Agenda packet — Cypress City Council, May 13, 2024

AGENDA

REGULAR MEETING

CYPRESS CITY COUNCIL
May 13, 2024
4:00 P.M. - Closed Session/Workshop
6:00 P.M. - General Session
www.cypressca.org 5275 Orange Avenue
Cypress, California
Interested in speaking to the City Council? Information about participating in the City Council meeting appears at the end of the agenda.

Notice
Pursuant to Government Code Section 54953(b), this Regular City Council Meeting includes teleconference participation by:

Council Member Anne Mallari from Amara Resort and Spa - 100 Amara Lane, Sedona, AZ 86336

CALL TO ORDER
4:00 P.M.

Executive Board Room

ROLL CALL
Cypress City Council, also acting as the Ex-Officio Governing Board of Directors of the Cypress Recreation and Park District
Mayor Scott Minikus
Mayor Pro Tem Bonnie Peat
Council Member David Burke
Council Member Anne Mallari
Council Member Frances Marquez
ORAL COMMUNICATIONS ON CLOSED SESSION / WORKSHOP ITEMS (Limited to 30 minutes - three minutes per speaker. The City Council may adjust the time allotted per speaker.)
The public may address the City Council on Closed Session/Workshop items prior to any action taken. Although Council Members may provide brief responses, the City Council may not engage in a discussion with members of the public during the meeting. Please complete a Speaker's Card to address the City Council in-person. Members of the public are encouraged to communicate with the City Council via email at [email protected] or by calling 714-229-6699.

WORKSHOP SESSION

WORKSHOP SESSION
Fiscal Year 2024-25 Proposed Budget and Capital Improvement Program

CLOSED SESSION
CONFERENCE WITH LABOR NEGOTIATOR
Pursuant to Government Code Section 54957.6
Agency Negotiators: City Manager and Director of Finance and Administrative Services Employee Groups:

Cypress Employees' Association
Cypress Maintenance Employees' Association
Executive Management
Mid-Management
Confidential
CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Initiation of litigation pursuant to Paragraph (4) of Subdivision (d) of Government Code Section 54956.9
Number of Cases: One Case
Potential Defendant: City of Seal Beach
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1)
Southwest Voter Registration Education Project v. City of Cypress Case No. 30-2022-01270865-CU-CR-CJC
Orange County Superior Court

RECONVENE
6:00 P.M.

Council Chambers

PLEDGE OF ALLEGIANCE

REPORT OF CLOSED SESSION / WORKSHOP
City Manager/City Attorney
May 13, 2024 | Page 2

PRESENTATIONS
National Public Works Week Proclamation
National Police Week Proclamation
Introduction of New City Employees
ORAL COMMUNICATIONS ON AGENDA ITEMS (Three minutes per speaker. The City Council may adjust the time allotted per speaker.)
The public may address the City Council on agenda items prior to any action taken. Although Council Members may provide brief responses, the City Council may not engage in a discussion with members of the public during the meeting. Please complete a Speaker's Card to address the City Council in-person. Please follow the instructions at the end of the agenda and wait for the Mayor/City Clerk to call on you to address the City Council virtually. Speakers providing in-person comments will be called first. Members of the public are encouraged to communicate with the City Council via email at [email protected] or by calling 714-229-6699.

CONSENT CALENDAR
All matters listed on the Consent Calendar are to be approved with one motion unless a Council Member requests separate action on a specific item. Council Members voting no or abstaining on a Consent Calendar item may do so without removing the item from the Consent Calendar.

1. Introduce and/or Adopt All Ordinances and Resolutions Presented for Consideration by Title Only and to Waive Further Reading

2. Proclaim the Week of May 12-18, 2024 as National Police Week Prepared by: Alisha Farnell, City Clerk
Recommendation: Proclaim the week of May 12-18, 2024 as National Police Week.

3. Proclaim the Week of May 19-25, 2024 as National Public Works Week Prepared by: Alisha Farnell, City Clerk
Recommendation: Proclaim the week of May 19-25, 2024 as National Public Works Week.

May 13, 2024 | Page 3

4. Approve Plans and Specifications and Award Contracts for Concrete Rehabilitation, Project 356
Prepared by: Doug Dancs, Director of Public Works
Recommendation:

1. Approve Plans and Specifications for Concrete Rehabilitation, Project 356; and

2. Award a contract to CJ Concrete Construction Inc. for $515,440, and authorize a contingency of $62,760; and

3. Approve a Task Order for Construction Inspection Services to AKM Consulting Engineers for $74,384 and authorize a contingency of $7,416.

5. Accept the Sewer System Improvements, Project 354
Prepared by: Doug Dancs, Director of Public Works
Recommendation:

1. Accept the Sewer System Improvements, Project 354, in the amount of $62,575 and approve the final payment of $3,128.75 to Sancon Technologies, Inc.; and

2. Authorize the City Engineer to file a Notice of Completion with the County Recorder.

6. Approve the City Engineer's Report and Adopt a Resolution Declaring the City Council's Intent to Renew Cypress Corporate Center Landscape Maintenance District No. 1 following a June 24, 2024 Public Hearing Prepared by: Doug Dancs, Director of Public Works
Recommendation:

1. Approve the City Engineer's Report for the Cypress Corporate Center Landscape Maintenance District No. 1 for Fiscal Year 2024-25; and

2. Adopt the attached Resolution declaring the City Council's intention to order the renewal of Cypress Corporate Center Landscape Maintenance District No. 1 for maintenance of the landscape and irrigation system and setting the public hearing for June 24, 2024.

7. Accept the Donation of GloBug Portable Lighting Systems from Multiquip Prepared by: Doug Dancs, Director of Public Works
Recommendation: Accept the donation of four GloBug Lighting Systems valued at $18,000 from Multiquip.

May 13, 2024 | Page 4

8. Approve an Agreement for Police Body Worn Cameras
Prepared By: Mark Lauderback, Chief of Police
Recommendation:

1. Approve a five-year agreement for $274,687 with Axon Enterprises, Inc. for the purchase, installation and support of body-worn cameras for Police department personnel; and

2. Approve an agreement with Axon Enterprises, Inc. for Sourcewell cooperative agreement pricing.

9. Receive and File Fiscal Year 2024-25 Proposed Budget and Capital Improvement Program
Prepared by: Matt Burton, Director of Finance and Administrative Services Recommendation:

1. Receive and file the FY 2024-25 Proposed Budget and Capital Improvement Program;

2. Schedule City Council consideration for adoption of the FY 2024-25 Budget on June 10, 2024; and

3. Publish a notice stating the public may comment on the Budget at the meeting of June 10, 2024.

ITEMS REMOVED FROM CONSENT CALENDAR

ITEMS FROM CITY COUNCIL MEMBERS
ORAL COMMUNICATIONS (Three minutes per speaker. The City Council may adjust the time allotted per speaker.)
The public may address the City Council on any item within the subject matter jurisdiction of the City Council. Although Council Members may provide brief responses, the City Council may not discuss nor take action on items that are not on the agenda. Please complete a Speaker's Card to address the City Council in-person. Members of the public are encouraged to communicate with the City Council via email at [email protected] or by calling 714-229-6699.

COUNCIL MEMBER REPORTS FROM CITY-AFFILIATED BOARDS AND COMMITTEES

AND REMARKS

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION

CITY MANAGER REMARKS
May 13, 2024 | Page 5

ADJOURNMENT - IN MEMORY OF FORMER CYPRESS MAYOR ANNA PIERCY The next meeting will be an adjourned Regular Meeting, to be held on Tuesday, May 28, 2024, beginning at 5:30 p.m. in the Executive Board Room.

Council Members and the public should promptly exit the Council Chambers and proceed through the Civic Center to the parking lot.

I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing Agenda was posted on the City Hall bulletin board and City website not less than 72 hours prior to the meeting. Dated this 9th day of May, 2024.

________________________________
Alisha Farnell, City Clerk

PUBLIC PARTICIPATION
Members of the public can participate in the City Council meeting in the following ways:

1. Attend In-Person. First-come, first-served seating is available. All attendees must be free of any symptoms associated with contagious illnesses.

2. Attend Virtually via Webinar. Follow this link:
https://attendee.gotowebinar.com/register/8425225990181221216. Advanced registration is recommended.

The public may address the City Council virtually during Oral Communications on Agenda Items and Public Hearings. Virtual participants must click the 'hand raise' button prior to the end of the first in-person speaker to indicate they wish to address the City Council. Upon clicking the 'hand raise' button, please unmute your microphone and wait for the Mayor/City Clerk to call on you. = Hand Raise = Unmute

3. Submit Public Comments Prior to the Meeting. The public may submit comments via email to [email protected]. Comments submitted by 3:00 p.m. on the day of the meeting will be added to the City Council agenda as a Consent Calendar item.

4. Watch the Meeting. The City Council meeting can be viewed on Spectrum Cable Channel 36 or on the City's website at www.cypressca.org/watchlive.

5. Listen to the Meeting. Listen-only teleconferencing is available by calling (415) 930-5321 and entering Access Code 353-950-406. No registration or audio pin is necessary.

INVOCATION POLICY
The City Council does not endorse the content of the invocation and does not endorse the invocational speaker’s particular faith, belief and/or religious denomination. The City Council has an established neutral policy for selecting and scheduling invocational speakers. The City Council’s policy on invocations is available from the City Clerk.

May 13, 2024 | Page 6

AMERICANS WITH DISABILITIES ACT
In compliance with the Americans With Disabilities Act, if you need special assistance to participate in this meeting, you should contact the City Clerk at (714) 229-6685 at least 72 hours prior to the meeting to enable the City to make reasonable arrangements to assure accessibility to this meeting.

May 13, 2024 | Page 7
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 2.

FROM: Alisha Farnell, City Clerk
DATE: 05/13/2024
SUBJECT: Proclaim the Week of May 12-18, 2024 as National Police Week

RECOMMENDATION
Proclaim the week of May 12-18, 2024 as National Police Week.

DISCUSSION
Periodically, the City receives requests to publicly declare, recognize, observe, or promote awareness of a special event. As the City's past practice has established, routine and/or internal proclamation requests are placed on an agenda by the City Clerk for consideration by the City Council. Any new proclamation requests may be added to a future agenda in accordance with City Council policy.

The City Clerk received a routine request from the Police Department requesting the City Council officially proclaim the week of May 12-18, 2024 as National Police Week. A proclamation has been prepared for the Mayor’s signature and is attached for consideration.

BUDGET IMPACT
None.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
Proclamation

NATIONAL POLICE WEEK
MAY 12 - 18, 2024
WHEREAS, the Congress and President of the United States have designated May 15th as Peace Officers’ Memorial Day, and the week in which May 15th falls as National Police Week. National Police Week pays special recognition to those law enforcement officers who have lost their lives in the line of duty for the safety and protection of others; and
WHEREAS, the members of the Cypress Police Department play an essential role in safeguarding the rights and freedoms of all citizens in the City of Cypress; and WHEREAS, it is important that all citizens know and understand the duties, responsibilities, hazards, and sacrifices of their law enforcement peace officers, and that our peace officers recognize their fundamental duty to serve humankind by safeguarding lives and property, by protecting the citizens against violence and disorder, by safeguarding the innocent against deception and the weak against oppression, and by clearly recognizing the badge as a symbol of public faith and trust; and WHEREAS, the men and women of the Cypress Police Department unceasingly provide a vital public service to the community.

