERVICES" with City, to do and perform the following work, to wit: Collect, Process and dispose of Solid Waste generated within City, in accordance with the contract. NOW, THEREFORE, if the above bounden PRINCIPAL shall well and truly perform, or cause to be performed each and all of the requirements and obligations of said contract to be performed by said PRINCIPAL, as in said contract set forth, then this BOND shall be null and void; otherwise it will remain in full force and effect. And the said Surety, for value received hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the contract or to the work to be performed there under or the specifications accompanying the same shall in any wise affect its obligations on this BOND, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the contract or to the work or to the specifications. 485 May 24, 2013 City of Hermosa Beach In the event suit is brought by OBLIGEE to enforce the provisions of this bond, said Surety will pay to OBLIGEE a reasonable attorney’s fee, plus costs of suit, in an amount to be fixed by the court. IN WITNESS WHEREOF, said PRINCIPAL and said SURETY have caused these presents to be duly signed and sealed this day of , 2013 a California Corporation SURETY By: By: (PRINCIPAL) (ATTORNEY IN FACT) (SEAL) (SEAL) 486 May 24, 2013 City of Hermosa Beach EXHIBIT 7 RESERVED 487 May 24, 2013 City of Hermosa Beach EXHIBIT 8 INITIAL SCOUT SERVICE CUSTOMERS 835 15TH ST 1600 ARDMORE AVE 30 13TH ST 845 15TH ST 1500 THE STRAND 930 1ST ST 621 9TH ST 630 2ND ST 721 3RD ST 2411 PROSPECT AVE 904 AVIATION BLVD 940 1ST ST 540 1ST ST 926 1ST ST 2205 PACIFIC COAST HWY 417 25TH ST 837 5TH ST 1301 MANHATTAN AVE 1628 PROSPECT AVE 701 4TH ST 22 PIER AVE 708 8TH ST 1820 ARDMORE AVE 901 AVIATION BLVD 68 PIER AVE 1820 ARDMORE AVE 321 PIER AVE 73 PIER AVE 2001 PACIFIC COAST HWY 743 24TH PL 959 AVIATION BLVD 2001 PACIFIC COAST HWY 1310 PACIFIC COAST HWY 401 MANHATTAN AVE 933 6TH ST 53 PIER AVE 552 11TH PL 446 MONTEREY BLVD 801 20TH ST 50 PIER AVE 1286 THE STRAND 1200 PACIFIC COAST HWY 50 PIER AVE 625 7TH ST 30 HERMOSA AVE 65 PIER AVE 30 PIER AVE 2447 PACIFIC COAST HWY 950 ARTESIA BLVD 8 PIER AVE 2401 PACIFIC COAST HWY 833 5TH ST 20 13TH ST 2515 VALLEY DR 1830 HERMOSA AVE 1645 VALLEY DR 1850 PACIFIC COAST HWY 935 1ST ST 839 6TH ST 20 PIER AVE 615 3RD ST 700 PACIFIC COAST HWY 1720 ARDMORE AVE 53 PIER AVE 2121 PACIFIC COAST HWY 1050 AVIATION BLVD 1301 MANHATTAN AVE 49 PIER AVE 640-650 HERMOSA AVE 1707 PACIFIC COAST HWY 1314 LOMA DR 139 HERMOSA AVE 90 PIER AVE 11 PIER AVE 139 HERMOSA AVE 500 PACIFIC COAST HWY 100 MONTEREY BLVD 104 HERMOSA AVE 1837 PACIFIC COAST HWY 950 1ST ST 417 25TH ST 972 ARTESIA BLVD 444 HERMOSA AVE 669 4TH ST 501 HERONDO ST 320 MASSEY ST 1072 AVIATION BLVD 712 9TH ST 15 15TH ST 21 PIER AVE 26 PIER AVE 1272 THE STRAND 1221 HERMOSA AVE 538 8TH ST 957 1ST ST 1016 THE STRAND 2100 PACIFIC COAST HWY 74 PIER AVE 31 PIER AVE 37 PIER AVE 720 21ST ST 36 PIER AVE 718 21ST ST 736 GOULD AVE 52 PIER AVE 867 AUBREY CT 1803 PACIFIC COAST HWY 415 HERONDO ST 447 HERONDO ST 834 1ST ST 414 2ND ST 19 PIER AVE 1134 CYPRESS AVE 660 5TH ST 960 1ST ST 710 9TH ST 39 PIER AVE 802 PACIFIC COAST HWY 77 15TH ST 840 LOMA DR 81 PIER AVE 77 15TH ST 1325 HERMOSA AVE 1560 PACIFIC COAST HWY 2309 PACIFIC COAST HWY 709 PIER AVE 1731 PACIFIC COAST HWY 655 2ND ST 703 PIER AVE Addresses With Scout Service at Start of Contract 488 May 24, 2013 City of Hermosa Beach EXHIBIT 9 DOWNTOWN AREA 489 May 24, 2013 City of Hermosa Beach EXHIBIT 10 AREAS WHERE AUTOMATED SERVICE NOT FEASIBLE (CAN SERVICE AREAS) Between Palm Drive and Manhattan Avenue Containers placed on 28th Court – Addresses on 27th and 28th Streets Containers placed on 29th Court – Addresses on 28th and 29th Streets Containers placed on 30th Place – Addresses on 29th and 30th Streets Containers placed on 31st Place – Addresses on 30th and 31st Streets Containers placed on 32nd Place – Addresses on 31st and Longfellow Avenue Containers placed on 33rd Place – Addresses on Longfellow and 33rd Streets Containers placed on 34th Place – Addresses on 33rd and 34th Streets Containers placed on Homer Street – Addresses on 34th and 35th Streets Between Manhattan Ave and Valley Drive Containers placed on 31st Place – Addresses on 30th and 31st Streets Containers placed on 32nd Place – Addresses on 31st Street and Longfellow Avenue Between Manhattan Avenue and Highland Avenue Containers placed on 34th Place – Addresses on 33rd and 34th Streets Between 22nd Street and 24th Street Containers placed on Beach Drive – Addresses on Hermosa Drive and The Strand 490 May 24, 2013 City of Hermosa Beach EXHIBIT 11 DOWNTOWN COMPACTOR FACILITY SERVICE AREA 491 May 24, 2013 City of Hermosa Beach EXHIBIT 12 NOTARY CERTIFICATION STATE OF CALIFORNIA) COUNTY OF ) ss: On _______________ before me, ______________________(name), ______ (title), personally appeared__________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature __________________________________ (Seal) Notary Public 492 493 494 495 496 497 498 499 1512 Eureka Road, Suite 220, Roseville, CA 95661 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com April 1, 2022 Mr. Douglas Krauss, Environmental Programs Manager City of Hermosa Beach 1315 Valley Drive, Hermosa Beach, CA 90254 submitted via email: dkrauss@hermosabeach.gov Subject: Report on Solid Waste Market and Services Analysis Dear Mr. Krauss, R3 Consulting Group, Inc. (R3) is pleased to submit this report to the City of Hermosa Beach (City) regarding our analysis of the proposal the City received from Athens Services (Athens) to extend its Agreement for Integrated Solid Waste Management Services (Agreement). In conjunction with our analysis of Athens’ proposal, R3 also analyzed Athens’ current and projected revenues and expenses associated with its business operations in the City and compared current and projected solid waste rates to other cities in the South Bay region. Based on our analysis, we find no reason why the City should not consider negotiating an extension with Athens. The City’s solid waste rates are low compared to others in the region, with the City’s residential rates being the overall lowest in the South Bay. As a likely result of these low rates, Athens’ operations in the City in 2020 and 2021 operated at a loss, with revenues not covering the cost of providing services nor a reasonable profit. Athens’ proposal to extend the Agreement term, provide SB 1383 organics collection and associated services, and increase rates appears to be reasonable. Even after the proposed rate increases over three to five years, and given modest assumptions about how rates in the rest of the South Bay region will increase over time, the City’s residential rates are likely to remain below the average of other South Bay cities. Moreover, our analysis indicates that Athens’ proposed rate increases would achieve an appropriate level of reasonable operating profit within three to five years while also providing funding for new SB 1383 programs and new payments to the City. * * * * * Thank you for this opportunity to support the City. As you proceed to review this report, we are happy to meet with you via Zoom to discuss its contents and consider revisions, after which we will provide a final report. We also remain contracted and available to support the City as needed in next steps that may include review of a revised proposal from Athens, additional or in person meetings , and support in extension negotiations with Athens. Should you have questions regarding this report or need additional information, please don’t hesitate to contact me. Sincerely, Garth Schultz | President R3 Consulting Group, Inc. 510.292.0853 | gschultz@r3cgi.com 500 Mr. Douglas Krauss City of Hermosa Beach Report on Solid Waste Market and Services Analysis April 1, 2022 City of Hermosa Beach | Report on Solid Waste Market and Services Analysis 1 Section 1 | Executive Summary Athens has proposed three options for extending its Agreement with the City for Integrated Solid Waste Management Services, all of which would include provision of services to aid the City’s compliance with State Law SB 1383, modification of diversion requirements, and a revision to the annual rate increase methodology. The three options vary only with respect to length of extension, amount and schedule for rate increases, and payments to the City. R3 analyzed Athens current rates, recent financial outcomes, and the projected effects of extension and increases to the City’s rates in comparison to other South Bay cities. The City’s residential solid waste rates are currently the lowest in the region, 20%-41% lower than the average of other South Bay cities. Commercial bundled rates (inclusive of garbage, recycling and organic waste) are 8% to 14% below the regional average. As a likely result of these low rates, Athens reports that its expenses exceed revenues for its operations in the City, meaning that current rates do not cover the cost of providing service, with Athens not earning a profit in its City operations. If the City were to accept any one of Athens’ three proposed extension options, residential rates over the next five years are projected to remain 13% to 36% below the average of other South Bay cities. Commercial bundled rates are projected to remain within the normal market expectation for such services, but with comparison to other agencies being difficult to predict due to reg ulatory changes, and the likelihood that other cities have not yet addressed the requirements of SB 1383. Projections of Athens’ future profit achievement via extension and rate increase indicate that that Athens would not begin to earn a profit via its operations in the City until FY 2024-25 at the earliest, and that the resultant profit margins would be within industry norms. We find no reason why the City should not proceed to negotiate an extension with Athens. With SB 1383 having taken effect January 1, 2022, the City needs to make immediate arrangements to provide organic waste collection services to all solid waste customers, while also securing other SB 1383 programs and services such as those listed in Athens’ proposal. Moreover, with the current Agreement being set to expire on June 30, 2023, the City needs to make arrangements for ongoing solid waste management services beyond that date. Given that the City’s current rates are very low and are projected to remain comparatively low into the future and given that the City seems to be satisfied with Athens’ services and performance, it makes good sense for the City to consider negotiating an extension to the current Agreement. If extension negotiations are not successful, the City may still proceed to a competitive procurement process for a new solid waste services agreement. However, to protect its interests, we recommend that the City consider securing an option for triggering an up to one-year extension (through June 30, 2024) with Athens at the outset of negotiations. This would be a security measure that would allow the City sufficient time to conduct a competitive procurement process and transition to a new provider, if necessary, upon the conclusion of negotiations. Section 2 | Cost of Service Analysis R3 conducted an analysis of Athens’ current rate and other revenues in relation to the cost of providing current services. The analysis took into consideration Athens’ revenues resulting from current rates charged to City customers and provides a comparison of Athens’ operating costs with revenues from City operations. The analysis covered calendar years (CY) 2020 and 2021 and is based on information contained in Athens’ Annual Reports for Fiscal Year (FY) 2019-20 and FY 2020-21 as well as Athens’ representations of: total gross revenues; maintenance and street sweeping revenues and expenses (pursuant to a separate contract between the City and Athens); general and administrative (G&A) expenses; contract and franchise fees and payments to the City; and its net income from City operations in both years. 501 Mr. Douglas Krauss City of Hermosa Beach Report on Solid Waste Market and Services Analysis April 1, 2022 City of Hermosa Beach | Solid Waste Market and Services Analysis 2 Verification of these figures was beyond the scope of R3’s engagement for this analysis, and thus o ur analysis did not include any verification of figures included in the Annual Reports or Athens’ representation of its financial statements for City operations. As a result, all Athens’ reported figures were assumed to be true and accurate. Using these sources of information, R3 prepared estimates and a comparison of gross revenues and expenses for CYs 2020 and 2021. Estimated gross revenues were based on totals provided by Athens’, as well as CY annualized residential, commercial and roll-off revenues reported in FY Annual Reports. Estimated expenses were based on overall net income as reported by Athens, as well as rounded figures for maintenance and street sweeping, G&A, and City fees and payments presented by Athens based on its financial statements for City operations. According to our analysis, Athens incurred a net loss in CY 2020 and CY 2021. As a result of our analysis, we can conclude that current rate revenues in the City are not sufficient to cover Athens’ cost of operations, and that in CY 2020 and 2021, Athens made no profit on its City operations. Section 3 | South Bay Market Comparison R3 conducted an analysis comparing Athens’ rates in the City with other cities in the South Bay region. This analysis compares current rates for FY 2021-22 to other publicly available rates for comparative cities. Our analysis does not make adjustments for differences in agency fees and payments, contract terms and conditions, services provided to the agencies, or other factors that my otherwise result in differences in rates between agencies. Table 1 below shows that the City’s current residential rates are lower than all other comparison cities in the South Bay, with the City’s rates being $2.80 to $10.73 less per month than the average (not including the City’s low rates). For the City’s 64-gallon residential rate (to which 58% of residents are subscribed) the rates are 39% less than average. Table 1: Comparison of Residential FY 2021-22 Rates for South Bay Cities 20-gal 32/35-gal 64-gal 96-gal Hermosa Beach $ 11.21 $ 12.37 $ 17.04 $ 21.68 Inglewood N/A N/A 17.46 N/A Manhattan Beach 14.01 14.01 18.83 22.37 Redondo Beach N/A N/A 22.72 N/A Hawthorne N/A 20.45 23.87 27.71 Lawndale N/A 23.09 27.45 31.80 Rancho Palos Verdes N/A 26.06 33.54 40.99 Torrance N/A N/A 34.10 35.31 Culver City N/A N/A 44.21 N/A Average without Hermosa Beach 14.01 20.90 27.77 31.64 Hermosa Beach Over (Under) Average (2.80) (8.53) (10.73) (9.96) Percent Over (Under) Average (20%) (41%) (39%) (31%) Likewise, for commercial bundled services inclusive of garbage, recycling, and organic waste, the City’s rates are also lower than average, and lowest or nearly lowest for the commercial bundled rate services that we analyzed. As shown in Table 2 on the following page, bundled commercial rates are 8% to 15% lower than the average of other South Bay cities, ranging from $12.48 to $33.08 per month cheaper than 502 Mr. Douglas Krauss City of Hermosa Beach Report on Solid Waste Market and Services Analysis April 1, 2022 City of Hermosa Beach | Solid Waste Market and Services Analysis 3 the average. It should be noted that rates in Torrance and Rancho Palos Verdes are set based on open market and are thus not available for the purposes of this comparison. Table 2: Comparison of Commercial FY 2021-22 Rates for South Bay Cities 1 CY 1/week Garbage; 96-gallon Recycling; 96-gallon Organics 3 CY 1/week Garbage; 96- gallon Recycling; 96-gallon Organics 1 CY 1/week Garbage; 1 CY 1/week Recycling; 96-gallon Organics 3 CY 1/week Garbage; 1 CY 1/week Recycling; 96-gallon Organics Hermosa Beach $139.73 $198.91 $148.35 $207.53 Inglewood N/A 189.72 189.72 N/A Culver City N/A 204.55 N/A 204.55 Manhattan Beach N/A 219.79 N/A 273.33 Lawndale 148.62 220.40 148.62 220.40 Hawthorne 155.80 235.73 182.20 262.13 Redondo Beach N/A 242.64 N/A 242.64 Average without Hermosa Beach 152.21 218.81 173.51 240.61 Hermosa Beach Over (Under) Average (12.48) (19.90) (25.16) (33.08) Percent Over (Under) Average (8%) (9%) (15%) (14%) Section 4 | Proposal Analysis Rate Analysis With the findings that Athens’ current rates are generally lowest amongst the South Bay cities and are not sufficient to cover the costs of providing services for the City, R3 analyzed Athens’ proposed rates pursuant to the increases included in its extension proposal. That analysis found that, via all three of the proposed extension options, Athens’ residential rates would remain below the average compared to the other South Bay cities. This analysis assumes that rates in the other cities (with the exception of Redondo Beach, for which Athens has provide known increases) would increase annually by 4% to 5%. These are conservative annual escalators to account for known rate adjustment terms in agreements between those cities and their service providers, as well as modest expectations for the impacts of inflation . It is possible that rates in the other cities will increase more than we have assumed here; however, for the purposes of this analysis, our conservative assumptions still yield positive finding with respect to projected comparison of the City’s rates. Table 3 on the following page demonstrates the known impact of Athens’ proposed options on 64-gallon residential rates compared to estimated rates for the other South Bay cities for the next five years (and with Redondo Beach rates also being actual per Athens, not estimated). As shown in the table, the City’s rates would remain 12% to 35% below the average over the next five years, depending on the option. 503 Mr. Douglas Krauss City of Hermosa Beach Report on Solid Waste Market and Services Analysis April 1, 2022 City of Hermosa Beach | Solid Waste Market and Services Analysis 4 Table 3: Projection and Comparison of 64-gallon Residential Rates Over Five Years FY 22- 23 FY 23- 24 FY 24- 25 FY 25- 26 FY 26- 27 Inglewood $18.16 $18.88 $19.64 $20.43 $21.24 Manhattan Beach 19.77 20.76 21.80 22.89 24.03 Hawthorne 24.82 25.82 26.85 27.92 29.04 Hermosa Beach (A/B) 20.15 23.83 28.19 29.17 30.18 Hermosa Beach (C) 19.14 21.50 24.16 27.14 30.51 Redondo Beach 25.48 28.16 29.14 30.16 31.22 Lawndale 28.55 29.69 30.88 32.11 33.40 Rancho Palos Verdes 34.88 36.28 37.73 39.24 40.81 Torrance 35.46 36.88 38.36 39.89 41.49 Culver City 48.63 53.49 54.83 56.20 56.20 Average without Hermosa Beach 29.47 31.25 32.40 33.61 34.68 Hermosa Beach Over (Under) Average (A/B) (9.32) (7.42) (4.21) (4.44) (4.50) Percent Over (Under) Average (32%) (24%) (13%) (13%) (13%) Hermosa Beach Over (Under) Average (C) (10.33) (9.75) (8.25) (6.46) (4.17) Percent Over (Under) Average (35%) (31%) (25%) (19%) (12%) We should note that it is not clear whether other agencies in the South Bay region are fully prepared to meet the requirements of SB 1383 (with the exception of Redondo Beach, which Athens reports is prepared for SB 1383). Given this uncertainty, we have not forecasted increases i n rates to account for the impacts of SB 1383, though such impacts may be reflected in comparative rates in the future; if this becomes the case, then the City’s rates will compare even more favorably than shown in Table 3. Rates for bundled commercial service would also likely follow trends similar to residential rates, though with less overall ability for estimation and projection given the likelihood that commercial rates in other South Bay cities will change in response to SB 1383’s regulatory requirements. As such, we have not prepared a table comparing bundled commercial rates for the coming five years, as we find that such an analysis would be of little benefit and potentially misleading (because commercial rate structures vary from agency to agency and are expected to change significantly in the coming years with the onset of new fully bundled commercial rates). Full details regarding our analysis and comparison and projections of rates in the South Bay are included as Attachment 1 to this report. Analysis of Proposed Agreement Terms As previously noted in this report, all three of Athens’s proposed extension options include: ➢ New programs and services to support the City’s compliance with SB 1383, including organic waste collection from all customers as well as provision of route contamination audits, site visits, reporting, and waste characterizations. ➢ Modification of the diversion requirement in the Agreement from an expectation of 50% diversion of collected tonnages to meeting CalRecycle’s requirements pursuant to AB 939. ➢ Modification of the annual rate adjustment formula to “Trash CPI+1%”. The only differences between the proposals are length of extension term and type and amounts of payments to the City. R3 analyzed the terms of Athens’ proposed terms and conditions, and the three options, with findings presented below. 504 Mr. Douglas Krauss City of Hermosa Beach Report on Solid Waste Market and Services Analysis April 1, 2022 City of Hermosa Beach | Solid Waste Market and Services Analysis 5 SB 1383 Programs and Services With respect to the SB 1383 programs and services being proposed by Athens, we find that the general description and Athens’ projected costs for those programs and services are appropriate given our experience working with other agencies and the general trends in the Los Angeles area solid waste marketplace. However, if the City decides to proceed to negotiate an extension with Athens, greater detail will be needed regarding the specific SB 1383 programs and services to be provided. Additionally, we recommend that these details include implementation of carts and containers that are compliant with the color and labelling requirements of SB 1383. We have provided an example of a contract amendment that contains such details as Attachment 2 to this report. Modifications to the Diversion Requirement Regarding Athens’ proposal to modify the diversion requirement to align with the State’s measurement of diversion under AB 939 (which we also understand would include measurement of per capita disposal per SB 1016), we can attest that such changes to the diversion requirements are common in today’s solid waste marketplace. While the current requirement for Athens to divert (meaning recycle or compost) over 50% of the materials it collects is a good objective, the reality given recent trends in recycling (such as China’s National Sword Policy and the resultant changes in acceptable recyclables materials in the marketplace) and packaging (wherein much of the new materials are truly not recyclable) is that even highly developed recycling program may not achieve 50% diversion of collected tonnages. Agreement terms and conditions that would hold Athens accountable for the City’s compliance with AB 939 and other laws are a reasonable substitute for the current diversion requirement; however, should the City proceed to negotiate an extension with Athens, we suggest that the modification to the diversion requirement include compliance with SB 1383, SB 1016, and other relevant State solid waste laws, in addition to AB 939. Additionally, the City may wish to seek indemnity for compliance with these terms. Modification to the Annual Rate Adjustment Formula Athens has proposed to change the annual adjustment formula in the Agreement to “Trash CPI+1%”. While the specific Trash CPI to be used to meet this proposed has yet to be identified, use of a “Water/Sewer/Trash” (WST) CPI published by the Bureau of Labor Statistics (BLS) is becoming commonplace in solid waste agreements. Such CPIs have historically yielded somewhat higher calculations of annual rate adjustment than a standard CPI or RRI (Refuse Rate Index) such as the one in the City’s current Agreement; however, public agencies that have agreed to the WST CPI have generally recognized that the labor, fuel and capital-intensive nature of solid waste collection operations have often yielded increases in costs that exceed standard CPI. With the likely effects of economic inflation looming on the horizon, it is not clear whether use of a “Trash CPI” +1% is going to be higher or lower than use of the current annual rate adjustment formula. Given projections of lower-than-average rates over the coming five years, we can conclude that application of a “Trash CPI” +1% will not likely result in City rates that approach or exceed the average rates in the South Bay region. However, there is a likely risk of higher-than-normal rate increases in the coming several years by using a “Trash CPI” +1% because of the prospects of inflation. Analysis of Options The three extension options proposed by Athens vary by term length and type and amount s of new payments to the City. Via Option A, the length of the Agreement would be extended by 10-years and would include a one-time payment of $100,000 to the City. This is the overall simplest option available to the City, with the shortest extension term length. Via Option B, the length of the Agreement would be extended by 10-years plus a 5-year extension subject to being in compliance with the Agreement (effectively a 15-year agreement). This option would transition the length to an annual renewable term if rates are within 10% of industry standard, would include one- time payments (or expenses) of $50,000, and would also include $20,000 in annual payments or new 505 Mr. Douglas Krauss City of Hermosa Beach Report on Solid Waste Market and Services Analysis April 1, 2022 City of Hermosa Beach | Solid Waste Market and Services Analysis 6 services to the City. This option would yield higher commercial rate increases than Option A (residential rates for the two options are identical) and would also consequently result in a slightly higher projected profit to the company. Importantly, as proposed, this option would commit the City to a future annually renewable term Agreement if rates are within the 10% of industry standard as noted above, leaving no apparent discretion for the City to approve or deny such a change. Via Option C, the length of the Agreement would be extended by 10-years, and subject to a 10-year rolling annually renewable term thereafter. The City would also receive a one-time payment of $200,000. The City would have the opportunity to cancel the annually renewable term after the first five years of extension (meaning the minimum term would be 15-years) but would waive its right to 3% of its 10% franchise fee if the option to cancel the renewable term is triggered. This option yields the overall lowest of rate increases in the near term, although residential rates at the end of five years via this option are projected to be higher than the rates that would be realized via Options A or B. Financial Projections for Proposed Options Using Athens’ proposed rate increases by option, and Athens’ reported SB 1383 expenses and City payments, R3 prepared estimated projections of future operating revenues and expenses for Athens’ operations in the City through FY 2026-27. Overall, based on our analysis, we conclude that the proposed rate adjustments, SB 1383 expenses, and payments to the City are reasonable within the context of the resultant rates and the resultant likely profit to the company, which we find to be in keeping with industry standard (namely within an 87-92% operating margin of eligible operating expenses). Our analysis found that Option A returned an operating margin of approximately 89% in starting in FY 2024-25, Option B returned 88% (yielding slightly more profit) also in FY 2024-25. Prior to FY 2024-25 for both options, estimated projections show Athens continuing to operate at a net loss for operations in the City. Option C, which has a lower overall increase, returned an operating margin of 92% starting in FY 2026-27, for the lowest overall near-term profit achievement. Via Option C, Athens would continue to operate at a projected loss through FY 2025-26. Section 5 | Regional Market Trends R3 has been working in the Los Angeles area and broader California solid waste marketplace for nearly 20 years. In the last three years, we have conducted nine competitive procurements in the southern California marketplace and supported many cities in pursuit of SB 1383 compliance. From that experience, we have developed a keen sense of the trends in solid waste agreements, including best practices in how solid waste agreements have address changes in the industry related to regulatory changes such as SB 1383, the impacts of China’s National Sword Policy, changes in post-collection recycling and organics processing markets, changes in the labor and capital markets, and more. From our recent experiences, we can report that: ➢ Competition for solid waste agreements in the Los Angeles area marketplace is strong. ➢ In general, rate increases related to SB 1383 have been low, and largely result of longer -term extensions (such as those proposed by Athens). ➢ Extensions to agreements are often associated with large financial incentive payments to cities. ➢ Amended agreements typically provide full compliance with SB 1383’s cart color and labelling requirements, outreach and education, contamination monitoring and tracking, and associated reporting. ➢ Rate increases for commercial customers are generally higher than those for residential ratepayers. ➢ Revisions to prior diversion standards are commonplace, moving away from percentage diversion requirements and towards commitments to deliver all recyclable and organic materials to permitted recovery facilities. ➢ Access to organic waste processing facilities is limited and therefore highly competitive. ➢ Annual rate adjustments are trending towards use of CPI or WST with annual caps on rate adjustments. 