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HomeMy WebLinkAbout06/24/14          Important Information about Real Estate Signs in Hermosa Beach    SBAOR has learned that Hermosa Beach city officials are stepping up enforcement of signage laws. A  number of Open House and lead‐in signs have recently been confiscated from areas where we  understand that signs have been placed in the past. In fact, we are told that over the weekend of May 3‐ 4, 2014 nearly two dozen signs were taken by code enforcement.    Our conversations this week with city officials indicate that Hermosa Beach has added new code  enforcement resources and is enforcing existing codes more rigorously. We have expressed concerns to  the City and we plan to work closely with the City Council and code enforcement officials in order to  remedy the current situation.    Please read carefully this document of Frequently Asked Questions and share it with REALTORS® in your  offices and in your community. If you have any questions, please call SBAOR Government Affairs at  (310)326‐3010 ext. 715.    Has the city passed a new law on signs? Why is there more enforcement now?  The City of Hermosa Beach has passed no new signage laws leading up to the increased enforcement.  Rather, the City is using new resources to enforce existing signage laws only. Signs are not permitted on  any public property; this includes sidewalks, medians, and the Greenbelt which runs in parallel between  Ardmore Ave. and Valley Dr. While this has been the case for some time, the City has not always had  sufficient resources to enforce it.    Are only real estate signs being confiscated?  No. Code enforcement officials tell SBAOR that all signs – including REALTOR® signs – are being subject  to enforcement and are being removed if found to be illegally placed.    I believe that my sign has been confiscated. How can I get it back? Will there be a fine?  Go to the Department of Code Enforcement at Hermosa Beach City Hall, 1315 Valley Dr. You should  show your business card to claim your signs. While the City has the authority to impose fines up to $100,  we understand that officials are in an “education” period and are not currently imposing fines.    Where are my signs permitted and not permitted in the city?  Signs are not permitted on public property and public rights‐of‐way, including sidewalks and medians.  They are permitted on your listing and also on any private property as long as you secure that property  owner’s permission. Code enforcement has assured SBAOR that they will not confiscate signs from  private property. The Hermosa Beach Municipal Code discusses signage here (HBMC Chapter 17.50  "Signs"). If you believe that your sign was confiscated from private property, then contact Code  Enforcement at (310)318‐0235 or SBAOR Government Affairs at (310)326‐3010.    If I cannot place my signs on certain sidewalks and on the Greenbelt, then there is no practical place  to put them and I cannot market my listing. What I can do?  SBAOR has heard from REALTORS® like you who tell us that it is impractical or impossible in many areas  of the City to put Open House or lead‐in signs on any place other than public property. It is important to  REALTORS® and to SBAOR that your listings find qualified buyers in the most efficient and effective  manner possible while preserving the community’s quality of life. In the way that other cities in  California permit limited placement of signs on some parts of public property, so too we plan to  approach the leaders of Hermosa Beach in order to craft a solution that is it fit for all parties involved.    How can I get more information about real estate signs in Hermosa Beach?  You may contact David Kissinger at SBAOR Government Affairs at (310)326‐3010 ext 725 or  david@southbayaor.com. Watch this space for more updates as they become available. In addition, you  may review information available at the Hermosa Beach website, and in particular in the Department of  Code Enforcement or by calling (310)318‐0235.  From: F.O. Huebscher [mailto:fred@politicalscientists.com] Sent: Monday, June 23, 2014 3:08 PM To: Nanette Barragan; Michael DiVirgilio; Peter Tucker; Carolyn Petty; Hany Fangary; Tom Bakaly; Ann Yang; Elaine Doerfling Subject: Item 2(a) on the City Council Agenda of June 24, 2014 Dear City Manager Bakaly and Councilmembers, I am writing to you about Item 2(a) on the City Council Agenda of June 24, 2014. I have a few questions: 1. Will doubling the salary of the City Clerk for six months this year have a PERS impact? 2. What will be the additional cost to the City in PERS contributions if the increased salary is approved? 3. What will be the projected annual cost of future retirement benefits for Ms. Doerfling because of this higher salary? 4. It is my understanding that PERS retirement pension payments are based upon the highest one year salary of the retiree, is this true? 5. If so, would increasing Ms. Doerfling's salary this year make 2014 her highest one year salary as an employee of the City? 6. And if this would be her highest one year salary would her PERS retirement benefit thus be paid based on 2014 with the doubled salary? In the past, I have written in to ask about the status of council meeting minutes that were months behind. Ms. Doerfling has indicated on at least two occasions that she was ill (see attached memos) and thus behind in keeping the City Council Minutes current. I also believe at a recent budget session, Ms. Doerfling indicated that she could use help. When someone asks for assistance the natural course of action should be to hire another person to assist or pay a current employee overtime to assist, not double the person's hours and pay. Providing assistance to Ms. Doerfling especially given her health would seem like the better approach. -- Fred Huebscher 310-374-0568 www.politicalscientists.com 06/04/2014 Check Register CITY OF HERMOSA BEACH 1 8:39:31AM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 73968 6/4/2014 05125 GHASSEMI PETTY CASH, MARIA 1141-04079 Petty Cash Replenishment 001-1101-4305 131.94 001-1203-4300 44.37 001-2101-4317 142.02 001-2101-4305 23.54 001-2101-4313 30.00 001-2101-4314 28.14 001-4101-4305 30.33 001-4201-4305 11.95 001-4201-4317 50.00 001-4202-4317 173.49 001-4601-4305 29.29 001-4601-4328 89.56 160-3102-4201 22.53 715-1206-4305 106.55 715-3302-4311 1.70 001-1201-4317 85.85 Total : 1,001.26 Bank total : 1,001.26 1 Vouchers for bank code :boa 1,001.26Total vouchers :Vouchers in this report 1 1Page: 06/04/2014 Check Register CITY OF HERMOSA BEACH 2 8:39:31AM Page:vchlist 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 2 inclusive, of the check register for 6-4-14 are accurate funds are available for payment, and are in conformance to the budget." By Finance Director Date: 6-17-14 2Page: 06/05/2014 Check Register CITY OF HERMOSA BEACH 1 5:44:07PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 1465 6/5/2014 14008 YORK SCRMA 006022014 W/Comp Claims - 5/30/14 705-1217-4324 24,276.84 Total : 24,276.84 73969 6/5/2014 06290 AIR SOURCE INDUSTRIES INC 615810 Oxygen Refill/ Mar 14 001-2201-4309 396.60 Total : 396.60 73970 6/5/2014 06827 ALL CITY MANAGEMENT 35073 Crossing Guard Service/ 4-13 - 4-26-14 001-2102-4201 4,790.50 Total : 4,790.50 73971 6/5/2014 18540 ALPHABET SIGNS INC 52351 Repair Marquee - 2nd Story Theatre 001-4601-4302 123.20 Total : 123.20 73972 6/5/2014 08741 ANGULO, ANSELMO 2014/4 Polygraph/ Franco 001-2101-4201 150.00 2014/5 Polygraph/ S. Moucheron 001-2101-4201 150.00 Total : 300.00 73973 6/5/2014 13609 ARROYO, ERIC 367 Background Investigations/ Apr 14 001-2101-4201 800.00 Total : 800.00 73974 6/5/2014 13361 AT AND T MOBILITY 287247228942 Cell Phone Usage -PD & CSO Apr 14 001-2101-4304 567.79 001-3302-4304 301.65 Total : 869.44 73975 6/5/2014 16660 ATHENS SERVICES 4040180314-1 CITYWIDE SWEEPING & CLEANING/MAR 14 001-3104-4201 12,024.23 001-3301-4201 6,494.01 001-3304-4201 1,675.33 001-6101-4201 1,330.49 1Page: 06/05/2014 Check Register CITY OF HERMOSA BEACH 2 5:44:07PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 73975 6/5/2014 (Continued)16660 ATHENS SERVICES 4040180414-1 CITYWIDE SWEEPING & CLEANING/APR 14 001-3104-4201 12,024.23 001-3301-4201 6,494.01 001-3304-4201 1,675.33 001-6101-4201 1,330.49 Total : 43,048.12 73976 6/5/2014 08909 CARPET SPECTRUM 042814 Floor Tile Repair - Men's Bathroom/14th 122-8631-4201 952.00 A042814 Floor Repair - Womens's Restroom/14th St 122-8631-4201 866.00 Total : 1,818.00 73977 6/5/2014 00634 CHEVRON AND TEXACO CARD SER 41217122 Gas Card Purchases/ Apr 14 715-2101-4310 526.43 Total : 526.43 73978 6/5/2014 13701 CURRAN, GERARD 050114 Install Pipes & Vents/14th St 122-8631-4201 975.00 050514 Pipe & Toilet Replaceent/14th St 122-8631-4201 985.00 Total : 1,960.00 73979 6/5/2014 00642 DAILY BREEZE, THE 10505299 ROP Ad - Aviaiton PCH 001-8143-4201 440.00 162185 Public Review Ad- Oil Project 001-2109 2,813.00 Total : 3,253.00 73980 6/5/2014 13010 DEPT OF MOTOR VEHICLES 3306419 Vehicle Code Book 001-2101-4305 107.65 Total : 107.65 73981 6/5/2014 00181 EASY READER ER140410006 Legal Ads/General Plan - Apr 14 001-1121-4323 425.00 Total : 425.00 2Page: 06/05/2014 Check Register CITY OF HERMOSA BEACH 3 5:44:07PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 73982 6/5/2014 01397 EMPLOYMENT DEVELOPMENT DEPT L1209909568 Unemployment Claims/ 3rd Quarter 705-1215-4186 6,936.00 Total : 6,936.00 73983 6/5/2014 10668 EXXON MOBIL FLEET GECC 36481727 Gas Card Purchases/ Mar 14 715-2101-4310 5,632.90 715-2201-4310 233.22 715-4202-4310 205.46 715-6101-4310 593.18 715-3302-4310 2,327.59 715-3104-4310 462.40 715-4601-4310 172.96 715-2601-4310 682.56 715-3102-4310 122.37 001-1250 135.11 Total : 10,567.75 73984 6/5/2014 18537 GAUNT, RICK 001-00424162 Refund Business License # 01121157 001-3115 4.00 Total : 4.00 73985 6/5/2014 00427 GFOA 0121001 Annual Membership Dues/ V Copeland 001-1202-4201 190.00 Total : 190.00 73986 6/5/2014 10836 GRAINGER 9421734493 IEGEA Power Relay- 12VDC 715-2101-4311 75.10 Total : 75.10 73987 6/5/2014 05595 HORIZON COACH LINES 88081 Transportation/Gardens of the World 145-3409-4201 816.64 Total : 816.64 73988 6/5/2014 05356 JOHN L HUNTER AND ASSOC INC HBBCR0214 BEV CONTAINER RECYCLE PROG ADMIN/FEB 14 150-3102-4201 308.00 Total : 308.00 73989 6/5/2014 18438 KATIE CASEY PUBLIC RELATIONS 000025 General PR & Communications - Apr 14 3Page: 06/05/2014 Check Register CITY OF HERMOSA BEACH 4 5:44:07PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 73989 6/5/2014 (Continued)18438 KATIE CASEY PUBLIC RELATIONS 705-1209-4201 2,956.50 000026 Oil Project PR - Apr 14 001-2109 1,625.25 Total : 4,581.75 73990 6/5/2014 13632 KINLEY, JON CHBGCD1214 GREASE TRAP & NPDES INSPECTIONS/ FEB 14 001-4201-4201 2,925.00 Total : 2,925.00 73991 6/5/2014 00151 LA CO SHERIFFS DEPARTMENT 143776WC Prisoner Meals/ Mar 14 001-2101-4306 149.80 Total : 149.80 73992 6/5/2014 02175 LIEBERT CASSIDY WHITMORE 178560 Legal, RE: Personnel Matter/ Mar 14 001-1203-4201 50.00 178561 Legal, RE: Personnel Matter/ Mar 14 001-1203-4201 3,998.10 Total : 4,048.10 73993 6/5/2014 18122 MARINE RESEARCH SPECIALISTS 514-5014-11 EIR Serv - Oil Project/ apr 14 001-2109 51,288.20 Total : 51,288.20 73994 6/5/2014 18541 MOHLMAN, PAUL 200086642 Refund Cite # 200086642 001-3302 53.00 Total : 53.00 73995 6/5/2014 17007 ORTLEY TRANSPORTATION 3313 Afterschool Shuttle 5-27 - 6-6-14 145-3411-4201 2,070.00 Total : 2,070.00 73996 6/5/2014 17096 PCR SERVICES CORPORATION 14-1148 Historical Rprt-1221 Hermosa Ave/ Feb 14 001-4101-4201 83.50 Total : 83.50 73997 6/5/2014 13838 PITNEY BOWES INC 41593260205 Postage 001-1208-4305 2,148.36 4Page: 06/05/2014 Check Register CITY OF HERMOSA BEACH 5 5:44:07PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 2,148.36 73997 6/5/2014 13838 PITNEY BOWES INC 73998 6/5/2014 17964 ROMA DESIGN GROUP 140501 STRATEGIC PLAN-ECON DEV CIV CTR/FEB-APR 001-8609-4201 25,575.16 Total : 25,575.16 73999 6/5/2014 18539 ROSE BRAND WIPERS INC 80385 Curtain for Community Theatre 001-4601-4201 6,493.20 Total : 6,493.20 74000 6/5/2014 00146 SPARKLETTS 4472788 050114 Drinking Water - Apr 14 001-4601-4305 120.76 Total : 120.76 74001 6/5/2014 18538 TACTICAL MEDICAL SOLUTIONS INC 19926 Trauma Medical Kits/Active Shooter 001-2101-4350 3,487.56 Total : 3,487.56 74002 6/5/2014 15277 TIME WARNER CABLE 0241673 Internet/Broadband - CR/ Mar 14 715-1206-4201 114.01 241681 Internet/Broadband - CR/ Apr 14 715-1206-4201 92.02 8448300300241699 Internet/Broadband - City Hall/Apr 14 715-1206-4201 45.01 Total : 251.04 74003 6/5/2014 14148 UPS 23R146194 Express Mail - PD/ Apr - May 14 001-2101-4314 7.85 001-2101-4305 15.92 Total : 23.77 74004 6/5/2014 03209 VERIZON WIRELESS LA 9723601161 Blue Check Devices - PD/ Apr 14 153-2106-4201 134.80 9723601163 Cell Phone Usage - CM/ Apr 14 001-1201-4304 109.17 Total : 243.97 74005 6/5/2014 16727 VIDACARE 111601 Medical Supplies - Needle Set 5Page: 06/05/2014 Check Register CITY OF HERMOSA BEACH 6 5:44:07PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 74005 6/5/2014 (Continued)16727 VIDACARE 001-2201-4309 1,142.55 Total : 1,142.55 148597 5/27/2014 00170 SOUTHERN CALIFORNIA GAS CO 01100457009 Gas Bill/ 4-10 to 5-9-14 001-4204-4303 48.03 Total : 48.03 149667 5/27/2014 00170 SOUTHERN CALIFORNIA GAS CO 09790459003 Gas Bill/ 4-10 to 5-9-14 001-4204-4303 110.04 Total : 110.04 149718 5/27/2014 00170 SOUTHERN CALIFORNIA GAS CO 10210459003 Gas Bill/ 4-10 to 5-9-14 001-4204-4303 46.94 Total : 46.94 150155 5/27/2014 00170 SOUTHERN CALIFORNIA GAS CO 13910446007 Gas Bill/ 4-10 to 5-9-14 001-4204-4303 18.64 Total : 18.64 150190 5/27/2014 00170 SOUTHERN CALIFORNIA GAS CO 14120446001 Gas Bill/ 4-10 to 5-9-14 001-4204-4303 29.53 Total : 29.53 943572 5/27/2014 00170 SOUTHERN CALIFORNIA GAS CO 11540469001 Gas Bill/ 4-9 to 5-8-14 001-4204-4303 44.73 Total : 44.73 6052014 6/5/2014 00243 HERMOSA BEACH PAYROLL ACCOUNT 053114 PAYROLL 5/16/14 TO 5/31/14 6Page: 06/05/2014 Check Register CITY OF HERMOSA BEACH 7 5:44:07PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 6052014 6/5/2014 (Continued)00243 HERMOSA BEACH PAYROLL ACCOUNT 001-1103 648,893.64 105-1103 5,383.60 115-1103 2,675.04 117-1103 2,412.71 125-1103 668.73 145-1103 102.92 147-1103 891.71 150-1103 222.90 152-1103 112.81 160-1103 8,406.39 705-1103 3,780.62 715-1103 8,813.28 Total : 682,364.35 Bank total : 888,940.25 45 Vouchers for bank code :boa 888,940.25Total vouchers :Vouchers in this report 45 7Page: 06/05/2014 Check Register CITY OF HERMOSA BEACH 8 5:44:07PM Page:vchlist 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 8 inclusive, of the check register for 6-5-14 are accurate funds are available for payment, and are in conformance to the budget." By Finance Director Date: 6-17-14 8Page: 06/12/2014 Check Register CITY OF HERMOSA BEACH 1 6:12:06PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 74006 6/12/2014 18547 PETTY CASH 04136 Petty Cash Replenishment/ Jun 14 001-1203-4201 1,050.00 Total : 1,050.00 74007 6/12/2014 00321 A T AND T 310 796-6526 991 3 Circuit Billing - May 14 001-2101-4304 108.79 331 254-6071 301 5 Circuit Billing - May 14 001-2101-4304 56.99 333 267-6155 686 9 Circuit Billing - May 14 001-2101-4304 186.16 333 267-6160 767 0 Circuit Billing - May 14 001-2101-4304 58.76 333 267-6161 416 3 Circuit Billing - May 14 001-2101-4304 58.76 333 267-6164 193 5 Circuit Billing - May 14 001-2101-4304 50.12 333 267-6165 717 0 Circuit Billing - May 14 001-2101-4304 50.12 Total : 569.70 74008 6/12/2014 06290 AIR SOURCE INDUSTRIES INC 618128 Oxygen Refill / Apr 14 001-2201-4309 396.60 Total : 396.60 74009 6/12/2014 17965 AMGRAPH GROUP, INC 21915 Install & Remove Flags/ Memorial Day 001-1101-4319 1,506.00 Total : 1,506.00 74010 6/12/2014 05179 AT AND T 0193608382001 Long Dist Charges/ Apr 14 1Page: 06/12/2014 Check Register CITY OF HERMOSA BEACH 2 6:12:06PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 74010 6/12/2014 (Continued)05179 AT AND T 001-1121-4304 0.04 001-1132-4304 0.01 001-1141-4304 0.03 001-1201-4304 0.23 001-1202-4304 0.15 001-1203-4304 0.05 001-1208-4304 0.10 001-2101-4304 7.58 001-2201-4304 0.44 001-4101-4304 0.19 001-4201-4304 0.10 001-4601-4304 0.27 001-1204-4304 0.28 001-3302-4304 0.11 715-1206-4304 0.07 001-4202-4304 0.20 Total : 9.85 74011 6/12/2014 16510 AT AND T 5309455 Long Dist Charges/ Feb 14 715-1206-4304 1.44 001-1121-4304 1.03 001-1132-4304 0.24 001-1141-4304 0.69 001-1201-4304 5.24 001-1202-4304 3.40 001-1203-4304 1.09 001-1208-4304 0.09 001-2101-4304 24.48 001-2201-4304 10.86 001-4101-4304 4.11 001-4201-4304 2.91 001-4202-4304 4.94 001-4204-4321 0.09 001-4601-4304 5.77 001-1204-4304 6.44 001-3302-4304 2.58 2Page: 06/12/2014 Check Register CITY OF HERMOSA BEACH 3 6:12:06PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 74011 6/12/2014 (Continued)16510 AT AND T 5397510 Long Dist Charges/ Mar 14 001-1121-4304 0.77 001-1132-4304 0.17 001-1141-4304 0.50 001-1201-4304 3.84 001-1202-4304 2.48 001-1203-4304 0.79 001-1208-4304 0.06 001-2101-4304 18.01 001-2201-4304 7.73 001-4101-4304 2.94 001-4201-4304 2.28 001-4202-4304 3.79 001-4204-4321 0.09 001-4601-4304 4.15 001-1204-4304 4.69 001-3302-4304 1.85 715-1206-4304 1.03 Total : 130.57 74012 6/12/2014 13361 AT AND T MOBILITY 287016141723 Cell Phone Usage - Apr 14 001-4202-4304 453.44 287247228942 Cell Phone Usage - PD & CSO/ May 14 001-2101-4304 581.35 001-3302-4304 301.65 Total : 1,336.44 74013 6/12/2014 16660 ATHENS SERVICES 404010912-2 Pressure Washing - Comm Ctr/ Oct 12 001-2024 97.22 4040180712-2 4th of July Cleanup/ Jul 12 001-2024 7,571.31 4040181112-2 Pressure Washing/ Nov 12 001-2024 388.88 Total : 8,057.41 74014 6/12/2014 17271 BARROWS, PATRICK 04000 Instructor Pymt # 19614, 17 3Page: 06/12/2014 Check Register CITY OF HERMOSA BEACH 4 6:12:06PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 74014 6/12/2014 (Continued)17271 BARROWS, PATRICK 001-4601-4221 654.50 Total : 654.50 74015 6/12/2014 16371 BEACH GIRL PROPERTIES LLC 112 Parking Meters - 70 14th Street/ May 14 001-3842 650.00 Total : 650.00 74016 6/12/2014 12562 BEACH REPORTER, THE 5102875 Legal Ads - General Plan Mtg/ Apr 14 001-1121-4323 880.00 Total : 880.00 74017 6/12/2014 18517 BROWN, ELMITA 03811 Citation Refund/ # 1612006425 001-3302 96.00 Total : 96.00 74018 6/12/2014 18526 BUBICA, ALEXANDRIA 03822 Citation Refund/ # 200036656 001-3302 48.00 Total : 48.00 74019 6/12/2014 18525 BUTLER, LISA 03821 Citation Refund/ # 200064582 001-3302 53.00 Total : 53.00 74020 6/12/2014 00016 CALIFORNIA WATER SERVICE 4286211111 Water Usage - Apr 14 105-2601-4303 3,185.53 001-6101-4303 16,418.85 001-4204-4303 907.04 001-3304-4303 190.83 Total : 20,702.25 74021 6/12/2014 13079 CLARION HOTEL MANSION INN TR352 Lodging - S. Mayer 001-1201-4317 117.48 Total : 117.48 74022 6/12/2014 18070 COME LAND MAINTENANCE CO INC 78958 JANITORIAL SERVICES/ APR 14 001-4204-4201 8,385.00 4Page: 06/12/2014 Check Register CITY OF HERMOSA BEACH 5 6:12:06PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 8,385.00 74022 6/12/2014 18070 COME LAND MAINTENANCE CO INC 74023 6/12/2014 02823 CRAWFORD, JAMES TR356 Meal Ticket Reimb- Nat'l Fire Academy 001-2201-4317 167.32 Total : 167.32 74024 6/12/2014 18401 CRYSTAL LIGHTING CORP 9759 LED Lights/ Pier Plaza 001-8656-4201 4,378.00 9760 Light Pole & Base/ Valley Park 105-2601-4309 420.00 Total : 4,798.00 74025 6/12/2014 16298 CSDS, INC 8689-1 Software Maint Agreement - GPS 160-3102-4201 530.00 Total : 530.00 74026 6/12/2014 16796 DDL TRAFFIC, INC 3297 Opticom Signal Test 001-2201-4201 825.00 Total : 825.00 74027 6/12/2014 00364 DEPARTMENT OF JUSTICE 030739 Fingerprinting - Apr 14 001-1203-4251 352.00 001-2101-4251 264.00 Total : 616.00 74028 6/12/2014 00122 DUNCAN PARKING TECHNOLOGIES CSBAP000001 Cites Issued & Online Pymts/ Apr 14 001-1204-4201 4,868.46 DSC00020276 Cites Issued & Online Pymts/ Mar 14 001-1204-4201 4,918.60 Total : 9,787.06 74029 6/12/2014 00181 EASY READER 893744 Legal Ads/ Apr 14 001-1121-4323 1,556.13 Total : 1,556.13 74030 6/12/2014 01397 EMPLOYMENT DEVELOPMENT DEPT 93203396 Unemployment Claims/ 2nd Qtr 705-1215-4186 1,892.43 5Page: 06/12/2014 Check Register CITY OF HERMOSA BEACH 6 6:12:06PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 1,892.43 74030 6/12/2014 01397 EMPLOYMENT DEVELOPMENT DEPT 74031 6/12/2014 15059 EVANS, MARLIN 04002 Instructor Pymt # 19587,89 19622 001-4601-4221 1,015.00 Total : 1,015.00 74032 6/12/2014 18522 EVIDON, JULIE 03817 Citation Refund/ # 200043917 001-3302 48.00 Total : 48.00 74033 6/12/2014 17824 EXSEL PROMOTIONS INC 8516 Recognition Plaques/ Awards Dinner 001-1203-4201 513.06 Total : 513.06 74034 6/12/2014 10668 EXXON MOBIL FLEET GECC 36813898 Gas Card Purchases/ Apr 14 715-2101-4310 5,835.23 715-2201-4310 219.30 715-4202-4310 199.72 715-6101-4310 533.33 715-3302-4310 2,144.35 715-3104-4310 658.20 715-4601-4310 112.52 715-2601-4310 318.08 001-1250 141.64 Total : 10,162.37 74035 6/12/2014 16932 FAMILY THEATRE INC 04068 Instructor Pymt # 19503 001-4601-4221 77.00 Total : 77.00 74036 6/12/2014 06344 FIRST CALL STAFFING SERVICES 0709-142781 Temp Services/ Week ending 5-18-14 001-4202-4112 912.00 0709-142897 Temp Services/ Week ending 5-25-14 001-4601-4112 912.00 Total : 1,824.00 74037 6/12/2014 14204 HARTZOG AND CRABILL INC 14-0177 TRAFFIC ENGINEERING SERVICES/ FEB 14 001-3104-4201 160.00 6Page: 06/12/2014 Check Register CITY OF HERMOSA BEACH 7 6:12:06PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 160.00 74037 6/12/2014 14204 HARTZOG AND CRABILL INC 74038 6/12/2014 18518 HEIDNER, MICHAEL 03813 Citation Refund/ # 1812021244 001-3302 48.00 Total : 48.00 74039 6/12/2014 18546 HENAO, WILLIAM 251873 Regis Refund-Co-ed Softball League 001-2111 465.00 Total : 465.00 74040 6/12/2014 05595 HORIZON COACH LINES 88151 Transportation/ Palm Springs Follies 145-3409-4201 1,202.04 Total : 1,202.04 74041 6/12/2014 10820 JENKINS AND HOGIN LLP 22429 Legal, RE: General/ Apr 14 001-1131-4201 20,002.77 22430 Legal, RE: E & B Oil/ Apr 14 001-2109 11,275.25 22431 Legal, RE: Land Use/ Apr 14 001-1131-4201 1,944.80 22432 Legal, RE: Prosecution Services/ Apr 14 001-1132-4201 27,060.00 22433 Legal, RE: Undersea Fiber Optic/ Apr 14 001-1131-4201 3,690.00 Total : 63,972.82 74042 6/12/2014 13840 JOHN M CRUIKSHANK 000012455 ENGINEERING SER - PIER REPAIRS/ APR 14 122-8659-4201 278.00 Total : 278.00 74043 6/12/2014 18132 JOHNSON, LESLIE 03999 Instructor Pymt # 19472-75, 19477-79 001-4601-4221 7,392.00 Total : 7,392.00 74044 6/12/2014 12162 JOL DESIGN 4914 Valley Park Day Camp T-shirts/ Deposit 001-4601-4201 1,186.74 7Page: 06/12/2014 Check Register CITY OF HERMOSA BEACH 8 6:12:06PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 74044 6/12/2014 (Continued)12162 JOL DESIGN 5514 Valley Park Day Camp Hats - Deposit 001-4601-4201 87.35 Total : 1,274.09 74045 6/12/2014 00151 LA CO SHERIFFS DEPARTMENT 144244WC Prisoner Meals/ Apr 14 001-2101-4306 171.20 Total : 171.20 74046 6/12/2014 18516 LANG, SHIBO 03810 Citation Refund/ # 200072271 001-3302 53.00 Total : 53.00 74047 6/12/2014 11065 LAOLAGI, ROSE 04005 Instructor Pymt # 19598 001-4601-4221 227.50 Total : 227.50 74048 6/12/2014 00317 LEAGUE OF CALIFORNIA CITIES TR 362 Regis/ S. Margolin-Mayer-Econ Dev Conf 001-1201-4317 50.00 Total : 50.00 74049 6/12/2014 18544 LEONARD, LISA 252285 Damage Deposit Refund # 101300 001-2111 250.00 Total : 250.00 74050 6/12/2014 18274 MAGNUM VENTURE PARTNERS 04001 Instructor Pymt # 19654,58 60 001-4601-4221 1,274.00 Total : 1,274.00 74051 6/12/2014 18071 MERCHANTS LANDSCAPE SERVICES 42595 LANDSCAPE MAINT/ APR 14 001-6101-4201 15,590.00 42596 LANDSCAPE MAINT/ APR 14 105-2601-4201 3,306.00 Total : 18,896.00 74052 6/12/2014 17431 MICROSOFT CORPORATION E070007K1U Office 365 Hosted Email/ May 14 715-1206-4201 6.00 8Page: 06/12/2014 Check Register CITY OF HERMOSA BEACH 9 6:12:06PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 74052 6/12/2014 (Continued)17431 MICROSOFT CORPORATION E070007KNJ Office 365 Hosted Email/ May 14 715-1206-4201 260.00 E070009HL1 Office 365 Hosted Email/ Jun 14 715-1206-4201 234.00 E070009LQO Office 365 Hosted Email/ Jun 14 715-1206-4201 395.50 Total : 895.50 74053 6/12/2014 18545 MIRKOVICH, JULIA 252338 Damge Deposit Refund # 101942 001-2111 500.00 Total : 500.00 74054 6/12/2014 18519 NOYOLA, RICH 03814 Citation Refund/ # 200045884 001-3302 53.00 Total : 53.00 74055 6/12/2014 13114 OFFICE DEPOT 704926174001 Office Supplies/ Apr 14 001-4601-4305 84.14 704926236001 Office Supplies/ Apr 14 001-4601-4305 11.94 706461672001 Office Supplies/ Apr 14 001-1208-4305 117.56 Total : 213.64 74056 6/12/2014 08914 QUICK CRETE PRODUCTS CORP.0097825 Memorial Bench - Alan Fleming 001-6101-5401 1,205.54 0097826 Memorial Bench - John Tylka 001-6101-5402 1,205.54 0097827 Memorial Bench - Kathe Robbs 001-6101-5402 1,205.54 Total : 3,616.62 74057 6/12/2014 18521 RADKE, ROBERT 64394 Refund Cite # 1412001415 001-3302 53.00 Total : 53.00 9Page: 06/12/2014 Check Register CITY OF HERMOSA BEACH 10 6:12:06PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 74058 6/12/2014 18223 RAIMI AND ASSOCIATES INC 14-802 GEN & COASTAL PLAN UPDATE/ MAR 14 150-4104-4201 78,410.83 Total : 78,410.83 74059 6/12/2014 18530 RALPH ANDERSON ASSOCIATES 11471 Class & Comp Study/ Mar - May 14 001-1203-4201 8,500.00 Total : 8,500.00 74060 6/12/2014 08837 REDONDO BEACH, CITY OF 20507 Annual TMDL Monitoring 160-3102-4251 5,785.02 Total : 5,785.02 74061 6/12/2014 18524 RHODES, GARY 03819 Citation Refund/ # 200053613 001-3302 53.00 Total : 53.00 74062 6/12/2014 17781 RNL INTERPLAN INC 348501 Conceptual Drawings-Yard Relocate/Apr 14 001-2109 18,123.75 Total : 18,123.75 74063 6/12/2014 16921 ROUND STAR WEST LLC 04004 Instructor Pymt # 19460,19517,13 001-4601-4221 1,324.40 Total : 1,324.40 74064 6/12/2014 18523 RUBASKY, BRANDEN 03818 Citation Refund/ # 200057747 001-3302 53.00 Total : 53.00 74065 6/12/2014 03726 RUSHER AIR CONDITIONING 202278 AC Maint - City Hall/ Feb 14 001-4204-4201 637.52 Total : 637.52 74066 6/12/2014 17817 SANTA MONICA UCLA MED CENTER 1138961600 SART Exam/ # 1138961600 001-2101-4201 730.00 Total : 730.00 74067 6/12/2014 03353 SBCU VISA 041514 CC Lodging - 4 Officers/Motorcylce Update 001-2101-4312 755.28 10Page: 06/12/2014 Check Register CITY OF HERMOSA BEACH 11 6:12:06PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 74067 6/12/2014 (Continued)03353 SBCU VISA 043014 Finance Charge/ Credit Card 001-2101-4201 18.57 043014a cc Finance Charge/ Credit Card 001-1101-4201 52.11 043014b CC Finance Charge/ Credit Card 001-2201-4201 12.96 043014c CC Finance Charge/ Credit Card 001-2101-4201 14.78 1832422cc Drill Base Plate 001-3104-4309 391.32 22518492 SURVEY PLAN SUBSCRIPTION - PD 001-2101-4305 204.00 2684599CC Tuit/ D. Garkow - Computer Investigation 001-2101-4312 99.00 28cc Refreshments - Closed Session 001-1101-4305 110.00 4cc Lunch - Economic Development 001-1101-4305 53.33 52908 Refreshments - Study Session 001-1101-4305 83.35 693cc 6 Books 001-1101-4305 82.15 BG1VVC-6642 Computer Cart - PD 001-2101-5401 469.41 Total : 2,346.26 74068 6/12/2014 18520 SCHMITZ, AARON 03815 Citation Refund/ # 200043176 001-3302 38.00 Total : 38.00 74069 6/12/2014 18543 SILVIOS 100 LLC 04141 Catering - Awards Dinner 001-1203-4201 1,467.96 052714 Employee Recognition Dinner 001-1203-4300 3,680.64 11Page: 06/12/2014 Check Register CITY OF HERMOSA BEACH 12 6:12:06PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 5,148.60 74069 6/12/2014 18543 SILVIOS 100 LLC 74070 6/12/2014 08812 SOUTH BAY REGIONAL PUBLIC COMM 08812 Radio Maint 001-2101-4307 134.75 181 Earpiece's / Tait Radios 001-2201-5401 976.48 186 Radio Maint - PD 001-2101-4307 95.22 Total : 1,206.45 74071 6/12/2014 18210 STANTEC CONSULTING 792336 DESIGN PLAN & SPEC-PCH IMPROVE/ APR 14 147-8160-4201 1,165.50 Total : 1,165.50 74072 6/12/2014 14019 SUNSTATE EQUIPMENT COMPANY 5750497-002 Equip Rental/ 20KW Generator 001-8651-4201 1,236.47 Total : 1,236.47 74073 6/12/2014 18456 SURFSIDE RESTORATION AND WATER 3699b PARKING STRUCTURE REPAIRS/ MAR 14 001-8663-4201 1,140.75 3706 PARKING STRUCTURE REPAIRS/ MAY 14 001-8663-4201 6,376.50 Total : 7,517.25 74074 6/12/2014 18117 TAPACLO, ERIC A 201 RUCKER HOSE COUPLINGS 001-2201-5402 3,318.55 Total : 3,318.55 74075 6/12/2014 15277 TIME WARNER CABLE 8448300300241673 Internet/Broadband - CR/ May 14 715-1206-4201 80.00 8448300300241681 Internet/Broadband - Yard/ May 14 715-1206-4201 179.57 8448300300241699 Internet/Broadband - City Hall/ May 14 715-1206-4201 40.00 Total : 299.57 74076 6/12/2014 00123 TRIANGLE HARDWARE 019246 Hardware Supplies/ May 14 12Page: 06/12/2014 Check Register CITY OF HERMOSA BEACH 13 6:12:06PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 74076 6/12/2014 (Continued)00123 TRIANGLE HARDWARE 105-2601-4309 278.20 019247 Hardware Supplies/ May 14 105-2601-4309 291.36 019249 Hardware Supplies/ May 14 105-2601-4309 256.68 19248 Hardware Supplies/ May 14 001-3104-4309 296.53 19250 Hardware Supplies/ May 14 105-2601-4309 293.10 19283 Hardware Supplies/ May 14 001-6101-4309 141.53 19284 Hardware Supplies/ May 14 001-3104-4309 251.29 19285 Hardware Supplies/ May 14 715-4206-4309 37.45 19287 Hardware Supplies/ May 14 001-3104-4309 67.07 19288 Hardware Supplies/ May 14 715-4202-4311 141.39 19289 Hardware Supplies/ May 14 001-4204-4309 176.29 19290 Hardware Supplies/ May 14 105-2601-4309 238.37 19310 Hardware Supplies/ May 14 105-2601-4309 173.31 Total : 2,642.57 74077 6/12/2014 18389 UNIFORM DEPOT INC 450 Uniforms/ A Lopez 001-2101-4314 1,062.25 Total : 1,062.25 74078 6/12/2014 09672 VCA COAST ANIMAL HOSPITAL 27538123 Vet Services - K9 Officer/ Keef 170-2105-4201 336.24 Total : 336.24 13Page: 06/12/2014 Check Register CITY OF HERMOSA BEACH 14 6:12:06PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 74079 6/12/2014 00015 VERIZON CALIFORNIA 00015 Phone Charges - May 14 001-1203-4304 14.34 001-1141-4304 36.24 310 197-3683 Phone Charges - Apr 14 715-1206-4304 231.00 001-4204-4321 191.72 001-2101-4304 812.52 001-4601-4304 89.64 001-4202-4304 133.26 001-4201-4304 138.31 001-3304-4304 55.32 001-1204-4304 42.10 001-3302-4304 68.87 Total : 1,813.32 74080 6/12/2014 16294 VISION INTERNET PROVIDERS INC 27070 WEB HOSTING/ APR 14 715-1206-4201 200.00 27314 WEB HOSTING/ MAY 14 715-1206-4201 200.00 Total : 400.00 74081 6/12/2014 17675 WISE INC 1097034-01 Rotary Hammer Kit 160-3102-4309 756.94 1097039-02 Latex Gloves & Safety Glasses 160-3102-4309 518.40 Total : 1,275.34 74082 6/12/2014 17569 ZGRAY SPORTS LLC 04003 Instructor Pymt # 19464 & 19511 001-4601-4221 800.80 Total : 800.80 6122014 6/12/2014 14008 YORK SCRMA 06122014 W/COMP CLAIMS 5/31/14 TO 6/6/14 705-1217-4324 11,757.80 Total : 11,757.80 Bank total : 335,482.07 78 Vouchers for bank code :boa 14Page: 06/12/2014 Check Register CITY OF HERMOSA BEACH 15 6:12:06PM Page:vchlist Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 335,482.07Total vouchers :Vouchers in this report 78 "I hereby certify that the demands or claims covered by the checks listed on pages 1 to 15 inclusive, of the check register for 6-12-14 are accurate funds are available for payment, and are in conformance to the budget." By Finance Director Date: 6-17-14 15Page: June 19, 2014 Honorable Mayor and Members Regular Meeting of of the Hermosa Beach City Council June 24, 2014 TENTATIVE FUTURE AGENDA ITEMS JULY 8, 2014 PRESENTATIONS AES CORPORATION POWER PLANT UPDATE - CITY OF REDONDO BEACH REPRESENTATIVE CONSENT CALENDAR Groundwater Monitoring Wells – Sea Level Rise Public Works Director PUBLIC HEARINGS Final EIR Community Development Director MUNICIPAL MATTERS E&B’s Proposed Oil Drilling and Production Project Update Community Development Director AES/Redondo Beach Power Plant Policy Direction Community Development Director City of Redondo Beach Harbor Dr. / Herondo St. Improvement Project Public Works Director JULY 22, 2014 CONSENT CALENDAR Recommendation to receive and file the action minutes of the Emergency Preparedness Advisory Commission meeting of May 5, 2014 Fire Chief Recommendation to receive and file the action minutes of the Planning Commission meeting of July 15, 2014 Community Development Director MUNICIPAL MATTERS E&B’s Proposed Oil Drilling and Production Project Update Community Development Director Oil Project:  Development Agreement  EIR Certification  Ballot Measure Community Development Director Free Parking and Demand Pricing Downtown Management Analyst AUGUST 12, 2014 – NO MEETING AUGUST 26, 2014 MUNICIPAL MATTERS E&B’s Proposed Oil Drilling and Production Project Update Community Development Director Policy review regarding 50/50 rule Community Development Director Events Policy Direction Assistant to the City Manager 2 PENDING ITEMS Consideration of reduction of business license fee request from Carol G. Weiss, Ph.D. Finance Director Green Zone Recommendations and the Installation of Silver and Green Meters Downtown Police Chief Procurement Policies – RFP City Manager Ethics Policy City Manager & Finance Director Contract Public Information and Communications Plan City Manager SCE Update City Manager SEPTEMBER 2014 Citywide Service Level/Performance Benchmark System Report Finance Director AES Resolution, Intervener, Future Development on the Site Community Development Director Communications Plan and Direction City Manager Living Streets Update Report Public Works Director Public Safety Service and Staffing: Quarterly Report Police Chief / Fire Chief Event Policy Discussion City Manager Public Information and Communications Plan Adoption City Manager Cypress Avenue – Direction on Zoning Changes for Manufacturing Uses Community Development Director Update on Direction for Schools Strategy and Specific Actions: Support for Top Quality Schools City Manager Strategic Plan – Quarterly Update City Manager Fee Discussion – EV Chargers Public Works Director Priority Based Budgeting Report Finance Director Downtown Action Plan Community Development Director OCTOBER 2014 Carbon Neutral Municipality – Economic Comparison and Solar Report – Early Actions and Overall Direction City Manager Carbon Neutral Municipality: A. SCE Street Light Energy Efficiency: Update Report B. Municipal GHG Emissions Inventory: Update Report (SBCCOG) Community Development Director Carbon Neutral Community Policy, Direction on Plan Development Community Development Director NOVEMBER 2014 Compensation Study and Policy Direction Assistant to the City Manager National Citizen Survey Overview Assistant to the City Manager DECEMBER 2014 Comprehensive City Facilities Master Plan – Award Contract Public Works Director Carbon Neutral Municipality: A. Final SCAG Report: Setting Target, Action Plan, Funding – Employee Commute Program B. Net Zero Carbon Policy for City Facilities and Service Delivery Analysis C. Renewable Energy Policy for City Facilities and Service Delivery Community Development Director Strategic Plan – Quarterly Update City Manager JANUARY 2015 None FEBRUARY 2015 Employee Salaries/Benefits Funding Assistant to the City Manager PARKS, RECREATION AND COMMUNITY RESOURCES ADVISORY COMMISSION MINUTES OF THE JUNE 3RD, 2014 MEETING The meeting was called to order by Commissioner Raymond. Pledge of Allegiance Roll Call Present: Commissioners Laura Raymond, Robert Rosenfeld, Jani Lange, Dylan Lauzon, and Jessica Guheen Assistant to the City Manager Diane Strickfaden Acting Senior Recreation Supervisor Lisa Nichols Approval of Minutes: December April 1st, 2014 Motion by Commissioner Lauzon to approve the Minutes of April 1st, 2014. Commissioner Rosenfeld seconded the motion. All Ayes. Public Comment No Public Comment. Correspondence A. Supplemental Petition from Kawni Gilroy re: South Park Field Usage B. Supplemental E-mails re: South Park Field Usage Presentation by Ed Almanza, Environmental Consultant, on Oil Project Draft Environmental Impact Report in Relation to Parks and Recreation Mr. Almanza presented the draft Environmental Impact Report as it relates to parks and recreation areas. Locations discussed during the presentation included the Green Belt, Clark Field and South Park due to their close proximity to the project location. Possible impacts discussed included relative risks of safety that are associated with any drilling project, odors, toxic air emissions, affected air quality, higher noise levels from drilling, trucks, construction, demolition, visual impacts and traffic due to trucks. The final Environmental Impact Report, which includes responses to all comments made during the public review period, will go to the Planning Commission for a recommendation to City Council. Motion by Commissioner Raymond recommending the Planning Commission not approve the proposed EIR due to environmental impact to adjacent parks. Commissioner Guheen Seconded the motion. Motion passed with four Ayes. Commissioner Lauzon opposed. Matters for Commission Consideration A. Discussion of Contract Sports League at South Park Commissioner Guheen recused herself due to her proximity to the discussed location. Strickfaden presented the Staff Report including a discussion of the Commission’s Field Use Policy previously adopted. Commissioner Raymond opened up for Public Comment. Contract Sports League Director, Dennis Hrboka, provided history on the Flag Football League based on his 15 years of involvement. He stated that the condition of the field, such as the missing patches of grass, has always been an issue and The Flag Football League is five on five teams using half of the field and the problem area resides outside of their designated playing area as well. Commissioner Rosenfeld questioned the need for cleats. Hrboka replied that cleats are needed for safety reasons due to the condition of the field. Commissioner Rosenfeld asked the total revenue brought in to the City from the league. It is 30% of all revenue collected, equaling to $3,000-$4,000 a year, which covers maintenance. Hrboka noted that this was the first year the field has been closed for maintenance. Commissioner Lauzon asked the length of a season, and Hrboka answered it is ten weeks with one week of playoffs. There are about 3 seasons a year. Jessica Guheen, Hermosa Beach resident, who has lived next to South Park for 8 years, added the league has 3 seasons a year. She acknowledged benefits of the league such as revenue to the City and the diversity of programs it helps the City offer. However there are issues including foul language, trash, traffic, and an overabundance of space taken, not just half the of the field. Issues such as these could be tied to other City contracted leagues or unpermitted leagues due these issues happening outside of the time allotted for the City’s Flag Football League on Saturdays as well. Commissioner Lauzon agreed that he has noticed more than half of the field is used Saturdays, but agrees that in relation to this league, the mission of Parks and Recreation is being filled. Commissioner Rosenfeld agreed with Commissioner Lauzon, adding that the issue needs to be resolved between the two parties. Commissioner Raymond asked what leagues were grandfathered in due to direction given by Commission on limiting the field use at South Park. Nichols answered that all three current users; USYVL, Beach Cities Sports, and the Flag Football League are grandfathered. Strickfaden clarified the date this direction was given and that no additional users have been added since. Commissioner Raymond asked if the non-contracted leagues could be approached and Strickfaden answered that a Code Enforcement Officer could be assigned this duty. The Commission agreed to uphold their existing field use policy allowing the three grandfathered leagues to play at South Park. Matter is received and filed. Staff Report(s) A. March and April Activity Reports See Activity Report. Note: Total Revenue Reports have not been included due to all revenues not being posted and updated into the Financial System at the time these reports were created. B. Senior Activity Center Update See Senior Center Calendar. Commissioner’s Reports Community Garden/South Park Project – Commissioner Rosenfeld and Commissioner Lauzon Commissioner Lauzon highlighted a recent event held at the Community Garden on Organic Gardening and Composting. Funds are still being raised to assist in making the garden a permanent fixture. Commissioner Lauzon asked for an update on the South Park Project. Strickfaden shared that City Council has approved the concept design and the construction documents are being created. Once ready, a notice will be done inviting bids. The City is likely fully budgeting for Phase 1 of the project as part of the 5 Year CIP, which includes infrastructure and 30-40% of playground elements this year. Friends of the Parks – Commissioner Rosenfeld and Commissioner Lauzon Commissioner Lauzon announced the upcoming Friends of the Parks meeting, that the Movie in Park will most likely be moved to September this year and plans are still being made to hold the annual Pumpkins in the Park event in October. Pet Waste Task Force – Commissioner Guheen Commissioner Guheen did research with Cities similar to Hermosa Beach on how they have resolved issues regarding pet waste, Their approaches have been limited to five key areas; education, policy, signage, enforcement and citizenship. Once this study is done, Hermosa Beach will be rated against the other cities and a recommendation can be made to City Council. Hermosa Arts Foundation – Commissioner Guheen Commissioner Guheen is still seeking contact with the Hermosa Arts Foundation. Historical Society/Museum – Commissioner Raymond and Commissioner Lange Commissioner Lange announced that a new president has been appointed, Norm Rosen. The museum has a new exhibit coming up on the Hermosa Beach Iron Man event. Surfer’s Walk of Fame – Commissioner Lange No Update. Items Requested by Commissioners Seaview Parkette Waste Issue – Commissioner Lange and Commissioner Guheen Strickfaden presented the e-mails sent from residents regarding cat waste found in the sand at Seaview Parkette. A short-term solution is cleaning the sand more frequently. The issue has been shared with Public Works. A long-term solution would be changing out the sand to wood-chips or another type of ground. Commissioner Guheen shared the information she learned on how other Cities handle the issue. Not only is more frequent cleaning of the sand needed, but also for residents to call the necessary City Departments for enforcement. Other Matters Commissioner Guheen asked the Capital Improvement Budget be shared at the next Commission meeting. Strickfaden shared an update regarding the Special Events Calendar. Approval of the calendar was postponed to the City Council Meeting on June 10th. The Special Events Policy in general will be discussed in August/September and Commissioners are encouraged to attend that City Council Meeting. Commissioner Raymond asked about the Fiesta Hermosa, requesting that a public forum be created for it at a Parks, Recreation, and Community Resources Advisory Commission Meeting once their contract is up for renewal. Public Comment None. Motion by Commissioner Lauzon to adjourn the meeting. Commissioner Guheen seconded the motion. All Ayes. 1 Accela, Inc. Resources Library and Informational Materials Accela Automation Informational Video http://www.accela.com/company/resource-library/video/say-goodbye-to-paper Resource Library Page http://www.accela.com/company/resource-library/video Planning and Zoning Informational Materials http://www.accela.com/company/resource-library/video/planning-and-zoning Supplemental from H. Longacre to the June 24, 2014 Regular 7-PM Council Meeting for Agenda Item 2-J Page 1 of 2 Supplemental To Consent Item 2 - J City Manager's Office and City Clerk, This is supplemental correspondence for Consent Item 2-J of the June 24, 2010 regular 7-PM City Council meeting agenda. Please advance a copy to those listed, and also include as supplemental material at the meeting for the public and press, and with the agenda materials on the Internet. Thank You. June 23, 2014 To: Councilmembers (Peter Tucker, Michael DiVirgilio, Nanette Barragan, Carolyn Petty, Hany Fangary), City Clerk, City Manager, Assistant to City Manager, Finance Director, Community Development Director, Public Works Director, Police Chief, Fire Chief, and contract-City Attorney. From: Howard Longacre, a Hermosa Beach Resident Re: Questions seeking clarification as to whether the Accela software is near the end of its life cycle and whether the software is actually still fully supported by a company with programmers knowledgeable with its code, and which company is fully capable of providing updates and improvements, especially with respect to security flaws as they become known. Honorable Councilmembers, and others: The Agenda for consent Item 2-J states; 2-(j) RECOMMENDATION TO WAIVE FORMAL BIDDING IN ACCORDANCE WITH MUNICIPAL CODE SECTION 3.12.070 AS THIS COMMODITY CAN ONLY BE OBTAINED FROM THE VENDOR; AUTHORIZE THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH ACCELA, INC. FOR IMPLEMENTATION OF ACCELA AUTOMATION SOFTWARE IN THE AMOUNT OF $539,908, AND TO ENTER INTO A SUBSCRIPTION MAINTENANCE AGREEMENT; AND APPROPRIATE $77,200 FROM THE EQUIPMENT REPLACEMENT FUND FOR SUBSCRIPTION/MAINTENANCE AND UPGRADES. Memorandum from Community Development Director Ken Robertson dated June 10, 2014. Staff report Once again this item should not be on the 'Consent' calendar. These major items need to be Municipal Items. I would hope and expect that all 5 council members would desire to pull this consent item 2-J. Further it seems odd that it is up for approval before the Budget of 2014/2015 has had its Public Hearing and adoption, i.e. Public Hearing items 5-B and 5-C of this same meeting. During the Council's 2014-2015 budget review meetings, held prior to this June 24 meeting, some discussion concerned the purchase of this particular Accela software package and its expense of $539,908. I believe Councilwoman Petty indicated that the Accela software was essentially obsolete, and no longer supported. It is not clear whether this was her view or whether she has information that needs to be brought forward to substantiate her statements. Supplemental from H. Longacre to the June 24, 2014 Regular 7-PM Council Meeting for Agenda Item 2-J Page 2 of 2 Notwithstanding the information in the staff report, it certainly would be wise for all concerned to fully understand more clearly and precisely, whether the "Accela" software is still fully supported by a software company that is intimately knowledgeable with its programming code, and having the ability to issue updates, bug fixes, improvements, and any necessary tweaks the City may require. Is there to be an indemnification policy to assure this? As it is my understanding that this software will allow significant additional functionality for staff and residents to obtain information, and or perform functions online, and also be maintaining its data base(s) offsite in the so-called "cloud", then certainly the program should be fully supported, as "hacking" is something that the City would need to be very concerned. Servicing of the installed software and offsite data base(s) "software holes" or "leaks" should be a major concern. You are dealing with essentially a black box and one of your main concerns should be the human expertise that this program comes with, and notwithstanding that cities such as Santa Monica are using it today. I cannot imagine buying such a major and expensive piece of software, one the staff will need to learn to use, without having it being fully supported by software professionals, not merely a sales and marketing team. Make sure you have answered all the questions as to how this program is being supported today, and will be well into the future. Again, it would see that you need some kind of indemnification as such. Also be sure to know how expensive it will be to extract/transfer all of the City's data when next another program by a different company comes along. It certainly would seem that once you buy into this Accela program, you will very much be at the mercy of whatever this company wants to charge you, I.e. that they will be in the driver's seat. --- end of supplemental --- Agreement No. _________ CONTRACT FOR PROFESSIONAL SERVICES TO IMPLEMENT ACCELA AUTOMATION BETWEEN THE CITY OF HERMOSA BEACH AND ACCELA, INC. This AGREEMENT is entered into this day of , 2014, by and between the City of Hermosa Beach, a general law city a municipal corporation (“CITY”) and Accela, Inc., a California corporation (“CONSULTANT” or “CONTRACTOR”). R E C I T A L S A. The City desires to obtain professional services to implement “Accela Automation” Software to provide the City with information systems for managing permitting, inspections and enforcement, integration with GIS, asset management (service and maintenance requests) and citizen access to services and information. B. The City does not have the personnel able and/or available to perform the services required under this agreement and therefore, the City desires to contract for consulting services to accomplish this work. C. The Consultant warrants to the City that it has the qualifications, experience and facilities to perform properly and timely its services under this Agreement and as defined in Exhibit A of this Agreement. D. The City desires to contract with the Consultant to perform the services as described in Exhibit A of this Agreement. NOW, THEREFORE, based on the foregoing recitals, the City and the Consultant agree as follows: 1. CONSIDERATION AND COMPENSATION A. As partial consideration, CONSULTANT agrees to perform the work listed in the SCOPE OF SERVICES, attached as EXHIBIT A. B. As additional consideration, CONSULTANT and CITY agree to abide by the terms and conditions contained in this Agreement. C. As additional consideration, CITY agrees to pay CONSULTANT an amount up to $540,000 for CONSULTANT’s services, unless otherwise specified by written amendment to this Agreement. D. No additional compensation shall be paid for any other expenses incurred, unless first approved by the City Manager or his/her designee. Page 2 of 12 E. 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. CITY shall pay CONSULTANT all uncontested amounts set forth in CONSULTANT’s invoice within 30 days after it is received. 2. SCOPE OF SERVICES. A. CONSULTANT will perform the services and activities set forth in the SCOPE OF SERVICE attached hereto as Exhibit A and incorporated herein by this reference. B. Except as herein otherwise expressly specified to be furnished by CITY, CONSULTANT will, in a professional manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, necessary to perform and complete its work and provide the professional services required of CONSULTANT by this Agreement. C. CITY agrees to provide CONSULTANT with appropriate access to CITY’s facilities, personnel, data systems, and other resources as necessary to perform the services and activities set forth herein. 3. PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement, CONSULTANT must submit an invoice to CITY which lists the reimbursable costs, the specific tasks performed, and, for work that includes deliverables, the percentage of the task completed during the billing period in accordance with the schedule of compensation incorporated in “Exhibit A.” 4. TIME OF PERFORMANCE. The services of the CONTRACTOR are to commence upon receipt of a notice to proceed from the CITY and shall continue until all authorized work is completed to the CITY’s reasonable satisfaction, in accordance with the scope of work and schedule incorporated in “Exhibit A,” unless extended in writing by the Parties. CITY acknowledges that the implementation process described in this Agreement is cooperative in nature and that CITY must complete its designated tasks in a timely manner in order for Accela to proceed with and complete the Professional Services. CITY delays during the implementation period may have adverse collateral effects on CONSULTANT’s overall work schedule. Although CONSULTANT will use its best efforts to immediately resume work following such a delay, CITY acknowledges that schedules for the Professional Services may be delayed by more than the number of days delayed by CITY. CITY agrees that if additional time is required to complete the Professional Services because of CITY delays, such time will be charged to CITY at CONSULTANT’s rates as established in Exhibit A. 5. FAMILIARITY WITH WORK. By executing this Agreement, CONSULTANT represents that CONSULTANT 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. Page 3 of 12 6. KEY PERSONNEL. CONSULTANT’s key person assigned to perform work under this Agreement is Connie Ingram, Project Manager. CONSULTANT shall not assign another person to be in charge of the work contemplated by this Agreement without the prior written notice to and authorization of the City. CONSULTANT shall replace the individual with a person of comparable, or superior, background and experience. 7. TERM OF AGREEMENT. The term of this Agreement shall commence upon execution by both parties and shall expire on June 30, 2016, unless earlier termination occurs under Section 11 of this Agreement, or this Agreement is extended in writing in advance by both parties. 8. CHANGES. CITY may request changes in the services within the general scope of this Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the contract time will be adjusted accordingly. All such changes must be authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY resulting from changes in the services will be determined in accordance with written agreement between the parties. 9. TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a Taxpayer Identification Number. 10. PERMITS AND LICENSES. CONTRACTOR will obtain and maintain during the term of this Agreement all necessary permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement. 11. TERMINATION. A. Except as otherwise provided, CITY may terminate this Agreement at any time with or without cause. Notice of termination shall be in writing. B. CONSULTANT may terminate this Agreement. Notice will be in writing at least 30 days before the effective termination date. C. In the event of such termination, the CONTRACTOR shall cease services as of the date of termination, and all finished or unfinished documents, data, drawings, maps, and other materials provided to CONSULTANT by CITY shall remain CITY’s property, and CONSULTANT will receive just and equitable compensation for any work satisfactorily completed up to the effective date of notice of termination. See Paragraph 34 for additional details. D. Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms services similar to those terminated. 12. INDEMNIFICATION. A. CONSULTANT shall indemnify, defend, 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 CONSULTANT's performance of work hereunder or its failure Page 4 of 12 to comply with any of its obligations contained in this AGREEMENT, to the degree determined by agreement of the parties or in a final or non-appealable judgment to be proportionate to its liability. The CONSULTANT 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 laws of the State of California and will survive termination of this Agreement. B. The requirements as to the types and limits of insurance coverage to be maintained by CONSULTANT 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 CONSULTANT pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification. CONSULTANT provides no warranty whatsoever for any third-party hardware or software products. Third-party applications which utilize or rely upon the Professional Services may be adversely affected by remedial or other actions performed pursuant to this Agreement; CONSULTANT bears no liability for and has no obligation to remedy such effects. Except as set forth herein, CONSULTANT provides all Professional Services “as is” without express or implied warranty of any kind regarding the character, function, capabilities, or appropriateness of such services or deliverables. Indemnification resulting from claims brought by third parties shall have no limit. Claims or legal actions between CITY and CONSULTANT arising out of the duties and obligations set forth in the Agreement shall be limited as follows. To the extent not offset by its insurance coverage and to the maximum extent permitted by applicable laws, in no event will CONSULTANT’s cumulative liability for any general, incidental, special, compensatory, or punitive damages whatsoever suffered by CITY exceed the fees paid to CONSULTANT by CITY during the term of this agreement, even if CONSULTANT or its agents have been advised of the possibility of such damages. 13. ASSIGNABILITY. This Agreement is for CONSULTANT’s professional services. CONSULTANT’s attempts to assign the benefits or burdens of this Agreement without CITY’s written approval are prohibited and will be null and void. 14. INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that CONSULTANT will act as an independent contractor and will have control of all work and the manner in which is it performed. CONSULTANT will be free to contract for similar service to be performed for other employers while under contract with CITY. CONSULTANT is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees. Any provision in this Agreement that may appear to give CITY the right to direct CONSULTANT as to the details of doing the work or to exercise a measure of control over the work means that CONSULTANT will follow the direction of the CITY as to end results of the work only. Page 5 of 12 15. AUDIT OF RECORDS. A. CONSULTANT agrees that CITY, or designee, has the right to review, obtain, and copy all records pertaining to the performance of this Agreement. CONSULTANT agrees to provide CITY, or designee, with any relevant information requested and will permit CITY, or designee, access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this Agreement. CONSULTANT further agrees to maintain such records for a period of three (3) years following final payment under this Agreement. B. CONSULTANT will keep all books, records, accounts and documents pertaining to this Agreement separate from other activities unrelated to this Agreement. 16. CORRECTIVE MEASURES. As provided in the Scope of Work, CONSULTANT will notify CITY of those implementation services subject to testing. For a period not to exceed thirty (30) calendar days in duration, or as may otherwise may be agreed upon by the parties and described in the Scope of Work (“Test Period”), CITY may evaluate the operation of the implemented Accela software deliverables (“Deliverables”) in a test environment or using test data. If CITY reasonably determines that its operational use of the Deliverables is substantially impaired by one or more material errors in the Deliverables, it will so notify CONSULTANT in writing prior to the completion of the Test Periods (“Adverse Notification”), specifying in sufficient detail the nature of the error(s). Upon receipt of an Adverse Notification, CONSULTANT will correct any City-identified and reproducible material errors in the Deliverables within a reasonable time and CITY may retest the Deliverables for as many as fifteen (15) additional calendar days. Acceptance will be deemed to occur when a) Customer notifies Contractor that the Deliverables have successfully completed Customer’s testing; b) the Test Period or subsequent retesting period(s) are completed without an Adverse Notification be received by Vendor from Customer; or c) Customer uses the Deliverables in a “live” environment to perform its customary governmental, administrative, or business activities, whichever first occurs (“Acceptance Date”). CONSULTANT shall also provide support pursuant to Subscription Services agreement as separately executed by the Parties. 17. INSURANCE REQUIREMENTS. A. The CONSULTANT, at the CONSULTANT’s own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies: 1. Workers Compensation Insurance as required by law. The Consultant shall require all subcontractors similarly to provide such compensation insurance for their respective 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 Page 6 of 12 by the CONTRACTOR for City. 2. General Liability Coverage. The CONSULTANT 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. 