NOW, THEREFORE, BE IT RESOLVED, that I, Scott Minikus, Mayor of the City of Cypress, along with my fellow Council Members, do hereby proclaim the week of May 12 - 18, 2024, as “NATIONAL POLICE WEEK,” and encourage everyone to observe National Police Week with appropriate ceremonies and observances in which everyone may join in commemorating law enforcement officers, past and present, who, by their faithful and loyal devotion to their responsibilities, have rendered a dedicated service to their communities and, in so doing, have established for themselves an enviable and enduring reputation for preserving the rights and security of all citizens. __________________________________
Scott Minikus

MAYOR OF THE CITY OF CYPRESS
Dated: April 22, 2024
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 3.

FROM: Alisha Farnell, City Clerk
DATE: 05/13/2024
SUBJECT: Proclaim the Week of May 19-25, 2024 as National Public Works Week

RECOMMENDATION
Proclaim the week of May 19-25, 2024 as National Public Works Week.

DISCUSSION
Periodically the City receives requests to publicly declare, recognize, observe, or promote awareness of a special event. As per guidelines established by the City Council, routine proclamation requests are placed on an agenda for consideration. Any new proclamation requests are forwarded to the City Council and a Council Member may request the proclamation be added to a future agenda in accordance with City Council policy.

The City Clerk received a request from the Public Works Department requesting the City Council officially proclaim the week of May 19-25, 2024 as National Public Works Week. A proclamation has been prepared for the Mayor’s signature and is attached for consideration.

BUDGET IMPACT
None.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
Proclamation

NATIONAL PUBLIC WORKS WEEK
MAY 19- 25, 2024
“ADVANCING QUALITY OF LIFE FOR ALL”
WHEREAS, public works professionals focus on infrastructure, facilities and services that are of vital importance to sustainable and resilient communities and to the public health, high quality of life and well-being of the people of the City of Cypress; and WHEREAS, these infrastructure, facilities and services could not be provided without the dedicated efforts of public works professionals, who are engineers, managers and employees at all levels of government and the private sector, who are responsible for rebuilding, improving and protecting our nation’s transportation, water supply, water treatment and solid waste systems, public buildings, and other structures and facilities essential for our citizens; and
WHEREAS, it is in the public interest for the citizens, civic leaders and children in Cypress to gain knowledge of and to maintain an ongoing interest and understanding of the importance of public works and public works programs in their respective communities; and
WHEREAS, the year 2024 marks the 64th annual National Public Works Week sponsored by the American Public Works Association/Canadian Public Works Association.

NOW, THEREFORE, BE IT PROCLAIMED, that I, SCOTT MINIKUS, Mayor of the City of Cypress, along with my fellow Council Members, do hereby proclaim the week of May 19-25, 2024 as NATIONAL PUBLIC WORKS WEEK in the City of Cypress, and urge all citizens to join with representatives of the American Public Works Association/Canadian Public Works Association and government agencies in activities, events and ceremonies designed to pay tribute to our public works professionals, engineers, managers and employees and to recognize the substantial contributions they make to protecting our national health, safety, and quality of life for all.

Scott Minikus
Mayor of the City of Cypress
Dated: May 13, 2024
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 4.

FROM: Douglas Dancs, Director of Public Works
DATE: 05/13/2024
SUBJECT: Approve Plans and Specifications and Award Contracts for Concrete Rehabilitation, Project 356

RECOMMENDATION

1. Approve Plans and Specifications for Concrete Rehabilitation, Project 356; and

2. Award a contract to CJ Concrete Construction Inc. for $515,440, and authorize a contingency of $62,760; and

3. Approve a Task Order for Construction Inspection Services to AKM Consulting Engineers for $74,384 and authorize a contingency of $7,416.

DISCUSSION
The Seven Year Capital Improvement Program includes an annual project for city-wide concrete rehabilitation. The FY 2023-24 project will replace over 16,000 square feet of concrete sidewalks, 2,500 square feet of driveway approaches, 2,600 linear feet of curb and gutter, and remove up to 74 trees at various locations. The project includes the replacement of sidewalks uplifted by tree roots, driveway approaches that are severely cracked, and curbs and gutters that pond water. The project also helps maintain the City’s compliance with the Americans with Disabilities Act by correcting steep slopes in the pedestrian path of travel.

On April 11, the City received four bid proposals for the project with CJ Concrete Construction Inc., as the low bidder. AKM Consulting Engineers, one of the City’s on-call construction management firms, will inspect the project. A summary of project award information is attached. The project is anticipated to start in June and to be completed by October.

BUDGET IMPACT
The estimated project cost will not exceed $660,000 and sufficient amounts are budgeted for concrete rehabilitation in the City's Capital Project Fund.

LEGAL REVIEW
None required
APPROVED BY: Peter Grant, City Manager
Attachments
Project Award Information
Task Order
Project Award Information Checklist
Description of Project:

Citywide Concrete Rehabilitation- Removal and replacement of sidewalk panels, curb and gutter, driveway approaches, and tree removals.

Contract Working Days: 40 working days
Orange County Register
Publication Date:

March 21, 2024 & March 28, 2024
Notice Inviting Bids Sent to: CIPList.com, The Orange County Register, AGC Plan Room, Inc. Construction Bid Source, PWX Press,
Blackbridge Research & Consulting
Bid Opening Date: April 11, 2024
No. of Bid Packets Purchased: 4
Bidders Base Bid

1. CJ Concrete Construction Inc., Santa Fe Springs, CA $515,440.00

2. Towo Enterprise Inc., Fullerton, CA $557,098.00

3. Nobest Inc., Garden Grove, CA $603,038.00

4. CT&T Concrete Paving Inc. Diamond Bar, CA $860,947.08 Apparent Low Bidder: CJ Concrete Construction Inc., Santa Fe Springs, CA – $515,440.00 Qualified to Perform Work: Yes. Staff confirmed bid was responsive.

Contractor’s License: Registration with DIR:

Valid at Time of Award: Yes Contractor: Yes
Valid at Time of Bid: Yes Sub-Contractor: Yes
Experience:

The apparent low bidder has performed this type of work for multiple government agencies in Southern California.

Construction
Management/Inspection Firm:

AKM Consulting Engineer
On-Call Contract Date: June 27, 2022
Amount of Task Order: $ 74,384

CONTRACTOR TOTAL BASE BID
1 CJ Concrete Construction Inc. $ 515,440.00
2 Towo Enterprise Inc. $ 557,098.00
3 Nobest Inc. $ 603,038.00
4 CT&T Concrete Paving Inc. $ 860,947.08

BID RESULTS
for

CONCRETE REHABILITATION
PROJECT 356
Bid Opening: Thursday, April 11, at 10AM

PRELIMINARY BID RESULTS - FOR INFORMATIONAL PURPOSES ONLY

City Engineer
Subject: Proposal for Construction Management and Inspection Services for the Concrete Rehabilitation Project 356
Dear Mr. Mangkalakiri:

AKM Consulting Engineers is pleased to submit this proposal to provide construction management and inspection services for the above entitled project to the City of Cypress, in accordance with Attachment “A” - Scope of Work and Attachment “B” – Schedule of Compensation. These services will be performed in conformance with the Contract Services Agreement for On-Call Construction Management and Inspection Services.

We appreciate the opportunity to submit our proposal and look forward to being of service to the City of Cypress on this most important project. If you should have any questions or require additional information, please do not hesitate to contact the undersigned.

Very truly yours,
AKM Consulting Engineers
Emin Kayiran, CPII
Vice President/Director of Construction Management Services Attachment “A”, Scope of Work
Attachment “B”, Schedule of Compensation

Water Resources
Infrastructure
ConstructionManagement
AKM Consulting Engineers
553 Wald
Irvine, CA 92618
Telephone: 949.753.7333 Facsimile: 949.753.7320
www.akmce.com
Attachment A
Scope of Services
AKM Consulting Engineers is proposing to provide Construction Management and Inspection Services to the City of Cypress (referred to herein as “City”) with sufficient highly qualified personnel to assist in field control, conformance with contract plans and specifications, accurate contract documentation, material quantity tracking, and that quality facilities are constructed within the desired schedule. The following is our proposed scope of work:

Project Responsibilities
 Implement the established project document control and filing system in a timely and well organized manner.
 Receive all project submittals, file and log the submittals, and distribute to the appropriate project participants for review. Keep submittal reviewers aware of review timeframes and deadlines and transmit responses and comments to the contractor.
 Receive all project requests for information (RFI’s), file and log the RFI’s and distribute to the appropriate project participants for review. Keep RFI reviewers aware of review timeframes and deadlines and transmit responses to the contractor.
 Perform detailed inspections to verify that construction of designed facilities is in accordance with the contract documents.
 Complete a detailed daily inspection report and submit to the client and AKM Project Manager daily.  Capture daily construction photographs to document progress, compliance and construction events. Photographs shall be included in the daily report as well as filed daily.  Coordinate the services of AKM sub-consultants assigned to the project (i.e. geotechnical materials testing) in a timely fashion.
 Conduct well organized preconstruction and progress meetings providing the client with agendas prior to meetings and detailed meeting minutes following meetings.  Keep as-built drawings as construction progresses. Review weekly with the contractor.  Receive contract change order requests from the contractor. Review for merit, discuss with the AKM Project Manager and transmit to the client with recommendations for action based on the project contract documents. Respond to the contractor based on written client direction. Keep detailed accounting records of work performed under force account.  Execute a weekly assessment of project working days and transmit to the contractor.  Receive and review progress schedules including 2-week look-ahead and CPM schedules. Provide comments to the client. Track contractor’s progress against baseline CPM schedule.  Review payment quantities with the contractor on a periodic basis. Provide recommendations for payment to the client.
 Maintain a project corrections list during construction and distribute preliminary and final punch lists to the contractor and client.

Water Resources
Infrastructure
ConstructionManagement
AKM Consulting Engineers
553 Wald
Irvine, CA 92618
Telephone: 949.753.7333 Facsimile: 949.753.7320
www.akmce.com
Attachment B
Schedule of Compensation
The following is our estimate to complete the assignment. All rates are in accordance with the aforementioned on-call agreement.

Construction Management and Inspection Services
for the Concrete Rehabilitation Project 356
40 Working Day Construction Duration
Title Rate/hr Hours Total
Inspector 164 $ 320 52,480 $
Construction Manager 186 $ 64 11,904 $
Materials Testing 10,000 $
Total Fee 74,384 $
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 5.

FROM: Douglas Dancs, Director of Public Works
DATE: 05/13/2024
SUBJECT: Accept the Sewer System Improvements, Project 354

RECOMMENDATION

1. Accept the Sewer System Improvements, Project 354, in the amount of $62,575 and approve the final payment of $3,128.75 to Sancon Technologies, Inc.; and

2. Authorize the City Engineer to file a Notice of Completion with the County Recorder.

DISCUSSION
In November 2023, the City Council awarded a construction contract to Sancon Technologies, Inc. This project rehabilitated approximately 310 feet of sewer pipe and two sewer manhole structures along Via Largo. The work began in February and was completed in March.