506 20‐gal 32/35‐gal 64‐gal 96‐gal FY 22‐23 FY 23‐24 FY 24‐25 FY 25‐26 FY 26‐27 FY 22‐23 FY 23‐24 FY 24‐25 FY 25‐26 FY 26‐27Hermosa Beach (Current) 11.21$ 12.37$ 17.04$ 21.68$ Manhattan Beach 14.71$ 15.45$ 16.22$ 17.03$ 17.88$ Inglewood 18.16$ 18.88$ 19.64$ 20.43$ 21.24$ Manhattan Beach 14.01$ 14.01$ 18.83$ 22.37$ Hermosa Beach (A/B) 14.62$ 17.30$ 20.46$ 21.17$ 21.91$ Manhattan Beach 19.77$ 20.76$ 21.80$ 22.89$ 24.03$ Redondo Beach N/A N/A 22.72$ N/AHermosa Beach (C) 13.89$ 15.61$ 17.54$ 19.71$ 22.15$ Hawthorne 24.82$ 25.82$ 26.85$ 27.92$ 29.04$ Hawthorne N/A 20.45$ 23.87$ 27.71$ Hawthorne 21.27$ 22.12$ 23.00$ 23.92$ 24.88$ Hermosa Beach (A/B) 20.15$ 23.83$ 28.19$ 29.17$ 30.18$ Torrance N/A N/A 34.10$ 35.31$ Lawndale 24.01$ 24.97$ 25.97$ 27.01$ 28.09$ Hermosa Beach (C) 19.14$ 21.50$ 24.16$ 27.14$ 30.51$ Lawndale N/A 23.09$ 27.45$ 31.80$ Rancho Palos Verdes 27.10$ 28.19$ 29.31$ 30.49$ 31.71$ Redondo Beach 25.48$ 28.16$ 29.14$ 30.16$ 31.22$ Culver City N/A N/A 44.21$ N/ALawndale 28.55$ 29.69$ 30.88$ 32.11$ 33.40$ Inglewood N/A N/A 17.46$ N/AAverage without Hermosa Beach 21.77$ 22.68$ 23.63$ 24.61$ 25.64$ Rancho Palos Verdes 34.88$ 36.28$ 37.73$ 39.24$ 40.81$ Rancho Palos Verdes N/A 26.06$ 33.54$ 40.99$ Torrance 35.46$ 36.88$ 38.36$ 39.89$ 41.49$ Hermosa Beach Over (Under) Average (A/B)(7.15)$ (5.38)$ (3.16)$ (3.44)$ (3.73)$ Culver City 48.63$ 53.49$ 54.83$ 56.20$ 56.20$ All City Average 12.61$ 19.20$ 26.58$ 29.98$ ‐33% ‐24% ‐13% ‐14% ‐15%Average without Hermosa Beach 14.01$ 20.90$ 27.77$ 31.64$ Average without Hermosa Beach 29.47$ 31.25$ 32.40$ 33.61$ 34.68$ Hermosa Beach Over (Under) Average (C) (7.88)$ (7.07)$ (6.09)$ (4.91)$ (3.49)$ Hermosa Beach Over (Under) Average (2.80)$ (8.53)$ (10.73)$ (9.96)$ ‐36% ‐31% ‐26% ‐20% ‐14%Hermosa Beach Over (Under) Average (A/B) (9.32)$ (7.42)$ (4.21)$ (4.44)$ (4.50)$ ‐20% ‐41% ‐39% ‐31%‐32% ‐24% ‐13% ‐13% ‐13%Hermosa Beach (A) 13.25$ 14.62$ 20.15$ 25.69$ Hermosa Beach Over (Under) Average (C)(10.33)$ (9.75)$ (8.25)$ (6.46)$ (4.17)$ Over (Under) Average (0.76)$ (6.28)$ (7.63)$ (5.95)$ ‐35% ‐31% ‐25% ‐19% ‐12%‐5% ‐30% ‐27% ‐19%Hermosa Beach (B) 13.25$ 14.62$ 20.15$ 25.69$ (0.76)$ (6.28)$ (7.63)$ (5.95)$ ‐5% ‐30% ‐27% ‐19%Hermosa Beach (C) 12.59$ 13.89$ 19.14$ 24.39$ (1.42)$ (7.01)$ (8.63)$ (7.25)$ ‐10% ‐34% ‐31% ‐23%20‐gal 32/35‐gal 64‐gal 96‐galPercentage Subscribers in Hermosa Beach1% 34% 58% 8%FY 2021‐22 Rates 5‐Year Rate Projections ‐ 32/35‐Gal 5‐Year Rate Projections ‐ 64‐Gal507 This is a comparison to show the full monthly cost to commercial accounts that are subscribed to all three commoditiesHermosa Beach 139.73$ 198.91$ 148.35$ 207.53$ Manhattan Beach219.79$ 273.33$ Redondo Beach242.64$ 242.64$ Hawthorne 155.80$ 235.73$ 182.20$ 262.13$ Torrance Open Market Open Market Open Market Open MarketLawndale 148.62$ 220.40$ 148.62$ 220.40$ Culver City204.55$ 204.55$ Inglewood189.72$ 189.72$ Rancho Palos VerdesOpen Market Open Market Open Market Open MarketAverage without Hermosa Beach 152.21$ 218.81$ 173.51$ 240.61$ Hermosa Beach 139.73$ 198.91$ 148.35$ 207.53$ Hermosa Beach Over (Under) Average (12.48)$ (19.90)$ (25.16)$ (33.08)$ ‐8% ‐9% ‐15% ‐14%Please note that many of the jurisdictions did not have information on the organics rates available and t hey are therefore not included in jurisdictions where they could not be locatedJurisdiction1 CY 1/week Garbage; 96 gallon Recycling; 96 gallon Organics3 CY 1/week Garbage; 96 gallon Recycling; 96 gallon Organics1 CY 1/week Garbage; 1 CY 1/week Recycling; 96 gallon Organics3 CY 1/week Garbage; 1 CY 1/week Recycling; 96 gallon 508 Residential Rate ProjectionsEstimated CPI 4.0%Includes modest estimates for inflation2021/222022/232023/242024/252025/262026/27Notes48Hermosa Beach (Option A) $11.21 $13.25 $15.67 $18.54 $19.19 $19.85Hermosa Beach (Option B) $11.21 $13.25 $15.67 $18.54 $19.19 $19.85Hermosa Beach (Option C) $11.21 $12.59 $14.14 $15.89 $17.86 $20.07Manhattan Beach $14.01 $14.71 $15.45 $16.22 $17.03 $17.88 5% capRedondo Beach N/A N/A N/A N/A N/A N/AHawthorne N/A N/A N/A N/A N/A N/A CPITorrance N/A N/A N/A N/A N/A N/A CPILawndale N/A N/A N/A N/A N/A N/A CPICulver City N/A N/A N/A N/A N/A N/A Planned IncreaseInglewood N/A N/A N/A N/A N/A N/A CPIRancho Palos Verdes N/A N/A N/A N/A N/A N/A CPI1646Hermosa Beach (Option A) $12.37 $14.62 $17.30 $20.46 $21.17 $21.91Hermosa Beach (Option B) $12.37 $14.62 $17.30 $20.46 $21.17 $21.91Hermosa Beach (Option C) $12.37 $13.89 $15.61 $17.54 $19.71 $22.15Manhattan Beach $14.01 $14.71 $15.45 $16.22 $17.03 $17.88 5% capRedondo Beach N/A N/A N/A N/A N/A N/AHawthorne $20.45 $21.27 $22.12 $23.00 $23.92 $24.88 CPITorrance N/A N/A N/A N/A N/A N/A CPILawndale $23.09 $24.01 $24.97 $25.97 $27.01 $28.09 CPICulver City N/A N/A N/A N/A N/A N/A Planned IncreaseInglewood N/A N/A N/A N/A N/A N/A CPIRancho Palos Verdes $26.06 $27.10 $28.19 $29.31 $30.49 $31.71 CPI2713Hermosa Beach (Option A) $17.04 $20.15 $23.83 $28.19 $29.17 $30.18Hermosa Beach (Option B) $17.04 $20.15 $23.83 $28.19 $29.17 $30.18Hermosa Beach (Option C) $17.04 $19.14 $21.50 $24.16 $27.14 $30.51Manhattan Beach $18.83 $19.77 $20.76 $21.80 $22.89 $24.03 5% capRedondo Beach (Option A) $22.72 $25.48 $28.16 $29.14 $30.16 $31.22Redondo Beach (Option B) $22.72 $25.48 $28.16 $29.14 $30.16 $31.22Redondo Beach (Option C) $22.72 $25.48 $28.16 $29.14 $30.16 $31.22Hawthorne $23.87 $24.82 $25.82 $26.85 $27.92 $29.04 CPITorrance $34.10 $35.46 $36.88 $38.36 $39.89 $41.49 CPILawndale $27.45 $28.55 $29.69 $30.88 $32.11 $33.40 CPICulver City $44.21 $48.63 $53.49 $54.83 $56.20 $56.20 Planned IncreaseInglewood $17.46 $18.16 $18.88 $19.64 $20.43 $21.24 CPIRancho Palos Verdes $33.54 $34.88 $36.28 $37.73 $39.24 $40.81 CPI319Hermosa Beach (Option A) $21.68 $25.69 $30.44 $36.08 $37.52 $39.02Hermosa Beach (Option B) $21.68 $25.69 $30.44 $36.08 $37.52 $39.02Hermosa Beach (Option C) $21.68 $24.39 $27.44 $30.87 $34.73 $39.07Manhattan Beach $22.37 $23.49 $24.66 $25.90 $27.19 $28.55 5% capRedondo Beach N/A N/A N/A N/A N/A N/ACPIHawthorne $27.71 $28.82 $29.97 $31.17 $32.42 $33.71 CPITorrance $35.31 $36.72 $38.19 $39.72 $41.31 $42.96 CPILawndale $31.80 $33.07 $34.39 $35.77 $37.20 $38.69 CPICulver City N/A N/A N/A N/A N/A N/A Planned IncreaseInglewood N/A N/A N/A N/A N/A N/A CPIRancho Palos Verdes $40.99 $42.63 $44.33 $46.11 $47.95 $49.87 CPI20 Gallon35 Gallon64 Gallon96 Gallon509 2021/222022/232023/242024/252025/262026/27Notes2021/222022/232023/242024/252025/262026/27Notes2021/222022/232023/242024/252025/262026/27NotesHermosa Beach (Option A) $75.03 $91.41 $111.36 $135.67 $140.42 $145.34 Hermosa Beach (Option A) $37.24 $45.37 $55.27 $67.34 $69.70 $72.14CPIHermosa Beach (Option A)CPIHermosa Beach (Option B) $75.03 $92.04 $112.90 $138.50 $143.35 $148.36 Hermosa Beach (Option B) $37.24 $45.68 $56.04 $68.74 $71.15 $73.64 Hermosa Beach (Option B)Hermosa Beach (Option C) $75.03 $84.78 $95.81 $108.26 $122.33 $138.24Hermosa Beach (Option C) $37.24 $42.08 $47.55 $53.73 $60.72 $68.61 Hermosa Beach (Option C)Manhattan Beach $75.14 $78.90 $82.84 $86.98 $91.33 $95.90 5% cap Manhattan Beach $37.57 $39.45 $41.42 $43.49 $45.67 $47.95 5% cap Manhattan Beach5% capRedondo Beach (Option A) $96.91 $118.07 $143.84 $175.24 $181.37 $187.72 Redondo Beach (Option A)CPIRedondo Beach (Option A) $39.69 $48.35 $58.91 $71.77 $74.28 $76.88CPIRedondo Beach (Option B) $96.91 $118.88 $145.83 $178.89 $185.15 $191.63 Redondo Beach (Option B)Redondo Beach (Option B) $39.69 $48.69 $59.73 $73.26 $75.83 $78.48Redondo Beach (Option C) $96.91 $109.51 $123.74 $139.83 $158.01 $178.55 Redondo Beach (Option C)Redondo Beach (Option C) $39.69 $44.85 $50.68 $57.27 $64.71 $73.13Hawthorne $45.73 $47.33 $48.99 $50.70 $52.48 $54.31 CPI Hawthorne $25.15$26.03 $26.94 $27.88 $28.86 $29.87 CPI Hawthorne $48.98 $50.69 $52.47 $54.31 $56.21 $58.17 CPITorrance Open MarketTorrance Open MarketTorranceLawndale $101.06 $104.60 $108.26 $112.05 $115.97 $120.03 CPI LawndaleCPI LawndaleCPICulver City $36.87 $40.56 $44.61 $45.73 $46.87 $46.87 Planned IncreaseCulver City $17.70 $19.47 $21.42 $21.95 $22.50 $22.50 Planned IncreaseCulver CityPlanned IncreaseInglewoodCPI InglewoodCPI InglewoodCPIRancho Palos Verdes Open Market CPI Rancho Palos Verdes Open MarketCPI Rancho Palos VerdesCPIHermosa Beach (Option A) $102.49 $124.86 $152.12 $185.33 $191.82 $198.53 Hermosa Beach (Option A) $45.86 $55.87 $68.07 $82.93 $85.83 $88.83CPIHermosa Beach (Option A)CPIHermosa Beach (Option B) $102.49 $125.72 $154.23 $189.19 $195.81 $202.66 Hermosa Beach (Option B) $45.86 $56.26 $69.01 $84.65 $87.62 $90.68Hermosa Beach (Option B)Hermosa Beach (Option C) $102.49 $115.81 $130.87 $147.88 $167.11 $188.83 Hermosa Beach (Option C) $45.86 $51.82 $58.56 $66.17 $74.77 $84.49Hermosa Beach (Option C)Manhattan Beach Not Offered 5% cap Manhattan Beach Not Offered 5% cap Manhattan Beach5% capRedondo Beach (Option A) $124.12 $151.22 $184.23 $224.44 $232.30 $240.43 Redondo Beach (Option A)CPIRedondo Beach (Option A)CPIRedondo Beach (Option B) $124.12 $152.26 $186.77 $229.12 $237.14 $245.44 Redondo Beach (Option B)Redondo Beach (Option B)Redondo Beach (Option C) $124.12 $140.26 $158.49 $179.09 $202.37 $228.68 Redondo Beach (Option C)Redondo Beach (Option C)Hawthorne $81.67 $84.53 $87.49 $90.55 $93.72 $97.00 CPI Hawthorne $51.55$53.35 $55.22 $57.15 $59.15 $61.23 CPI Hawthorne $81.67 $84.53 $87.49 $90.55 $93.72 $97.00 CPITorrance Open MarketTorrance Open MarketTorranceLawndale $148.62 $153.82 $159.21 $164.78 $170.54 $176.51 CPI LawndaleCPI LawndaleCPICulver City Not Offered Planned Increase Culver City Not Offered Planned Increase Culver CityPlanned IncreaseInglewoodCPI InglewoodCPI InglewoodCPIRancho Palos Verdes Open Market CPI Rancho Palos Verdes Open MarketCPI Rancho Palos VerdesCPIHermosa Beach (Option A) $207.60 $252.92 $308.13 $375.40 $388.54 $402.13 Hermosa Beach (Option A) $92.44 $112.62 $137.20 $167.16 $173.01 $179.06CPIHermosa Beach (Option A)CPIHermosa Beach (Option B) $207.60 $254.66 $312.40 $383.21 $396.63 $410.51 Hermosa Beach (Option B) $92.44 $113.40 $139.10 $170.64 $176.61 $182.79 Hermosa Beach (Option B)Hermosa Beach (Option C) $207.60 $234.59 $265.08 $299.55 $338.49 $382.49 Hermosa Beach (Option C) $92.44 $104.46 $118.04 $133.38 $150.72 $170.31 Hermosa Beach (Option C)Manhattan Beach Not Offered 5% cap Manhattan Beach Not Offered 5% cap Manhattan Beach5% capRedondo Beach (Option A) $360.12 $438.73 $534.51 $651.19 $673.99 $697.57 Redondo Beach (Option A)CPIRedondo Beach (Option A)CPIRedondo Beach (Option B) $360.12 $441.76 $541.91 $664.76 $688.02 $712.10 Redondo Beach (Option B)Redondo Beach (Option B)Redondo Beach (Option C) $360.12 $406.94 $459.84 $519.62 $587.17 $663.50 Redondo Beach (Option C)Redondo Beach (Option C)Hawthorne $241.45 $249.90 $258.65 $267.70 $277.07 $286.77 CPI Hawthorne$152.73 $158.08 $163.61 $169.33 $175.26 $181.40 CPI Hawthorne $241.45 $249.90 $258.65 $267.70 $277.07 $286.77 CPITorrance Open MarketTorrance Open MarketTorranceLawndale $387.90 $401.48 $415.53 $430.07 $445.12 $460.70 CPI Lawndale Included in garbage charge CPI LawndaleCPICulver City Not Offered Planned Increase Culver City Not Offered Planned Increase Culver CityPlanned IncreaseInglewoodCPI InglewoodCPI InglewoodCPIRancho Palos Verdes Open Market CPI Rancho Palos Verdes Open MarketCPI Rancho Palos VerdesCPIHermosa Beach (Option A) $161.67 $196.26 $238.40 $289.74 $299.77 $310.14CPIHermosa Beach (Option A) $71.66 $87.30 $106.36 $129.58 $134.12 $138.81CPIHermosa Beach (Option A)CPIHermosa Beach (Option B) $161.67 $197.58 $241.63 $295.66 $305.89 $316.49 Hermosa Beach (Option B) $71.66 $87.91 $107.83 $132.28 $136.91 $141.70 Hermosa Beach (Option B)Hermosa Beach (Option C) $161.67 $182.50 $206.07 $232.75 $262.92 $297.07 Hermosa Beach (Option C) $71.66 $80.98 $91.50 $103.40 $116.84 $132.03 Hermosa Beach (Option C)Manhattan Beach $182.22 $188.60 $195.20 $202.03 $209.10 $216.42 5% capManhattan Beach $91.11 $94.30 $97.60 $101.02 $104.55 $108.21 5% cap Manhattan Beach5% capRedondo Beach (Option A) $208.26 $250.74 $294.62 $304.93 $315.60 $326.65CPIRedondo Beach (Option A)CPIRedondo Beach (Option A)CPIRedondo Beach (Option B) $208.26 $250.74 $294.62 $304.93 $315.60 $326.65 Redondo Beach (Option B)Redondo Beach (Option B)Redondo Beach (Option C) $208.26 $250.74 $294.62 $304.93 $315.60 $326.65 Redondo Beach (Option C)Redondo Beach (Option C)Hawthorne $161.60 $167.26 $173.11 $179.17 $185.44 $191.93 CPI Hawthorne$102.16 $105.74 $109.44 $113.27 $117.23 $121.33 CPI Hawthorne $161.60 $167.26 $173.11 $179.17 $185.44 $191.93 CPITorrance Open MarketTorrance Open MarketTorranceLawndale $220.40 $228.11 $236.10 $244.36 $252.91 $261.77 CPI Lawndale Included in garbage charge CPI LawndaleCPICulver City $204.55 $225.01 $247.51 $253.69 $260.04 $260.04 Planned Increase Culver City $43.21 $47.53 $52.28 $53.59 $54.93 $54.93 Planned Increase Culver City $102.98 $113.28 $124.61 $127.72 $130.92 $130.92 Planned IncreaseInglewood $189.72 $196.36 $203.23 $210.35 $217.71 $225.33 CPI InglewoodCPI InglewoodCPIRancho Palos Verdes Open Market CPI Rancho Palos Verdes Open MarketCPI Rancho Palos VerdesCPIHermosa Beach (Option A) $337.69 $411.41 $501.22 $610.63 $632.01 $654.13CPIHermosa Beach (Option A) $148.33 $180.71 $220.16 $268.22 $277.61 $287.32CPIHermosa Beach (Option A)CPIHermosa Beach (Option B) $337.69 $414.24 $508.15 $623.35 $645.17 $667.75 Hermosa Beach (Option B) $148.33 $181.96 $223.21 $273.81 $283.39 $293.31 Hermosa Beach (Option B)Hermosa Beach (Option C) $337.69 $381.59 $431.20 $487.25 $550.59 $622.17 Hermosa Beach (Option C) $148.33 $167.61 $189.40 $214.02 $241.85 $273.29 Hermosa Beach (Option C)Manhattan Beach $374.99 $388.11 $401.70 $415.76 $430.31 $445.37 5% capManhattan Beach $187.50 $194.06 $200.85 $207.88 $215.16 $222.69 5% capManhattan Beach5% capRedondo Beach (Option A) $488.77 $595.47 $725.46 $883.83 $914.76 $946.78CPIRedondo Beach (Option A)CPIRedondo Beach (Option A)CPIRedondo Beach (Option B) $488.77 $599.57 $735.50 $902.23 $933.81 $966.50 Redondo Beach (Option B)Redondo Beach (Option B)Redondo Beach (Option C) $488.77 $552.31 $624.11 $705.24 $796.93 $900.53 Redondo Beach (Option C)Redondo Beach (Option C)Hawthorne $481.32 $498.17 $515.60 $533.65 $552.33 $571.66 CPI Hawthorne$304.53 $315.19 $326.22 $337.64 $349.46 $361.69 CPI Hawthorne $481.32 $498.17 $515.60 $533.65 $552.33 $571.66 CPITorrance Open MarketTorrance Open MarketTorranceLawndale $575.23 $595.36 $616.20 $637.77 $660.09 $683.19 CPI Lawndale Included in garbage charge CPI LawndaleCPICulver City Not Offered Planned Increase Culver City Not Offered Planned Increase Culver CityPlanned IncreaseInglewoodCPI InglewoodCPI InglewoodCPIRancho Palos Verdes Open Market CPI Rancho Palos Verdes Open MarketCPI Rancho Palos VerdesCPIHermosa Beach (C) $75.03 $84.78 $95.81 $108.26 $122.33 $138.24 Hermosa Beach (C) $37.24 $42.08 $47.55 $53.73 $60.72 $68.61 Hermosa Beach (C)$0.00 $0.00 $0.00 $0.00 $0.00 $0.00Average without Hermosa Beach $71.14 $76.18 $81.69 $87.06 $92.93 $99.13 Average without Hermosa Bea$26.81 $28.32 $29.93 $31.11 $32.34 $33.44 Average without Hermosa Bea$44.34 $47.77 $51.57 $55.79 $60.46 $65.65Hermosa Beach Over (Under) Average $3.89 $8.61 $14.12 $21.20 $29.40 $39.11 Hermosa Beach Over (Under) $10.43 $13.76 $17.62 $22.62 $28.38 $35.17 Hermosa Beach Over (Under) ‐$44.34 ‐$47.77 ‐$51.57 ‐$55.79 ‐$60.46 ‐$65.655% 11% 17% 24% 32% 39%39% 49% 59% 73% 88% 105%‐100% ‐100% ‐100% ‐100% ‐100% ‐100%Hermosa Beach (C) $102.49 $115.81 $130.87 $147.88 $167.11 $188.83 Hermosa Beach (C) $45.86 $51.82 $58.56 $66.17 $74.77 $84.49 Hermosa Beach (C) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Average without Hermosa Beach $118.14 $126.20 $135.06 $144.81 $155.55 $167.40 Average without Hermosa Bea$51.55 $53.35 $55.22 $57.15 $59.15 $61.23 Average without Hermosa Bea$81.67 $84.53 $87.49 $90.55 $93.72 $97.00Hermosa Beach Over (Under) Average ‐$15.65 ‐$10.39 ‐$4.19 $3.08 $11.56 $21.43 Hermosa Beach Over (Under) ‐$5.69 ‐$1.53 $3.34 $9.02 $15.62$23.27 Hermosa Beach Over (Under) ‐$81.67 ‐$84.53 ‐$87.49 ‐$90.55 ‐$93.72 ‐$97.00‐13% ‐8% ‐3% 2% 7% 13%‐11% ‐3% 6% 16% 26% 38%‐100% ‐100% ‐100% ‐100% ‐100% ‐100%Hermosa Beach (C) $207.60 $234.59 $265.08 $299.55 $338.49 $382.49 Hermosa Beach (C) $92.44 $104.46 $118.04 $133.38 $150.72 $170.31 Hermosa Beach (C) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Average without Hermosa Beach $329.82 $352.77 $378.00 $405.80 $436.45 $470.32 Average without Hermosa Bea$152.73 $158.08 $163.61 $169.33 $175.26 $181.40 Average without Hermosa Bea$241.45 $249.90 $258.65 $267.70 $277.07 $286.77Hermosa Beach Over (Under) Average ‐$122.22 ‐$118.18 ‐$112.92 ‐$106.25 ‐$97.97 ‐$87.83 Hermosa Beach Over (Under) ‐$60.29 ‐$53.62 ‐$45.57 ‐$35.95 ‐$24.54 ‐$11.08 Hermosa Beach Over (Under) ‐$241.45 ‐$249.90 ‐$258.65 ‐$267.70 ‐$277.07 ‐$286.77‐37% ‐34% ‐30% ‐26% ‐22% ‐19%‐39% ‐34% ‐28% ‐21% ‐14% ‐6%‐100% ‐100% ‐100% ‐100% ‐100% ‐100%Hermosa Beach (C) $161.67 $182.50 $206.07 $232.75 $262.92 $297.07 Hermosa Beach (C) $71.66 $80.98 $91.50 $103.40 $116.84 $132.03 Hermosa Beach (C) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Average without Hermosa Beach $194.46 $209.35 $224.96 $232.42 $240.13 $247.02 Average without Hermosa Bea$78.83 $82.52 $86.44 $89.29 $92.24 $94.82 Average without Hermosa Bea$132.29 $140.27 $148.86 $153.44 $158.18 $161.43Hermosa Beach Over (Under) Average ‐$32.79 ‐$26.84 ‐$18.89 $0.32 $22.79 $50.05 Hermosa Beach Over (Under) ‐$7.17 ‐$1.55 $5.06 $14.11 $24.60 $37.20 Hermosa Beach Over (Under) ‐$132.29 ‐$140.27 ‐$148.86 ‐$153.44 ‐$158.18 ‐$161.43‐17% ‐13% ‐8% 0% 9% 20%‐9% ‐2% 6% 16% 27% 39%‐100% ‐100% ‐100% ‐100% ‐100% ‐100%Hermosa Beach (C) $337.69 $381.59 $431.20 $487.25 $550.59 $622.17 Hermosa Beach (C) $148.33 $167.61 $189.40 $214.02 $241.85 $273.29 Hermosa Beach (C) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Average without Hermosa Beach $480.08 $508.49 $539.40 $573.10 $609.91 $650.19 Average without Hermosa Bea$246.02 $254.63 $263.54 $272.76 $282.31 $292.19 Average without Hermosa Bea$481.32 $498.17 $515.60 $533.65 $552.33 $571.66Hermosa Beach Over (Under) Average ‐$142.39 ‐$126.90 ‐$108.21 ‐$85.85 ‐$59.32 ‐$28.01 Hermosa Beach Over (Under) ‐$97.69 ‐$87.01 ‐$74.13 ‐$58.74 ‐$40.46 ‐$18.90 Hermosa Beach Over (Under) ‐$481.32 ‐$498.17 ‐$515.60 ‐$533.65 ‐$552.33 ‐$571.66‐30% ‐25% ‐20% ‐15% ‐10% ‐4%‐40% ‐34% ‐28% ‐22% ‐14% ‐6%‐100% ‐100% ‐100% ‐100% ‐100% ‐100%Cart1 CY 1/Week1 CY 3/Week3 CY 1/Week3 CY 3/WeekCart1 CY 1/Week1 CY 3/Week3 CY 1/Week3 CY 3/WeekCart1 CY 1/Week1 CY 3/Week3 CY 1/Week3 CY 3/Week3 CY 3/Week3 CY 3/Week3 CY 3/WeekIncluded in garbage chargeNot OfferedNot OfferedOpen MarketIncluded in garbage chargeNot OfferedOpen Market3 CY 1/Week3 CY 1/Week3 CY 1/WeekIncluded in garbage chargeNot OfferedNot OfferedOpen MarketIncluded in garbage chargeOpen Market1 CY 3/Week1 CY 3/Week1 CY 3/WeekIncluded in garbage chargeNot OfferedNot OfferedOpen MarketIncluded in garbage chargeNot OfferedOpen Market1 CY 1/Week1 CY 1/Week1 CY 1/WeekIncluded in garbage chargeNot OfferedNot OfferedOpen MarketIncluded in garbage chargeNot OfferedOpen MarketCommercial Organics Rate ProjectionsCartCartCartIncluded in garbage chargeFood Waste Carts offered at no chargeOpen MarketIncluded in garbage chargeOpen MarketCommercial Recycling Rate ProjectionsCommercial Garbage Rate Projections510 AMENDMENT TO THE REVISED AND RESTATED EXCLUSIVE FRANCHISE AGREEMENT TO COLLECT, TRANSFER, PROCESS, MARKET, AND DISPOSE OF SOLID WASTE, RECYCLABLE AND COMPOSTABLE MATERIALS BETWEEN MARIN SANITARY SERVICE AND THE COUNTY OF MARIN Page 1 of 10 This AMENDMENT to the Agreement to Collect, Transfer, Process, Market, and Dispose of Solid Waste, Recyclables and Compostable Materials between the COUNTY OF MARIN (COUNTY) and MARIN SANITARY SERVICE (COMPANY) is made and entered into this ___ day of ______, 2022. WHEREAS, the COUNTY and COMPANY entered into a written agreement on August 19, 2014, and December 17, 2018 (together the “Agreement”) pursuant to which the COMPANY renders Solid Waste, Recyclable Material and Green Waste collection, processing and disposal services to businesses, residents and government institutions in the COUNTY; and WHEREAS, certain state laws require cities, counties, and special districts providing solid waste collection services to adopt ordinances and take other measures to reduce the amount of organic and recyclable materials deposited in landfills from commercial and residential generators, more specifically the Short- Lived Climate Pollutants Organic Waste Reduction regulations adopted pursuant to Senate Bill 1383 (Statutes of 2016) set forth in the California Code of Regulations (the “SB 1383 Regulations”). WHEREAS, the SB 1383 Regulations require cities, counties, and special districts providing solid waste collection services to, by January 1, 2022, provide certain new programs; and WHEREAS, pursuant to the terms and conditions of the Agreement, COUNTY and COMPANY met and conferred and have agreed that COMPANY will be responsible for the programs provided for herein; and WHEREAS, COUNTY and COMPANY mutually desire to amend the Agreement to describe these programs in more detail. NOW, THEREFORE, it is mutually agreed as follows: 1. Effective Date. This Amendment shall take effect May 1, 2022. 2. Definitions. For purposes of this Amendment, the terms set forth in Exhibit A, attached hereto and incorporated herein, shall have the meanings given to them in such exhibit. 3. Three-Container Organic Waste Collection Services. 3.1. Phased Implementation. COUNTY and COMPANY acknowledge that COMPANY’s Organic Waste Collection routes must be expanded to satisfy the requirements of the SB 1383 Regulations, and that new collection trucks must be procured by COMPANY in order to provide such services. Beginning May 1, 2022 all new customers will be provided base level of collection service including Recycling Container, Organics Container and Garbage Container collection service. As soon as practicable, COMPANY shall provide Organic Waste collection service to all of its customers within COUNTY who are subscribed to and pay for Solid Waste collection service, unless (i) the customer is categorically exempted under COUNTY’s municipal code from the requirement to subscribe for Organic Waste collection service, or (ii) the customer qualifies for and is granted a State- or COUNTY-issued waiver. COMPANY will work with customers to appropriately size collection containers such that source-separation of all materials is possible 511 AMENDMENT TO THE REVISED AND RESTATED EXCLUSIVE FRANCHISE AGREEMENT TO COLLECT, TRANSFER, PROCESS, MARKET, AND DISPOSE OF SOLID WASTE, RECYCLABLE AND COMPOSTABLE MATERIALS BETWEEN MARIN SANITARY SERVICE AND THE COUNTY OF MARIN Page 2 of 10 without any overflow of material, and if any disputes arise or overages occur, the COUNTY will make the final determination on proper container size. 4. Container Colors. 4.1. General Requirement. COMPANY shall ensure that each Container that it newly purchases after May 1, 2022 and provides to a customer serviced under the Agreement conforms to the following designations in distinct colors as required or permitted by CalRecycle: Garbage Containers for collection of Solid Waste, Recycling Containers for collection of Recyclable Materials, and Organics Containers for collection of Organic Waste. In addition, COMPANY shall ensure that all Containers it uses to provide such services to customers serviced under the Agreement conform to such color scheme by January 1, 2036. 4.2. Specific Material Types. Paper products and printing and writing paper, each as defined in the SB 1383 Regulations, may be placed in either the Recycling Container or the Organics Container. Carpet and textiles may not be placed in either the Recycling Container or the Organics Container. 5. Container Labels. 5.1. General Requirement. COMPANY shall ensure that each Container that it newly purchases after May 1, 2022 and provides to a customer serviced under the Agreement shall be labeled or imprinted with language and/or graphics that clearly indicates the primary items accepted and the primary items that are Prohibited Container Contaminants for that Container type. COMPANY may comply with this section by using model labeling provided by CalRecycle. 6. Route Reviews. 6.1. General Requirement. At least once annually, beginning in 2022, COMPANY shall conduct a Route Review for each Hauler Route. The number of Containers to review per Hauler Route shall be calculated on the basis of the number of garbage accounts provided service by a specific Hauler Route for one week. For example, “Route A” collects garbage from 250 accounts, 4 days per week for a total of 1,000 accounts per week; include a minimum of 25 accounts for Route Review of “Route A”. For each Route Review of a Hauler Route, COMPANY shall inspect at least the following minimum number of Containers but may inspect more if COMPANY deems necessary; and shall inspect all Containers placed for collection (including Recycling Containers, Organics Containers, and Garbage Containers). Each inspection shall involve lifting the Container lid and observing the contents but shall not require COMPANY to disturb the contents or open any bags. COMPANY may select the Containers to be inspected at random, or (if mutually agreed with COUNTY) by any other method not prohibited under the SB 1383 Regulations. For the avoidance of doubt, COMPANY shall not be required to annually inspect every Container on a Hauler Route. COMPANY shall include the results of each Route Review in its next regularly scheduled report to COUNTY, as required by Section 9. 