3. Automobile Liability Coverage. The CONSULTANT shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the CONSULTANT arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired, and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence. 4. Professional Liability Coverage. The CONSULTANT shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors, or omissions which may arise from the CONSULTANT’S operations under this Agreement, whether such operations be by the CONSULTANT or by its employees, subcontractors, or subconsultants. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis, or a combined single-limit-per-occurrence basis. When coverage is provided on a “claims made basis,” CONSULTANT will continue to renew the insurance for a period of three (3) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONSULTANT for all claims made by CITY arising out of any errors or omissions of CONSULTANT, or its officers, employees or agents during the time this Agreement was in effect. B. Endorsements. Each general liability, automobile liability and professional liability insurance policy shall be issued by a financially responsible insurance company or companies admitted and authorized to do business in the State of California, or which is approved in writing by City, and shall be endorsed as follows. CONSULTANT also agrees to require all contractors, and subcontractors to do likewise. 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 CONSULTANT, including materials, parts, or equipment furnished in connection with such work or operations.” Page 7 of 12 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. 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. 4. The insurer waives all rights of subrogation against the CITY, its elected or appointed officers, officials, employees, or agents. 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. 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. C. CONSULTANT agrees to provide immediate notice to CITY of any claim or loss against Contractor arising out of the work performed under this agreement. CITY assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve CITY. D. Any deductibles or self-insured retentions must be declared to the CITY. E. The CONSULTANT 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. F. Failure on the part of the CONSULTANT to procure or maintain required insurance shall constitute a material breach of contract under which the CITY may terminate this Agreement pursuant to Section 11 above. G. 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 Consultant (as the named insured) should Consultant 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. Consultant understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this Agreement. Failure by Consultant as primary insured to pay Page 8 of 12 its SIR or deductible constitutes a material breach of this Agreement. Should City pay the SIR or deductible on Consultant’s behalf upon the Consultant’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 Consultant for breach of this Agreement in addition to any other damages incurred by City due to the breach. 18. USE OF OTHER CONSULTANTS. CONSULTANT must obtain CITY’s prior written approval to use any consultants while performing any portion of this Agreement. Such approval must include approval of the proposed consultant. 19. FINAL PAYMENT ACCEPTANCE CONSTITUTES RELEASE. The acceptance by the CONSULTANT of the final payment made under this Agreement shall operate as and be a release of the CITY from all claims and liabilities for compensation to the CONSULTANT for anything done, furnished or relating to the CONSULTANT’S work or services. Acceptance of payment shall be any negotiation of the CITY’S check or the failure to make a written extra compensation claim within ten (10) calendar days of the receipt of that check. However, approval or payment by the CITY shall not constitute, nor be deemed, a release of the responsibility and liability of the CONSULTANT, its employees, sub-consultants and agents for the accuracy and competency of the information provided and/or work performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by the CITY for any defect or error in the work prepared by the Consultant, its employees, sub- consultants and agents. 20. CORRECTIONS. In addition to the above indemnification obligations, the CONSULTANT shall correct, at its expense, all errors in the work which may be disclosed during the City’s review of the Consultant’s report or plans pursuant to Section 11 above. 21. NON-APPROPRIATION OF FUNDS. Payments to be made to CONSULTANT by CITY for services preformed within the current fiscal year are within the current fiscal budget and within an available, unexhausted fund. In the event that CITY does not appropriate sufficient funds for payment of CONSULTANT’S services beyond the current fiscal year, the Agreement shall cover payment for CONSULTANT’S services only to the conclusion of the last fiscal year in which CITY appropriates sufficient funds and shall automatically terminate at the conclusion of such fiscal year. 22. NOTICES. All communications to either party by the other party will be deemed made when received by such party at its respective name and address as follows: CITY CONSULTANT City of Hermosa Beach 1315 Valley Drive Hermosa Beach, CA 90254 ATTN: Tom Bakaly, City Manager Accela, Inc. 2633 Camino Ramon, Suite 500 San Ramon, CA 94583 ATTN: Contracts Administration Any such written communications by mail will be conclusively deemed to have been received by the addressee upon deposit thereof in the United States Mail, postage prepaid and properly Page 9 of 12 addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph. Courtesy copies of notices may be sent via electronic mail, provided that the original notice is deposited in the U.S. mail or personally delivered as specified in this Section. 23. SOLICITATION. CONSULTANT maintains and warrants that it has not employed nor retained any company or person, other than CONSULTANT’s bona fide employee, to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not paid nor has it agreed to pay any company or person, other than CONSULTANT’s bona fide employee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Should CONSULTANT breach or violate this warranty, CITY may rescind this Agreement without liability. 24. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of any other party. There will be no incidental or other beneficiaries of any of CONSULTANT’s or CITY’s obligations under this Agreement. 25. INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Los Angeles County. 26. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written. 27. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party. 28. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment with signatures of all parties to this Agreement. CITY’s city manager, or designee, may execute any such amendment on behalf of CITY. 29. ACCEPTANCE OF FACSIMILE OR ELECTRONIC SIGNATURES. The Parties agree that this Contract, agreements ancillary to this Contract, and related documents to be entered into in connection with this Contract will be considered signed when the signature of a party is delivered by facsimile transmission or scanned and delivered via electronic mail. Such facsimile or electronic mail copies will be treated in all respects as having the same effect as an original signature. 30. FORCE MAJEURE. Should performance of this Agreement be impossible due to fire, flood, explosion, war, embargo, government action, civil or military authority, the natural Page 10 of 12 elements, or other similar causes beyond the Parties’ control, then the Agreement will immediately terminate without obligation of either party to the other. 31. TIME IS OF ESSENCE. Time is of the essence to comply with dates and schedules to be provided. 32. ATTORNEY’S FEES. The parties hereto acknowledge and agree that each will bear his or its own costs, expenses and attorneys' fees arising out of and/or connected with the negotiation, drafting and execution of the Agreement, and all matters arising out of or connected therewith except that, in the event any action is brought by any party hereto to enforce this Agreement, the prevailing party in such action shall be entitled to reasonable attorneys' fees and costs in addition to all other relief to which that party or those parties may be entitled. 33. STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT represents that it has demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the Agreement in a manner satisfactory to CITY. CONSULTANT represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private consultants, and experience in dealing with public agencies all suggest that CONSULTANT is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public agency. 34. OWNERSHIP OF DOCUMENTS. It is understood and agreed that the City shall own all documents and other work product, except documents and work product that constitute derivative works, provided to Consultant by City. All reports and other documents, except those that constitute derivative works, produced by Consultant for the City under this Agreement shall be the sole and exclusive property of the City. The City shall have the sole right to use such materials in its discretion and without further compensation to the Consultant, but any re-use of such documents by the City on any other project without prior written consent of the Consultant shall be at the sole risk of the City. All design, bid documents, software, and other material furnished to the City by Consultant during the course of this project comprise derivative works from Consultant’s pre-existing intellectual property and shall remain the property of Consultant. 35. CONFIDENTIALITY. Definitions “Disclosing Party” and “Recipient” refer respectively to the party which discloses information and the party to which information is disclosed in a given exchange. Either Accela or Customer may be deemed Disclosing Party or Recipient depending on the circumstances of a particular communication or transfer of information. “Confidential Information” means all disclosed information relating in whole or in part to non-public data, proprietary data compilations, computer source codes, compiled or object codes, scripted programming statements, byte codes, or data codes, entity-relation or workflow diagrams, financial records or information, client records or information, organizational or personnel information, business plans, or works-in-progress, even where such works, when completed, would not necessarily comprise Confidential Information. The foregoing listing is not intended by the Parties to be comprehensive, and any information which Disclosing Party marks or otherwise designates as “Confidential” or “Proprietary” will be deemed and treated as Confidential Information, except to the extent that disclosure is required under the California Public Records Act. Information which qualifies as “Confidential Information” may be presented to Recipient in oral, written, graphic, and/or machine-readable Page 11 of 12 formats. Regardless of presentation format, such information will be deemed and treated as Confidential Information, except to the extent that disclosure is required under the California Public Records Act. Notwithstanding, the following specific classes of information are not “Confidential Information” within the meaning of this Section: a) information which is in Recipient’s possession prior to disclosure by Disclosing Party; b) information which is available to Recipient from a third party without violation of this Agreement or Disclosing Party’s intellectual property rights; c) information which is in the public domain at the time of disclosure by Disclosing Party, or which enters the public domain from a source other than Recipient after disclosure by Disclosing Party; d) information which is subpoenaed by governmental or judicial authority; and e) information subject to disclosure pursuant to a state’s public records laws. The obligations described in this Section commence on the effective date and will continue until two (2) years following any termination or expiration of this Agreement (“Confidentiality Term”). During the Confidentiality Term, Recipient will protect the confidentiality of Confidential Information using the same degree of care that it uses to protect its own information of similar importance, but will in any case use no less than a reasonable degree of care to protect Confidential Information. Recipient will not directly or indirectly disclose Confidential Information or any part thereof to any third party without Disclosing Party’s advance express written authorization to do so. Recipient may disclose Confidential Information only to its employees or agents under its control and direction in the normal course of its business and only on a need-to-know basis. Notwithstanding anything to the contrary in this Agreement, the parties acknowledge that CITY is subject to the requirements of the California Public Records Act. CITY shall promptly notify CONSULTANT of receipt of a public records request under the California Public Records Act which may require disclosure of Confidential Information, providing Consultant an opportunity to object to such disclosure in a court of law prior to its release. In responding to a request for Confidential Information, Recipient will cooperate with Disclosing Party, in a timely fashion and in a manner not inconsistent with applicable laws, to protect the Confidential Information to the fullest extent possible. To the extent that CITY and CONSULTANT disagree as to the application of the law, CONSULTANT share bear all costs associated with obtaining a judicial determination. During the term of this Agreement, including the term of any amendment hereto, Consultant may publicly disclose its ongoing business relationship with City. Such disclosures may indicate City's identity and the Accela product(s) and services provided or contracted to be provided to City. These disclosures may include press releases or other communications to media, display on Consultant web sites, or use in other marketing activities, but will not include non-public information or indicate City's express endorsement of Consultants products or services without City's prior written authorization. 36. Alternate Terms Disclaimed. The parties expressly disclaim any alternate terms and conditions accompanying drafts and/or purchase orders issued by City. 37. DISCLOSURE REQUIRED. (City and Consultant initials required at one of the following paragraphs) Page 12 of 12 By their respective initials next to this paragraph, City and Consultant hereby acknowledge that Consultant is a “consultant” for the purposes of the California Political Reform Act because Consultant’s duties would require him or her to make one or more of the governmental decisions set forth in Fair Political Practices Commission Regulation 18701(a)(2) or otherwise serves in a staff capacity for which disclosure would otherwise be required were Consultant employed by the City. Consultant hereby acknowledges his or her assuming-office, annual, and leaving-office financial reporting obligations under the California Political Reform Act and the City’s Conflict of Interest Code and agrees to comply with those obligations at his or her expense. Prior to consultant commencing services hereunder, the City’s Manager shall prepare and deliver to consultant a memorandum detailing the extent of Consultant’s disclosure obligations in accordance with the City’s Conflict of Interest Code. City Initials ______ Consultant Initials ______ OR By their initials next to this paragraph, City and Consultant hereby acknowledge that Consultant is not a “consultant” for the purpose of the California Political Reform Act because Consultant’s duties and responsibilities are not within the scope of the definition of consultant in Fair Political Practice Commission Regulation 18701(a)(2)(A) and is otherwise not serving in staff capacity in accordance with the City’s Conflict of Interest Code. City Initials ______ Consultant Initials ______ IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written. CITY OF HERMOSA BEACH CONSULTANT Michael DiVirgilio, Mayor By: TITLE ATTEST: Elaine Doerfling, City Clerk Taxpayer ID No. APPROVED AS TO FORM: Michael Jenkins , City Attorney Statement of Work  2012 Accela Inc. Page 1 of 40 Statement of Work City of Hermosa Beach, CA Version 7.0 June 16, 2014 THE LEADING PROVIDER OF GOVERNMENT ENTERPRISE MANAGEMENT SOLUTIONS Statement of Work  2012 Accela Inc. Page 2 of 40 TABLE OF CONTENTS TABLE OF CONTENTS ............................................................................................................................................................................. 2 OVERVIEW ................................................................................................................................................................................................ 5 SERVICES DESCRIPTION ........................................................................................................................................................................ 5 PURPOSE ............................................................................................................................................................................................. 5 PROJECT TIMELINE ............................................................................................................................................................................... 5 PROJECT MANAGEMENT ........................................................................................................................................................................ 5 CRITICAL SUCCESS FACTORS ................................................................................................................................................................ 6 PROJECT ASSUMPTIONS ........................................................................................................................................................................ 7 WORK DESCRIPTION ............................................................................................................................................................................. 7 STAGE 1 - INITITATION ..................................................................................................................................................................... 7 DELIVERABLE 1: PROJECT INITIATION ..................................................................................................................................................... 7 DELIVERABLE 2: ACCELA AUTOMATION SETUP – DEV AND TEST ............................................................................................................... 8 STAGE 2 – TO-BE ANALYSIS ............................................................................................................................................................. 9 DELIVERABLE 3: TO-BE ANALYSIS SESSIONS ........................................................................................................................................ 10 DELIVERABLE 4: TO-BE ANALYSIS DOCUMENT(S) ................................................................................................................................. 11 STAGE 3 – SOLUTION FOUNDATION .................................................................................................................................................... 11 DELIVERABLE 5: ACCELA AUTOMATION SOLUTION FOUNDATION ............................................................................................................. 11 STAGE 4 – BUILD ............................................................................................................................................................................. 12 DELIVERABLE 6: HISTORICAL DATA CONVERSION ANALYSIS .................................................................................................................. 13 DELIVERABLE 7: STANDARD ADDRESS, PARCEL AND OWNERSHIP (APO) DATA CONVERSION ................................................................... 13 DELIVERABLE 8: STANDARD LICENSED PROFESSIONAL DATA CONVERSION ............................................................................................ 14 DELIVERABLE 9: HISTORICAL DATA CONVERSION DEVELOPMENT ............................................................................................................ 15 SYSTEM INTERFACES .......................................................................................................................................................................... 15 DELIVERABLE 10: EVENT MANAGEMENT SCRIPTING............................................................................................................................... 15 DELIVERABLE 11: REPORT SPECIFICATIONS ......................................................................................................................................... 17 DELIVERABLE 12: REPORT DEVELOPMENT............................................................................................................................................ 18 DELIVERABLE 13: ACCELA GIS CONFIGURATION ................................................................................................................................... 18 DELIVERABLE 14: ACCELA CITIZEN ACCESS CONFIGURATION ................................................................................................................ 19 DELIVERABLE 15: ACCELA MOBILE OFFICE CONFIGURATION ................................................................................................................. 20 DELIVERABLE 16: V360 USER EXPERIENCE.......................................................................................................................................... 20 STAGE 5 – READINESS .................................................................................................................................................................. 22 DELIVERABLE 17: ACCELA AUTOMATION SETUP – PRODUCTION ............................................................................................................ 22 DELIVERABLE 18: ADMINISTRATIVE AND TECHNICAL TRAINING ............................................................................................................... 22 DELIVERABLE 19: DAILY USER TRAINING .............................................................................................................................................. 23 DELIVERABLE 20: USER ACCEPTANCE TESTING (UAT) ......................................................................................................................... 24 STAGE 6 - DEPLOY ......................................................................................................................................................................... 25 DELIVERABLE 21: PRODUCTION SUPPORT ............................................................................................................................................ 25 DELIVERABLE 22: POST DEPLOYMENT SUPPORT AND TRANSITION TO CRC ........................................................................................... 25 PROJECT RESOURCES AND LOCATION OF WORK .................................................................................................................................. 27 WORK LOCATION ................................................................................................................................................................................ 27 AGENCY RESOURCES .......................................................................................................................................................................... 27 ACCELA RESOURCES .......................................................................................................................................................................... 28 PAYMENT SCHEDULE ........................................................................................................................................................................... 30 EXPENSES .......................................................................................................................................................................................... 31 ACCEPTANCE ...................................................................................................................................................................................... 31 TERMS ............................................................................................................................................................................................... 31 Statement of Work  2012 Accela Inc. Page 3 of 40 APPENDIX A - ACCELA IMPLEMENTATION METHODOLOGY ........................................................................................................... 32 IMPLEMENTATION LIFE CYCLE .............................................................................................................................................................. 32 INITIATION ........................................................................................................................................................................................... 32 TO-BE ANALYSIS................................................................................................................................................................................. 32 SOLUTION FOUNDATION ...................................................................................................................................................................... 33 BUILD ................................................................................................................................................................................................. 33 READINESS ......................................................................................................................................................................................... 33 DEPLOY .............................................................................................................................................................................................. 33 APPENDIX B – STANDARD PROJECT ASSUMPTIONS ...................................................................................................................... 34 PROJECT MANAGEMENT AND ADMINISTRATION ..................................................................................................................................... 34 PROJECT SCHEDULE ........................................................................................................................................................................... 35 TECHNOLOGY–INFRASTRUCTURE ......................................................................................................................................................... 35 TRAINING ............................................................................................................................................................................................ 36 CONVERSION AND INTERFACES ............................................................................................................................................................ 36 STANDARD DOCUMENT MIGRATION ...................................................................................................................................................... 38 TESTING ............................................................................................................................................................................................. 38 PRICING ASSUMPTIONS ....................................................................................................................................................................... 38 APPENDIX C – DELIVERABLES ACCEPTANCE FORM....................................................................................................................... 40 Statement of Work  2012 Accela Inc. Page 4 of 40 DOCUMENT CONTROL Date Author Version Change Reference 03/20/2013 IK Consulting, LLC 1.0 04/04/13 IK Consulting, LLC 2.0 Modifications during conference call 04/15/13 Woolpert 3.0 Additions of Asset Management Language 04/25/13 IK Consulting, LLC & Accela, Inc 4.0 Additional modifications to incorporate Land with Asset Management 1/28/14 IK Consulting, LLC 5.0 Removal of Asset Management, Separately 03/30/14 IK Consulting, LLC 6.0 Fire Modification to 70/30 implementation percentage 6/16/14 Cindy Sullivan 7.0 Pricing Review Statement of Work  2012 Accela Inc. Page 5 of 40 OVERVIEW Congratulations on your selection of Accela, Inc. and their enterprise suite of industry leading software. The implementation of Accela products is designed specifically to meet the specific requirements and budget defined by Hermosa Beach, CA (“Agency”). Accela will utilize a best practice Implementation Methodology, based on previous client interactions and industry knowledge, to promote a successful project that will meet the Agency’s objectives. The following Statement of Work will detail how Accela Services will implement the software you have purchased, including the major milestones and deliverables that will ensure your success. Accela is committed to providing a superior software solution, and deployment of the software, for the current and future needs of the Agency. Accela will work with Agency staff to optimize Accela’s portfolio of software, best practices, and customer experience to enable the Agency to successfully deploy its Accela Automation software and meet its functionality, timing and cost requirements. This Statement of Work (“SOW”) dated January 28, 2014 sets forth a scope and definition of the consulting/professional services, work and/or project (collectively, the “Services”) to be provided by Accela (“Accela”) to Agency. SERVICES DESCRIPTION PURPOSE The purpose of this document is to detail the specific activities, deliverables, roles and responsibilities, and acceptance criteria that comprise the implementation of Accela Automation Land Management, Accela GIS, Accela Mobile Office and Accela Citizen Access, for the Agency. Accela will provide professional services for implementation of the above modules and will add services per the Work Description section below. The following Agency departments comprise the organization scope of the Land Management implementation described herein:  Community Development (functional areas include: Building and Planning)  Public Works Department (specifically those items currently in Permits Plus).  Fire Department. PROJECT TIMELINE The term of this project is eighteen (18) months and one phase. Any delays (eg, Change in staff level/availability, missed deadlines) in the Project Timeline which by mutual agreement were created by the Agency will result in an increase in the duration of the project will require a Change Order to reimburse Accela for the additional costs associated with the delay, including but not limited to additional hours for project management, deliverable development and review. Upon execution of this SOW, the parties will collaborate to determine a start date for Services to be rendered. Upon initiation of these Services, the Accela Project Manager will work with the Agency to collaboratively define a baseline project schedule. Given the fact that project schedules are working documents that change over the course of the project, the Accela Project Manager will work closely with Agency to update, monitor, agree, and communicate any modifications. PROJECT MANAGEMENT Accela will provide a full time project manager for services throughout the implementation in order to plan and monitor execution of the project in accordance with deliverables outlined in the Statement of Work. To support the implementation of the Accela Automation software at the Agency, Accela will provide Project Management services throughout the project. Generally these services include the following:  Project plan management using Microsoft Project,  Project document management using Microsoft SharePoint, Statement of Work  2012 Accela Inc. Page 6 of 40  Issue log management and escalation,  Status reporting,  Change order management,  Project workspace management,  Resource management,  Executive project oversight and quality assurance. By mutual agreement, some project management tasks may be shared between the Accela Project Manager and the Agency Project Manager. CRITICAL SUCCESS FACTORS In order to successfully execute the services described herein, there are several critical success factors for the project that must be closely monitored and managed by the stakeholders. These factors are critical in setting expectations between the Agency and Accela, identifying and monitoring project risks, and promoting strong project communication.  Knowledge Transfer – While Accela cannot guarantee specific expertise for Agency staff as a result of participating in the project, Accela will make all reasonable efforts to transfer knowledge to the Agency. It is critical that Agency personnel participate in the analysis, configuration and deployment of Accela Automation in order to transfer knowledge to the Agency. Once Post Production assistance tasks are completed by Accela Services, the Agency assumes all day-to-day operations of Accela Automation outside of the Support and Maintenance Agreement. The Service and Maintenance Agreement do not cover any Agency manipulation of implemented scripts, reports, interfaces and adapters. Key knowledge transfer areas include:  Configuration  Scripting  Batch scripts  Interfaces  Event Management Scripts  Reports and Forms  Dedicated Agency Participation – Accela fully understands that Agency staff members have daily responsibilities that will compete with the amount of time that can be dedicated to the Accela Automation implementation project. However, it is critical that the Agency acknowledges that its staff must be actively involved throughout the entire duration of Services as defined in the Project Plan. Accela will communicate insufficient participation of Agency and Accela resources through Project Status Reports with real and potential impacts to the project timeline. Accela will work the project sponsors and department leaders to determine appropriate team member involvement. This could run from full-time during early analysis meetings to part-time during the technical implementation phase.  Deliverable Acceptance Process - Implementation services for the above products are formalized through the deliverables defined in this document. Upon completion of each deliverable according to the acceptance criteria defined herein, Accela will provide the Agency with a Deliverable Acceptance Form to formalize acceptance and completion. The Deliverable Acceptance Form is subsequently signed by the appropriate Agency contact, as defined in the Project Charter, and faxed/scanned/emailed or hand delivered to Accela. Please refer to Appendix C to view a sample Deliverable Acceptance Form. Accela respectfully requests prompt attention to the processing of all Deliverable Acceptance Forms, as adherence to this timely process directly impacts the ability to complete the project in the desired timeframe. In order to prevent delays in the project schedule, for all Deliverables where no response time is specifically identified in the SOW, a three (3) business day acceptance period is assumed. Statement of Work  2012 Accela Inc. Page 7 of 40  Accela Implementation Methodology – Accela’s successful, proven, implementation methodology is crucial to the projects success. Accela’s Automation software and customer base is a niche market and as such the implementation methodology may differ from other consulting firms and software packages. It is imperative to project success that the Agency is willing to adhere/adopt to the Accela Implementation Methodology. PROJECT ASSUMPTIONS Accela understands the importance of the timely and successful implementation of the Agency project. We have extensive experience working collaboratively with clients to achieve their objectives on systems integration projects, both within Agency and around the country. One of the major contributors to our mutual success is to clearly define and agree upon the responsibilities, scope and assumptions of the project from the start, a number of which are included within your request or have been mutually discussed. Within this section, we have reiterated some of these key points as well as identified additional clarifications that we believe are critical to a successful, on-time project. The Project timeline and associated pricing are based and dependent upon these assumptions. Accela is committed to promptly devoting senior resources to any discussions regarding our assumptions such that they may be concluded in an expeditious manner consistent with the anticipated project timeline. We have a proven track record of creatively and efficiently working with our clients to achieve mutually acceptable terms for complex projects such as this and we are confident that, if given the opportunity, we would be able to do so here. PLEASE REFER TO APPENDIX B FOR SPECIFIC PARAMETERS RELATED TO ACCELA’S STANDARD PROJECT ASSUMPTIONS. WORK DESCRIPTION The following section describes the specific activities and tasks that will be executed to meet the business objectives and business requirements of the Agency. In support of the implementation effort as described above, Accela will provide the following detailed implementation services. For each deliverable, a description is provided as well as criteria for acceptance of the deliverable. STAGE 1 - INITITATION DELIVERABLE 1: PROJECT INITIATION Project initiation is an opportunity to ensure the project starts in a well-organized, structured fashion while re- confirming the Agency and Accela expectations regarding the implementation. This Deliverable is comprised of project planning activities, core project management documents and templates and the first on-site meeting conducted between the Agency and Accela after the signing of the Statement of Work. In conjunction with the Agency representatives, Accela will perform the following tasks:  Finalize staffing for the project teams. Guidelines and recommendations for the Agency project staffing are addressed in the Project Staffing section of this document.  Conduct a formal onsite Kickoff meeting. The objective of this meeting is to review the purpose of the project and discuss the project scope, roles and responsibilities, deliverables, and timeline.  Establish Communication Plan and project logistics including escalation, status reporting, issue/risk management, work locations, etc.  Establish schedule of Steering Committee meetings.  Review and agree on Project Status Report Template format.  Finalize and document formal deliverable signoff procedures, identify team members that will be responsible for signoff from the Agency and Accela.  Review infrastructure requirements and preparation (with designated Agency technical staff). Statement of Work  2012 Accela Inc. Page 8 of 40  Finalize an integrated project plan that includes resource allocation for all tasks (in cooperation with the Agency Project Manager).  Develop a Project Charter that defines how the project will be governed, including a detailed escalation plan.  Create a project Sharepoint site and load all standard, current documentation. The Project Kickoff Meeting includes a formal presentation by the project team to review project objectives, methodology, timeline, roles and responsibilities, risks, and other key project elements with project stakeholders. In terms of specific output, the following will be executed for this deliverable:  Project Charter (MS Word).  Baseline Project Plan (MS Project).  Project Status Report Template (MS Word).  Project Kickoff Presentation (MS PowerPoint).  Project Sharepoint Site.  Project Kickoff Meeting. Accela Responsibilities:  Provide timely and appropriate responses to Agency’s request for information.  Coordinate project planning activities.  Communicate the Accela Implementation Methodology that will be used by Accela to deliver Services.  Complete Baseline Project Plan, Project Status Report Template, and Project Kickoff Presentation deliverables with input from appropriate Agency resources. Agency Responsibilities:  Identify and set expectations with key resources and subject matter experts for ongoing participation in the project.  Provide timely and appropriate responses to Accela’s requests for project planning input and meeting logistics requests.  Provide meeting facilities for Project Kickoff and other onsite activities.  Include Project Sponsor in Project Kickoff Meeting. Acceptance Criteria:  Review and acceptance of the Project Status Report Template  Review and acceptance of the Baseline Project Plan  Review and acceptance of the Project Charter  Completion of the Project Kickoff Meeting DELIVERABLE 2: ACCELA AUTOMATION SETUP – DEV AND TEST During the System Setup step of this project, Accela’s technical staff will work with the Agency IT staff to ensure that the components for hardware, software, database, network, and Internet are in place for the development and testing environments. Accela technical staff will validate the proper installation and configuration of the Accela Automation environment. In terms of specific output, the following will be executed for this deliverable:  Installation of the Accela Automation software, development and test environments.  Demonstration of an operational Accela Automation computing environment.  Installation documentation (Adobe PDF). Statement of Work  2012 Accela Inc. Page 9 of 40 Specifically, Accela will perform the following tasks within the support environment:  Perform a remote system check of the installation.  Install Accela software.  Demonstrate that the Accela Automation applications are operational.  Provide documentation of the Agency installation.  Configure Accela Automation to use SQL Server Reporting Services. Accela Responsibilities:  Provide timely and appropriate responses to Agency’s request for information.  Consult with Agency resources to provide technical input and answer technical questions related to the installation requirements for Accela Automation.  Deliver and install the Accela Automation software. Agency Responsibilities:  Provide timely and appropriate responses to Accela’s requests for information.  Prepare the hardware, software, and network in accordance with the specifications provided by Accela.  Make available the appropriate Agency key IT users to participate in any hardware, software, environment, and infrastructure meetings.  Arrange for the availability of appropriate people for the system installation, setup, testing, and quality assurance throughout the setup process. Acceptance Criteria:  Confirmation of ability to log into the Accela Automation software that has been installed on Agency hardware. STAGE 2 – TO-BE ANALYSIS To-Be Analysis is comprised of the activities required to define the Accela Automation Solution Foundation for the Agency. The key output of this deliverable is To-Be Analysis Document(s), which serve as a ‘blueprint’ for design and the baseline configuration efforts throughout the implementation project and establishes the benchmarks for testing and acceptance at the conclusion of the project. The To-Be Analysis Document(s) include detailed information on the Agency’s business processes to be configured in the Accela Automation Solution Foundation, including the following topics:  Organization and departments  Standard Comments  Record Types  Workflow  Inspections  Email Notification  Status Values  Intake Forms  User Defined Fields  Dropdown List Values  Fees  Conditions Statement of Work  2012 Accela Inc. Page 10 of 40 The To-Be Analysis Sessions and To-Be Analysis Document(s) do not include detailed information related to the following deliverables as they are dependent on the completion of the Solution Foundation milestone.  Deliverable 10: Event Management Scripting Assistance  Deliverable 11: Report Specifications  Deliverable 12: Report Development  Deliverable 16: V360 User Experience The Project Team, consisting of representatives from both Accela and the Agency, will conduct a formal review of the To-Be Analysis Documents for the purpose of approval and sign-off on the deliverable. Accela will build prototypes of one Building process, which will be used during the review sessions to demonstrate the proposed functionality. Prototyping is intended to demonstrate selected aspects of Accela Automation functionality to assist in understanding how it will operate for the Agency. DELIVERABLE 3: TO-BE ANALYSIS SESSIONS In order to develop the content for the To-Be Analysis Document(s), Accela will work closely with designated Agency personnel and will conduct analysis sessions to capture the “to-be” required business processes. In conjunction with the Agency representatives, Accela will perform the following tasks:  Review and understand existing business processes intended for migration into Accela Automation.  Review the developed business process as a basis for configuration in Accela Automation’s workflow tool.  Assist the Agency in streamlining existing business processes for fit into Accela Automation.  Collect employee names and associated roles and identify user group setups.  Review the collected document intake requirements, forms, and data fields for each process.  Review the collected document output requirements (documents/letters/reports).  Review the collected document fees, fee schedules, and collection procedures for each process.  Review the collected document all required inspections and inspection result options for each type. Accela’s Project Manager will coordinate and schedule the Analysis Sessions in conjunction with the Agency Project Manager and according to the agreed upon Project Plan. In terms of specific output, the following will be executed for this deliverable:  To-Be Analysis data gathering activities, including workshops, interviews, and web conferencing sessions for up to 23 Record types. Accela Responsibilities:  Provide timely and appropriate responses to Agency’s request for information.  Interview staff in order to understand existing business processes.  Conduct to-be analysis sessions to capture the required business processes to be automated within the system.  Conduct meetings via email, web conference, phone, and in person to gather and validate analysis input. Agency Responsibilities:  Provide timely and appropriate responses to Accela’s requests for information.  Make available the appropriate Agency key users and content experts to provide required information, participate in the configuration analysis and verify the accuracy of the documented workflows, input/output formats, and data elements.  Provide any existing business process documentation, including process flows; fee schedules; commonly used applications, reports and forms; and other relevant information. Statement of Work  2012 Accela Inc. Page 11 of 40  Schedule participants and meeting locations for analysis activities. Acceptance Criteria:  Completion of To-Be Analysis Session for the Building and Planning processes. DELIVERABLE 4: TO-BE ANALYSIS DOCUMENT(S) To-Be Analysis Document(s) will be developed by Accela based on the information gathered in Deliverable 3: To-Be Analysis Sessions. This document(s) will serve as the ‘blueprint’ for the Building, Planning, Public Works and Fire processes throughout the implementation project. Upon completion of the document(s), Accela will conduct a formal review with Agency for the purpose of approval and sign-off on the deliverable. To facilitate the approval process, Accela will configure prototypes of the solution for 1 mutually agreed upon To-Be process, which will be used during the review sessions to demonstrate the proposed functionality. Prototyping is intended to demonstrate selected aspects of Accela Automation functionality to assist in understanding how it will operate for the Agency. In terms of specific output, the following will be executed for this deliverable:  To-Be Analysis Document(s) (Adobe PDF) for up to 23 Record types. Accela Responsibilities:  Provide timely and appropriate responses to Agency’s request for information.  Interview staff as necessary in order to understand existing business processes.  Build selected prototypes to demonstrate proposed functionality.  Conduct meetings via email, web conference, phone, and in person to gather and validate analysis input.  Prepare and complete To-Be Analysis Document(s) capturing the Agency’s business processes to be included in the Solution Foundation. Agency Responsibilities:  Provide timely and appropriate responses to Accela’s request for information.  Schedule participants and meeting locations for To-Be Analysis Document(s) review activities.  Review and provide feedback on To-Be Analysis Document(s). Acceptance Criteria:  Review To-Be Analysis Document(s) and validate that the content accurately reflects the business processes data that will be included in the Accela Automation Solution Foundation.  Agency will have 15 business days to conduct initial review of the To-Be Analysis Document(s). If no changes or comments are requested within the 15 days, the To-Be Analysis Document(s) is considered approved by the Agency. Upon delivery of initial feedback, Accela will complete the necessary changes and updates. The second and final review will have 7 business days for acceptance. STAGE 3 – SOLUTION FOUNDATION Accela will provide professional services to develop the Accela Automation Solution Foundation in accordance with requirements established and agreed upon during the execution of the tasks that comprise Stage 2 – To-Be Analysis. Accela will produce a detailed, technical Solution Foundation Document(s) that represents the entire foundation of the system, for each module. This document will be delivered for review with the completed solution. DELIVERABLE 5: ACCELA AUTOMATION SOLUTION FOUNDATION Statement of Work  2012 Accela Inc. Page 12 of 40 Accela will provide professional services to develop the Solution Foundation of the Accela Automation product in accordance with requirements established and documented in Deliverable 4: To-Be Analysis Document(s). In terms of specific output, the following will be executed for this deliverable:  Completed Foundation of Accela Automation Solution to support the To-Be Business Processes for up to 23 (Twenty-Three) Record types  Accela Automation Solution Foundation Document Accela Responsibilities:  Provide timely and appropriate responses to Agency’s request for information.  Configure the foundational components as defined in the To-Be Analysis Document(s). Agency Responsibilities  Provide timely and appropriate responses to Accela’s request for information.  Make available the appropriate Agency key users and content experts to participate in creating the system in an effort to learn about the system (knowledge transfer).  Work with Accela to verify that the system meets the foundational requirements documented in the To-Be Analysis Document(s).  The Agency will test the system for purposes of validating the configuration. Acceptance Criteria:  Review and approve that the Accela Automation Solution Foundation meets the requirements documented in the approved To-Be Analysis Document(s).  Agency will have 15 business days to conduct initial review of the Solution Foundation. If no changes or comments are requested within the 15 days, the milestone is considered approved by the Agency. Upon delivery of initial feedback, Accela will complete the necessary changes and updates. The second and final review will have 7 business days for acceptance. STAGE 4 – BUILD The Build stage includes data conversions, development of interfaces, development of Accela Event Manager Scripts and custom report development. It comprises all of the additional critical activities outside of solution foundation that has been configured for the Agency. Similar to the Configuration Stage, it is critical that appropriate agency representatives are involved in each step of the process to ensure success. Data conversion of historic/legacy data from Agency systems is a critical activity for the success of this project. The Accela team is highly experienced in planning for and executing these activities and will work closely with Agency staff to ensure a successful transition of data. Specifically, the Accela team will work with Agency to understand the data sources, how they are used, where their data will be stored in Accela Automation and the quality of that data. Often multiple sources store and manage similar information and decisions need to be made about the authoritative source. It is also common to find that data sources have not had strong controls and the accuracy is questionable or there is missing data. There are techniques and tools that Accela may recommend to understand the current state of Agency data so that decisions can be made about data quality and what to convert. Upon completion of the data analysis, mapping of historical/legacy data sources may begin with Accela’s mapping tool and conversion iterations performed as outlined in the Project Plan. Accela provides release notes during these conversion tests to verify data is being transferred correctly (e.g., number of records and expected values in fields). Accela will lead the conversion effort and specifically assist in the following areas: data mapping, script development for conversion, assistance in data testing and validation, and with the planning and execution of the final data Statement of Work  2012 Accela Inc. Page 13 of 40 conversion. For conversions, it is expected and anticipated that the Agency will provide resources knowledgeable with the historical data to facilitate in the data migration/conversion effort. The required data mapping effort will be a conducted by Agency personnel with assistance from the Accela. Once the data mapping has been defined, Accela will ask that a representative of the Agency sign off on the data maps. Accela will be responsible for the data conversion programs to load data from the staging tables to the Accela Automation database. PLEASE REFER TO APPENDIX B FOR SPECIFIC ASSUMPTIONS AND PARAMETERS RELATED TO ACCELA ’S CONVERSION APPROACH. DELIVERABLE 6: HISTORICAL DATA CONVERSION ANALYSIS Upon receipt of Agency’s Permits Plus data, Accela will create a Data Conversion Mapping Document detailing the data conversion process, mutually agreed upon requirements and mapping of Agency’s historical data into Accela Automation Land Management. In terms of specific output, the following will be executed for this deliverable:  Land Management Historical Data Conversion Specifications Document Accela Responsibilities:  Work with the Agency to define and document historical data elements that are required for the conversion.  Assist Agency to complete data mapping.  Complete the Data Conversion Specifications Document. Agency Responsibilities:  Provide historical data in acceptable formats.  Work with Accela in data mapping for conversion.  Review and sign-off on completed Data Conversion Mapping document. Acceptance Criteria:  The Historical Data Conversion Specifications document identifies historical data elements that will be converted into Accela Automation as well as document special consideration (ex. merging data sources, phasing, etc.) Acceptance Review Period:  Ten (10) business days total. DELIVERABLE 7: STANDARD ADDRESS, PARCEL AND OWNERSHIP (APO) DATA CONVERSION This Deliverable includes conversion of Agency Address, Parcel, and Ownership (APO) data to Accela Automation. Accela leverages a standardized data conversion process for APO data sets and will deliver the standard APO specifications and file templates to be used by the Agency in preparing the data for conversion. The Agency will identify a source for data to update the address, parcel and owner information within the Agency. Data must be provided in Accela’s standard format, and Accela and Agency business and technical experts will work together to map the source data to the Accela database. After Agency staff signs off on the conversion specification document, the Accela conversion team will develop the conversion program that will populate the Accela system with the appropriate data. In terms of specific output, the following will be executed for this deliverable: Statement of Work  2012 Accela Inc. Page 14 of 40  APO Data Conversion Specifications Document (MS Word/MS Excel).  Migrated APO data into Accela Automation testing database environment. Accela Responsibilities:  Provide standard APO conversion documentation and support.  Migrate data provided by the Agency into the Agency’s AA testing database environment. Agency Responsibilities:  Identify data accuracy / quality issues and resolve them (data scrubbing).  Provide APO data in the format(s) specified by the standard APO documentation.  Allocate the time for qualified business and technical experts for the Accela-led data-mapping sessions that are critical to the project success.  Assist in the data-mapping process.  Load data from original source(s) into the Accela standard staging tables.  Allocate the time for qualified personnel to test the conversion for acceptance to ensure that the data is converted successfully according to the data-mapping document. Acceptance Criteria:  Review and acceptance of the APO Data Conversion Specifications document.  Confirmation that APO data has been converted to Accela Automation testing environment according to the standard APO data specifications. Acceptance Review Period:  Fifteen (15) business days total DELIVERABLE 8: STANDARD LICENSED PROFESSIONAL DATA CONVERSION Accela will provide a program to convert licensed professional data from the Agencies existing Permits Plus CAED File to the Accela Automation licensed professional tables. Data will be provided in Accela’s standard format. After Agency staff signs off on the conversion specification document, the Accela conversion team will configure the conversion that will populate the Accela system with the appropriate data. In terms of specific output, the following will be executed for this deliverable:  Licensed Professional Data Conversion Specifications Document (MS Word/MS Excel).  Migrated Licensed Professional data into Accela Automation testing database environment. Accela Responsibilities:  Provide standard Licensed Professional conversion documentation and support.  Migrate data provided by the Agency into the Agency’s AA testing database environment. Agency Responsibilities:  Identify data accuracy / quality issues and resolve them (data scrubbing).  Provide Licensed Professional data in the format(s) specified by the standard Licensed Professional documentation.  Allocate the time for qualified business and technical experts for the Accela-led data-mapping sessions that are critical to the project success.  Assist in the data-mapping process.  Load data from original source(s) into the Accela standard staging tables. Statement of Work  2012 Accela Inc. Page 15 of 40  Allocate the time for qualified personnel to test the conversion for acceptance to ensure that the data is converted successfully according to the data-mapping document. Acceptance Criteria:  Review and acceptance of the Licensed Professional Data Conversion Specifications document.  Confirmation that Licensed Professional data has been converted to Accela Automation testing environment according to the standard Licensed Professional data specifications. Acceptance Review Period:  Fifteen (15) business days total. DELIVERABLE 9: HISTORICAL DATA CONVERSION DEVELOPMENT Upon Agency approval of the Historical Data Conversion Specifications document, (Deliverable 6), Accela will provide a program(s) to migrate appropriate historical data into Accela Automation. Upon receipt of the conversion from Accela, the Agency DBA will load the data into the Test environment for validation. A maximum of 120 hours have been allocated for deliverables 6 and 9. As part of deliverable 9, Accela will provide the Agency with training on the Data Mapping Tool and assist the Agency in using the tool in support of the conversion effort. In terms of specific output, the following will be executed for this deliverable:  Migrated historical data into Accela Automation Land Management testing database environment. Accela Responsibilities:  Provide a program to migrate historical data into the Agency’s AA test database environment.  