Public Works will release the Labor and Materials Bond and the Faithful Performance Bond upon expiration of the required lien period.

BUDGET IMPACT
The original estimated cost of construction and inspection was $105,932 and final project costs total $64,816.25, as summarized in the attached table. Sufficient amounts are included in the Sewer Fund budget for the project.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
Cost Table

PROJECT COST TABLE
Item Description
Original
Amount
Actual
Expenditures Difference
Construction
Construction $ 68,770.00 $ 62,575.00 $ 6,195.00
Construction Contingency 10,300.00 - 10,300.00
Sub-total Construction $ 79,070.00 $ 62,575.00 $ 16,495.00 Construction Management & Inspection
Inspection $ 23,362.00 $ * 21,120.75 2,241.25 $
Inspection Contingency 3,500.00 - 3,500.00
Sub-total Construction Inspection $ 26,862.00 $ 2,241.25 $ 24,620.75 Total Project $ 105,932.00 $ 64,816.25 $ 41,115.75
Sewer System Improvements
Project 354
* Project duration was shorter and required fewer inspection hours than originally anticipated. Actual expenditures are based on actual inspection hours needed on the job site. Original contract amounts are cost estimates/proposals based on the project description, scope of work, and anticipated effort.

CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 6.

FROM: Douglas Dancs, Director of Public Works
DATE: 05/13/2024
SUBJECT: Approve the City Engineer's Report and Adopt a Resolution Declaring the City Council's Intent to Renew Cypress Corporate Center Landscape Maintenance District No. 1 following a June 24, 2024 Public Hearing

RECOMMENDATION

1. Approve the City Engineer's Report for the Cypress Corporate Center Landscape Maintenance District No. 1 for Fiscal Year 2024-25; and

DISCUSSION
The City formed a Maintenance District in 1985 covering all properties bounded by Katella Avenue, Knott Street, Valley View Street, and the Stanton Storm Channel. The Maintenance District provides for maintenance of the landscape berm adjacent to the Channel. The City maintains the berm primarily through a contract, which includes trimming plants four times a year and irrigation repairs.

Nineteen parcels owned by four property owners are assessed annually on a per-acre basis (Attachment E and F of the City Engineer's Report). The assessment funds the maintenance and irrigation of the landscape berm. The annual assessment is a routine process established nearly 40 years ago.

Pursuant to the Landscaping and Lighting Act, the City Engineer prepares an annual report to file with the City Clerk outlining the Maintenance District renewal. The recommended Resolution approves the City Engineer's Report and declares the City Council's intention to renew Cypress Corporate Center Landscape Maintenance District No. 1 for FY 2024-25 and sets the public hearing for June 24, 2024.

BUDGET IMPACT
Renewal includes a maximum assessment of $102,766 for the parcels adjacent to the berm.

Renewal includes a maximum assessment of $102,766 for the parcels adjacent to the berm.

The assessment is distributed based on each parcel's square footage. The assessment reflects a 4.03% CPI increase from FY 2023-24. Estimated FY 2024-25 maintenance costs and indirect support from the City are $124,489, which exceeds the assessment by $21,723.

The Maintenance District No. 1 Fund has sufficient accumulated balances available to absorb costs above the recommended FY 2024-25 assessment.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
City Engineer's Report
Resolution

CITY ENGINEER'S REPORT
for

CYPRESS CORPORATE CENTER LANDSCAPE MAINTENANCE
DISTRICT NO. 1
FISCAL YEAR 2024-25
_____________________________________
Nick Mangkalakiri, P.E.

City Engineer
City of Cypress
May 2024

CITY ENGINEER'S REPORT

MAINTENANCE ASSESSMENT DISTRICT FOR BERM
This document consists of the following documents:

Attachment A............................................................Landscape Maintenance Specifications Specifications for the improvements are filed with the City Engineer and are available for review at the Public Works counter. Although separately bound, the specifications are a part of this report and are included in it by reference.

Attachment B............................................................................ Landscape Plan and Section Plans showing existing and proposed landscape maintenance improvements.

Attachment C .......................................................................................Master Irrigation Plan Plans showing existing and proposed irrigation improvements Attachment D ............................................................................. Maintenance Cost Estimate An estimate of the cost of improvements, including direct and indirect costs.

Attachment E....................................................... Diagram of Proposed Assessment District A diagram showing all the parcels of real property within this assessment district.

Attachment F............................................................Assessment Distribution Cost Estimate An assessment of the estimated cost of the improvements on each benefited parcel of land within the assessment district as shown in Attachment E.

w
z
z
<(
�
0 �
en
(NOTE: Berm section is 17' - 6"
wide from Knott Street
to 1 000' west.)
0 <( )( 0
c:::
w
z
<(
z
w )(
Iz
<(
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r-FOR FUTURE
/ CONNECTION
--FENCE GATE
VALVES

GATE VALVE

TEMPORARY

CONNECTION TO

ADJACENT SITE
X
TORO 316-12-02
TORO 308-12-02
X

MAIN LINE

PRIVATE FENCE
X

STORM CHANNEL
FENCE

MASTER IRRIGATION PLAN
SCALE: NOT TO SCALE
Attachment C
D-1
Attachment D

MAINTENANCE COST ESTIMATE

DESCRIPTION AMOUNT
$ 108,251
$ 16,238
$ 124,489
Maintenance (from 7/1/24-6/30/25)
City’s Indirect Support Costs Total
Maintenance Costs
Assessment * $ 102,766
*4.03% CPI adjustment (All Urban Consumers – March 2023 to March 2024)

Attachment F

ASSESSMENT
NUMBER
NAME DESCRIPTION Acreage %

AMOUNT OF

ASSESSMENT
2023-24
1 Cypress Corporate Center LLC; P.O. Box 240011,
Los Angeles, CA 90024
Par 1, PM 134-4
A.P. #224-271-05

5.378 3.95% $4,056.57
2 Cypress Corporate Center LLC; P.O. Box 240011
Los Angeles, CA 90024
Par 1, PM 207-35
A.P. #224-271-11

1.646 1.21% $1,241.56
3 Cypress Corporate Center LLC; P.O. Box 240011
Los Angeles, CA 90024
Par 2, PM 207-35
A.P. #224-271-07

3.238 2.38% $2,442.39
4A Katella Holder Street LLC; PO Box 847, Carlsbad, CA
92018
Par 1, PM 155-23
A.P. #224-271-23

13.966 10.25% $10,534.42
4B
Katella Holder Street LLC; PO Box 847, Carlsbad, CA
92018
Par 2, PM 155-23
A.P. #224-271-24

8.324 6.11% $6,278.71
5 Duke Realty Limited Partnership - Prologis L.P.; 1800 Wazee Street, Suite 500, Denver CO 80202
Par 1, PM 167-34
A.P. #224-261-04

22.304 16.37% $16,823.69
6 Cypress Corporate Center LLC; P.O. Box 240011
Los Angeles, CA 90024
Par 4, PM 247-21
A.P. #224-261-07

6.301 4.62% $4,752.78
7 Cypress Corporate Center LLC; P.O. Box 240011
Los Angeles, CA 90024
Par 3, PM 247-21
A.P. #224-262-01

15.235 11.18% $11,491.61
8 Warland Investments, Ltd. 1301 Montana Avenue, Suite
A, Santa Monica, CA 90403
Par 1, PM 214-13
A.P. #224-271-21

11.314 8.30% $8,534.04
9 Cypress Corporate Center LLC; P.O. Box 240011
Los Angeles, CA 90024
Par 2, PM 207-35
A.P. #224-271-12

1.843 1.35% $1,390.16
10 Cypress Corporate Center LLC; P.O. Box 240011
Los Angeles, CA 90024
Par 3, PM 207-35
A.P. #224-271-13

1.100 0.81% $829.72
11 Cypress Corporate Center LLC; P.O. Box 240011
Los Angeles, CA 90024
Par 4, PM 207-35
A.P. #224-271-14

1.106 0.81% $834.24
12 Cypress Corporate Center LLC; P.O. Box 240011
Los Angeles, CA 90024
Lot 5, PM 207-35
A.P. #224-271-17

1.380 1.01% $1,040.92
13 Cypress Corporate Center LLC; P.O. Box 240011
Los Angeles, CA 90024
Par 6, PM 207-35
A.P. #224-271-16

0.996 0.73% $751.27
14 Cypress Corporate Center LLC; P.O. Box 240011
Los Angeles, CA 90024
Par 7, PM 207-35
A.P. #224-271-15

1.322 0.97% $997.17
15 Warland Investments, Ltd. 1301 Montana Avenue, Suite A, Santa Monica, CA 90403
Par 2, PM 214-13
A.P. #224-271-22

17.504 12.85% $13,203.09
16 Cypress Corporate Center LLC; P.O. Box 240011
Los Angeles, CA 90024
Par 1, PM 238-16
A.P. #224-261-08

7.177 5.27% $5,413.54
17 Cypress Corporate Center LLC; P.O. Box 240011
Los Angeles, CA 90024
Par 2, PM 247-21
A.P. #224-261-10

9.211 6.76% $6,947.77
18 Cypress Corporate Center LLC; P.O. Box 240011
Los Angeles, CA 90024
Par 2, PM 247-21
A.P. #224-261-11

6.897 5.06% $5,202.34
Total 136.24 100% $102,766.00
Max Assessment of $102,766
Landscape Maintenance District No.1
2024-25 Assessment Distribution Based on
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA,

DECLARING ITS INTENTION TO ORDER THE RENEWAL OF CYPRESS CORPORATE CENTER LANDSCAPE MAINTENANCE DISTRICT NO. 1 FOR FISCAL YEAR 2024-25, PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972,

AND FIXING A TIME AND PLACE FOR HEARING OBJECTIONS THERETO WHEREAS, the City Council has heretofore proposed the renewal of Cypress Corporate Center Landscape Maintenance District No. 1 (the "District") for Fiscal Year 2024- 25 pursuant to the provisions of the Landscaping and Lighting Act of 1972 (Streets and Highways Code, Sections 22500 et seq.) for the purpose of maintaining a landscaped berm constructed in connection with the development of the Cypress Business Park; and WHEREAS, the City Engineer's report entitled "City Engineer's Report-Maintenance Assessment District for Berm," dated May 2024, (the "City Engineer") was ordered, prepared and presented to the City Council pursuant to Streets and Highways Code, Sections 22565 et seq.; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CYPRESS HEREBY DOES FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:

SECTION 1. The City of Cypress does hereby declare its intention to order the renewal of Cypress Corporate Center Landscape Maintenance District No. 1 for Fiscal Year 2023-24, and to collect assessments pursuant to the Landscaping and Lighting Act of 1972.

SECTION 2. The District consists of that certain portion of the City of Cypress bounded on the north by Katella Avenue, on the east by Knott Street, on the south by Stanton Storm Channel, and on the west by Valley View Street.

SECTION 3. The landscaped improvements to be installed and maintained within the boundaries of the District are more particularly described in the City Engineer's Report.

Said improvements have been modified since formation of said District by being extended from Knott Street westerly to 40' east of Valley View Street.