512 AMENDMENT TO THE REVISED AND RESTATED EXCLUSIVE FRANCHISE AGREEMENT TO COLLECT, TRANSFER, PROCESS, MARKET, AND DISPOSE OF SOLID WASTE, RECYCLABLE AND COMPOSTABLE MATERIALS BETWEEN MARIN SANITARY SERVICE AND THE COUNTY OF MARIN Page 3 of 10 Route Size (# garbage accounts/ week) Minimum Number of Containers Less than 1,500 25 1,500-3,999 30 4,000-6,999 35 7,000 or more 40 6.2. Notice of Contamination. If COMPANY observes Prohibited Container Contaminants in a Container during a Route Review comprising ten percent or more of observable container volume, COMPANY shall notify the customer of the violation in writing. The written notice shall include information regarding the requirement to properly separate materials into the appropriate Containers. The notice may be left on the customer’s Container, gate, or door at the time the violation is discovered, and/or be mailed, e-mailed, electronically messaged or delivered personally to the customer within 30 days. COMPANY may dispose of the contents of any Container found to contain Prohibited Container Contaminants and may charge a contamination fee not to exceed the fee in Exhibit C. The notice shall be provided in English and Spanish. 7. Compliance Reviews. 7.1. General Requirement. At least once annually, beginning in 2022, COMPANY shall review the records of its Commercial and Multi-Family customers in COUNTY that are subscribed for at least two (2) cubic yards per week of combined Solid Waste, Organic Waste and Recyclable Materials service, to determine whether such customers are subscribed for Organic Waste collection service or have an applicable waiver. COMPANY shall include the results of each compliance review in its next regularly scheduled report to COUNTY, as required by Section 9. 7.2. Site Visit Requirement. Based on COMPANY’s review of the list of customers requiring site visit compiled in accordance with section 7.1 above, COMPANY shall conduct an annual site visit to each Commercial and Multi-Family customer in COUNTY that is determined to not be enrolled in 3-container organic waste collection service and not be eligible for a waiver based on the COUNTY determination, to encourage those businesses to sign up for SB 1383 compliant Organics Waste service and provide educational material about the law’s requirements. 8. Education & Outreach. 8.1. In, 2022, and annually thereafter, COMPANY shall provide the following to all its customers under the Agreement: 8.1.1. Information on the customer’s requirements to properly separate materials in appropriate containers. 8.1.2. Information on methods for: the prevention of Organic Waste generation, recycling Organic Waste on-site, sending Organic Waste to community composting, and any other local requirements regarding Organic Waste. 513 AMENDMENT TO THE REVISED AND RESTATED EXCLUSIVE FRANCHISE AGREEMENT TO COLLECT, TRANSFER, PROCESS, MARKET, AND DISPOSE OF SOLID WASTE, RECYCLABLE AND COMPOSTABLE MATERIALS BETWEEN MARIN SANITARY SERVICE AND THE COUNTY OF MARIN Page 4 of 10 8.1.3. Information regarding the methane reduction benefits of reducing the landfill disposal of Organic Waste, and the methods of Organic Waste recovery contemplated by the Agreement. 8.1.4. Information regarding how to recover Organic Waste. 8.1.5. Information related to the public health and safety and environmental impacts associated with the landfill disposal of Organic Waste. 8.2. The above information will be provided, at a minimum, through print and/or electronic media, and may also be provided through workshops, meetings and/or on-site visits. 8.3. COMPANY shall provide an educational webpage which includes downloadable copies of all the materials described in Section 8.1, as well as an educational brochure to be provided by COUNTY for edible food recovery outreach. 8.4. Educational materials provided pursuant to the above shall be translated into Spanish. 8.5. COMPANY shall provide educational materials to customers discovered to be out of compliance with the SB 1383 Regulations requirements and report a list of such customers as well as actions taken to the COUNTY on a periodic basis as required by COUNTY. 9. Waivers. COMPANY shall be responsible for the distribution, collection and evaluation of waiver applications as appropriate and provide the COUNTY a recommendation to accept or deny waiver requests. COMPANY shall develop waiver application forms and shall provide them to COUNTY for COUNTY approval prior to use. COMPANY shall evaluate requests for exemption or waiver from the Act’s requirements and provide the COUNTY periodic recommendations and supporting documentation to deny or approve waivers, including a site visit and re-evaluation at least every five years as required by the SB 1383 Regulations. 10. Edible Food Recovery. COMPANY shall provide COUNTY with a list of Tier One commercial edible food generators located in their jurisdiction by June 1, 2022 and annually thereafter. COMPANY shall provide COUNTY with a list of Tier Two commercial edible food generators located within their jurisdiction by January 1, 2024 and annual thereafter. 11. Reporting. 11.1. Beginning in, 2022, COMPANY shall provide the following information to COUNTY annually, by February 15 of the year following the reporting year: 11.1.1. For information provided by COMPANY pursuant to Section 8 above: (a) Copies of all such information (including flyers, brochures, newsletters, invoice messaging, website and social media postings, emails, and other electronic messages). 514 AMENDMENT TO THE REVISED AND RESTATED EXCLUSIVE FRANCHISE AGREEMENT TO COLLECT, TRANSFER, PROCESS, MARKET, AND DISPOSE OF SOLID WASTE, RECYCLABLE AND COMPOSTABLE MATERIALS BETWEEN MARIN SANITARY SERVICE AND THE COUNTY OF MARIN Page 5 of 10 (b) The date the information was disseminated or the direct contact made. For website and social media postings, this shall be the date posted. (c) To whom the information was disseminated or the direct contact made. For mass distributions such as mailings or bill inserts, COMPANY may provide the type and number of accounts receiving the information, rather than listing each recipient individually. 11.1.2. For Route Reviews and Compliance Reviews: (a) The date the review was conducted. (b) The name and title of each person conducting the review. (c) A list of the account names and addresses covered by the review. (d) For Route Reviews, a description of each Hauler Route reviewed, including COMPANY’s route number and a description of the Hauler Route area. (e) For Route Reviews, the results of such review (i.e., the addresses where any Prohibited Container Contaminants were found), and any photographs taken. (f) For Compliance Reviews, the results of such review (i.e., COMPANY’s findings as to whether the customers reviewed are subscribed for Organic Waste collection service, have an applicable waiver, or neither) and any relevant evidence supporting such findings (e.g. account records). (g) Copies of any educational materials issued pursuant to such reviews. 11.1.3. Documentation relating to observed Prohibited Container Contaminants, whether observed during Route Reviews or otherwise: (a) Copies of the form of each notice issued to customers for Prohibited Container Contaminants, as well as, for each such form, a list of the customers to which such notice was issued, the date of issuance, the customer’s name and service address, and the reason for issuance (if the form is used for multiple reasons). This information will also be provided monthly to any other government entity approved by the COUNTY, including but not limited to Zero Waste Marin requests. (b) The number of times notices were issued to customers for Prohibited Container Contaminants. (c) The number of Containers where the contents were disposed due to observation of Prohibited Container Contaminants. 515 AMENDMENT TO THE REVISED AND RESTATED EXCLUSIVE FRANCHISE AGREEMENT TO COLLECT, TRANSFER, PROCESS, MARKET, AND DISPOSE OF SOLID WASTE, RECYCLABLE AND COMPOSTABLE MATERIALS BETWEEN MARIN SANITARY SERVICE AND THE COUNTY OF MARIN Page 6 of 10 11.1.4. A description of COMPANY’s process for determining the level of Container contamination under the Agreement. 11.1.5. Reports to COUNTY on customers discovered to be out of compliance with the SB 1383 Regulations, including a list of the customers, the type of violation, actions taken to educate those customers, and contact information for those customers. Such reports shall be provided periodically as required by COUNTY. 12. Section 18988.1 and 18988.2 Compliance. COMPANY is responsible for delivery of all Solid Waste to properly permitted disposal facilities, transfer stations, recyclable materials processing facilities, organics processing facilities, and C&D processing facilities as listed in Exhibit B. The list may be amended from time to time by COMPANY, subject to COUNTY approval of the amended list. Failure to comply with this provision will result in the levy of any Administrative Charge or Penalty that may be provided in the San Rafael Municipal Code and may result in COMPANY being in default under this Agreement. COUNTY hereby approves delivery of Organic Waste to such facility(ies). COMPANY shall comply with its obligations under this Amendment and the obligations that by operation of law are imposed upon it directly pursuant to Chapter 12 of the SB 1383 Regulations. 13. Future Changes. The parties acknowledge that future changes to this Amendment or the Agreement may be desirable to assist the parties with their respective compliance obligations under the SB 1383 Regulations or subsequent amendments thereto or interpretations thereof. The parties agree to negotiate any such proposed changes in good faith. The foregoing shall not be deemed to limit either party’s rights or remedies under the Agreement. 14. Miscellaneous. In the event of any conflict between this Amendment and the Agreement, this Amendment shall govern. Section headings in this Amendment are for convenience only and shall not be used in the interpretation of this Amendment. This Amendment may be executed in counterparts and/or by electronic signature (e.g., DocuSign). As used in this Amendment, “including” and its variants mean “including without limitation.” [Remainder of this page intentionally left blank] 516 AMENDMENT TO THE REVISED AND RESTATED EXCLUSIVE FRANCHISE AGREEMENT TO COLLECT, TRANSFER, PROCESS, MARKET, AND DISPOSE OF SOLID WASTE, RECYCLABLE AND COMPOSTABLE MATERIALS BETWEEN MARIN SANITARY SERVICE AND THE COUNTY OF MARIN Page 7 of 10 IN WITNESS WHEREOF, this Amendment is entered into as of the date first written above. COUNTY OF MARIN By: Name: Title: Date: ____________________________ APPROVED AS TO FORM: ________________________________ NAME, COUNTY Attorney ATTEST: ________________________________ NAME, COUNTY Clerk MARIN SANITARY SERVICE, INC. By: Name: Title: Date: ____________________________ 517 AMENDMENT TO THE REVISED AND RESTATED EXCLUSIVE FRANCHISE AGREEMENT TO COLLECT, TRANSFER, PROCESS, MARKET, AND DISPOSE OF SOLID WASTE, RECYCLABLE AND COMPOSTABLE MATERIALS BETWEEN MARIN SANITARY SERVICE AND THE COUNTY OF MARIN Page 8 of 10 Exhibit A DEFINITIONS “Act” means the California Integrated Waste Management Act of 1989 (sometimes referred to as CIWMA or “AB 939”), Public Resources Code § 40000 and following as it may be amended, including but not limited to, the Jobs and Recycling Act of 2011 (AB 341), SB 1016 (Chapter 343, Statutes of 2008 [Wiggins, SB 1016]), the Mandatory Commercial Organics Recycling Act of 2014 (AB 1826), and the Short -Lived Climate Pollutants Bill of 2016 (SB 1383), and as implemented by the regulations of CalRecycle. “Recycling Container” means a Container for the collection of recyclable materials as defined in the Agreement. The Recycling Container shall be colored as defined in the SB 1383 Regulations. “Container” means any Cart, Bin or Debris Box. “Garbage Container” means a Container for the collection of Garbage, which does not include Organic Waste or recyclable materials as defined in the Agreement. The Garbage Container shall be colored as defined in the SB 1383 Regulations. “Organics Container” means a Container for the collection of Organic Waste and colored as defined in the SB 1383 Regulations. Hardware such as hinges and wheels may be any color. “Food Waste Container” means a Container for the collection of Commercial Food Waste only and colored as defined in the SB 1383 Regulations. “Hauler Route” means the designated weekly itinerary or sequence of stops scheduled to be performed by one collection vehicle providing regularly scheduled Solid Waste, Recyclable Material or Organic Waste collection services (not on-call or Bulky Item/Abandoned Waste) within the COMPANY’s collection service area under the Agreement. “Organic Waste” means wastes comprising material originated from living organisms and their metabolic waste products, including food, green material, landscape and pruning waste, clean unpainted/untreated wood (with no nails, wire, etc.), paper products, and printing and writing paper, but excluding textiles and carpets, manure, biosolids, digestate, sludges, non-compostable paper, Construction & Demolition Debris, and Hazardous Waste. No material shall be considered Organic Waste unless it has been segregated by the customer for separate collection. “Prohibited Container Contaminants” means any of the following: (a) Non-Organic Waste placed in the Organics Container, including but not limited to textiles and carpets, manure, biosolids, digestate, sludges, non-compostable paper, Construction & Demolition Debris, and Hazardous Waste; (b) Organic Waste placed in the Garbage Container that is specifically identified under the Agreement for collection in the Organics Container or Recycling Container; 518 AMENDMENT TO THE REVISED AND RESTATED EXCLUSIVE FRANCHISE AGREEMENT TO COLLECT, TRANSFER, PROCESS, MARKET, AND DISPOSE OF SOLID WASTE, RECYCLABLE AND COMPOSTABLE MATERIALS BETWEEN MARIN SANITARY SERVICE AND THE COUNTY OF MARIN Page 9 of 10 (c) Organic Waste placed in the Recycling Container that is specifically identified under the Agreement for collection in the Organics Container. Paper products and printing and writing paper may be considered acceptable and not considered Prohibited Container Contaminants if they are placed in the Recycling Container. “Route Review” means a visual inspection of Containers along a Hauler Route for the purpose of identifying Prohibited Container Contaminants, which may include mechanical inspection methods such as use of cameras. “SB 1383 Regulations” means the Short-lived Climate Pollutants (SLCP): Organic Waste Reductions regulations adopted by the California Department of Resources Recycling and Recovery (“CalRecycle”) in 2020 and found in California Code of Regulations Title 14, Division 7, Chapter 12. For purposes of this Amendment, the following terms (whether or not capitalized) shall have the meanings given to them in the SB 1383 Regulations, unless the context indicates a different meaning was intended: biosolids, digestate, food, non-compostable paper, paper products, printing and writing paper, sludges. 519 AMENDMENT TO THE REVISED AND RESTATED EXCLUSIVE FRANCHISE AGREEMENT TO COLLECT, TRANSFER, PROCESS, MARKET, AND DISPOSE OF SOLID WASTE, RECYCLABLE AND COMPOSTABLE MATERIALS BETWEEN MARIN SANITARY SERVICE AND THE COUNTY OF MARIN Page 10 of 10 Exhibit B FACILITIES Marin Sanitary Service Transfer Station 1050 Andersen Drive San Rafael CA 94912 Marin Recycling Center 535 Jacoby Street San Rafael CA 94912 Marin Resource Recovery Center 535 Jacoby Street San Rafael CA 94901 520 PREPARED BY: Gary Clifford Executive Vice President, Athens Services (626) 934-4619 gclifford@athensservices.com SB 1383 PROPOSAL SB 1383 PROPOSAL 521 2 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy What is SB 1383? SB 1383 was adopted by the California Legislature in 2016 and establishes statewide targets to reduce emissions of short-lived climate pollutants (SLCP) such as methane gas. California’s Department of Resources Recycling and Recovery (CalRecycle), a California Environmental Protection Agency department, is the lead agency responsible for implementation. Organic waste such as excess food, yard trimmings, paper, and cardboard make up half of what Californians dump in landfills. When these materials break down, they emit powerful greenhouse gases and pollutants, including methane. SB 1383 is intended to reduce these short- lived climate pollutants. How Will SB 1383 Impact My City? This unfunded mandate will impact everyone in the State of California. The law mandates new recycling programs, additional outreach and education, ongoing contamination monitoring, enhanced reporting and data management, and may require a change to your waste collection program. Jurisdiction responsibilities also include: • Evaluating your City’s readiness and capacity to implement SB 1383, including organics collection, recycling and edible food recovery capacity. • Providing organic waste collection to all residents and businesses, which means providing service automatically and not relying on the generator to subscribe. • Monitor waste stream contamination levels and issue violations to residents and businesses who continue to contaminate. • Establish edible food recovery program that recovers edible food from the waste stream. • Conducting outreach and education to all impacted parties, including generators and edible food recovery organizations. • Procuring recycled organic waste products like compost, mulch, renewable natural gas (RNG), and electricity. • Inspecting and enforce compliance with SB 1383, including assessing penalties to non-compliant generators. • Maintaining accurate and timely records of SB 1383 compliance. How Will SB 1383 Impact Ratepayers? Organic waste includes green waste, food waste, and food soiled paper. Organic material collected will need to be transported to a processing facility for composting. Residential ratepayers will be required to subscribe to organics recycling service. All businesses will need to subscribe to organics service. Large food waste generators will be required to recover edible food from their waste stream for donation to participating food recovery organizations How will SB 1383 Be Enforced? Jurisdictions are required to monitor contamination and impose penalties from $50 up to $500 for those waste generators that are not properly recycling organic waste. CalRecycle can issue penalties to jurisdictions, up to $10,000 per day, for failure to comply. Why is a Food Recovery Program Required under SB 1383? Californians send 11.2 billion pounds of food to landfills each year, some of which was still fresh enough to have been recovered to feed people in need. While billions of meals go to waste, millions of Californians don’t have enough to eat. To reduce edible food waste and address food insecurity, surplus food still safe for consumption will instead go to food banks, soup kitchens, and other food recovery organizations to help feed Californians in need. CALIFORNIA’S SHORT-LIVED CLIMATE POLLUTANT REDUCTION STRATEGY What You Need To Know 522 3 SB 1383 IMPLEMENTATION TIMELINE September 2016 Governor Edmund (Jerry) Brown Jr. set methane emissions reduction targets for California (SB 1383 Lara, Chapter 395, Statutes of 2016) in a statewide effort to reduce emissions of short- lived climate pollutants January 1, 2020 Reduce the statewide disposal of organic waste by 50% from the 2014 level (target: 11.5 million tons) January 1, 2022 Regulations take effect and are enforceable. Food Recovery for Tier 1 Businesses. January 1, 2025 Reduce the statewide disposal of organic waste by 75% from the 2014 level (target: 5.7 million tons) January 1, 2024 May require local jurisdictions to impose penalties for noncompliance on generators. Food Recovery for Tier 2 businesses. January 2, 2025 Recover 20% of currently disposed edible food for human consumption. 523 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy4 ABOUT ATHENS SERVICES // The Athens Way Culture After more than 60 years, Athens Services remains a family-owned and operated company built on an unwavering commitment to service, its employees, and to the environment. At the core of its success is The Athens Way, a business philosophy that underscores a company culture which: • Emphasizes superior customer service • Hire and develop great people while promoting workplace safety • Fosters environmental stewardship through the use of clean technology to increase recycling and landfill diversion Founded by Jack Arakelian in 1957 as a trash hauling company with just two trucks, today Athens Services is the largest privately held environmental services company in Southern California. With more than a quarter of a million customers in 50 cities and county areas, a fleet of nearly 1,000 vehicles, and a portfolio of facilities that includes three state-of-the art materials recovery facilities and a composting facility, Athens Services’ future is as bright as its storied past. SERVICE | PEOPLE | ENVIRONMENT 524 TABLE OF CONTENTS // 1 WASTE STREAM ANALYSIS 2 OUTREACH & EDUCATION 3 CONTAMINATION MONITORING: ROUTE AUDITS 4 DATA MANAGEMENT & REPORTING SUPPORT 5 PROCUREMENT SUPPORT 6 FOOD RECOVERY SUPPORT 5 7 ATHENS’ FACILITIES 525 6 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy 1. WASTE STREAM ANALYSIS // Compliance SB 1383, California’s Short-Lived Climate Pollutant Reduction Strategy, will drive numerous changes across the state. The shift from a residential green waste collection program to an organics collection program, where food waste and food soiled paper are commingled in the green waste container, and transported to a composting facility, will be one of the larger, more noticeable changes for your constituents. Over the past several months, Athens has been analyzing your current waste stream and conducting waste characterizations of all of the residential refuse/mixed waste loads in your City. These characterizations have provided us with the understanding of how much organic material is currently in those streams, so we can establish a baseline and goals for ensuring that material gets placed in the organics container. These characterizations are instrumental in determining how much outreach and education will need to be conducted to help drive customer behavior to minimize contamination. Each of the residential routes in your City were evaluated, and the results from those waste characterizations are available upon request. For a more detailed explanation on the methodology used for our waste characterizations, please refer to Appendix A. Also included in Appendix A for your reference, is a detailed description of the acceptable materials that will be allowed in the organics, recycle and refuse containers. Learn more about how Athens does waste characterizations for the City of Los Angeles recycLA program. 526 7 In order to comply with SB 1383, Athens will need to enhance the existing outreach and education program in your City. This is a crucial step to help drive the change in customer behavior. Similar to the outreach that is provided under AB 1826, which targets specific customers based on the amount of waste generated, outreach under SB 1383 will be applicable to all customers. Athens will be providing additional team members in your City to help with these efforts. The Athens outreach program will include in-person, print and electronic outreach in your City. Athens will also track, record, manage and store the data gathered from these outreach efforts, to assist the City in reporting back to CalRecycle. The Athens outreach team will also provide support to the City through assessing and verifying the circumstances of businesses that may qualify for a waiver. Jurisdictions are required to establish a waiver program and has final authority on approving waivers for service. Athens will verify, through our outreach team, whether a customer qualifies for a De Minimis, Physical Space, or Collection Frequency Waiver. Athens is unable to issue the final determination, as SB 1383 places that responsibility on the jurisdiction, but we can provide the work needed to help the City with that process. For a more comprehensive description on our overall outreach approach, please see Appendix B. 2. OUTREACH & EDUCATION // Effective, results-driven approach to education ATHENS OUTREACH TEAM: Lucas Arias, Recycling Coordinator Athens Team Member Since 2019 Athens Outreach Team 2018 Tabling Event Angie Park, Organics Recycling Coordinator Athens Team Member Since 2017 OUTREACH EFFORTS: In-person Digital/eletronic Print • Presentations & Training • Waste Assessments • Community Events & Meetings • Interactive Recycling Website (Recyclist) • Instructional Videos • Social Media • Signage • Container Labeling • Newsletter Articles 527 8 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy 3. CONTAMINATION MONITORING: ROUTE AUDITS // Route auditors SB 1383 mandates regular monitoring of the collection routes, to observe and track contamination in the waste stream. The law provides two options for monitoring: (1) periodic waste characterizations at the processing facility; (2) periodic reviews and audits of the collection routes. Athens has determined the most cost effective approach for compliance with this part of the mandate is by conducting ongoing route reviews. Athens will provide quarterly route reviews for commercial and residential sectors, to monitor contamination. We will conduct these audits by performing a hands-on visual check, and will document our findings and capture photos of the containers being audited. This information will be housed in our database, and will be available for the City to review as needed. See more about Athens’ route audit process and contamination monitoring in Appendix C. ROUTE AUDIT PROCESS: Document findings and capture photos Report information in databaseIn-person visual check 528 9 4. DATA MANAGEMENT & REPORTING SUPPORT // Dedicated reporting team to oversee data management of recycling efforts SB 1383 requires jurisdictions to monitor contamination, issue notices of violations and report this information to CalRecycle. Athens can provide support with this through our enhanced reporting process. Athens has developed the infrastructure needed to capture the data required under SB 1383. This includes all the information gathered through our outreach efforts, which includes data such as backhaul/selfhaul programs, waiver information, and container and waste stream photographs. In addition, the data gathered for contamination monitoring through our proposed route reviews will also be tracked by Athens. This will eliminate the need for your City to have to manage and store this data. This data will be available, as needed, to the City for reporting and compliance purposes. As part of the outreach, monitoring and reporting the Athens team will be providing, we will have adequate data to support the City with enforcement actions administered. For more information on how Athens can support with data management and reporting, please refer to Appendix D. Audit report from a similar City. 529 10 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy 5. PROCUREMENT SUPPORT // Procurement SB 1383 requires jurisdictions to procure recycled organic products on an annual basis. CalRecycle has developed a calculator to help jurisdictions determine how much material would need to be procured. Athens will help your City comply with this requirement through the use of renewable natural gas (RNG) utilized in our collection vehicles and through the compost produced at American Organics. Over the years, Athens has invested in significant RNG and composting infrastructure in preparation for upcoming regulations. This has prepared us to help your City meet procurement needs through RNG and compost. Please refer to Appendix E for additional details on how Athens can support your City’s Procurement requirements. 