Each data conversion will include up to three (3) conversion loads for client testing  Validate the successful completion of the migration of historical data into the Agency’s test environment. Agency Responsibilities:  Providing the legacy data source in an accepted format  Assist in the execution of the data conversion program and provide access to environments as needed  Provide resources to validate the conversion statistics and the quality of the data converted into Accela Automation Acceptance Criteria:  Historical data has been converted to Accela Automation testing environment according to the Data Conversion Mapping document. Acceptance Review Period:  Ten (10) business days total. SYSTEM INTERFACES No system interfaces are defined or in scope for this project. DELIVERABLE 10: EVENT MANAGEMENT SCRIPTING During the configuration analysis phase of the implementation project, Accela will identify opportunities to supplement the Accela Automation base functionality via Event Manager Script Engine (EMSE) script development. Accela will work with key Agency project stakeholders to identify the business rules/processes to be automated. A maximum of Statement of Work  2012 Accela Inc. Page 16 of 40 fifty-eight (58) services hours will be devoted to EMSE script requirement specification for Land Management, EMSE script development, and EMSE script development consultation and knowledge transfer. Accela will work with Agency to identify desired EMSE functionality, and subsequently will help prioritize the scripting needs to determine which scripts will be developed by Accela, and which scripts can be developed by the Agency. The scripts developed by Accela can be used as models whereby agency staff can develop and modify additional EMSE scripts as needed. Representative examples of business processes that could be automated by a script listed below. Note that the below list is an example list only and not a list of the actual script(s) that will be developed for the project.  Cancel application submittal based on proximity alert (Accela GIS) o Use Case: Do not allow a casino to be located within 1 mile of a school;  Closing workflows based on inspection results o Use Case: Final Inspection is complete, update workflow;  Automatic assessment of complex fee calculations o Use Case: Auto fee calculation, assessment, and invoicing upon application submittal;  Increment a date based on workflow status change o Use Case: Expiration on Permit is made current every time a workflow is updated;  Preventing inspections based on various criteria o Use Case: Depending on workflow / application status, do not allow an inspection to take place. Prior to the development of a script, the Agency will approve a design specification document that will be created jointly by the Agency and Accela. The approved document will be used as a basis for determining completion and approval of the deliverable. In terms of specific output, the following will be executed for this deliverable:  Prioritized list of desired Land Management EMSE scripts (MS Excel/Word).  EMSE script specifications for scripts to be developed by Accela (MS Excel/Word).  Demonstrated operability of scripts in staging/test environment per the design document specifications. Accela Responsibilities:  Work with Agency staff to identify potential uses of EMSE scripting.  Assist with development of list of desired EMSE functionality.  Aid the Agency in prioritizing which scripts will be developed by Accela.  Develop EMSE scripts based on the specifications.  Demonstrate functionality of scripts per specifications. Agency Responsibilities:  Allocate the time for qualified business and technical experts for the script requirements sessions that are critical to the project success.  Identify resources that will learn EMSE scripting tolls and approaches for ongoing maintenance.  Prioritize desired EMSE functionality to determine which scripts Accela will develop.  Provide timely and appropriate responses to Accela’s request for information.  Verify the Event Script Specification meets the intended business requirement.  Allocate the time for qualified personnel to test the script for acceptance.  Ensure that the data populates successfully according to the script requirements document. Acceptance Criteria:  Review and acceptance of design document with written sign-off from the Agency.  Demonstrate a developed script within the system. Statement of Work  2012 Accela Inc. Page 17 of 40 Reports Reports are defined as anything that can be printed from the system, including but not limited to, reports, forms, documents, notices, and letters that the Agency wishes to print as identified during configuration analysis. The Configuration Document will define the reports and documents that are required by the Agency to effectively use Accela Automation. These reports will be broken down by level of effort and identified in the configuration document. It is expected that, after the appropriate training on the database and the selected report writing tool is completed, Agency personnel will be able to handle additional and future report requirements. Reports are classified by level of effort: high, medium, and low. High is defined as a report containing significant calculation and/or extensive detail and number of fields – for example a financial statistical report or complex permit. The majority of reports require a ‘medium’ level of effort, which is defined as a report displaying non-calculated and minimal calculated data fields. Reports with a low level of effort are typically letters or notices that contain contact information and basic application data. These reports can be developed using the integral Accela Report Writer included with Accela Automation, Microsoft Report Service (SRS) or Crystal Reports XI Server at the Agency’s discretion. These custom reports, whether developed with Accela AdHoc Report Writer, SRS or Crystal Reports, will be deployed in the Report Manager for use within Accela Automation. DELIVERABLE 11: REPORT SPECIFICATIONS Accela will develop documents/letters/reports from those identified by the Agency as required for the new Land Management system. Accela and Agency have agreed that Accela will develop Land Management reports based on the following breakdown:  Two (2) of High Complexity  Seventeen (17) of Medium Complexity  Seven (7) of Low Complexity Prior to the development of a report the Agency will approve report design specification documents that will be created jointly by the Agency and Accela. The approved documents will be used as a basis for determining completion and approval of the reports. Development of each report cannot begin until agreement on each specification is complete. A proven strategy that combines the use of the Accela Automation Quick Queries, custom reports developed by Accela that include run-time parameters to allow similar reports to be combined, and the development of other reports by the Agency after training, can ensure that all required reporting requirements are met. In terms of specific output, the following will be executed for this deliverable:  List of identified Land Management reports that Accela will develop  Report Specifications Documents for each of the identified Land Management reports Accela Responsibilities:  Assist in determining level of effort for reports to assist with prioritization.  Develop report specifications. Agency Responsibilities:  Provide timely and appropriate responses to Accela’s request for information.  Make available the appropriate key users and content experts to participate in the report specification. Statement of Work  2012 Accela Inc. Page 18 of 40  Provide information and data in the formats specified by Accela that will be needed for agreement on the Deliverable. Acceptance Criteria:  Agreement on prioritized list of reports that will be developed by Accela.  Review and approval of individual Report Specifications documents. The Agency will not unreasonably withhold acceptance if the Agency requests changes to the reports specifications after the initial signoff of the specification by the Agency.  Agency will have 10 business days to review the Report Specification Documents. If no changes or comments are requested within the 10 days, the Report Specification Documents are considered approved by the Agency. DELIVERABLE 12: REPORT DEVELOPMENT Accela will develop custom documents/letters/reports per the specifications developed and approved in Deliverable 11, Report Specifications. Changes to the report specifications after approval can negatively impact project progress and the overall schedule. Therefore, changes to the report specifications after approval requires an analysis by Accela to determine the level of effort required, and if a change order would be required to complete the work. In terms of specific output, the following will be executed for this deliverable:  A total of twenty-six (26) Land Management documents/letters/custom reports per the Report Specification Documents Accela Responsibilities:  Provide timely and appropriate responses to Agency’s request for information.  Develop reports per specifications.  Assist in the validation of the reports in test environment. Agency Responsibilities:  Provide timely and appropriate responses to Accela’s request for information.  Make available the appropriate key users and content experts to participate in the report development and validation activities.  Request change order if changes to specifications are required. Acceptance Criteria:  Confirmation of report accuracy in test environment per Report Specifications. DELIVERABLE 13: ACCELA GIS CONFIGURATION Accela will install and configure Accela GIS to link and leverage existing Agency GIS information, including assistance with establishing the map service to be used in conjunction with Accela GIS. The following are the main objectives being pursued through the implementation of the Accela GIS:  Look up permit information and parcel information from the Permitting system.  View selection, location, and associated GIS information.  Select one or more parcels and add new applications to the permit system. During GIS installation, Accela’s technical staff will work with Agency IT staff to ensure that the components for hardware, software, database, network, and Internet are in place for the Accela GIS dev and production environments. Accela technical staff will validate the proper installation and configuration of the Accela GIS environment. In terms of specific output, the following will be executed for this deliverable: Statement of Work  2012 Accela Inc. Page 19 of 40  Accela GIS installed on Agency server(s).  Demonstration of operational system. Accela Responsibilities:  Install Accela software and perform quality assurance checks on the configuration and performance based on acceptance criteria mutually developed by Accela and the Agency.  Demonstrate that the Accela GIS applications are operational in the Agency computing environment thus communicating with the Accela Automation system. Agency Responsibilities:  Arrange for the availability of appropriate staff for the system installation, setup, testing, and quality assurance throughout the setup process.  Order and procure necessary hardware, non-Accela systems software, and networking infrastructure as specified by Accela.  Provide people and physical resources based on the dates outlined in the project schedule.  Prepare the hardware, software, and network in accordance with the specifications provided by Accela.  Provide Accela with network access for remote installation and testing.  Provide information and data in the formats specified by Accela that will be needed for the GIS implementation. Acceptance Criteria:  Demonstration of operating Accela GIS in test environment. DELIVERABLE 14: ACCELA CITIZEN ACCESS CONFIGURATION This deliverable includes installation, setup, analysis, configuration and online merchant account setup assistance for the Accela Citizen Access (ACA) software on the Test site for Building business processes. Subsequently, Accela will work with the Agency representatives to assess and implement Accela Citizen Access to extend certain aspects of the internal Accela Automation configuration for use by the general public. Features available for configuration include:  Permit Research  Permit Application and Issuance  Inspection Request Entry  Inspection Results Research  Status tracking In terms of specific output, the following will be executed for this deliverable:  Accela Citizen Access Configuration Specifications Document (MS Word)  Configuration of three (3) unique processes for online submittal Accela Responsibilities:  Setup Accela Citizen Access in Dev and Prod environments.  Work with the Agency to determine which services to expose to the public via Accela Citizen Access.  Create configuration specification for Accela Citizen Access based on analysis with the Agency.  Configure the Online Record types defined in the System Configuration Document in Accela Citizen Access. Statement of Work  2012 Accela Inc. Page 20 of 40 Agency Responsibilities:  Obtain a merchant account, and deploy an internet-enabled payment engine.  Validate that the configuration specification for Accela Citizen Access meets Agency requirements based on details from the Configuration phase of the project.  Perform testing of all Online Record types for purposes of validating the configuration. Acceptance Criteria:  Accela Citizen Access Configuration Analysis Document provides details of all configuration elements based on Accela Automation back office configuration.  The base configuration of Accela Citizen Access is configured as documented in the approved Accela Citizen Access Configuration Specification Document.  Demonstration of the operational Accela Citizen Access functionality per the specification document(s). Acceptance Review Period:  Ten (10) business days. DELIVERABLE 15: ACCELA MOBILE OFFICE CONFIGURATION Accela will install setup and configure the Accela Mobile Office application. As part of this deliverable Accela will perform the configuration tasks required to ensure Accela Mobile Office interfaces with Accela Automation in both a dev and production environment. Using Accela Mobile Office, an Agency inspector can perform activities such as:  Result inspections/investigations in either store/forward or wireless mode  Lookup addresses and parcels and view corresponding activities Analysis activities with the Agency will result in a Mobile Office Configuration Specifications Document. Subsequently, Accela’s staff will extend base configuration of Accela Mobile Office per the Mobile Office Configuration Specifications Document. In terms of specific output, the following will be executed for this deliverable:  Accela Mobile Office Configuration Specifications Document (MS Word)  Demonstration of operational system per Accela Mobile Office Configuration Specifications document Accela Responsibilities:  Create configuration specifications for Accela Mobile Office based on analysis with the Agency.  Configure Accela Mobile Office based on approved specifications document. Acceptance Criteria:  The base configuration of Accela Mobile Office in the Test environment is configured as documented in the Accela Mobile Office Configuration Specifications document. Acceptance Review Period:  Ten (10) business days total. DELIVERABLE 16: V360 USER EXPERIENCE V360 User Experience is comprised of the fine-tuning of the User Interface (“look and feel”) of the system, usability and security. This portion is completed prior to User Acceptance Testing to provide a more refined view of the system and assistance with system acceptance for new users. Accela will use the completed configuration and standard, Statement of Work  2012 Accela Inc. Page 21 of 40 best practice V360 User Interface as a starting point for analysis and documentation of desired look and feel of Accela Automation V360 user interface. In conjunction with the Agency representatives, Accela will perform the following tasks:  Review and update the required portlets for each major user group.  Review and update the required fields, field order and field names of each major portlet.  Provide recommendations and seek input on required Quick Queries in order to define a default list.  Provide recommendations and seek input on required Smart Charts (Dashboards) in order to define a default list. Accela will use the V360 User Console configuration document template, and the appropriate content within that document to capture the Agency’s desired V360 User Experience to be configured, utilizing up to seventy (70) hours of assistance. Accela’s Project Manager will coordinate the compilation of the information collected during the Analysis into the document, including detailed settings related to the following topics:  User Consoles  Form Filters  ASI Form Layout  APO Template Form Layout  Quick Queries  Smart Charts  My Navigation  Go To Menu’s The Project Team, consisting of representatives from both Accela and the Agency, will conduct a formal review of the document for the purpose of approval and sign-off on the deliverable. Accela will configure the application to meet the requirements of the document upon approval. In terms of specific output, the following will be executed for this deliverable:  Analysis activities, including a workshop, interviews, and web conferencing sessions.  V360 User Console Configuration Document(s) (MS Word).  Up to 100 Hours of Configuration of V360 User Experience per the V360 User Console Configuration Document Accela Responsibilities:  Conduct sessions to capture the required look and feel functionality of the Accela Automation system.  Conduct meetings via email, web conferencing, phone, and in person to gather and validate analysis input.  Prepare and complete V360 User Console Configuration Document.  Build the user experience components as documented in the V360 User Console Configuration Document. Agency Responsibilities:  Provide timely and appropriate responses to Accela’s request for information.  Make available the appropriate Agency key users and content experts to participate in the user experience analysis and verify the accuracy of the documented user experience elements.  Schedule participants and meeting locations for analysis activities. Acceptance Criteria:  V360 User Console configuration document.  Demonstration of the configured V360 experience.  Agency will have 10 business days to review the V360 User Console configuration document. If no changes or comments are requested within the 10 days, the V360 User Console configuration document and milestone is considered approved by the Agency. Statement of Work  2012 Accela Inc. Page 22 of 40 STAGE 5 – READINESS DELIVERABLE 17: ACCELA AUTOMATION SETUP – PRODUCTION Accela’s technical staff will work with the Agency IT staff to ensure that the components for hardware, software, database, network, and Internet are in place for the production environment. Accela technical staff will validate the proper installation and configuration of the Accela Automation environment. In terms of specific output, the following will be executed for this deliverable:  Installation of the Production Accela Automation environment.  Demonstration of an operational Accela Automation computing environment.  Updated Installation documentation (MS Word and Adobe pdf). Specifically, Accela will perform the following tasks within the support environment:  Perform a remote system check of the installation.  Install Accela software.  Demonstrate that the Accela Automation applications are operational in the Agency computing environment.  Provide documentation of the Agency installation.  Configure Accela Automation to use Crystal Reports. Accela Responsibilities:  Consult with Agency resources to provide technical input and answer technical questions related to the installation requirements for Accela Automation.  Deliver and install the Accela Automation software on the Agency server. Agency Responsibilities:  Provide timely and appropriate responses to Accela’s requests for information.  Prepare the hardware, software, and network in accordance with the specifications provided by Accela. Acceptance Criteria:  Confirmation of ability to log into the Accela Automation software that has been installed on Agency computer systems.  Demonstrate core Accela Automation system is operational in the Agency environment. DELIVERABLE 18: ADMINISTRATIVE AND TECHNICAL TRAINING Accela will provide training for Agency staff that focuses on the administration, maintenance, and augmentation of its Accela Automation configuration. Our aim at Accela is to educate Agency resources on all aspects of Accela Automation in an effort to ensure the Agency is self-sufficient. This allows the Agency to best react to changing requirements and ongoing maintenance, which can allow the Agency to be proactive and significantly reduce system maintenance costs over time. In addition to a comprehensive administrator training course that spans three days, Accela will also train Agency users on the administration and use of the system. Specifically, the following courses will be provided to the Agency.  Accela Automation Core Team Overview,  Accela Automation Administrator & V360Training  Accela Data Mapping Tool  Reports Schema and Training,  Accela Mobile Office Admin Training,  Accela Citizen Access Admin and User Training, Statement of Work  2012 Accela Inc. Page 23 of 40  Accela GIS Admin and User Training. In terms of specific output, the following will be executed for this deliverable:  Two-day Accela Overview Core Training course,  Accela Data Mapping Tool – ½ day training and advisement  Three-day Accela Automation Administrator Training course,  Two-day V360 Training  Two-day Reports Schema and Training course,  Half-day (4 hours) Mobile Office Administrator Training course,  One-day Accela Citizen Access Technical Training course,  Half-day (4 hours) Accela GIS Technical Training course Accela Responsibilities:  Coordinate with the Agency to define training schedule and logistics.  Deliver training per the specific requirements listed above. Agency Responsibilities:  Select and prepare the power-users who will be participating in the training and subsequently training end users.  Arrange the time and qualified people for the training who are critical to the project success.  Provide suitable Agency facilities to accommodate various training classes.  Ensure that users are proficient in using PC’s in a Windows environment as a prerequisite for the course.  Ensure that users are familiar with use of standard Internet browsers as a prerequisite for the course. Acceptance Criteria:  Execution of listed training courses DELIVERABLE 19: DAILY USER TRAINING This Deliverable includes the Delivery by Accela to Agency of either two (2) of the 4 day of Daily User Train the Trainer Training course or four (4) of the 1.5 Day Daily User Training; to be determined at time of training schedules based on current customer need at that time. Accela best practices have proven that class sizes no larger than 12 participants are more successful with students who meet the pre-requisites of the course. The Accela Trainer has the right to modify the class size to ensure successful instruction with Agency agreement. End User Training should be coupled with the Agency delivering supplementary user training to its staff using the core Use Cases documented in each System Configuration Document. Accela recommends that Agency adopt the “80/20 rule” for training, focusing the majority of their training on the 80% of what the Agency normally does operationally. The recommended supplementary training conducted by the Agency can utilize business experts from each area to train on all aspects of their configuration. Accela will deliver current training documentation in a format that can be used to customize the documentation. Documents delivered by Accela to the Agency will be valid for the release that the Agency is trained. Documents delivered by Accela may not be shared with any other agency or Company per the Non-Disclosure Agreement. In terms of specific output, the following will be executed for this deliverable:  Either Two (2) Four-day Daily User Train the Trainer Training Class OR  Four (4) One and a half-day Daily User Training Classes. Accela Responsibilities:  Coordinate with the Agency to define training schedule and logistics. Statement of Work  2012 Accela Inc. Page 24 of 40  Provide 4 Days of Daily User Train the Trainer Training. Agency Responsibilities:  Select and prepare the power-users who will be participating in the training and subsequently training end users.  Arrange the time and qualified people for the training who are critical to the project success.  Provide suitable Agency facilities to accommodate various training classes.  Ensure that users are proficient in using PC’s in a Windows environment as a prerequisite for the course.  Ensure that users are familiar with use of standard Internet browsers as a prerequisite for the course. Acceptance Criteria:  Execution of listed training courses. DELIVERABLE 20: USER ACCEPTANCE TESTING (UAT) This deliverable is comprised of the assistance Accela will provide to allow the Agency to accept that the Land Management solution meets the requirements as documented in all the deliverables. Accela will assist the Agency in the testing and validation of the solution and its readiness to be migrated to production for active use and will assist in transferring the solution and any required data from Support to Production. Accela will provide support for training, oversight, answering questions and addressing issues discovered in User Acceptance Testing. It should be noted that it is critical that the Agency devote ample time and resources to his effort to ensure that the system is operating per signed specifications and ready for the move to production. The testing effort will require a significant time investment by the Agency, and coordination of resources is critical. At this point in the implementation process, the Agency should test individual components of functionality of the solution (i.e., functional and/or unit testing), and also test to ensure that the interrelated parts of the Accela Automation solution are operating properly (i.e., integration testing). Accela will provide assistance to the Agency as needed by providing User Acceptance Testing (UAT) support and facilitating completion of UAT. Accela will address and rectify issues discovered during the UAT process as Agency staff executes testing activities. Accela will work with the Agency to develop a test plan and deliver sample test scripts, as well as an issue log to track the progress of testing. It should be noted that Accela will plan for a total of 2 months to complete this deliverable. If the Agency does not devote adequate time and staffing to UAT in order to completely test the solution, Accela may opt to postpone go-live at the Agency’s expense. Accela will work diligently with Agency to ensure this does not occur and provide several opportunities for the Agency to add additional staff and time to this effort before recommending a postponement or delay. In terms of specific output, the following will be executed for this deliverable:  Resolution of configuration issues resulting from Agency End User Testing.  Fully-tested Land Management system that is ready to move to a production environment. Accela Responsibilities:  Provide recommendations on testing strategy and best practices.  Lead the Agency in up to 2 months of User Acceptance testing effort and the validation of the system configuration and its readiness to be migrated to production for active use.  Resolution of issues as a result of User Acceptance Testing activities. Agency Responsibilities:  Provide timely and appropriate responses to Accela’s request for information. Statement of Work  2012 Accela Inc. Page 25 of 40  Make available the appropriate Agency key users and content experts to participate in user acceptance testing as defined and managed by Agency.  Develop the User Acceptance test scripts.  Utilize the use cases documented in each Configuration Document Deliverable as the basis for the acceptance of this Deliverable. Acceptance Criteria:  Completion of up to 6 weeks of UAT. STAGE 6 - DEPLOY DELIVERABLE 21: PRODUCTION SUPPORT Production date is defined as the official date in which Accela Automation moves from the test environment to production for daily Agency usage. This date will be agreed to by both Accela and the Agency at project inception. It may be altered only by change order agreed to by both parties. In the weeks prior to moving to Production, Accela will assist in final data conversions, system validation, staff preparation assistance and training, and coordination of deployment. In terms of specific output, the following will be executed for this deliverable:  Deployment support prior to moving to Production.  Accela Automation used in production environment for Agency daily use. Accela Responsibilities:  Provide on-site resources to support the move to Production effort.  With assistance from the Agency, lead the effort to transfer the system configuration and any required data from Support to Production.  Assist in the development of a Pre-Production checklist that details the critical tasks that must be accomplished prior to moving to Production. Agency Responsibilities:  Provide technical and functional user support for pre and post Production Planning, execution, and monitoring.  Provide timely and appropriate responses to Accela’s request for information.  Assist in the development of a Pre-Production checklist that details the critical tasks that must be accomplished prior to moving to Production.  Make available the appropriate Agency key users and content experts to participate in user acceptance testing as defined and managed by Agency. Acceptance Criteria:  Deployment support prior to moving to Production.  Production system is first used by the Agency for daily use. DELIVERABLE 22: POST DEPLOYMENT SUPPORT AND TRANSITION TO CRC This deliverable is comprised of the post- Production support assistance that Accela will provide to address issues and provide consultative advice immediately following the move to Production for daily use. Accela will provide support for one (1) month immediately following deployment (go-live). At the end of the support period, a formal meeting will be scheduled with the Agency, Accela Services Team, and Accela CRC for the purpose of transitioning support of the Agency to Accela CRC. Statement of Work  2012 Accela Inc. Page 26 of 40 Accela will work with the Agency to identify and address issues identified during this period using a Post Production Issues List. This list will be comprised of issues related to the defined deliverables listed in this SOW, which will be addressed by Accela, as well as any other issues which will be addressed by the Agency. Examples of issues the Agency is responsible for include training issues, functional changes beyond the scope of this Statement of Work, cosmetic changes, and procedures related to the use of Accela Automation. Specifically, Accela will not be developing or creating additional reports, conversions, record types and workflow processes that were not included in the scope of this project. In terms of specific output, the following will be executed for this deliverable:  One (1) month of Post Deployment Support.  Finalized Post Production Issues List.  Transition of Agency from Services team to Customer Resource Center for ongoing support. Accela Responsibilities:  Provide post-production support for Accela developed configuration and components.  Assist with the identification of issues for the Post Production Issues List.  Assist with issues that may arise related to the deliverables in this SOW.  Transfer ongoing support of the client to the CRC to address any post Production issues that require remediation. Agency Responsibilities:  Provide technical and functional user support for post-production support and monitoring.  Develop and maintain a Post Production Issues List.  Provide timely and appropriate responses to Accela’s request for information.  Make available the appropriate Agency key users and content experts to participate in user acceptance testing as defined and managed by Agency. Acceptance Criteria:  Execution of one (1) month post-Production support.  Official transfer from the Accela Services project team to the Customer Resource Center (CRC). Statement of Work  2012 Accela Inc. Page 27 of 40 PROJECT RESOURCES AND LOCATION OF WORK WORK LOCATION Services contracted under this SOW may be performed remotely and/or at the Agency’s on-site facilities as deemed appropriate and reasonable for the successful completion of the Services detailed herein. AGENCY RESOURCES Agency must fill the appropriate roles with the appropriate personnel to work together with the Accela Engagement Team for these Services and that Agency will make available additional resources as needed for the Services to be successful. Agency roles can be filled by the same person. In addition, Agency will provide all necessary technical resources to make appropriate modifications within any Agency systems wishing to integrate with any Accela systems. These resources must be proficient in Agency coding/development environment and tools, to make the required changes to their software to enable integration and must be available during the timeframe of these Services. Agency roles include Sponsor, Project Manager, Technology Manager, and Business Lead(s) for each Division/department being implemented, Super User trainers, and others as appropriate. Agency Resources Description Project Sponsor Responsibilities include:  Ultimate responsibility for the success of the project,  Creating an environment that promotes project buy-in,  Driving the project through all levels of the agency,  High-level oversight throughout the duration of the project,  Serving as the primary escalation point to address project issues in a timely manner. Project Manager Responsibilities include:  Overall administration, coordination, communication, and decision- making associated with the implementation;  Planning, scheduling, coordinating and tracking the implementation with Accela and across departments within the agency;  Ensuring that the project team stays focused, tasks are completed on schedule, and that the project stays on track. Division/Departmental Business Leads A user representative for each affected department must be appointed to facilitate analysis and configuration and serve as a decision-making entity for that group. These critical appointments may well determine the success of the implementation for their respective areas. Responsibilities include:  Attending requirements workshop sessions;  Willing and able to gather data and make decisions about business processes;  Assist in the creation of specifications for reports, interfaces & conversions  Review and test the system configuration;  Participating in the implementation of the Accela Automation solution. Statement of Work  2012 Accela Inc. Page 28 of 40 Division/Departmental Subject Matter Expert (SME) Responsibilities include:  Being trained on the Accela Automation system at a System Administration level;  Being fully engaged in the Business Analysis and system configuration activities;  Assist internal efforts towards the creation of reports, interfaces & conversions;  Assist in the review and testing of the system configuration;  Actively participate in the full implementation of the Accela Automation solution. Technical Lead Responsibilities include:  Primary responsibility for the technical environment during the software implementation;  Ensure that servers, databases, network, desktops, printers, are available for system implementation and meet minimum standards;  Work with Accela technical personnel during implementation;  Maintain test and production databases;  Perform day-to-day maintenance of the system and install maintenance releases;  Act as the primary technical resource for troubleshooting problems;  ·Establish and maintain backup, archival, and other customary maintenance and housekeeping activities. ACCELA RESOURCES Accela will assign key Professional Services resources for this engagement with Agency. These individuals are well versed in the Accela Automation application, and are well qualified to lead this effort. Accela’s Project Manager shall assume full responsibility for the coordination of this team and its interaction with key Agency resources assigned to the effort. The main roles are as follows: Accela Resources Description Project Executive The Project Executive oversees the project’s progress/direction and works with the Project Manager to ensure efficiency, consistency and quality in delivery of Accela implementations. The Project Executive actively participates in a project director/executive role. The Project Executive will meet with Agency Executives monthly or upon request throughout the duration of the project. Project Manager The Accela Project Manager is responsible for the overall project management and works directly with the client throughout all aspects of Accela implementations: from the initial scoping, planning, staffing to delivery. The Project Manager undertakes the project administration tasks including:  Project plan management,  Change order management,  Issue log management and escalation, Statement of Work  2012 Accela Inc. Page 29 of 40  Status reporting,  Project workspace management,  Resources management,  Work plan management,  Meetings management,  Project review with Project Executive. In addition, the Project Manager will actively participate in leading the System Configuration Analysis sessions and will be responsible for the creation of the System Configuration Document. Senior Implementation Consultant The Senior Implementation Consultant assigned to the project will have major experience in the business process as well as the product functionality and is responsible for:  Business analysis activities: Mapping the client’s business processes and requirements to the functionality of Accela’s products and the creation of solution design,  Leading system configuration activities,  Providing training/mentoring to agency staff,  Recommend industry best practices to agency to enhance business processes,  Guide agency on how best to configure the system based on past experiences and software expertise. Implementation Consultant Implementation Consultant resources support the project and typically focus on the following tasks.  The configuration of the system to match the System Configuration document.  Build activities within the project, such as conversion data mapping, creation of reports and interface specification. Technical Consultant Accela Technical Consultants are involved in all areas that require knowledge of server-side considerations and Accela add-on products such as:  Application installation and setup (Accela Automation, Accela GIS, Accela Mobile Office, and Accela Citizen Access),  Report definition and creation,  Event Manager Script definition and programming,  Database Conversions and data mapping assistance,  Interface specifications and development. Training Consultant Training Consultants are responsible for Accela Training classes with assistance from Implementation consultants, depending on the nature of the specific project. Statement of Work  2012 Accela Inc. Page 30 of 40 PAYMENT SCHEDULE The table below represents the Services payments to be made during the project. Progress Payments will commence 30 days after on site kick-off meeting, and occur monthly. Progress Payment Schedule Description Payment Amount Payment Date Progress Payment 1 $29,792.00 Upon Contract Signing Progress Payment 2 $14,896.00 1 Month after kickoff Progress Payment 3 $14,896.00 2 Months after kick-off Progress Payment 4 $14,896.00 3 Months after kick-off Progress Payment 5 $14,896.00 4 Months after kick-off Progress Payment 6 $14,896.00 5 Months after kick-off Progress Payment 7 $14,896.00 6 Months after kick-off Progress Payment 8 $14,896.00 7 Months after kick-off Progress Payment 9 $14,896.00 8 Months after kick-off Progress Payment 10 $14,896.00 9 Months after kick-off Progress Payment 11 $14,896.00 10 Months after kick-off Progress Payment 12 $14,896.00 11 Months after kick-off Progress Payment 13 $14,896.00 12 Months after kick-off Progress Payment 14 $14,896.00 13 Months after kick-off Progress Payment 15 $14,896.00 14 Months after kick-off Progress Payment 16 $14,896.00 15 Months after kick-off Progress Payment 17 $14,896.00 16 Months after kick-off Progress Payment 18 $29,792.00 Final Acceptance Total $297,920.00 Statement of Work  2012 Accela Inc. Page 31 of 40 Monthly Project Management Payment Schedule Description Payment Amount Payment Date Project Management Payment 1 $1,813.39 1 Month after kickoff Project Management Payment 2 $1,813.33 2 Months after kickoff Project Management Payment 3 $1,813.33 3 Months after kick-off Project Management Payment 4 $1,813.33 4 Months after kick-off Project Management Payment 5 $1,813.33 5 Months after kick-off Project Management Payment 6 $1,813.33 6 Months after kick-off Project Management Payment 7 $1,813.33 7 Months after kick-off Project Management Payment 8 $1,813.33 8 Months after kick-off Project Management Payment 9 $1,813.33 9 Months after kick-off Project Management Payment 10 $1,813.33 10 Months after kick-off Project Management Payment 11 $1,813.33 11 Months after kick-off Project Management Payment 12 $1,813.33 12 Months after kick-off Project Management Payment 13 $1,813.33 13 Months after kick-off Project Management Payment 14 $1,813.33 14 Months after kick-off Project Management Payment 15 $1,813.33 15 Months after kick-off Project Management Payment 16 $1,813.33 16 Months after kick-off Project Management Payment 17 $1,813.33 17 Months after kick-off Project Management Payment 18 $1,813.33 18 Months after kick-off Sub-Total $32,640.00 Total Project Sub-total $330,560.00 Travel Expenses Estimate $36,000.00 Total $366,560.00 EXPENSES Out-of-pocket travel and lodging expenses incurred by Accela resources in the performance of this Statement of Work will be reimbursed by Agency as incurred, in accordance with the Services Agreement between Accela and the Agency. Out-of-pocket travel and living expenses include but are not limited to all travel, airfare, transportation, lodging, parking, wireless internet connectivity, and meals. ACCEPTANCE The Services contracted for in this Statement of Work will be considered Accepted when all Deliverables defined in the Work Description Section have been accepted by Agency as defined for each Deliverable. Additionally, transition to Accela’s Customer Service Center, CRC has been completed. The live system has been handed over to the CRC and the transfer of knowledge from the Project Team to the CRC has also been completed. All training has concluded and project documentation has been handed over to the CRC. TERMS The pricing and terms of this proposal are valid until June 30, 2014. If this Statement of Work is accepted after this date all pricing and terms may not be valid. Statement of Work  2012 Accela Inc. Page 32 of 40 APPENDIX A - ACCELA IMPLEMENTATION METHODOLOGY Accela will deliver its Services to the Agency by employing the methodology detailed in this section. This is a proven methodology that guides the project from inception to deployment, thereby increasing the chances of successfully implementing Accela software products. Project delivery through execution of this Implementation Life Cycle is described below. IMPLEMENTATION LIFE CYCLE Thorough execution of these six stages ensures that Accela customers receive high-quality services throughout the project engagement. As illustrated in the figure above, the stages of project delivery flow in linear direction, although many tasks run in parallel as appropriate to avoid unnecessary project delays. Each stage has pre-defined objectives, tasks and associated deliverables. Depending on the exact scope of the project, a full complement or subset of all available deliverables will be delivered through the services defined for the project. Employing this deliverables-based approach ensures that Accela and the Agency understand the composition and ‘downstream’ impact of each project deliverable to ensure the project is delivered with quality and in a timely manner. INITIATION Initiation represents the first stage in the lifecycle. During the Initiation stage, project contracts and the SOW are finalized, project scope and objectives are reviewed, and project planning activities and deliverables are completed. In terms of specific deliverables, common output from the Initiation Phase is as follows:  Project Charter,  Baseline Project Plan,  Project Status Report Template,  Project Sharepoint Site pre-loaded with baseline documentation,  Project Initiation Meeting. TO-BE ANALYSIS Analysis is the second stage in the lifecycle. During the Analysis stage, Accela reviews existing agency documentation, interviews agency staff, and conducts workshops to understand the “To-Be” vision of the Agency that can be executed with the aid of Accela Automation. It is during this Phase that Accela gains a deeper understanding of Agency processes and business rules; simultaneously, the Agency begins to gain a deeper understanding of the methodology and Accela Automation capabilities. A key output of this Phase is the To-Be Analysis Document(s) which serve as the ‘foundation’ for configuration of Accela Automation to support germane elements of the Agency “To-Be” vision. Supplementing the To-Be Analysis Document(s) are all other configuration specifications documents related to data conversion, interfaces, reports, and event scripts. Statement of Work  2012 Accela Inc. Page 33 of 40 SOLUTION FOUNDATION Solution Foundation is the third stage in the lifecycle. It begins upon completion of Stage 2 and should be completed prior to the next stage, Build. During the Solution Foundation stage, Accela Automation will be built to match the to-be processes agreed to in the Analysis stage. Essential to this effort is the configuration of the Record (Case, Application, and Permit types) that were agreed to during the Analysis phase. Configuration of in-scope record types is comprised of, but not limited to:  User-defined fields (Application-Specific Information and Task-Specific Information),  Workflows and statuses,  Fee structures and rules,  Inspection data. BUILD Build serves as the fourth stage in the lifecycle, and execution of this stage overlaps Configuration, but ends after Configuration is complete. During the Build stage, all defined elements during the Analysis stage beyond the Solution Foundation will be implemented. This includes conversions, event scripts, interfaces and reports. In terms of specific deliverables, common output from the Build Phase is as follows:  Event Script Development,  Report Specifications and Development,  Data Conversion Specifications and Development,  Interface Specifications and Development. READINESS Readiness is the fifth stage in the lifecycle. During the Readiness stage Accela Automation is fully tested, errors are identified, documented and corrected. Additionally, the solution is prepared for deployment. In addition, system administrators and end users are trained so that all appropriate agency staff members are prepared to use and maintain the software once the move to production occurs. In terms of specific deliverables, common output from the Readiness Phase is as follows:  User Acceptance Testing,  End-User Training. DEPLOY Deploy is the sixth and final stage in the lifecycle. During the Deploy stage the applications are moved to production; all requisite pre-production activities are identified, tracked and completed, and post-production analysis and review is completed. Upon moving to production, the Accela Automation applications are transitioned to the Accela Customer Resource Center (‘CRC”) for ongoing support. A formal transition will occur between the Services team and the CRC that instructs the agency on available communication channels (telephone, email, and online tracking system) and use of the Accela knowledge base. Lastly, all documented issues or enhancement requests will be transitioned from the Services team to the Customer Resource Center. In terms of specific deliverables, common output from the Deploy Phase is as follows:  Pre-Production Checklist Development, Tracking and Execution,  Move to Production,  Post Production Analysis,  Formal Transition to the CRC for Ongoing Support Statement of Work  2012 Accela Inc. Page 34 of 40 APPENDIX B – STANDARD PROJECT ASSUMPTIONS Following the assumptions is a summary of the anticipated project risks, impacts and mitigation strategies that we documented based on our understanding of the project and our prior experience on similar initiatives. The information in this section is organized into the following categories:  Project Management and Administration  Project Schedule  Technology – Infrastructure  Training  Conversion and Interfaces  Testing  Pricing PROJECT MANAGEMENT AND ADMINISTRATION 1. Accela will be utilizing IK Consulting, LLC, as the main services partner for work related to this SOW, as specified within the Deliverables section of this document. 2. Agency and Accela will review their responsibilities before work begins to ensure that Services can be satisfactorily completed. 3. Agency shall provide the necessary tools, accounts, and permissions that will enable Accela to access the Agency’s internal network for the purpose of remote installation and testing. This access must be provided through industry standard tools such as Virtual Private Network (VPN). Failure to provide this access in a timely fashion will result in a project delay. Such a delay will result in a Change Order. 4. Agency will be responsible for all coordination, scheduling, meeting minute documentation and management and resolution of action items. Accela will provide Agency information and data required for all meetings for follow up with Agency. 5. Agency agrees during the Initiation Phase of the project to assign a single designated approver for each major project deliverable. The designated approver will be responsible for overseeing and/or directly participating in the design and development, as well as the approval, of the deliverable. Agency may make changes to designated approvers with written notification to Accela a minimum of one month before a deliverable is due. 6. Accela may perform work off-site. 7. When the project team works on-site at an Agency facility, suitable workspace will be provided and equipped with appropriately functional and usable desktop workstations, phones, network access to and connectivity with all systems, networks, and data as necessary to perform the project. 8. All decisions regarding project change orders and other project issues will be documented in writing using an issue management process mutually agreed upon by the Agency and Accela. For each issue, the project team in conjunction will describe the issue, various options and a proposed recommendation in writing for consideration. Work will not commence until approved through the established changed control process for the project. 9. Accela personnel will attend Agency executive steering committee meetings as needed. 10. Agency will respond to requests for information, data, and clarifications and make Project related decisions within 3 working days in order to prevent excessive delays or repeated delays that may impact the project schedule. 11. Accela will need access to (Agency/Department) subject matter experts to assist in identifying business rules, resolving process discrepancies, and answering questions. These subject matter experts will, in turn, solicit input from appropriate Agency management on any areas where policy or procedure is undefined. 12. Agency has committed to the involvement of key resources and subject matter experts for ongoing participation in all project activities as defined in the project plan associated with this SOW. 13. Accela will provide the Agency with a Weekly Status Report that outlines the tasks completed during the prior week, the upcoming tasks that need to be completed during the following week, the resources needed to Statement of Work  2012 Accela Inc. Page 35 of 40 complete the tasks, a current version of the project plan, and a listing of any issues that may be placing the project at risk (e.g., issues that may delay the project or jeopardize one or more of the production dates). PROJECT SCHEDULE 1. Schedule changes resulting from Agency business decisions and/or Agency staff availability that adjust the delivery of Project Team services beyond the agreed upon Project scope and timeline will likely impact the overall Project schedule and related fees. Such issues will be managed through the established change control procedure, as necessary. 2. Accela's project schedule and task estimates account for staff as per its proposal response and its understanding of the scope. As part of requirements validations, scope may be clarified, increased or reduced which may result in staff and associated schedule and cost changes. 3. Agency will maintain primary responsibility for the scheduling of Agency employees and facilities in support of project activities. 4. The project schedule is managed using Microsoft Project. Should any tasks slip behind schedule ten (10) business days, Accela and Agency will escalate according to the Communication Plan in the Project Charter. TECHNOLOGY–INFRASTRUCTURE 1. Agency will provide Accela with access to its equipment, systems, and personnel to the extent needed to complete the defined Services. 2. Accela will implement the most current version of Accela Automation at the time of the installation. New versions of Accela software released during the implementation are considered out of scope. 3. Agency will provide Accela with access to its equipment, systems, and personnel to the extent needed to complete the defined Services, including, but not limited to, internet access, access to Accela servers, VPN access to the Agency network, and admin rights to all Accela servers (as needed). 4. Agency will provide/purchase/acquire the appropriate hardware, software and infrastructure assets to support all required Accela software products in both support/testing and production environments as defined in the project schedule. 5. Agency is responsible for proper site preparation, hardware, software, and network configuration in accordance with Accela specifications. 6. The Agency will host and operate the system environment. This includes all necessary system and database backup and recovery services. 7. The Agency will be responsible to ensure and certify that the new application will not adversely affect any existing systems in a shared environment (if applicable). 8. The Agency will be responsible for performing all necessary activities related to the current Agency applications, data, network and infrastructure, including PCs and associated peripheral devices, hardware, operating software, database management systems, network, and system security, to support the Project. These activities include infrastructure installation, support and enhancement necessary to support the project, legacy system shutdown, legacy system modification, and interface development in the legacy system, legacy data extraction and cleansing and legacy system support. 9. The Agency or any concerned agency will be responsible for making the necessary modifications to Agency or 3rd Party systems to make an interface available to Accela. 10. The Agency will provide the acquisition, installation, configuration, upgrading and other related hardware/software component related activities of all relevant user workstations, laptops and mobile computing devices. 11. The Agency will be responsible for confirming that any proposed hardware and software meet agency and other Agency standards (if applicable). 12. The Agency will provide necessary network support, communications, modifications, and administration including but not limited to: a. The Agency will ensure that the system environments (to include electrical, network, HVAC, floor space) are available to support the Project, as needed to maintain the Project schedule. Delays attributable to the environments not being available that have a scope or schedule impact will be managed through the established change process. Statement of Work  2012 Accela Inc. Page 36 of 40 13. The Agency will certify through approval of deliverables that all systems and components comply with any applicable laws, regulations, standards, and statute, including Security Certification and Accreditation (C&A) and ADA compliance. 14. The Agency will provide Accela with necessary access to the associated Agency systems to meet requirements including, but not limited to interfaces, subject matter experts and relevant documentation. 15. Agency will provide necessary network support, communications, modifications, and administration. 16. Accela software will be installed on Customer provided backend Server Platforms specifically Windows Servers, and Microsoft SQL Server Database, in two separate environments (Test and Production). 17. For use with Accela Citizen Access, Agency will provide/purchase/acquire an online merchant account and all related hardware required by the merchant account provider for the handling of credit cards and/or checks. TRAINING 1. In support of the training effort, the Agency will: a. Identify all trainers and engage them with the project team as early as possible in the schedule in order to develop their knowledge of the system. b. Be responsible for the costs associated with any recommended external training as identified and confirmed in the Training Plan. 2. Our proposed project price is based on Train-the-Trainer (TTT) delivery. 3. Accela will train up to 14 people per training class provided. 4. The Agency will help plan, prepare for and assist in delivering the train-the-trainer sessions. As necessary, the Agency will provide the setup of individual training user IDs and appropriate role-based responsibilities. The Agency will provide test scripts, processes and policies to the project team in a timeframe that supports the training content development schedule. The Agency will provide and/or otherwise enter training environment data and will be responsible for maintaining the training environment, including refreshing the training database per a refresh master schedule. 5. The Agency is solely responsible for making designated trainees (trainers) available for training per the project schedule. If any designated trainee is not available to participate in scheduled training, Accela is not responsible for making alternative arrangements for missed training. 6. The Agency will provide all hardware, software and supporting equipment required for delivery all training. The Agency will provide appropriate classroom facilities and training environments when required. 7. The Agency will be responsible for all end user training including training logistics, training scheduling, and the printing of training materials. The Agency will confirm the total number of training rooms needed for the project duration after the approval by the Agency of the draft training strategy. CONVERSION AND INTERFACES 1. The proposed project plan includes data conversion/migration activities as part of the project scope. To facilitate the completion of these tasks, the Agency will provide access to the legacy systems and databases and appropriate subject matter experts or system owners to aid in the conversion process. 