SECTION 4. A full and detailed description of the boundaries of the District and the proposed assessments upon assessable lots and parcels of land within the District are contained in the City Engineer's Report.

SECTION 5. NOTICE IS HEREBY GIVEN that on the 24
th day of June, 2024, at
the hour of 6:00 p.m. in the Council Chamber located at City Hall, 5275 Orange Avenue, in the City of Cypress, California, any and all persons having objections to the work or extent of the District, may appear and show cause why said work should not be done or carried out or why the District should not be renewed in accordance with the Resolution of Intention.

Although the City Council will consider all oral objections at the hearing, in order for an objection to constitute a protest under Streets and Highways Code, Section 22628, such protest must be in writing and must contain a description of the property in which each signer thereof is interested, sufficient to identify the same and must be delivered to the City Clerk of said City prior to the time set for the hearing and no other protests or objections will be considered for this purpose. If the signer of any protest is not shown upon the last equalized assessment roll of Orange County as the owner of the property described in the protests, then such protest must contain or be accompanied by written evidence that such signer is the owner of the property so described.

SECTION 6. The City Clerk shall cause this Resolution of Intention to be published at least ten days prior to the date set for the hearing, at least once in a newspaper of general circulation serving the City of Cypress, California, all as provided for in Government Code, Section 6061.

SECTION 7. The City Clerk is hereby ordered and directed to mail this Resolution of Intention to all property owners, whether resident or nonresident, within the District, at least ten days prior to the date set for the hearing, pursuant to Streets and Highways Code, Section 22627.

PASSED AND ADOPTED by the City Council of the City of Cypress at a regular meeting held on the 13th day of May, 2024.

MAYOR OF THE CITY OF CYPRESS
ATTEST:

CITY CLERK OF THE CITY OF CYPRESS
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
I, ALISHA FARNELL, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the 13
th day of May, 2024 by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

CITY CLERK OF THE CITY OF CYPRESS
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 7.

FROM: Douglas Dancs, Director of Public Works
DATE: 05/13/2024
SUBJECT: Accept the Donation of GloBug Portable Lighting Systems from Multiquip

RECOMMENDATION
Accept the donation of four GloBug Lighting Systems valued at $18,000 from Multiquip.

DISCUSSION
Multiquip Inc. is a Cypress-based manufacturer and supplier of construction equipment and tools. Multiquip has generously offered to donate four GloBug Lighting Systems to the City.

The lighting systems are valued at $4,500 each, and two will be utilized by Public Works and two by the Police department. The GloBug Lighting System is a portable balloon light with a gas-powered generator. It is ideal for use at job sites, special events, traffic incidents and other nighttime field operations.

BUDGET IMPACT
The lighting systems will result in modest savings by eliminating the need to rent lighting for a variety of special events/operations.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
GloBug Information Sheet
10 Footcandle 20 10 5 2.5 1 0.5
Distance (ft.) 20 30 46 64 79 125
LED Cart
Balloon – 800W
GBX8B Model: GBX8B
Engine
Engine K80i
EPA/Tier Tier 4 Final
Horsepower 3.5 HP
Rated Speed-RPM 4,500
Engine Protection Low Oil
Sound Level dB @ 23 ft 63.3 db(A)
Fuel Tank
Fuel Capacity 3 gal.

Running time/HR full load 18 hrs.

Cart Data
Material Construction Steel (Zinc Coating)
Foot Brake Yes
Generator
Wattage KW Continuous 1.6 kW
Voltage / Amp 120V / 13.3A
Regulation ± 5%
Mast Assembly
Mast Height (MAX) 3 Sections - 91"
Construction Aluminum (Anodized)
Air Assist Shock System Yes
Lights - Projection
Lamps LED - 800W
Type Lighting Balloon
Lumens 110,000
Kelvin Rating 5,700
Dimmer Switch Yes
Number of LED Chips 402
Dimensions
L x W x H (deployed) 45.2" x 21.6" x 124"
L x W x H (stowed) 32.2" x 21.6" x 71.6"
Weight DRY (lbs) 174 lb.

Wind Limits 45 MPH
Light Plot
The GBX8B is a compact, self-powered diffused 800W LED
Balloon Bag lighting system. This highly mobile unit is the perfect choice for residential, industrial, and commercial jobsite applications where glare-free lighting is desired.
n 1.6kW Inverter Generator
n Powerful 4-cycle, 3.5HP gas engine (EPA/CARB)
n 3 Gallon fuel tank — 18 HRS run time (full load)
n ECO Mode for fuel conservation and noise abatement
n 120V 13.3A external DUPLEX receptacle
n 800W No-Glare LED Balloon Lamp w/dimmer
n Lamps provide 3-stage dimmer control
n Overall compact design: 32" X 22" footprint
Unit draws 7.2A @ 120V
Grid=25 ft.

CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 8.

FROM: Mark Lauderback, Chief of Police
DATE: 05/13/2024
SUBJECT: Approve an Agreement for Police Body Worn Cameras

RECOMMENDATION

1. Approve a five-year agreement for $274,687 with Axon Enterprises, Inc. for the purchase, installation and support of body-worn cameras for Police department personnel; and

2. Approve an agreement with Axon Enterprises, Inc. for Sourcewell cooperative agreement pricing.

DISCUSSION
The City Council's Strategic Plan includes an objective to outfit Police patrol personnel with body-worn cameras (BWCs). BWCs are common law enforcement tools and an industry best practice. All Orange County law enforcement agencies, except La Palma (in process) and Los Alamitos use BWCs.

BWCs provide high-quality evidence for criminal cases and frequently mitigate citizen complaints. BWCs record Officer interactions with the public and are widely regarded as tools that promote accountability and transparency and enhance public trust. The City has worked closely with the Cypress Police Officers' Association (POA) to develop the BWC program and the POA supports the recommendation.

BWCs provide a factual depiction of police encounters and will assist personnel in preparing reports. The Police department handles an average of 3,500 reports annually and makes more than 1,700 arrests. A number of these arrests are disputed in court, resulting in overtime costs. BWC evidence may reduce court overtime expenditures by disposing of some cases before trial.

The recommended BWC system is the Axon Enterprises’ Body 3 Camera System. Founded in 1993, Axon provides electronic control devices, BWCs, and digital evidence management systems to law enforcement agencies worldwide. The Body 3 Camera System is a state-of-the-art, high-definition recording and data storage system. Axon is the District Attorney's preferred digital evidence system and will allow the department to share evidence with the District Attorney’s office in real-time.

The Axon Body 3 Camera System purchase is recommended through Sourcewell, a cooperative purchasing program that conducts procurement on behalf of governments.

Municipal Code § 21A-10(e) allows the use of cooperative purchasing programs as a more efficient and cost-effective procurement method by receiving volume-type pricing. The City regularly benefits from cooperative government purchasing programs to procure items at competitively bid prices.

The five-year agreement is subscription-based, and includes all software, hardware, and cloud-based storage. The agreement allows for the cameras to work seamlessly with the Mobile Audio Visual Camera System purchased earlier this year.

BUDGET IMPACT
The $274,687 contract cost is funded with restricted Narcotics Asset Seizure monies received from the Department of Justice. The FY Budget includes sufficient amounts for the implementation and subscription costs through June 30, 2024. The annual subscription costs of approximately $54,400 will be incorporated into future Police department budgets within the Narcotics Asset Seizure (Justice) Fund.

LEGAL REVIEW
The City Attorney has reviewed the proposed contract.

APPROVED BY: Peter Grant, City Manager
Attachments
Sourcewell - Axon Piggyback agreement
Master Services and Purchasing Agreement
Axon BWC Quote

NTENT TO PIGGYBACK OFF COOPERATIVE PROCUREMENT
Sourcewell #101223-AXN
This agreement (“the Agreement”) is hereby made this ___ day of _________, 2024, by City of Cypress, a California municipal corporation (“Customer”) and Axon Enterprise, Inc. (“Axon”). Collectively, Customer and Axon are the “Parties.”
WHEREAS, the Customer is desires for Axon provide products and services, as herein described; and WHEREAS, Axon and Sourcewell agreed to utilize Sourcewell Contract #101223-AXN as for the Sourcewell Cooperative Contract (“Sourcewell Contract”) which is incorporated herein by reference; and WHEREAS, Axon has agreed to provide goods and services within the scope of the Sourcewell Contract to the Customer at the same prices in Sourcewell Contract; and WHEREAS, the goods and/or services required by the Customer and that the Customer seeks to obtain from Axon are within the scope of the Sourcewell Contract; and
WHEREAS, it is the purpose of this Agreement to describe the formal rights and obligations of the parties; NOW, THEREFORE, WITNESSETH that, for the consideration herein indicated, and in consideration of the mutual promises and covenants set forth in this Agreement, the Parties Agree as follows:

1. The Parties intend to utilize the Sourcewell Contract for the goods and services detailed in Quote Q-541313 (the “Quote”) attached hereto as Exhibit A.

2. The term of this Agreement shall begin upon the date of last signature and shall continue until all subscriptions hereunder have expired or have been terminated. In the event the term of the subscriptions extends past the termination or expiration of the Sourcewell Contract, the terms and conditions of the Sourcewell Contract shall remain in full force and effect as it applies to the Quote and will continue in effect for such order until the term of that Quote expires or the order is cancelled or terminated in accordance with the terms of this Agreement.

This Agreement, together with the Sourcewell Contract, constitutes the entire agreement between the parties relating to the subject matter of this Agreement. All prior understandings, agreements, correspondence and discussions of the parties are merged into and made a part of this agreement.

This Agreement may be executed by the Parties by facsimile and in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

Each representative identified below declares they have been expressly authorized to execute this Agreement as of the date of signature.

Axon Enterprise, Inc. Customer
Signature: Signature:

Name: Name:

Title: Title:

Date: Date:

Exhibit A – Axon Quote
See next page
Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 19.0
Release Date: 8/18/2023 Page 1 of 19
This Master Services and Purchasing Agreement ("Agreement") is between Axon Enterprise, Inc. ("Axon"), and the agency listed below or, if no agency is listed below, the agency on the Quote attached hereto ("Agency"). This Agreement is effective as of the later of the (a) last signature date on this Agreement or (b) signature date on the Quote ("Effective Date"). Axon and Agency are each a "Party" and collectively "Parties". This Agreement governs Agency’s purchase and use of the Axon Devices and Services detailed in the Quote Appendix ("Quote"). It is the intent of the Parties that this Agreement will govern all subsequent purchases by Agency for the same Axon Devices and Services in the Quote, and all such subsequent quotes accepted by Agency shall be also incorporated into this Agreement by reference as a Quote.

The Parties agree as follows:

1. Definitions.

1.1. "Axon Cloud Services" means Axon’s web services for Axon Evidence, Axon Records, Axon Dispatch, and interactions between Axon Evidence and Axon Devices or Axon client software. Axon Cloud Service excludes third-party applications, hardware warranties, and my.evidence.com.

1.2. "Axon Device" means all hardware provided by Axon under this Agreement. Axon-manufactured Devices are a subset of Axon Devices.

1.3. "Quote" means an offer to sell and is only valid for devices and services on the offer at the specified prices.

Any inconsistent or supplemental terms within Agency’s purchase order in response to a Quote will be void.