530 11 6. FOOD RECOVERY SUPPORT // Educating Food Generators on SB 1383 In addition to the reduction of organics disposal, SB 1383 establishes an additional target that no less than 20% of currently disposed edible food is recovered for human consumption by 2025. Food service establishments will be required to work with a food recovery organization. Starting in 2022, Tier 1 edible food generators must arrange to recover the maximum amount of their edible food that would otherwise go to landfills and they must maintain food donation records. As a waste hauler, Athens scope of work is typically focused on the “back of house” operations, where the waste gets placed into the containers we haul. Food recovery activities take place prior to the material coming to the “back of house”, or to the enclosure. However, Athens is able to provide support with the City’s food recovery program by providing the outreach needed for food generators subject to this requirement. Athens will work with food generators, as part of the site visits and outreach we provide, to inform and advise customers how they can develop a food recovery program. Athens will also work with the City to help identify Tier 1 and Tier 2 customers as well as identify potential food recovery partners. A full description of how Athens can provide food recovery support to your City is included in Appendix F. Learn more about Athens’ food recovery and donation program. 531 12 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy 7. ATHENS’ FACILITIES // Utilizing Innovative Technology Athens has built the most advanced sustainable green waste and organics composting facility in the region. American Organics processes more organic waste in a shorter period while producing the highest quality, certified-organic, contaminant-free compost. We do this better than any other facility in Southern California. Additionally, this facility reduces thousands of metric tons of greenhouse gases (GHGs) annually by diverting organic waste from landfills. The compost produced at American Organics benefits Southern California by diverting organic waste and reducing GHGs. Athens has invested hundreds of millions of dollars in building and improving materials recovery facilities (MRFs) to help municipalities meet diversion goals and prepare for future recycling regulations. Our Sun Valley MRF is renowned for its innovative technology, impeccable safety record, and green building certification. A short distance away, Athens is expanding and enclosing Crown Recycling, one of the most comprehensive MRFs in the area. Upon completion, the $50 million renovation will increase facility capacity to 6,700 tons per day (TPD) of organic material, construction and demolition, and mixed solid waste. Our Valley MRF, located in the City of Industry, sorts up to 3,000 TPD. This facility was the first Athens MRF constructed, and has continued to be on the cutting edge of innovation, helping Athens adapt to new mandates like SB 1383. In collaboration with Komar Industries, Athens recently developed the Organic Separation Press (OSP). The OSP is the first system of its kind to recover organic liquid from waste for reuse. Using a large auger screw, the OSP presses waste to separate nutrient-right organic liquid. The liquid is harvested and transported to a wastewater treatment facility to be converted into renewable natural gas. All of the Athens facilities are prepared to meet the requirements of SB 1383. This includes, but is not limited to, RDRS reporting, data management, contamination monitoring, load checks and safety practices as outlined in the final regulations published November 2020. 532 13 APPENDIX A Waste Stream Analysis To analyze and better understand the composition of your City’s refuse/mixed waste stream, Athens conducted waste characterizations of your residential routes. Under current law, it is acceptable to place food waste in the trash. Under SB 1383, food waste needs to be removed from the trash bin and placed in the organics container. These recent waste characterizations helped Athens identify how much organics (food waste and green waste) is currently in your trash stream. Approximately 200-400 pounds of material were sampled from each load. From that sampling, the Athens team worked to identify the various organics commodities within that load. Each commodity type was identified, labeled and photographed. The team was able to quantify, how much of each of the organic commodities were in the load sample. This process takes roughly 3-4 hours per load sample. This ensures that we are accurately able to identify and categorize materials. Below is an image that illustrate this process. The characterizations are designed to identify the volume of organics placed in this stream. The results are used to identify a benchmark and establish goals for implementing a residential organics recycling program in your City. Based on the established goals, we can determine resources needed to be put forth for education and outreach to transition organics into the green waste container program. 533 14 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy APPENDIX A Waste Stream Acceptable Materials Athens will provide compliance for your City by collecting residential green waste, food waste and food soiled paper in the organics (green) container. Acceptable materials for the recycle (blue) and trash (black) barrel will be communicated to our customers through our outreach program. Below is a listing of acceptable materials for each of these waste streams. Green Container Acceptable Items Green Waste • Grass clippings • Flower & hedge trimmings • Leaves & branches • Lumber, scrap wood, & plywood types (not painted or treated) • Weeds Food Scraps (Any putrescible matter produced from human or animal food production, preparation, & consumption activities. No produce stickers.) • Bread, rice, & pasta • Cheese & dairy • Coffee filters • Flowers & herbs • Fruits & vegetables • Meat, bones, poultry, seafood, & soft shells (e.g. lobster, crab, & shrimp) Food-Soiled Paper (All items must be 100% plant-fiber based with NO petroleum, wax, or bio-plastic coating, liner, or laminate. Must be soiled ONLY with food and/or drink liquids. *No bathroom tissue, toilet paper, or feminine products.) • 100% fiber based, compostable to-go containers & serving-ware • Egg cartons (paper) • Food-stained paper • Paper napkins & kitchen towels* • Paper food boats • Paper packaging • Paper plates & cups • Pizza boxes Non-Acceptable Organics (Please place in the trash.) • Rags, clothing, or other cloth/textiles (“plant-fiber” means paper, not textiles.) • Bio-solids or bathroom waste, including tissues or bathroom paper towels. • Disposable diapers • Pet waste • Tea bags and tea bag wrappers • Lint • Hard shells (e.g. clams, mussels, & oysters) • Cacti, succulents, and palm fronds *Athens does not accept paper towels and/or napkins used to clean surfaces due to the use of nonfood related chemicals and potential toxins. 534 15 Black Container Acceptable Items Acceptable materials in the black container include:• Disposable diapers• Empty aerosol cans• Pet Waste• Unusable clothing & fabric• Tea bags and tea bag wrappers• Lint• Hard shells• All foam• Garden hoses & plastic tarps• Bubble wrap• Latex and plastic gloves• Empty motor oil• All receipts• Bathroom & facial tissues• Gift wrap with plastic or metal• Hardback books• Laminated or plastic coated paper• Padded or Tyvek-type envelopes• Photographs• Candy & protein bar wrappers• Chip bags• Disposable coffee cups & lids• Juice and food pouches • Bags with a mix of metal & plastic Blue Container Acceptable Items Acceptable materials in the blue container include:• Paper products not included in the organics stream• Printing and writing paper• Commingled recyclables such as aluminum/tin foil and trays (clean)• Aseptic containers, juice boxes and milk cartons• Cans (aluminum, bi-metal, and tin)• Cardboard• Envelopes• Glass bottles and jars• Junk mail; magazines• All metal• Newspaper • Office paper• Paperback books• Paper grocery bags• Clean plastic bags, film plastic (grocery, dry cleaning)• Plastic containers (1-7)• Shredded paper (bagged)• Wrapping paper (with no metal) NO! / ¡NO! LANDFILL ONLY SOLO BASURA PARA EL VERTEDERO Your Zero Waste Partner (888) 336-6100 AthensServices.com NO! / ¡NO! RECYCLABLES ONLY SOLO RECICLABLES NO LIQUIDS OR FOOD/ NO LIQUIDOS O COMIDA *Bagged shredded paper / papel triturado en bolsa Your Zero Waste Partner (888) 336-6100 AthensServices.com Container Colorization Athens will work with your City to determine the best approach to phase in new, SB 1383 compliant containers. 535 16 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy APPENDIX B Outreach and Education Athens Services currently provides outreach and education for customers subject to AB 341, AB 1826 and AB 827. SB 1383 will have an impact on all customers, and much effort is needed to help customers with this transition. Athens Services can provided enhanced outreach and education efforts to help the City comply with SB 1383. Outreach will be provided through print, in-person and electronic communication on an annual basis. Outreach materials will be translated into the appropriate languages spoken in your community. Athens will also keep copies of all outreach provided and will track and document which customers received the outreach. This includes tracking all social media activity. Content that will be communicated to customers include: 1. How to properly sort waste 2. How to prevent organic waste generation 3. Methane reduction benefits 4. Public health and safety & environmental impacts 5. Edible Food Recovery 6. Self-haul requirements (if applicable) Below is a summary of the Athens outreach plan for your City. Recycling Coordinators Athens’ Recycling Coordinators (RC’s) are trained recycling exports with a niche for conducting outreach and education. Recycling Coordinators will lead the outreach efforts in your City by utilizing a variety of tools to engage with customers. Whether in-person or virtually, recycling coordinators will ensure the community has the right resources for a successful recycling and organics program. RC’s will provide site visits to all commercial and multifamily customers and conduct waste assessments, which will include: • Comprehensive waste audit • Detailed waste management and recycling strategies • Customer personnel training • Effective signage, location placement, and maintenance suggestions • Container types, sizes, and pick-up frequency recommendations Many customers cannot be onsite or do not feel comfortable participating in onsite assessments, given concerns that have arisen due to COVID-19. Our RC team can conduct virtual waste assessments where we engage the customer over the phone or through a Zoom meeting to go through the site visit’s details and our findings. We ask the customer several questions about their business or multifamily site, gather and document this information for future use, and make recommendations on service levels. 536 17 We also have the ability to video record our onsite waste assessments for clients, when necessary. The video will include suggestions and be available to the appropriate parties. We will also follow up with additional input and resources. The RC and client can review the video together or separately. This approach is essential for our multifamily accounts, which might have out-of-state managers or have COVID-19 (or other health concerns) limitations. As part of our customer visits, customers will receive recycling signage and training on additional resources. Athens’ recycling resources are available on www.athensservices.com/outreach/ for download, promoted via social media, distributed with e-mail blasts or mailed based on the customer’s preferred method of contact. Outreach & Education App Athens has developed an Outreach and Education application “App” to help track customer interactions. The application was designed specifically for use in the field by Recycling Coordinators. The app collects customer information, along with additional vital information pertaining to the waste and recycling program. We will use the data to target specific customers for outreach on recycling, organics, contamination, and edible food recovery. Data Collected by the Outreach and Education App • Contact information, service and billing address, service levels, and routing information • Date and Time of trainings • GPS link to service and bin location • Photos of bin locations, enclosures, and inside the containers. • Container information, including lock lids, custom bin sizes, and measurements • Site information, including any safety hazards, gate codes, or special access instructions. • Customer implementation of recycling and organics signage and interior containers for employee, tenant, and customer use. • Reasons why customer refused outreach material or services offered. • Contamination training, including participants and pictures • Types of material in waste stream the customer throws away and estimated volumes. • Customer’s interest and previous attendance in recycling and organics training • AB 1826 and SB 1383 compliance questions, including if they have any implementation issues, refuse service, and if they are or should be participating in edible food recovery. The data collected can be utilized for regulatory compliance of a multiple recycling mandates. 537 18 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy Print & Electronic Tools Our marketing team has perfected digital marketing for community engagement. Today, Athens’ social media averages an industry-leading 17% follower engagement. This figure is not only higher than the industry average but also higher than the national average. We will utilize this high engagement to connect with the community and other prominent organizations to convey important dates and service information. Athens is currently active on the following platforms: While we prioritize digital marketing to minimize paper consumption, we realize that some customers prefer mailers and handouts. Therefore, our marketing team will also develop community hard copy collateral to help educate your residents and businesses. Athens will provide quarterly newsletters to both residential and multifamily customers by mail in their bill or electronically. Newsletter content will include service notifications and tips on proper sorting and usage. These newsletters will contain legislative information, as well as general information about the City’s overall waste and recycling program, including food recovery programs. Athens will continue to distribute our annual legislative brochure as a billing insert, by mail or electronically. Athens has developed video content containing various waste and recycling training topics, and we continue to grow our content library. These videos will be available to all customers to help further provide support as needed. Interactive Ultimate Recycling Guide Athens’ “What Goes Where Guide” is your interactive zero-waste guide for correctly reusing, recycling, and composting unwanted items. In collaboration with Recyclist, Athens has developed this innovative guide to help customers and communities identify the proper stream for more than 350 materials types. The interactive zero-waste guide provides: • User friendly and promotes recycling • Fully customizable and tailored to City needs • Illustrate tips on reusing, reducing, and recycling of 300+ everyday items • Educational content about disposal options, safe handling, and alternative recycling options • Local information about drop-off and collection programs • Work seamlessly across devices with no download required • Provide mobile-friendly information with SEO (Search Engine Optimization) • Allow users to stay up-to-date with accurate information • Update easily and quickly given editorially supported services • Quantify utilization and traffic with Google Analytics Instagram Facebook LinkedIn YouTube Twitter 538 19 APPENDIX C Contamination Monitoring: Route Audits SB 1383 places the responsibility of contamination monitoring on the jurisdictions. Athens is able to help with this requirement by providing quarterly route reviews of organic collection routes. Reviews are conducted to monitor contamination levels in waste stream. Athens has a trained team of professional auditors dedicated to route reviews. Athens recently developed new technology that enhances the process. Route Review Process On a quarterly basis, the Athens will audit approximately 20% sampling of organic routes, both residential and commercial. A residential route has approximately 1,000 customers per day, therefore we will target a sampling of roughly 200 customers per day per route. Commercial organics routes have roughly 130 stops per day. There we will target approximately 30 customers per route per day. Route Review App Route reviews are completed utilizing a custom app to help with this process. The app is similar to the Outreach and Education app. The Route Review app enables our auditor team to track customers volumes and contamination levels. The app guides auditors through a series of questions. The app also has the ability for our team to upload photos of audited locations and containers, which will be made available to the City for CalRecycle reporting purposes. Below is a screen shot of the route review app: 539 20 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy Route Review Dashboard In addition to the Route Review app, Athens has developed a user friendly dashboard that summarizes and populates the data collected from the route reviews. This dashboard contains information on the total number of customers audited, total number of containers contaminated, the contamination percent, as well as a map of the areas audited. This dashboard will be made available to the City, for regular monitoring. Athens will store and manage this data on behalf of the City and provide the data needed for the City to submit to CalRecycle for required reporting. Notice of Violation The information gathered from the quarterly route reviews will help Athens’ Outreach Team target outreach efforts to minimize contamination, and will provide the backup validation to issue violation notices as required under SB 1383. This notice will be issued on behalf of the City to the generator who is contaminating the waste stream. It will include information regarding the contamination and will include photographic evidence of the violation. Notices will be emailed or mailed based on the customer’s preference. 540 21 APPENDIX D Data Management & Reporting Athens Services utilizes its Soft-Pak customer database to monitor and report activity. Utilizing customized tracking codes specific to your City, Athens will monitor outreach and education and incidents of contamination. Using Athens’ fully customized recycling coordinator mobile app, and route review app, Athens can quickly and accurately report site visits, waste assessments, and service level adjustments in our Soft-Pak database. Container Contamination Reporting: SB 1383 requires jurisdictions to provide record keeping for container contamination. Athens will provide the support needed to the City for this requirement. Athens will keep copies of the following, which will be available to the City upon request: 1. A description of the jurisdiction’s process for determining the level of container contamination. 2. Documentation of route reviews conducted. 3. Copies of all notices issued to generators with prohibited container contaminants. 4. Documentation of the number of containers where the contents were disposed due to observation of prohibited container contaminants. 5. The number of hauler route reviews conducted. 6. Description of the process for determining the level of contamination. 7. Summary report of non-collection notices and/or contamination processing fee assessment notices issued, which for each notice shall include the date of issuance, customer name, and service address. 8. A record of each inspection and contamination incident, which shall include, at a minimum: • Name of the Customer • Address of the Customer • The date the contaminated Container was observed • The staff who conducted the inspection • The total number of violations found and a description of what action was taken for each • Copies of all notices, and enforcement orders issued or taken against generators with prohibited container contaminants • Any photographic documentation or supporting evidence 9. Documentation of the total number of containers disposed of due to observation of prohibited container contaminants. 10. A list of all customers assessed contamination processing fees reported separately by residential, multi- family, and commercial premises customers and including the customer name, customer address, and reason for the assessment of the contamination processing fee, and the total number of instances contamination processing fees were assessed in the month and the total amount of fees collected in the month. 541 22 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy Complaint Reporting Athens will maintain a record of all SB 1383 non-compliance complaints and responses to track the following information: 1. Total number of complaints received and total number of complaints investigated. 2. Copies of documentation recorded for each complaint received, which shall at a minimum include the following information: • The complaint as received • The name and contact information of the complainant, if the complaint is not submitted anonymously • The identity of the alleged violator, if known • A description of the alleged violation; including location(s) and all other relevant facts known to the complainant • Any relevant photographic or documentary evidence submitted to support the allegations in the complaint 3. Copies of all investigation reports, which shall include at a minimum: • The complaint as received • The date Athens investigated the complaint • Documentation of the findings of the investigation • Any photographic or other evidence collected during the investigation • Athen’s recommendation to the City on whether or not the entity investigated is in violation of SB 1383 based on the investigation Generator Waivers Athens will provide a report that documents each generator waiver request. This report will identify the generator name and service address, the type of waiver requested, and the status of the waiver (accepted, denied, pending). Outreach Reporting 1. A copy of all education and outreach materials provided to generators, but not limited to: flyers, brochures, newsletters, invoice messaging/billing inserts, and website and social media postings. 2. A record of the date and to whom the information was disseminated or direct contact made, in the form of a list that includes: the generatorʹs name or account name, the type of education or outreach received; the distribution date, and the method of distribution. 3. The number of organic waste generators and commercial edible food generators that received information and the type of education and outreach used. 4. Athens will maintain a record of the date, a copy of the any mass distribution mailings or billing inserts, and the type and number of accounts that received the information. 5. A copy of electronic media, including the dates posted of: social media posts, email communications, or other electronic messages. 542 23 6. Records of all technical assistance efforts conducted, including: • The name and address of the customer/generator receiving technical assistance, and account number, if applicable. • The date of any technical assistance conducted and the type of technical assistance, including, but not limited to: site visits, waste assessments, compliance assessments, direct outreach, workshops, meetings, events, and follow-up communications. • A copy of any written or electronic educational materials distributed during the technical assistance process. 7. A copy of all special event reports submitted to the City in accordance with Section 4.4.6 of the Agreement. Food Recovery Program Support 1. The total number of generators classified as Tier 1 and Tier 2 commercial edible food generators located within the City. 2. The number of food recovery services and food recovery organizations located and operating within the City. 3. The number of generators participating in the edible food recovery program. APPENDIX D (cont.) Data Management & Reporting 543 24 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy APPENDIX E Procurement Support Commencing January 1, 2022, a jurisdiction shall annually procure a quantity of recovered organic waste products that meets or exceeds its current annual recovered organic waste product procurement target as determined by CalRecycle’s procurement calculation. Athens has confirmed it can assist your City in meeting the procurement requirements through the renewable natural gas utilized in our collection vehicles and through providing compost to your City. Renewable Natural Gas Athens has eliminated 10,549 metric tons of climate-altering greenhouse gas emissions since 2012, which is the equivalent of: • 26,176,000 miles driven by an average passenger vehicle • 1,700 Homes Powered by electricity for one year • 1,187,000 Gallons of gasoline consumed Investing in Clean Technology and Renewable Fuels Our collection fleet is currently over 90% natural gas vehicles (NGVs) – the cleanest refuse vehicle commercially available. In 2008, we committed to never adding a diesel vehicle to our collection fleet. We are committed to retiring all diesel vehicles and making our entire collection fleet 100% natural gas vehicles by 2023. Renewable Fuels Over four years ago, Athens began investing in renewable natural gas (RNG)—a low carbon, renewable fuel that is made from existing organic waste streams. As of 2019, renewable natural gas now composes 89% of our total natural gas fuel use, which will continue to increase in the coming years. Why Does Athens Use Natural Gas Vehicles? • Reduce Emissions: The newest natural gas engines produce 90% fewer NOx emissions than the EPA’s current heavy-duty emission standard. • Minimize Maintenance: NGVs have no messy Diesel Particulate Filter (DPF) regeneration or waste and have no diesel exhaust fluid. • Quieter in Communities: NGVs have engines 10 decibels quieter than their diesel equivalent, reducing noise pollution in neighborhoods. • Minimal Downtime: NGVs can run 600+ miles of daily operation without compromise. • Safer for Residents and Drivers: When compared to traditional diesel vehicles, natural gas vehicles provide a safer experience for drivers and residents by eliminating exposure to diesel fumes and odor. • Utilize Locally Produced Fuel: NGVs, when fueled with RNG, utilize a renewable fuel produced in-state. 