2. For the data conversion/migration effort, the Agency is responsible for the business data quality assessment and/or data cleansing as well as extraction of the data from legacy systems in a format to be specified by the project team. The Agency will provide resources to accurately assess the quality of data in legacy systems and databases to be converted and take mutually acceptable measures to improve the quality of that data to meet project requirements. If the quality of the data shifts the delivery of project team services beyond the agreed upon project scope and timeline, it may affect the overall project schedule and related fees. Such impacts would be managed through the established change control procedure. 3. Accela understands the complexity and level of detail inherent in conversion activities and provides this information in an effort to address common questions and misconceptions. Any conversion activities not included in this Standard Project Assumptions section are considered out of scope, and can be addressed through a change order for Accela services, or can potentially be executed by the Agency, depending on the nature of the tasks and the skills required. Statement of Work  2012 Accela Inc. Page 37 of 40 4. The standard historical data conversion includes converting transactional tables, current APO and Professional License data. 5. Extensive quality assurance of historical data by the Agency is recommended to verify accurate transfer of data. Accela will perform unit testing of the conversion program and perform spot checks of the data within AA to rule out data corruption. 6. A complete core configuration must be completed prior to data conversion as it is heavily dependent upon configuration. In particular: a. Record types must be configured and work flow must be established for each Record type prior to conversion, b. Configuration of application specific information must exist, c. Agency sign off on data maps is required prior to executing the first conversion run. 7. The Agency and Accela will jointly develop specifications for required interfaces to legacy Agency and external systems. Agency will certify all interfaces prior to the start of User Acceptance Testing. The Agency staff will develop the legacy portion of the interface, create test data, perform tests on each interface, and approve the final version for moving into production. Other Agency interface responsibilities include: a. Data transformation, as necessary, to meet the requirements defined in the project solution design documents. b. Stabilization of the target legacy interface applications. c. Coordinating development of any external interfaces per the baseline project schedule. d. Developing/maintaining a test environment for target legacy interface applications. e. Taking corrective action based on test results for legacy environment within two business days. 8. Conversion of transactional tables, Address/Parcel/Owner (APO) data, Professional License data is executed “As- is” into Accela Automation. “As-is” means no data transformation (unless the Accela Data Mapping tool enables the data transformation) and also means the mapping will be field-to-field, such that a single field is mapped to a single field. “As-is” means the data will look in AA as it appears in the legacy system. 9. Database Formats for historical conversions that utilize the data mapping tool, data must be provided in either an MS SQL Server or Oracle database. Accela will lead the effort to supply the historical data in the appropriate format. (Note that APO and Licensed Professional data can be provided in Oracle, MS-SQL Server, MS Access, or pipe delimited flat file because these two conversions do not utilize the data mapping tool). 10. Conditions of approvals can be mapped to workflow using the Data Mapping Tool and are standard provided they correlate and are configured to a work flow item in AA. Conditions of lock/hold/notice are standard. 11. The data conversion includes converting documents to ADS in AA provided the client provides the documents in a structure Accela requires. The documents will be converted to ADS and written/stored in a file system, not a database. See Standard Document Migration for additional details. 12. The following are the standard data concatenation/translation rules: a. Record level concatenation (e.g. Fielda & “ and “ & Fieldb), b. Type casting with defaulting (e.g. convert a string to a date or number if translation is possible, c. Null checked on required fields, d. Add two numbers (e.g. NumberA + NumberB), e. Translate legacy items that fit into the predefined translation tables, f. Eliminate duplicated records. 13. The Agency requires an interface to Accela Automation Inspection scheduling and status features will be leveraged to the public through an interface to Selectron IVR. While Accela has an existing relationship with Selectron that allows Selectron IVR to be integrated with Accela Automation for inspection scheduling and tracking purposes, the responsibility for the maintenance of the interface becomes the responsibility of Selectron and the Agency. 14. Accela will train Agency staff to map data as needed. Data can be mapped using the Accela Data Mapping tool, an Accela implementation tool used to map legacy data into Accela Automation. The standard allows for certain types of mappings. For example, a legacy ‘yes/no’ field that would map to an AA yes/no field is allowed for within the standard. Another example the tool allows is mapping a legacy ‘1 or 0’ to a checkbox field in AA. 15. The Agency or any concerned agency will be responsible for making the necessary modifications to their systems to make an interface available to Accela. Statement of Work  2012 Accela Inc. Page 38 of 40 16. The purpose of all interfaces will be strictly limited to an exchange of data. STANDARD DOCUMENT MIGRATION The standard document migration is for clients who will be utilizing the Accela Document Service (ADS). The ADS system can store files associated to an application and/or parcel. In order for the file to be associated to an application or Parcel record the data must be loaded prior to running the standard migration tool. All files must be in the pre-defined format as described below and on a windows based machine. To use the Document Migration Tool the files that need to be loaded into ADS must be in a pre-defined format. To create the required structure follow the below steps:  Create the root repository on the server/computer where you want to store the files that need migrated. For purposes of this document, it is assumed that the repository is at C:\AccelaDocuments\  Under the C:\AccelaDocuments folder there will be a folder for each application/parcel record that has a file that needs to be associated to it. The name of the folder must be either the application or parcel number.  All files to be associated to the application or parcel record will be placed in the folder. For example, for the application number of BLDG07-00001 There will be a folder created at “C:\AccelaDocuments\BLDG07- 00001” located in this folder will be all files that need to be linked to the application number of BLDG07- 00001.  The Standard Document Migration tool will load the appropriate table in Accela Automation and ADS databases. TESTING 1. Accela will be responsible for unit test and support the remaining testing processes and phases, correcting any defects based upon expected functionality captured in the approved Design. 2. Agency will develop the Acceptance Test Plan in collaboration with their staff/departments. The Agency will be responsible for executing the Test Scripts and validating and loading all required test data into the Test Environment necessary for test execution. 3. The Agency is responsible for developing, within the framework of the agreed upon Test Plan and Scripts, all test datasets and related database content to support Integration, System and User Acceptance Testing. 4. Accela will provide a sample User Acceptance Test Plan. PRICING ASSUMPTIONS Our fixed-fee price is based on the scope, approach, resource estimates, deliverables and assumptions defined in this task order. The level of effort included in our pricing was estimated based on the information available and discussion with Agency on roles and responsibilities. As the project detailed design progresses, Accela will work with Agency to further define and estimate at a detailed level customizations/extensions and other custom coded components as well as prioritize work in these areas. Should Agency require customizations/extensions and other custom coded components, revised resource and cost estimates will be made. Any resulting scope changes will be managed through the established change control procedure for the project. 1. Agency accepts best practices templates as basis for system configuration (workflow process, workflow tasks, workflow task statuses, smart-choices, renewal info, application statuses, Accela Citizen Access record types, and inspections) with some modifications allowed to address customer-specific nomenclature, application specific information, fee schedules, conditions, and Accela Citizen Access text. 2. Twenty-Three(23) unique Land Management business processes (this includes distinct combinations of workflow processes, inspections, fee schedules, and application intake process) are included for the record type configuration. Additional need for more business processes configuration will be the responsibility of the Customer. Accela will train Customer resources adequately so this can be accomplished by the Customer. 3. Up to Fifty-Eight (58) hours of custom Land Management Event Manager Scripts will be designed and configured. Event Manager Scripts are useful when a solution via base configuration cannot be achieved, as custom scripts extend the base functional capabilities of Accela Automation software. Statement of Work  2012 Accela Inc. Page 39 of 40 4. Accela will train Agency Staff to understand the Accela Database structure so the Agency can develop reports beyond the proposed Twenty-Six (26). The Agency resource should already possess a working skill and proficiency with ANSI SQL and T-SQL, Microsoft SQL Server Reporting Services reporting tools and report develop techniques. Accela does not provide training in either of these noted areas of proficiency. Statement of Work  2012 Accela Inc. Page 40 of 40 APPENDIX C – DELIVERABLES ACCEPTANCE FORM Date: Agency Name: Approving Agency Manager: Accela Manager: Project Name / Code: Contract / Agreement #: Agency agrees that Accela has successfully completed the following Deliverables: Deliverable # Source / Reference Details Service Agreement Agency agrees that Accela has successfully completed the Deliverables described above in accordance with the terms of the related Contract/Agreement. Agency Name Signature Title Date Sign and fax this document to: Accela, Inc. Connie Ingram IK Consulting, LLC Tel: (520) 891-5319 Fax: (520) 721-8634 Email this document as an attachment to: connie.ingram@ikcpartners.com OR Please acknowledge acceptance by: A B APPROVALS: Statement of Work  2013 Accela Inc. Page 1 Statement of Work City of Hermosa Beach Asset Management Version 1.3 6/14/2014 THE LEADING PROVIDER OF GOVERNMENT ENTERPRISE MANAGEMENT SOLUTIONS Statement of Work  2013 Accela Inc. Page 2 TABLE OF CONTENTS TABLE OF CONTENTS ............................................................................................................................................................................. 2 DOCUMENT CONTROL ............................................................................................................................................................................ 4 OVERVIEW ................................................................................................................................................................................................ 5 SERVICES DESCRIPTION ........................................................................................................................................................................ 5 PURPOSE ............................................................................................................................................................................................. 5 PROJECT TIMELINE ............................................................................................................................................................................... 5 PROJECT MANAGEMENT ........................................................................................................................................................................ 5 CRITICAL SUCCESS FACTORS ................................................................................................................................................................ 6 PROJECT ASSUMPTIONS ........................................................................................................................................................................ 7 WORK DESCRIPTION ............................................................................................................................................................................. 8 STAGE 1 - INITIATION ........................................................................................................................................................................... 8 DELIVERABLE 1: PROJECT INITIATION ..................................................................................................................................................... 8 DELIVERABLE 2: ACCELA AUTOMATION SETUP – CLOUD SUPPORT ......................................................................................................... 10 STAGE 2 – TO-BE ANALYSIS .............................................................................................................................................................. 10 DELIVERABLE 3: ENTERPRISE-WIDE WORKSHOP............................................................................................................................... 12 DELIVERABLE 4: TO-BE ANALYSIS SESSIONS – ASSETS AND SERVICE REQUEST ................................................................................ 13 DELIVERABLE 5: TO-BE ANALYSIS DOCUMENT(S) – ASSETS AND SERVICE REQUEST .............................................................................. 14 STAGE 3 – SOLUTION FOUNDATION .................................................................................................................................................... 15 DELIVERABLE 6: ACCELA AUTOMATION SOLUTION FOUNDATION – ASSETS AND SERVICE REQUEST .......................................................... 15 STAGE 4 – BUILD .............................................................................................................................................................................. 16 DELIVERABLE 7: HISTORICAL DATA CONVERSION ANALYSIS .................................................................................................................. 16 DELIVERABLE 8: HISTORICAL DATA CONVERSION DEVELOPMENT ............................................................................................................ 17 DELIVERABLE 9: EVENT MANAGEMENT SCRIPTING ASSISTANCE............................................................................................................. 18 DELIVERABLE 10: REPORT SPECIFICATIONS ......................................................................................................................................... 19 DELIVERABLE 11: REPORT DEVELOPMENT ............................................................................................................................................ 20 DELIVERABLE 12: ACCELA GIS CONFIGURATION ................................................................................................................................... 20 DELIVERABLE 13: ACCELA MOBILE OFFICE CONFIGURATION ................................................................................................................. 21 DELIVERABLE 14: V360 USER EXPERIENCE.......................................................................................................................................... 22 STAGE 5 – READINESS .................................................................................................................................................................. 23 DELIVERABLE 15: ADMINISTRATIVE AND TECHNICAL TRAINING ............................................................................................................... 23 DELIVERABLE 16: USER ACCEPTANCE TESTING (UAT) ASSETS ............................................................................................................. 24 DELIVERABLE 17: DAILY USER TRAINING .............................................................................................................................................. 25 STAGE 6 - DEPLOY ......................................................................................................................................................................... 25 DELIVERABLE 18: PRODUCTION SUPPORT – ASSETS ............................................................................................................................. 25 DELIVERABLE 19: POST DEPLOYMENT SUPPORT AND TRANSITION TO CRC ........................................................................................... 26 PROJECT RESOURCES AND LOCATION OF WORK .................................................................................................................................. 27 WORK LOCATION ................................................................................................................................................................................ 27 AGENCY RESOURCES .......................................................................................................................................................................... 27 ACCELA RESOURCES .......................................................................................................................................................................... 29 PAYMENT TERMS ................................................................................................................................................................................... 31 PAYMENT SCHEDULE: .................................................................................................................................................................. 31 EXPENSES: ..................................................................................................................................................................................... 31 CONTRACT SUM: ................................................................................................................................................................................ 32 ACCEPTANCE ...................................................................................................................................................................................... 32 Statement of Work  2013 Accela Inc. Page 3 TERMS ............................................................................................................................................................................................... 32 APPENDIX A - ACCELA IMPLEMENTATION METHODOLOGY ........................................................................................................... 33 IMPLEMENTATION LIFE CYCLE .............................................................................................................................................................. 33 INITIATION ........................................................................................................................................................................................... 33 ANALYSIS ........................................................................................................................................................................................... 33 SOLUTION FOUNDATION ...................................................................................................................................................................... 33 BUILD ................................................................................................................................................................................................. 34 READINESS ......................................................................................................................................................................................... 34 DEPLOY .............................................................................................................................................................................................. 34 APPENDIX B – DATA CONVERSION ASSUMPTIONS ......................................................................................................................... 35 GENERAL INFORMATION AND REQUIREMENTS FOR HISTORICAL CONVERSIONS ..................................................................................... 35 DATA CONVERSION ASSUMPTIONS ....................................................................................................................................................... 35 APPENDIX C – DELIVERABLES ACCEPTANCE FORM....................................................................................................................... 36 Statement of Work  2013 Accela Inc. Page 4 DOCUMENT CONTROL Date Author Version Change Reference 3/28/2014 Dave Feuer 1.0 1st Versión 5/23/2014 Dave Feuer 1.1 Comment Review and Edits based on Inquiries 5/25/2014 Cindy Sullivan 1.2 Review and Acceptance of Edits 6/14/2014 Cindy Sullivan 1.3 Updated Pricing Statement of Work  2013 Accela Inc. Page 5 OVERVIEW Congratulations on your selection of Accela, Inc., and their enterprise suite of industry leading software. The implementation of Accela products is designed specifically to meet the specific requirements and budget defined by City of Hermosa Beach (“Agency”). Accela will utilize a best practice Implementation Methodology, based on previous client interactions and industry knowledge, to promote a successful project that will meet the Agency’s objectives. The following Statement of Work will detail how Accela Services will implement the software you have purchased, including the major milestones and deliverables that will ensure your success. Accela is committed to providing a superior software solution, and deployment of the software, for the current and future needs of the Agency. Accela will work with Agency staff to optimize Accela’s portfolio of software, best practices, and customer experience to enable the Agency to successfully deploy its Accela Automation software and meet its functionality, timing and cost requirements. This Statement of Work (“SOW”) dated September 04, 2013 sets forth a scope and definition of the consulting/professional services, work and/or project (collectively, the “Services”) to be provided by Accela (“Accela”) to Agency. SERVICES DESCRIPTION PURPOSE The purpose of this document is to detail the specific activities, deliverables, roles and responsibilities, and acceptance criteria that comprise the implementation of Accela Automation, Accela GIS, and Accela Mobile Office for the Agency. Accela will provide professional services for implementation of the above modules and products per the Work Description section detailed henceforth. The following Agency departments comprise the organization scope of the implementation described herein:  Public Works Admin and Yard PROJECT TIMELINE The term of this project is 8 months and 1 phase for the Asset Management Implementation. The 18 month Land Management may supersede this project and is proposed under a separate SOW. Any delays (eg, Change in staff level/availability, missed deadlines) in the Project Timeline which by mutual agreement were created by the Agency will result in an increase in the duration of the project will require a Change Order to reimburse Accela for the additional costs associated with the delay, including but not limited to additional hours for project management, deliverable development and review. Upon execution of this SOW, the parties will collaborate to determine a start date for Services to be rendered. Upon initiation of these Services, the Accela Project Manager will work with the Agency to collaboratively define a baseline project schedule. Given the fact that project schedules are working documents that change over the course of the project, the Accela Project Manager will work closely with Agency to update, monitor, agree, and communicate any modifications. PROJECT MANAGEMENT Accela will provide a full time project manager for services throughout the implementation in order to plan and monitor execution of the project in accordance with deliverables outlined in the Statement of Work. To support the implementation of the Accela Automation software at the Agency, Accela will provide Project Management services throughout the project. Generally these services include the following:  Project plan management using Microsoft Project 2010,  Project document management using Microsoft SharePoint, Statement of Work  2013 Accela Inc. Page 6  Issue log management and escalation,  Status reporting,  Change order management,  Project workspace management,  Resource management,  Executive project oversight and quality assurance. By mutual agreement, some project management tasks may be shared between the Accela Project Manager and the Agency Project Manager. CRITICAL SUCCESS FACTORS In order to successfully execute the services described herein, there are several critical success factors for the project that must be closely monitored and managed by the stakeholders. These factors are critical in setting expectations between the Agency and Accela, identifying and monitoring project risks, and promoting strong project communication.  Knowledge Transfer – While Accela cannot guarantee specific expertise for Agency staff as a result of participating in the project, Accela will make all reasonable efforts to transfer knowledge to the Agency. It is critical that Agency personnel participate in the analysis, configuration and deployment of Accela Automation in order to transfer knowledge to the Agency. Once Post Production assistance tasks are completed by Accela Services, the Agency assumes all day-to-day operations of Accela Automation outside of the Support and Maintenance Agreement. The Service and Maintenance Agreement does not cover any Agency manipulation of implemented scripts, reports, interfaces and adapters. Key knowledge transfer areas include:  Configuration  Scripting  Batch scripts  Interfaces  Event Management Scripts  Reports and Forms  Dedicated Agency Participation – Accela fully understands that Agency staff members have daily responsibilities that will compete with the amount of time that can be dedicated to the Accela Automation implementation project. However, it is critical that the Agency acknowledges that its staff must be actively involved throughout the entire duration of Services as defined in the Project Plan. Accela will communicate insufficient participation of Agency and Accela resources through Project Status Reports with real and potential impacts to the project timeline. Accela will work the project sponsors and department leaders to determine appropriate team member involvement. This could rand range from full-time during early analysis meetings to part-time during the technical implementation phase.  Deliverable Acceptance Process - Implementation services for the above products are formalized through the deliverables defined in this document. Upon completion of each deliverable according to the acceptance criteria defined herein, Accela will provide the Agency with a Deliverable Acceptance Form to formalize acceptance and completion. The Deliverable Acceptance Form is subsequently signed by the appropriate Agency contact, as defined in the Project Charter, and faxed/scanned/emailed or hand delivered to Accela. Please refer to Appendix C to view a sample Deliverable Acceptance Form. Accela respectfully requests prompt attention to the processing of all Deliverable Acceptance Forms, as adherence to this timely process directly impacts the ability to complete the project in the desired timeframe. In order to prevent delays in the project schedule, for all Deliverables where no response time is specifically identified I the SOW, a three (3) business day acceptance period is assumed. Statement of Work  2013 Accela Inc. Page 7  Accela Implementation Methodology – Accela’s successful, proven, implementation methodology is crucial to the project success. Accela’s Automation software and customer base is a niche market and as such the implementation methodology may differ from other consulting firms and software packages. It is imperative to project success that the Agency is willing to adhere/adopt to the Accela Implementation Methodology. PROJECT ASSUMPTIONS  Agency and Accela will review their responsibilities before work begins to ensure that Services can be satisfactorily completed.  Agency shall provide the necessary tools, accounts, and permissions that will enable Accela to access the Agency’s internal network for the purpose of remote installation and testing. This access must be provided through industry standard tools such as Virtual Private Network (VPN). Failure to provide this access in a timely fashion will result in a project delay. Such a delay will result in a Change Order.  Agency agrees during the Initiation Phase of the project to assign a single designated approver for each major project deliverable. The designated approver will be responsible for overseeing and/or directly participating in the design and development, as well as the approval, of the deliverable. Agency may make changes to designated approvers with written notification to Accela a minimum of one month before a deliverable is due.  Agency will provide work space for Accela Services for work completed on Agency premises.  Accela will implement the most current version of Accela Automation at the time of the contract signing.  Agency will maintain primary responsibility for the scheduling of Agency employees and facilities in support of project activities.  Agency will ensure that Accela resources have access to a Dev or Test version of the 3rd party system for interface development. All interfaces will be developed against 1 (one), agreed upon version of the 3rd party system.  Agency will provide/purchase/acquire the appropriate hardware, software and infrastructure assets to support all required Accela software products in both support/testing and production environments as defined in the project schedule.  For use with Accela Citizen Access, Agency will provide/purchase/acquire an online merchant account and all related hardware required by the merchant account provider for the handling of credit cards and/or checks.  Agency is responsible for proper site preparation, hardware, software, and network configuration in accordance with Accela specifications.  Accela will be responsible for implementing a functioning version of the application software at the Agency (assuming the Agency has installed the proper hardware, software, and networking devices).  Accela will provide the Agency with a Weekly Status Report that outlines the tasks completed during the prior week, the upcoming tasks that need to be completed during the following week, the resources needed to complete the tasks, a current version of the project plan, and a listing of any issues that may be placing the project at risk (e.g., issues that may delay the project or jeopardize one or more of the production dates).  Agency will provide Accela with access to test and development environments for each Agency system that requires integration with Accela Automation.  Accela personnel will attend Agency executive steering committee meetings as needed.  Agency is committed to the involvement of key resources and subject matter experts for ongoing participation in all project activities as defined in the project plan associated with this SOW.  The project schedule is managed using Microsoft Project. Should any tasks slip behind schedule ten (10) business days, Accela and Agency will escalate according to the Communication Plan in the Project Charter.  The following Assumptions are specific to deliverables as noted below: o 30 Asset Types o 80 Work Order Template with 80 record types (record types match work order template names. Group = AMS; Type = Department; Subtype = Asset type; Category = WO activity. Statement of Work  2013 Accela Inc. Page 8 o 50 Tasks will be created that can be manually selected by end users at any time but will not be pre- defined with templates o 15 Service Request Record types o 5 asset feature classes setup with up to five attributes per asset with GIS sync - focus is on key utility assets first with GIS. Work will be done remotely. o Provide one key script that associates service requests to work orders. o One week of end user training with 2 days of administrator training. o Up to 20 end users. o Test and acceptance plan will focus on unique test scenarios (eg: service request or work order, not unique work orders or service requests.). Testing support is off-site. o Lead analyst will support Go-live on-site plus off-site prep time. Go-live will be up to 4 consecutive days on-site. o Accela training documentation will be used. o Two users groups assumed with along with an admin user role. o Consoles will focus on providing view to service requests and work order lists. o Report hours will be agreed to with City in how they will best be utilized based on best practice recommendations from Woolpert. o Checklists will be provided prior to install and go-live tasks that City will need to run-through and validate prior to performing on-site work. o Up to 15 days or less assumed on-site for project. o All assets are in the GIS. o o No inventory management assumed. o Landport migration will to bring over both service requests and work order history with six fields. . o Two workflows assumed - a work order standard and a service request standard. o Up to 5 statuses. o Up to 4 inspections assumed with up to ten observations. o Up to 5 PM schedules for up to five assets types. o Cost groups will be used for accessing labor, material and equipment from WO. o Quick queries include Open work orders, reactive work orders, work orders assign to individual, approved work orders. WORK DESCRIPTION The following section describes the specific activities and tasks that will be executed to meet the business objectives and business requirements of the Agency. In support of the implementation effort as described above, Accela will provide the following detailed implementation services. For each deliverable, a description is provided as well as criteria for acceptance of the deliverable. STAGE 1 - INITIATION DELIVERABLE 1: PROJECT INITIATION Project initiation is an opportunity to ensure the project starts in a well-organized, structured fashion while re- confirming the Agency and Accela expectations regarding the implementation. This Deliverable is comprised of project planning activities, core project management documents and templates and the first on-site meeting conducted between the Agency and Accela after the signing of the Statement of Work. In conjunction with the Agency representatives, Accela will perform the following tasks:  Prepare a project plan that addresses the following: Statement of Work  2013 Accela Inc. Page 9 o Finalize staffing for the project teams. Guidelines and recommendations for the Agency project staffing are addressed in the Project Staffing section of this document. o Conduct a formal onsite Kickoff meeting. The objective of this meeting is to review the purpose of the project and discuss the project scope, roles and responsibilities, deliverables, and timeline. o Establish Communication Plan and project logistics including escalation, status reporting, issue/risk management, work locations, etc. o Establish schedule of Steering Committee meetings. o Review and agree on Project Status Report Template format. o Finalize and document formal deliverable signoff procedures, identify team members that will be responsible for signoff from the Agency and Accela. o Review infrastructure requirements and preparation (with designated Agency technical staff). o Finalize an integrated project plan that includes resource allocation for all tasks (in cooperation with the Agency Project Manager). o Create a project SharePoint site and load all standard, current documentation. o Submit a request for information of existing asset and maintenance management practices. The Project Kickoff Meeting includes a formal presentation by the project team to review project objectives, methodology, timeline, roles and responsibilities, risks, and other key project elements with project stakeholders. In terms of specific output, the following will be executed for this deliverable:  Baseline Project Plan (MS Project).  Project Status Report Template (MS Word).  Project Kickoff Presentation (MS PowerPoint).  Project SharePoint Site.  Project Kickoff Meeting. Accela Deliverables:  Pre-kickoff stakeholder phone calls  Steering committee conference call  Draft and final project plan  On-site kickoff meeting  Request for Information Accela Responsibilities:  Provide timely and appropriate responses to Agency’s request for information.  Coordinate project planning activities.  Communicate the Accela Implementation Methodology that will be used by Accela to deliver Services.  Complete Baseline Project Plan, Project Status Report Template, and Project Kickoff Presentation deliverables with input from appropriate Agency resources. Agency Responsibilities:  Identify and set expectations with key resources and subject matter experts for ongoing participation in the project.  Provide timely and appropriate responses to Accela’s requests for project planning input and meeting logistics requests.  Provide meeting facilities for Project Kickoff and other onsite activities.  Include Project Sponsor in Project Kickoff Meeting. Statement of Work  2013 Accela Inc. Page 10 Acceptance Criteria:  Review and acceptance of the Project Status Report Template  Review and acceptance of the Baseline Project Plan  Review and acceptance of the Project Charter  Completion of the Project Kickoff Meeting DELIVERABLE 2: ACCELA AUTOMATION SETUP – CLOUD SUPPORT During the Setup of the Accela Cloud Support step of this project, Accela’s technical staff will work with the Agency IT staff to ensure that the components for hardware, software, database, network, and Internet are in place for Cloud Support Site. Accela technical staff will validate the proper installation and configuration of the Accela Automation environment. This Deliverable is defined as the agency setup in the Cloud environment of the Accela Automation software, such that Agency can log into the system and verify that the software was setup In terms of specific output, the following will be executed for this deliverable:  Setup of Cloud Support of the Accela Automation software.  Demonstration of an operational Accela Automation computing environment. Specifically, Accela will perform the following tasks within the support environment:  Perform a remote system check of the setup.  Demonstrate that the Accela Automation applications are operational in the Agency computing environment.  Configure Accela Automation to use the reporting technology Crystal Reports. Accela Deliverables:  Setup of Cloud Support of the Accela Automation software.  Demonstration of an operational Accela Automation computing environment. Accela Responsibilities:  Provide timely and appropriate responses to Agency’s request for information.  Consult with Agency resources to provide technical input and answer technical questions related to the support setup for Accela Automation. Agency Responsibilities:  Provide timely and appropriate responses to Accela’s requests for information.  Procure and configure necessary hardware, non-Accela systems software, and networking infrastructure as specified by Accela.  Make available the appropriate Agency key IT users to participate in any hardware, software, environment, and infrastructure meetings. Acceptance Criteria:  Confirmation of ability to log into the Accela Automation software that has been setup in the Support Accela Cloud. STAGE 2 – TO-BE ANALYSIS To-Be Analysis is comprised of the activities required to define the Accela Automation Solution Foundation for the Agency. The key output of the process are To-Be Analysis Document(s), which serves as a ‘blueprint’ for design and baseline configuration efforts throughout the implementation project and establishes the benchmarks for testing and acceptance at the conclusion of the project. Statement of Work  2013 Accela Inc. Page 11 The To-Be Analysis Document(s) include detailed information on the Agency’s business processes to be configured in the Accela Automation Solution Foundation, including the following topics:  Organization and departments  Standard Comments  Record Types  Workflow  Inspections  Email Notification  Status Values  Intake Forms  User Defined Fields  Dropdown List Values  Fees  Conditions The To-Be Analysis Sessions and To-Be Analysis Document(s) do not include detailed information related to the following deliverables as they are dependent on the completion of the Solution Foundation milestone.  Deliverable 9: Event Management Scripting Assistance  Deliverable 10: Report Specifications  Deliverable 11: Report development  Deliverable 14: V360 User Experience The Project Team, consisting of representatives from both Accela and the Agency, will conduct a formal review of the To-Be Analysis Documents for the purpose of approval and sign-off on the deliverable. Accela will build prototypes of, which will be used during the review sessions to demonstrate the proposed functionality. Prototyping is intended to demonstrate selected aspects of Accela Automation functionality to assist in understanding how it will operate for the Agency. Accela Deliverables:  Setup of Cloud Support of the Accela Automation software.  Demonstration of an operational Accela Automation computing environment. Accela Responsibilities:  Provide timely and appropriate responses to Agency’s request for information.  Consult with Agency resources to provide technical input and answer technical questions related to the support setup for Accela Automation. Agency Responsibilities:  Provide timely and appropriate responses to Accela’s requests for information.  Procure and configure necessary hardware, non-Accela systems software, and networking infrastructure as specified by Accela.  Make available the appropriate Agency key IT users to participate in any hardware, software, environment, and infrastructure meetings.  Reviewing specific business processes such as the standard procedures for repairing a specific asset is not considered – Accela’s focus is on use of Accela System and asset management best practices, not operational procedures for specific assets.  All workshop preparation activities will be performed remotely  Actual workshops will be administered on-site at City facilities Acceptance Criteria:  Completion of Metrics workshop  Completion of organization-wide workshop  Common service request and work order workflows Statement of Work  2013 Accela Inc. Page 12 DELIVERABLE 3: ENTERPRISE-WIDE WORKSHOP Metrics Workshop Review Prior to discuss details around the asset configuration, in order to develop the To-Be Analysis Document, Accela will review the City’s existing metrics and discuss organization-wide standards. Accela understands that an organization may, or may not, have defined a ‘Current baseline’ of performance measures. Accela recognizes that most entities implementing, or enhancing, a CMMS or EAM are creating or seeking enhanced methods to measure and monitor performance. We understand the importance to align business objectives with what gets done day-to-day, realize asset performance and financial success all while satisfying stakeholder expectations—such as safety assurance, brand reputation, and environmental responsibility. With this in mind, Accela expects a set of new or enhanced ‘Target Measures’ to be established through a ‘Gap Analysis’ process with a focus on defining those that can be monitored within the EAM or CMMS system. By building off of the City’s current asset management approach and developing the above items, the core project team will reach agreement on concrete items that drive the asset management program and the supporting software solution. With senior level management in place for the primary discussions above, Accela may move directly into the Organization-Wide Standards Workshop. Accela will document the results of these workshops within the To-Be Analysis Document(s). Organization-Wide Workshop This task will begin with an organization-wide standards workshop to review and address the following business areas: Key Enterprise Business Decisions  Approaches to managing unique asset IDs.  Standard maintenance types to be used Client-wide (eg: preventative, reactive, corrective and predictive maintenance).  Asset failure codes – where and how they will be used.  Tracking contractor costs.  Tracking work by project.  Managing asset warranties.  Tracking financial account codes.  Discuss and agree on the assets part of the project that work orders Common Enterprise Business Strategies  Work order lifecycle statuses and priorities.  Review key service requests  Expected roles and responsibilities of a maintenance technician (eg: as an organization, we expect our maintenance personnel to log into a computer and record their work electronically, book their labor etc.).  Expected roles and responsibilities of a supervisor (eg: as an organization, we expect the supervisors to review each and every work order each day before closing).  Expected roles and responsibilities for asset data maintenance (eg: asset additions, updates and/or deletions will be managed in the following way). Statement of Work  2013 Accela Inc. Page 13  Managing asset removals and replacements. Common Service Request and Work Order Workflows Accela has found that organizations have both a combination of unique business processes and routine / common workflows. The concept behind this approach involves the 80/20 Rule (or Pareto Principle) that suggests 80% of resources are consumed performing 20% of tasks. This principle indicates that defining 20% of tasks will narrow the focus on the configuration analysis. The standard work order system workflow (standard service request and work orders) will be provided. Accela Deliverables:  Metrics review workshop  Organization-wide workshop  Common workflows Accela Responsibilities:  Provide timely and appropriate responses to Agency’s requests for information.  Interview staff in order to understand existing business processes.  Conduct workshops to capture the key decisions.  Conduct meetings via email, web conference, phone, and in person to gather and validate analysis input. Agency Responsibilities:  Provide timely and appropriate responses to Accela’s requests for information.  Make available the appropriate Agency key users and content experts to provide required information, participate in the configuration analysis and verify the accuracy of the documented workflows, input/output formats, and data elements.  Provide any existing business process documentation, including process flows; fee schedules; commonly used applications, reports and forms; and other relevant information.  Schedule participants and meeting locations for analysis activities. Acceptance Criteria:  Completion of workshops and provided common workflows. DELIVERABLE 4: TO-BE ANALYSIS SESSIONS – ASSETS AND SERVICE REQUEST In order to develop the content for the To-Be Analysis Document(s), Accela will work closely with designated Agency personnel and will conduct analysis sessions to capture the “to-be” required business processes. In conjunction with the Agency representatives, Accela will perform the following tasks:  Review and understand existing business processes intended for migration into Accela Automation (Accela Asset Management and Accela Service Request modules).  Assist the Agency in streamlining existing business processes for fit into Accela Automation.  Collect employee names and associated roles and identify user group setups.  Review the collected document intake requirements, forms, and data fields for each process.  Review the collected document output requirements (documents/letters/reports).  Review required preventative maintenance and/or condition assessment s for potential assets. Statement of Work  2013 Accela Inc. Page 14 Accela’s Project Manager will coordinate and schedule the Analysis Sessions in conjunction with the Agency Project Manager and according to the agreed upon Project Plan. In terms of specific output, the following will be executed for this deliverable:  To-Be Analysis data gathering activities, including workshops, interviews, and web conferencing sessions. Accela Deliverables:  To-Be Analysis data gathering activities, including workshops, interviews, and web conferencing sessions o Two trips anticipated on-site for up to 8 days of analysis and configuration review. Accela Responsibilities:  Provide timely and appropriate responses to Agency’s requests for information.  Interview staff in order to understand existing business processes.  Conduct to-be analysis sessions to capture the required business processes to be automated within the system.  Conduct meetings via email, web conference, phone, and in person to gather and validate analysis input. Agency Responsibilities:  Provide timely and appropriate responses to Accela’s requests for information.  Make available the appropriate Agency key users and content experts to provide required information, participate in the configuration analysis and verify the accuracy of the documented workflows, input/output formats, and data elements.  Provide any existing business process documentation, including process flows; fee schedules; commonly used applications, reports and forms; and other relevant information.  Schedule participants and meeting locations for analysis activities. Acceptance Criteria:  Completion of To-Be Analysis Sessions for the Assets. DELIVERABLE 5: TO-BE ANALYSIS DOCUMENT(S) – ASSETS AND SERVICE REQUEST To-Be Analysis Document(s) will be developed by Accela based on the information gathered in Deliverable 4: To-Be Analysis Sessions – Assets. This document(s) will serve as the ‘blueprint’ for Department processes throughout the implementation project. Upon completion of the document(s), Accela will conduct a formal review with Agency for the purpose of approval and sign-off on the deliverable. In terms of specific output, the following will be executed for this deliverable:  To-Be Analysis Document(s) (Adobe PDF). Accela Deliverables:  To-Be Analysis Document Accela Responsibilities:  Provide timely and appropriate responses to Agency’s requests for information.  Interview staff as necessary in order to understand existing business processes.  Build selected prototypes to demonstrate proposed functionality.  Conduct meetings via email, web conference, phone, and in person to gather and validate analysis input. Statement of Work  2013 Accela Inc. Page 15  Prepare and complete To-Be Analysis Document(s) capturing the Agency’s business processes to be included in the Solution Foundation.  Completion and successful demonstration of 2 prototypes to demonstrate proposed process functionality Agency Responsibilities:  Provide timely and appropriate responses to Accela’s requests for information.  Schedule participants and meeting locations for To-Be Analysis Document(s) review activities.  Review and provide feedback on To-Be Analysis Document(s). Acceptance Criteria:  Successful demonstration of prototypes.  Review To-Be Analysis Document(s) and validate that the content accurately reflects the business processes data that will be included in the Accela Automation Solution Foundation. STAGE 3 – SOLUTION FOUNDATION Accela will provide professional services to develop the Accela Automation Solution Foundation in accordance with requirements established and agreed upon during the execution of the tasks that comprise Stage 2 – To-Be Analysis. Accela will produce a detailed, technical Solution Foundation Document(s) that represents the entire foundation of the system, for each module. This document will be delivered for review with the completed solution. DELIVERABLE 6: ACCELA AUTOMATION SOLUTION FOUNDATION – ASSETS AND SERVICE REQUEST Accela will provide professional services to develop the Solution Foundation of the Accela Automation product in accordance with requirements established and documented in Deliverable 05: To-Be Analysis Document(s). In terms of specific output, the following will be executed for this deliverable:  Completed Configuration to support the To-Be Business Processes Accela Deliverables:  Completed Configuration  Webex to review results of configuration Accela Responsibilities:  Provide timely and appropriate responses to Agency’s requests for information.  Configure the foundational components as defined in the To-Be Analysis Document(s). Agency Responsibilities  Provide timely and appropriate responses to Accela’s requests for information.  Make available the appropriate Agency key users and content experts to participate in creating the system in an effort to learn about the system.  Work with Accela to verify that the system meets the foundational requirements documented in the To-Be Analysis Document(s).  The Agency will test the system for purposes of validating the configuration. Acceptance Criteria: Review and approve that the Accela Automation Solution Foundation meets the requirements documented in the approved To-Be Analysis Document(s). Statement of Work  2013 Accela Inc. Page 16 STAGE 4 – BUILD The Build stage includes data conversions, development of interfaces, development of Accela Event Manager Scripts and custom report development. It comprises all of the additional critical activities outside of solution foundation that has been configured for the Agency. Similar to the Configuration Stage, it is critical that appropriate agency representatives are involved in each step of the process to ensure success. Data conversion of historic/legacy data from Agency systems is a critical activity for the success of this project. The Accela team is highly experienced in planning for and executing these activities and will work closely with Agency staff to ensure a successful transition of data. Specifically, the Accela team will work with Agency to understand the data sources, how they are used, where their data will be stored in Accela Automation and the quality of that data. Often multiple sources store and manage similar information and decisions need to be made about the authoritative source. It is also common to find that data sources have not had strong controls and the accuracy is questionable or there is missing data. There are techniques and tools that Accela may recommend to understand the current state of Agency data so that decisions can be made about data quality and what to convert. Upon completion of the data analysis, mapping of historical/legacy data sources may begin with Accela’s mapping tool and conversion iterations performed as outlined in the Project Plan. Accela provides release notes during these conversion tests to verify data is being transferred correctly (e.g., number of records and expected values in fields). Accela will lead the conversion effort and specifically assist in the following areas: data mapping, script development for conversion, assistance in data testing and validation, and with the planning and execution of the final data conversion. For conversions, it is expected and anticipated that the Agency will provide resources knowledgeable with the historical data to assist in the data migration/conversion effort. The required data mapping effort will be a conducted by Accela personnel with assistance from the Agency. Once the data mapping has been defined, Accela will ask that a representative of the Agency sign off on the data maps. Accela will be responsible for the data conversion programs to load data from the staging tables to the Accela Automation database. PLEASE REFER TO APPENDIX B FOR SPECIFIC ASSUMPTIONS AND PARAMETERS RELATED TO ACCELA ’S CONVERSION APPROACH. DELIVERABLE 7: HISTORICAL DATA CONVERSION ANALYSIS Upon receipt of Agency’s Landport data, Accela will create a Data Conversion Mapping Document detailing the data conversion process, mutually agreed upon requirements and mapping of Agency’s historical data into Accela Automation. In terms of specific output, the following will be executed for this deliverable:  Landport Historical Data Conversion Specifications Accela Deliverables:  Data conversion specification Accela Responsibilities:  Work with the Agency to define and document historical data elements that are required for the conversion.  Facilitate the data analysis and mapping process  Complete the Data Conversion Specifications Document. Agency Responsibilities:  Provide historical data in acceptable formats. Statement of Work  2013 Accela Inc. Page 17  Provide subject matter experts on the data source to aid Accela in identifying key components of the historical data  Provide subject matter experts on the historical configuration to aid in the data mapping process  Review and sign-off on completed Data Conversion Specifications document. Acceptance Criteria:  The Historical Data Conversion Specifications document identifies historical data elements that will be converted into Accela Automation as well as document special consideration (ex. merging data sources, phasing, etc.) Acceptance Review Period:  Ten (5) business days total DELIVERABLE 8: HISTORICAL DATA CONVERSION DEVELOPMENT Upon Agency approval of the Historical Data Conversion Specifications document, (Deliverable 7), Accela will provide a program(s) to migrate appropriate historical data into Accela Automation. Upon receipt of the conversion from Accela, the Agency DBA will load the data into the Support Cloud environment for validation. In terms of specific output, the following will be executed for this deliverable:  Migrated historical data into Accela Automation Support Cloud database environment. Accela Deliverables:  Data conversion Accela Responsibilities:  Provide a program to migrate historical data into the Agency’s AA test database environment.  Each data conversion will include up to three (3) conversion loads for client testing o Load 1 will include Composition to Record Type Mappings, Addresses, Work Description, Summary Costs, Status, and Inspections o Load 2 will include Screen Data Mapped to ASI or ASIT and all other data in Load 1. o Load 3 will include all data in Load 2 plus any mapping adjustments.  