Orders are subject to prior credit approval. Changes in the deployment estimated ship date may change charges in the Quote. Shipping dates are estimates only. Axon is not responsible for typographical errors in any Quote by Axon, and Axon reserves the right to cancel any orders resulting from such errors.

1.4. "Services" means all services provided by Axon under this Agreement, including software, Axon Cloud Services, and professional services.

2. Term. This Agreement begins on the Effective Date and continues until all subscriptions hereunder have expired or have been terminated ("Term").

2.1. All subscriptions including Axon Evidence, Axon Fleet, Officer Safety Plans, Technology Assurance Plans, and TASER 7 or TASER 10 plans begin on the date stated in the Quote. Each subscription term ends upon completion of the subscription stated in the Quote ("Subscription Term").

2.2. Subscription Term will be 5 Years. Axon may increase pricing on all line items in the Quote by up to 3% at the beginning of each year of the Renewal Term. New devices and services may require additional terms. Axon will not authorize services until Axon receives a signed Quote or accepts a purchase order, whichever is first.

3. Payment. Axon invoices upon shipment, or on the date specified within the invoicing plan in the Quote. Payment is due net 30 days from the invoice date. Payment obligations are non-cancelable.

4. Taxes. Agency is responsible for sales and other taxes associated with the order unless Agency provides Axon a valid tax exemption certificate.

5. Shipping. Axon may make partial shipments and ship Axon Devices from multiple locations. All shipments are EXW (Incoterms 2020) via common carrier. Title and risk of loss pass to Agency upon Axon’s delivery to the common carrier. Agency is responsible for any shipping charges in the Quote.

6. Returns. All sales are final. Axon does not allow refunds or exchanges, except warranty returns or as provided by state or federal law and as provided in Section 7 below.

7. Warranty.

7.1. Limited Warranty. Axon warrants that Axon-manufactured Devices are free from defects in workmanship and materials for one (1) year from the date of Agency’s receipt, except Signal Sidearm and Axon-manufactured accessories, which Axon warrants for thirty (30) months and ninety (90) days, respectively, from the date of Agency’s receipt. Used conducted energy weapon ("CEW") cartridges are deemed to have operated properly.

Extended warranties run from the expiration of the one- (1-) year hardware warranty through the extended warranty term.

7.2. Disclaimer. All software and Axon Cloud Services are provided "AS IS," without any warranty of any kind, either express or implied, including without limitation the implied warranties of merchantability, fitness for a particular purpose and non-infringement. Axon Devices and Services that are not manufactured, published or performed by Axon ("Third-Party Products") are not covered by Axon’s warranty and are only subject to the warranties of the third-party provider or manufacturer.

7.3. Claims. If Axon receives a valid warranty claim for an Axon-manufactured Device during the warranty term, Axon’s sole responsibility is to repair or replace the Axon-manufactured Device with the same or like Axon- Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 19.0
Release Date: 8/18/2023 Page 2 of 19
manufactured Device, at Axon’s option. A replacement Axon-manufactured Device will be new or like new.

Axon will warrant the replacement Axon-manufactured Device for the longer of (a) the remaining warranty of the original Axon-manufactured Device or (b) ninety (90) days from the date of repair or replacement.

7.3.1. If Agency exchanges an Axon Device or part, the replacement item becomes Agency’s property, and the replaced item becomes Axon’s property. Before delivering an Axon-manufactured Device for service, Agency must upload Axon-manufactured Device data to Axon Evidence or download it and retain a copy. Axon is not responsible for any loss of software, data, or other information contained in storage media or any part of the Axon-manufactured Device sent to Axon for service.

7.4. Spare Axon Devices. At Axon's reasonable discretion, Axon may provide Agency a predetermined number of spare Axon Devices as detailed in the Quote ("Spare Axon Devices"). Spare Axon Devices are intended to replace broken or non-functioning units while Agency submits the broken or non-functioning units, through Axon’s warranty return process. Axon will repair or replace the unit with a replacement Axon Device. Title and risk of loss for all Spare Axon Devices shall pass to Agency in accordance with shipping terms under Section

5. Axon assumes no liability or obligation in the event Agency does not utilize Spare Axon Devices for the intended purpose.

7.5. Limitations. Axon’s warranty excludes damage related to: (a) failure to follow Axon Device use instructions; (b) Axon Devices used with equipment not manufactured or recommended by Axon; (c) abuse, misuse, or intentional damage to Axon Device; (d) force majeure; (e) Axon Devices repaired or modified by persons other than Axon without Axon’s written permission; or (f) Axon Devices with a defaced or removed serial number.

Axon’s warranty will be void if Agency resells Axon Devices.

7.5.1.To the extent permitted by law, the above warranties and remedies are exclusive. Axon disclaims all other warranties, remedies, and conditions, whether oral, written, statutory, or implied. If statutory or implied warranties cannot be lawfully disclaimed, then such warranties are limited to the duration of the warranty described above and by the provisions in this Agreement. Agency confirms and agrees that, in deciding whether to sign this Agreement, it has not relied on any statement or representation by Axon or anyone acting on behalf of Axon related to the subject matter of this Agreement that is not in this Agreement.

7.5.2. Axon’s cumulative liability to any party for any loss or damage resulting from any claim, demand, or action arising out of or relating to any Axon Device or Service will not exceed the purchase price paid to Axon for the Axon Device, or if for Services, the amount paid for such Services over the twelve (12) months preceding the claim. Neither Party will be liable for direct, special, indirect, incidental, punitive or consequential damages, however caused, whether for breach of warranty or contract, negligence, strict liability, tort or any other legal theory.

7.6. Online Support Platforms. Use of Axon's online support platforms (e.g., Axon Academy and MyAxon) is governed by the Axon Online Support Platforms Terms of Use Appendix available at www.axon.com/salesterms-and-conditions.

7.7. Third-Party Software and Services. Use of software or services other than those provided by Axon is governed by the terms, if any, entered into between Agency and the respective third-party provider, including, without limitation, the terms applicable to such software or services located at www.axon.com/sales-termsand-conditions, if any.

7.8. Axon Aid. Upon mutual agreement between Axon and Agency, Axon may provide certain products and services to Agency, as a charitable donation under the Axon Aid program. In such event, Agency expressly waives and releases any and all claims, now known or hereafter known, against Axon and its officers, directors, employees, agents, contractors, affiliates, successors, and assigns (collectively, "Releasees"), including but not limited to, on account of injury, death, property damage, or loss of data, arising out of or attributable to the Axon Aid program whether arising out of the negligence of any Releasees or otherwise. Agency agrees not to make or bring any such claim against any Releasee, and forever release and discharge all Releasees from liability under such claims. Agency expressly allows Axon to publicly announce its participation in Axon Aid and use its name in marketing materials. Axon may terminate the Axon Aid program without cause immediately upon notice to the Agency.

8. Statement of Work. Certain Axon Devices and Services, including Axon Interview Room, Axon Channel Services, and Axon Fleet, may require a Statement of Work that details Axon’s Service deliverables ("SOW"). In the event Axon provides an SOW to Agency, Axon is only responsible for the performance of Services described in the SOW.

Additional services are out of scope. The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in fees or schedule. The SOW is incorporated into this Agreement by reference.

Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 19.0
Release Date: 8/18/2023 Page 3 of 19

9. Axon Device Warnings. See www.axon.com/legal for the most current Axon Device warnings.

10. Design Changes. Axon may make design changes to any Axon Device or Service without notifying Agency or making the same change to Axon Devices and Services previously purchased by Agency.

11. Bundled Offerings. Some offerings in bundled offerings may not be generally available at the time of Agency’s purchase. Axon will not provide a refund, credit, or additional discount beyond what is in the Quote due to a delay of availability or Agency’s election not to utilize any portion of an Axon bundle.

12. Insurance. Axon will maintain General Liability, Workers’ Compensation, and Automobile Liability insurance. Upon request, Axon will supply certificates of insurance.

13. IP Rights. Axon owns and reserves all right, title, and interest in Axon-manufactured Devices and Services and suggestions to Axon, including all related intellectual property rights. Agency will not cause any Axon proprietary rights to be violated.

14. IP Indemnification. Axon will indemnify Agency against all claims, losses, and reasonable expenses from any thirdparty claim alleging that the use of Axon-manufactured Devices or Services infringes or misappropriates the thirdparty’s intellectual property rights. Agency must promptly provide Axon with written notice of such claim, tender to Axon the defense or settlement of such claim at Axon’s expense and cooperate fully with Axon in the defense or settlement of such claim. Axon’s IP indemnification obligations do not apply to claims based on (a) modification of Axon-manufactured Devices or Services by Agency or a third-party not approved by Axon; (b) use of Axonmanufactured Devices and Services in combination with hardware or services not approved by Axon; (c) use of Axon Devices and Services other than as permitted in this Agreement; or (d) use of Axon software that is not the most current release provided by Axon.

15. Agency Responsibilities. Agency is responsible for (a) Agency’s use of Axon Devices; (b) breach of this Agreement or violation of applicable law by Agency or an Agency end user; (c) disputes between Agency and a third-party over Agency’s use of Axon Devices; (d) ensuring Axon Devices are destroyed and disposed of securely and sustainably at Agency’s cost; and (e) any regulatory violations or fines, as a result of improper destruction or disposal of Axon Devices.

16. Termination.

16.1. For Breach. A Party may terminate this Agreement for cause if it provides thirty (30) days written notice of the breach to the other Party, and the breach remains uncured at the end of thirty (30) days. If Agency terminates this Agreement due to Axon’s uncured breach, Axon will refund prepaid amounts on a prorated basis based on the effective date of termination.

16.2. By Agency. If sufficient funds are not appropriated or otherwise legally available to pay the fees, Agency may terminate this Agreement. Agency will deliver notice of termination under this section as soon as reasonably practicable.

16.3. Effect of Termination. Upon termination of this Agreement, Agency rights immediately terminate. Agency remains responsible for all fees incurred before the effective date of termination. If Agency purchases Axon Devices for less than the manufacturer’s suggested retail price ("MSRP") and this Agreement terminates before the end of the Term, Axon will invoice Agency the difference between the MSRP for Axon Devices received, including any Spare Axon Devices, and amounts paid towards those Axon Devices. Only if terminating for nonappropriation, Agency may return Axon Devices to Axon within thirty (30) days of termination. MSRP is the standalone price of the individual Axon Device at the time of sale. For bundled Axon Devices, MSRP is the standalone price of all individual components.

17. Confidentiality. "Confidential Information" means nonpublic information designated as confidential or, given the nature of the information or circumstances surrounding disclosure, should reasonably be understood to be confidential. Each Party will take reasonable measures to avoid disclosure, dissemination, or unauthorized use of the other Party’s Confidential Information. Unless required by law, neither Party will disclose the other Party’s Confidential Information during the Term and for five (5) years thereafter. To the extent permissible by law, Axon pricing is Confidential Information and competition sensitive. If Agency receives a public records request to disclose Axon Confidential Information, to the extent allowed by law, Agency will provide notice to Axon before disclosure. Axon may publicly announce information related to this Agreement.

18. General.

18.1. Force Majeure. Neither Party will be liable for any delay or failure to perform due to a cause beyond a Party’s reasonable control.