544 25 What is Renewable Natural Gas? Renewable natural gas (RNG) is a renewable fuel made by harnessing methane emitted by organic waste. The methane can be harnessed from food and green waste, wastewater treatment plants, landfills, dairy farms, and forest management. The methane is captured, cleaned, and injected into the existing natural gas pipeline so that it can be transmitted and stored anywhere in the state. Once processed, RNG is a drop-in replacement for conventional natural gas and can be used to fuel natural gas vehicles. Composting Athens recently invested in a multi-million dollar redevelopment effort of our American Organics facility in preparation of the upcoming SB 1383 mandate. To read more about our facility and how it operates, please refer to the attached article https://athensservices.com/wp-content/uploads/2020/08/CASP-White-Paper- Final.pdf. American Organics American Organics is another facility in the Athens family that is on the cutting edge of tech innovation. Located in Victorville, the site recently completed major renovations at the 700 tons per day facility, with the ability to divert 85% of organic material. The redesigned facility was converted from a traditional windrow, outdoor windrow composting system to a Covered Aerated Static Pile (CASP) system. The renovation included a 22,000-square-foot, covered processing center that will process 50 tons per hour on a fully automated processing line. American Organics material is Certified Organic by CDFA. It is OMRI certified, ensuring that both Organic and Conventional operations can utilize it, and thus our material is available to 100% of users within the category. We are a member of the United States Compost Council and maintain certification using their authorized third- party laboratory for analytical testing or labs. These labs are a critical tool for product evaluation and quality. 545 26 Athens Services: SB 1383 Short-Lived Climate Pollutant Reduction Strategy APPENDIX F Food Recovery Support Athens can provide support to the City with their Food Recovery program. Below is a summary on how Athens can partner. No later than January 1, 2022, Athens will identify all commercial customers that meet the definition of Tier 1 and Tier 2 Commercial Edible Food Generators and provide a list of these customers to the City, which shall include: • Customer name • Service address • Contact information • Tier One or Tier Two classification • Type of business (as it relates to the Tier One and Tier Two Commercial Edible Food Generator definitions). Athens will work with the City to help identify food recovery partners that can provide support to Tier 1 and Tier 2 customers. The list of qualified food recovery partners will be placed on the Athens food donation webpage, for customers to access. You can view this information at www.athensservices.com/fooddonation/. At least annually, Athens provide Commercial Edible Food Generators with the following information: • Information about the City’s Edible Food Recovery program • Information about the Commercial Edible Food Generator requirements • Information about Food Recovery Organizations and Food Recovery Services operating within the City, and where a list of those Food Recovery Organizations and Food Recovery Services can be found • Information about actions that Commercial Edible Food Generators can take to prevent the creation of Food Waste Athens will also provide the education information required by SB 1383 by including it with regularly scheduled notices, education materials, billing inserts, or other information disseminated to commercial businesses. An example of our food recovery outreach material is included below: 546 27 SERVICE | PEOPLE | ENVIRONMENT 547 City Council Hybrid Meeting (Closed Session - 5:00 PM and Open Session - 6:00 PM) 05-10-22 17:00 Agenda Name Comments Support Oppose Neutral b. REPORT 22-0299 CONSIDERATION OF PROPOSALS REGARDING THE EXTENSION OF AGREEMENTS BETWEEN THE CITY OF HERMOSA BEACH AND ARAKELIAN ENTERPRISES, INC (DBA ATHENS SERVICES) FOR SOLID WASTE MANAGEMENT SERVICES AND STREET SWEEPING AND CLEANING SERVICES (Environmental Programs Manager Douglas Krauss) 8 0 6 0 Sentiments for All Agenda Items The following graphs display sentiments for comments that have location data. Only locations of users who have commented will be shown. Overall Sentiment Agenda Item: eComments for b. REPORT 22-0299 CONSIDERATION OF PROPOSALS REGARDING THE EXTENSION OF AGREEMENTS BETWEEN THE CITY OF HERMOSA BEACH AND ARAKELIAN ENTERPRISES, INC (DBA ATHENS SERVICES) FOR SOLID WASTE MANAGEMENT SERVICES AND STREET SWEEPING AND CLEANING SERVICES (Environmental Programs Manager Douglas Krauss) Overall Sentiment Ryan Krueger Location: 90254, Hermosa Beach Submitted At: 2:25pm 05-10-22 Do not renew any contract or give concessions until they respond to customer complaints. They continue to backup their trucks and sweeper on the Strand from Herondo to 2nd Street each morning before 8:00 am. Citizens have written about this annoyance and Athens has continued to ignore the residents. Our City Manager has refused to give Athens any push back and when contacted by citizens, Athens is unsympathetic claiming that 548 they have the legal right to do this. I am certain the problem could be resolved if the Council required them to do it. Dean francois Location: Submitted At: 2:01pm 05-10-22 This city council should not renew the Athens contract. I am well aware, even more so than ever after knocking door-to-door in my recent city council campaign, there have been numerous complaints from many about the services of Athens and the city does not have a system to track nor the ability to correct the complaints. This is a serious problem and should not be tolerated anymore. I assured residents that this should be addressed at renewal time and a complaint tracking system be implemented at their expense. We should have a new request for proposal, and go out to bid and ensure that a new contract has incentives and penalties for correcting / not correcting problems, as most municipalities do. The expense of going out for a bid can be reimbursed to the city by the winning bidder. My own experience is that one gets nowhere when they call Athens and again there is not much help from the city. It is also rather disturbing that we have not migrated towards modern vehicles that can accommodate our needs including quieter Electric vehicles. There are a number of complaints that people have. Too many to list. The most common include: 1) street sweepers not being able to turn around at the end of streets such as The Strand, They go in reverse with strong Backup noise early in the morning. 2) Many loud noises very early in the morning hours. 3) other complaints of noise pollution 4) dumpsters overflowing, 5) not providing dumpster capacity, forcing garbage piling up illegally outside of the dumpsters. 6) dumpsters left in the street blocking traffic, interfering with line of sight problems and safety in our streets. These problems are not new to the city. However, the city has no documentation of the amount or complexity of the problems. The same problems have been addressed by myself and others the last time this contract was up for renewal and nothing was done. The problems were not addressed at all and the contract was renewed. We are now today in the same place. Please take action to correct this inequity and give us citizens the service we deserve. Thank Robert Aronoff Location: 90254, Hermosa Beach Submitted At: 1:25pm 05-10-22 Athens should not get any further contract extensions or concessions until it stops backing up its trucks and sweeper on the Strand from Hernando to 2nd Street each morning before 8:00am, or anytime. Citizens have written the past about this annoyance and Athens has continued to ignore the residents. They could easily turn their vehicles around at Hernando and at several spots all the way to 2nd Street. Our City Manager has refused to give Athens any push back and when contacted by citizens Athens is unsympathetic claiming that the have the legal right to do this. I am certain the problem could be solved if the Council required them to do it. Athens’ predecessor was able to accomplish the task without disturbing all the residents on the Strand. Howard L Location: Submitted At: 11:55am 05-10-22 Council, This is an additional supplemental to the one I submitted earlier. The RFP should also include the consideration of "SINGLE STREAM" as the prior bidders had even indicated was more practical. Athens at the time indicated they sorted all the trash whether recycled or otherwise. Having three sets of ULTRA NOISY, DANGEROUS, PAVEMENT DESTROYING, POLLUTING, ENERGY WASTING trash trucks going down all the 30+ miles of streets in this town every week is technologically ridiculous in 2022. The Trash Companies should be the ones sorting every ounce of trash. Time to move into the 21st Century and end this nonsensical way of handling Trash. 549 BOTTOM LINE, RFP IS THE ONLY REAL OPTION WITH THIS ITEM. test test Location: Submitted At: 12:26am 05-10-22 test test Dan Woodside Location: 90254, Hermosa Beach Submitted At: 5:04pm 05-09-22 Athens needs to be held accountable for their terrible customer service and entitled attitudes. A city contract is not a license to be rude. Time to fix this. Kevin Schmitz Location: 90254, Hermosa Beach Submitted At: 11:46pm 05-08-22 I’ve lived on the Strand for 12 years and I’m fed up with Athens. Athens does not provide any recycling bins on the beach as their predecessor did. 90% of beach trash can be recycled but e everything is going to landfills. Athens should not get any further contract extensions or concessions until it stops backing up its trucks and sweeper on the Strand from Hernando to 2nd Street each morning before 8:00am, or anytime. Citizens have written the past about this annoyance and Athens has continued to ignore the residents. They could easily turn their vehicles around at Hernando and at several spots all the way to 2nd Street. Our City Manager has refused to give Athens any push back and when contacted by citizens Athens is unsympathetic claiming that the have the legal right to do this. I am certain the problem could be solved if the Council required them to do it. Athens’ predecessor was able to accomplish the task without disturbing all the residents on the Strand. Robert Aronoff Location: Submitted At: 1:28pm 05-08-22 Athens response to customer complaints is horrible. They have a bad attitude and their contract should not be renewed. 550 From:Howard Fishman To:Myra Maravilla Cc:City Clerk Subject:Supplemental to Athens Trash Contract Date:Tuesday, May 10, 2022 12:17:37 PM Dear City Clerk Appreciate adding this to the above staff report. Thanks Please conduct an RFP for trash services and not simply hand over this lucrative contract to Athens Trash. I was on the City Council when this contract was awarded to Athens. Both Jeff Duclos and myself visited and analyzed every competing trash hauler proposal to ensure residents and businesses would receive the best pricing and quality service. It was only through this RFP process that we were able to do this. Further, there is no cost to conduct this RFP. Transparency and competition is crucial to getting the best trash deal possible for our community Howard Fishman 1133 7th Place Hermosa Beach CA 90254 310 422-1101 551 Page 1 of 2 Council, RE: Municipal Matters Item-B (Athen’s Contract / RFP) May 10, 2022 With all due respect kindly do not get sucked into not placing this lucrative (Presently Athens) trash contract out to bid via a real RFP (Request For Proposal) process.. Nothing will preclude Athens from putting in a bid, along with other companies. The cost for the RFP process will be borne by the winning bidder if the RFP process is set up correctly. You have today; no one in city who has the expertise to negotiate with the professionals of Athens who negotiate routinely with many bureaucrats and politicians in many cities. When Athens received this contract there were three very good bids. Also the City Councilmembers at that time all took their time to do their due diligence and didn’t turn it completely over to city bureaucrats, who don’t even live in the city, to do the nuts and bolts of real negotiating and gathering of information. There were also real Public Hearings, many, not the kind of sham Public Hearings that are the hallmark of today’s Hermosa Beach City Council and City Manager Suja Lowenthal and as instituted the past 4 awful years. Your Council is the absolute worst in that regard. DO NOT COMPARE HERMOSA BEACH TRASH RATES with other cities!. Hermosa Beach has many small units in a very compact area. The other cities have larger properties with greater trash output per property and with many other situations that make them more expensive to haul trash from per residential unit or business. DON’T USE THE TIRED SMOKE AND MIRRORS and MONKEY SEE MONKEY DO ANALYSIS. THIS IS NOT SANTA MONICA, LONG BEACH. I can see already that what is written in this staff report is little more than convoluted gobbled-gook This matter should be placed out with a real RFP, so why in Hell is anything else even proposed? WHY? You should get at least four solid bids and then and only then know what the true new contract should be, especially after having real public hearings and doing your own real non-lazy due diligence in representing your constituents. Stop giving away the residents and businesses interests with these insider/slider bureaucrat negotiated bids. People are wondering more and more if Hermosa Beach is turning into a Bell, California? If you on the City Council are too lazy to work on the proposals, i.e., go out to the trash companies that give bids, to see their operations, learn what’s going on, as the prior councils have done, than you should get off the council. You’ve met the enemy. It’s you and your own laziness. You’re not serving the people. You’re only grifting, and acting important, while fooling no one. Stop with taking the lazy-ass, easy course. And while you’re at it, on your other matters item / future agenda items, direct that the more-than-lucrative Million-Dollar-Plus per 552 Page 2 of 2 year City Attorney Services Contract billings are to also be placed out to bid via a real RFP process. There is much, much, much for way, way, way too long a far-to-cozy relationship with your for 28-years never-rebid City Attorney Services and all the newbies Michael Jenkins has been morphing into the city to perhaps take over the no- bid operation as he perhaps retires before he’s as ancient as I. With three attorneys still sitting on the City Council itself (and that’s 3 too many) Cozy is perhaps an understatement. These are my views as one who is tired of seeing this present anti-transparency Hermosa city council becoming lazier and lazier and with your City Manager, Suja Lowenthal, apparently being the laziest of all, perhaps also spending too much city time picking out her next outfit at Nordstrom’s to wear to a meeting, now that she may feel obligated to appear at some in person again. How you on the City Council can be so lazy at such young ages (except for perhaps Mary being older) is beyond me. Also if you have too much outside work to do, than that ’s another reason to get off the Council, and use what extra time you have for your family rather than pretending to serve Hermosa Beach. YOU SHOULD NOT BE ON THE HERMOSA BEACH CITY COUNCIL if you don’t have the time to do the job right. And you should not be City Manager grifting $330 Thousand or more in pay and benef its if you are not working a 40 hour PLUS week for the city doing real work, not just sitting up in a luxury home in RPV making lik e you are doing city work. Thank You, Howard L. 553 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0297 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 APPROVAL OF A LETTER SUPPORTING SOUTH BAY REGIONAL HOUSING TRUST LEGISLATION AND BUDGET REQUEST (Interim Community Development Director Angela Crespi) Recommended Action: Staff recommends City Council: 1.Authorize the Mayor to sign a letter of support (Attachment 1)on behalf of the City regarding the South Bay Cities Council of Government (SBCCOG)South Bay Regional Housing Trust Legislation and Budget Request,which would provide loans to facilitate the construction of affordable housing in participating South Bay cities; and 2. Submit the letter to key legislators and local stakeholders. Executive Summary: The South Bay Cities Council of Government (SBCCOG)is considering the creation of a regional housing trust,specific to South Bay cities,through a joint powers authority (JPA)to fund and finance the planning and construction of affordable housing.If created,the South Bay Regional Housing Trust could facilitate affordable housing in participating South Bay cities by making the construction of affordable housing more appealing to developers.The SBCCOG is seeking conceptual support for the proposed legislation and request for seed funding from the state budget prior to its introduction in June 2022. Background: As a leader in exploring regional issues,the SBCCOG has been studying the matter of affordable housing,evaluating various regional housing trust models,and seeking to determine whether SBCCOG should consider moving forward with a subregional/multijurisdictional regional housing trust.In evaluating this issue,the SBCCOG has examined the San Gabriel Valley Council of Governments (SGVCOG) formation of the San Gabriel Valley Housing Trust Fund (SGVHTF). Established two years ago through Senate Bill (SB)751,the SGVHTF allows member San Gabriel Valley cities to bring additional affordable housing resources to the San Gabriel Valley region using funding from both state and federal sources.The SGVHTF has received at least $21,000,000 from the State and $3,000,000 from the federal government for 2021,as well as some funding from City of Hermosa Beach Printed on 5/6/2022Page 1 of 4 powered by Legistar™554 Staff Report REPORT 22-0297 the State and $3,000,000 from the federal government for 2021,as well as some funding from Measure H and Regional Early Action Planning funds from Southern California Association of Governments.The SGVHTF has funded two projects of 71 units and are working on two more projects of 175 units.An additional 14 projects containing 800 additional units are in the pipeline.All units built under the SGVHTF to date are affordable housing. At its April 11,2022 meeting the SBCCOG Board of Directors approved a motion to move forward on the South Bay Regional Housing Trust in the following ways: ·Support requesting State legislation to form a South Bay Regional Housing Trust; ·Support requesting seed funding from the state budget; ·Direct Board Members to return to their respective city councils to find out if their city is interested in being a charter member of a regional housing trust should it be created; ·Form a subcommittee of the Board to work on bylaws and Joint Powers Authority (JPA) documents; ·Cities will submit letters to the SBCCOG as soon as possible informing of their city’s intention to participate; and ·Board Member and Hermosa Beach Councilmember Stacey Armato will present to city councils as requested to answer questions and explain the trust in further detail. At its December 21,2021 meeting,City Council adopted a comprehensive Amendment to the Housing Element for the 2021-2029 Planning Period.The adopted Housing Element Policy Plan includes a commitment to “investigate opportunities to either establish a new housing trust fund or participate in existing trust fund programs in order to expand the availability of financial assistance for affordable housing.” Past Council Actions Meeting Date Description December 21, 2021 City Council adopted a comprehensive Amendment to the Housing Element for the 2021-2029 Planning Period Discussion: The SBCCOG is considering the creation of a regional housing trust,specific to South Bay cities, through a joint powers authority (JPA)to fund and finance the planning and construction of affordable housing projects.If created,the South Bay Regional Housing Trust could facilitate affordable housing in participating South Bay cities by making the construction of affordable housing more appealing to developers. City of Hermosa Beach Printed on 5/6/2022Page 2 of 4 powered by Legistar™555 Staff Report REPORT 22-0297 A seven-member Board of Directors consisting of five SBCCOG board members and two local experts with experience in housing or homelessness would govern the South Bay Regional Housing Trust.The SBCCOG Board of Directors would appoint members to the housing trust board and staffing would likely be provided through a contract with the SBCCOG.Membership in the South Bay Regional Housing Trust JPA would be voluntary and open to cities within the SBCCOG. Administration of the South Bay Regional Housing Trust would likely be funded through a dues structure paid by the member cities,however,the exact structure and amount is still to be determined.It is also possible that state and federal earmarks and grants may be utilized to offset some of the cost.Outside of the administrative costs,the trust would be otherwise funded through state and federal budget requests (“earmarks”), state and federal grants, and through private funding. Functionally,the South Bay Regional Housing Trust would only consider a development that has the approval of a member city.The SBCCOG also envisions that the trust could also address the “sustainability”of the housing-encouraging opportunities to promote walking,cycling,and travel using zero-emission local use vehicles. The SBCCOG met with staff from Senator Ben Allen’s and Assembly Member Al Muratsuchi’s offices to discuss housing trust formation legislation and a budget request.Both offices indicated support for the concept;intention to identify legislative avenues that could be pursued to create a South Bay Regional Housing Trust;and explore funding opportunities in the state budget.At this time,SBCCOG legal counsel as well as their Legislative Committee have begun drafting the JPA documents,by- laws,and other administrative procedures needed to form the South Bay Regional Housing Trust. The proposed legislation is included as Attachment 3. Staff recommends City Council discuss and provide direction regarding a letter of support and,if possible, whether Council would be interested in being a charter member of the regional housing trust should it be created. General Plan Consistency: This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Governance Element Goal 1. A high degree of transparency and integrity in the decision-making process. Policy: ·1.6 Long-term considerations.Prioritize decisions that provide long-term community benefit and discourage decisions that provide short-term community benefit but reduce long-term City of Hermosa Beach Printed on 5/6/2022Page 3 of 4 powered by Legistar™556 Staff Report REPORT 22-0297 and discourage decisions that provide short-term community benefit but reduce long-term opportunities. Goal 4. A leader and partner in the region. Policies: ·4.1 Regional governance.Play an active role in the South Bay Cities Council of Governments,the Southern California Association of Governments and other regional agencies to protect and promote the interests of the City. ·4.3 Collaboration with adjacent jurisdictions.Maintain strong collaborative relationships with adjacent jurisdictions and work together on projects of mutual interest and concern. Fiscal Impact: There is no fiscal impact associated with the recommended action. Attachments: 1.Draft Letter of Support 2.Frequently Asked Questions - SBCCOG 3.Proposed South Bay Regional Housing Trust JPA Formation Legislation 4.Link to December 21, 2021 Staff Report Respectfully Submitted by: Angela Crespi, Interim Community Development Director Noted for Fiscal Impact: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 4 of 4 powered by Legistar™557 City of Hermosa Beach Civic Center, 1315 Valley Drive, Hermosa Beach, CA 90254-3885 May 10, 2022 The Honorable Drew Boyles, Board Chair and Members of the Board South Bay Cities Council of Governments 2355 Crenshaw Blvd., Suite 125 Torrance, CA 90501 Re: Support for South Bay Regional Housing Trust Legislation and Budget Request Dear Chair Boyles and Members of the Board: On behalf of the City of Hermosa Beach, I offer our support in concept for legislation requested by the South Bay Cities Council of Government s’ (SBCCOG) Board of Directors that would create a South Bay Regional Housing Trust. Our city is also supportive of the budget request for seed funding. Residents throughout the State face an unprecedented housing affordability crisis. Our city intends to work with the SBCCOG as it further explores the feasibility of a regional housing trust that could facilitate the development of affordable housing in participating South Bay cities . [Optional addition if Council supports joining the South Bay Regional Housing Trust in concept: At this time, understanding this is not a firm commitment, our city expects to be a charter member of the trust.] We look forward to the final bill language as we further explore the possibility of joining the South Bay Regional Housing Trust should it be created. Sincerely, Michael Detoy, Mayor City of Hermosa Beach Copy: Ben Allen, Senator, Senator.Allen@Senate.CA.Gov Al Muratsuchi, Assemblymember, assemblymember.muratsuchi@assembly.ca.gov Jorge Morales, Legislative and Governmental Affairs Consultant, California Contract Cities Association, jorge@contractcities.org Jeff Kiernan, Regional Public Affairs Manager, Cal Cities jkiernan@calcities.org 558 QUESTIONS & ANSWERS: Question: Would moving forward with the formation legislation commit a city to participating in the SBRHT? Answer: No. Moving forward with formation legislation is the first step. Seeking official members would be a subsequent process facilitated by the SBCCOG. Question: Would participation in the SBRHT be voluntary? Answer: Yes. A separate Joint Powers Authority would be created and membership to the SBCCOG does not require membership to the SBRHT. Question: Who would operate the SBRHT? Answers: The SBRHT would be governed by a 7-member Board of Directors consisting of 5 SBCCOG board members and 2 local experts with experience in housing and/or homelessness. The SBCCOG board would appoint members to the SBRHT board. In terms of day-to-day operations, it is likely that the SBRHT would contract with the SBCCOG for staffing. The San Gabriel Valley RHT contracts with the San Gabriel Valley COG and it has been a successful model. Question: Does it cost anything to be part of the SBRHT? Answer: There will likely be a dues structure to ensure administrative operations of the RHT. The exact structure and amount a city would pay would be determined at a later date. State/federal earmarks and grants can be used in part for administration, so there may be opportunities to offset some costs. Question: Do other areas have RHTs formed by legislation? Answer: Although legislation is not required, several do because legislation could possibly facilitate the eventual state funding. The San Gabriel Valley COG, Western Riverside COG, and Orange County have all formed their RHTs via legislation. Gateway Cities COG and the cities of Burbank/Glendale/Pasadena have begun the process as well. Question: What would the SBRHT do? Answer: The SBRHT would fund and finance the planning and construction of homeless housing, and extremely low, very low, and low-income housing projects. SBHRT funding would make the construction of affordable housing more appealing to developers. The trust would only consider a development that had city approval. The trust could also address the “sustainability” of the housing –encouraging opportunities to promote walking, cycling, and travel using zero-emission local use vehicles. Question: If a city participates in the SBRHT, can they city get RHNA credit for a project funded through the SBRHT but built in a different city? Answer: No. At this time, state law does not allow for RHNA credit sharing. Question: How would the SBRHT be funded? Answer: Through state/federal budget requests/”earmarks”, state/federal grants, and other opportunities that may arise. 