Validate the successful completion of the migration of historical data into the Accela Support Cloud. Agency Responsibilities:  Providing the legacy data source in an accepted format  Assist in the execution of the data conversion program and provide access to environments as needed  Provide resources to validate the conversion statistics and the quality of the data converted into Accela Automation Acceptance Criteria:  Historical data has been converted to Accela Automation testing environment according to the Data Conversion Mapping document. Acceptance Review Period:  Ten (5) business days total Statement of Work  2013 Accela Inc. Page 18 DELIVERABLE 9: EVENT MANAGEMENT SCRIPTING ASSISTANCE During the configuration analysis phase of the implementation project, Accela will identify opportunities to supplement the Accela Automation base functionality via Event Manager Script Engine (EMSE) script development. Accela will work with key Agency project stakeholders to identify the business rules/processes to be automated. Accela will work with Agency to identify desired EMSE functionality, and subsequently will help prioritize the scripting needs to determine which scripts will be developed by Accela, and which scripts can be developed by the Agency. The scripts developed by Accela can be used as models whereby agency staff can develop and modify additional EMSE scripts as needed. Accela will provide up to 16 hours of scripting assistance. Representative examples of business processes that could be automated by a script listed below. Note that the below list is an example list only and not a list of the actual script(s) that will be developed for the project.  Service request to work order script Prior to the development of a script, the Agency will approve a design specification document that will be created jointly by the Agency and Accela. The approved document will be used as a basis for determining completion and approval of the deliverable. In terms of specific output, the following will be executed for this deliverable:  EMSE script specifications for scripts to be developed by Accela (MS Excel/Word).  Demonstrated operability of scripts in staging/test environment per the design document specifications. Accela Deliverables:  EMSE script specifications for scripts to be developed by Accela (MS Excel/Word).  Demonstrated operability of scripts in staging/test environment per the design document specifications. Accela Responsibilities:  Work with Agency staff to identify potential uses of EMSE scripting.  Assist with development of list of desired EMSE functionality.  Aid the Agency in prioritizing which scripts will be developed by Accela.  Develop EMSE scripts based on the specifications.  Demonstrate functionality of scripts per specifications.  Provide 16 hours of Scripting Assistance. Agency Responsibilities:  Allocate the time for qualified business and technical experts for the script requirements sessions that are critical to the project success.  Identify resources that will learn EMSE scripting tolls and approaches for ongoing maintenance.  Prioritize desired EMSE functionality to determine which scripts Accela will develop.  Provide timely and appropriate responses to Accela’s request for information.  Verify the Event Script Specification meets the intended business requirement.  Allocate the time for qualified personnel to test the script for acceptance.  Ensure that the data populates successfully according to the script requirements document. Acceptance Criteria:  Review and acceptance of design document with written sign-off from the Agency.  Demonstrate a developed script within the system. Statement of Work  2013 Accela Inc. Page 19 Reports Reports are defined as anything that can be printed from the system, including but not limited to, reports, forms, documents, notices, and letters that the Agency wishes to print as identified during configuration analysis. The Configuration Document will define the reports and documents that are required by the Agency to effectively use Accela Automation. These reports will be broken down by level of effort and identified in the configuration document. It is expected that, after the appropriate training on the database and the selected report writing tool is completed, Agency personnel will be able to handle additional and future report requirements. Reports are classified by level of effort: high, medium, and low. High is defined as a report containing significant calculation and/or extensive detail and number of fields – for example a financial statistical report or complex permit. The majority of reports require a ‘medium’ level of effort, which is defined as a report displaying non-calculated and minimal calculated data fields. Reports with a low level of effort are typically letters or notices that contain contact information and basic application data. These reports can be developed using the integral Accela Report Writer included with Accela Automation or Crystal Reports XI Server at the Agency’s discretion. These custom reports, whether developed with Accela Report Writer or Crystal Reports, will be deployed in the Report Manager for use within Accela Automation. DELIVERABLE 10: REPORT SPECIFICATIONS Accela will develop documents/letters/reports from those identified by the Agency as required for the new system. Accela and Agency have agreed that Accela will develop reports based on the following breakdown:  5 of Medium Complexity  5 of Low Complexity Prior to the development of a report the Agency will approve report design specification documents that will be created jointly by the Agency and Accela. The approved documents will be used as a basis for determining completion and approval of the reports. Development of each report cannot begin until agreement on each specification is complete. A proven strategy that combines the use of the Accela Automation Quick Queries, custom reports developed by Accela that include run-time parameters to allow similar reports to be combined, and the development of other reports by the Agency after training, can ensure that all required reporting requirements are met. In terms of specific output, the following will be executed for this deliverable:  List of identified reports that Accela will develop  Report Specifications Documents for each of the identified reports Accela Deliverables:  List of identified reports that Accela will develop  Report Specifications Documents for each of the identified reports Accela Responsibilities:  Assist in determining level of effort for reports to assist with prioritization.  Develop report specifications. Agency Responsibilities:  Provide timely and appropriate responses to Accela’s request for information.  Make available the appropriate key users and content experts to participate in the report specification. Statement of Work  2013 Accela Inc. Page 20  Provide information and data in the formats specified by Accela that will be needed for agreement on the Deliverable. Acceptance Criteria:  Agreement on prioritized list of reports that will be developed by Accela.  Review and approval of individual Report Specifications documents. The Agency will not unreasonably withhold acceptance if the Agency requests changes to the reports specifications after the initial signoff of the specification by the Agency.  Agency will have 5 business days to review the Report Specification Documents. If no changes or comments are requested within the 10 days, the Report Specification Documents are considered approved by the Agency. DELIVERABLE 11: REPORT DEVELOPMENT Accela will develop custom documents/letters/reports per the specifications developed and approved in Deliverable 10, Report Development. Changes to the report specifications after approval can negatively impact project progress and the overall schedule. Therefore, changes to the report specifications after approval requires an analysis by Accela to determine the level of effort required, and if a change order would be required to complete the work. In terms of specific output, the following will be executed for this deliverable:  A total of 10 documents/letters/custom reports per the Report Specification Documents Accela Deliverables:  A total of 10 documents/letters/custom reports per the Report Specification Documents Accela Responsibilities:  A total of 10 documents/letters/custom reports per the Report Specification Documents  Provide timely and appropriate responses to Agency’s request for information.  Develop reports per specifications.  Assist in the validation of the reports in test environment. Acceptance Criteria:  Confirmation of report accuracy in test environment per Report Specifications. DELIVERABLE 12: ACCELA GIS CONFIGURATION Accela will install and configure Accela GIS to link and leverage existing Agency GIS information, including assistance with establishing the map service to be used in conjunction with Accela GIS. The following are the main objectives being pursued through the implementation of the Accela GIS:  Auto-populate spatial attributes for a property in forms up to 20 fields from GIS to Automation for 5 assets. During GIS installation, Accela’s technical staff will work with Agency IT staff to ensure that the components for hardware, software, database, network, and Internet are in place for the Accela GIS test and production environments. Accela technical staff will validate the proper installation and configuration of the Accela GIS environment. In terms of specific output, the following will be executed for this deliverable:  Accela GIS installed on Agency server(s).  Demonstration of operational system. Statement of Work  2013 Accela Inc. Page 21  Up to 20 field Attribute Mapping(s)  5 assets Accela Deliverables:  Accela GIS installed on Agency server(s).  Demonstration of operational system.  Up to 20 field Attribute Mapping(s) for 5 assets Accela Responsibilities:  Install Accela software and perform quality assurance checks on the configuration and performance based on acceptance criteria mutually developed by Accela and the Agency.  Demonstrate that the Accela GIS applications are operational in the Agency computing environment thus communicating with the Accela Automation system. Agency Responsibilities:  Arrange for the availability of appropriate staff for the system installation, setup, testing, and quality assurance throughout the setup process.  Order and procure necessary hardware, non-Accela systems software, and networking infrastructure as specified by Accela.  Provide people and physical resources based on the dates outlined in the project schedule.  Prepare the hardware, software, and network in accordance with the specifications provided by Accela.  Provide Accela with network access for remote installation and testing.  Provide information and data in the formats specified by Accela that will be needed for the GIS implementation. Acceptance Criteria:  Demonstration of operating Accela GIS in test environment. DELIVERABLE 13: ACCELA MOBILE OFFICE CONFIGURATION Accela will configure the Accela Mobile Office application. As part of this deliverable Accela will perform the configuration tasks required to ensure Accela Mobile Office interfaces with Accela Automation in both a test and production environment. Using Accela Mobile Office, work orders can be executed in the field: Analysis activities with the Agency will result in a Mobile Office Configuration Specifications Document. Subsequently, Accela’s staff will extend base configuration of Accela Mobile Office per the Mobile Office Configuration Specifications Document. In terms of specific output, the following will be executed for this deliverable:  Accela Mobile Office Configuration Specifications Document (MS Word)  Demonstration of operational system per Accela Mobile Office Configuration Specifications document Accela Deliverable:  Accela Mobile Office Configuration Specifications Document (MS Word)  Demonstration of operational system per Accela Mobile Office Configuration Specifications document Accela Responsibilities:  Create configuration specifications for Accela Mobile Office based on analysis with the Agency. Statement of Work  2013 Accela Inc. Page 22  Configure Accela Mobile Office based on approved specifications document off-site. Acceptance Criteria:  The base configuration of Accela Mobile Office in the Test environment is configured as documented in the Accela Mobile Office Configuration Specifications document. Acceptance Review Period:  Ten (5) business days total DELIVERABLE 14: V360 USER EXPERIENCE V360 User Experience is comprised of the fine-tuning of the User Interface (“look and feel”) of the system, usability and security. This portion is completed prior to User Acceptance Testing to provide a more refined view of the system and assistance with system acceptance for new users. Accela will use the completed configuration and standard, best practice V360 User Interface as a starting point for analysis and documentation of desired look and feel of Accela Automation V360 user interface. In conjunction with the Agency representatives, Accela will perform the following tasks:  Review and update the required portlets for each major user group.  Review and update the required fields, field order and field names of each major portlet.  Provide recommendations and seek input on required Quick Queries in order to define a default list.  Provide recommendations and seek input on required Smart Charts (Dashboards) in order to define a default list. Accela will use the V360 User Console configuration document template, and the appropriate content within that document to capture the Agency’s desired V360 User Experience to be configured. Accela’s Project Manager will coordinate the compilation of the information collected during the Analysis into the document, including detailed settings related to the following topics:  User Consoles  Form Filters  ASI Form Layout  APO Template Form Layout  Quick Queries  Smart Charts  My Navigation  Go To Menu’s  Data Filters  Security The Project Team, consisting of representatives from both Accela and the Agency, will conduct a formal review of the document for the purpose of approval and sign-off on the deliverable. Accela will configure the application to meet the requirements of the document upon approval In terms of specific output, the following will be executed for this deliverable:  Provide 2 days of Workshops and assistance in the setup of V360 User Interface Accela Responsibilities:  Provide 2 days of Workshops and assistance to the Agency. Agency Responsibilities:  Provide timely and appropriate responses to Accela’s request for information.  Make available the appropriate Agency key users and content experts to participate in the user experience analysis and verify the accuracy of the documented user experience elements. Statement of Work  2013 Accela Inc. Page 23  Schedule participants and meeting locations for analysis activities. Acceptance Criteria:  Provide 2 days of Workshops and assistance to the Agency. STAGE 5 – READINESS DELIVERABLE 15: ADMINISTRATIVE AND TECHNICAL TRAINING Accela will provide training for Agency staff that focuses on the administration, maintenance, and augmentation of its Accela Automation configuration. Our aim at Accela is to educate Agency resources on all aspects of Accela Automation in an effort to ensure the Agency is self-sufficient. This allows the Agency to best react to changing requirements and ongoing maintenance, which can allow the Agency to be reactive and significantly reduce system maintenance costs over time. In addition to a comprehensive administrator training course that spans three days, Accela will also train Agency users on the administration and use of the system. Specifically, the following courses can be selected from the twenty-three days of training being provided to the agency to the Agency. (NOTE – This is a list of all Administrative Training and the agency can choose at their discretion which training is required). At a Minimum the follow training sessions must be delivered to the agency Three-Day Accela Automation Administrator, One-day EMSE, and One-day Report Workshop. The total of required Administrative training courses is 5 days.  Accela Automation Administrator Training,  Accela Mobile Office Training,  Accela GIS Training. In terms of specific output, the following will be executed for this deliverable:  One-day Accela Overview Training course,  Three-day Accela Automation Administrator Training course,  Half-day (4 hours) Mobile Office Administrator Training course,  Half-day (4 hours) Accela GIS Technical Training course Accela Responsibilities:  Coordinate with the Agency to define training schedule and logistics.  Deliver training per the specific requirements listed above. Agency Responsibilities:  Select and prepare the power-users who will be participating in the training and subsequently training end users.  Arrange the time and qualified people for the training who are critical to the project success.  Provide suitable Agency facilities to accommodate various training classes.  Ensure that users are proficient in using PC’s in a Windows environment as a prerequisite for the course.  Ensure that users are familiar with use of standard Internet browsers as a prerequisite for the course. Acceptance Criteria:  Execution of 6 days of listed training courses, the agency has 5 required days and 1 floating day that can be used at the discretion of the agency. Statement of Work  2013 Accela Inc. Page 24 DELIVERABLE 16: USER ACCEPTANCE TESTING (UAT) ASSETS This deliverable is comprised of the assistance Accela will provide to allow the Agency to accept that the solution meets the requirements as documented in all the deliverables. Accela will assist the Agency in the testing and validation of the solution and its readiness to be migrated to production for active use and will assist in transferring the solution and any required data from Support to Production. Accela will provide of support for training, oversight, answering questions and addressing issues discovered in User Acceptance Testing. It should be noted that it is critical that the Agency devote ample time and resources to his effort to ensure that the system is operating per signed specifications and ready for the move to production. The testing effort will require a significant time investment by the Agency, and coordination of resources is critical. At this point in the implementation process, the Agency should test individual components of functionality of the solution (i.e., functional and/or unit testing), and also test to ensure that the interrelated parts of the Accela Automation solution are operating properly (i.e., integration testing). Accela will provide assistance to the Agency as needed by providing User Acceptance Testing (UAT) support and facilitating completion of UAT. Accela will address and rectify issues discovered during the UAT process as Agency staff executes testing activities. Accela will work with the Agency to develop a test plan and deliver sample test scripts, as well as an issue log to track the progress of testing. It should be noted that Accela will plan for a total of 1 month to complete this deliverable. If the Agency does not devote adequate time and staffing to UAT in order to completely test the solution, Accela may opt to postpone go-live at the Agency’s expense. Accela will work diligently with Agency to ensure this does not occur and provide several opportunities for the Agency to add additional staff and time to this effort before recommending a postponement or delay. In terms of specific output, the following will be executed for this deliverable:  Resolution of configuration issues resulting from Agency End User Testing.  Fully-tested system that is ready to move to a production environment. Accela Deliverables:  Resolution of configuration issues resulting from Agency End User Testing.  Fully-tested system that is ready to move to a production environment. Accela Responsibilities:  Provide recommendations on testing strategy and best practices.  Lead the Agency in up to 1 month of User Acceptance testing effort and the validation of the system configuration and its readiness to be migrated to production for active use.  Resolution of issues as a result of User Acceptance Testing activities. Agency Responsibilities:  Provide timely and appropriate responses to Accela’s request for information.  Make available the appropriate Agency key users and content experts to participate in user acceptance testing as defined and managed by Agency.  Develop the User Acceptance test scripts.  Utilize the use cases documented in each Configuration Document Deliverable as the basis for the acceptance of this Deliverable. Statement of Work  2013 Accela Inc. Page 25 Acceptance Criteria: Completion of up to 1.5 weeks of UAT Support or 60 hours DELIVERABLE 17: DAILY USER TRAINING This Deliverable includes the Delivery by Accela to Agency of 6 Days of the Daily User Training course (3 days onsite). Accela best practices have proven that class sizes no larger than 14 participants are more successful with students who meet the pre-requisites of the course. The Accela Trainer has the right to modify the class size to ensure successful instruction with Agency agreement. End User Training should be coupled with the Agency delivering supplementary user training to its staff using the core Use Cases documented in each System Configuration Document. Accela recommends that Agency adopt the “80/20 rule” for training, focusing the majority of their training on the 80% of what the Agency normally does operationally. The recommended supplementary training conducted by the Agency can utilize business experts from each area to train on all aspects of their configuration. Accela will deliver current training documentation in a format that can be used to customize the documentation. Documents delivered by Accela to the Agency will be valid for the release that the Agency is trained. Documents delivered by Accela may not be shared with any other agency or Company per the Non-Disclosure Agreement. In terms of specific output, the following will be executed for this deliverable:  5 Days of Daily User Training. Accela Deliverables:  Up to one week of training Accela Responsibilities:  Coordinate with the Agency to define training schedule and logistics.  Provide 5 days of Daily User Training. Agency Responsibilities:  Select and prepare the power-users who will be participating in the training and subsequently training end users.  Arrange the time and qualified people for the training who are critical to the project success.  Provide suitable Agency facilities to accommodate various training classes.  Ensure that users are proficient in using PC’s in a Windows environment as a prerequisite for the course.  Ensure that users are familiar with use of standard Internet browsers as a prerequisite for the course.  Develop any specific custom training material to support unique workflows. Acceptance Criteria:  Execution of 6 days of the End User Training course to the Agency. STAGE 6 - DEPLOY DELIVERABLE 18: PRODUCTION SUPPORT – ASSETS Production date is defined as the official date in which Accela Automation moves from the test environment to production for daily Agency usage. This date will be agreed to by both Accela and the Agency at project inception. It may be altered only by change order agreed to by both parties. In the weeks prior to moving to Production, Accela will Statement of Work  2013 Accela Inc. Page 26 assist in final data conversions, system validation, staff preparation assistance and training, and coordination of deployment. In terms of specific output, the following will be executed for this deliverable:  Deployment support prior to moving to Production.  Accela Automation used in production environment for Agency daily use. Accela Deliverables:  Deployment support prior to moving to Production.  Accela Automation used in production environment for Agency daily use. Accela Responsibilities:  Provide on-site resources to support the move to Production effort.  With assistance from the Agency, lead the effort to transfer the system configuration and any required data from Support to Production.  Assist in the development of a Pre-Production checklist that details the critical tasks that must be accomplished prior to moving to Production. Agency Responsibilities:  Provide technical and functional user support for pre and post Production Planning, execution, and monitoring.  Provide timely and appropriate responses to Accela’s request for information.  Assist in the development of a Pre-Production checklist that details the critical tasks that must be accomplished prior to moving to Production.  Make available the appropriate Agency key users and content experts to participate in user acceptance testing as defined and managed by Agency. Acceptance Criteria:  Deployment support prior to moving to Production.  Production system is first used by the Agency for daily use. DELIVERABLE 19: POST DEPLOYMENT SUPPORT AND TRANSITION TO CRC This deliverable is comprised of the post- Production support assistance that Accela will provide to address issues and provide consultative advice immediately following the move to Production for daily use. Accela will provide support for 1 week immediately following deployment (go-live) of phase 1. At the end of the support period, a formal meeting will be scheduled with the Agency, Accela Services Team, and Accela CRC for the purpose of transitioning support of the Agency to Accela CRC. Accela will work with the Agency to identify and address issues identified during this period using a Post Production Issues List. This list will be comprised of issues related to the defined deliverables listed in this SOW, which will be addressed by Accela, as well as any other issues which will be addressed by the Agency. Examples of issues the Agency is responsible for include training issues, functional changes beyond the scope of this Statement of Work, cosmetic changes, and procedures related to the use of Accela Automation. Specifically, Accela will not be developing or creating additional reports, conversions, records types and workflow processes that were not included in the scope of this project. In terms of specific output, the following will be executed for this deliverable: Statement of Work  2013 Accela Inc. Page 27  Transition of Agency from Services team to Customer Resource Center for ongoing support. Accela Deliverables:  Transition of Agency from Services team to Customer Resource Center for ongoing support. Accela Responsibilities:  Provide post-production support for Accela developed configuration and components.  Assist with the identification of issues for the Post Production Issues List.  Assist with issues that may arise related to the deliverables in this SOW.  Transfer ongoing support of the client and to the CRC to address any post Production issues that require remediation. Agency Responsibilities:  Provide technical and functional user support for post-production support and monitoring.  Develop and maintain a Post Production Issues List.  Provide timely and appropriate responses to Accela’s request for information.  Make available the appropriate Agency key users and content experts to participate in user acceptance testing as defined and managed by Agency. Acceptance Criteria:  Execution of 1 weeks of post-Production support phase 1.  Official transfer from the Accela Services project team to the Customer Resource Center (CRC). PROJECT RESOURCES AND LOCATION OF WORK WORK LOCATION Services contracted under this SOW may be performed remotely and/or at the Agency’s on-site facilities as deemed appropriate and reasonable for the successful completion of the Services detailed herein. AGENCY RESOURCES Agency must fill the appropriate roles with the appropriate personnel to work together with the Accela Engagement Team for these Services and that Agency will make available additional resources as needed for the Services to be successful. Agency roles can be filled by the same person. In addition, Agency will provide all necessary technical resources to make appropriate modifications within any Agency systems wishing to integrate with any Accela systems. These resources must be proficient in Agency coding/development environment and tools, to make the required changes to their software to enable integration and must be available during the timeframe of these Services. Agency roles include Sponsor, Project Manager, Technology Manager, and Business Lead(s) for each Division/department being implemented, Super User trainers, and others as appropriate. Agency Resources Description Project Sponsor Responsibilities include:  Ultimate responsibility for the success of the project,  Creating an environment that promotes project buy-in,  Driving the project through all levels of the agency, Statement of Work  2013 Accela Inc. Page 28  High-level oversight throughout the duration of the project,  Serving as the primary escalation point to address project issues in a timely manner. Project Manager Responsibilities include:  Overall administration, coordination, communication, and decision- making associated with the implementation;  Planning, scheduling, coordinating and tracking the implementation with Accela and across departments within the agency;  Ensuring that the project team stays focused, tasks are completed on schedule, and that the project stays on track. Division/Departmental Busines s Leads A user representative for each affected department must be appointed to facilitate analysis and configuration and serve as a decision-making entity for that group. These critical appointments may well determine the success of the implementation for their respective areas. Responsibilities include:  Attending requirements workshop sessions;  Willing and able to gather data and make decisions about business processes;  Assist in the creation of specifications for reports, interfaces & conversions  Review and test the system configuration;  Participating in the implementation of the Accela Automation solution. Division/Departmental Subject Matter Expert (SME) Responsibilities include:  Being trained on the Accela Automation system at a System Administration level;  Being fully engaged in the Business Analysis and system configuration activities;  Assist internal efforts towards the creation of reports, interfaces & conversions;  Assist in the review and testing of the system configuration;  Actively participate in the full implementation of the Accela Automation solution. Technical Lead Responsibilities include:  Primary responsibility for the technical environment during the software implementation;  Ensure that servers, databases, network, desktops, printers, are available for system implementation and meet minimum standards;  Work with Accela technical personnel during implementation;  Maintain test and production databases;  Perform day-to-day maintenance of the system and install maintenance releases; Statement of Work  2013 Accela Inc. Page 29  Act as the primary technical resource for troubleshooting problems;  ·Establish and maintain backup, archival, and other customary maintenance and housekeeping activities. ACCELA RESOURCES Accela will assign key Professional Services resources for this engagement with Agency. These individuals are well versed in the Accela Automation application, and are well qualified to lead this effort. Accela’s Project Manager shall assume full responsibility for the coordination of this team and its interaction with key Agency resources assigned to the effort. The main roles are as follows: Accela Resources Description Project Executive The Project Executive oversees the project’s progress/direction and works with the Project Manager to ensure efficiency, consistency and quality in delivery of Accela implementations. The Project Executive actively participates in a project director/executive role. The Project Executive will meet with Agency Executives monthly or upon request throughout the duration of the project. Project Manager The Accela Project Manager is responsible for the overall project management and works directly with the client throughout all aspects of Accela implementations: from the initial scoping, planning, staffing to delivery. The Project Manager undertakes the project administration tasks including:  Project plan management,  Change order management,  Issue log management and escalation,  Status reporting,  Project workspace management,  Resources management,  Work plan management,  Meetings management,  Project review with Project Executive. In addition, the Project Manager will actively participate in leading the System Configuration Analysis sessions and will be responsible for the creation of the System Configuration Document. Senior Implementation Consultant The Senior Implementation Consultant assigned to the project will have major experience in the business process as well as the product functionality and is responsible for:  Business analysis activities: Mapping the client’s business processes and requirements to the functionality of Accela’s products and the creation of solution design,  Leading system configuration activities,  Providing training/mentoring to agency staff, Statement of Work  2013 Accela Inc. Page 30  Recommend industry best practices to agency to enhance business processes,  Guide agency on how best to configure the system based on past experiences and software expertise. Implementation Consultant Implementation Consultant resources support the project and typically focus on the flowing tasks.  The configuration of the system to match the System Configuration document.  Build activities within the project, such as conversion data mapping, creation of reports and interface specification. Technical Consultant Accela Technical Consultants are involved in all areas that require knowledge of server-side considerations and Accela add-on products such as:  Application installation and setup (Accela Automation, Accela GIS, Accela Wireless, and Accela Citizen Access),  Report definition and creation,  Event Manager Script definition and programming,  Database Conversions and data mapping assistance,  Interface specifications and development. Training Consultant Training Consultants are responsible for Accela Training classes with assistance from Implementation consultants, depending on the nature of the specific project. Statement of Work  2013 Accela Inc. Page 31 PAYMENT TERMS PAYMENT SCHEDULE: Accela will perform the Services on a monthly payment basis based on: the nature and scope of the Services and associated Deliverables outlined herein, the expected staffing requirements, project schedule, Accela’s and Customer’s roles and responsibilities and the other assumptions set forth in this SOW. Accela’s total price to perform the Services and provide the Deliverables described is $158,400.00 exclusive of taxes and expenses. The pricing is based on the information available at the time of signing and the assumptions, dependencies and constraints, and roles and responsibilities of the Parties, as stated in this SOW. Invoices will be sent on the monthly anniversary of the contract signing until the contracted amount has been met. EXPENSES: Actual amounts of any reasonable and customary travel expenses incurred during the performance of services under this SOW will be billed to Agency, according to Accela expense policy. Accela will bill Customer for actual expenses incurred for travel and lodging/living, as well as other approved out-of-pocket expenses (such as mileage, parking, tolls and telecommunications charges). Accela will work with Customer to manage and control its expenses in Payment Amount Payment Date Progress Payment 1 $12,320.00 Upon Contract Signing Progress Payment 2 $14,080.00 1 Month after kickoff Progress Payment 3 $14,080.00 2 Months after kick-off Progress Payment 4 $14,080.00 3 Months after kick-off Progress Payment 5 $14,080.00 4 Months after kick-off Progress Payment 6 $14,080.00 5 Months after kick-off Progress Payment 7 $14,080.00 6 Months after kick-off Progress Payment 8 $14,080.00 7 Months after kick-off Progress Payment 9 $12,320.00 Upon Project Completion Sub-Total Services $123,200.00 Payment Amount Payment Date Project Management Payment 1 $3,911.12 1 Month after kickoff Project Management Payment 2 $3,911.11 2 Month after kickoff Project Management Payment 3 $3,911.11 3 Months after kick-off Project Management Payment 4 $3,911.11 4 Months after kick-off Project Management Payment 5 $3,911.11 5 Months after kick-off Project Management Payment 6 $3,911.11 6 Months after kick-off Project Management Payment 7 $3,911.11 7 Months after kick-off Project Management Payment 8 $3,911.11 8 Months after kick-off Project Management Payment 9 $3,911.11 Upon Project Completion Sub-Total Project Management $35,200.00 TOTAL $158,400.00 Statement of Work  2013 Accela Inc. Page 32 accordance with Accela’s global travel policy guidelines and will not incur expenses in excess of the initial contracted budget below without Customer’s prior written consent. Expense receipts will accompany invoices. Total estimated expenses are based on past Accela engagement experience. The assumption is that there will only need to be 10 onsite trips at an estimated travel expense budget not to exceed $20,000.00. Should the customer require more onsite trips than the assumption above, a Change Order will be required prior to additional travel commencing to cover the cost of those additional trips. CONTRACT SUM: The total amount payable under this Agreement is therefore up to a maximum of $178,400.00 including travel expenses. The estimated fees for this SOW are predicated on the timely completion of project milestones. However, should completion of milestones slip due to actions of Agency, and should this slippage result in material effort to Accela in excess of the hours provided for in this document, Accela will produce a change order at a rate of $158/hr. for additional hours in support of the scope and deliverables contained herein. Any change order will need to be approved by both Agency and Accela. ACCEPTANCE The Services contracted for in this Statement of Work will be considered Accepted when all Deliverables defined in the Work Description Section have been accepted by Agency as defined for each Deliverable. Additionally, transition to Accela’s Customer Service Center, CRC has been completed. The live system has been handed over to the CRC and the transfer of knowledge from the Project Team to the CRC has also been completed. All training has concluded and project documentation has been handed over to the CRC. TERMS The pricing and terms of this proposal are valid until June 30, 2014. If this Statement of Work is accepted after this date all pricing and terms may not be valid. Statement of Work  2013 Accela Inc. Page 33 APPENDIX A - ACCELA IMPLEMENTATION METHODOLOGY Accela will deliver its Services to the Agency by employing the methodology detailed in this section. This is a proven methodology that guides the project from inception to deployment, thereby increasing the chances of successfully implementing Accela software products. Project delivery through execution of this Implementation Life Cycle is described below. IMPLEMENTATION LIFE CYCLE Thorough execution of these six stages ensures that Accela customers receive high-quality services throughout the project engagement. Figure 1 - Accela Methodology As illustrated in the figure above, the stages of project delivery flow in linear direction, although many tasks run in parallel as appropriate to avoid unnecessary project delays. Each stage has pre-defined objectives, tasks and associated deliverables. Depending on the exact scope of the project, a full complement or subset of all available deliverables will be delivered through the services defined for the project. Employing this deliverables-based approach ensures that Accela and the Agency understand the composition and ‘downstream’ impact of each project deliverable to ensure the project is delivered with quality and in a timely manner. INITIATION Initiation represents the first stage in the lifecycle. During the Initiation stage, project contracts and the SOW are finalized, project scope and objectives are reviewed, and project planning activities and deliverables are completed. In terms of specific deliverables, common output from the Initiation Phase is as follows:  Project Charter,  Baseline Project Plan,  Project Status Report Template,  Project Sharepoint Site pre-loaded with baseline documentation,  Project Initiation Meeting. ANALYSIS Analysis is the second stage in the lifecycle. During the Analysis stage, Accela reviews existing agency documentation, interviews agency staff, and conducts workshops to understand the “To-Be” vision of the Agency that can be executed with the aid of Accela Automation. It is during this Phase that Accela gains a deeper understanding of Agency processes and business rules; simultaneously, the Agency begins to gain a deeper understanding of the methodology and Accela Automation capabilities. A key output of this Phase is the To-Be Analysis Document(s) which serve as the ‘foundation’ for configuration of Accela Automation to support germane elements of the Agency “To-Be” vision. Supplementing the To-Be Analysis Document(s) are all other configuration specifications documents related to data conversion, interfaces, reports, and event scripts. SOLUTION FOUNDATION Solution Foundation is the third stage in the lifecycle. It begins upon completion of Stage 2 and should be completed prior to the next stage, Build. During the Solution Foundation stage, Accela Automation will be Statement of Work  2013 Accela Inc. Page 34 built to match the to-be processes agreed to in the Analysis stage. Essential to this effort is the configuration of the Record (Case, Application, Permit, Work Order, etc) types that were agreed to during the Analysis phase. Configuration of in-scope record types is comprised of, but not limited to:  User-defined fields (Application-Specific Information and Task-Specific Information),  Workflows and statuses,  Fee structures and rules,  Inspection data. BUILD Build serves as the fourth stage in the lifecycle, and execution of this stage overlaps Configuration, but ends after Configuration is complete. During the Build stage, all defined elements during the Analysis stage beyond the Solution Foundation will be implemented. This includes conversions, event scripts, interfaces and reports. In terms of specific deliverables, common output from the Build Phase is as follows:  Event Script Development,  Report Specifications and Development,  Data Conversion Specifications and Development,  Interface Specifications and Development. READINESS Readiness is the fifth stage in the lifecycle. During the Readiness stage Accela Automation is fully tested, errors are identified, documented and corrected. Additionally, the solution is prepared for deployment. In addition, system administrators and end users are trained so that all appropriate agency staff members are prepared to use and maintain the software once the move to production occurs. In terms of specific deliverables, common output from the Readiness Phase is as follows:  User Acceptance Testing,  End-User Training. DEPLOY Deploy is the sixth and final stage in the lifecycle. During the Deploy stage the applications are moved to production; all requisite pre-production activities are identified, tracked and completed, and post-production analysis and review is completed. Upon moving to production, the Accela Automation applications are transitioned to the Accela Customer Resource Center (‘CRC”) for ongoing support. A formal transition will occur between the Services team and the CRC that instructs the agency on available communication channels (telephone, email, and online tracking system) and use of the Accela knowledge base. Lastly, all documented issues or enhancement requests will be transitioned from the Services team to the Customer Resource Center. In terms of specific deliverables, common output from the Deploy Phase is as follows:  Pre-Production Checklist Development, Tracking and Execution,  Move to Production,  Post Production Analysis,  Formal Transition to the CRC for Ongoing Support Statement of Work  2013 Accela Inc. Page 35 APPENDIX B – DATA CONVERSION ASSUMPTIONS The following information provides detail related to the scope of Accela’s data conversion offerings. Due to the inherent complexity of conversion activities, it is critical to address and understand common questions and misconceptions. Any conversion activity or requirement not included in this section is considered out of scope, and may be addressed through a change order for Accela services. GENERAL INFORMATION AND REQUIREMENTS FOR HISTORICAL CONVERSIONS - The standard data conversion includes the conversion of transactional data to the Accela Automation database when a configured destination exists. In the event there is no destination for legacy transactional data then it will be required to be converted as best fits into another area of the configuration or excluded from the conversion effort. - Accela will perform unit testing of the conversion program including spot checks of the data within Accela Automation in order to identify if data corruption issues exist. Extensive quality assurance of legacy/historical data by the agency is required in order to ensure accurate transfer of data. - A completed, signed off, Solution Foundation must be available before Accela will begin the data conversion mapping effort. DATA CONVERSION ASSUMPTIONS - “As-Is” Approach: Conversion of transactional tables, Address/Parcel/Owner (APO) data, Professional License data is executed “As-is” into Accela Automation. “As-is” means that the data will be transformed as mapped to existing configuration elements in Accela Automation. The conversion process will not create configuration data or alter the mapped data when processed into Accela Automation. Additionally this means if invalid, inaccurate, or incomplete data is provided, it will be loaded into Accela Automation “As-Is”. All data cleanup must occur prior to execution into Accela Automation. - Accela Data Conversion Tools: Data will be mapped and converted utilizing Accela’s Extract Translate and Load (“ETL”) toolset. This will assist to ensure the accuracy of the mapping. The data mapping tool ensures that the legacy source to Accela Automation solution is accurate and prevents data from failing to convert, while the execution tool can be used to consistently run conversion process and track statistics. - Acceptable Data Formats For Historical Conversion: It is expected that the Conversion Source Data be provided in an Oracle 10g/11g or Microsoft SQL Server 2000/2005/2008 database format. In the event that the source is not in an acceptable format, Accela will provide recommendations for transposing the data in the proper format. - Acceptable Data Formats For Reference Conversion: It is expected that the Conversion Source Data be provided in Oracle 10g/11g, Microsoft SQL Server 2000/2005/2008, or pipe delimited flat file format. In the event that the source is not in an acceptable format, Accela will provide recommendations for transposing the data in the proper format. - Documents: Historical/Legacy data conversion DOES NOT include the conversion of attached documents into Accela Document Services (“ADS”) in Accela Automation. Statement of Work  2013 Accela Inc. Page 36 APPENDIX C – DELIVERABLES ACCEPTANCE FORM Date: Agency Name: Approving Agency Manager: Accela Manager: Project Name / Code: Contract / Agreement #: Agency agrees that Accela has successfully completed the following Deliverables: Deliverable # Source / Reference Details Service Agreement Agency agrees that Accela has successfully completed the Deliverables described above in accordance with the terms of the related Contract/Agreement. Agency Name Signature Title Date Sign and fax this document to: Accela, Inc. YOUR NAME YOUR TITLE Tel: Fax: Email this document as an attachment to: YOUR EMAIL OR Please acknowledge acceptance by: A B APPROVALS: CITY OF HERMOSA BEACH MEMORANDUM DATE: JUNE 23, 2014 TO: MAYOR AND CITY COUNCIL FROM: CITY ATTORNEY MIKE JENKINS SUBJECT: SUPPLEMENTAL FOR ITEM 5(a), 6/24/14 AGENDA A question has been raised regarding placement of delinquent refuse charges on the tax roll. The following supplemental information is provided in connection with item 5(a) on tomorrow night’s Council agenda. A franchised exclusive refuse hauler has limited options for collecting on delinquencies. It is commonplace in municipalities for delinquencies to be collected on the tax roll and Hermosa Beach has both contractually and by ordinance committed to assist with collection of delinquent accounts in this manner. The hauler is not permitted to cease service to delinquent properties. The City encourages the hauler to exhaust all reasonable methods of curing delinquencies. Those not cured are directed to the City for collection on the tax roll along with property taxes. The City charges a late payment penalty recovers it administrative costs. If a property owner fails to pay property taxes over an extended period of time (five year minimum), the County will initiate foreclosure and upon foreclosure the delinquent fee will be paid along with the overdue property taxes. Municipal Code section 8.12.360 expressly authorizes the City to collect delinquencies on the tax roll. The full text of the section is reproduced below. Also, Section 6.7.6 of the Franchise Agreement expressly commits the City to performing this service for the hauler; that section is also reproduced below, following the Municipal Code section. Municipal Code 8.12. 360 Mandatory collection fee. A. In order to protect the health, safety and welfare of the residents of the city, the charges (including bin rental where applicable) for collection of garbage, rubbish and other refuse shall be billed in advance either by the city or its franchisee to each owner(s) of record of all premises where refuse is produced or generated. Said billing shall be in the manner and frequency as established by the city either by resolution or by contract with its franchisee. The city may adopt such billing and collection procedures as are deemed necessary and appropriate. 1. If an owner of record fails to pay a service bill by the date set by the city council by resolution establishing such procedures or by contrast with its authorized franchisee, the owner of record will be sent a notification of such delinquency which shall include a penalty fine of ten percent (10%), and the owner of record shall be assessed an additional ten percent (10%) penalty fine for every succeeding thirty (30) days of delinquency. Said notification shall be sent by the franchisee. (Ord. 13-1339 §12, March 12, 2013) 2. Each successive billing period established above shall include the accumulated unpaid charges in a delinquent account for collection and disposal of refuse, as well as the accumulated penalties. Those owners of record who receive such notice shall not invalidate any action taken by the franchisee or city under this section. 3. Should the owner of record fail or refuse to pay the fee assessed for collection of garbage, rubbish or other refuse as provided in this section, the individual in charge of such collection shall advise the city manager of such refusal. The failure to pay would, except for the provisions hereof, result in the noncollection of garbage, rubbish or other refuse, which condition the council determines and declares would be a threat to the public health, safety and welfare and which condition, if permitted to exist, is declared to be a public nuisance. In the event of nonpayment, the city manager shall direct the contractor or franchisee to continue to provide service, and the past-due billings, including penalties and expenses and charges for collecting such billings, shall be assessed against the property as provided in this section. The franchisee shall continue to collect garbage, rubbish and refuse in cases of nonpayment when directed to do so by the city manager. 4. All costs incurred in collection of unpaid charges shall be recoverable by the city and charged against the property from which the garbage, rubbish or refuse was collected. 5. The city manager shall direct a notice to the property owner where unpaid charges are pending, at the address shown on the latest tax roll, setting a date, time and place for a hearing before the administrative appeals board of the city at which the board shall review all unpaid charges and make a recommendation to the city council whether such charges should be charged against the property. The city manager shall thereafter direct a notice to the owner(s) of record where unpaid charges are pending, setting a date, time and place for a public hearing before the city council at which the administrative appeals board's recommendation shall be considered and all unpaid charges shall be reviewed. Any property owners shall have the right to appear at the public hearings before the administrative appeals board and before the city council. 