18.2. Independent Contractors. The Parties are independent contractors. Neither Party has the authority to bind the other. This Agreement does not create a partnership, franchise, joint venture, agency, fiduciary, or Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 19.0
Release Date: 8/18/2023 Page 4 of 19
employment relationship between the Parties.

18.3. Third-Party Beneficiaries. There are no third-party beneficiaries under this Agreement.

18.4. Non-Discrimination. Neither Party nor its employees will discriminate against any person based on race; religion; creed; color; sex; gender identity and expression; pregnancy; childbirth; breastfeeding; medical conditions related to pregnancy, childbirth, or breastfeeding; sexual orientation; marital status; age; national origin; ancestry; genetic information; disability; veteran status; or any class protected by local, state, or federal law.

18.5. Export Compliance. Each Party will comply with all import and export control laws and regulations.

18.6. Assignment. Neither Party may assign this Agreement without the other Party’s prior written consent. Axon may assign this Agreement, its rights, or obligations without consent: (a) to an affiliate or subsidiary; or (b) for purposes of financing, merger, acquisition, corporate reorganization, or sale of all or substantially all its assets.

This Agreement is binding upon the Parties respective successors and assigns.

18.7. Waiver. No waiver or delay by either Party in exercising any right under this Agreement constitutes a waiver of that right.

18.8. Severability. If a court of competent jurisdiction holds any portion of this Agreement invalid or unenforceable, the remaining portions of this Agreement will remain in effect.

18.9. Survival. The following sections will survive termination: Payment, Warranty, Axon Device Warnings, Indemnification, IP Rights, and Agency Responsibilities.

18.10.Governing Law. The laws of the country, state, province, or municipality where Agency is physically located, without reference to conflict of law rules, govern this Agreement and any dispute arising from it. The United Nations Convention for the International Sale of Goods does not apply to this Agreement.

18.11.Notices. All notices must be in English. Notices posted on Agency’s Axon Evidence site are effective upon posting. Notices by email are effective on the sent date of the email. Notices by personal delivery are effective immediately. Notices to Agency shall be provided to the address on file with Axon. Notices to Axon shall be provided to Axon Enterprise, Inc., Attn: Legal, 17800 North 85th Street, Scottsdale, Arizona 85255 with a copy to [email protected].

18.12 Entire Agreement. This Agreement, including the Appendices and any SOW(s), represents the entire agreement between the Parties. This Agreement supersedes all prior agreements or understandings, whether written or verbal, regarding the subject matter of this Agreement. This Agreement may only be modified or amended in a writing signed by the Parties.

Each Party, by and through its respective representative authorized to execute this Agreement, has duly executed and delivered this Agreement as of the date of signature.

AXON: AGENCY:

Axon Enterprise, Inc. Cypress Police Department (CA)
Signature: Signature:

Name: Name:

Title: Title:

Date: Date:

1. Definitions.
a. "Agency Content" is data uploaded into, ingested by, or created in Axon Cloud Services within Agency’s tenant, including media or multimedia uploaded into Axon Cloud Services by Agency. Agency Content includes Evidence but excludes Non-Content Data. b. "Evidence" is media or multimedia uploaded into Axon Evidence as 'evidence' by an Agency. Evidence is a subset of Agency Content.
c. "Non-Content Data" is data, configuration, and usage information about Agency’s Axon Cloud Services tenant, Axon Devices and client software, and users that is transmitted or generated when using Axon Devices. Non-Content Data includes data about users captured during account management and customer support activities. Non-Content Data does not include Agency Content. d. "Personal Data" means any information relating to an identified or identifiable natural person. An identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person.

2. Access. Upon Axon granting Agency a subscription to Axon Cloud Services, Agency may access and use Axon Cloud Services to store and manage Agency Content. Agency may not exceed more end users than the Quote specifies. Axon Air requires an Axon Evidence subscription for each drone operator. For Axon Evidence Lite, Agency may access and use Axon Evidence only to store and manage TASER CEW and TASER CAM data ("TASER Data"). Agency may not upload non-TASER Data to Axon Evidence Lite.

3. Agency Owns Agency Content. Agency controls and owns all right, title, and interest in Agency Content. Except as outlined herein, Axon obtains no interest in Agency Content, and Agency Content is not Axon’s business records. Agency is solely responsible for uploading, sharing, managing, and deleting Agency Content. Axon will only have access to Agency Content for the limited purposes set forth herein. Agency agrees to allow Axon access to Agency Content to (a) perform troubleshooting, maintenance, or diagnostic screenings; and (b) enforce this Agreement or policies governing use of the Axon products.

4. Security. Axon will implement commercially reasonable and appropriate measures to secure Agency Content against accidental or unlawful loss, access or disclosure. Axon will maintain a comprehensive information security program to protect Axon Cloud Services and Agency Content including logical, physical access, vulnerability, risk, and configuration management; incident monitoring and response; encryption of uploaded digital evidence; security education; and data protection. Axon agrees to the Federal Bureau of Investigation Criminal Justice Information Services Security Addendum.

5. Agency Responsibilities. Agency is responsible for (a) ensuring Agency owns Agency Content; (b) ensuring no Agency Content or Agency end user’s use of Agency Content or Axon Cloud Services violates this Agreement or applicable laws; and (c) maintaining necessary computer equipment and Internet connections for use of Axon Cloud Services. If Agency becomes aware of any violation of this Agreement by an end user, Agency will immediately terminate that end user’s access to Axon Cloud Services. a. Agency will also maintain the security of end usernames and passwords and security and access by end users to Agency Content. Agency is responsible for ensuring the configuration and utilization of Axon Cloud Services meet applicable Agency regulation and standards. Agency may not sell, transfer, or sublicense access to any other entity or person. Agency shall contact Axon immediately if an unauthorized party may be using Agency’s account or Agency Content, or if account information is lost or stolen.
b. To the extent Agency uses the Axon Cloud Services to interact with YouTube®, such use may be governed by the YouTube Terms of Service, available at
https://www.youtube.com/static?template=terms.

6. Privacy. Agency’s use of Axon Cloud Services is subject to the Axon Cloud Services Privacy Policy, a current version of which is available at https://www.axon.com/legal/cloud-services-privacy-policy. Agency agrees to allow Axon access to Non-Content Data from Agency to (a) perform troubleshooting, maintenance, or diagnostic Master Services and Purchasing Agreement for Agency
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screenings; (b) provide, develop, improve, and support current and future Axon products and related services; and (c) enforce this Agreement or policies governing the use of Axon products.

7. Axon Body 3 Wi-Fi Positioning. Axon Body 3 cameras offer a feature to enhance location services where GPS/GNSS signals may not be available, for instance, within buildings or underground. Agency administrators can manage their choice to use this service within the administrative features of Axon Cloud Services. If Agency chooses to use this service, Axon must also enable the usage of the feature for Agency’s Axon Cloud Services tenant. Agency will not see this option with Axon Cloud Services unless Axon has enabled Wi-Fi Positioning for Agency’s Axon Cloud Services tenant. When Wi-Fi Positioning is enabled by both Axon and Agency, NonContent and Personal Data will be sent to Skyhook Holdings, Inc. ("Skyhook") to facilitate the Wi-Fi Positioning functionality. Data controlled by Skyhook is outside the scope of the Axon Cloud Services Privacy Policy and is subject to the Skyhook Services Privacy Policy.

8. Storage. For Axon Unlimited Device Storage subscriptions, Agency may store unlimited data in Agency's Axon Evidence account only if data originates from Axon Capture or the applicable Axon Device. Axon may charge Agency additional fees for exceeding purchased storage amounts. Axon may place Agency Content that Agency has not viewed or accessed for six (6) months into archival storage. Agency Content in archival storage will not have immediate availability and may take up to twenty-four (24) hours to access.

For Third-Party Unlimited Storage the following restrictions apply: (i) it may only be used in conjunction with a valid Axon’s Evidence.com user license; (ii) is limited to data of the law enforcement agency that purchased the Third-Party Unlimited Storage and the Axon’s Evidence.com end user or Agency is prohibited from storing data for other law enforcement agencies; and (iii) Agency may only upload and store data that is directly related to:
(1) the investigation of, or the prosecution of a crime; (2) common law enforcement activities; or (3) any Agency Content created by Axon Devices or Evidence.com.

9. Location of Storage. Axon may transfer Agency Content to third-party subcontractors for storage. Axon will determine the locations of data centers for storage of Agency Content. For United States agencies, Axon will ensure all Agency Content stored in Axon Cloud Services remains within the United States. Ownership of Agency Content remains with Agency.

10. Suspension. Axon may temporarily suspend Agency’s or any end user’s right to access or use any portion or all of Axon Cloud Services immediately upon notice, if Agency or end user’s use of or registration for Axon Cloud Services may (a) pose a security risk to Axon Cloud Services or any third-party; (b) adversely impact Axon Cloud Services, the systems, or content of any other customer; (c) subject Axon, Axon’s affiliates, or any third-party to liability; or (d) be fraudulent. Agency remains responsible for all fees incurred through suspension. Axon will not delete Agency Content because of suspension, except as specified in this Agreement.

11. Axon Cloud Services Warranty. Axon disclaims any warranties or responsibility for data corruption or errors before Agency uploads data to Axon Cloud Services.

12. Axon Records. Axon Records is the software-as-a-service product that is generally available at the time Agency purchases an OSP 7 or OSP 10 bundle. During Agency’s Axon Records Subscription Term, if any, Agency will be entitled to receive Axon’s Update and Upgrade releases on an if-and-when available basis. a. The Axon Records Subscription Term will end upon the completion of the Axon Records Subscription as documented in the Quote, or if purchased as part of an OSP 7 or OSP 10 bundle, upon completion of the OSP 7 or OSP 10 Term ("Axon Records Subscription") b. An "Update" is a generally available release of Axon Records that Axon makes available from time to time. An "Upgrade" includes (i) new versions of Axon Records that enhance features and functionality, as solely determined by Axon; and/or (ii) new versions of Axon Records that provide additional features or perform additional functions. Upgrades exclude new products that Axon introduces and markets as distinct products or applications.
c. New or additional Axon products and applications, as well as any Axon professional services needed to configure Axon Records, are not included. If Agency purchases Axon Records as part of a bundled offering, the Axon Record subscription begins on the later of the (1) start date of that bundled offering, or (2) date Axon provisions Axon Records to Agency.
d. Users of Axon Records at the Agency may upload files to entities (incidents, reports, cases, etc) in Axon Records with no limit to the number of files and amount of storage. Notwithstanding the foregoing, Axon Master Services and Purchasing Agreement for Agency
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may limit usage should the Agency exceed an average rate of one-hundred (100) GB per user per year of uploaded files. Axon will not bill for overages.

13. Axon Cloud Services Restrictions. Agency and Agency end users (including employees, contractors, agents, officers, volunteers, and directors), may not, or may not attempt to:
a. copy, modify, tamper with, repair, or create derivative works of any part of Axon Cloud Services; b. reverse engineer, disassemble, or decompile Axon Cloud Services or apply any process to derive any source code included in Axon Cloud Services, or allow others to do the same; c. access or use Axon Cloud Services with the intent to gain unauthorized access, avoid incurring fees or exceeding usage limits or quotas;
d. use trade secret information contained in Axon Cloud Services, except as expressly permitted in this Agreement;
e. access Axon Cloud Services to build a competitive device or service or copy any features, functions, or graphics of Axon Cloud Services;
f. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon’s or Axon’s licensors on or within Axon Cloud Services; or g. use Axon Cloud Services to store or transmit infringing, libelous, or other unlawful or tortious material; material in violation of third-party privacy rights; or malicious code.