559 Question: Since we are considering a lending model, how would the funds be paid back? Answer: The SBRHT, through loan professionals, would provide funding to a proposed housing project via lower interest loans than the developer would receive through traditional banks or lending organizations. Funds would be repaid to the SBRHT over the term of those loans, which is often less than 5 years. Question: Are there strings attached to the funds from the state/federal government? Answer: State budget earmarks do not have any requirements beyond a timeframe in which the funds should be spent (2yrs). Federal earmarks and federal/state grants may come with additional requirements based on the individual funding agencies and grant programs. An evaluation of the grant and its requirements would be made prior to submittal of an application. Question: Why would a city want to participate? Answer: Cities would have a say in the process and would b e able to leverage funding to build affordable housing within their city, allowing people to live closer to work, increasing quality of life, while also reducing GHG emissions . Cities would also be able to work together to build affordable supportive housing for the region’s most vulnerable populations. For a full list of reasons why a city might participate, see Exhibit 1. Question: Can a city join later or at any time? Answer: As long as there are cities that are interested initially, cities will be able to join at any time. However, joining later will mean that they will not be part of the creation of initial policies such as determining any administrative fees, project selection criteria, etc. NEXT STEPS If the SBCCOG Board chooses to move forward with formation legislation, the Legislative Committee and staff would work with Senator Allen and other South Bay legislators to introduce language, via a spot bill or through an amendment to another proposed regional housing trust bill, to form the SBRHT. Between introduction of the legislation and a signature by the Governor, the Legislative Committee and SBCCOG Legal Counsel would draft JPA documents, by-laws, and other administrative procedures needed to form the SBRHT. During that time, SBCCOG cities would also need to decide if they w ould be willing to participate in the SBRHT. The Board is also asked to approve moving forward with a request for state funding via the budget process to fund the SBRHT. If approved, the Legislative Committee, through its Chair, and staff would meet with Senator Allen and other South Bay legislators to request funding for the SBRHT. RECOMMENDATION Approve moving forward with legislation to form the South Bay Regional Housing Trust and request funding from the State as well as authorizing staff to begin drafting the formation documents. Attachments: Exhibit 1 – 03.2022 Housing Trust Fund Overview Pros & Cons list Exhibit 2 – Proposed South Bay Regional Housing Trust JPA Formation Legislation Prepared by: David Leger 560 Senate Bill No. XXX CHAPTER 670 An act to add Section 6539.6 to the Government Code, relating to joint powers. SB XXX, (Senator). Joint powers authorities: South Bay Regional Housing Trust. The Joint Exercise of Powers Act authorizes 2 or more public agencies, by agreement, to form a joint powers authority to exercise any power common to the contracting parties, as specified. Existing law authorizes the agreement to set forth the manner by which the joint powers authority will be governed. That act specifically authorizes the creation of the Orange County Housing Finance Trust, a joint powers authority, for the purposes of funding housing specifically assisting the homeless population and persons and families of extremely low, very low, and low income within the County of Orange, as specified. This bill would similarly authorize the creation of the South Bay Regional Housing Trust, a joint powers authority, by the County of Los Angeles and any or all of the cities within the jurisdiction of the South Bay Cities Council of Governments, with the stated purpose of funding housing to assist the homeless population and persons and families of extremely low, very low, and low income within the South Bay. The bill would authorize the South Bay Regional Housing Trust to fund the planning and construction of housing, receive public and private financing and funds, and authorize and issue bonds. The bill would require that the joint powers agreement establishing the South Bay Regional Housing Trust incorporate specified annual financial reporting and auditing requirements. This bill would make legislative findings and declarations as to the necessity of a special statute for the South Bay Cities region of Los Angeles County. _________________________________________________________________________________________ The people of the State of California do enact as follows: SECTION 1. The Legislature finds and declares the following: (a) California has an affordable housing crisis, which is especially acute in the South Bay Cities region of Los Angeles County due to the high cost of housing in that area, even in formerly affordable co mmunities. (b) The establishment of the South Bay Regional Housing Trust to receive available public and private funds could help finance affordable housing projects for homeless and low-income populations. SEC. 2. Section 6539.6 is added to the Government Code, to read: 6539.6. (a) (1) Notwithstanding any other law, the County of Los Angeles and any or all of the cities within the jurisdiction of the South Bay Cities Council of Governments may enter into a joint powers agreement pursuant to this chapter to create and operate a joint powers agency to fund housing to assist the homeless population and persons and families of extremely low, very low, and low income, as defined in Section 50093 of the Health and Safety Code, within the South Bay Cities region. (2) The joint powers agency created pursuant to this section shall be known as the South Bay Regional Housing Trust, and shall be created and operate in accordance with this section. (b) (1) The South Bay Regional Housing Trust shall be governed by a board of directors cons isting of seven directors appointed by the governing board of the South Bay Cities Council of Governments. (2) (A) Five members of the board of directors shall be a member of the governing board of the S outh Bay Cities Council of Governments that represents either of the following: 561 (i) A city that is a party to the joint powers agreement. (ii) A County of Los Angeles board of supervisor district that is located wholly or partially within the territory of the South Bay Cities Council of Governments, if the county is a party to the joint powers agreement. (B) Two members of the board of directors shall be experts in homeless or housing policy. (3) The board of directors shall elect a chairperson and a vice chairperson from among its members at the first meeting held in each calendar year. (4) (A) Members of the board of directors shall ser ve without compensation. (B) Members of the board of directors may be reimbursed for actual expenses subject to the approval of the governing board of the South Bay Regional Sustainable Housing Trust . Actual expenses shall be approved before they are incurred. (5) If a vacancy occurs on the board of directors, the governing board of the South Bay Cities Council of Governments shall appoint a qualified individual to fill the vacancy within 60 days of the vacancy. (c) Notwithstanding any other law, the South Bay Regional Housing Trust may do any of the following: (1) Fund the planning and construction of housing of all types and tenures for the homeless population and persons and families of extremely low, very low, and low income, as defined in Section 50093 of the Health and Safety Code, including, but not limited to, permanent supportive housing. (2) Receive public and private financing and funds. (3) Authorize and issue bonds, certificates of participation, or any other debt instrument repayable from funds and financing received pursuant to paragraph (2) and pledged by the South Bay Regional Housing Trust. (d) The South Bay Regional Housing Trust shall incorporate into its joint powers agreement annual financial reporting and auditing requirements that shall maximize transparency and public information as to the receipt and use of funds by the agency. The annual financial report shall show how the funds have furthered the purposes of the South Bay Regional Housing Trust. (e) The South Bay Regional Housing Trust shall comply with the regulatory guidelines of each specific state funding source received. SEC. 3. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitutio n because of the unique circumstances, described in Section 1 of this act, in the South Bay Cities region of Los Angeles County. 562 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0301 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 AWARD A CONTRACT FOR STORM DRAIN CATCH BASIN MAINTENANCE SERVICES TO RON’S MAINTENANCE INC. (Public Works Director Joe SanClemente) Recommended Action: Staff recommends City Council: 1.Award a contract for storm drain catch basin maintenance services to Ron’s Maintenance,Inc. in the amount of $173,351 over four years beginning July 1,2022 and ending June 30,2026 with an option to extend for an additional year; 2.Authorize the Director of Public Works to establish a $10,000 per year project contingency for a total amount of $40,000; and 3.Authorize the Mayor to execute and the City Clerk to attest the proposed agreement subject to approval by the City Attorney. Executive Summary: Following a competitive bid process,staff recommends City Council award the storm drain catch basin maintenance services contract to Ron’s Maintenance,Inc.for $173,351 for a term of four years with the option to extend for an additional year.The previous contract expired and staff recommends award of a new storm drain catch basin maintenance services contract to ensure continued services. Background: The City of Hermosa Beach stormwater system consists of 130 City catch basins,194 County catch basins,53 City-owned infiltration boxes,and 2 Filterra biofiltration boxes.Given staff resource limitations,the City has relied on a maintenance contractor for the provision of storm drain catch basin maintenance services.The contractor is responsible for maintenance of catch basins and filters,transportation/disposal of non-hazardous and hazardous materials,and lab analysis.The cleaning and the frequency of cleanings are mandated by the City’s National Pollutant Discharge Elimination System (NPDES)permit.The amount of debris collected (measured in tons)and frequencies of cleaning are reported annually to the State Water Resources Control Board. City of Hermosa Beach Printed on 5/6/2022Page 1 of 3 powered by Legistar™563 Staff Report REPORT 22-0301 Analysis: On March 24,2022,the City invited storm drain catch basin maintenance contractors to submit proposals through a competitive process for services beginning in FY 2022-23 and ending in FY 2025 -26,with an optional one-year term extension if desired by the City.The Request for Proposals (RFP) was advertised in in the Easy Reader,City website,and on the City’s online bidding platform PlanetBids.A total of three proposals were received in response to the RFP.On May 3,2022,the City Clerk received,publicly opened,and read aloud the results of the submitted proposals.The resulting proposal amounts for the four-year term are summarized below: Proposer Proposal Amount Ron’s Maintenance, Inc.$173,351 United Storm Water, Inc.$374,014 Downstream Services, Inc.$710,047 Based on a review of the submitted proposals and a check of references,staff recommends City Council award a contract to the most qualified and cost-effective bidder, Ron’s Maintenance, Inc. The total base four-year contract amount would be $173,351.The proposal amount includes a three percent annual increase for years two,three,and four.Staff also requests a $40,000 project contingency for additional services, if needed, as detailed in the table below. Fiscal Year Proposal Amount Contingency Total Budgeted Amount 2022-2023 $41,435 $10,000 $51,435 2023-2024 $42,679 $10,000 $52,679 2024-2025 $43,959 $10,000 $53,959 2025-2026 $45,278 $10,000 $55,278 Total $173,351 $40,000 $213,351 General Plan Consistency: This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Infrastructure Element Goal 1. Infrastructure systems are functional, safe, and well maintained. Policy: ·1.8 Minimize recurring repairs.Ensure that recurring repairs to City facilities are minimized by investing in low maintenance materials and performing preventive procedures where available. City of Hermosa Beach Printed on 5/6/2022Page 2 of 3 powered by Legistar™564 Staff Report REPORT 22-0301 Goal 5.The stormwater management system is safe,sanitary,and environmentally and fiscally sustainable. Policy: ·5.5 Stormwater system maintenance.Maintain,fund,and regularly monitor the City’s stormwater infrastructure. Fiscal Impact: The FY 2022-2023 Preliminary Budget includes a request of $82,500 from the Storm Drains Fund for maintenance services,account 161-3109-4201,which is sufficient for the contract amount.Staff would request funding for contract years two,three,four,and possibly year five if the contract is extended in the appropriate fiscal year budgets. Agreement Request Request Amount FY 2022-2023 Budget Dept. Account # Total Contract Amount $82,500 161-3109-4201 $173,251 Attachments: 1.Draft Agreement 2.Bid Opening Log 3.Ron’s Maintenance Inc. Proposal Documents Respectfully Submitted by: Gloria Ledezma, Administrative Assistant Concur: Lucho Rodriguez, Deputy City Engineer Concur: Joe SanClemente, Public Works Director Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/6/2022Page 3 of 3 powered by Legistar™565 CITY OF HERMOSA BEACH AGREEMENT FOR STORM DRAIN CATCH BASIN MAINTENANCE SERVICES Page 1 of 18 This Agreement for Storm Drain Catch Basin Maintenance Services (“Agreement”) is made on this ___ day of ____________2022, at Hermosa Beach, California, by and between the City of Hermosa Beach, a municipal corporation, 1315 Valley Drive, Hermosa Beach, California 90254 (hereinafter referred to as the “CITY”) and _________________. (hereinafter referred to as the “CONTRACTOR”). RECITALS A.CITY proposes to contract for Storm Drain Catch Basin Maintenance Services as set forth below in this Agreement; B.CONTRACTOR is willing to perform such services and has the necessary qualifications by reason of experience, preparation, and organization to provide the services described in Exhibit A. NOW, THEREFORE, the CITY and the CONTRACTOR mutually agree as follows: 1.SERVICES. CONTRACTOR shall perform those services set forth in “Exhibit A” (Request for Proposal Document - Storm Drain Catch Basin Maintenance Services) which is attached hereto and incorporated herein by reference. By executing this Agreement, CONTRACTOR represents that it has (a) thoroughly investigated and considered the scope of services to be performed; (b) carefully considered how the services should be performed; and (c) understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement. 2.TIME OF PERFORMANCE. The services of CONTRACTOR are to commence upon receipt of a notice to proceed from CITY and shall be completed within the time period designated by CITY. The term of this Agreement shall be for the time period beginning ___________, 2022 and ending on ______________unless extended in writing in advance by the CITY. 3.PAYMENT FOR SERVICES. CONTRACTOR shall be compensated in an amount not to exceed those amounts as listed on pages P-___ through P- ___ of Exhibit A. Compensation shall under no circumstances be 566 Page 2 of 18 increased except by written amendment of this Agreement. CONTRACTOR shall be paid within thirty (30) days of presentation of an invoice to CITY for services performed to CITY’s satisfaction. CONTRACTOR shall submit invoices monthly describing the services performed, the date services were performed, a description of reimbursable costs, and any other information requested by CITY. 4.CONTRACT ADMINISTRATION. 4.1. CITY’s Representative. Unless otherwise designated in writing ___________________, Maintenance Supervisor shall serve as the CITY’s representative for the administration of the project. All activities performed by the CONTRACTOR shall be coordinated with this person. 4.2. Manager-in-Charge. For the CONTRACTOR___________ shall be in charge of the project on all matters relating to this Agreement and any agreement or approval made by her/him shall be binding on the CONTRACTOR. The Manager-in-Charge shall not be replaced without the written consent of the CITY. 4.3. Responsibilities of the CITY. The CITY shall provide all relevant documentation in its possession to the CONTRACTOR upon request in order to minimize duplication of efforts. The CITY’s staff shall work with the CONTRACTOR as necessary to facilitate performance of the services. 4.4. Personnel. The CONTRACTOR represents that it has or will secure at its own expense all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by the CONTRACTOR or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. The CONTRACTOR reserves the right to determine the assignment of its own employees to the performance of the CONTRACTOR’s services under this Agreement, but the CITY reserves the right, for good cause, to require the CONTRACTOR to exclude any employee from performing services on the CITY’s premises. 5.TERMINATION. 567 Page 3 of 18 5.1. Termination for Convenience. Either party may terminate this Agreement without cause and in its sole discretion at any time by giving the other party thirty (30) days' written notice of such termination. In the event of such termination, the CONTRACTOR shall cease services as of the date of termination and shall be compensated for services performed to the CITY's satisfaction up to the date of termination. 5.2. Termination for Cause. All terms, provisions, and specifications of this Agreement are material and binding, and failure to perform any material portion of the work described herein shall be considered a breach of this Agreement. Should the Agreement be breached in any manner, the CITY may, at its option, terminate the Agreement not less than five (5) days after written notification is received by the CONTRACTOR to remedy the violation within the stated time or within any other time period agreed to by the parties. In the event of such termination, the CONTRACTOR shall be responsible for any additional costs incurred by the CITY in securing the services from another contractor. 6.INDEMNIFICATION. 6.1. CONTRACTOR shall indemnify, defend with counsel approved by CITY, and hold harmless CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, and 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 CONTRACTOR's performance of work hereunder or its failure to comply with any of its obligations contained in this AGREEMENT, regardless of CITY’S passive negligence, but excepting such loss or damage which is caused by the sole active negligence or willful misconduct of the CITY. Should CITY in its sole discretion find CONTRACTOR’S legal counsel unacceptable, then CONTRACTOR 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 CONTRACTOR shall promptly pay any final judgment rendered against the CITY (and its officers, officials, employees and volunteers) covered by this indemnity obligation. 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. 568 Page 4 of 18 6.2. The requirements as to the types and limits of insurance coverage to be maintained by CONTRACTOR as required by Section 17, and any approval of said insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONTRACTOR pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification. 7.INSURANCE REQUIREMENTS. 7.1. The CONTRACTOR, at the CONTRACTOR’s own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies: 7.1.1. Workers’ Compensation Coverage. The CONTRACTOR shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance for its employees in accordance with the laws of the State of California. In addition, the CONTRACTOR shall require any and every subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. Any notice of cancellation or non-renewal of all Workers’ Compensation policies must be received by the CITY at least thirty (30) days prior to such change. The insurer shall agree to waive all rights of subrogation against the CITY, its officers, agents, employees, and volunteers for losses arising from work performed by the CONTRACTOR for City. 7.1.2. General Liability Coverage. The CONTRACTOR shall maintain commercial general liability insurance in an amount of not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. 569 Page 5 of 18 7.1.3. Automobile Liability Coverage. The CONTRACTOR shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the CONTRACTOR arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired, and non-owned vehicles, in an amount of not less than three hundred thousand dollars ($300,000) combined single limit for each occurrence. 7.2. Endorsements. Each general liability and automobile liability insurance policy shall be issued by insurers possessing a Best’s rating of no less than A:VII and shall be endorsed with the specific language of Section 8.2.1 below. 7.2.1. “The CITY, its elected or appointed officers, officials, employees, agents, and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the CONTRACTOR, including materials, parts, or equipment furnished in connection with such work or operations.” 7.2.2. This policy shall be considered primary insurance as respects the CITY, its elected or appointed officers, officials, employees, agents, and volunteers. Any insurance maintained by the CITY, including any self- insured retention the CITY may have, shall be considered excess insurance only and shall not contribute with this policy. 7.2.3. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. 7.2.4. The insurer waives all rights of subrogation against the CITY, its elected or appointed officers, officials, employees, or agents. 7.2.5. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its 570 Page 6 of 18 elected or appointed officers, officials, employees, agents, or volunteers. 7.2.6. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days’ written notice has been received by the CITY. 7.3. Deductibles and Self-Insured Retentions. Any deductibles or self- insured retentions must be declared to and approved by the CITY. At the CITY’s option, the CONTRACTOR shall demonstrate financial capability for payment of such deductibles or self- insured retentions. 7.4. Certificates of Insurance. The CONTRACTOR shall provide certificates of insurance with original endorsements to the CITY as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the CITY on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the CITY at all times during the term of this Agreement. 7.5. Failure to Procure Insurance. Failure on the part of the CONTRACTOR to procure or maintain required insurance shall constitute a material breach of contract under which the CITY may terminate this Agreement pursuant to Section 6.2 above. 7.6. Nonpayment of Deductible. The commercial general and automobile liability 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 CONTRACTOR (as the named insured) should CONTRACTOR 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. CONTRACTOR understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this Agreement. Failure by CONTRACTOR as primary insured to pay its SIR or deductible constitutes a material breach of this Agreement. Should City pay the SIR or deductible on CONTRACTOR’S behalf upon the CONTRACTOR’S failure or refusal to do so in order to secure defense and indemnification as an additional insured 571 Page 7 of 18 under the policy, City may include such amounts as damages in any action against CONTRACTOR for breach of this Agreement in addition to any other damages incurred by City due to the breach. 8.ASSIGNMENT AND SUBCONTRACTING. The parties recognize that a substantial inducement to the CITY for entering into this Agreement is the professional reputation, experience, and competence of the CONTRACTOR. Assignments of any or all rights, duties, or obligations of the CONTRACTOR under this Agreement will be permitted only with the express consent of the CITY. The CONTRACTOR shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of the CITY. If the CITY consents to such subcontract, the CONTRACTOR shall be fully responsible to the CITY for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between the CITY and subcontractor nor shall it create any obligation on the part of the CITY to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise is required by law. 9.COMPLIANCE WITH LAWS, CODES, ORDINANCES, AND REGULATIONS. The CONTRACTOR shall use the standard of care in its profession to comply with all applicable federal, state, and local laws, codes, ordinances, and regulations. 9.1. Taxes. The CONTRACTOR agrees to pay all required taxes on amounts paid to the CONTRACTOR under this Agreement, and to indemnify and hold the CITY harmless from any and all taxes, assessments, penalties, and interest asserted against the CITY by reason of the independent contractor relationship created by this Agreement. In the event that the CITY is audited by any Federal or State agency regarding the independent contractor status of the CONTRACTOR and the audit in any way fails to sustain the validity of a wholly independent contractor relationship between the CITY and the CONTRACTOR, then the CONTRACTOR agrees to reimburse the CITY for all costs, including accounting and attorneys’ fees, arising out of such audit and any appeals relating thereto. 9.2. Workers’ Compensation Law. The CONTRACTOR shall fully comply with the workers’ compensation law regarding the CONTRACTOR and the CONTRACTOR’s employees. The 572 Page 8 of 18 CONTRACTOR further agrees to indemnify and hold the CITY harmless from any failure of the CONTRACTOR to comply with applicable workers’ compensation laws. The CITY shall have the right to offset against the amount of any compensation due to the CONTRACTOR under this Agreement any amount due to the CITY from the CONTRACTOR as a result of the CONTRACTOR’s failure to promptly pay to the CITY any reimbursement or indemnification arising under this Section. 9.3. Licenses. The CONTRACTOR represents and warrants to the CITY that it has all licenses, permits, qualifications, insurance, and approvals of whatsoever nature which are legally required of the CONTRACTOR to practice its profession. The CONTRACTOR represents and warrants to the CITY that the CONTRACTOR shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, insurance, and approvals which are legally required of the CONTRACTOR to practice its profession. The CONTRACTOR shall maintain a City of Hermosa Beach business license, if required under CITY ordinance. 9.4. Prevailing Wages. CONTRACTOR shall abide by the minimum prevailing rate of wages as determined by the State of California, Department of Industrial Relations for each craft, classification, or type of worker employed to carry out provisions of the Agreement. During the term of this Agreement, Contractor shall keep on file sufficient evidence of its employee compensation to enable verification of compliance of Prevailing Wages as established by State of California, Department of Industrial Relations. 