6. At the conclusion of its public hearing, the city council shall determine and approve, as an assessment against the property, all past-due billings and penalties due to the date of said hearing, together with the costs incurred in collecting the unpaid charges. If the total assessment determined and approved by the council is not paid within ten days after the determination by the council, the delinquent account shall be submitted to the county assessor for inclusion as a special assessment against the parcel. The assessment shall be collected at the same time and in the same manner as county taxes are collected and shall be subject to the same penalties and the same procedure and sale in case of delinquency as provided for ordinary county taxes. All laws applicable to the levy, collection and enforcement of county taxes shall be applicable to such special assessment. Franchise Agreement From: F.O. Huebscher [mailto:fred@politicalscientists.com] Sent: Sunday, June 22, 2014 6:27 PM To: Nanette Barragan; Michael DiVirgilio; Peter Tucker; Carolyn Petty; Hany Fangary; Tom Bakaly; Ann Yang; Elaine Doerfling Subject: Item 5 (a) on Council Agenda for 6/24/14 meeting Dear Councilmembers and City Manager Bakaly, I was reading over the staff report for Item 5 (a) on the agenda for this coming Tuesday's council meeting and could find no documentation attached showing that the city's contracts with either Consolidated Disposal or Athens provide that the city will collect delinquent invoices by attaching those invoices to the property owner's property tax bill. Moreover, no documentation is provided to show whether either Consolidated Disposal or Athens have made efforts to collect these invoices. As I am sure you can imagine, once these bills are attached to a property owner's property tax bill it becomes very difficult to challenge the validity of the invoice and the invoice's charges. And most importantly, a property owner could lose his/her property because he/she refused to pay their trash bill. It would seem to me that if the city's contracts with Consolidated and/or Athens do not provide for the city's attaching delinquent invoices to a property owner's property tax bill then the city council should not take this action unless Consolidated and/or Athens pay the city for these services (I don't mean the fee that the delinquent property owner pays.). Since when is the city in the business of collecting delinquent debts for vendors? Thank you. -- Fred Huebscher 310-374-0568 www.politicalscientists.com PARCEL O_NAME O_ADD O_CITY O_ST ATE O_ZIP CUST Site Name Site #Site Street S_CITY Principle Fee Total Lien Bal 1 4187026050 ELIX CORP YONEYAMA, YUICHI 619 10TH ST HERMOSA BEACH CA 90254 51586 ELIX CROP 619 10TH ST HERMOSA BEACH 51.06 25.00 76.06 2 4161028004 JASON R BOYD 1326 10TH ST HERMOSA BEACH CA 90254 2713652 HEATHER BOYD 1236 10TH ST HERMOSA BEACH 125.00 25.00 150.00 3 4161026024 KEVIN M & MUTSUKO MURPHY 1118 11TH PL HERMOSA BEACH CA 90254 2704194 KEVIN MURPHY 1118 11TH PL HERMOSA BEACH 41.66 25.00 66.66 4 4185018017 TREVOR SPENCER 1908 HARRIMAN LN B REDONDO BEACH CA 90278 40458 TREVOR SPENCER 1121 14TH ST HERMOSA BEACH 34.72 25.00 59.72 5 4188023018 RUTH R GONZALES 622 1ST PL HERMOSA BEACH CA 90254 2702652 RUTH R GONZALES 622 1ST PL HERMOSA BEACH 51.22 25.00 76.22 6 4181033014 35 CHERRY OCA LLC 108 35TH ST HERMOSA BEACH CA 90254 2704423 MICHAEL PAPWORTH 110 35TH ST HERMOSA BEACH 83.32 25.00 108.32 7 4186019019 BRIAN R PERRY PO BOX 34 EL SEGUNDO CA 90245 2704488 BRIAN PERRY 941 3RD ST HERMOSA BEACH 102.42 25.00 127.42 8 4187016029 LESLIE A SHEA 47 6TH ST HERMOSA BEACH CA 90254 2705103 THOMAS & LESLIE SHEA 40 7TH CT HERMOSA BEACH 41.66 25.00 66.66 9 4187016031 THOMAS SHEA 40 7TH CT HERMOSA BEACH CA 90254 2705102 THOMAS & LESLIE SHEA 42 7TH CT HERMOSA BEACH 83.32 25.00 108.32 10 4187032016 JOE A MANOLAKAKIS 637 7TH ST HERMOSA BEACH CA 90254 2703804 JOE&VASILLIA MANOLAKAKIS 635 7TH ST HERMOSA BEACH 51.22 25.00 76.22 11 4186013005 JOEL LUZ 840 7TH ST D HERMOSA BEACH CA 90254 2706116 JOEL LUZ 832 7TH ST HERMOSA BEACH 165.04 25.00 190.04 12 4183006033 AMIR P IZADPANAH 52 17TH ST HERMOSA BEACH CA 90254 2703101 AMIR IZADPANAH 52 1 7TH ST HERMOSA BEACH 102.42 25.00 127.42 13 4187028014 KENNETH N & BEVERLY HAAS 4035 HIGHWAY 33 MARICOPA CA 93252 2702759 KENNETH HAAS 745 8TH PL HERMOSA BEACH 51.22 25.00 76.22 14 4188010030 SIM HIXSON 1570 VIA MONSERATE FALLBROOK CA 92028 2711112 SIM HIXSON 518 BAYVIEW DR HERMOSA BEACH 125.00 25.00 150.00 15 4185009010 CHRISTINE M REINAGEL 1219 24TH ST HERMOSA BEACH CA 90254 36265 CHRISTINE REINAG 1415 BONNIE BRAE #A HERMOSA BEACH 39.05 25.00 64.05 16 4185009010 CHRISTINE M REINAGEL 1219 24TH ST HERMOSA BEACH CA 90254 36269 CHRISTINE REINAG 1415 BONNIE BRAE #B HERMOSA BEACH 51.20 25.00 76.20 17 4187014019 JAMES P RYAN 833 CYPRESS AVE HERMOSA BEACH CA 90254 2704905 JAMES RYAN 833 CYPRESS AVE HERMOSA BEACH 51.22 25.00 76.22 18 4186016013 JANICE LIBIANO 1974 WILLINGS LN HELLERTOWN PA 18055 23753 THOMAS DUDIC GARTH HUNT 534 GRAVELY CT HERMOSA BEACH 51.22 25.00 76.22 19 4187007012 FREDRIC ROSENBERG PO BOX 7000 PALOS VERDEPENINSULA CA 90274 36173 BARBARA ROSENBERG 815 MANHATTAN AVE HERMOSA BEACH 34.72 25.00 59.72 20 4187007012 FREDRIC ROSENBERG PO BOX 7000 PALOS VERDEPENINSULA CA 90274 2713414 FREDRIC ROSENBERG 817 MANHATTAN AVE HERMOSA BEACH 50.06 25.00 75.06 21 4187008036 SIM J HIXSON 1570 VIA MONSERATE FALLBROOK CA 92028 2702963 CARTERBRUTSCHY,JOHN,BRADKLEY 934 MANHATTAN AVE HERMOSA BEACH 153.64 25.00 178.64 22 4188010061 MICHAEL CHENG 401 MONTEREY BLVD 3 HERMOSA BEACH CA 90254 2711281 MICHAEL CHENG 401 MONTEREY BLVD HERMOSA BEACH 41.66 25.00 66.66 23 4187008011 GERALD W JOHNSON PO BOX 3600 LONG BEACH CA 90803 2710931 901 901>A 901>1/2 845 MONTEREY BLVD HERMOSA BEACH 460.88 25.00 485.88 24 4185015012 REGIS & OIE GINN 1326 OWOSSO AVE HERMOSA BEACH CA 90254 2702609 RAYMOND GINN 1326 OWOSSO AVE HERMOSA BEACH 51.54 25.00 76.54 25 4187007029 NICHOLAS KLUTKA 834 PALM DR HERMOSA BEACH CA 90254 12306 NICHOLAS KLUTKA 834 PALM DR HERMOSA BEACH 51.22 25.00 76.22 26 4185001018 REG8 PLAZA HERMOSA LLC P O BOX 790830 SAN ANTONIO TX 78279 55190 IEM 709 PIER HERMOSA BEACH 1310.31 25.00 1335.31 27 4185023005 BERNARD LEHN 1720 PROSPECT AVE HERMOSA BEACH CA 90254 2703561 BERNARD LEHN JR 1720 PROSPECT AVE HERMOSA BEACH 93.70 25.00 118.70 28 4184010011 LINDA M YEH 1922 RHODES ST HERMOSA BEACH CA 90254 2702138 LINDA YEH 1922 RHODES ST HERMOSA BEACH 50.16 25.00 75.16 29 4188002039 RAMI NASSIF 723 N LUCIA AVE B REDONDO BEACH CA 90277 42443 RAMI NASSIF 66 THE STRAND HERMOSA BEACH 153.64 25.00 178.64 *Check Received from IEM but not cleared yet 3753.50 Contract 60 Days Tax Lien File Hermosa Beach379 4 4187002028 840 STRAND LLC PO BOX 2495 MANHATTAN BEACH CA 90267 57107 840 THE STRAND LLC84187008012KEEGAN OLSON 841 MONTERE HERMOSA BEACH CA 90254 56629MICHEAL KEEGAN94187021018RONALD R & GISEL 721 MANHATT HERMOSA BEACH CA 90254 270416RONALD & GISELLA MO#4181024001 JAY A MITCHELL PO BOX 2495 MANHATTAN BEACH CA 90267 270408JAY A MITCHELL#4183007013 LANCE KELLER 88 18TH ST HERMOSA BEACH CA 90254 270519HOWARD SMITH#4185001012 REG8 PLAZA HERM PO BOX 79083SAN ANTONIO TX 78279 54907IEM#4187031005 CORBIN & ROBERT 296 MCCLELLA CLANCY MT 59634 270604EDDIE COLLINS#4185016005 DUNG TRAN 3119 W 170TH TORRANCE CA 90504 62182DUNG Q TRAN/HELEN P #4187032016 JOE A MANOLAKAK637 7TH ST HERMOSA BEACH CA 90254 270380JOE MANOLAKAKIS#4160031025 JENNIFER L & JOHN 1287 7TH ST HERMOSA BEACH CA 90266 271392JOHN DURAND#4186019060 GREG J & FAYE TIL 417 HOPKINS AHERMOSA BEACH CA 90254 66557CATHY HARYUNG#4188020106 JESSIKA WERCHIC330 CULPER C HERMOSA BEACH CA 90254 271422JESSIKA WERCHICK64186031012ERNEST J & PAMEL PO BOX 2596 REDONDO BEACH CA 90278 271113ERNEST & PAMELA HOU 840 THE STRAND HERMOSA BEACH 310.93 25.00 335.93841 MONTEREY BL HERMOSA BEACH 152.72 25.00 177.72721 MANHATTAN AHERMOSA BEACH 136.46 25.00 161.462634 MANHATTAN HERMOSA BEACH 102.42 25.00 127.4288 18TH ST HERMOSA BEACH 92.59 25.00 117.591559 PACIFIC COAS HERMOSA BEACH 78.97 25.00 103.97675 VALLEY DR HERMOSA BEACH 64.75 25.00 89.751255 PROSPECT AVHERMOSA BEACH 55.32 25.00 80.32637 7TH ST HERMOSA BEACH 51.22 25.00 76.221287 7TH ST HERMOSA BEACH 45.83 25.00 70.83417 HOPKINS AVE HERMOSA BEACH 41.66 25.00 66.66330 CULPER CT HERMOSA BEACH 41.66 25.00 66.669401ST ST HERMO ####25.00 398.38 PARCEL O_NAME O_ADD O_CITY O_ST ATE O_ZIP CUST Site Name Site #Site Street S_CITY Principle Fee 1 4187026050 ELIX CORP YONEYAMA, YUICHI 619 10TH ST HERMOSA BEACH CA 90254 51586 ELIX CROP 619 10TH ST HERMOSA BEACH 51.06 25.0024161028004JASON R BOYD 1326 10TH ST HERMOSA BEACH CA 90254 2713652 HEATHER BOYD 1236 10TH ST HERMOSA BEACH 125.00 25.0034161026024KEVIN M & MUTSUKO MURPHY 1118 11TH PL HERMOSA BEACH CA 90254 2704194 KEVIN MURPHY 1118 11TH PL HERMOSA BEACH 41.66 25.0044185018017TREVOR SPENCER 1908 HARRIMAN LN B REDONDO BEACH CA 90278 40458 TREVOR SPENCER 1121 14TH ST HERMOSA BEACH 34.72 25.0054188023018RUTH R GONZALES 622 1ST PL HERMOSA BEACH CA 90254 2702652 RUTH R GONZALES 622 1ST PL HERMOSA BEACH 51.22 25.006418103301435 CHERRY OCA LLC 108 35TH ST HERMOSA BEACH CA 90254 2704423 MICHAEL PAPWORTH 110 35TH ST HERMOSA BEACH 83.32 25.0074186019019BRIAN R PERRY PO BOX 34 EL SEGUNDO CA 90245 2704488 BRIAN PERRY 941 3RD ST HERMOSA BEACH 102.42 25.0084187016029LESLIE A SHEA 47 6TH ST HERMOSA BEACH CA 90254 2705103 THOMAS & LESLIE SHEA 40 7TH CT HERMOSA BEACH 41.66 25.0094187016031THOMAS SHEA 40 7TH CT HERMOSA BEACH CA 90254 2705102 THOMAS & LESLIE SHEA 42 7TH CT HERMOSA BEACH 83.32 25.00104187032016JOE A MANOLAKAKIS 637 7TH ST HERMOSA BEACH CA 90254 2703804 JOE&VASILLIA MANOLAKAKIS 635 7TH ST HERMOSA BEACH 51.22 25.00114186013005JOEL LUZ 840 7TH ST D HERMOSA BEACH CA 90254 2706116 JOEL LUZ 832 7TH ST HERMOSA BEACH 165.04 25.00124183006033AMIR P IZADPANAH 52 17TH ST HERMOSA BEACH CA 90254 2703101 AMIR IZADPANAH 52 1 7TH ST HERMOSA BEACH 102.42 25.00134187028014KENNETH N & BEVERLY HAAS 4035 HIGHWAY 33 MARICOPA CA 93252 2702759 KENNETH HAAS 745 8TH PL HERMOSA BEACH 51.22 25.00144188010030SIM HIXSON 1570 VIA MONSERATE FALLBROOK CA 92028 2711112 SIM HIXSON 518 BAYVIEW DR HERMOSA BEACH 125.00 25.00154185009010CHRISTINE M REINAGEL 1219 24TH ST HERMOSA BEACH CA 90254 36265 CHRISTINE REINAG 1415 BONNIE BRAE #A HERMOSA BEACH 39.05 25.00164185009010CHRISTINE M REINAGEL 1219 24TH ST HERMOSA BEACH CA 90254 36269 CHRISTINE REINAG 1415 BONNIE BRAE #B HERMOSA BEACH 51.20 25.00174187014019JAMES P RYAN 833 CYPRESS AVE HERMOSA BEACH CA 90254 2704905 JAMES RYAN 833 CYPRESS AVE HERMOSA BEACH 51.22 25.00184186016013JANICE LIBIANO 1974 WILLINGS LN HELLERTOWN PA 18055 23753 THOMAS DUDIC GARTH HUNT 534 GRAVELY CT HERMOSA BEACH 51.22 25.00194187007012FREDRIC ROSENBERG PO BOX 7000 PALOS VERDEPENINSULA CA 90274 36173 BARBARA ROSENBERG 815 MANHATTAN AVE HERMOSA BEACH 34.72 25.00204187007012FREDRIC ROSENBERG PO BOX 7000 PALOS VERDEPENINSULA CA 90274 2713414 FREDRIC ROSENBERG 817 MANHATTAN AVE HERMOSA BEACH 50.06 25.00214187008036SIM J HIXSON 1570 VIA MONSERATE FALLBROOK CA 92028 2702963 CARTERBRUTSCHY,JOHN,BRADKLEY 934 MANHATTAN AVE HERMOSA BEACH 153.64 25.00224188010061MICHAEL CHENG 401 MONTEREY BLVD 3 HERMOSA BEACH CA 90254 2711281 MICHAEL CHENG 401 MONTEREY BLVD HERMOSA BEACH 41.66 25.00234187008011GERALD W JOHNSON PO BOX 3600 LONG BEACH CA 90803 2710931 901 901>A 901>1/2 845 MONTEREY BLVD HERMOSA BEACH 460.88 25.00244185015012REGIS & OIE GINN 1326 OWOSSO AVE HERMOSA BEACH CA 90254 2702609 RAYMOND GINN 1326 OWOSSO AVE HERMOSA BEACH 51.54 25.00254187007029NICHOLAS KLUTKA 834 PALM DR HERMOSA BEACH CA 90254 12306 NICHOLAS KLUTKA 834 PALM DR HERMOSA BEACH 51.22 25.00264185001018REG8 PLAZA HERMOSA LLC P O BOX 790830 SAN ANTONIO TX 78279 55190 IEM 709 PIER HERMOSA BEACH 1310.31 25.00274185023005BERNARD LEHN 1720 PROSPECT AVE HERMOSA BEACH CA 90254 2703561 BERNARD LEHN JR 1720 PROSPECT AVE HERMOSA BEACH 93.70 25.00284184010011LINDA M YEH 1922 RHODES ST HERMOSA BEACH CA 90254 2702138 LINDA YEH 1922 RHODES ST HERMOSA BEACH 50.16 25.00294188002039RAMI NASSIF 723 N LUCIA AVE B REDONDO BEACH CA 90277 42443 RAMI NASSIF 66 THE STRAND HERMOSA BEACH 153.64 25.00 *Check Received from IEM but not cleared yet 3753.50 Contract 60 Days Tax Lien File Hermosa Beach379 PARCEL41870260504161028004416102602441850180174188023018418103301441860190194187016029418701603141870320164186013005418300603341870280144188010030418500901041850090104187014019418601601341870070124187007012418700803641880100614187008011418501501241870070294185001018418502300541840100114188002039 heck Received fr Total Lien Bal76.06150.0066.6659.7276.22108.32127.4266.66108.3276.22190.04127.4276.22150.0064.0576.2076.2276.2259.7275.06178.6466.66485.8876.5476.221335.31118.7075.16178.64 City of Hermosa Beach Tax Lien Delinquent Accounts List Past Due Balances as of March 31, 2014 City Acct Acct No Account Name Service Address Parcel No Serv Tel #Billing Name Billing Address Billing City & State Billing Tel # Total A/R Current 90 Day Past Due Past Due as of 3/31/14 343 479730 479730-000 ANGES SMYTHE 401 2ND ST 4188-020-030 ANGES SMYTHE 611 23RD ST MANHATTAN BEACH, CA 90266 2223 128.28 32.07 96.21 $96.21 343 480148 480148-000 CARTERBRUTSCHY,JOHN,BRADKLEY 934 MANHATTAN AVE 4187-008-036 3102426940 CARTERBRUTSCHY,JOHN,BRADKLEY 1473 WINTERWARM DR FALLBROOK, CA 92028 8250 3102426940 384.84 96.21 288.63 $288.63 343 481150 481150-000 GALE, GAYLE 1108 1ST PL 4186-028-002 4802588480 GALE, GAYLE 1108 1ST PL HERMOSA BEACH, CA 90254 5301 88.28 32.07 56.21 $56.21 343 481539 481539-000 J BETTES/J ALONZO 554 24TH ST 4182-022-006 4242478796 J BETTES/J ALONZO 554 24TH ST HERMOSA BEACH, CA 90254 2666 4242478796 197.80 50.07 147.73 $147.73 343 481877 481877-000 JEROME & MARGARET GROSS 442 MANHATTAN AVE 4188-010-057 3102767889 JEROME & MARGARET GROSS 442 MANHATTAN AVE HERMOSA BEACH, CA 90254 4577 3102767889 128.28 32.07 96.21 $96.21 343 482299 482299-000 KA MILLER TRUST 16 23RD ST 4182-003-008 7603239193 KA MILLER TRUST 1717 E VISTA CHINO PALM SPRINGS, CA 92262 3559 7603239193 128.28 32.07 96.21 $96.21 343 482416 482416-000 KENNETH HAAS 745 8TH PL 4187-028-014 6617662820 KENNETH HAAS 0 HC 1 BOX 125A C MARICOPA, CA 93252 6617662820 177.12 50.07 127.05 $127.05 343 482548 482548-000 LAURA GORMAN 1325 OWOSSO AVE 4185-014-013 1234567890 LAURA GORMAN 1325 OWOSSO AVE HERMOSA BEACH, CA 90254 4047 96.21 32.07 64.14 $64.14 343 482608 482608-000 ODELL, LEILANI 454-456 29TH ST 4181-007-024 3102516438 LEILANI ODELL 454 29TH ST HERMOSA BEACH, CA 90254 2128 3102516438 126.56 40.14 86.42 $86.42 343 483322 483322-000 NICHOLAS KLUTKA 834 PALM DR 4187-007-029 3107567699 NICHOLAS KLUTKA 834 PALM DR HERMOSA BEACH, CA 90254 4162 8880088888 128.28 32.07 96.21 $96.21 343 483418 483418-000 PARKER HERRIOTT 2300 OZONE CT 4182-016-038 3103797196 PARKER HERRIOTT 224 24TH ST HERMOSA BEACH, CA 90254 2600 3102007646 513.12 128.28 384.84 $384.84 343 483518 483518-000 PAUL KNITTEL 408 29TH ST 4181-007-003 3103720545 PAUL KNITTEL 408 29TH ST HERMOSA BEACH, CA 90254 2128 3103720545 128.28 32.07 96.21 $96.21 343 483684 483684-000 RAMI NASSIF 66 THE STRAND 4188-002-039 3103799331 RAMI NASSIF 66 THE STRAND HERMOSA BEACH, CA 90254 5042 3103799331 240.84 60.21 180.63 $180.63 343 483707 483707-000 RAYMOND GINN 1326 OWOSSO AVE 4185-015-012 3103727019 RAYMOND GINN 1326 OWOSSO AVE HERMOSA BEACH, CA 90254 4046 3103727019 128.28 32.07 96.21 $96.21 343 484127 484127-000 RUTH R GONZALES 622 1ST PL 4188-023-018 3103728545 RUTH R GONZALES 622 1ST PL HERMOSA BEACH, CA 90254 5201 3104898681 154.68 62.67 29.34 $29.34 343 484639 484639-000 THOMAS & LESLIE SHEA 40 7TH CT 4187-016-029 0000000000 THOMAS & LESLIE SHEA 4O 7TH CT HERMOSA BEACH, CA 90254 4412 80.28 20.07 60.21 $60.21 343 486591 486591-000 GETTIS, STEPHANIE 1217 CYPRESS AVE 4187-019-057 3109377600 STEPHANIE GETTIS 1217 CYPRESS AVE HERMOSA BEACH, CA 90254 3811 128.28 32.07 96.21 $96.21 343 491172 491172-000 SHARMA, GAUTAM 1235 2ND ST 4186-023-012 3107489318 GAUTAM SHARMA 1235 2ND STREET HERMOSA BEACH, CA 90254 5338 3105676686 96.21 32.07 64.14 $64.14 343 493286 493286-000 SACCHETTI RESTAURANT GRP, LLC 817 MANHATTAN AVE 4187-007-012 9147879187 SACCHETTI RESTAURANT GRP, LLC 817 MANHATTAN AVE HERMOSA BEACH, CA 90254 4151 2133610489 176.28 44.07 132.21 $132.21 343 493396 493396-000 MALKIN, BRETT 132 33RD PL 4181-031-010 4246342127 33RD LP P.O. BOX 4147 HERMOSA BEACH, CA 90254 50.18 20.07 30.11 $30.11 (Ruth Gonzales-Paid $62.67, 5/13/14 - Remaining Past Due from 3/31/14 is $29.34) Past Due as of 3/31/14 City of Hermosa Beach Tax Lien Delinquent Accounts List Past Due Balances as of March 31, 2014 City Acct Acct No Account Name Service Address Parcel No Serv Tel #Billing Name Billing Address Billing City & State Billing Tel # Total A/R Current 90 Day Past Due Past Due a 343 479730 479730-000 ANGES SMYTHE 401 2ND ST 4188-020-030 ANGES SMYTHE 611 23RD ST MANHATTAN BEACH, CA 90266 2223 128.28 32.07 96.21 $96.21 343 480148 480148-000 CARTERBRUTSCHY,JOHN,BRADKLEY 934 MANHATTAN AVE 4187-008-036 3102426940 CARTERBRUTSCHY,JOHN,BRADKLEY 1473 WINTERWARM DR FALLBROOK, CA 92028 8250 3102426940 384.84 96.21 288.63 $288.63 343 481150 481150-000 GALE, GAYLE 1108 1ST PL 4186-028-002 4802588480 GALE, GAYLE 1108 1ST PL HERMOSA BEACH, CA 90254 5301 88.28 32.07 56.21 $56.21 343 481539 481539-000 J BETTES/J ALONZO 554 24TH ST 4182-022-006 4242478796 J BETTES/J ALONZO 554 24TH ST HERMOSA BEACH, CA 90254 2666 4242478796 197.80 50.07 147.73 $147.73 343 481877 481877-000 JEROME & MARGARET GROSS 442 MANHATTAN AVE 4188-010-057 3102767889 JEROME & MARGARET GROSS 442 MANHATTAN AVE HERMOSA BEACH, CA 90254 4577 3102767889 128.28 32.07 96.21 $96.21 343 482299 482299-000 KA MILLER TRUST 16 23RD ST 4182-003-008 7603239193 KA MILLER TRUST 1717 E VISTA CHINO PALM SPRINGS, CA 92262 3559 7603239193 128.28 32.07 96.21 $96.21 343 482416 482416-000 KENNETH HAAS 745 8TH PL 4187-028-014 6617662820 KENNETH HAAS 0 HC 1 BOX 125A C MARICOPA, CA 93252 6617662820 177.12 50.07 127.05 $127.05 343 482548 482548-000 LAURA GORMAN 1325 OWOSSO AVE 4185-014-013 1234567890 LAURA GORMAN 1325 OWOSSO AVE HERMOSA BEACH, CA 90254 4047 96.21 32.07 64.14 $64.14 343 482608 482608-000 ODELL, LEILANI 454-456 29TH ST 4181-007-024 3102516438 LEILANI ODELL 454 29TH ST HERMOSA BEACH, CA 90254 2128 3102516438 126.56 40.14 86.42 $86.42 343 483322 483322-000 NICHOLAS KLUTKA 834 PALM DR 4187-007-029 3107567699 NICHOLAS KLUTKA 834 PALM DR HERMOSA BEACH, CA 90254 4162 8880088888 128.28 32.07 96.21 $96.21 343 483418 483418-000 PARKER HERRIOTT 2300 OZONE CT 4182-016-038 3103797196 PARKER HERRIOTT 224 24TH ST HERMOSA BEACH, CA 90254 2600 3102007646 513.12 128.28 384.84 $384.84 343 483518 483518-000 PAUL KNITTEL 408 29TH ST 4181-007-003 3103720545 PAUL KNITTEL 408 29TH ST HERMOSA BEACH, CA 90254 2128 3103720545 128.28 32.07 96.21 $96.21 343 483684 483684-000 RAMI NASSIF 66 THE STRAND 4188-002-039 3103799331 RAMI NASSIF 66 THE STRAND HERMOSA BEACH, CA 90254 5042 3103799331 240.84 60.21 180.63 $180.63 343 483707 483707-000 RAYMOND GINN 1326 OWOSSO AVE 4185-015-012 3103727019 RAYMOND GINN 1326 OWOSSO AVE HERMOSA BEACH, CA 90254 4046 3103727019 128.28 32.07 96.21 $96.21 343 484127 484127-000 RUTH R GONZALES 622 1ST PL 4188-023-018 3103728545 RUTH R GONZALES 622 1ST PL HERMOSA BEACH, CA 90254 5201 3104898681 154.68 62.67 29.34 $29.34 343 484639 484639-000 THOMAS & LESLIE SHEA 40 7TH CT 4187-016-029 0000000000 THOMAS & LESLIE SHEA 4O 7TH CT HERMOSA BEACH, CA 90254 4412 80.28 20.07 60.21 $60.21 343 486591 486591-000 GETTIS, STEPHANIE 1217 CYPRESS AVE 4187-019-057 3109377600 STEPHANIE GETTIS 1217 CYPRESS AVE HERMOSA BEACH, CA 90254 3811 128.28 32.07 96.21 $96.21 343 491172 491172-000 SHARMA, GAUTAM 1235 2ND ST 4186-023-012 3107489318 GAUTAM SHARMA 1235 2ND STREET HERMOSA BEACH, CA 90254 5338 3105676686 96.21 32.07 64.14 $64.14 343 493286 493286-000 SACCHETTI RESTAURANT GRP, LLC 817 MANHATTAN AVE 4187-007-012 9147879187 SACCHETTI RESTAURANT GRP, LLC 817 MANHATTAN AVE HERMOSA BEACH, CA 90254 4151 2133610489 176.28 44.07 132.21 $132.21 343 493396 493396-000 MALKIN, BRETT 132 33RD PL 4181-031-010 4246342127 33RD LP P.O. BOX 4147 HERMOSA BEACH, CA 90254 50.18 20.07 30.11 $30.11 (Ruth Gonzales-Paid $62.67, 5/13/14 - Remaining Past Due from 3/31/14 is $29.34) as of 3/31/14 June 16, 2014 Honorable Mayor and Members of City Council Meeting of the Hermosa Beach City Council June 24, 2014 ADOPTION OF 2014-2015 BUDGET RECOMMENDATION: It is recommended that the City Council: 1. Review approved revisions to the budget and direction to staff from the 6/10/14 study session and public hearing as outlined below; 2. Review changes to the budget recommended by staff as outlined below; 3. Hear public testimony regarding the 2014-15 Budget; 4. Adopt Resolution 14- XXXX, approving the 2014-15 Budget; 5. Approve contracts for services contained herein. BACKGROUND: A budget workshop was held on May 22, 2014. Presentations were given on: the Fiscal Health Model from the Center for Performance Based Budgeting; the city’s pension and other post- employment benefit (OPEB) obligations by independent actuary, John Bartel; and an overview of the budget. Councilmembers reviewed the budget and asked questions, adjourning to the Study Session and Public Hearing of June 10, 2014. A presentation was given by Jeff Cooper of PENCO Engineering regarding the Sewer System Study, Upgrade and/or Possible Annexation to the County. The City Council reviewed the Capital Improvement Program and completed review and questions regarding the Preliminary Budget. ANALYSIS: Direction to Staff/Revisions to Preliminary Budget The City Council provided the following direction to staff and approved the following revisions to the preliminary budget. These changes are reflected in the total amount presented in the Budget Summary attached to the budget resolution as page 13 - 21 for adoption. (If City Council makes changes at the 6/24/14 meeting, the Budget Summary and resolution will be modified according to City Council direction). Direction to Staff, Sewer System Study The City Council directed staff to maintain city sewer operations in-house rather than pursuing annexation of the system to Los Angeles County. Staff indicated that a report regarding upgrading the system would be brought back in August or September, with more in depth options on funding, as requested by Council. Direction to Staff, insurance Fund The City Council directed staff to transfer funds available over the goal amount of $3,000,000 at Midyear 2014-15 Budget Review from the Insurance Fund to the Sewer Fund. The estimated amount at this time is approximately $2.4 million. The Council also directed that claims in the Insurance Fund continue to be recorded at the 56% probability level rather than increasing to the 70% level, as recommended by staff. 1 Revisions to the Preliminary Budget 8th Street Safe Route to School, CIP 173 (see attached Project Sheet, page 5) The City Council requested that funds be included for the 8th Street Safe Route to School Capital Improvement Project (CIP). As shown on the attached Project Request Sheet (page 5), $67,000 is funded for 2014-15 from the Tyco Fund; $55,000 for design, a $5,000 contingency and $12,000 for a survey, with a total project cost of $644,390. A grant application to Caltrans for $605,000 is pending, with an answer expected in August. A city match of $151,000 will be required if the grant is approved. If the grant is not approved, staff will return at Midyear Budget Review to appropriate funds for project completion. It is anticipated that funds will be available in the Capital Improvement Fund due to unspent funds in the General Fund from 2013-14 transferring there at year end. 2014-15 Street Improvement Project, CIP128 (see attached Project Sheet, page 6) The City Council approved an increase to the Street Improvement Project in order to achieve a Pavement Condition Index (PCI)of 81 over five years from the current level of 77. The amount funded from the Tyco Fund for 2014-15 is an additional $228,000, for a total of $1,028,000. The amount will vary from year to year (of the five year CIP) based on the PCI projection table provided in the June 10th staff report. With the two additional appropriations above, the balance of the Tyco Fund will change from $319,284 to $24,284. Clark Field Upgrades, CIP 541 (see the attached updated Project Request sheet, page 7) There is no fiscal impact to this project, but staff agreed that changes for the pedestrian accessibility improvements mentioned at the public hearing will be included as part of this project. Note: A revised CIP Summary for 2014-15 and Fiver Year Summary are attached as pages 8 – 11. Changes to the Budget (since the 6/10/14 meeting) Staff has identified the following changes to recommend for approval since the study session/public hearing on 6/10/14. • Two additional Police vehicles are due for replacement next year. A 2007 Crown Victoria $24,990 and a 2007 Polaris All-Terrain vehicle ($13,956) will be added to the list. This brings the total vehicles being replaced to 13 at a cost of $481,490. • Item 2j of this agenda requests additional appropriations for Accela Upgrade totaling $77,200. Includes a $55,400 two-year advanced purchase of subscription/maintenance ($27,700 per year) to take advantage of a 10% prepay discount and to lock in 3% increases in years 3, 4, and 5 as part of a 5-year term agreement, and $21,800 for the necessary upgrade to our existing Geographic Information System (GIS), including GIS mobile software license, to allow integration with Accela Automation. • Community Development received approval of a $100,000 grant for the Local Coastal Program. Revenue of $100,000 will be added in the Grant Fund and the additional $100,000 will be appropriated for the project. 2 Contracts for Services The following contracts are for services budgeted in various departments. Rather than submitting them individually on future agendas, we are submitting them en masse. The contracts are on file for review in the Finance Department. DEPARTMENT/CONTRACTOR SERVICE PROVIDED TERM/AMOUNT Community Development Eugene Tseng and Associates AB 939 Compliance Reporting and Diversion Program Planning and Implantation Services 7/1/14 – 6/30/16 $18,000/year Hayer Consultants Building Plan Check 7/1/13 - 6/30/16 34% of the plan check fee and/or $72 per hour Lawrence Associates AB939 Compliance, CDBG Administration 7/1/13 - 6/30/16 $85 per hour Finance Administration Prosum Technology Services IT Support Services 7/1/13-6/30/15 $12,659 per month Pun & McGeady LLP Audit Services 7/1/14 – 6/30/15, 7/1/15 - 6/30/16 pursuant to existing 3 year contract, with a provision for a 2 year extension $20,800/year Fire Department Fire Information Support Services Ongoing Technical Support for Fire Department’s Records Management System (RMS) 7/-/14 – 6/30/15 $7,000 Zoll Medical Corporation ZOLL Defibrillator – Preventive Maintenance 7/1/14 – 6/30/15 One (1) year extended warranty $6,151 Public Works Civil Source Engineering Staffing 7/1/14 - 6/30/15 Not to exceed $150,000 Geosyntec Consultants MS4 & TMDL Consulting Services 7/1/14 - 6/30/15 Not to exceed $88,135 Hartzog & Crabill, Inc. Traffic Engineering Services 7/1/14 – 6/30/15 Not to Exceed $46,200 Hartzog & Crabill, Inc. Traffic Survey for Speed Limits 7/1/14 - 6/30/15 Not to exceed $11,550 MBF Consulting, Inc. Engineering Services for Sewer and Storm Drain Design, Waste Discharge Requirement 7/1/14 - 6/30/15 Not to Exceed $46,970 Budget Resolution/Summary The Budget Summary is attached to the budget resolution, as “Exhibit A”, at the end of this packet on pages 12 - 21. 3 4 CITY OF HERMOSA BEACH CAPITAL IMPROVEMENT PROJECT REQUEST DEPARTMENT: PUBLIC WORKS PRIORITY NO.: ACCOUNT NO.: CATEGORY: STREET AND HIGHWAY IMPROVEMENTS 122-8173-4201 PROJECT NO./TITLE: CIP 14-173 8th Street - Safe Route to School Project PROJECT DESCRIPTION: The project consists of improvements that provide a “safe route to school” to Hermosa Valley School at 1645 Valley Drive in the City of Hermosa Beach. Improvements include continuous sidewalk and ADA curb access ramps on both sides of 8th Street, from Hermosa Avenue to Valley Drive; installing yellow ladder crosswalks on both sides of 8th Street at intersections of: Manhattan Avenue, Monterey Blvd., Loma Drive, Cypress Avenue, Bard Street and Valley Drive, installing new MUTCD School Zone signs along 8th Street and upgrade School Zone signs along Valley Drive; installing a new ramp at the intersection of 16th Street and Ardmore Avenue to cross the Hermosa Valley Greenbelt and join the existing ramp leading to the school. JUSTIFICATION: Lack of continuous sidewalks on 8th Street between Valley Drive and Hermosa Avenue STATUS: Survey and design to begin FY14-15 COST TO COMPLETE PROJECT REMAINING PRIOR YEARS FUNDS Construction $479,900 Construction Support Survey $45,000 $12,000 Engineering $50,000 Contingency $57,490 CURRENT REQUEST 122 Tyco Fund $67,000 PROJECT TOTAL: $644,390 TOTAL CIP FY 14-15 FUNDING: $67,000 5 CITY OF HERMOSA BEACH CAPITAL IMPROVEMENT PROJECT REQUEST FISCAL YEAR 2014-2015 DEPARTMENT: PUBLIC WORKS PRIORITY NO.: ACCOUNT NO.: CATEGORY: STREET AND HIGHWAY IMPROVEMENTS 001-8128-4201 115-8128-4201 147-8128-4201 301-8128-4201 122-8128-4201 PROJECT NO./TITLE: CIP 14-128 Street Improvements - Various Locations PROJECT DESCRIPTION: This project proposes pavement rehabilitation of streets at various locations. The selection of streets is prioritized based on their respective Pavement Condition Index (PCI, a numerical index ranging from 0 for failed pavement to 100 indicating pavement in perfect condition) established by the City’s Pavement Management Program Report. Candidates for this Fiscal Year’s Street Improvement Program are a continuation of past year’s PCI based list of streets as established in the Pavement Management Report. The project will also address limited quantities of deteriorated concrete sidewalk, curb and gutter, curb ramps and drainage deficiencies. It will also include the City’s Slurry Seal Program. JUSTIFICATION: To repair and/or maintain the City’s street infrastructure identified by the City’s Pavement Management Program Report in accordance with the City’s annual Street Improvement Program. STATUS: Design and Construction in FY14-15. COST TO COMPLETE PROJECT REMAINING PRIOR YEARS FUNDS Construction $834,200 Construction Support $48,000 Engineering $60,000 Associate Engineer $85,800 (from 115 and 147 fund) CURRENT REQUEST FY15-16 Budget $1,018,000 001 General Fund $230,000 FY16-17 Budget $1,025,000 115 State Gas Tax Fund $204,078 FY17-18 Budget $1,021,000 147 Measure R Fund $349,079 FY18-19 Budget $1,016,000 301 Capital Improvement Fund 122 Tyco Fund $16,843 $228,000 PROJECT TOTAL: $5,108,000 TOTAL FY 14-15 CIP FUNDING: $1,028,000 6 CITY OF HERMOSA BEACH CAPITAL IMPROVEMENT PROJECT REQUEST FISCAL YEAR 2014-15 DEPARTMENT: PUBLIC WORKS PRIORITY NO.: ACCOUNT NO.: CATEGORY: Park Improvements 001-8602-4201 125-8602-4201 PROJECT NO./TITLE: CIP 14-541 Clark Field Energy Efficient Electrical Upgrades- Phase II PROJECT DESCRIPTION: Project includes upgrade of poles and field lighting to increase energy efficiency and to upgrade pedestrian accessibility to Clark Field from Loma Drive that will include sidewalk, ramp, stairway, and handrail improvements. JUSTIFICATION: Improvements needed to replace existing field lighting with energy efficient lighting and to improve pedestrian accessibility. COST TO COMPLETE PROJECT REMAINING PRIOR YEAR FUNDS Design $40,000 Construction $160,000 CURRENT REQUEST 001 General Fund 125 Park Recreation Facility Tax Fund $100,000 $100,000 PROJECT TOTAL: $200,000 TOTAL FY 14-15 CIP FUNDING: $200,000 7 Goal CIP NO.PROJECT NAME General Fund State Gas Tax Fund Tyco fund Tyco Tidelands Park/Rec Facility Tax Fund CDBG Funds Measure R Fund Grant Fund Sewer Fund Bayview Drive Undergr District Impr Fund Capital Improvement Fund Equipment Replacement Fund Surf Memorial Trust TOTAL Current Year Request TOTAL CIP FUNDING FY 14-15 001 115 122 123 125 140 147 150 160 309 301 715 Fund Amount 001 216,362 216,362 115 77,298 77,298 147 5,000 5,000 301 10,664 10,664 309,324 3 14-128 Street Improvements -- Various Locations 230,000 204,078 228,000 349,079 16,843 1,028,000 1,028,000 53,135 53,135 301 21,865 75,000 75,000 1 1 150,000 150,000 115 30,543 30,543 146 263,352 263,352 147 528,814 528,814 972,709 1 12-153 Fire Station Traffic Signal 17,000 17,000 001 35,400 52,400 147 156,023 156,023 150 95,261 95,261 251,284 1 14-163 Protective Bollards Along the Strand 25,000 25,000 25,000 4 14-168 Valley Drive Sharrows 20,000 137,208 2 157,208 157,208 1 14-173 8th Street SR2S Improvements 67,000 67,000 67,000 292,000 204,078 295,000 0 0 0 349,079 137,208 0 0 69,978 0 0 1,280,343 1,590,582 2,937,925 160 172,964 172,964 301 78,711 78,711 251,675 3 14-402 Sewer Improvements -- Various Locations 149,381 83,532 0 262,454 24,148 519,515 519,515 149,381 0 83,532 0 0 0 0 0 262,454 0 24,148 0 0 519,515 251,675 771,190 001 182,860 182,860 289,110 289,110 121 80,000 369,110 125 28,030 28,030 580,000 4 13-538 Citywide Park Master Plan 83,592 83,592 125 60,261 143,853 4 14-539 Valley Park Playground Surface Renovation 21,128 21,128 21,128 4 14-541 Clark Field Energy Efficient Electrical Upgrades - Phase II 100,000 100,000 200,000 200,000 183,592 0 0 0 410,238 0 0 0 0 0 0 0 0 593,830 351,151 944,981 TOTAL FOR PROJECT 3 PARK IMPROVEMENTS SUBTOTAL Sewer Improvements -- Various Locations South Park Playground Improvement11-5374 TOTAL FOR PROJECT TOTAL FOR PROJECT TOTAL FOR PROJECT Street Improvements -- Various Locations City of Hermosa Beach DEPARTMENT OF PUBLIC WORKSCAPITAL IMPROVEMENT PROGRAM - FY2014-15 Remaining Prior Year Funding TOTAL FOR PROJECT STREET AND HIGHWAY IMPROVEMENTS 3 TOTAL FOR PROJECT PCH Traffic Improvements 13-127 12-160 SEWER/STORM DRAIN IMPROVEMENTS 13-401 STREET AND HIGHWAY IMPROVEMENTS SUBTOTAL SEWER/STORM DRAIN IMPROVEMENTS SUBTOTAL PARK IMPROVEMENTS 3 5 3 12-143 11-141 PCH/Aviation Beautification Gould Avenue Street Improvements 8 Goal CIP NO.PROJECT NAME General Fund State Gas Tax Fund Tyco fund Tyco Tidelands Park/Rec Facility Tax Fund CDBG Funds Measure R Fund Grant Fund Sewer Fund Bayview Drive Undergr District Impr Fund Capital Improvement Fund Equipment Replacement Fund Surf Memorial Trust TOTAL Current Year Request TOTAL CIP FUNDING FY 14-15 001 115 122 123 125 140 147 150 160 309 301 715 Fund Amount City of Hermosa Beach DEPARTMENT OF PUBLIC WORKSCAPITAL IMPROVEMENT PROGRAM - FY2014-15 Remaining Prior Year Funding 32,240 32,240 001 1,000 33,240 0 125 46,760 46,760 80,000 5 12-609 Downtown Strategic Plan Implementation 160,000 160,000 160,000 1 13-606 Fire Station Renovation and Upgrades 001 23,178 23,178 1 14-614 Police Facilities Improvements 93,800 93,800 93,800 1 14-632 Fire Department Tower Demolition 220,000 220,000 220,000 0 125 50,112 50,112 58,134 58,134 301 16,954 75,088 125,200 1 13-655 City Facilities ADA Improvements 20,000 56,100 76,100 140 70,059 146,159 0 001 10,716 10,716 125,479 3,318 128,797 122 173,805 302,602 313,318 4 10-661 Surfing Memorial Statue 328,058 328,058 001 1,242 329,300 5 13-664 Comprehensive City Facilities Master Plan 100,000 100,000 001 55,739 155,739 631,934 0 145,479 3,318 32,240 56,100 0 0 0 0 0 426,077 328,058 1,623,206 449,565 2,072,771 1,256,907 204,078 524,011 3,318 442,478 56,100 349,079 137,208 262,454 0 94,126 426,077 328,058 4,016,894 2,642,973 6,726,867 Prior Year Current Year Total 001 General Fund $ 895,373 1,198,773$ Reserve, 2012 CDBG Fund Exchange 58,134$ 2,152,280$ Goals: 115 State Gas Tax Fund $ 227,298 204,078$ 431,376$ 121 Prop A Open Space Fund $ 80,000 -$ 80,000$ 1122Tyco Fund $ 173,805 524,011$ 697,816$ 2123 Tyco Tidelands 3,318$ 3,318$ 3 High Performing City Providing 1st Class Services 125 Park/Rec Facility Tax Fund $ 139,403 442,478$ 581,881$ 4140CDBG Funds $ 70,059 56,100$ 126,159$ 5145Prop A Fund $ 30,543 30,543$ 146 Proposition C Fund $ 263,352 -$ 263,352$ 147 Measure R Fund $ 372,385 349,079$ 721,464$ 150 Grants Fund $ 95,261 $ 137,208 232,469$ 160 Sewer Fund $ 172,964 $ 262,454 435,418$ 1 301 Capital Improvement Fund $ 122,530 94,126$ 216,656$ 715 Equipment Replacement Fund 426,077$ 426,077$ Surf Memorial Trust 328,058$ 328,058$ $ 2,642,973 4,083,894$ 6,726,867$ 1 2 STP-L Fund Reserve 3 TOTAL FOR PROJECT TOTAL FOR PROJECT 4 11-602 Citywide Energy Conservation Upgrades413-656 PUBLIC BUILDING AND GROUND IMPROVEMENTS TOTAL FOR PROJECT 426,077 426,077 426,077 # 13-6494 Community Center General Improvements-Phase II Chevron Funds, Coke Drum Project, $150,000 Advance from Equipment Replacement Fund Fund, Reimbursable from SCE Financially Sound City GovernmentCommitment to a Safe Community Enhanced Economic Development Through Revitalized Downtown And Entry Corridors Clark Field Energy Efficient Electrical Upgrades-Phase I Municipal Pier Structural Repairs – Phase II PUBLIC BUILDING AND GROUND IMPROVEMENTS SUBTOTAL FUND TOTALS 1 13-659 More Livable, Sustainable City 9 FY 14-152 FY15-16 FY16-17 FY 17-18 FY 18-19 UNFUNDED AMOUNT TOTALS 309,324 309,324 1,028,000 1,018,000 1,025,000 1,021,000 1,016,000 4,080,000 1 5,108,000 75,000 875,000 875,000 1 950,000 972,709 25,509,606 1 26,482,315 52,400 52,400 251,284 1,010,716 1,010,716 1 1,262,000 25,000 25,000 157,208 57,792 1 215,000 67,000 577,390 577,390 1 644,390 50,000 50,000 2,937,925 3,481,106 1,025,000 1,021,000 1,016,000 32,160,504 35,098,429 251,675 251,675 519,515 400,000 400,000 400,000 400,000 1,660,366 1 2,179,881 12,375,000 12,375,000 14,000,000 14,000,000 771,190 400,000 400,000 400,000 400,000 28,035,366 28,806,556 580,000 580,000 143,853 15,308,147 1 15,452,000 21,128 21,128 200,000 200,000 944,981 0 0 0 0 15,308,147 16,253,128 1 2 CIP 14-541 Clark Field Energy Efficient Electrical Upgrades - Phase II SUBTOTAL See FY14-15 Project Detail sheets regarding future unfunded project amounts Detail sheets for all projects with 2014-15 amounts are included only in the 2014-15 section and are not included in the 5 Year CIP section Sewer Replacement Program SUBTOTAL PARKS IMPROVEMENTS CIP 11-537 South Playground Improvement CIP 13-538 Citywide Park Master Plan CIP 14-539 Valley Park Playground Surface Renovation CIP 14-402 Sewer Improvements - Various Locations Stormwater/Urban Run-off Diversion Project CIP 14-168 Valley Drive Sharrows Traffic Calming Program SUBTOTAL SEWER/STORM DRAIN IMPROVEMENTS CIP 13-401 Sewer Improvements - Various Locations CIP 14-173 8th Street Safe Route To School Improvements CIP 13-127 Street Improvements - Various Locations CIP 14-128 Street Improvements CIP 14-163 Protective Bollards Along Strand PROJECT NAME STREET AND HIGHWAY IMPROVEMENTS CIP 11-141 Gould Avenue (from Manahttan Ave. to PCH) CIP 12-143 PCH/Aviation Beautification Project CIP 12-153 Fire Station Traffic Signal CIP 12-160 PCH Traffic Improvements 10 FY 14-152 FY15-16 FY16-17 FY 17-18 FY 18-19 UNFUNDED AMOUNT TOTALSPROJECT NAME 80,000 120,000 120,000 240,000 1 320,000 23,178 23,178 160,000 4,840,000 1 5,000,000 93,800 93,800 220,000 220,000 125,200 90,000 90,000 180,000 1 305,200 146,159 146,159 426,077 150,000 150,000 150,000 150,000 600,000 1 1,026,077 313,318 200,000 100,000 100,000 100,000 500,000 1 813,318 329,300 329,300 155,739 155,739 7,200,000 7,200,000 845,000 845,000 29,200,000 29,200,000 6,200,000 6,200,000 6,750,000 6,750,000 18,750,000 18,750,000 7,800,000 7,800,000 2,072,771 560,000 460,000 250,000 250,000 83,105,000 85,177,771 6,726,867 158,609,017 165,335,884 1 2 See FY14-15 Project Detail sheets regarding future unfunded project amounts Police Building General Improvement Fire Station Replacement Community Center General Improvements City Hall General Improvements SUBTOTAL ANNUAL PROJECT COST TOTALS CIP 13-655 City Facilities ADA Transition Plan & Improvements CIP 13-656 Citywide Energy Conservation Upgrades CIP 13-659 Municipal Pier Structure Repairs - Phase II CIP 13-664 Comprehensive City Facilities Master Plan Detail sheets for all projects with 2014-15 amounts are included only in the 2014-15 section and are not included in the 5 Year CIP section CIP 14-614 Police Facilities Improvements CIP 14-632 Fire Department Tower Demolition CNG Fueling Station New Corporate Yard Facility Community Center Theatre Upgrade PUBLIC BUILDINGS AND GROUNDS IMPROVEMENTS CIP 10-661 Surf Memorial CIP 11-602 Clark Field Energy Efficient Electrical Upgrades CIP 12-609 Downtown Strategic Plan Implementation CIP 13-606 Fire Station Renovation and Upgrades CIP 13-649 Community Center General Improvements 11 RESOLUTION NO. 14-XXXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA ADOPTING THE BUDGET FOR THE FISCAL YEAR 2014-2015 WHEREAS, a budget for the fiscal year 2014-2015 has been prepared by the City Manager, and; WHEREAS, said budget incorporates expenditures for operating purposes, capital outlay and capital improvement projects, and; WHEREAS, said final budget will include the appropriations limit and total annual appropriations subject to limitation as required by Section 37200 of the Government Code, and; WHEREAS, the City Council has examined said budget and, after due deliberation and consideration, has made such amendments to the budget as it deems advisable. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA DOES RESOLVE AS FOLLOWS: SECTION 1. That the City Council does hereby approve and adopt the revised budget for the 2014-2015 Fiscal Year as presented in the documents entitled “City of Hermosa Beach Budget Summary 2014-2015”, and attached as “Exhibit A.” PASSED, APPROVED and ADOPTED this 24th day of June 2014. ________________________________________________________________________ PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: ________________________________ _______________________________ City Clerk City Attorney 12 LIGHTING GENERAL LANDSCAPING STATE GASFUND FUND TAX FUND 001 105 115 ESTIMATED REVENUE Taxes $22,834,507 $468,150 $0Licenses/Permits $795,240 $0 $0 Fines/Forfeitures $2,748,289 $0 $0Use of Money/Property $870,435 $737 $5,020Intergovernmental/State $97,179 $0 $497,030Intergovernmental/County $0 $0 $0Intergovernmental/Federal $22,162 $0 $0Current Service Charges $6,221,771 $0 $0Other Revenue $249,858 $0 $0 TOTAL ESTIMATED REVENUE $33,839,441 $468,887 $502,050 INTERFUND TRANSFERS IN $345,641 $6,479 $0 ESTIMATED FUNDS AVAILABLE $34,185,082 $475,366 $502,050 ESTIMATED FUND BALANCE 7/1/14 $6,458,358 $76,404 $0 REMAINING PRIOR YEAR CIP $676,497 $0 $107,841 TOTAL FUNDS AVAILABLE $41,319,937 $551,770 $609,891 APPROPRIATIONS Operating Budget $30,490,301 $543,425 $0Capital Outlay $29,295 $0 $0 Capital Improvements $1,933,404 $0 $311,919 TOTAL APPROPRIATIONS $32,453,000 $543,425 $311,919 INTERFUND TRANSFERS OUT $856,832 $8,345 $297,972 TOTAL APPROPRIATIONS/TRANSFERS OUT $33,309,832 $551,770 $609,891 ADJUST FUND BALANCE FOR FIXED ASSET ADDITIONS 1 ESTIMATED FUND BALANCE 6/30/15 $8,010,105 (a)$0 $0 (a) CLASSIFICATIONS OF FUND BALANCE: Restricted Prior Balance Current Balance Affordable Housing $41,831 $0 General Plan Maintenance Fees (6/30/15)$0 $63,000 Verizon PEG Grant $2,860 $18,860 Greenwald Theatre Improvement Donation $45,000 $45,000 CDBG Fund Exchange 2012- Lawndale $58,134 $0 CDBG Fund Exchange 2013- La Mirada $55,739 $0 Committed Clark Building Future Renovations $1,000 $0 Capital Outlay -Parking Facilities $9,592 $0 In Lieu Fee/ Parking Facility $28,900 Assigned Beach/Plaza Promotions (12/31/12)$13,472 $13,472 Beach/Plaza Promotions (Estimated 6/30/13-6/30/14)$20,000 Contingencies $4,858,893 Retirement Rate Stabilization $1,000,000 Debt Service- Oil $1,000,000 Unspecified Contingencies $500,000 Compensated Absences $297,262 Sales Tax Receivable - Due 01/15 $164,718 $8,010,105 Available Fund Balance 6/30/15 $0 $0 $0 CITY OF HERMOSA BEACH BUDGET SUMMARY 2014-15 13 PROP A TYCO AB 939 OPEN SPACE TYCO TIDELANDSFUND FUND FUND FUND 117 121 122 123 ESTIMATED REVENUE Taxes $0 $0 $0 $0Licenses/Permits $0 $0 $0 $0 Fines/Forfeitures $0 $0 $0 $0Use of Money/Property $343 $0 $316,169 $46Intergovernmental/State $0 $20,557 $0 $0Intergovernmental/County $0 $0 $0Intergovernmental/Federal $0 $0 $0 $0Current Service Charges $61,130 $0 $0 $0Other Revenue $0 $0 $0 $0 TOTAL ESTIMATED REVENUE $61,473 $20,557 $316,169 $46 INTERFUND TRANSFERS IN $0 $0 $0 $0 ESTIMATED FUNDS AVAILABLE $61,473 $20,557 $316,169 $46 ESTIMATED FUND BALANCE 7/1/14 $0 $0 $232,126 $3,272 REMAINING PRIOR YEAR CIP $0 $80,000 $173,805 $0 TOTAL FUNDS AVAILABLE $61,473 $100,557 $722,100 $3,318 APPROPRIATIONS Operating Budget $59,372 $0 $0 $0Capital Outlay $0 $0 $0 $0 Capital Improvements $0 $80,000 $697,816 $3,318 TOTAL APPROPRIATIONS $59,372 $80,000 $697,816 $3,318 INTERFUND TRANSFERS OUT $0 $20,557 $0 $0 TOTAL APPROPRIATIONS/TRANSFERS OUT $59,372 $100,557 $697,816 $3,318 ADJUST FUND BALANCE FOR FIXED ASSET ADDITIONS 1 ESTIMATED FUND BALANCE 6/30/15 $2,101 $0 $24,284 $0 Available Fund Balance 6/30/15 $2,101 $0 $24,284 $0 CITY OF HERMOSA BEACH BUDGET SUMMARY 2104-15 14 PARK/BAYVIEW DRIVE LOWER PIER MYRTLE DISTRICT RECREATION DISTRICT ADMIN ADMINISTRATIVE ADMINISTRATIVE FACILITY TAX EXPENSE EXPENSE EXPENSE FUND FUND FUND FUND 125 135 136 137 ESTIMATED REVENUE Taxes $7,019 $0 $0 $0Licenses/Permits $0 $0 $0 $0 Fines/Forfeitures $0 $0 $0 $0Use of Money/Property $2,482 $22 $0 $155Intergovernmental/State $0 $0 $0 $0Intergovernmental/County $0 $0 $0 $0Intergovernmental/Federal $0 $0 $0 $0Current Service Charges $0 $0 $0 $0Other Revenue $219,261 $4,350 $2,600 $9,000 TOTAL ESTIMATED REVENUE $228,762 $4,372 $2,600 $9,155 INTERFUND TRANSFERS IN $0 $0 $0 $0 ESTIMATED FUNDS AVAILABLE $228,762 $4,372 $2,600 $9,155 ESTIMATED FUND BALANCE 7/1/14 $267,130 $2,157 $4,746 $11,248 REMAINING PRIOR YEAR CIP $185,163 $0 $0 $0 TOTAL FUNDS AVAILABLE $681,055 $6,529 $7,346 $20,403 APPROPRIATIONS Operating Budget $0 $2,841 $1,813 $6,760Capital Outlay $0 $0 $0 $0 Capital Improvements $639,121 $0 $0 $0 TOTAL APPROPRIATIONS $639,121 $2,841 $1,813 $6,760 INTERFUND TRANSFERS OUT $0 $3,653 $2,249 $5,264 TOTAL APPROPRIATIONS/TRANSFERS OUT $639,121 $6,494 $4,062 $12,024 ADJUST FUND BALANCE FOR FIXED ASSET ADDITIONS 1 ESTIMATED FUND BALANCE 6/30/15 $41,934 $35 $3,284 $8,379 Available Fund Balance 6/30/15 $41,934 $35 $3,284 $8,379 CITY OF HERMOSA BEACH BUDGET SUMMARY 2014-15 15 LOMA DISTRICT BEACH DRIVE DISTRICT ADMINISTRATIVE ADMINISTRATIVE COMMUNITY / DEV PROPOSITION EXPENSE EXPENSE BLOCK GRANT AFUNDFUNDFUND 138 139 140 145 ESTIMATED REVENUE Taxes $0 $0 $344,137Licenses/Permits $0 $0 $0 Fines/Forfeitures $0 $0 $0Use of Money/Property $211 $27 $3,597Intergovernmental/State $0 $0 $0Intergovernmental/County $0 $0 $0Intergovernmental/Federal $0 $0 $66,000 $0Current Service Charges $0 $0 $6,646Other Revenue $10,000 $3,000 $0 TOTAL ESTIMATED REVENUE $10,211 $3,027 $66,000 $354,380 INTERFUND TRANSFERS IN $0 $0 $0 $0 ESTIMATED FUNDS AVAILABLE $10,211 $3,027 $66,000 $354,380 ESTIMATED FUND BALANCE 7/1/14 $16,509 $2,323 $0 $209,200 REMAINING PRIOR YEAR CIP $0 $0 $70,059 $263,352 TOTAL FUNDS AVAILABLE $26,720 $5,350 $136,059 $826,932 APPROPRIATIONS Operating Budget $7,621 $2,275 $9,900 $184,024Capital Outlay $0 $0 $0 $0 Capital Improvements $0 $0 $126,159 $263,352 TOTAL APPROPRIATIONS $7,621 $2,275 $136,059 $447,376 INTERFUND TRANSFERS OUT $5,710 $1,891 $0 $0 TOTAL APPROPRIATIONS/TRANSFERS OUT $13,331 $4,166 $136,059 $447,376 ADJUST FUND BALANCE FOR FIXED ASSET ADDITIONS 1 ESTIMATED FUND BALANCE 6/30/15 $13,389 $1,184 $0 $379,556 Available Fund Balance 6/30/15 $13,389 $1,184 $0 $379,556 2014-15 CITY OF HERMOSA BEACH BUDGET SUMMARY 16 PROPOSITION AIR QUALITY C MEASURE R GRANTS IMPROVEMENTFUNDFUNDFUND FUND 146 147 150 152 ESTIMATED REVENUE Taxes $285,452 $214,092 $0 $0Licenses/Permits $0 $0 $0 $0 Fines/Forfeitures $0 $0 $0 $0Use of Money/Property $6,147 $4,505 $0 $964Intergovernmental/State $0 $0 $110,270 $22,500Intergovernmental/County $0 $0 $0 $0Intergovernmental/Federal $0 $0 $200,000 $0Current Service Charges $0 $0 $0 $0Other Revenue $0 $0 $0 $0 TOTAL ESTIMATED REVENUE $291,599 $218,597 $310,270 $23,464 INTERFUND TRANSFERS IN $0 $0 $0 $0 ESTIMATED FUNDS AVAILABLE $291,599 $218,597 $310,270 $23,464 ESTIMATED FUND BALANCE 7/1/14 $209,512 $130,482 $156,453 $14,974 REMAINING PRIOR YEAR CIP $528,814 $161,023 $95,261 $0 TOTAL FUNDS AVAILABLE $1,029,925 $510,102 $561,984 $38,438 APPROPRIATIONS Operating Budget $30,848 $0 $310,270 $3,600Capital Outlay $0 $0 $0 $0 Capital Improvements $528,814 $510,102 $232,469 $0 TOTAL APPROPRIATIONS $559,662 $510,102 $542,739 $3,600 INTERFUND TRANSFERS OUT $0 $0 $0 $0 TOTAL APPROPRIATIONS/TRANSFERS OUT $559,662 $510,102 $542,739 $3,600 ADJUST FUND BALANCE FOR FIXED ASSET ADDITIONS 1 ESTIMATED FUND BALANCE 6/30/15 $470,263 $0 $19,245 $34,838 Available Fund Balance 6/30/15 $470,263 $0 $19,245 $34,838 CITY OF HERMOSA BEACH BUDGET SUMMARY 2014-15 17 SUPPLEMENTAL LAW ENFORCEMENT ASSET SEIZURE/FIRE SERVICES SEWER FORFEITURE PROTECTIONFUNDFUNDFUNDFUND 153 160 170 180 ESTIMATED REVENUE Taxes $100,000 $0 $0 $0Licenses/Permits $0 $0 $0 $0 Fines/Forfeitures $0 $0 $37,000 $0Use of Money/Property $1,572 $10,822 $3,173 $298Intergovernmental/State $0 $5,422 $0 $0Intergovernmental/County $0 $10,000 $0 $0Intergovernmental/Federal $0 $0 $0 $0Current Service Charges $0 $30,000 $0 $0Other Revenue $0 $0 $0 $10,500 TOTAL ESTIMATED REVENUE $101,572 $56,244 $40,173 $10,798 INTERFUND TRANSFERS IN $0 $850,353 $0 $0 ESTIMATED FUNDS AVAILABLE $101,572 $906,597 $40,173 $10,798 ESTIMATED FUND BALANCE 7/1/14 $819 $187,524 $280,194 $25,704 REMAINING PRIOR YEAR CIP $0 $172,964 $0 $0 TOTAL FUNDS AVAILABLE $102,391 $1,267,085 $320,367 $36,502 APPROPRIATIONS Operating Budget $23,681 $831,667 $6,700 $0Capital Outlay $0 $0 $600 $0 Capital Improvements $0 $435,418 $0 $0 TOTAL APPROPRIATIONS $23,681 $1,267,085 $7,300 $0 INTERFUND TRANSFERS OUT $0 $0 $0 $0 TOTAL APPROPRIATIONS/TRANSFERS OUT $23,681 $1,267,085 $7,300 $0 ADJUST FUND BALANCE FOR FIXED ASSET ADDITIONS 1 ESTIMATED FUND BALANCE 6/30/15 $78,710 $0 $313,067 $36,502 (c) CLASSIFICATION OF FUND BALANCE Restricted Designated Dept of Justice Funds$146,053 Designated Dept of Treasurer Funds$17,441 Available Fund Balance 6/30/15 $78,710 $0 $149,573 $36,502 CITY OF HERMOSA BEACH BUDGET SUMMARY 2014-15 18 BAYVIEW DRIVE LOWER PIER CAPITAL DISTRICT DISTRICT IMPROVEMENT REDEMPTION REDEMPTIONFUNDFUNDFUND 301 609 610 ESTIMATED REVENUE Taxes $0 $0 $0Licenses/Permits $0 $0 $0 Fines/Forfeitures $0 $0 $0Use of Money/Property $8,431 $1,160 $384Intergovernmental/State $0 $0 Intergovernmental/County $0 $0 $0Intergovernmental/Federal $0 $0 $0Current Service Charges $0 $0 $0Other Revenue $10,150 $0 $0 TOTAL ESTIMATED REVENUE $18,581 $1,160 $384 INTERFUND TRANSFERS IN $0 $0 $0 ESTIMATED FUNDS AVAILABLE $18,581 $1,160 $384 ESTIMATED FUND BALANCE 7/1/14 $1,624,184 $140,647 $4,880 REMAINING PRIOR YEAR CIP $128,194 $0 $0 TOTAL FUNDS AVAILABLE $1,770,959 $141,807 $5,264 APPROPRIATIONS Operating Budget $0 $0 $0Capital Outlay $0 $0 $0 Capital Improvements $222,320 $0 $0 TOTAL APPROPRIATIONS $222,320 $0 $0 INTERFUND TRANSFERS OUT $0 $0 $0 TOTAL APPROPRIATIONS/TRANSFERS OUT $222,320 $0 $0 ADJUST FUND BALANCE FOR FIXED ASSET ADDITIONS 1 ESTIMATED FUND BALANCE 6/30/15 $1,548,639 $141,807 $5,264 Available Fund Balance 6/30/15 $1,548,639 $141,807 $5,264 CITY OF HERMOSA BEACH BUDGET SUMMARY 2014-15 19 BEACH DRIVE BEACH DRIVE MYRTLE LOMA DISTRICT DISTRICT AVENUE DRIVE REDEMPTION RESERVE ASSESSMENT ASSESSMENTFUNDFUNDFUNDFUND 611 612 617 618 ESTIMATED REVENUE Taxes $0 $0 $0 $0Licenses/Permits $0 $0 $0 $0 Fines/Forfeitures $0 $0 $0 $0Use of Money/Property $597 $86 $822 $1,053Intergovernmental/State $0 $0 $0 $0Intergovernmental/County $0 $0 $0 $0Intergovernmental/Federal $0 $0 $0 $0Current Service Charges $0 $0 $0 $0Other Revenue $0 $0 $0 $0 TOTAL ESTIMATED REVENUE $597 $86 $822 $1,053 INTERFUND TRANSFERS IN $0 $0 $0 $0 ESTIMATED FUNDS AVAILABLE $597 $86 $822 $1,053 ESTIMATED FUND BALANCE 7/1/14 $70,410 $4,091 $14,060 $19,201 REMAINING PRIOR YEAR CIP $0 $0 $0 $0 TOTAL FUNDS AVAILABLE $71,007 $4,177 $14,882 $20,254 APPROPRIATIONS Operating Budget $0 $0 $0 $0Capital Outlay $0 $0 $0 $0 Capital Improvements $0 $0 $0 $0 TOTAL APPROPRIATIONS $0 $0 $0 $0 INTERFUND TRANSFERS OUT $0 $0 $0 $0 TOTAL APPROPRIATIONS/TRANSFERS OUT $0 $0 $0 $0 ADJUST FUND BALANCE FOR FIXED ASSET ADDITIONS 1 ESTIMATED FUND BALANCE 6/30/15 $71,007 $4,177 $14,882 $20,254 Available Fund Balance 6/30/15 $71,007 $4,177 $14,882 $20,254 CITY OF HERMOSA BEACH BUDGET SUMMARY 2014-15 20 BAYVIEW DRIVE EQUIPMENT RESERVE INSURANCE REPLACEMENT TOTALFUNDFUNDFUND(MEMORANDUM 619 705 715 ONLY) ESTIMATED REVENUE Taxes $0 $0 $0 $24,253,357Licenses/Permits $0 $0 $0 $795,240 Fines/Forfeitures $0 $0 $0 $2,785,289Use of Money/Property $192 $0 $0 $1,239,450Intergovernmental/State $0 $0 $0 $752,958Intergovernmental/County $0 $0 $0 $10,000Intergovernmental/Federal $0 $0 $0 $288,162Current Service Charges $0 $2,782,847 $1,518,864 $10,621,258Other Revenue $0 $0 $426,077 $944,796 TOTAL ESTIMATED REVENUE $192 $2,782,847 $1,944,941 $41,690,510 INTERFUND TRANSFERS IN $0 $0 $0 $1,202,473 ESTIMATED FUNDS AVAILABLE $192 $2,782,847 $1,944,941 $42,892,983 ESTIMATED FUND BALANCE 7/1/14 $13,443 $7,896,849 $5,373,000 $23,449,900 REMAINING PRIOR YEAR CIP $0 $0 $0 $2,642,973 TOTAL FUNDS AVAILABLE $13,635 $10,679,696 $7,317,941 $68,985,856 APPROPRIATIONS Operating Budget $0 $2,773,695 $1,838,877 $37,127,670Capital Outlay $0 $0 $671,356 $701,251 Capital Improvements $0 $0 $426,077 $6,410,289 TOTAL APPROPRIATIONS $0 $2,773,695 $2,936,310 $44,239,210 INTERFUND TRANSFERS OUT $0 $0 $0 $1,202,473 TOTAL APPROPRIATIONS/TRANSFERS OUT $0 $2,773,695 $2,936,310 $45,441,683 ADJUST FUND BALANCE FOR FIXED ASSET ADDITIONS 1 $671,356 $671,356 ESTIMATED FUND BALANCE 6/30/15 $13,635 $7,906,001 2 $5,052,987 $24,215,529 Potential Contingencies (d) Investment In Oil Settlement Fixed Assets $2,500,000 $3,017,548 $507,775 Designated Building Maintenance Funds Available Fund Balance 6/30/15 $13,635 $5,406,001 $1,527,664 $10,016,607 1 Reflects increase to fund balance for fixed asset purchases Internal Service Funds. 2 $3,500,000 recorded as liability for a total of $6,000,000 for the Contingency for Oil Settlement CITY OF HERMOSA BEACH BUDGET SUMMARY 2014-15 21 June 11, 2014 Honorable Mayor and Members of City Council Meeting of the Hermosa Beach City Council June 24, 2014 ADOPTION OF THE 2014-15 APPROPRIATION LIMIT Recommendation: It is recommended that the City Council adopt Resolution 14-xxxx setting the 2014-2015 appropriation limit. Background: In November of 1979, Article XIII B of the California State Constitution was added by the voters through Proposition 4. This Article established limits, using a formula, on state and local governments for appropriation of revenue from tax proceeds. On June 5, 1990, Proposition 111, modified the method of calculating the limit, beginning with fiscal year 1990-91, to allow the City to choose the most beneficial of two adjustment factors for inflation and population as follows: Inflation California Per Capita Personal Income Change or Increase in Non-Residential Assessed Valuation Due to New Construction. Population City Population Growth or County Population Growth. Proposition 111 also implemented a requirement that our Appropriation Limit be reviewed annually by our independent auditor. Analysis: The 2014-2015 limit was calculated, per the League of California Cities Uniform Guidelines, by applying the population and inflation factors to the prior year limit. The County of Los Angeles Population Change of .78% was used as the population growth factor since it is greater than the population increase of .43% for the City. The Increase in Non-Residential Assessed Valuation Due to New Construction of 1.31% was used as the California Per Capita Personal Income Change is -.23%.The factor with the largest change is always chosen to give the City maximum discretion with regard to appropriations. The law requires adoption of the 2014-2015 limit by resolution and a recorded vote of the Council to select annual adjustment factors. The choice is set forth in the attached resolution. 1 2 RESOLUTION NO. 14-XXXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, APPROVING AND ADOPTING THE ANNUAL APPROPRIATION LIMIT FOR THE FISCAL YEAR 2014-2015 WHEREAS, the voters of California, on November 6, 1979, added Article XIII B to the State Constitution, placing various limitations on appropriations of state and local governments; and WHEREAS, Article XIII B provides that the appropriation limit for the fiscal year 2014-2015 is calculated by adjusting the base year appropriation of fiscal year 1978-79 and subsequent years for changes in the cost of living and population; and WHEREAS, Proposition 111 (Section 1.5 of Article XIII B), enacted by the voters on June 5, 1990, modified the method of calculating the limit, beginning with fiscal year 1990-91; and WHEREAS, the City of Hermosa Beach has complied with all of the provisions of Article XIII B in determining the appropriation limit for fiscal year 2014-15; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES RESOLVE AS FOLLOWS; SECTION 1. That the City of Hermosa Beach chooses to use the Increase in Non-Residential Assessed Valuation Due to New Construction as the inflation adjustment factor for fiscal year 2014-2015. SECTION 2. The City of Hermosa Beach chooses to use the Change in Population for the County of Los Angeles as the growth adjustment factor for fiscal year 2014-2015. 3 SECTION 3. The City of Hermosa Beach uses the Uniform Guidelines published by the League of California Cities in March 1991 to determine the limit and appropriation subject to the limit. SECTION 4. Documentation for calculation of the limit is on file in the Finance Department and will be reviewed by the City’s auditors during the annual financial audit, as required by Proposition 111. SECTION 5. The appropriation limit for the City of Hermosa Beach for fiscal year 2014-2015 is $33,285,816. PASSED, APPROVED and ADOPTED this 24th day of June 2014. ______________________________________________________ PRESIDENT of the City Council, and MAYOR of the City of Hermosa Beach, California ATTEST: _______________________________CITY CLERK 4 CITY OF HERMOSA BEACH2014-15 CALCULATION OF APPROPRIATION LIMITHISTORY OF LIMITATION 2007-08Per Capita Income Change =4.42%>1.0515County of Los Angeles Population Change =0.72%Limitation $24,853,472 2008-09Per Capita Income Change =4.29%>1.0519County of Los Angeles Population Change =0.86%Limitation $26,143,367 2009-10 Increase in non-residential assessed valuation dueto new construction =0.88%>1.0179County of Los Angeles Population Change =0.90%Limitation $26,611,333 2010-11 Increase in non-residential assessed valuation dueto new construction =1.01%>1.019City of Hermosa Beach Population Change =0.94%Limitation $27,116,948 2011-12Increase in non-residential assessed valuation due to new construction =2.75% >1.0314County of Los Angeles Population Change =0.38%Limitation $27,968,420 2012-13Increase in non-residential assessed valuation dueto new construction =9.71% >1.101268 County of Los Angeles Population Change =0.38%Limitation $30,800,726 2013-14Per Capita Income Change =5.12%>1.05845328County of Los Angeles Population Change =0.69%Limitation $32,601,127 2014-15Increase in non-residential assessed valuation dueto new construction =1.31%>1.021002County of Los Angeles Population Change =0.78%Limitation $33,285,816 5 CITY OF HERMOSA BEACH2014-15 CALCULATION OF APPROPRIATION LIMITHISTORY OF LIMITATION 1997-98Per Capita Income Change =4.67%>1.0597County of Los Angeles Population Change = 1.24%Limitation $14,306,861 1998-99 Per Capita Income Change =4.15%>1.0604County of Los Angeles Population Change = 1.81%Limitation $15,170,995 1999-00Per Capita Income Change =4.53%>1.0639 County of Los Angeles Population Change = 1.78%Limitation $16,140,422 2000-01Per Capita Income Change =4.91%>1.0675County of Los Angeles Population Change = 1.75%Limitation $17,229,900 2001-02Per Capita Income Change =7.82%>1.0961County of Los Angeles Population Change = 1.66%Limitation $18,885,693 2002-03 Increase in non-residential assessed valuation due to new construction =1.00%>1.0299City of Hermosa Beach Population Change =1.97%Limitation $19,450,375 2003-04Per Capita Income Change =2.31% >1.0401County of Los Angeles Population Change = 1.66%Limitation $20,230,335 2004-05Per Capita Income Change = 3.28%>1.0471County of Los Angeles Population Change = 1.38% Limitation $21,183,184 2005-06Per Capita Income Change =5.26%>1.0650County of Los Angeles Population Change =1.18%Limitation $22,560,091 2006-07 Per Capita Income Change =3.96%>1.0477County of Los Angeles Population Change =0.78%Limitation $23,636,207 6 CITY OF HERMOSA BEACH2014-15 CALCULATION OF APPROPRIATION LIMITHISTORY OF LIMITATION Limitation for 1986-87 Fiscal Year $8,609,437 1987-88Per Capita Income Change =3.47%>1.0544County of Los Angeles Population Change = 1.91%Limitation $9,077,790 1988-89Per Capita Income Change =4.66%>1.0655County of Los Angeles Population Change = 1.81%Limitation $9,672,386 1989-90Per Capita Income Change =5.19% >1.0638County of Los Angeles Population Change = 1.14%Limitation $10,289,484 1990-91Per Capita Income Change =4.21%>1.0562County of Los Angeles Population Change = 1.36% Limitation $10,867,753 1991-92Per Capita Income Change =4.14%>1.0594County of Los Angeles Population Change = 1.73%Limitation $11,513,297 1992-93 Per Capita Income Change =-0.64%>1.0084County of Los Angeles Population Change = 1.49%Limitation $11,610,009 1993-94Per Capita Income Change =2.72%>1.0371 County of Los Angeles Population Change = 0.96%Limitation $12,040,740 1994-95Per Capita Income Change =0.71%>1.0147County of Los Angeles Population Change = 0.75%Limitation $12,217,739 1995-96Per Capita Income Change =4.72%>1.0507County of Los Angeles Population Change = 0.33% Limitation $12,837,178 1996-97Per Capita Income Change =4.67%>1.0517County of Los Angeles Population Change = 0.48%Limitation $13,500,860 7 June 10, 2014 Honorable Mayor and Members of Regular Meeting of The Hermosa Beach City Council June 24, 2014 PUBLIC HEARING - HERMOSA BEACH LANDSCAPING AND STREET LIGHTING DISTRICT FY 14-15 Recommendation: It is recommended that the City Council: 1. Conduct a Public Hearing in connection with the levy of assessments for FY 14-15; and 2. Adopt the attached Resolution confirming the diagram and assessment for Hermosa Beach Landscaping & Street Lighting District 2014-2015 ("District") and levying an assessment for the fiscal year commencing July 1, 2014 and ending June 30, 2015. Background: As required by law, the following steps have been taken for the levy and collection of assessments for fiscal year 2014-2015 within the District: 1. March 11, 2014: The City Council adopted Resolution No. 13-6893 ordering the preparation of a report for the District. 2. May 5, 2014: The Director of Public Works filed with the City Clerk the report consisting of, among other things; the assessment diagram and assessment roll for the District. 3. May 13, 2014: The City Council adopted Resolution No. 14-6901 approving the report of the Director of Public Works. 4. May 13, 2014: The City Council adopted Resolution No. 14-6902 setting June 24, 2014 at 7:30 p.m. as the date and time for a public hearing in order to accept public input on the District. 