14. After Termination. Axon will not delete Agency Content for ninety (90) days following termination. There will be no functionality of Axon Cloud Services during these ninety (90) days other than the ability to retrieve Agency Content. Agency will not incur additional fees if Agency downloads Agency Content from Axon Cloud Services during this time. Axon has no obligation to maintain or provide Agency Content after these ninety (90) days and will thereafter, unless legally prohibited, delete all Agency Content. Upon request, Axon will provide written proof that Axon successfully deleted and fully removed all Agency Content from Axon Cloud Services.

15. Post-Termination Assistance. Axon will provide Agency with the same post-termination data retrieval assistance that Axon generally makes available to all customers. Requests for Axon to provide additional assistance in downloading or transferring Agency Content, including requests for Axon’s data egress service, will result in additional fees and Axon will not warrant or guarantee data integrity or readability in the external system.

16. U.S. Government Rights. If Agency is a U.S. Federal department or using Axon Cloud Services on behalf of a U.S. Federal department, Axon Cloud Services is provided as a "commercial item," "commercial computer software," "commercial computer software documentation," and "technical data", as defined in the Federal Acquisition Regulation and Defense Federal Acquisition Regulation Supplement. If Agency is using Axon Cloud Services on behalf of the U.S. Government and these terms fail to meet the U.S. Government’s needs or are inconsistent in any respect with federal law, Agency will immediately discontinue use of Axon Cloud Services.

17. Survival. Upon any termination of this Agreement, the following sections in this Appendix will survive: Agency Owns Agency Content, Privacy, Storage, Axon Cloud Services Warranty, and Axon Cloud Services Restrictions.

1. Axon Customer Experience Improvement Program (ACEIP). The ACEIP is designed to accelerate Axon’s development of technology, such as building and supporting automated features, to ultimately increase safety within communities and drive efficiency in public safety. To this end, subject to the limitations on Axon as described below, Axon, where allowed by law, may make limited use of Agency Content from all of its customers to provide, develop, improve, and support current and future Axon products (collectively, "ACEIP Purposes"). However, at all times, Axon will comply with its obligations pursuant to the Axon Cloud Services Terms of Use Appendix to maintain a comprehensive data security program (including compliance with the CJIS Security Policy for Criminal Justice Information), privacy program, and data governance policy, including high industry standards of de-identifying Personal Data, to enforce its security and privacy obligations for the ACEIP. ACEIP has 2 tiers of participation, Tier 1 and Tier 2. By default, Agency will be a participant in ACEIP Tier 1. If Agency does not want to participate in ACEIP Tier 1, Agency can revoke its consent at any time. If Agency wants to participate in Tier 2, as detailed below, Agency can check the ACEIP Tier 2 box below. If Agency does not want to participate in ACEIP Tier 2, Agency should leave box unchecked. At any time, Agency may revoke its consent to ACEIP Tier 1, Tier 2, or both Tiers.

2. ACEIP Tier 1.

2.1. When Axon uses Agency Content for the ACEIP Purposes, Axon will extract from Agency Content and may store separately copies of certain segments or elements of the Agency Content (collectively, "ACEIP Content").

When extracting ACEIP Content, Axon will use commercially reasonable efforts to aggregate, transform or deidentify Agency Content so that the extracted ACEIP Content is no longer reasonably capable of being associated with, or could reasonably be linked directly or indirectly to a particular individual ("Privacy Preserving Technique(s)"). For illustrative purposes, some examples are described in footnote 11 . For clarity,
ACEIP Content will still be linked indirectly, with an attribution, to the Agency from which it was extracted. This attribution will be stored separately from the data itself, but is necessary for and will be solely used to enable Axon to identify and delete all ACEIP Content upon Agency request. Once de-identified, ACEIP Content may then be further modified, analyzed, and used to create derivative works. At any time, Agency may revoke the consent granted herein to Axon to access and use Agency Content for ACEIP Purposes. Within 30 days of receiving the Agency’s request, Axon will no longer access or use Agency Content for ACEIP Purposes and will delete any and all ACEIP Content. Axon will also delete any derivative works which may reasonably be capable of being associated with, or could reasonably be linked directly or indirectly to Agency. In addition, if Axon uses Agency Content for the ACEIP Purposes, upon request, Axon will make available to Agency a list of the specific type of Agency Content being used to generate ACEIP Content, the purpose of such use, and the retention, privacy preserving extraction technique, and relevant data protection practices applicable to the Agency Content or ACEIP Content ("Use Case"). From time to time, Axon may develop and deploy new Use Cases. At least 30 days prior to authorizing the deployment of any new Use Case, Axon will provide Agency notice (by updating the list of Use Case at https://www.axon.com/aceip and providing Agency with a mechanism to obtain notice of that update or another commercially reasonable method to Agency designated contact) ("New Use Case").

2.2. Expiration of ACEIP Tier 1. Agency consent granted herein will expire upon termination of the Agreement. In accordance with section 1.1.1, within 30 days of receiving the Agency’s request, Axon will no longer access or use Agency Content for ACEIP Purposes and will delete ACEIP Content. Axon will also delete any derivative works which may reasonably be capable of being associated with, or could reasonably be linked directly or indirectly to, Agency.

3. ACEIP Tier 2. In addition to ACEIP Tier 1, if Agency wants to help further improve Axon’s services, Agency may choose to participate in Tier 2 of the ACEIP. ACEIP Tier 2 grants Axon certain additional rights to use Agency Content, in addition to those set forth in Tier 1 above, without the guaranteed deployment of a Privacy Preserving Technique

1 For example; (a) when extracting specific text to improve automated transcription capabilities, text that could be used to directly identify a particular individual would not be extracted, and extracted text would be disassociated from identifying metadata of any speakers, and the extracted text would be split into individual words and aggregated with other data sources (including publicly available data) to remove any reasonable ability to link any specific text directly or indirectly back to a particular individual; (b) when extracting license plate data to improve Automated License Plate Recognition (ALPR) capabilities, individual license plate characters would be extracted and disassociated from each other so a complete plate could not be reconstituted, and all association to other elements of the source video, such as the vehicle, location, time, and the surrounding environment would also be removed; (c) when extracting audio of potential acoustic events (such as glass breaking or gun shots), very short segments (<1 second) of audio that only contains the likely acoustic events would be extracted and all human utterances would be removed.

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to enable product development, improvement, and support that cannot be accomplished with aggregated, transformed, or de-identified data.
☐ Check this box if Agency wants to help further improve Axon’s services by participating in ACEIP Tier 2 in addition to Tier 1. Axon will not enroll Agency into ACEIP Tier 2 until Axon and Agency agree to terms in writing providing for such participation in ACEIP Tier 2.

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Professional Services Appendix
If any of the Professional Services specified below are included on the Quote, this Appendix applies.

1. Utilization of Services. Agency must use professional services as outlined in the Quote and this Appendix within six (6) months of the Effective Date.

2. Axon Full Service (Axon Full Service). Axon Full Service includes advance remote project planning and configuration support and up to four (4) consecutive days of on-site service and a professional services manager to work with Agency to assess Agency’s deployment and determine which on-site services are appropriate. If Agency requires more than four (4) consecutive on-site days, Agency must purchase additional days. Axon Full Service options include:

System set up and configuration
• Instructor-led setup of Axon View on smartphones (if applicable) • Configure categories and custom roles based on Agency need • Register cameras to Agency domain
• Troubleshoot IT issues with Axon Evidence and Axon Dock ("Dock") access • One on-site session included
Dock configuration
• Work with Agency to decide the ideal location of Docks and set configurations on Dock • Authenticate Dock with Axon Evidence using admin credentials from Agency • On-site assistance, not to include physical mounting of docks Best practice implementation planning session
• Provide considerations for the establishment of video policy and system operations best practices based on Axon’s observations with other agencies
• Discuss the importance of entering metadata in the field for organization purposes and other best practices for digital data management
• Provide referrals of other agencies using the Axon camera devices and Axon Evidence • Recommend rollout plan based on review of shift schedules System Admin and troubleshooting training sessions
Step-by-step explanation and assistance for Agency’s configuration of security, roles & permissions, categories & retention, and other specific settings for Axon Evidence Axon instructor training (Train the Trainer)
Training for Agency’s in-house instructors who can support Agency’s Axon camera and Axon Evidence training needs after Axon has fulfilled its contractual on-site obligations Evidence sharing training
Tailored workflow instruction for Investigative Units on sharing Cases and Evidence with local prosecuting agencies
End user go-live training and support sessions
• Assistance with device set up and configuration
• Training on device use, Axon Evidence, and Evidence Sync Implementation document packet
Axon Evidence administrator guides, camera implementation guides, network setup guide, sample policies, and categories & roles guide
Post go-live review

3. Body-Worn Camera Starter Service (Axon Starter). Axon Starter includes advance remote project planning and configuration support and one (1) day of on-site Services and a professional services manager to work closely with Agency to assess Agency’s deployment and determine which Services are appropriate. If Agency requires more than one (1) day of on-site Services, Agency must purchase additional on-site Services. The Axon Starter options include:

System set up and configuration (Remote Support)
• Instructor-led setup of Axon View on smartphones (if applicable) • Configure categories & custom roles based on Agency need • Troubleshoot IT issues with Axon Evidence and Dock access Master Services and Purchasing Agreement for Agency
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Dock configuration
• Work with Agency to decide the ideal location of Dock setup and set configurations on Dock • Authenticate Dock with Axon Evidence using "Administrator" credentials from Agency • Does not include physical mounting of docks
Axon instructor training (Train the Trainer)
Training for Agency’s in-house instructors who can support Agency’s Axon camera and Axon Evidence training needs after Axon’s has fulfilled its contracted on-site obligations End user go-live training and support sessions
• Assistance with device set up and configuration
• Training on device use, Axon Evidence, and Evidence Sync Implementation document packet
Axon Evidence administrator guides, camera implementation guides, network setup guide, sample policies, and categories & roles guide

4. Body-Worn Camera Virtual 1-Day Service (Axon Virtual). Axon Virtual includes all items in the BWC Starter Service Package, except one (1) day of on-site services.