10.CONFLICT OF INTEREST. The CONTRACTOR confirms that it has no financial, contractual, or other interest or obligation that conflicts with or is harmful to performance of its obligations under this Agreement. The CONTRACTOR shall not during the term of this Agreement knowingly obtain such an interest or incur such an obligation, nor shall it employ or subcontract with any person for performance of this Agreement who has such incompatible interest or obligation. 573 Page 9 of 18 11.NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY. The CONTRACTOR represents and agrees that it does not and will not discriminate against any employee or applicant for employment because of race, religion, color, medical condition, sex, sexual orientation and/or gender identity, national origin, political affiliation or opinion, or pregnancy or pregnancy-related condition. 12.RECORDS AND AUDITS. The CONTRACTOR shall maintain accounts and records, including personnel, property, and financial records, adequate to identify and account for all costs pertaining to this Agreement and such other records as may be deemed necessary by the CITY or any authorized representative, and will be retained for three years after the expiration of this Agreement. All such records shall be made available for inspection or audit by the CITY at any time during regular business hours. 13.OWNERSHIP OF DOCUMENTS. It is understood and agreed that the CITY shall own all documents and other work product of the CONTRACTOR, except the CONTRACTOR’s notes and workpapers, which pertain to the work performed under this Agreement. The CITY shall have the sole right to use such materials in its discretion and without further compensation to the CONTRACTOR, but any re-use of such documents by the CITY on any other project without prior written consent of the CONTRACTOR shall be at the sole risk of the CITY. The CONTRACTOR shall at its sole expense provide all such documents to the CITY upon request. 14.INDEPENDENT CONTRACTOR. The CONTRACTOR is and shall at all times remain as to the CITY a wholly independent CONTRACTOR. Neither the CITY nor any of its agents shall have control over the conduct of the CONTRACTOR or any of the CONTRACTOR’s employees or agents, except as herein set forth. The CONTRACTOR 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. The CONTRACTOR shall have no power to incur any debt, obligation, or liability on behalf of the CITY or otherwise act on behalf of the CITY as an agent. 15.NOTICE. All Notices permitted or required under this Agreement shall be in writing, and shall be deemed made when delivered to the applicable party’s representative as provided in this Agreement. 574 Page 10 of 18 Additionally, such notices may be given to the respective parties at the following addresses, or at such other addresses as the parties may provide in writing for this purpose. Such notices shall be deemed made when personally delivered or when mailed forty-eight (48) hours after deposit in the U.S. mail, first- class postage prepaid, and addressed to the party at its applicable address. CITY OF HERMOSA BEACH 1315 Valley Drive Hermosa Beach, CA 90254 Attention: Joe SanClemente, Director Public Works Department CONTRACTOR: ____________________________ ____________________________ ____________________________ Attention: ____________________ 16.GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. 17.ENTIRE AGREEMENT; MODIFICATION. This Agreement supersedes any and all other agreements, either oral or written, between the parties, and contains all of the covenants and agreements between the parties. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. Any agreement, statement, or promise not contained in the Agreement, and any modification to the Agreement, will be effective only if signed by both parties. 18.ATTORNEYS’ FEES. In any action brought to declare the rights granted herein or to enforce any of the terms of this Agreement, the prevailing 575 Page 11 of 18 party shall be entitled to an award of reasonable attorneys’ fees in an amount determined by the court. 19.WAIVER. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this agreement. Payment of any invoice by the CITY shall not constitute a waiver of the CITY’s right to obtain correction or replacement of any defective or noncompliant work product. 20.EXECUTION. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart. 21.AUTHORITY TO ENTER AGREEMENT. The CONTRACTOR has all requisite power and authority to conduct its business and to execute, deliver, and perform this Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party. 576 Page 12 of 18 IN WITNESS WHEREOF, the parties hereto have executed this contract the day and year first hereinabove written. CONTRACTOR: _____________________________________COMPANY NAME _____________________________________TITLE _____________________________________Contractors State License # CITY OF HERMOSA BEACH: [MAYOR/CITY MANAGER] APPROVED AS TO FORM: Michael Jenkins, City Attorney ATTEST: Myra Maravilla, City Clerk 577 Page 13 of 18 PERFORMANCE BOND (TO BE EXECUTED WITHIN 5 (FIVE) DAYS OF CONTRACT AWARD) STORM DRAIN CATCH BASIN MAINTENANCE SERVICES KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS the CITY of Hermosa Beach (Owner) has awarded to ____________________ as principal hereinafter designated as the "Contractor," a contract to provide Storm Drain Catch Basin Maintenance Services. AND WHEREAS, the Contractor is required to furnish a bond in connection with said contract guaranteeing the faithful performance thereof; NOW, THEREFORE, we, the undersigned Contractor and Surety, are held firmly bound unto the Owner in the penal sum of _______________________________________________ ($_____.__), which is one hundred percent of the total contract amount for the above stated project, to be paid to the Owner, its successors and assigns, for which payment well and truly to be made we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH: That if said Contractor, its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, and agreements in the foregoing contract and any alteration thereof made as therein provided on its or their part to be kept and performed at the time and in the manner therein specified and in all respects according to their true intent and meaning, and shall indemnify and save harmless the Owner, its officers, and agents, as therein stipulated, then this obligation shall become and be null and void; otherwise it shall be and remain in full force and effect. In case suit is brought upon this bond, the said surety will pay a reasonable attorney's fee to the Owner in an amount to be fixed by the court. Surety, for value received, hereby stipulates and agrees that no amendment, change, extension of time, alteration, or addition to said contract, and of any feature or item or items of performance required therein or thereunder, shall in any manner affect its obligations on or under this bond; and said surety does hereby waive notice of any such amendment, change, extension of time, alteration, or addition to said contract, and of any feature or item or items of performance required therein or thereunder. IN WITNESS WHEREOF, we have hereunto set our hands and seals on the _____day of ____________________________, 2022. CONTRACTOR SURETY Subscribed and sworn to this day of , 2022. 578 Page 14 of 18 Notary Public 579 Page 15 of 18 PAYMENT BOND (TO BE EXECUTED WITHIN FIVE (5) DAYS OF CONTRACT AWARD) STORM DRAIN CATCH BASIN SERVICES THAT WHEREAS, the City of Hermosa Beach (Owner) has awarded to ____________________________., as Contractor, a contract to provide Storm Drain Catch Basin Maintenance Services. AND WHEREAS, said Contractor is required to furnish a bond in connection with said contract, to secure the payment of claims of laborers, mechanics, materials persons, and other persons as provided by law; NOW, THEREFORE, we, the undersigned Contractor and Surety, are held firmly bound unto the City of Hermosa Beach as Owner in the penal sum of __________________________________________ Dollars ($______.__) which is 100 percent of the total contract amount for the above stated project, for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH: That if said Contractor, its heirs, executors, administrators, successors, or assigns, or subcontractors, shall fail to pay any of the persons named in Civil Code Section 3181, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the Contractor and its subcontractors pursuant to Section 13020 of the Unemployment Insurance Code, with respect to such work and labor, that the surety or sureties herein will pay for the same in any amount not exceeding the sum specified in this bond, otherwise the above obligation shall be void. In case suit is brought upon this bond, the said surety will pay a reasonable attorney's fee to the Owner in an amount to be fixed by the court. This bond shall insure to the benefit of any of the persons named in Civil Code Section 3181 as to give a right of action to such persons or their assigns in any suit brought upon this bond. IN WITNESS WHEREOF, we have hereunto set our hands and seals on this day of _______________, 2022. CONTRACTOR SURETY Subscribed and sworn to this day of , 2022. 580 Page 16 of 18 Notary Public 581 Page 17 of 18 NONCOLLUSION AFFIDAVIT TO BE EXECUTED BY EACH AWARDEE OF A PRINCIPAL CONTRACT STATE OF CALIFORNIA ) )ss COUNTY OF ) being first duly sworn, deposes and says that he is (sole owner, a partner, president, etc.) of _________________________________________________________________, the party making the foregoing bid, that such bid is not made in the interest of or behalf of any undisclosed person, partnership, company, association, organization or corporation, that such bid is genuine and not collusive or sham, that said bidder has not directly or indirectly induced or solicited any other bidder to put a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put a sham bid, or that anyone shall refrain from bidding, that said bidder has not in any manner, directly or indirectly, sought by agreements, communication, or conference with anyone to fix the bid price of said bidder or of any other bidder, or to fix the overhead, profit or cost element of such bid price, or of that of any other bidder, or to secure any advantage against the public body awarding the Contractor or anyone interested in the proposed contract; that all statements contained in such bid are true and, further, that said bidder has not, directly or indirectly, submitted his bid price, or any breakdown thereof, of the contents thereof, or divulged information or data relative thereto, or paid and will not pay any fee in connection therewith to any corporation, partnership, company, association, organization, bid depository, or to any member or agency thereof, or to any other individual, except to such person or persons who have a partnership of other financial interest with said bidder in his general business. Signed ___ Title Subscribed and sworn to before me this day of , 2022. Notary Public 582 Page 18 of 18 COMPENSATION INSURANCE CERTIFICATE Pursuant to Section 1861 of the State Labor Code, each Contractor to whom a public works contract has been awarded shall sign the following certificate and shall submit same to the City of Hermosa Beach prior to performing any work on this contract: I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract. CONTRACTOR: _______________________. __(TITLE)_______________________ Date 583 584 585 586 587 588 589 590 591 592 593 594 595 596 597 598 599 600 601 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 22-0309 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 AWARD OF A SANITARY SEWER MAINTENANCE AND CCTV INSPECTION SERVICES CONTRACT TO EMPIRE PIPE CLEANING AND EQUIPMENT, INC. (Public Works Director Joe SanClemente) Recommended Action: Staff recommends City Council: 1.Award a contract for sanitary sewer hydro-flushing and video inspection maintenance services to Empire Pipe Cleaning and Equipment,Inc.in the amount of $793,490 over four years beginning July 1,2022 and ending June 30,2026 with an option to extend for one additional year; 2.Authorize the Director of Public Works to establish a $10,000 per year project contingency for a total amount of $40,000; and 3.Authorize the Mayor to execute and the City Clerk to attest the contract subject to the approval of the City Attorney. Executive Summary: The City’s current agreement for sanitary sewer maintenance services is set to expire on June 30, 2022.The City issued a Request for Proposals (RFP)for sanitary sewer maintenance.Upon completion of the competitive bidding process,staff recommends Council award Empire Pipe Cleaning and Equipment,Inc.,an agreement in the total amount of $793,490 for a four-year term with an option to extend the agreement for one additional year.Award of this contract would ensure continued sewer maintenance services. Background: The City owns,operates,and maintains approximately 37 miles of sewer mains and 880 sewer maintenance access holes.The City engages sewer maintenance contractors to clean and provide video inspection services for its sanitary sewer system as a preventive maintenance strategy.This practice helps ensure proper sewer system operations,extend the system service life,and greatly reduces the potential for damage to private and public property that could result from system blockages. City of Hermosa Beach Printed on 5/24/2023Page 1 of 4 powered by Legistar™602 Staff Report REPORT 22-0309 Analysis: On March 24,2022,the City invited sanitary sewer maintenance contractors to submit proposals through a competitive bid process with services beginning in FY 2022-2023 and ending in FY 2025- 2026,with an optional one-year term extension if desired by the City.The request for proposals (RFP)was advertised in the Easy Reader,City website,and on the City’s online bidding platform PlanetBids.A total of six proposals were received in response to the RFP.On May 3,2022,the City Clerk received,publicly opened,and read aloud submitted proposals.The proposal results for year one of the four-year term are summarized in the following table: Proposer Proposal Amount Empire Pipe Cleaning and Equipment, Inc.$188,630.00 National Plant Services, Inc.$196,232.73 Pipe Tec, Inc.$298,250.00 Pro Pipe, Inc.$363,580.00 Downstream Services, Inc.$372,736.00 Badger Infrastructure Solutions $8,439,920.00 Based on a review of the submitted proposals and the City’s long-standing experience with the contractor,staff recommends City Council award a contract to the most qualified and cost-effective bidder, Empire Pipe Cleaning and Equipment, Inc. Empire Pipe Cleaning and Equipment,Inc.has provided sewer maintenance services and maintained the City’s sewer system for the past 20 years and is very familiar and knowledgeable about the system, including areas that require special attention and expertise. The total base four-year contract amount would be $793,490.The proposal amount includes an approximate three percent annual increase for years two,three,and four.Staff also requests a $40,000 project contingency for additional services, if needed, as detailed in the table below. Fiscal Year Proposal Amount Contingency Total Budgeted Amount 2022-2023 $188,630 $10,000 $198,630 2023-2024 $195,550 $10,000 $205,550 2024-2025 $201,520 $10,000 $211,520 2025-2026 $207,790 $10,000 $217,790 Total $793,490 $40,000 $833,490 City of Hermosa Beach Printed on 5/24/2023Page 2 of 4 powered by Legistar™603 Staff Report REPORT 22-0309 General Plan Consistency: This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below: Infrastructure Element Goal 1. Infrastructure systems are functional, safe, and well maintained. Policy: ·1.8 Minimize recurring repairs.Ensure that recurring repairs to City facilities are minimized by investing in low maintenance materials and performing preventive procedures where available. Goal 4. The sewer system infrastructure is modernized and resilient. Policy: ·4.7 Sewer system operation.Continue to implement maintenance and operation measures established in the Sewer System Management Plan. Fiscal Impact: The FY 2022-2023 Preliminary Budget includes a request of $198,630 in the Sewer Fund for hydro- flushing.Staff would request funding for contract years two,three,four,and possibly year five if the contract is extended in the appropriate fiscal year budgets. Agreement Request Request Amount FY 2022-2023 Budget Dept. Account # Total Contract Amount $198,630 160-3102-4201 $1,058,490 Attachments: 1. Draft Agreement 2. Bid Opening Log 3. Empire Pipe Cleaning and Equipment, Inc. Proposal Documents Respectfully Submitted by: Andrew Nguyen, Associate Engineer Concur: Lucho Rodriguez, Deputy City Engineer Concur: Joe SanClemente, Public Works Director Noted for Fiscal Impact: Viki Copeland, Finance Director City of Hermosa Beach Printed on 5/24/2023Page 3 of 4 powered by Legistar™604 Staff Report REPORT 22-0309 Legal Review: Mike Jenkins, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 5/24/2023Page 4 of 4 powered by Legistar™605 CITY OF HERMOSA BEACH AGREEMENT FOR SANITARY SEWER MAINTENANCE AND CCTV INSPECTION SERVICES Page 1 of 16 This Agreement for Sanitary Sewer Maintenance and CCTV Inspection Services (“Agreement”) is made on this ___ day of ____________2022, at Hermosa Beach, California, by and between the City of Hermosa Beach, a municipal corporation, 1315 Valley Drive, Hermosa Beach, California 90254 (hereinafter referred to as the “CITY”) and _________________. (hereinafter referred to as the “CONTRACTOR”). RECITALS A. CITY proposes to contract for Sanitary Sewer Maintenance and CCTV Inspection Services as set forth below in this Agreement; B. CONTRACTOR is willing to perform such services and has the necessary qualifications by reason of experience, preparation, and organization to provide the services described in Exhibit A. NOW, THEREFORE, the CITY and the CONTRACTOR mutually agree as follows: 1. SERVICES. CONTRACTOR shall perform those services set forth in “Exhibit A” (Request for Proposal Document - Sanitary Sewer Maintenance and CCTV Inspection Services) which is attached hereto and incorporated herein by reference. By executing this Agreement, CONTRACTOR represents that it has (a) thoroughly investigated and considered the scope of services to be performed; (b) carefully considered how the services should be performed; and (c) understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement. 2. TIME OF PERFORMANCE. The services of CONTRACTOR are to commence upon receipt of a notice to proceed from CITY and shall be completed within the time period designated by CITY. The term of this Agreement shall be for the time period beginning ___________, 2022 and ending on ______________unless extended in writing in advance by the CITY. 3. PAYMENT FOR SERVICES. CONTRACTOR shall be compensated in an amount not to exceed those amounts as listed on pages P-___ through P- ___ of Exhibit A. Compensation shall under no circumstances be increased except by written amendment of this Agreement. CONTRACTOR shall be paid within thirty (30) days of presentation of an invoice to CITY for services performed to CITY’s satisfaction. CONTRACTOR shall submit invoices monthly describing 606 Page 2 of 16 the services performed, the date services were performed, a description of reimbursable costs, and any other information requested by CITY. 4. CONTRACT ADMINISTRATION. 4.1. CITY’s Representative. Unless otherwise designated in writing ___________________, Maintenance Supervisor shall serve as the CITY’s representative for the administration of the project. All activities performed by the CONTRACTOR shall be coordinated with this person. 4.2. Manager-in-Charge. For the CONTRACTOR___________ shall be in charge of the project on all matters relating to this Agreement and any agreement or approval made by her/him shall be binding on the CONTRACTOR. The Manager-in-Charge shall not be replaced without the written consent of the CITY. 4.3. Responsibilities of the CITY. The CITY shall provide all relevant documentation in its possession to the CONTRACTOR upon request in order to minimize duplication of efforts. The CITY’s staff shall work with the CONTRACTOR as necessary to facilitate performance of the services. 4.4. Personnel. The CONTRACTOR represents that it has or will secure at its own expense all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by the CONTRACTOR or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. The CONTRACTOR reserves the right to determine the assignment of its own employees to the performance of the CONTRACTOR’s services under this Agreement, but the CITY reserves the right, for good cause, to require the CONTRACTOR to exclude any employee from performing services on the CITY’s premises. 5. TERMINATION. 5.1. Termination for Convenience. Either party may terminate this Agreement without cause and in its sole discretion at any time by giving the other party thirty (30) days' written notice of such termination. In the event of such termination, the CONTRACTOR shall cease services as of the date of termination and shall be compensated for services performed to the CITY's satisfaction up to the date of termination. 607 Page 3 of 16 5.2. Termination for Cause. All terms, provisions, and specifications of this Agreement are material and binding, and failure to perform any material portion of the work described herein shall be considered a breach of this Agreement. Should the Agreement be breached in any manner, the CITY may, at its option, terminate the Agreement not less than five (5) days after written notification is received by the CONTRACTOR to remedy the violation within the stated time or within any other time period agreed to by the parties. In the event of such termination, the CONTRACTOR shall be responsible for any additional costs incurred by the CITY in securing the services from another contractor. 6. INDEMNIFICATION. 6.1. CONTRACTOR shall indemnify, defend with counsel approved by CITY, and hold harmless CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, and 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 CONTRACTOR's performance of work hereunder or its failure to comply with any of its obligations contained in this AGREEMENT, regardless of CITY’S passive negligence, but excepting such loss or damage which is caused by the sole active negligence or willful misconduct of the CITY. Should CITY in its sole discretion find CONTRACTOR’S legal counsel unacceptable, then CONTRACTOR 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 CONTRACTOR shall promptly pay any final judgment rendered against the CITY (and its officers, officials, employees and volunteers) covered by this indemnity obligation. 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. 6.2. The requirements as to the types and limits of insurance coverage to be maintained by CONTRACTOR as required by Section 17, and any approval of said insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONTRACTOR pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification. 7. INSURANCE REQUIREMENTS. 7.1. The CONTRACTOR, at the CONTRACTOR’s own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies: 608 Page 4 of 16 7.1.1. Workers’ Compensation Coverage. The CONTRACTOR shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance for its employees in accordance with the laws of the State of California. In addition, the CONTRACTOR shall require any and every subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. Any notice of cancellation or non-renewal of all Workers’ Compensation policies must be received by the CITY at least thirty (30) days prior to such change. The insurer shall agree to waive all rights of subrogation against the CITY, its officers, agents, employees, and volunteers for losses arising from work performed by the CONTRACTOR for City. 7.1.2. General Liability Coverage. The CONTRACTOR shall maintain commercial general liability insurance in an amount of not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. 7.1.3. Automobile Liability Coverage. The CONTRACTOR shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the CONTRACTOR arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired, and non-owned vehicles, in an amount of not less than three hundred thousand dollars ($300,000) combined single limit for each occurrence. 7.2. Endorsements. Each general liability and automobile liability insurance policy shall be issued by insurers possessing a Best’s rating of no less than A:VII and shall be endorsed with the specific language of Section 8.2.1 below. 7.2.1. “The CITY, its elected or appointed officers, officials, employees, agents, and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the CONTRACTOR, including 609 Page 5 of 16 materials, parts, or equipment furnished in connection with such work or operations.” 7.2.2. This policy shall be considered primary insurance as respects the CITY, its elected or appointed officers, officials, employees, agents, and volunteers. Any insurance maintained by the CITY, including any self-insured retention the CITY may have, shall be considered excess insurance only and shall not contribute with this policy. 7.2.3. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. 7.2.4. The insurer waives all rights of subrogation against the CITY, its elected or appointed officers, officials, employees, or agents. 7.2.5. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents, or volunteers. 7.2.6. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days’ written notice has been received by the CITY. 7.3. Deductibles and Self-Insured Retentions. Any deductibles or self- insured retentions must be declared to and approved by the CITY. At the CITY’s option, the CONTRACTOR shall demonstrate financial capability for payment of such deductibles or self-insured retentions. 7.4. Certificates of Insurance. The CONTRACTOR shall provide certificates of insurance with original endorsements to the CITY as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the CITY on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the CITY at all times during the term of this Agreement. 7.5. Failure to Procure Insurance. Failure on the part of the CONTRACTOR to procure or maintain required insurance shall constitute a material breach of contract under which the CITY may terminate this Agreement pursuant to Section 6.2 above. 610 Page 6 of 16 7.6. Nonpayment of Deductible. The commercial general and automobile liability 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 CONTRACTOR (as the named insured) should CONTRACTOR 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. CONTRACTOR understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this Agreement. Failure by CONTRACTOR as primary insured to pay its SIR or deductible constitutes a material breach of this Agreement. Should City pay the SIR or deductible on CONTRACTOR’S behalf upon the CONTRACTOR’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 CONTRACTOR for breach of this Agreement in addition to any other damages incurred by City due to the breach. 