5. May 22, 2014 and June 12, 2014: Notice of the Public Hearing was given by publishing a public notice in the Easy Reader. Analysis: The District assessment funds the cost of maintaining and operating street lights, traffic signals and landscaping located within parkways or medians. The proposed assessment rate for FY 2014-2015 is $41.45 per equivalent dwelling unit, the same equivalent dwelling unit rate used in fiscal year 2013-2014 to finance those improvements. The assessment is based on the actual number of dwelling units that are on a property (or their equivalent for vacant and commercial properties). Prior to 1995, the assessment amount was $16.84 per dwelling unit. In FY 1995-96, the assessment amount was increased to $54.82 with the exception of senior citizens, for whom the $16.84 amount (through a rebate program) was maintained. Due to a surplus of funds, the assessment amount was reduced to the present amount of $41.45 in FY 1997-98. This surplus of District funds was enough to cover the increasing costs of services through FY 2003-04. Since this time period, the District has been running a deficit, requiring supplemental revenue from the General Fund. Supplemental from H. Longacre to the June 24, 2014 Regular Council Meeting - Agenda Item 6-a Page 1 of 3 Supplemental To Municipal Item 6-a City Manager's office, City Clerk: This is supplemental correspondence for Municipal Item 6-A of the June 24, 2014 regular 7-PM City Council meeting. Please advance copies to those listed, at the meeting, and announce as supplemental material for the public and press. Please also post with the agenda materials on the Internet. Thank You. June 24, 2014 To: Councilmembers (Peter Tucker, Michael DiVirgilio, Nanette Barragan, Carolyn Petty, Hany Fangary), City Clerk, City Manager, Assistant to City Manager, Finance Director, Community Development Director, Public Works Director, Police Chief, Fire Chief, and contract-City Attorney. From: Howard Longacre, a Hermosa Beach Resident Re: Regarding the City's most-evident fast-tracking attempts towards the having of a Hermosa Beach special election for the oil-drilling ballot measure to be combined with the county/state/federal general election in November 2014, and in the absence of an as-yet formal request from E&B for such special election to yet occur. Attachment: Copy of 2012 Oil Settlement Agreement Honorable Councilmembers, and others: Your 6/24/2014 council meeting agenda states for item 6-a; MUNCIPAL MATTERS: 6-a STATUS REPORT ON E&B’S PROPOSED OIL DRILLING AND PRODUCTION PROJECT AND POSSIBLE DIRECTION TO SUBCOMMITTEE REGARDING NEGOTIATION OF THE DEVELOPMENT AGREEMENT. Memorandum from Community Development Director Ken Robertson dated June 18, 2014. RECOMMENDATION: That the City Council receive and file this report. The Council may also wish to give its subcommittee direction pertaining to negotiation points of the Development Agreement. Staff Report The following are my comments, given freely, and they are entirely my views and opinions on everything I've stated herein. While item 6(a) pertains to the regular report on the E&B oil drilling application as related to the 2012 oil-litigation settlement agreement, it is most evident from following this matter week to week, that the City is doing all possible now to fast-track the matter onto this year's 2014 November general election ballot. It would be great if the oil-election could occur in November, and that the Hermosa electorate could then go to the polls, vote No in the majority, and for the most part be done with this filthy, rotten, disgusting oil matter, done for the most part with E&B, and the rest of it, until E&B, or some other oil-driller with a need-for-greed, again comes propagandizing Supplemental from H. Longacre to the June 24, 2014 Regular Council Meeting - Agenda Item 6-a Page 2 of 3 the Hermosa electorate to get at the filthy, toxic oil under the City, under its magnificent beach, and ocean the tidelands. Nonetheless, there are at least two significant parties in this matter, and E&B unfortunately is one of them. And there is also the very-poorly written 2012 settlement agreement (from the point of view of Hermosa interests) which ties the City and E&B together in this matter. Once again Michael Jenkins, the same awful counsel that got the City into this long, long, expensive oil mess, and who has become fat-rich off Hermosa Beach ever since, was again the responsible party giving very poor counsel to Hermosa Beach to arrive at the settlement agreement the City so stupidly, secretly, and unnecessarily, signed in closed session behind the electorate's back. Why is it that Hermosa council after Hermosa council has not the intelligence or gumption to terminate the contract services of Michael Jenkins? Clearly his counsel has been a costly disaster for the City with respect to oil. Now, in reading the settlement agreement again, under Paragraph IV it states quite clearly on page 7; Now it's most apparent that E&B has done their voter survey work and probably knows well that oil-drilling has not a snow-ball's chance in Hell of passing in November 2014. And likewise the Council, operating in a political world, at least two members, know they don't want to be dealing with an oil election when they are trying to get re-elected in 2015, even if that election occurs before the council election of November 2015 which seems likely. However the reality is that within reason the City is going to have to mutually agree on an approximate time for an oil election with E&B. E&B clearly isn't going to make a formal request for an election per the settlement agreement until after August, when it will be too late for the City to consolidate such city-election with the general election. That's just the reality of doing business with what I believe is a very dishonorable company, i.e. E&B. After all did E&B let all concerned know about the Louisiana Equinox disaster and bankruptcy during the settlement negotiations? And for that matter, did Jenkins or anyone Supplemental from H. Longacre to the June 24, 2014 Regular Council Meeting - Agenda Item 6-a Page 3 of 3 involved do a little bit of Googling to learn of that mess before signing an agreement with a closely related official? The bottom line, so long as you on the Council refuse to get new, un-biased, un-tainted, counsel for the city, Jenkins is going to continue to get more-fat-rich by giving you less than the best counsel that's probably available at lower cost. E&B, within some reasonable amount of time, really does seem to have the right, per this Jenkins approved (for the City's point of view) settlement agreement, to request that the City hold the election when they, E&B, are ready. They clearly are indicating they are not ready yet. That does not seem yet-unreasonable at this point. However, another rotten part of the Jenkins agreement for the City, is that this is costing the City a fortune month to month that the election is put off. It's eating staff time alive, that isn't being reimbursed. The reimbursement agreement made after the settlement agreement for staff time, another Jenkins negotiated agreement with E&B, covers almost nothing. Meanwhile Jenkins still is getting fat-rich, fat-rich. When the Council, especially Michael DiVirgilio wheeled and dealed like the big-shot Hermosa official that he probably presumes he is, he never dreamed he'd be running for election with the oil issue still at his back three years after the settlement. Well guess what, if he's so stupid to run for a third term, the ousting he gets will be much more than what Mr. Patrick "Kit" Bobko, a somewhat Jenkins protégé, received. If Mr. DiVirgilio believes he's fooling the Hermosa electorate with his synthetic smiling, and all that, at the meetings than he truly is an unfortunate soul. The Council would best figure out a way to bill E&B for all these ongoing costs. What E&B is spending on advertising and what they will be spending once there is a ballot measure to fool the public into approving filthy oil drilling, makes the paltry $50,000 maximum they agreed to pay the City for the election look insignificant. No thanks to Michael Jenkins and his rotten counsel that has cost this city millions and millions since his arrival as contract city attorney. Go ahead and try to have the election in November without E&B's request and guess what, Jenkins will make more money defending another cavalier action by Hermosa Beach. Again no one wants E&B and all these oil drillers with their need-for-greed out of Hermosa Beach more than I. See Attachment: 2012 Oil litigation Settlement Agreement. SETTLEMENT AGREEMENT AND RELEASE THIS SETTLEMENT AGREEMENT AND RELEASE Agreement is made and entered into as of this 2d day of March 2012 by and between MACPHERSON OIL COMPANY a California corporation and WINDWARD ASSOCIATES a California limited partnership collectively 1Vlacpherson E B NATURAL RESOURCES MANAGEMENT CORPORATION a California corporation E B and the CITY OF HERMOSA BEACH a California municipal corporation City The above parties will occasionally be individually refened to as Party and collectively referred to as the Parties RECITALS A Macpherson and City entered into an oil and gas lease in 1986 and subsequently entered into an amended and restated oil and gas lease in 1992 the Lease that among other things added the Cityowned Tidelands to the leased lands all in order to allow Macpherson to engage in a directional well oil drilling project that would be conducted from an urban drill site to be installed and located on the Citys maintenance yard property the Oil Project The City certified an Environmental Impact Report for the Oil Project in 1990 The City secured the approval of the Lease from the California State Lands Commission in 1992 and the reapproval of the Lease from the California State Lands Commission in 1994 The City issued Conditional Use Permit No 935632 to Macpherson for the Oil Project in 1993 and at the same time certified an addendum to the previouslycertified Environmental Impact Report to accommodate several minor changes to the Oil Project Macpherson also obtained all of the necessary Permits to Construct for the Oil Project from the South Coast Air Quality Management District In November 1995 the residents of the City passed City Measure E an initiative measure that banned oil drilling in the City In early 1998 and notwithstanding the passage of Measure E the California Coastal Commission authorized issuance of Coastal Development Permit No E9628 to Macpherson far the Oil Project subject to conditions Later in 1998 the City Council made a determination that the Oil Project as then constituted posed an unacceptable public safety risk B Macpherson filed a crosscomplaint for breach of the Lease seeking monetary damages against City in late 1998 in the case entitled Hermosa Beach Stop Oil Coalition et al v City of Hermosa Beach Los Angeles County Superior Court Case No BC172546 the Action The California Court of Appeal ruled in the Action that Measure E both applied to the Oil Project and that its passage entitled Macpherson to sue the City for monetary damages The Los Angeles County Superior Court in 2008 subsequently ruled that City s adoption of Measure E constituted a breach of the Lease and scheduled a trial to determine the amount of Macphersons damages The Court of Appeal thereafter ruled that the Citys 1998 determination that the Oil Project as then constituted posed an unacceptable public safety risk may constitute a defense to Macpherson s damages claim if the evidence presented at trial satisfies the limitations upon the defense set forth by the Court of Appeal The trial on Macphersons crosscomplaint is now scheduled to commence in early April 2012 At trial Macpherson will be seeking damages against City in excess of 700 Million C E B is an unrelated thirdparty oil company that has investigated the Oil Project and wishes to pursue it E B has approached the City and Macpherson with a plan to settle the Action between the City and Macpherson and provide E B with a potential opportunity to 1 proceed with a stateoftheart directional well oil drilling project conducted from an urban drill site located on Citys maintenance yard property E B proposes a settlement payment to Macpherson to compensate Macpherson for an assignment to E B of Macphersons rights to the Oil Project and termination of the Action in return for 1 the opportunity to persuade Citys electorate that a stateoftheart directional well oil drilling project conducted from Citys maintenance yard can be accomplished safely and with financial benefits to all of the Parties and 2 for full or partial repayment to E B by the City of a portion of the settlement payment E B makes to Macpherson Due to technology and operational advancements in the past 15 years made by the oil and gas industry related to safety and efficiency of oil and gas production it is E Bs strong belief that both the residents of City and E B can greatly benefit by allowing for the development of the oil and gas reserves under the leases assigned to E B D City is willing to place on the ballot a measure that would afford its electorate the opportunity to consider whether to resurrect a directional well oil drilling project from Citys maintenance yard in exchange for termination of the Action and payrnent to E B of certain amounts contingent on the outcome of the ballot measure and establishing the ongoing potential for a very substantial revenue stream to be generated for City and the Hermosa Beach School District as a result of the payment to City and School District of royalties in association with the production of oil and gas reserves by E B Macpherson is willing to settle the Action and assign to E B its rights to the Oil Project in return for the settlement payment together with the royalty interest to be assigned by the City to Macpherson and the overriding royalty interest to be reserved to Macpherson from its assignment to E B all as set forth below in this Agreement E Settlement of the Action would serve to eliminate the risks and costs associated with continued protracted litigation and would return to the electorate the question of whether the public interest would be best served by either approval of the oil drilling project or payment of a settlement F The Parties by this Agreement wish to resolve and settle the Action all disputes encompassed within and that could have been raised in the Action and all attendant and potential litigation arising therefrom NOW THEREFORE in consideration of the mutual covenants and agreements described below and for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged the Parties hereby agee I Parties 11 The City of Hermosa Beach a California municipal corporation City 12 Macpherson Oil Company a California corporation and Windward Associates a California limited partnership collectively Macpherson 13 E B Natural Resources Management Corporation a California corporation EB 2 II Defmitions 21 Action means Hermosa Beach Stop Oil Coalition et al v City of Hermosa Beach Los Angeles County Superior Court Case No BC 172546 22 Affiliate or Affiliates means an entity designated by E B and under common control with controlled by or under the control of E B 23 Ballot Measure means the measure described in paragraph 46a herein 24 Closing means the consummation of this Settlement Agreement and Release at which time the Parties shall concurrently deliver the instruments and payments described herein all as provided in paragraph III herein 25 Conditional Use Permit or CUP means Conditional Use Permit No 935632 dated August 12 1993 issued by City to Macpherson 26 E B Loan means the payment advanced by E B to Macpherson on behalf of City and to be repaid or forgiven as provided in paragraphs 44b and 46b and c herein 27 Grant Deed means the Municipal Corporation Grant Deed attached hereto as Exhibit A and incorporated herein by reference 28 Lease means the Oil and Gas Lease No 2 dated January 14 1992 between City and Macpherson and all extant records permits studies and documents pertaining thereto 29 Project or Oil Project means the directional well oil drilling project described in the Lease and the CUP from Citys maintenance yard as it may from time to time be modified in the course of implementation of the terms ofthis Agreement 210 School Lease means the lease between Macpherson and the Hermosa Beach School District 211 Settlement Payment means the payment from E B to Macpherson described in paragraph 43b herein III The Closing 31 The Closing shall occur on such day and at such time as may be mutually agreed upon by all of the Parties but in no event later than Friday March 2 2012 at a time sufficient to accommodate a wire transfer of the Settlement Payment 3 from E B to Macpherson Unless otherwise mutually agreed the Closing shall take place at the offices of Michael Jenkins the City Attorney Jenkins Hogin 1230 Rosecrans Avenue Suite 110 Manhattan Beach California 32 If the Closing does not occur within the time provided in paragraph 31 or if any Party fails to deliver an executed original of this Agreement to each of the other Parties at the Closing or if Macpherson fails to deliver a signed and notarized original assignment from Macpherson to E B of Macphersons rights title and interest in and with respect to the Lease and the Project as provided in paragraph 41a below or if Macpherson fails to deliver to the City at the Closing an executed dismissal with prejudice of the Action as provided in paragraph 41c below or if E B fails to make the Settlement Payment to Macpherson by wire transfer during the Closing or if E B fails to sign and return a fully executed and notarized counterpart original of the assignment from Macpherson to E B of Macphersons rights title and interest in and to the Lease and the Project to Macpherson at the Closing ie the assignment executed by both Macpherson and E B which assignment contains the reservation of the 112 overriding royalty in favor of Macpherson as provided in paragraph 43a below or if the City fails to deliver the fully executed and notarized Grant Deed to Macpherson at the Closing which Grant Deed grants a 313 royalty to Macpherson under the terms contained therein as provided in paragraph 45b below or if the City fails to deliver to E B and Macpherson the fully executed and acknowledged consent to assignment of the Lease and Cityissued permits for the Project which is included in the assignment from Macpherson to E B as provided in paragraph 45c below then in any of such events the Action shall not be settled and each of Macpherson and the City will be free to pursue all of their respective claims and defenses in further prosecution andor defense of the Action For avoidance of doubt should the Action not be settled on account of the occurrence of any of the events specified in this Paragraph 32 then this Agreement and all of its provisions and any settlement discussions between or among any ofthe Parties remain fully subject to Evidence Code sections 1152 and 1154 and the Confidentiality Agreement previously signed on behalf of each of the Parties on February 17 2012 33 Should the Closing occur and each of the Parties fully complies with all of its obligations to be performed at the Closing as provided in this Agreement such that the Action is fully settled and claims are released then in such event the Confidentiality Agreement previously signed on behalf of each of the Parties on February 17 2012 shall remain applicable to communications prior to Closing but shall otherwise automatically terminate and be of no further force and effect with respect to this Agreement and communications following the Closing except as may be required by law For avoidance of doubt in the event any participant in the settlement communications prior to Closing is deposed whether by subpoena or notice individually or as a corporate representative or appears to testify in any proceeding whether doing so voluntarily or involuntarily the Confidentiality Agreement shall not be construed to prevent preclude or restrict such testimony and such testimony shall not constitute a breach ofthe Confidentiality Agreement 4 IV Obliations of the Parties 41 Macphersons Obligations At Closing a Execute and deliver to E B or to an Affiliate or Affiliates designated by E B including for the purposes of a 1031 exchange as provided in Article X hereof all of Macphersons right title and interest in the Lease all townlot leases the School Lease and any other leases and all other rights it may have in or with respect to the Project including but not limited to the Conditional Use Permit and all other permits for the Project collectively the Assets all without any warranty of title and subject to the releases set forth in paragraph VI hereof Said assignment shall be in the form attached to this Agreement as Exhibit B b Deliver to the Closing this executed Agreement to each of the other Parties c Deliver an executed dismissal with prejudice of the Action to the City d Deliver an executed and acknowledged counterpart original of the Grant Deed 42 Macphersons Obligations FollowinCglosin a Comply with the provisions of paragraph X provided however that Macpherson shall not be obligated to incur any material costs or expenses of any kind in providing such further cooperation b Macpherson shall have no further obligations to the City or EB or its or their respective successors and assigns respecting the Lease any other leases any permits relating to the Project or the Project itself or otherwise under this Agreement following the Closing except as provided in paragraph 42a above and paragraph VII respecting cooperation in defense of litigation in which Macpherson is named as a party 43 E Bs Obligations At Closing a Accept the assigrunent from Macpherson identified in paragraph 41 a above subject to the releases set forth in paragraph VI hereof by signing the same in E Bs capacity as assignee and deliver a fully executed and notarized counterpart original of said assignment to Macpherson Said assignment reserves to Macpherson from E B and its successors and assigns an overriding royalty of one and onehalf percent 1h of one hundred percent 100 of gross hydrocarbon production but otherwise determined in the same manner as royalties are determined andor calculated under the Lease which overriding royalty shall remain in force and effect for so long as E B 5 or its successors and assigns produce oil andor gas from beneath the City under the Lease or any continuation extension amendment restatement or replacement of the Lease b Deliver to the Closing i this executed Agreement to each of the other Parties and ii deliver to Macpherson by wire transfer in accordance with wire transfer instructions provided by Macpherson at least one business day in advance of the Closing in immediately available funds the lump sum of Thirty Million Dollars 30000000 as the Settlement Payment c Included within the Settlement Payment is an advance by E B on behalf of City in the sum of Seventeen Million Five Hundred Thousand Dollars 17500000 which amount represents the Citys contribution towards the Settlement Payment and constitutes the E B Loan The E B Loan shall be repaid in full or partially forgiven by E B or its successors and assigns as provided in paragraphs 44 b and 46b and c below 44 E Bs Obligations FollowinCglosing a Reimburse City for the cost of preparation of an environmental impact report or supplemental environmental impact report EIR pursuant to the California Environmental Quality Act CEQA based on a Project description provided by E B should such an EIR be prepared and the cost of conducting a special election not to exceed 5000000 as provided in paragraph 46a b Upon issuance by the City of the drilling permit for the Project or in the event the City cannot issue the drilling permit as the sole result of action or inaction undertaken by and under the control of EB including without limitation the failure of the California Coastal Commission to issue a coastal development permit as a result of any refusal or failure by EB to accept any condition or conditions that may be imposed by the California Coastal Commission in connection with the issuance of that permit immediately thereafter forgive Fourteen Million Dollars 14000000 of the E B Loan c Upon receipt of all required approvals and permits respecting the Project from State and regional regulatory agencies deliver to City a complete application for a drilling permit for the Project that satisfies the requirements set forth in the CUP the Citys Municipal Code conditions imposed by other regulatory agencies and CEQArelated mitigation measures and bear the cost of satisfying the CEQArelated mitigation measures and the cost of satisfying reasonably required conditions of the drilling permit and other regulatory agencies d Comply with the provisions of paragraph X and the provisions of paragraph VII 6 45 Citvs Obligations At Closin a Deliver to the closing this executed Agreement to each of the other Parties b Deliver to Macpherson at the Closing the fully executed and notarized Grant Deed in favor ofMacpherson c Deliver to the Closing the fully executed and acknowledged consent to the assignment by Macpherson to E B of the Lease and any permits issued by the City respecting the Project including without limitation the CUP which is included in the assignment from Macpherson to E B counterpart originals of which consent shall be delivered to E B and to Macpherson 46 Citvs Obligations Followin Cg losing a Place on the ballot at a special municipal election in a manner that comports with all applicable law within six 6 months of a request to do so by E B or as soon thereafter as is permitted by the California Elections Code a ballot measure that asks the electorate whether to approve a single ordinance that i amends the Hermosa Beach Municipal Code to allow the Project to proceed at the City maintenance yard located as described in Exhibit A to the Lease and ii approves a development agreement that would afford E B a vested right to proceed with the Project notwithstanding any future inconsistent change in the Citys Municipal Code b In the event of approval by the electorate of the Ballot Measure i support E Bs applications for all relevant approvals for the Project from State and regional regulatory agencies ii upon E Bs receipt of all required approvals and permits from State and regional regulatory agencies process in good faith and with due diligence issue drilling and well permits for the Project upon satisfaction by E B of the requirements set forth in the CUP the Citys Municipal Code and CEQArelated mitigation measures iii vacate and make the City maintenance yard available for the construction of the Project as when and in the manner and subject to the conditions provided for in the Lease and iv repay Three Million Five Hundred Thousand Dollars 3500000 ofthe E B Loan through a deduction from royalties otherwise due to the City equal to one and one half percent 15 of the gross proceeds from the sale of hydrocarbons from the Lease until the 35 million has been paid provided however in the event the Project does not otherwise result in royalties to City sufficient to repay 35 million of the E B Loan City shall 7 repay 35 million of the E B Loan in a lump sum within ninety 90 days of written notice from E B c Notwithstanding anything to the contrary contained in this Agreement in the event of i failure of the Ballot Measure or ii following approval by the electorate of the Ballot Measure failure of the City to issue a drilling permit for any reasons other than an action or inaction undertaken solely by and under the control of EB including without limitation the failure of the California Coastal Commission to issue a coastal development permit as a result of any refusal or failure by EB to accept any condition or conditions that may be imposed by the California Coastal Commission in connection with the issuance of that permit the City shall repay to E B the full amount of the E B Loan on commercially reasonable terms to be mutually agreed by the City and E B d Grant as reasonably required by E B all necessary rights of way easements franchises and other rights as necessary for subsurface pipelines and other facilities and appurtenances in order for E B to drill for produce market transport and sell all oil and gas produced from the subject leases e Comply with the provisions of paragraph X and the provisions of paragraph VII V Limitation of Remedies 51 Should the Ballot Measure fail Macpherson shall have no recourse against City except for those obligations that arise from the Grant Deed 52 Should the Ballot Measure fail E B shall have no recourse against City aside from enforcement of Citys repayment of the E B Loan 53 Except for Citys obligations under the Grant Deed and its obligation to repay or partially repay the E B loan as provided in paragraph 46c or paragraph 46biv as the case may be in the event of failure of the City to perform its obligations under paragraphs 46a and b and 82 but only to the extent resulting from a court order compelling the City conduct constituting such failure of performance E B and Macphersons sole recourse against City shall be an action for specific performance of this Agreement declaratory relief andor mandamus including without limitation any potential injunctive relief or other nonmonetary orders as may be issued in such action In return for this agreed limitation the City acknowledges and agrees that specific performance and injunctive relief are appropriate remedies and the City hereby waives any and all claims it has or may have to assert that these remedies are unavailable remedies for breach of this Agreement for any reason or reasons including without limitation that EB andor Macpherson have other adequate legal remedies Except as provided above in no event shall City be liable in monetary damages and Macpherson and E B hereby covenant not to sue City for monetary damages under any theory for failure to perform the Citys obligations under paragraphs 46a and b and 82 but only to the extent 8 resulting from an order of court compelling the City conduct constituting such failure of performance of this Agreement It is understood acknowledged and agreed by the Parties that City would not have entered into this Agreement but for this covenant that it cannot be held liable to Macpherson or E B in monetary damages for breach of the Citys obligations under paragraphs 46a and b and 82 for any reason and under any theory except as provided in the Grant Deed and except for Citys obligations herein to repay the E B Loan Nothing in this paragraph 53 shall be construed to prevent Macpherson or E B from asserting any defense or offset against the City in the event the City should assert any claim under this Agreement against Macpherson andor E B For avoidance of doubt the provisions of this paragraph 53 precluding recovery of monetary damages against the City are inapplicable to any claim for the recovery of attorneys fees in connection with an action for specific performance declaratory relief or mandamus under the attorneys fees provision ofparagraph XIII below 54 The parties recognize that i Macpherson is materially changing its legal position and rights and property holdings in reliance upon the final and binding effect of this Agreement and ii any rescission of this Agreement would be a wholly inadequate remedy for Macpherson because rescission cannot possibly return to Macpherson the legal position and rights it held prior to the consummation of this Agreement Therefore as material inducement to Macpherson and not withstanding any provision of this Agreement to the contrary in no event shall Macpherson be obligated to rescind or return the Settlement Payment the real property interest in the form of the royalty granted to Macpherson by the City as provided in paragraph 45b herein or the overriding royalty in favor of Macpherson reserved in the assignment by Macpherson to E B as provided in paragraphs 41a and 43a herein Conversely Macphersons claims against the City that are settled and released by this Agreement shall not be revived in whole or in part in any respect whatsoever and E B shall retain all rights and interests conveyed by Macpherson to E B in the assignment provided for in paragraphs 41a and 43a herein Any and all other effects or consequences of a rescission or other determination of invalidity of this Agreement for any reason are matters that shall be resolved solely between the City and E B However in such event in no event shall City be liable in monetary damages under any theory whatsoever and Macpherson and E B hereby covenant not to sue City for monetary damages under any theory in the event of a final and nonappealable court judgment invalidating this Agreement In such event the Parties shall endeavor pursuant to the provisions of Paragraph X to cure any such invalidity and reform this Agreement so as to effectuate the intent of the Parties should that effort fail for any reason City shall repay the E B loan as provided in paragraph 46c VI Mutual Releases 61 Effective upon the successful completion of the Closing in accordance with the conditions described in paragraph 33 i the Parties hereby fully and finally waive release and permanently discharge each other and their respective partners officers employees agents representatives and attorneys the Releasees from any and all past present or future matters claims demands obligations liens actions or causes of action suits in law or equity or claims for damages or injuries whether known or unknown which they now own hold or claim to have or at any time heretofore have owned held or claimed to have held against each other by reason of any matter or thing alleged or referred to or in any way connected with arising out of or in any way relating to any of the matters acts events or occurrences allegec or referred to in any of 9 the pleadings filed in the Action and ii the City hereby fully and finally waives releases and permanently discharges Macpherson and its respective partners officers employees agents representatives and attorneys the Releasees from any claims arising under the Lease any continuation extension amendment restatement or replacement of the Lease or any permits respecting the Project that may arise postClosing and will look solely to E B and its permitted successors and assigns for performance of the Lease any continuation extension amendment restatement or replacement of the Lease or any permits respecting the Project all of which are collectively the Released Claims In connection with the release of the Released Claims the Parties waive any and all rights that they may have under the provisions of section 1542 of the California Civil Code which states as follows A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release which if known by him or her must have materially affected his or her settlement with the debtor In the event that any waiver of the provisions of Section 1542 of the California Code provided for in this Agreement shall be judicially determined to be invalid voidable or unenforceable for any reason such waiver to that extent shall be severable from the remaining provisions of this Agreement and the invalidity voidability or unenforceability of the waiver shall not affect the validity effect enforceability or interpretation of the remaining provisions of this Agreement 62 The Parties understand and acknowledge that the foregoing release in paragraph 61i extends to any claims or damages without limitation arising out of the Released Claims that may exist on the date ofthe Closing and the foregoing release in pazagraph 61ii extends to any claims or damages without limitation arising out of the Released Claims that may arise on or following the Closing but which the Parties do not know to exist which if known would have materially affected their decision to execute this Agreement regardless of whether their lack of knowledge is a result of ignorance oversight error negligence or any other cause 63 Each Party acknowledges and agrees that this Agreement is a compromise and settlement of their disputes and differences and is not an admission of liability or wrongdoing by any Party 64 Except as may be provided in this Agreement each of the Parties waives any and all claims for the recovery of any costs expenses or fees including attorney fees associated with the matters and claims released in this Agreement 65 Each Party understands and acknowledges that upon the successful completion of Closing in accordance with the conditions described in paragraph 33 this Agreement will terminate the Action and any and all claims arising thereunder or resulting therefrom and this Agreement and the promises and actions provided for in this Agreement are in full accord satisfaction and discharge of any and all claims for compensation of any kind that Macpherson and E B may have related to the Action 10 VII Defense of Litigation In the event that one or more lawsuits are filed challenging this Agreement andor the actions implementing or contemplated by this Agreement the Parties to the extent named as parties defendant in the lawsuit will cooperate in good faith in the defense of the litigation and shall initially bear their respective attorneys fees and costs With the exception of a lawsuit challenging the approval of this Agreement itself should the Ballot Measure described in paragraph 46a pass E B shall indemnify the City for all attorneys fees and costs incurred by City in the defense of litigation encompassed by this paragraph and also for any attorney fees and costs awarded to a plaintiff against City if any in such litigation VIII Representations and Warranties 81 Reresentations and Warranties Exclusive to Macpherson and E B Macpherson and E B hereby represent and warrant to the City as of the date of Closing as follows a They have not heretofore assigned or transferred or purported to assign or transfer to any party not named herein any Released Claim or any part or portion thereof b To Macpherson and E Bs knowledge there are no legal actions suits or similar proceedings pending and served or threatened in writing against them that would adversely affect their ability to consummate the transactions contemplated in this Agreement To the best of their knowledge Macpherson and E B are not aware of any existing claims nor of any facts that might give rise to any claims of any type or nature against the City pertaining to the Action whether asserted or not that have not been fully released and discharged by the release set forth in this Agreement c They acknowledge that the Stinnett Well has been plugged and abandoned and agree that Citys inability to convey the Stinnett Well to E B shall not constitute a breach ofthis Agreement or the Lease 82 Representations And Warranties Exclusive to the Citv City hereby represents and warrants to Macpherson and E B as of the date of the Closing as follows a It has not heretofore assigned or transferred or purported to assign or transfer to any party not named herein any Released Claim or any part or portion thereof b To the Citys knowledge there are no legal actions suits or similar proceedings pending and served or threatened in writing against it that would adversely affect the Citys ability to consummate the transactions contemplated in this Agreement To the best of its knowledge the City is not aware of any existing claims nor of any facts that might give rise to any claims of any type or nature against Macpherson pertaining to the Action whether asserted 11 or not that have not been fully released and discharged by the release set forth in this Agreement c The drilling and well permits that are to be obtained by E B for the Project under the City Municipal Code are and will be processed by the City in good faith as ministerial permits d The force majeure provisions in paragraph 30 of the Lease apply and have applied during the pendency of the Action and the CUP remains valid 83 Representations and Warranties By All Parties Each of the Parties hereby represent and warrant to the other Parties as of the date of the Closing as follows a The Parties have received all corporate and other approvals necessary to enter into this Agreement on their behalf and that the persons signing this Agreement on their behalf are fully authorized to commit and bind the Parties to each and all of the commitments terms and conditions hereof and to release the claims described herein and that all documents and instruments relating thereto are or upon execution and delivery will be valid and binding obligations enforceable against them in accordance with their respective terms b The Parties have freely entered into this Agreement and are not entering into this Agreement because of any duress fear or undue influence this Agreement is being entered into in good faith c The Parties have made such investigation of the facts pertaining to this Agreement as they deem necessary d The Parties have prior to the execution of this Agreement obtained the advice of independent legal counsel of their own selection regarding the substance of this Agreement and the claims released herein e In executing this Agreement the Parties acknowledge represent and warrant that they have not relied upon any statement or representation regarding any facts not expressly set forth within this Agreement In entering into this Agreement the Parties assume the risk of any misrepresentations concealment or mistake whether or not they should subsequently discover or assert for any reason that any fact relied upon by them in entering into this Agreement was untrue or that any fact was concealed from them or that their understanding of the facts or of the law was incorrect or incomplete 84 The representations and warranties of each of the Parties set forth in this paragraph VIII and elsewhere in this Ageement will survive the execution and delivery of this Agreement and are a material part of the consideration to each of the Parties in entering into this Agreement 12 IX Interpretation 91 All Parties have cooperated in the drafting and preparation of this Agreement and in any construction or interpretation to be made of this Agreement the same shall not be construed against any one Party This Agreement is the product of bargained for and arms length negotiations between the Parties and their counsel This Agreement is the joint product of the Parties 92 This Agreement and the Confidentiality Agreement discussed in Paragraphs 32 and 33 are an integrated contract and sets forth the entire agreement between the Parties hereto with respect to the subject matter contained herein All agreements covenants representations and warranties express or implied oral or written of the Parties hereto with regard to such subject matter are contained in this Agreement No other agreements covenants representations or warranties express or implied oral or written have been made or relied on by any party hereto 93 This Agreement may not be changed modified or amended except by written instrument specifying that it amends this Agreement and signed by the Party against whom the enforcement of any waiver change modification extension or discharge is sought No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any other provision whether or not similar nor shall any waiver be deemed a continuing waiver and no waiver shall be implied from delay or be binding unless executed in writing by the Party making the waiver 94 All of the covenants releases and other provisions herein contained in favor of the persons and entities released are made for the express benefit of each and all of the said persons and entities each of which has the right to enforce such provisions 95 This Agreement shall be binding upon and inure to the benefit of each of the Parties and their respective representatives partners officers employees agents heirs devisees successors and assigns X Further Cooaeration Each party shall perform any further acts and execute and deliver any further documents that may be reasonably necessary or appropriate to carry out the provisions and intent of this Agreement Except as expressly stated otherwise in this Agreement actions required of the Parties or any of them will not be unreasonably withheld or delayed and approval or disapproval will be given within the time set forth in this Agreement or if no time is given within a reasonable time Time will be of the essence of actions required of any of the Parties To the extent that City is prevented in any manner from performing its obligations under this Agreement by causes beyond its control City shall as soon as reasonably feasible take any and all action and related steps as are lawful and necessary to overcome such obstacles and accomplish the purposes of this Agreement as contemplated by the Parties provided that nothing in this sentence shall be deemed to constrain the City Councils exercise of discretion in good faith and further provided that such exercise of discretion and good faith of City Council does not materially affect or alter the rights andor obligations of the Parties to this Agreement without their express 13 written consent In the event any Party elects to structure the assignment and conveyance of the Assets as a likekind exchange under Section 1031 of the Internal Revenue Code of 1986 as amended the other Parties agree to cooperate with respect to the likekind exchange and to execute all documents conveyances and other instruments necessary to effectuate an exchange provided that such other Parties shall not be required to bear additional costs or expenses as a result of such cooperation However the cooperating Parties shall not be liable in any manner to the Party electing Section 1031 treatment if such electing Party is unable to sustain Section 1031 likekind exchange treatment with respect to the assignment and conveyance of the Assets XI No Third Partv Beneficiaries Nothing in this Agreement is intended to benefit any third party or create a third party beneficiary provided however that the releases provided for in paragraph VI shall be enforceable by each and all of the Releasees Except as provided in the immediately preceding sentence this Agreement will not be enforceable by any person not a Party to this Agreement or their respective representatives heirs devisees successors and assigns XII Enforced Delav Force Maieure 121 With the exclusion of the obligations of each of the Parties on Closing as provided above in this Agreement performance by any Party hereunder shall not be deemed to be in default where delays or defaults are due to war insurrection strikes walkouts riots floods earthquakes fires acts of terrorism epidemic quarantine casualties acts of God litigation governmental restrictions imposed or mandated by governmental entities enachnent of conflicting state or federal laws or regulations but only if the Party claiming delay complies at all times with the provisions of this Agreement pertaining to such conflicting laws or other similar circumstances beyond the reasonable control of the Parties and which substantially interferes with the ability of a Party to perform its obligations under this Agreement For avoidance of doubt the City cannot impose its own restrictions respecting performance of this Agreement and thereby create a condition of force majeure excusing it from performance of its obligations under this Agreement 122 An extension of time for any such cause a Force Majeure Delay shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause if notice by the Party claiming such extension is sent to the City or E B as applicable within thirty 30 days of knowledge of the commencement of the cause Notwithstanding the foregoing none of the foregoing events shall constitute a Force Majeure Delay unless and until the Party claiming such delay and interference delivers the required written notice describing the event its cause when and how such Party obtained knowledge the date the event commenced and the estimated delay resulting therefrom Any Party claiming a Force Majeure Delay shall deliver such written notice within thirty 30 days after it obtains actual knowledge of the event The time for performance will be extended for such period of time as the cause of such delay exists but in any event not longer than for such period of time 123 The Parties acknowledge and agree that there have been a number of force majeure events that have occurred prior to the execution of this Agreement that have suspended the obligations of the Lessee under the Lease throughout the duration of such events pursuant to 14 the force majeure provision ie Section 30 of the Lease To resolve the Lawsuit including disputes respecting the effects of those force majeure events on the rights and obligations set forth in the Lease the Parties agree that i three hundred fortyfive 345 days remain on the Primary Term set forth in Paragraph 1c of the Lease the remainder of the elapsed time during the Primary Term having been suspended from running and continues to be suspended due to the occurrence of force majeure events as provided in Paragraph 1c and Section 30 of the Lease and ii the running of the Primary Term will continue to be suspended under Section 30 of the Lease following the date of approval by the electorate of the Ballot Measure described in Paragraph 46c and for so long thereafter until the date on which all permits required for the commencement of drilling of the first well are issued provided that the Lessee diligently pursues but has not yet obtained all such permits subject to the continuing right to claim additional force majeure related to any events occurring following approval by the electorate of the Ballot Measure constituting such an event under the Lease XIII Attorne s Fees In the event of any litigation or arbitration claim concerning any controversy claim or dispute between the Parties arising out of or relating to this Agreement or the interpretation or enforcement thereof the prevailing Party shall be entitled to recover from the other Party its expenses and costs including reasonable attorneys fees incurred in conjunction therewith or in the enforcement or collection of any judgment or award rendered therein The prevailing party means the party determined by the court to have prevailed even if such Party did not prevail in all matters not necessarily the one in whose favor a judgment or award is rendered Each Party to this Agreement shall bear its own costs attorneys fees and other expenses incurred in association with negotiation and execution of this Agreement XIV Governing Law Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to any otherwise applicable principles of conflicts of laws Any action arising out of this Agreement must be commenced in the state courts of the State of California County of Los Angeles or in the United States District Court for the Central District of California and each Party hereby consents to the jurisdiction of the above courts in any such action and to the laying of venue in the State of California County of Los Angeles and agrees that such courts have personal jurisdiction over each of them XV Term In the event that City issues a drilling permit to E B within twenty 20 years of repayment by the City of the full amount of the E B loan as referenced in paragraph 46c E B shall reimburse City Fourteen Million Dollars 14000000 less any portion of which remains yet unpaid by City of the E B Loan XVI Counteraarts This Agreement may be executed in any number of counterparts each of which when so executed shall be deemed to be an original but such counterpazts together shall constitute one and the same instrument 15 XVII Notices All notices demands or other communications ofany lcind required or desired to be given by the Parties sha11 be in writing and sha11 be deemed delivered either a fortyeight 48 hours after depositing the notice demand ar other communication in the United States Mail certified or registered postage prepaid addressed to the recipient at the addresses set forth below or b immediately upon receipt during normal business hoius or if received outside of normal business hours then at the commencement ofnormal business hours on the next business day following receipt ifsent by email or facsimile to the mail address or facsimile number set forth for the intended recipient ofthe notice or demand below To Macpherson Macpherson Oil Company 2716 Ocean Park Boulevard Suite 3080 Santa Monica CA 90405 3104523880 3104520058 facsimile Email Don Macpherson@macphersonoilcom To E B EB Natural Resources Management Corporation 1600 Norris Road Bakersfield CA 93308 6616791797 facsimile Email slayton@ebresourcescom To Ci City of Hermosa Beach City Manager 1315 Valley Drive Hermosa Beach CA 90254 3103180216 3103726186 facsimile Notice of change of mailing address email address or facsimile number shall be given and effective in the same manner and time provided above Rejection or other refusal to accept or the inability to deliver because of changed address ofwhich no specific notice was given provided that a change is not otherwise actually known to the party attempting notice shall be deemed to constitute receipt ofthe notice demand or other communication sen XVIII Severabilitv Invalidation by judgment or court order or commencement of an action seeking to invalidate any of the provisions contained in this Agreement or of the application thereof to any person shall in no way affect any of the other provisions hereof or the application thereof to any other person or circumstance and the same shall remain in full force and effect in particular no 16 such invalidation or action seeking invalidation will impair the Citys authority under California Elections Code Section 9222 its discretion and its contractual obligation to place the Ballot Measure on the ballot For avoidance of doubt Citys obligation to place the Ballot Measure on the ballot is otherwise severable from its remaining obligations under this Agreement IN WITNESS WHEREOF the Parties hereto have caused this Agreement to be duly executed and delivered effective as of the Closing CITY OF HERMOSA BEACH By w ti Howard Fis a Mayor ATTEST oExyfe L Elaine Doerfling City Cl MACPHERSON OIL COMPANY a California corporation By WINDWARD ASSOCIATES a California limited partnership fi z oi e 1icr I Cnc By 17 E B NATURAL RESOURCES MANAGEMENT CORPORATION a California corporation B APPROVED AS TO FORM Michael Jenkins Jenkins Hogin LLP Attorneys for the ity of Hermosa Beach James S Bright Bright Brown Attorneys for Macpherson Oil Company And Windward Associates y V Bret L Strong The Strong Firm PC Attorneys for E B Natural Resources Man ent Corporation 18 RECORDING REQUESTED BY AND WHEN RECORDED PLEASE RETURN TO Macpherson Oil Company 2716 Ocean Park Boulevard Suite 3080 Santa Monica CA 90405 ATTN Mr Donald Macpherson SEND TAX STATEMENTS AND RELATED INFORMATION AND INQUIRIES TO The same Space above for Recorders use only please MUNICIPAL CORPORATION GRANT DEED Mineral Rights Only The Undersigned Requests that Documentary Transfer Tax be sepazately stated offrecord and not be made part of the permanent record of this instrument Rev Tax Code 11932 Affects Assessors Parcels No 4187031900 4188001901 4187001902 4183001901 4182001900 4181037 90041810369004181035900418103490041690389014184026900418500190241870239004187023901 418702390241870239034188024901418801790241870189004187017900418801990741870249024183 00490341810059004181005901418202990341810049014181004900418203090041820309014182030 902 4192030903 4181011900 4188024900 4188026900 4188026901 4188026902 4186018900 4186027900 416002590241600259034160026900418502390441870059024183002902418300290341830029014183 00290041830039004183003901418300390241830039034183003904418301390041870209044187020 9074188026901 4187020904 41870209044187020903 4187020907 4187024902 41870209054187020 906 418600390041850169004187014900 This conveyance is made by and from the City of Hermosa Beach a California municipal corporation hereinafter referred to as Grantor to Macpherson Oil Company a California corporation hereinafter referred to as Grantee effective as of March 2 2012 hereinafter referred to as the Effective Date Whereas Grantor and Grantee are parties to that certain litigation styled Hermosa Beach Stop Oil Coalition etc et al v City of Hermosa Beach etc et al Los Angeles County Superior Court Case Number BC172546 the Litigation 1 Municipal Corporation Grant Deed Whereas Grantee filed a crosscomplaint in the Litigation asserting claims for material breach of contract against Grantor arising out of a 1992 oil and gas lease befinreen Grantor and Grantee more specifically that certain Oil and Gas Lease No 2Royalty by and between the City of Hermosa Beach as Lessor and Windward Associates and GLG Energy LP as Lessee dated January 14 1992 hereinafter the Lease Whereas Grantor and Grantee have reached a settlement of the Litigation a material component of which is the granting of the perpetual royalty interest reflected herein Now therefore in consideration of the foregoing and other consideration the receipt and adequacy of which are hereby mutually acknowledged Grantor hereby grants to Grantee in perpetuity a royalty of Three and Onethird Percent of One Hundred Percent 313 of 100 hereinafter referred to as the Royalty Share of all Royalty Substances as defined and described immediately below which may hereafter at any time be produced from any Burdened Well as defined and described immediately below As used in this conveyance i the phrase Subject Property refers to and includes any and all real property that both a is situated landward of the mean high tide line and within the incorporated area of the City of Hermosa Beach California both as existing and as may be hereafter from time to time extended and b in which Grantor now has or at any time hereafter acquires an ownership interest whether unqualified fee simple title or some lesser interest or estate by virtue of which ownership interest Grantor may lawfully undertake or authorize another person to undertake operations for the drilling of a well on within into or through such real property and specifically whether or not Grantor now owns or hereafter acquires any oil and gas rights interest in such property and specifically but without limiting the generality of the foregoing Grantees ownership of and right to the Royalty Share of the Royalty Substances hereunder shall not be defeated by means of the substitution by acquisition exchange trade or purchase of another property in lieu of exchange with or substitution for any Subject Property 2 Municipal Corporation Grant Deed ii the phrase Burdened Well refers to and includes any well drilled on within from into or through any Subject Property and iii the phrase Royalty Substances refers to and includes all oil gas other hydrocarbon substances and of any and all commercially valuable substances whether such value is now known or hereafter deveops that may be produced in association with any one or more of the aboveenumerated substances whether or not similar in any respect to any of the aboveenumerated substances which may be produced at any time on or after the Effective Date from any Burdened Well The foregoing grant is made upon and subject to the following terms and conditions 1 Notwithstanding that a Burdened Well may be drilled on within from into or through two or more tracts or parcels of real property whether contiguous or not each of which qualifies as Subject Property as defined in this conveyance the interest of Grantee in production from such a well shall be limited to a single Royalty Share of Royalty Substances produced from that well Conversely if a well is drilled on within from into or through any Subject Property but also on within from into or through any other property in which Grantor has or hereafter acquires an ownership interest or a further ownership interest beyond that now owned by Grantor but which other property is not for whatever reason Subject Property hereunder such a well shall nevertheless be a Burdened Well as used and referred to in this conveyance 2 There is expressly recognized and reserved to Grantor in its govemmental capacity the full and complete discretion to determine whether when and where and upon what conditions the drilling of a well and other activities and improvements associated with oil and gas operations are to be undertaken made or constructed within the incorporated area of the City of Hermosa Beach provided however that if in the free exercise of that discretion Grantor determines to permit oil and gas operations that result in the drilling and operation of a Burdened Well and the production from such well of Royalty Substances then Grantor shall not through the conditions imposed on such oil and gas operations materially limit qualify or impair Grantees right to and ownership of the Royalty Share of Royalty Substances produced from such Burdened Well There are further hereby 3 Municipal Corporation Grant Deed excepted and reserved to Grantor in its proprietary capacity or to the third party owner thereofl a all right title and interest in and to all of the Subject Property other than the Royalty Share of Royalty Substances b the sole and exclusive right of exploring for Royalty Substances within the Subject Property and of producing and removing Royalty Substances from the Subject Property and of entry into and use and improvement of the Subject Property in connection with such exploration production and removal and c subject to the terms hereinafter provided all executive rights including without limitation the sole and exclusive right to negotiate make and enter into and modify with any person and enforce against any person i mineral rights leases or other agreements in whatever and under whatever title for conducting mineral rights operations on within from into or through the Subject Property any and all of which are hereinafter referred to as Leases ii pooling unitization or communitization agreements or arrangements concerning the exploration for Royalty Substances within and the production and removal of Royalty Substances from the Subject Property and iii contracts for the sale of Royalty Substances produced from the Subject Property Each and every person with whom Grantor enters into a Lease or other agreement included within the enumeration in parts i ii and iii above of this paragraph shall be included in references hereinafter to an Operator no matter the specific character and extent of their specific rights and obligations in relation to Grantor 3 The foregoing exception herefrom and reservation to Grantor in its proprietary capacify or the third party owner thereofl of all executive rights including without limitation the sole and exclusive right to negotiate make and enter into and modify with any Operator and enforce against any Operator a Leases b pooling unitization or communitization agreements or arrangements affecting the Subject Property and c contracts for the sale of Royalty Substances produced from the Subject Property is made subject to i the requirement and obligation of Grantor to act in regard to such matters fairly and in good faith ii the limitation and requirement that all such Leases arrangements agreements and contracts shall apply in all respects equally to Grantor and Grantee or where their interests are numerically different strictly in proportion to their respective interests and iii the limitation and condition that any such Lease arrangements agreements and contracts shall not materially qualify or impair Grantees 4 Municipal Corporation Grant Deed right to and ownership of the Royalty Share of Royalty Substances or otherwise materially conflict with any of the provisions of this conveyance 4 Notwithstanding any other provision of this conveyance Grantees ownership interest in Royalty Substances produced from each and every Burdened Well shall be Three and Onethird Percent of One Hundred Percent 313 of 100 whetherthe same are produced through operations conducted by Grantor or conducted by another person owning or acting by through or under Grantor Grantee shall not participate or have any right title or interest in or to any signing bonus rental shutin royalty or other compensation or remuneration agreed to by Grantor in a Lease entered into by it in the exercise of the rights excepted from this conveyance and reserved to Grantor 5 The interest of Grantee contemplated by this conveyance is an ownership interest in the Royalty Substances themselves at the time of their production and severance from the land through a Burdened Well and not a mere contract right to a share of revenue from the sale of Royalty Substances Nothing in the foregoing exception from this conveyance and reservation to Grantor shall prevent Grantee from prosecuting an action against any Operator or other third party for the recovery of payment or Royalty Substances due it under the terms and provisions of this conveyance Grantor and any Operator may enter into such agreement as they may wish providing for primary responsibility between them for the perFormance of the obligations of Grantor and the satisfaction of the rights of Grantee under this conveyance 6 Each Party agrees to make execute and deliver such other instruments or