8. ASSIGNMENT AND SUBCONTRACTING. The parties recognize that a substantial inducement to the CITY for entering into this Agreement is the professional reputation, experience, and competence of the CONTRACTOR. Assignments of any or all rights, duties, or obligations of the CONTRACTOR under this Agreement will be permitted only with the express consent of the CITY. The CONTRACTOR shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of the CITY. If the CITY consents to such subcontract, the CONTRACTOR shall be fully responsible to the CITY for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between the CITY and subcontractor nor shall it create any obligation on the part of the CITY to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise is required by law. 9. COMPLIANCE WITH LAWS, CODES, ORDINANCES, AND REGULATIONS. The CONTRACTOR shall use the standard of care in its profession to comply with all applicable federal, state, and local laws, codes, ordinances, and regulations. 9.1. Taxes. The CONTRACTOR agrees to pay all required taxes on amounts paid to the CONTRACTOR under this Agreement, and to indemnify and hold the CITY harmless from any and all taxes, assessments, penalties, and interest asserted against the CITY by reason of the independent contractor relationship created by this Agreement. In the event that the CITY is audited by any Federal or State agency regarding the independent contractor status of the 611 Page 7 of 16 CONTRACTOR and the audit in any way fails to sustain the validity of a wholly independent contractor relationship between the CITY and the CONTRACTOR, then the CONTRACTOR agrees to reimburse the CITY for all costs, including accounting and attorneys’ fees, arising out of such audit and any appeals relating thereto. 9.2. Workers’ Compensation Law. The CONTRACTOR shall fully comply with the workers’ compensation law regarding the CONTRACTOR and the CONTRACTOR’s employees. The CONTRACTOR further agrees to indemnify and hold the CITY harmless from any failure of the CONTRACTOR to comply with applicable workers’ compensation laws. The CITY shall have the right to offset against the amount of any compensation due to the CONTRACTOR under this Agreement any amount due to the CITY from the CONTRACTOR as a result of the CONTRACTOR’s failure to promptly pay to the CITY any reimbursement or indemnification arising under this Section. 9.3. Licenses. The CONTRACTOR represents and warrants to the CITY that it has all licenses, permits, qualifications, insurance, and approvals of whatsoever nature which are legally required of the CONTRACTOR to practice its profession. The CONTRACTOR represents and warrants to the CITY that the CONTRACTOR shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, insurance, and approvals which are legally required of the CONTRACTOR to practice its profession. The CONTRACTOR shall maintain a City of Hermosa Beach business license, if required under CITY ordinance. 9.4. Prevailing Wages. CONTRACTOR shall abide by the minimum prevailing rate of wages as determined by the State of California, Department of Industrial Relations for each craft, classification, or type of worker employed to carry out provisions of the Agreement. During the term of this Agreement, Contractor shall keep on file sufficient evidence of its employee compensation to enable verification of compliance of Prevailing Wages as established by State of California, Department of Industrial Relations. 10. CONFLICT OF INTEREST. The CONTRACTOR confirms that it has no financial, contractual, or other interest or obligation that conflicts with or is harmful to performance of its obligations under this Agreement. The CONTRACTOR shall not during the term of this Agreement knowingly obtain such an interest or incur such an obligation, nor shall it employ or subcontract 612 Page 8 of 16 with any person for performance of this Agreement who has such incompatible interest or obligation. 11. NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY. The CONTRACTOR represents and agrees that it does not and will not discriminate against any employee or applicant for employment because of race, religion, color, medical condition, sex, sexual orientation and/or gender identity, national origin, political affiliation or opinion, or pregnancy or pregnancy-related condition. 12. RECORDS AND AUDITS. The CONTRACTOR shall maintain accounts and records, including personnel, property, and financial records, adequate to identify and account for all costs pertaining to this Agreement and such other records as may be deemed necessary by the CITY or any authorized representative, and will be retained for three years after the expiration of this Agreement. All such records shall be made available for inspection or audit by the CITY at any time during regular business hours. 13. OWNERSHIP OF DOCUMENTS. It is understood and agreed that the CITY shall own all documents and other work product of the CONTRACTOR, except the CONTRACTOR’s notes and workpapers, which pertain to the work performed under this Agreement. The CITY shall have the sole right to use such materials in its discretion and without further compensation to the CONTRACTOR, but any re-use of such documents by the CITY on any other project without prior written consent of the CONTRACTOR shall be at the sole risk of the CITY. The CONTRACTOR shall at its sole expense provide all such documents to the CITY upon request. 14. INDEPENDENT CONTRACTOR. The CONTRACTOR is and shall at all times remain as to the CITY a wholly independent CONTRACTOR. Neither the CITY nor any of its agents shall have control over the conduct of the CONTRACTOR or any of the CONTRACTOR’s employees or agents, except as herein set forth. The CONTRACTOR 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. The CONTRACTOR shall have no power to incur any debt, obligation, or liability on behalf of the CITY or otherwise act on behalf of the CITY as an agent. 15. NOTICE. All Notices permitted or required under this Agreement shall be in writing, and shall be deemed made when delivered to the applicable party’s representative as provided in this Agreement. Additionally, such notices may be given to the respective parties at the following addresses, or at such other addresses as the parties may provide in writing for this purpose. 613 Page 9 of 16 Such notices shall be deemed made when personally delivered or when mailed forty-eight (48) hours after deposit in the U.S. mail, first-class postage prepaid, and addressed to the party at its applicable address. CITY OF HERMOSA BEACH 1315 Valley Drive Hermosa Beach, CA 90254 Attention: Joe SanClemente, Director Public Works Department CONTRACTOR: ____________________________ ____________________________ ____________________________ Attention: ____________________ 16. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California. 17. ENTIRE AGREEMENT; MODIFICATION. This Agreement supersedes any and all other agreements, either oral or written, between the parties, and contains all of the covenants and agreements between the parties. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. Any agreement, statement, or promise not contained in the Agreement, and any modification to the Agreement, will be effective only if signed by both parties. 18. ATTORNEYS’ FEES. In any action brought to declare the rights granted herein or to enforce any of the terms of this Agreement, the prevailing party shall be entitled to an award of reasonable attorneys’ fees in an amount determined by the court. 19. WAIVER. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this agreement. Payment of any invoice by the CITY shall not constitute a waiver of the CITY’s right to obtain correction or replacement of any defective or noncompliant work product. 614 Page 10 of 16 20. EXECUTION. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart. 21. AUTHORITY TO ENTER AGREEMENT. The CONTRACTOR has all requisite power and authority to conduct its business and to execute, deliver, and perform this Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party. 615 Page 11 of 16 IN WITNESS WHEREOF, the parties hereto have executed this contract the day and year first hereinabove written. CONTRACTOR: _____________________________________COMPANY NAME _____________________________________TITLE _____________________________________Contractors State License # CITY OF HERMOSA BEACH: [MAYOR/CITY MANAGER] APPROVED AS TO FORM: Michael Jenkins, City Attorney ATTEST: Myra Maravilla, City Clerk 616 Page 12 of 16 PERFORMANCE BOND (TO BE EXECUTED WITHIN 5 (FIVE) DAYS OF CONTRACT AWARD) SANITARY SEWER MAINTENANCE AND CCTV INSPECTION SERVICES KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS the CITY of Hermosa Beach (Owner) has awarded to ____________________ as principal hereinafter designated as the "Contractor," a contract to provide ____________ Maintenance Services. AND WHEREAS, the Contractor is required to furnish a bond in connection with said contract guaranteeing the faithful performance thereof; NOW, THEREFORE, we, the undersigned Contractor and Surety, are held firmly bound unto the Owner in the penal sum of _______________________________________________ ($_____.__), which is one hundred percent of the total contract amount for the above stated project, to be paid to the Owner, its successors and assigns, for which payment well and truly to be made we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH: That if said Contractor, its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, and agreements in the foregoing contract and any alteration thereof made as therein provided on its or their part to be kept and performed at the time and in the manner therein specified and in all respects according to their true intent and meaning, and shall indemnify and save harmless the Owner, its officers, and agents, as therein stipulated, then this obligation shall become and be null and void; otherwise it shall be and remain in full force and effect. In case suit is brought upon this bond, the said surety will pay a reasonable attorney's fee to the Owner in an amount to be fixed by the court. Surety, for value received, hereby stipulates and agrees that no amendment, change, extension of time, alteration, or addition to said contract, and of any feature or item or items of performance required therein or thereunder, shall in any manner affect its obligations on or under this bond; and said surety does hereby waive notice of any such amendment, change, extension of time, alteration, or addition to said contract, and of any feature or item or items of performance required therein or thereunder. IN WITNESS WHEREOF, we have hereunto set our hands and seals on the _____day of ____________________________, 2022. CONTRACTOR SURETY Subscribed and sworn to this day of , 2022. Notary Public 617 Page 13 of 16 PAYMENT BOND (TO BE EXECUTED WITHIN FIVE (5) DAYS OF CONTRACT AWARD) SANITARY SEWER MAINTENANCE AND CCTV INSPECTION SERVICES THAT WHEREAS, the City of Hermosa Beach (Owner) has awarded to ____________________________., as Contractor, a contract to provide _________ Maintenance Services. AND WHEREAS, said Contractor is required to furnish a bond in connection with said contract, to secure the payment of claims of laborers, mechanics, materials persons, and other persons as provided by law; NOW, THEREFORE, we, the undersigned Contractor and Surety, are held firmly bound unto the City of Hermosa Beach as Owner in the penal sum of __________________________________________ Dollars ($______.__) which is 100 percent of the total contract amount for the above stated project, for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH: That if said Contractor, its heirs, executors, administrators, successors, or assigns, or subcontractors, shall fail to pay any of the persons named in Civil Code Section 3181, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the Contractor and its subcontractors pursuant to Section 13020 of the Unemployment Insurance Code, with respect to such work and labor, that the surety or sureties herein will pay for the same in any amount not exceeding the sum specified in this bond, otherwise the above obligation shall be void. In case suit is brought upon this bond, the said surety will pay a reasonable attorney's fee to the Owner in an amount to be fixed by the court. This bond shall insure to the benefit of any of the persons named in Civil Code Section 3181 as to give a right of action to such persons or their assigns in any suit brought upon this bond. IN WITNESS WHEREOF, we have hereunto set our hands and seals on this day of _______________, 2022. CONTRACTOR SURETY Subscribed and sworn to this day of , 2022. 618 Page 14 of 16 Notary Public 619 Page 15 of 16 NONCOLLUSION AFFIDAVIT TO BE EXECUTED BY EACH AWARDEE OF A PRINCIPAL CONTRACT STATE OF CALIFORNIA ) )ss COUNTY OF ) being first duly sworn, deposes and says that he is (sole owner, a partner, president, etc.) of _________________________________________________________________, the party making the foregoing bid, that such bid is not made in the interest of or behalf of any undisclosed person, partnership, company, association, organization or corporation, that such bid is genuine and not collusive or sham, that said bidder has not directly or indirectly induced or solicited any other bidder to put a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put a sham bid, or that anyone shall refrain from bidding, that said bidder has not in any manner, directly or indirectly, sought by agreements, communication, or conference with anyone to fix the bid price of said bidder or of any other bidder, or to fix the overhead, profit or cost element of such bid price, or of that of any other bidder, or to secure any advantage against the public body awarding the Contractor or anyone interested in the proposed contract; that all statements contained in such bid are true and, further, that said bidder has not, directly or indirectly, submitted his bid price, or any breakdown thereof, of the contents thereof, or divulged information or data relative thereto, or paid and will not pay any fee in connection therewith to any corporation, partnership, company, association, organization, bid depository, or to any member or agency thereof, or to any other individual, except to such person or persons who have a partnership of other financial interest with said bidder in his general business. Signed ___ Title Subscribed and sworn to before me this day of , 2022. Notary Public 620 Page 16 of 16 COMPENSATION INSURANCE CERTIFICATE Pursuant to Section 1861 of the State Labor Code, each Contractor to whom a public works contract has been awarded shall sign the following certificate and shall submit same to the City of Hermosa Beach prior to performing any work on this contract: I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for worker's compensation or to undertake self- insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract. CONTRACTOR: _______________________. __(TITLE)_______________________ Date 621 622 623 624 625 626 627 628 629 630 631 632 633 634 635 636 637 638 639 640 641 642 643 644 645 646 647 648 649 650 651 652 653 654 655 656 657 658 659 660 661 662 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 22-0300 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of May 10, 2022 TENTATIVE FUTURE AGENDA ITEMS Attached is the current list of tentative future agenda items for Council’s information. Attachments: Tentative Future Agenda Items City of Hermosa Beach Printed on 5/6/2022Page 1 of 1 powered by Legistar™663 May 4, 2022 Honorable Mayor and Members Regular Meeting of of the Hermosa Beach City Council May 10, 2022 TENTATIVE FUTURE AGENDA ITEMS MAY 24, 2022 @ 5:00 PM INITIAL DATE CLOSED SESSION MAY 24, 2022 @ 6:00 PM PRESENTATIONS PROCLAMATION DECLARING JUNE 2021 AS PRIDE MONTH IN HERMOSA BEACH PRESENTATION ON COMMUNITY SURVEY CITY MANAGER REPORTS Police Chief Update CITY COUNCILMEMBER COMMENTS Updates from City Council Ad Hoc Subcommittees and Standing Committee Delegates/Alternates CONSENT CALENDAR City Council Minutes City Clerk Ongoing Check Registers Finance Director Ongoing Revenue Report, Expenditure Report and CIP Report by Project for March and April 2022 Finance Director Ongoing City Treasurer’s Report and Cash Balance Report for March and April 2022 City Treasurer Ongoing Cancellation of Certain Checks City Treasurer Ongoing Capital Improvement Program Status Report Public Works Director Ongoing Recommendation to receive and file the action minutes of the Public Works Commission meeting of March 16, 2022 Public Works Director Ongoing Recommendation to receive and file the action minutes of the Economic Development Committee meeting of May 2, 2022 Interim Community Development Director Ongoing Recommendation to receive and file the action minutes of the Planning Commission meeting of May 17, 2022 Interim Community Development Director Ongoing Planning Commission Tentative Future Agenda Items Interim Community Development Director Ongoing Assembly Bill 361 Compliance City Clerk Ongoing South Bay Workforce Investment Board 3rd Quarter Summary for 2021-2022 City Manager Quarterly Consideration of Arakelian Enterprises, Inc (DBA Athens Services) request for an annual rate adjustment to the maximum rates for solid waste services Environmental Programs Manager Annual Purchase of Electric Vehicles for Police Department – Community Services Division Police Chief Staff Request Apr. 18, 2022 MUNICIPAL MATTERS Leadership Hermosa Beach Class of 2022 Class Project Deputy City Manager/Public Works Director Annual Consider the City’s options, in light of the cannabis initiative filed with the City Clerk by Colton Chacker on November 17, 2021, and provide direction regarding next steps City Manager Council Direction Apr. 12, 2022 Update and extension of temporary outdoor dining and downtown lane reconfigurations Environmental Programs Manager Staff Request Mar. 24, 2022 Update Municipal Code Chapter 1.06 to also include the Hermosa Beach wordmark in our ordinance City Manager/Senior Management Analyst Staff Request Feb. 8, 2022 Award Landscape Maintenance Services Contract Public Works Director Staff Request May 3, 2022 Award Janitorial Services Contract Public Works Director Staff Request May 3, 2022 FUTURE AGENDA ITEMS Tentative Future Agenda Items City Manager Ongoing 664 2 THURSDAY, JUNE 2, 2022 @ 5:00 PM BUDGET STUDY SESSION JUNE 14, 2022 @ 5:00 PM INITIAL DATE CLOSED SESSION JUNE 14, 2022 @ 6:00 PM CITY MANAGER REPORTS Police Chief Update CITY COUNCILMEMBER COMMENTS Updates from City Council Ad Hoc Subcommittees and Standing Committee Delegates/Alternates CONSENT CALENDAR City Council Minutes City Clerk Ongoing Check Registers Finance Director Ongoing Adoption of the 2022-23 Appropriations Limit Finance Director Annual 2020-21 Annual Comprehensive Financial Report (Including Report from Independent Auditor) Finance Director Annual Los Angeles Fire Services and McCormick Ambulance Monthly Report for April 2022 Emergency Management Coordinator Ongoing Assembly Bill 361 Compliance City Clerk Ongoing Contract extension and amendment to the Professional Services Agreement for JHD Planning, LLC for the Housing Element Interim Community Development Director Staff Request May 3, 2022 PUBLIC HEARINGS – 6:30 PM Adoption of Fiscal Year 2022-23 Budget Finance Director Annual Public Hearing on Hermosa Beach Landscaping and Street Lighting District 2022-2023 Public Works Director Annual MUNICIPAL MATTERS Approval of the Economic Development Strategy Interim Community Development Director Staff Request Apr. 6, 2022 Participation in Beach Cities Transit (BCT) Line 109 Agreement, with no required financial contribution from the City for Fiscal Year 2022-2023, with the Cities of El Segundo, Manhattan Beach and Redondo Beach, Funded from Proposition A Funds. Interim Community Development Director Staff Request Apr. 28, 2022 Authorize the SBCCOG to contract for alert and warning services through Everbridge and Alert South Bay on behalf of the City of Hermosa Beach Emergency Management Coordinator Staff Request Jan. 27, 2022 FUTURE AGENDA ITEMS – CITY COUNCIL Future Agenda Items City Manager Ongoing NO MEETING JUNE 28, 2022 CANCELLED DUE TO LACK OF QUORUM 665 3 JULY 12, 2022 @ 5:00 PM INITIAL DATE CLOSED SESSION JULY 12, 2022 @ 6:00 PM PRESENTATIONS SOUTHERN CALIFORNIA EDISON ANNUAL RELIABILITY REPORT RECOGNIZING NATIONAL PARKS AND RECREATION MONTH CITY MANAGER REPORTS Police Chief Update CITY COUNCILMEMBER COMMENTS Updates from City Council Ad Hoc Subcommittees and Standing Committee Delegates/Alternates CONSENT CALENDAR City Council Minutes City Clerk Ongoing Check Registers Finance Director Ongoing Los Angeles Fire Services and McCormick Ambulance Monthly Report for May 2022 Emergency Management Coordinator Ongoing Assembly Bill 361 Compliance City Clerk Ongoing Recommendation to receive and file the action minutes of the Planning Commission meeting of June 21, 2022 Interim Community Development Director Ongoing Recommendation to receive and file the action minutes of the Parks, Recreation and Community Resources Advisory Commission meeting of May 3 and June 16, 2022 Community Resources Manager Ongoing PUBLIC HEARINGS – 6:30 PM Public Hearing on the Annual Levy for the Sewer Charge and Engineers Report Public Works Director Annual Public Hearing to review delinquent solid waste collection (refuse) charges for consideration of placing said charges on the property tax rolls as a special assessment. The assessment would affect only those properties with refuse bills delinquent as of March 31, 2022 Environmental Programs Manager Annual MUNICIPAL MATTERS Award of Crossing Guard Contract Police Chief Staff Request Apr. 6, 2022 Vacancy-Civil Service Board Term Expiration-Report Back and Schedule Applicant Interviews for July 26, 2022 City Clerk Council Direction Apr. 26, 2022 FUTURE AGENDA ITEMS – CITY COUNCIL Future Agenda Items City Manager Ongoing THURSDAY, JULY 21, 2022 @ 5:00 PM JOINT MEETING WITH ALL BOARDS/COMMISSIONS 666 4 JULY 26, 2022 @ 4:30 PM APPLICANT INTERVIEWS FOR CIVIL SERVICE BOARD JULY 26, 2022 @ 5:00 PM INITIAL DATE CLOSED SESSION JULY 26, 2022 @ 6:00 PM CITY MANAGER REPORTS Police Chief Update CITY COUNCILMEMBER COMMENTS Updates from City Council Ad Hoc Subcommittees and Standing Committee Delegates/Alternates CONSENT CALENDAR City Council Minutes City Clerk Ongoing Check Registers Finance Director Ongoing Revenue Report, Expenditure Report and CIP Report by Project for May 2022 Finance Director Ongoing City Treasurer’s Report and Cash Balance Report for May 2022 City Treasurer Ongoing Cancellation of Certain Checks City Treasurer Ongoing Capital Improvement Program Status Report Public Works Director Ongoing Recommendation to receive and file the action minutes of the Public Works Commission meeting of May 18, 2022 Public Works Director Ongoing Recommendation to receive and file the action minutes of the Planning Commission meeting of July 19, 2022 Interim Community Development Director Ongoing Planning Commission Tentative Future Agenda Items Interim Community Development Director Ongoing Assembly Bill 361 Compliance City Clerk Ongoing FUTURE AGENDA ITEMS Tentative Future Agenda Items City Manager Ongoing 667 5 PENDING STRATEGIC PLAN ITEMS STATUS / TENTATIVE MEETING DATE Update Personnel Policies Human Resources Manager Pending Labor Negotiations/Meet & Confer Process Beach Policy/Regulations (Continued from meeting of October 27, 2016) Community Resources Manager On hold by Council Alternative Fuel Transportation Report, Nov. 2016 Environmental Analyst Community Choice Aggregation Direction, Dec. 2016 Environmental Programs Manager PENDING NEW ITEMS STATUS / TENTATIVE MEETING DATE Approval of the Municipal Lease Policy Initiated by: Staff Request Jun. 12, 2018 Community Resources Manager Document Retention Policy Initiated by: Staff Request Nov. 28, 2018 City Clerk Pending Deputy City Clerk Appointment Landscape and Street Lighting District Assessment Adjustment (mail-in election authorization) Initiated by: Council Direction Jul. 9, 2019 Public Works Director To be included in Revenue Strategy Study Session (March 3, 2022). PW staff has funding to prepare an assessment adjustment study and will advance that effort – it is anticipated that the study will take approximately 2 to 3 months to complete. If council agrees to advance the adjustment, it will need to go to a city-wide ballot. The annual assessment is required to go to council each year for approval and may need to go to council separately before the ballot vote. It was last approved at the 7/13/2021 council meeting. Pavement Condition Index Update Initiated by: Staff Request Sept. 23, 2019 Public Works Director The new pavement management plan report is being prepared and is anticipated to be completed in approximately 2 to 3 months. PW staff will prepare a staff report with the updated document and have our consultant available to present the item to council. Public Records Request Guidelines Initiated by: Staff Request Oct. 14, 2019 City Clerk/Assistant to the City Manager Pending Deputy City Clerk Appointment Emergency Services Municipal Code Chapter 2.56 Update Emergency Management Coordinator Waiting for State to review proposed language changes Return to Council to discuss a full ban on tobacco sales and to include all available data related to other communities who have adopted complete bans Initiated by: Council Direction Jan. 28, 2020 Interim Community Development Director Staff to work with BCHD to consider appropriate timing to return to consider a full ban Consideration of licensing agreement/fees for use of City logo Initiated by: Council Direction Jun. 9, 2020 City Attorney The City will develop a licensing agreement for commercial uses of the City logo as part of a comprehensive 668 6 Administrative Memorandum (AM) on City Branding and Logo Use by City Staff. City staff will begin drafting the AM after finalizing the City’s style guide and filing its “Intent to Use” trademark application for the City logo with the USPTO. As part of developing a Licensing Agreement for the Commercial Use of the City Logo, staff will establish a process for reviewing and handling these requests. This process will likely include the negotiation of royalties and as well as the preparation of a staff report to obtain Council approval to enter into the agreement. Only once after the City receives the issuance of a Notice of Allowance from the USPTO can it begin approving applications for commercial uses of the logo. Follow-up on Mayor’s Pledge Initiated by: Council Direction August 25, 2020 City Manager’s Office/Police Chief Pending proposal from Sunny Lee Ordinance to regulate nuisance Outdoor Lighting Initiated by: Staff Request June 3, 2021 Interim Community Development Director Council referred to Planning Commission at June 2021 meeting, tentatively scheduled for Planning Commission, February 2022 An Ordinance of the City of Hermosa Beach, California, adding Chapter 12.42 to the Hermosa Beach Municipal Code to require property owners to repair the sidewalk area abutting their real property Initiated by: Staff Request June 12, 2021 City Attorney Update on single use plastics ordinance and resources needed to meet compliance (Supported by Massey, Campbell, Armato) Initiated by: Council Direction October 26, 2021 Environmental Program Manager PLAN Hermosa 5-year check-in on milestones (Supported by Massey, Campbell, Armato, Jackson) Initiated by: Council Direction October 26, 2021 Interim Community Development Director/Environmental Program Manager Public Hearing to discuss 2023-2024 Residential and Employee Parking Permits Initiated by: Council Direction January 31, 2022 City Manager Consideration of Non-Profit Grant Program Initiated by: Council Direction March 9, 2022 Deputy City Manager 669