documents and to do or cause to be done such further or additional acts as may reasonably be necessary in order to effectuate the purposes of this conveyance including but not limited to for purposes of effectuating Grantees ownership of the Royalty Share of Royalty Substances from any particular Burdened Well andor adequately perfecting in the Los Angeles County Recorder Grantees rights title and interest as contemplated by this conveyance 7 Grantor or any Operator whichever has control and possession of Royalty Substances produced from any Burdened Well shall either purchase or sell for the benefit and account of Grantee the Royalty Share of Royalty Substances over which the Grantor or 5 Municipal Corporation Grant Deed such Operator has control and possession and which Grantee has not elected to take in kind as provided in Paragraph 8 below in accordance with the following terms a Grantees Royalty Share of oil shall be purchased or paid for i at the price received from a first purchaser in an armslength transaction or ii if no such transaction is involved at the fair market value of the Royalty Share as determined by the highest price offered and paid in the field in which production is obtained or if none then the highest price offered and paid in the adjacent or other nearby field nearest to the point of production from the Burdened Well under a contract for the purchase of crude oil terminable on thirty 30 days notice after making the customary adjustments for temperature water and basic sediment for oil of like gravity and quality on the day the oil is produced b Grantees Royalty Share of natural gas shall be purchased or paid for at a value which shall be the sum of the following i the net proceeds received by Grantor or an Operator from the armslength sale of the natural gas whether sold in its natural state or as residual dry gas after extracting gasoline and other content or if no such transaction is involved the fair market value of such natural gas and ii the net proceeds derived from the armslength sale at the extraction plant of all gasoline and other liquid hydrocarbons extracted and saved from natural gas as a result of processing such gas at a plant owned or operated by Grantor or any Operator ie after deducting from the gross proceeds received by Grantor or such Operator the cost of such processing which cost for the purposes hereof will be deemed to be forty percent 40 such gross proceeds of sale or if no such armslength transaction is involved the fair market value thereof less the cost of such processing which cost for the purposes hereof will be deemed to be forty percent 40 of said lastmentioned market value c The value of Royalty Substances used or consumed in the operation of a Burdened Well or of production facilities for such well shall not be included in amounts due Grantee Nothing herein contained shall be construed as obligating Grantor or any Operator to treat oil prior to sale but if Grantors or an Operators own oil shall be treated before such sale then Grantees oil will also be treated therewith and in such event a proportionate part of the actual and reasonable direct cost of such treatment and of 6 Municipal Corporation Grant Deed transportation of the oil to the point of sale and a proportionate part of the actual and reasonable direct cost of processing treating compressing handling and transporting gas in connection with the sale thereof in each case excluding any charge for overhead or administration may be deducted in determining amounts due Grantee Nothing herein contained shall obligate Grantor or any Operator to treat or process natural gas nor shall Grantor or any Operator be obligated to save sell or otherwise dispose of natural gas or residual dry gas as the case may be unless there is a market therefore at the well or processing plant at a price and under conditions which Grantor or the Operator whichever is applicable ating as a prudent operator believes to be for the best interest of all persons having an ownership interest in such natural gas or residual dry gas as the case may be or to compensate Grantee for any natural gas which is neither sold nor used No compensation shall be due Grantee for or on account of oil or gas unavoidably lost through evaporation leakage fire or other casualty prior to the sale and delivery of the same through no negligence or fault of Grantor or an Operator and for which no payment is made by such first purchaser d Grantees Royalty Share of any Royalty Substances other than oil and gas and the products thereof which Grantor or an Operator may elect to produce and save or market or utilize shall be based upon the market value at the point of production in the condition as produced of such Royalty Substances Except as otherwise provided herein any of the Royalty Substances used or consumed by Grantor or an Operator or lost priorto the sale and delivery of the same shall be deemed sold for the market value thereof e Settlement payment and accounting for the Royalty Share of Royalty Substances shall be made to Grantee on or before the last day of each calendar month for and with respect to Royalty Substances produced saved and sold during the preceding calendar month and shall include monthly statements showing the computation of payments along with payment of amounts accruing to Grantee hereunder Grantees Royalty Share of Royalty Substances shall be paid for or when taken in kind delivered to Grantee without any charge deduction or offset except as expressly provided herein Note deduction for treatment and transportation are addressed in Paragraph 7c Municipal Corporation Grant Deed f Grantee shall pay and except as otherwise permitted by law and requested or agreed to by Grantee Grantor or an Operator may withhold from payments to Grantee and reflect in the accounting and monthly statements provided for in subparagraph e above any and all taxes or other assessments made or imposed directly specifically and unambiguously on the volume or value of the Royalty Share of Royalty Substances if as and when produced from a Burdened Well including any severance tax socalled Windfall Profits tax and any federal or state income tax Other than as provided in the foregoing provisions ofthis subparagraph fl Grantee shall have no liability or responsibility for taxes levied upon or assessed against any improvements fixtures or personal property or for taxes fevied upon or assessed against any real property or any right title or interest in or to any real property g Grantor and any Operator at its own cost and expense shall pay for all labor performed and materials fumished in the exercise of the rights excepted herefrom and reserved hereunder and Grantee shall not be chargeable with or liable for any part thereof The provisions of this conveyance shall not either expressly or by implication be deemed to impose any obligation upon Grantee or persons acting by through or under Grantee as to the time and nature of operations to be conducted nor any obligation to maintain any such operations after commencement thereof and all operations if any and the extent and duration thereof shall be solely at the will and discretion of Grantor and those other than Grantee acting by through or under Grantor h Grantor and any Operator shall indemnify and defend Grantee and hold it and the Royalty Share of Royalty Substances harmless and free from and against every lien claim demand loss and liability which shall arise out of or be asserted to have arisen out of or in connection with i the exercise of the rights excepted herefrom and reserved hereunder to any person ii any activities or operations of Grantor or any such Operator and iii the doing of any labor or the furnishing of any materials or supplies to any of them or to persons acting for the benefit or at the direction of any of them 8 Grantee may elect from time to time to take and receive from Grantor or any Operator whichever has control and possession of Royalty Substances produced from any Burdened Well the Royalty Share of Royalty Substances or any of them in kind in lieu of g Municipal Corporation Grant Deed the purchase or sale thereof by Grantor or an Operator in which event the Royalty Share of such Royalty Substances shall be delivered to Grantee Provided however that a change from payment in cash to delivery in kind or vice versa may not be made more often than once in any calendar year and then only on 60 days prior written notice to Grantor or an Operator The Royalty Share of Royalty Substances delivered to Grantee in kind shall be of the same quality as the Royalty Substances sold and delivered for Grantors and any Operators own account and if the Royalty Substances of Grantor and any Operator shall be treated before such sale and delivery then Grantees Royalty Share of Royalty Substances will be treated therewith before delivery to Grantee and Grantee in such event shall pay a proportionate part of the cost of treatment The actual and reasonable direct costs incurred by Grantor or any Operator to deliver the Royalty Share of the Royalty Substances to Grantee ie excluding any charge for overhead or administration shall be paid for by Grantee In the event Grantor or any Operator shall have or construct or at any time use any pipeline or other facility for the transportation of any Royalty Substance produced from a Burdened Well to any transporting pipeline or a point of sale Grantee shall have the right at Grantees election to require the transportation through such pipeline or other facility of any or all of Grantees Royalty Share of such Royalty Substance Should Grantee so elect Grantee shall pay a transportation charge to Grantor or any Operator as the case may be equal to the actual incremental added cost incurred over and above the cost of transporting Grantors or any Operators production when using facilities of others or the actual incremental added operating cost of the transportation of Grantees production over and above the cost of transporting Grantors or Operators production when using its own facilities excluding all capital outlays overhead or administrative costs interest on capital investment and charges for depreciation 9 The prevailing party in any legal action between the parties to this conveyance and their respective successors and assigns concerning the interpretation application or enforcement of this conveyance shall be entitled to recover in addition to any and all relief to which it is otherwise entitled its attorney consultant and expert witness fees actually and reasonably incurred therein both in trial court and appellate proceedings 10 This conveyance constitutes the entire agreement and understanding between the parties concerning the royalty granted herein and any and all prior oral and 9 Municipal Corporation Grant Deed written statements representations and commitments between the parties with respect to that subject are merged into and superseded by this written conveyance This conveyance may not be modified other than by a writing signed by both of the parties 11 This instrument and all its terms conditions and stipulations shall extend to the benefit of and be binding upon all the successors and assigns of Grantor and Grantee and other persons claiming by through and under them More specifically and without limiting the generality of the foregoing Grantees ownership of the Royalty Share of Royalty Substances shall extend to all of the Subject Property in which Grantor now owns or hereafter acquires an interest notwithstanding that Grantor may at any time hereafter transfer all or any part of its interest therein to any other person 12 This conveyance may be executed in any number of counterparts all of which shall be deemed to constitute a single instrument and which may be collected together into a single instrument for recording IN WITNESS OF WHICH Grantor and Grantee have caused this conveyance to be executed on the date set forth in the respective attached acknowledgment of execution on their behalf but effective as of the Effective Date set forth above GRANTOR GRANTEE City of Hermosa Beach Macpherson Oil Company a California municipal corporation a California corporation f By rr r By iG v Howard Fishman Mayor ponald R Macpherson President and Chief Executive Officer ATTEST g L Elaine Doerfling CityClerk Approved as to form Michael Jenkins Jenkins Hogin LP lttorneys for theity of Hermosa Beach i 1 Municipal Corporation Grant Deed RECORDING REQUESTED BY AND WHEN RECORDED PLEASE RETURN TO Macpherson Oii Company 2716 Ocean Park Boulevard Suite 3080 Santa Monica CA 90405 ATTN Mr Donald Macpherson PLEASE MAIL TAX STATEMENTS AND RELATED MATERIALS TO THE ABOVE Same as above Space above for Recorders use only pease Special Indexing Request Recorder Please Index as Granto both Macpherson Oii Company and ndward Associates ASSIGNMENT AND BILL OF SALE With Reservation of Overriding Royalty Mineral Rights The undersigned requests that the amount of documentary transfer tax due in connection with the recording of this instrument be shown on a separate piece of paper to be affixed to the document by the recorder after the permanent record is made and before the original is retumed as specified in Section 27321 of the Govemment Code Rev Tax Code 11932 Affects Assessors Parcels No 4187031900 4188001901 4187001902 4183001901 4182001900 4181037900 4181036900 4181035900 4181034900 4169038901 4184026900 4185001902 4187 023900 4187023901 4187023902 4187023903 4188024901 4188017902 4187018900 4187017900 4188019907 4187024902 4183004903 4181005900 4181005901 4182029903 4181004901 4181 004900 4182030900 4182030901 4182030902 4192030903 4181011900 4188024900 418802900 4188026901 4188026902 4186018900 4186027900 4160025902 4160025903 4160026900 4185 023904 4187005902 4183002902 4183002903 4183002901 4183002900 4183003900 4183OD3901 4183003902 4183003903 4183003904 4183013900 4187020904 4187020907 4188026901 4187 020904 4187020904 4187020903 4187020907 4187024902 4187020905 4187020906 4186003 900 4185016900 4187014900 This Assignment and Bill of Sale is made by and from Macpherson Oil Company a California corporation for itself and Windward Associates a Catifornia limited partnership of which it is the general partner as Granto to and accepted by Hermosa Acquisition LLC a Delaware limited liability company as Grantee effective as of March 2 2012 the Effective Date RECITALS 1 In 1984 the voters of the City of Hermosa Beach County of Los Angeles State of California the Cit approved two ballot measures excepting contemplated oil Assignment and Bill of Sale 1 and gas operations on and from the surface of a Cityowned maintenance yard site the City Yard and a schoof site owned by the Hermosa Beach City School District the Schoo Site from a thenexisting general ban on oil and gas operations within the incorporated area of the City Thereafter the City and the Hermosa Beach City School District the School District in their proprietary capacities as lessors made and entered into separate oil and gas leases with Grantor as lessee those leases being more specifically described as a an oil and gas lease between the City and Grantor with respect to certain Cityowned lands located landward of the mean high tide line of the Pacific Ocean within the incorporated area of the City the Ciiyowned Uplands commonly known and hereinafter referred to as Oil and Gas Lease No 1 dated October 14 1986 and recorded March 26 1987 as document no 87 452659 official records of the Los Angeles County Recorder amended by instruments dated December 16 1986 September 27 1988 and July 23 1991 and superseded in its entirety by a subsequent oil and gas lease between the City and Grantor with respect to both the Cityowned Uplands and the Cityowned tidal and submerged lands located seaward of and within onenautical mile of the mean high tide line of the Pacific Ocean within the incorporated area of the City collectively the Cityowned Tidelands commonly known and hereinafter referred to as Oil and Gas Lease No 2 dated January 14 1992 a memorandum of which was recorded April 9 1998 as document no 98 581404 in the official records of the Los Angeles County Recorder the City Lease and b a subsurface oil and gas lease between the School District and Grantor dated October 2 1989 and recorded March 25 1991 as document no 91 419501 in the official records of the Los Angeles County Recorder as amended by instrument dated August 10 1991 the School Lease 2 The City in its governmental capacity by City Council Resolution certified a final project EIR in 1990 but thereafter by further City Council Resolution approved its Conditional Use Permit No 935632 dated August 12 1993 the CUP for a consolidated oil and gas project confining oil and gas project surFace use and improvement to the City Yard area from which subsurface oil and gas operations were contemplated to locations throughout the incorporated area of the City including the Cityowned Uplands and the Cityowned Tidelands the Project Area and an addenda to the previously certified environmental impact report addressing the consolidation of surFace use and improvement to the City Yard the certified environmental impact report and approved addenda are hereinafter referred to in aggregate as the EIR The term Project is used hereinafter to refer to and include activities improvements and operations involved in the exploration for production and removal of oil gas and other hydrocarbon substances and substances produced in association with them on and from a surface location within the incorporated area of the City to subsurFace locations anywhere within the incorporated area of the City including the Cityowned Uplands and the Cityowned Tidelands 3 The California State Lands Commission approved the making of the City Lease including by its formal action of March 8 1994 after an earlier June 30 1992 approval had been set aside by the Superior Court the State Lands ApprovaP Assignment and Bill of Sale 2 4 Grantor as lessee also made and entered into various subsurface oil and gas leases of varying dates with private party lessors with respect to lands within the incorporated area of the City all such leases existing and hereafter acquired are hereinafter collectively referred to as the Townlot Leases the existing Townlot Leases being more fully described in the attached Exhibit A provided however that the assignment hereinafter of the existing Townlot Leases includes each and all existing oil and gas lease now held by Grantor from private party lessors with respect to lands within the incorporated area of the City whether or not described or correctly described in Exhibit A 5 The California Coastal Commission in its formal hearing of February 4 1998 approved the Project and conditionally approved Coastal Development Permit No E9628 for the Project the Coasta Approvar 6 Grantor has also obtained from the South Coast Air Quality Management District all Permits to Construct necessary for the Project the SCAQMD Permits 7 In November 1995 the voters of the City enacted Measure E an initiative measure that banned oil drilling in the City On December 8 1998 the City by formal action of its City Council withdrew its support and approval of the Project based on its determination that the Project as then constituted presented an unacceptable public safety risk Thereupon Grantor filed a crosscomplaint for monetary damages against the City in an already pending action initiated by opponents of the Project ie Hermosa Beach Stop Oil Coalition et al v City of Hermosa Beach Los Angeles County Superior Court Case No BC172546 hereinafter referred to as the Action The California Court of Appeal ruled in the Action both that Measure E applied to the Project and that its passage entitled Grantor to sue the City for monetary damages and thereafter also ruled that the Citys December 1998 determination that the Project as then constituted presented an unacceptable public safety risk might constitute a defense to Grantors damages claim if the evidence presented at trial satisfied the limitations upon such a defense set forth by the Court of Appeal 8 Grantor and EB Natural Resources Management Corporation a California corporation and an affiliate of the Grantee EBB along with the City have made and entered into that certain Settlement Agreement and Reease dated as of March 2 2011 the Settlement Agreement which is incorporated fully herein reference being made to a separate complete and fully executed duplicate original of the Settlement Agreement in the hands of each of Grantor and EB and of the City for further particulars Among other specific provisions the Settlement Agreement provides for a the settlement and dismissal of the Action and b the assignment by Grantor to Grantee of all of the right title and interest of Grantor in to and under the Lease the School Lease any and all Townlot Leases the CUP and EIR the State Lands Approval the Coastal Approval and any and all other rights it may have in or associated with the Project without any warranty of title subject to the reservation or grant to Grantor of an overriding royalty interest of One and Onehalf Percent of One Hundred Percent 112 of 100 of all oil gas and other hydrocarbon substances and substances produced in association with them which may be produced in the course of the Project from the Project Area under the Project Leases as hereinafter Assignment and Bill of Sale 3 defined or allocated to any of the Project Leases or any part of the Project Area pursuant to a pooling arrangement line well agreement or unitization or communitization agreement which may be entered into by Grantee As used herein the Project Leases means and includes the City Lease the School Lease andor any of the Townlot Leases as currently framed or hereafter from time to time modified in any respect as well as any continuation extension renewal restatement ratification or replacement of any of them as may be made taken or acquired by Grantee any successor or assign of Grantee or any entity in which Grantee or its successor or assign has an ownership interest or is under common ownership or control with or otherwise from the Project Area ie whether or not a specific subsurface point of production at which such substances enter a well bore is located within or outside the area that is subject to any one or more of such leases and whether or not a specific subsurface point of production at which such substances enter a well bore is located within an area subject to any further Townlot Leases provided only that such subsurFace point of production is located within the Project Area or allocated to any of the Project Leases or any part of the Project Area pursuant to a pooling arrangement line well agreement or unitization or communitization agreement which may be entered into by Grantee all upon and subject to the terms provisions and conditions hereinafter set forth Now therefore in consideration of the foregoing and of other consideration the receipt and adequacy of which are hereby mutually acknowledged by Grantor and Grantee upon and subject to the terms and provisions set forth andor incorporated herein and effective as of the Effective Date 1 Conveyance Grantees Assumption and Aureement to Perform Exceptions and Reservations 11 Convevance Subject to the exceptions and reservations set forth in Section 13 below Grantor does hereby sell assign transfer and convey to Grantee all of Grantors existing right title and interest in to and under the following described and defined Property Hydrocarbons Permits Project Contracts and Files and Records excluding however those which are hereinafter described or included by reference in Section 13 below as Excepted Reserved Assets all of which ie a through e immediately below but subject to the exception and reservation referenced in the foregoingJ are herein collectivefy referred to as the Project Assets as well as any and all other rights and interests of Grantor in to or under or specifically and exclusively associated with the Project Assets although the same may be improperly described in or omitted from the body of this instrument it being the express mutual intent of Grantor and Grantee that except as provided in Section 13 below all of Grantors right title and interesf in the Project Assets be hereby conveyed to Grantee hereunder the Project Assets subject to the exception and reservation referenced in the foregoing being defined and described as follows a The City Lease the School Lease each of the existing Townlot Leases and any and all other oil gas or mineral leases and interests in rights to explore for and produce oil gas or other minerals including but not limited to working interests carried working interests net revenue interests rights of assignment and reassignment reversionary interests Assignment and Bill of Sale 4 backin interests production payments and royalty interests of any kind or description each and all of which are hereinafter collectively referred to as the Propert b All of Grantors right title and interest in and to any and all oil gas and other hydrocarbon substances and substances produced in association with them within or which may be produced from the Project Area each and all of which are hereinafter collectively referred to as the Hydrocarbons c The EIR CUP State Lands Approval Coastal Approval SCAQMD Permits and any and all other franchises licenses permits approvals consents orders and decisions of regulatory agents or authorities and certificates and other authorizations and other rights granted by governmental agents or authorities that relate specifically and exclusively to the Project the Property or the Hydrocarbons or to the ownership or operation of any thereof collectively the Permits d All contracts permits road use agreements rightsofway easements licenses servitudes operating agreements and any other agreements which relate specifically and exclusively to any of the Property the Hydrocarbons and the Permits or the ownership or operation of any thereof or the production treatment sale storage or disposal of the Hydrocarbons together with all rights obligations privileges and benefits of Grantor thereunder arising on or after the Effective Date collectively the Project Contracts and e Originals insofar as in the possession or under the control of Grantor or its affiliates and if not the file copies in the possession or under the control of Grantor of all of the files records information and materials relating specifically and exclusively to the Property Hydrocarbons Permits and Project Contracts insofar as Grantor is not prohibited from transferring the same to Grantee by law or agreement with any third party including without limitation i lease land and title records including abstracts of title title opinions certificates of title title curative documents division orders and division order files the Project Contracts geophysical geological engineering and other technical data if any relating to specifically and exclusively to the Project the Property or the Hydrocarbons and environmental files and records collectively the Files and Records provided however that a set of copies of any or all such Files and Records may be made and maintained by Grantor at its sole option and cost subject to ongoing confidentiality requirements under the Settlement Agreement to the extent such requirements apply to such information 12 Grantees Assumation and Aareement to Perform Indemnitv For the benefit of the City with respect to the City Lease and for the benefit of the School District with respect to the School Lease and for the benefit of each and all of the several respective lessors under each of the existing Townlot Leases and for the benefit of Grantor as to each and all of the City Lease the School Lease and the Assignment and Bill of Sale 5 existing Townlot Leases Grantee hereby assumes and agrees fulfy and timely to perForm each and all of the obligations provided to be performed on the part of the lessee under each and all of the City Lease the School Lease and the existing Townlot Leases with the same force and effect as if Grantee had been the original signatory lessee named in each of them Grantee agrees to promptly satisfy all of the requirements of each and all of the City Lease the School Lease and the existing Townlot Leases for making the within assignment to Grantee effective including without limitation the provisions of Section 24a of the City Lease Grantee agrees to indemnify Grantor and to hold Grantor Grantors City Royalty and Grantors Share of Royalty Substances harmless from and against any and alt claims demands liens damages loss or liability that may arise out of or be asserted by a third party to arise out of a any failure on the part of Grantee to perform the obligations which it has assumed and agreed to perform in this Section 12 or out of any act b any negligent or otherwise wrongful omission on the part of Grantee or any person acting by through or under Grantee or at its direction or on its behalf either in the exercise of its rights and the discharge of its obligations under any of the City Lease the School Lease or any Townlot Lease or otherwise in the course of its carrying out the Project or c the doing of any labor or the furnishing of any materials or supplies to any of Grantee or to persons acting for the benefit or at the direction of Grantee 13 Excepted Reserved Assets includinq Grantors Citv Rovaltv and Grantors Reserved ORR11 Provided however that there are specifically excepted from this conveyance and reserved to Grantor the following ie a through j inclusive which are herein referred to as the Excepted Reserved Assets a Grantors legal opinions or analyses and information protected by attorneyclient privilege b All corporate financial and tax records of Grantor however Grantee shall be entitled to receive copies only of any financial and tax records owned by or under the control of Grantor and which specifically and exclusively relate to the Project Assets ie as defined and determined without reference to this Section 13b or which are beneficial andor necessary for Grantees effective ownership administration or operation of the Project Assets c All rights titles claims and interests of Grantor related to the Project Assets ie as defined and determined without reference to this Section 13c for any time prior to the Effective Date under any policy or agreement for insurance under any bond or to any insurance or condemnation proceeds or awards d Claims of Grantor for refund of or loss carry forwards with respect to and any liability for i any taxes or other assessments against or attributable to the Project Assets ie as defined and determined without reference to this Section 13d for any time prior to the Effective Date and ii income or franchise taxes attributable to the Project Assets ie as defined and determined without reference to this Section 13d for any time prior to the Effective Date Assignment and Bill of Sale 6 e All amounts due or payable to Grantor as adjustments or refunds under any contracts or agreements affecting the Project Assets ie as defined and determined without reference to this Section 13e for all times prior to the Effective Date fl All amounts due or payable to Grantor as adjustments to insurance premiums related to the Project Assets ie as defined and determined without reference to this Section 13fl for atl times prior to the Effective Date g All monies proceeds benefits receipts credits income or revenues and any security or other deposits made attributable to the Project Assets ie as defined and determined without reference to this Section 13g prior to the EfFective Date h All of Grantors patents trade secrets copyrights names marks and logos i That separate Three and OneThird Percent of One Hundred Percent 3 13 of 100 royalty granted by the City to Grantor under the terms of the Settlement Agreement and contained in the Municipal Corporation Grant Deed attached as Exhibit A thereto Grantors City Royalty and Q An overriding royalty interest excepted herefrom and reserved to Grantor of One and Onehalf Percent of One Hundred Percent 112 of 100 hereinafter referred to as Grantors Share of all oil gas and other hydrocarbon substances and substances produced in association with any of them the Royalty Substances which may be produced and in the course of the Project under any of the Project Leases or otherwise from the Project Area ie whether or not a specific subsurface point of production is located within or outside the area that is subject to any one or more of the Project Leases provided only that such subsurface point of production is located within the Project Area or allocated thereto pursuant to a pooling arrangement line well agreement or unitization or communitization agreement which may be entered into by Grantee all upon and subject to the terms provisions and conditions of Section 14 below Grantors Reserved ORR If Grantee its successor or assign shall hereafter in the course of the Project at any time orfrom time to time acquire any further oil and gas rights interest whether fee or lease or otherwise or any other right title or interest in or to any land then remaining subject to any of the Project Leases or otherwise within the Project Area and as often as the same shall occur and if in the exercise of such right title or interest Grantee its successor or assign shall produce any of the Royalty Substances from the subsurface of the Project Area ie whether or not such right title and interest andor such production also extends beyond the Project Area then insofar as concerns the rights and obligations of Grantee and Grantor hereunder Grantors Reserved ORRI hereunder shall nevertheless continue to apply fully to all of the production of Royalty Substances thus obtained by Grantee its successor or assign to the end that Grantor shall in any Assignment and Bill of Sale 7 and all such events own and receive the full ORRI share of all Royalty Substances produced from or aliocated to the land now or hereafter subject to any of the Project Leases or otherwise to any part of the Project Area Grantee agrees to either purchase Grantors Share of Royalty Substances or to sell Grantors Share of Royalty Substances for the benefit and account of Grantor all of Grantors Share of Royalty Substances which Grantor has not elected to take inkind as provided below in this subparagraph Payment by Grantee to Grantor for Grantors Royalty Share of Royalty Substances shall be made in the amount and time determined in accordance with the provisions of the City Lease for the royalty payable to the City thereunder except as to the difference in royalty percentage befinreen Grantors 112 of 100 Royalty Share and the royalty percentage of the City determined pursuant to the City Lease Grantors rights with respect to the information to be included by Grantee along with payment to Grantor of amounts due it hereunder and with respect to contracts for the sale of Royalty Substances shall be as provided with respect to the City as lessor in the City Lease Grantor may elect from time to time in the manner and subject to the terms and conditions provided in the City Lease for the right of the City to take its royalty share thereunder inkind to take and receive Grantors Share of Royalty Substances or any of them in kind in lieu of the purchase or sale thereof by Grantee 14 Grantors Reserved ORRI Grantors Reserved ORRI is subject to the following terms a There is excepted herefrom and reserved to Grantee its successors and assigns i all other right title and interest in to and under each of the Project Leases and ii the sole and exclusive right of exploring for Royalty Substances under each of the Project Leases and of producing and removing Royalty Substances from the land subject to each of the Project Leases or otherwise within the Project Area and of entry into and use and improvement of real property within the Project Area in connection with such exploration production and removal such that without limiting the foregoing operations in connection with the exploration or production and removat of Royalty Substances if any under any of the Project Leases or otherwise within the Project Area and the nature frequency extent and duration thereof shall be determined by Grantee in its sole discretion and iii subject to the terms hereinafter provided the sole and exclusive right to negotiate make and enter into modify and enforce pooling arrangements and unitization or communitization agreements concerning the exploration for and the production and removal of Royalty Substances under each of the Project Leases or otherwise within the Project Area and iv the sole and exclusive right and the obligation to negotiate make and enter into modify and enforce contracts for the sale of Royalty Substances produced under or allocated to each of the Project Leases or otherwise within the Project Area including alike Grantors Share of Royalty Substances reserved to it hereunder and the remaining production share of Grantee subject Assignment and Bill of Sale g however to Grantors right as provided in this Assignment and Bill of Sale to take in kind and to all other terms hereinafter provided b The foregoing reservation to Grantee of the sole and exclusive right to negotiate make and enter into modify and enforce pooling arrangements line well agreements and unitization or communitization agreements concerning the exploration for and the production and removal of Royalty Substances under each of the Project Leases or otherwise within the Project Area and of the sole and exclusive right and the obligation to negotiate make and enter into modify and enforce contracts for the sale of Royalty Substances produced under or allocated to each of the Project Leases or otherwise within the Project Area is made subject to i the requirement and obligation of Grantee to act in regard to such matters fairly and in good faith and ii the limitation and requirement that all such arrangements agreements and contracts shall apply in all respects equally to Grantee and Grantor or insofar as their respective interests differ strictly in proportion to their respective interests and iii the limitation and requirement that Grantee shall not include in any such arrangement agreement or contract provisions which conflict with or deviate from the provisions of this instrument In exercising the rights enumerated above in this subparagraph insofar as affecting the right title and interest of Grantor Grantee shall act as the agent and fiduciary of Grantor and shall exercise the utmost good faith in all matters pertaining to Grantors Share of Royalty Substances c Grantors Reserved ORRI and Grantors City Royalty are ownership interests in the Royalty Substances themselves whether produced under or allocated to any of the Project Leases or otherwise from or allocated to any part of the Project Area at the time of their production and severance from the land and not a mere right to a share of revenue from the sale of Royalty Substances 2 Subject to Settlement Aqreement This instrument is made and accepted upon and subject to all of the terms and provisions of the Settlement Agreement provided however that if there is any irreconcilable conflict between the provisions of this instrument and of the Settlement Agreement then the provisions of this instrument shall control over the provisions of the Settlement Agreement to the extent of such irreconcilable conflict but no further 3 Further Assurances Each of the parties agrees to take without unreasonable delay upon request by the other party such further commercially reasonable action as may be requested by the other party in order to fully effectively and unambiguously vest in the requesting party the right title and interest assigned andor reserved to it hereunder or otherwise to fully implement and give effect to the intention of the parties concerning the scope and effect of this instrument including without limitation the execution and delivery and participation in the preparation of such further conveyances division orders transfer orders and all other documents appropriate to provide the requesting party the rights obligations and benefits mutually contemplated to be acquired pursuant to this instrument and the Settlement Assignment and Bill of Sale 9 Agreement Without limiting the generality of the foregoing whenever either a Grantee shall be reasonably concerned either that the provisions of this instrument may be ineffective for any reason to effectively and unambiguously vest in Grantee the ownership of the Project Assets or that Grantees right title and interest as contemplated hereunder may be in any respect not adequately perfected in the official records of the Los Angeles County Recorder or b Grantor shall be reasonably concerned either that the provisions of this conveyance may be ineffective for any reason to create in Grantor the ownership of Grantors Share of Royalty Substances or that Grantors right title and interest as contemplated hereunder may be in any respect not adequately perfected in the official records of the Los Angeles County Recorder and c in any such event whether or not any express claim or formal judicial determination shall have been made on any of those subjects then in any such event i Grantee covenants and agrees at the request of Grantor to execute and deliver to Grantor in recordable form such further conveyance or other instrument drawn and provided by Grantor as may be necessary to vest in Grantor marketable title to Grantors Share of Royalty Substances upon and subject to all of the terms and provisions of this instrument and ii Grantor covenants and agrees at the request of Grantee to execute and deliver to Grantee in recordable form such further conveyance or other instrument drawn and provided by Grantee as may be necessary to vest in Grantee marketable title to the Project Assets upon and subject to all of the terms and provisions of this instrument 4 Proiect Assets Conveved As Is and Where Is THE PROJECT ASSETS ARE CONVEYED BY GRANTOR TO GRANTEE ASS AND WHEREIS AND GRANTEE ASSUMES THE RISK OF DESCRIPTION TITLE AND CONDITION OF THE PROJECT ASSETS AND SHALL SATISFY ITSELF WITH RESPECT THERETO WITHOUT LIMITING THE GENERALITY OF THE FOREGOING THE FILES AND RECORDS ARE TRANSFERRED WITHOUT WARRANTY OR REPRESENTATION AS TO ACCURACY OR COMPLETENESS OR AS TO ANY OTHER SUBJECT AND IN NO EVENT SHALL GRANTOR HAVE ANY LIABILITY WHATSOEVER WITH RESPECT TO THE USE OF OR RELIANCE UPON ANY OF THE FILES AND RECORDS BY GRANTEE OR BY ANY PERSON ACTING BY THROUGH OR UNDER GRANTEE 5 Notices All notices demands or other communications of any kind required or desired to be given by Grantor or Grantee respectively hereunder shall be in writing and shall be deemed delivered either a fortyeight 48 hours after depositing the notice demand or other communication in the United States Mail certed or registered postage prepaid addressed to Grantee or Grantor respectively at the addresses set forth below or b immediately upon receipt during normal business hours or if received outside of normal business hours then at the commencement of normal business hours on the next business day following receipt if sent by email or facsimile to the email address or facsimile number set forth for the intended recipient of the notice or demand below Assignment and Bill of Sale 10 To Grantor Macpherson Oil Company 2716 Ocean Park Boulevard Suite 3080 Santa Monica CA 90405 3104523880 3104520058 facsimile no Email DonMacpherson@macphersonoilcom To Grantee Hermosa Acauisition LLC In Care of EB Natural Resources Management Corporation 1600 Norris Road Bakersfield CA 93 6616791797 facsimile Email slayton@ebresourcescom Notice of change of mailing address email address or facsimile number shall be given and effective in the same manner and time provided above Rejection or other refusal to accept or the inabilitr to deliver because of changed address of which no specc notice was given provided that a change is not otherwise actually known to the party attempting notice shall be deemed to constitute receipt of the notice demand or other communication sert 6 Entire Aureement Amendment Severabilitv The terms and provisions expressly set forth and expressly incorporated into this instrument constitute the entire agreement and understanding between the parties concerning its subject matter and any and all prior oral and written statements representations and commitments befinreen the parties with respect to that subject are merged into and superseded by this written instrument This instrument shall not be amended except by a writing signed by the parties hereto or their respective interested successors and assigns If any term or provision of this instrument shall to any extent be determined by a Court of competent jurisdiction to be invalid or unenforceable the remainder of this instrument shall not be affected thereby and each term and provision of this instrument shall be valid and be enforceable to the fullest extent permitted by law 7 Successors and Assins Third Parties The rights and obligations provided in this instrument shall extend to the benefit of and burden the original parties and their respective successors and assigns Other than with respect to the successors and assigns of the parties and except the contemplated benefit to the City School District and other lessors under the provisions of Section 12 above the provisions of this conveyance are not intended to confer any rights or create any obligations in favor of or against any third party 8 Attornev Fees The prevailing party in any legal action concerning the interpretation application or enforcement of this instrument shall be entitled to recover its attorney fees and costs actually and reasonably incurred in connection with that legal action including those incurred in connection with any appellate proceEdings involved in such legal action in addition to all such other relief to which it is otherwise entitled Assignment and Bill of Sale 11 9 Governinq Law This instrument shall be governed by and construed in accordance with the laws of the State of California without giving effect to principles of conflicts of law 10 Counterpart Execution This instrument may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original and all such counterparts shall together constitute but one and the same instrument IN WITNESS OF WHICH this instrument is executed and delivered by the parties on the respective date set forth in the acknowledgement of the signature on their behalf attached hereto and as of the Effective Date GRANTOR MACPHERSON OIL COMPANY a California corporation gy Name tiH Title I a r i GRANTEE HERMOSA ACQUISITION LLC a Delaware limi ility compan By Name Sp D aaTc Title sr Z CITY CONSENT TO ASSIGNMENT AND RELEASE terms appearing below in bold text are used with the same meaning as provided in the foregoing provisions of this instrument The City of Hermosa Beach a California municipal corporation herein and hereinabove referred to as the City and the lessor under the hereinabove described and defined City Lease does hereby consent to the foregoing assignment by Macpherson Oil Company a California corporation for itself and Windward Associates a California limited partnership of which it is the general partner the Grantor hereinabove named of all right title and interest Grantor in to and under both i the City Lease and ii any and all Cityissued Permits to Hermosa Acquisition LLC a Assignment and Bill of Sale 12 Delaware limited liability company the Grantee hereinabove named except only as hereinabove expressly excepted and reserved to Grantor and in consideration of the foregoing assumption by Grantee and of Grantees agreement to perform for the benefit of the City all of the obligations provided to be performed on the part of the lessee under the City Lease with the same force and effect as if Grantee had been the original signatory lessee named therein the City hereby discharges and releases Grantor from any and all obligations which may have accrued or may hereafter accrue under the City Lease andor any and all Cityissued Permits CITY CITY OF HERMOSA BEACH a California municipal corporation i ay a y Howard Fishman Mayor ATTEST l r h By Z Elaine Doerfling City Clerk Approved as to form Michael Jenkins Jenkins Hogin LLP Attorneys for City of Hermosa Beach I Assignment and Bill of Sale 13 EXHIBIT A to Assignment and Bill of Sale by and from Macpherson Oil Company a California corporation for itself and Windward Associates a California limited partnership to Hermosa Acquisition LLC aDelaware limited liability company effective as of March 2 2012 Schedule of Townlot Leases This page intentionally blank below this line The substance of this exhibit follows Assignment and Bill of Sale 14 EXHIBIT A SCHEDULE OF TOWNLOT LEASES Recording Recording Lessor Lessee Date information Dennis A Sowers Macpherson Oil 11131984 841350148 et al Company Adela M Gay Macpherson Oil 11271984 841397014 Trustee of the Adela Company M Gay Trust et al Richard P Haskins Macpherson Oil 12041984 841425790 et al Company Mortgage Mart Inc Macpherson Oil 01221985 8573730 et aL Company Richard L Ruffell Macpherson Oil 02041985 85135687 et al Company Junior A Judd et al Macpherson Oil 02151985 85184576 Company Kenneth R Brown Macpherson Oil 03011985 85235388 et al Company James R Klatt et al Macpherson Oil 03201985 85307284 Company Roy M Knox et al Macpherson Oil 04011985 85354663 Company Bernard Subkoski Macpherson Oil 04161985 85426373 et al Company Russell C Salinger Macpherson Oil 07291985 85869425 et al Company Steve S Triantis Macpherson Oil 07291985 85869426 et al Company David G Nickel Macpherson Oil 08191985 85956365 et al Company Charles F Brown Macpherson Oil 01101986 86038437 et al Company Kathleen G Briggs Macpherson Oil 01211988 8888027 et al Company Margaret V Woolley Macpherson Oil 05271988 88845692 Company Helena C Scanlon Macpherson Oil 08101989 891289800 etc et al Company Mary E Keeler Macpherson Oil 09151989 891492729 et al Company 1 Assignment and Bill of Sale Recording Recording Lessor Lessee Date Information David T Macpherson Oil 11131989 891825535 Schumacher et al Company Russell C Salinger Macpherson Oil 06181985 85703612 et al Company Frances C Lupo Macpherson Oil 12071989 891965800 et al Company John Charles Reid Macpherson Oil 12131989 892001665 Pursell et al Company Danny V Ritter Macpherson Oil 01221990 90113819 et al Company David T Macpherson Oil 01221990 90113820 Schumacher Compan Warren H Wright et Macpherson Oil 0301 1990 90336024 al Compan James P Lyons Macpherson Oil 04201990 90739888 et al Company Irene Cox et al Macpherson 08151990 901419787 Oil Company Morton N Macpherson 08201990 901440120 Weindlin et al Oil Company Hermosa Beach City Macpherson Oil 03251991 91419501 School District of Company Los Angeles County California Louis W Bourgeois Macpherson Oil 01211993 93129530 et ux Compan Darlene D Sowers GLG Energy 10271994 941950611 et al LP and Stocker Resources Inc Christopher P Smith Macpherson Oil 11071994 942015307 Compan Adela Miller Gay as Macpherson Oil 05231994 94990364 Trustee et al Company Betty Medlicott as Macpherson Oil 06061995 95901164 Trustee et al Company Richard P Haskins Macpherson Oil 06061995 95901165 et al Company Betty Medlicott as Macpherson Oil 06151995 95957257 Trustee Compan 2 Assignment and Bill of Sale Recording Recording Lessor Lessee Date Information Patrick R Haskins Macpherson Oil 06151995 95957258 as Trustee Com an Shirley B Cassell et Macpherson Oil 07241996 961189907 al Compan Charles F Brown Macpherson Oil 10071996 961638341 Company Barbara Bek Payne Macpherson Oil 03011996 96336523 as Trustee et al Compan Darlene D Sowers Macpherson Oil 03011996 96336524 et al Company and Stocker Resources LP William Howard Macpherson Oil 04041996 96543902 Sadler Company William F Meistrell Macpherson Oil 05151996 96762654 et al Company Wayne S McNeill Macpherson Oil 04221996 96630184 et al Company Quentin L Thelen Macpherson Oil 04041997 97518724 et al Compan Alfred Salido et al Macpherson Oil 06091997 97857963 Compan Jean E Carrey Macpherson Oil 04281998 98704103 et al Compan 3 Assignment and Bill of Sale From: F.O. Huebscher [mailto:fred@politicalscientists.com] Sent: Monday, June 23, 2014 3:08 PM To: Nanette Barragan; Michael DiVirgilio; Peter Tucker; Carolyn Petty; Hany Fangary; Tom Bakaly; Ann Yang; Elaine Doerfling Subject: Item 2(a) on the City Council Agenda of June 24, 2014 Dear City Manager Bakaly and Councilmembers, I am writing to you about Item 2(a) on the City Council Agenda of June 24, 2014. I have a few questions: 1. Will doubling the salary of the City Clerk for six months this year have a PERS impact? 2. What will be the additional cost to the City in PERS contributions if the increased salary is approved? 3. What will be the projected annual cost of future retirement benefits for Ms. Doerfling because of this higher salary? 4. It is my understanding that PERS retirement pension payments are based upon the highest one year salary of the retiree, is this true? 5. If so, would increasing Ms. Doerfling's salary this year make 2014 her highest one year salary as an employee of the City? 6. And if this would be her highest one year salary would her PERS retirement benefit thus be paid based on 2014 with the doubled salary? In the past, I have written in to ask about the status of council meeting minutes that were months behind. Ms. Doerfling has indicated on at least two occasions that she was ill (see attached memos) and thus behind in keeping the City Council Minutes current. I also believe at a recent budget session, Ms. Doerfling indicated that she could use help. When someone asks for assistance the natural course of action should be to hire another person to assist or pay a current employee overtime to assist, not double the person's hours and pay. Providing assistance to Ms. Doerfling especially given her health would seem like the better approach. -- Fred Huebscher 310-374-0568 www.politicalscientists.com City of Hermosa Beach Compensation Survey Doug Johnson, Vice President Ralph Andersen & Associates Why Surveys Are Done •Anticipate and understand what labor market is doing •Be deliberate in making changes or allocating resources to wages and benefits •Provide defensibility for compensating employees •Minimize market surprises where key resources are suddenly scarce or are recruited away from the City due to uncompetitive salaries and benefits •Becoming a de-factor requirement for bargaining •Public and Private employers do the same things; just a difference in accessibility of data 6/24/2014Hermosa Beach2 Fact-Finding •State law now requires a fact-finding process before an agency can declare impasse in bargaining •Fact-finders rely heavily on market survey data •Fact-finders are not receptive to “ability to pay” arguments •The selection of survey agencies is a part of the fact- finding process and must be based on logical comparability criteria •The city may want to share the list of survey agencies with employees 6/24/2014Hermosa Beach3 Pay Plan Development 6/24/2014Hermosa Beach4 Org Structure/ Job Analysis Classifications w/ Descriptions Reconciliation Internal Equity AnalysisMarket Analysis Compensation Policies •Labor Market Selection •Labor Market Position •Base Salary vs. Benefits •Use of private sector data/sources •Internal vs. External Equity •Pay Delivery Methods 6/24/2014Hermosa Beach5 Labor Market Selection Criteria •Historical practices •Nature of services •Geographic proximity •Employer size •Economic similarity •Efficiency in providing data 6/24/2014Hermosa Beach6 Nature of Services •Cities •Local County •Special Districts (fire, recreation) •Other Public Agencies •Private Sector •Police and Fire 6/24/2014Hermosa Beach7 Geographic Proximity •Reasonable commuting distance •County Limits •Surrounding Counties/Region •Depends on number of comparable employers •Services •Size •Economic similarity 6/24/2014Hermosa Beach8 Employer Size •Population, revenues, expenditures •Avoid small employers with insufficient jobs •Geographic region and proximity may require using larger employers •Daytime population (tourism, business parks) won’t be evident in census population •Size impacts with respect to job matching can be analyzed as part of job comparability assessment 6/24/2014Hermosa Beach9 Economic Similarity •Cost of Living Index •Relative Wage Index •Economic Research Institute (ERI) •Objective •Balance •Avoid extreme differences •Unique challenge for Hermosa Beach •Proximity trumps economic similarity 6/24/2014Hermosa Beach10 Target Selection Criteria •Within 50 miles of city •Multiple service areas (police, fire) •Sufficient size •Similar cost of living (if possible) •No perfect market; balance of selection factors 6/24/2014Hermosa Beach11 Survey Agencies 6/24/2014Hermosa Beach12 Survey Agency Population Served Distance Total Revenues Operating Expenditures ERI COL ERI Wage Police Fire Hermosa Beach 19,750 0 $32.6 Mil $27.3 Mil 100.0 100.0 X X Agoura Hills 20,625 43 $15.6 Mil $12.9 Mil 84.2 99.7 Calabasas 23,943 37 $33.2 Mil $31.6 Mil 86.2 99.5 El Segundo 16,897 6 $80.8 Mil $87.8 Mil 86.0 99.8 X X La Canada Flintridge 20,535 34 $18.2 Mil $15.2 Mil 92.9 99.7 La Verne 32,228 50 $45.8 Mil $40.5 Mil 67.5 99.8 X X Laguna Beach 23,225 50 $69.7 Mil $55.6 Mil 104.9 100.2 X X Manhattan Beach 35,619 2 $83.4 Mil $70.8 Mil 119.5 100.7 X X Palos Verdes Estates 13,665 5 $17.1 Mil $15.1 Mil 92.1 99.7 X Rancho Palos Verdes 42,358 12 $29.5 Mil $22.5 Mil 91.4 99.6 Redondo Beach 67,717 2 $119.6 Mil $103.6 Mil 85.2 100.5 X X Santa Fe Springs 17,349 25 $76.1 Mil $57.4 Mil 62.0 99.7 X X Seal Beach 24,591 24 $42.6 Mil $31.8 Mil 84.5 99.8 X South Pasadena 26,011 30 $36.1 Mil $30.2 Mil 93.4 100.5 X X Median 23,943 25 $42.6 Mil $31.8 Mil 86.2 99.8 Data Sources: Population - CA Dept of Finance; 2014 Distance - Google Maps Total Revenues - CA State Controller; 2011-12 Fiscal Year Operating Expenditures - CA State Controller; 2011-12 Fiscal Year Cost of Living Index - Economic Research Institute Relocation Assessor; April 2014 Wage Index - Economic Research Institute Geographic Assessor; April 2014 Private Sector Data •Important data source •Data is harder to obtain •Fewer comparables •No ability to audit data •Different philosophies •Different pay mechanisms •Use is a policy decision 6/24/2014Hermosa Beach13 Public Pay Plan Private Pay Plan Top $ Bottom $ Top $ Bottom $ Private Sector Data •Source: Economic Research Institute Salary Assessor •Subscription based database •Updated quarterly •Includes thousands of jobs, private sector focus (eDOT) •Can be regionalized to the Hermosa Beach market •Comparisons with the City •Limited due to unique services and jobs •Private data does not include bonus/performance payments •Different compensation philosophies •Objective •Macro level assessment 6/24/2014Hermosa Beach14 Sample Private Comparison -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25%Percentage above/below Private Data 6/24/2014Hermosa Beach15 Jobs paid higher than private Jobs paid lower than private Source: Economic Research Institute Salary Assessor Sample of 33 District jobs found commonly in private sector Data does not include bonuses paid in private sector Does not include executive managers U.S. Bureau of Labor Statistics 6/24/2014Hermosa Beach16 Private Sector Wages and salaries Paid leave Supplemental pay Insurance Retirement and savings Legally required State and local government Wages and salaries Paid leave Supplemental pay Insurance Retirement and savings Legally required BLS Employer Costs for employee compensation, December 2013 Compensation Component Private industry State and local government Wages and salaries 70.1%64.5% Benefits 29.9 35.5 Paid leave 6.9 7.3 Supplemental pay 2.9 0.8 Insurance 8.3 12.0 Health benefits 7.8 11.6 Retirement and savings 3.7 9.4 Defined benefit 1.6 8.6 Defined contribution 2.1 0.8 Legally required 8.2 6.0 Next Steps •Provide draft class specifications for employee and management review •Collect and analyze market survey data •Present draft survey findings to the City Council in closed session •Compensation policy decisions will be made with the benefit of market data •Consultant will provide reports for use in the bargaining based on the needs of the labor negotiator 6/24/2014Hermosa Beach17