5. CEW Services Packages. CEW Services Packages are detailed below:

System set up and configuration
• Configure Axon Evidence categories & custom roles based on Agency need. • Troubleshoot IT issues with Axon Evidence.
• Register users and assign roles in Axon Evidence.
• For the CEW Full Service Package: On-site assistance included • For the CEW Starter Package: Virtual assistance included Dedicated Project Manager
Assignment of specific Axon representative for all aspects of planning the rollout (Project Manager). Ideally, Project Manager will be assigned to Agency 4–6 weeks before rollout Best practice implementation planning session to include:
• Provide considerations for the establishment of CEW policy and system operations best practices based on Axon’s observations with other agencies
• Discuss the importance of entering metadata and best practices for digital data management • Provide referrals to other agencies using TASER CEWs and Axon Evidence • For the CEW Full Service Package: On-site assistance included • For the CEW Starter Package: Virtual assistance included System Admin and troubleshooting training sessions
On-site sessions providing a step-by-step explanation and assistance for Agency’s configuration of security, roles & permissions, categories & retention, and other specific settings for Axon Evidence Axon Evidence Instructor training
• Provide training on the Axon Evidence to educate instructors who can support Agency’s subsequent Axon Evidence training needs.
• For the CEW Full Service Package: Training for up to 3 individuals at Agency • For the CEW Starter Package: Training for up to 1 individual at Agency TASER CEW inspection and device assignment
Axon’s on-site professional services team will perform functions check on all new TASER CEW Smart weapons and assign them to a user on Axon Evidence.

Post go-live review
For the CEW Full Service Package: On-site assistance included.

For the CEW Starter Package: Virtual assistance included.

6. Smart Weapon Transition Service. The Smart Weapon Transition Service includes:

Archival of CEW Firing Logs
Axon’s on-site professional services team will upload CEW firing logs to Axon Evidence from all TASER CEW Smart Weapons that Agency is replacing with newer Smart Weapon models.

Axon will provide Agency with a Certificate of Destruction *Note: CEW Full Service packages for TASER 7 or TASER 10 include Smart Weapon Transition Service instead of 1-Day Device Specific Instructor Course.

7. VR Services Package. VR Service includes advance remote project planning and configuration support and one (1) day of on-site service and a professional services manager to work with Agency to assess Agency's deployment and determine which Services are appropriate. The VR Service training options include:

System set up and configuration (Remote Support)
• Instructor-led setup of Axon VR headset content
• Configure agency settings based on Agency need
• Troubleshoot IT issues with Axon VR headset
Axon instructor training (Train the Trainer)
Training for up to five (5) Agency's in-house instructors who can support Agency's Axon VR CET and SIM training needs after Axon’s has fulfilled its contracted on-site obligations Classroom and practical training sessions
Step-by-step explanation and assistance for Agency's configuration of Axon VR CET and SIM functionality, basic operation, and best practices

8. Axon Air, On-Site Training. Axon Air, On-Site training includes advance remote project planning and configuration support and one (1) day of on-site Services and a professional services manager to work closely with Agency to assess Agency's deployment and determine which Services are appropriate. If Agency's requires more than one (1) day of on-site Services, Agency must purchase additional on-site Services. The Axon Air, On-Site training options include:

System set up and configuration (Remote Support)
• Instructor-led setup of Axon Air App (ASDS)
• Configure agency settings based on Agency need
• Configure drone controller
• Troubleshoot IT issues with Axon Evidence
Axon instructor training (Train the Trainer)
Training for Agency's in-house instructors who can support Agency's Axon Air and Axon Evidence training needs after Axon’s has fulfilled its contracted on-site obligations Classroom and practical training sessions
Step-by-step explanation and assistance for Agency's configuration of Axon Respond+ livestreaming functionality, basic operation, and best practices

9. Axon Air, Virtual Training. Axon Air, Virtual training includes all items in the Axon Air, On-Site Training Package, except the practical training session, with the Axon Instructor training for up to four hours virtually.

10. Signal Sidearm Installation Service.
a. Purchases of 50 SSA units or more: Axon will provide one (1) day of on-site service and one professional services manager and will provide train the trainer instruction, with direct assistance on the first of each unique holster/mounting type. Agency is responsible for providing a suitable work/training area.
b. Purchases of less than 50 SSA units: Axon will provide a 1-hour virtual instruction session on the basics of installation and device calibration.

11. Out of Scope Services. Axon is only responsible to perform the professional services described in the Quote and this Appendix. Any additional professional services are out of scope. The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in the charges or schedule.

12. Delivery of Services. Axon personnel will work Monday through Friday, 8:30 a.m. to 5:30 p.m., except holidays.

Axon will perform all on-site tasks over a consecutive timeframe. Axon will not charge Agency travel time by Axon personnel to Agency premises as work hours.

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13. Access Computer Systems to Perform Services. Agency authorizes Axon to access relevant Agency computers and networks, solely for performing the Services. Axon will work to identify as soon as reasonably practicable resources and information Axon expects to use and will provide an initial itemized list to Agency. Agency is responsible for and assumes the risk of any problems, delays, losses, claims, or expenses resulting from the content, accuracy, completeness, and consistency of all data, materials, and information supplied by Agency.

14. Site Preparation. Axon will provide a hardcopy or digital copy of current user documentation for the Axon Devices ("User Documentation"). User Documentation will include all required environmental specifications for the professional services and Axon Devices to operate per the Axon Device User Documentation. Before installation of Axon Devices (whether performed by Agency or Axon), Agency must prepare the location(s) where Axon Devices are to be installed ("Installation Site") per the environmental specifications in the Axon Device User Documentation.

Following installation, Agency must maintain the Installation Site per the environmental specifications. If Axon modifies Axon Device User Documentation for any Axon Devices under this Agreement, Axon will provide the update to Agency when Axon generally releases it

15. Acceptance. When Axon completes professional services, Axon will present an acceptance form ("Acceptance Form") to Agency. Agency will sign the Acceptance Form acknowledging completion. If Agency reasonably believes Axon did not complete the professional services in substantial conformance with this Agreement, Agency must notify Axon in writing of the specific reasons for rejection within seven (7) calendar days from delivery of the Acceptance Form. Axon will address the issues and re-present the Acceptance Form for signature. If Axon does not receive the signed Acceptance Form or written notification of reasons for rejection within seven (7) calendar days of delivery of the Acceptance Form, Axon will deem Agency to have accepted the professional services.

16. Agency Network. For work performed by Axon transiting or making use of Agency’s network, Agency is solely responsible for maintenance and functionality of the network. In no event will Axon be liable for loss, damage, or corruption of Agency’s network from any cause.

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Technology Assurance Plan Appendix
If Technology Assurance Plan ("TAP") or a bundle including TAP is on the Quote, this appendix applies.

1. TAP Warranty. The TAP warranty is an extended warranty that starts at the end of the one- (1-) year hardware limited warranty.

2. Officer Safety Plan. If Agency purchases an Officer Safety Plan ("OSP"), Agency will receive the deliverables detailed in the Quote. Agency must accept delivery of the TASER CEW and accessories as soon as available from Axon.

3. OSP 7 or OSP 10 Term. OSP 7 or OSP 10 begins on the date specified in the Quote ("OSP Term").

4. TAP BWC Upgrade. If Agency has no outstanding payment obligations and purchased TAP, Axon will provide Agency a new Axon body-worn camera ("BWC Upgrade") as scheduled in the Quote. If Agency purchased TAP, Axon will provide a BWC Upgrade that is the same or like Axon Device, at Axon’s option. Axon makes no guarantee the BWC Upgrade will utilize the same accessories or Axon Dock.

5. TAP Dock Upgrade. If Agency has no outstanding payment obligations and purchased TAP, Axon will provide Agency a new Axon Dock as scheduled in the Quote ("Dock Upgrade"). Accessories associated with any Dock Upgrades are subject to change at Axon discretion. Dock Upgrades will only include a new Axon Dock bay configuration unless a new Axon Dock core is required for BWC compatibility. If Agency originally purchased a single-bay Axon Dock, the Dock Upgrade will be a single-bay Axon Dock model that is the same or like Axon Device, at Axon’s option. If Agency originally purchased a multi-bay Axon Dock, the Dock Upgrade will be a multi-bay Axon Dock that is the same or like Axon Device, at Axon’s option.

6. Upgrade Delay. Axon may ship the BWC and Dock Upgrades as scheduled in the Quote without prior confirmation from Agency unless the Parties agree in writing otherwise at least ninety (90) days in advance. Axon may ship the final BWC and Dock Upgrade as scheduled in the Quote sixty (60) days before the end of the Subscription Term without prior confirmation from Agency.

7. Upgrade Change. If Agency wants to upgrade Axon Device models from the current Axon Device to an upgraded Axon Device, Agency must pay the price difference between the MSRP for the current Axon Device and the MSRP for the upgraded Axon Device. If the model Agency desires has an MSRP less than the MSRP of the offered BWC Upgrade or Dock Upgrade, Axon will not provide a refund. The MSRP is the MSRP in effect at the time of the upgrade.

8. Return of Original Axon Device. Within thirty (30) days of receiving a BWC or Dock Upgrade, Agency must return the original Axon Devices to Axon or destroy the Axon Devices and provide a certificate of destruction to Axon including serial numbers for the destroyed Axon Devices. If Agency does not return or destroy the Axon Devices, Axon will deactivate the serial numbers for the Axon Devices received by Agency.

9. Termination. If Agency’s payment for TAP, OSP, or Axon Evidence is more than thirty (30) days past due, Axon may terminate TAP or OSP. Once TAP or OSP terminates for any reason:

9.1. TAP and OSP coverage terminate as of the date of termination and no refunds will be given.

9.2. Axon will not and has no obligation to provide the Upgrade Models.

9.3. Agency must make any missed payments due to the termination before Agency may purchase any future TAP or OSP.

1. Agency Responsibilities.

19. Agency must ensure its infrastructure and vehicles adhere to the minimum requirements to operate Axon Fleet 2 or Axon Fleet 3 (collectively, "Axon Fleet") as established by Axon during the qualifier call and on-site assessment at Agency and in any technical qualifying questions. If Agency’s representations are inaccurate, the Quote is subject to change.

20. Agency is responsible for providing a suitable work area for Axon or Axon third-party providers to install Axon Fleet systems into Agency vehicles. Agency is responsible for making available all vehicles for which installation services were purchased, during the agreed upon onsite installation dates, Failure to make vehicles available may require an equitable adjustment in fees or schedule.

2. Cradlepoint. If Agency purchases Cradlepoint Enterprise Cloud Manager, Agency will comply with Cradlepoint’s end user license agreement. The term of the Cradlepoint license may differ from the Axon Evidence Subscription. If Agency requires Cradlepoint support, Agency will contact Cradlepoint directly.

3. Third-party Installer. Axon will not be liable for the failure of Axon Fleet hardware to operate per specifications if such failure results from installation not performed by, or as directed by Axon.

4. Wireless Offload Server.

4.1. License Grant. Axon grants Agency a non-exclusive, royalty-free, worldwide, perpetual license to use Wireless Offload Server ("WOS"). "Use" means storing, loading, installing, or executing WOS solely for data communication with Axon Devices for the number of licenses purchased. The WOS term begins upon the start of the Axon Evidence Subscription.

4.2. Restrictions. Agency may not: (a) modify, alter, tamper with, repair, or create derivative works of WOS; (b) reverse engineer, disassemble, or decompile WOS, apply any process to derive the source code of WOS, or allow others to do so; (c) access or use WOS to avoid incurring fees or exceeding usage limits; (d) copy WOS in whole or part; (e) use trade secret information contained in WOS; (f) resell, rent, loan or sublicense WOS; (g) access WOS to build a competitive device or service or copy any features, functions or graphics of WOS; or (h) remove, alter or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon or Axon’s licensors on or within WOS.

4.3. Updates. If Agency purchases WOS maintenance, Axon will make updates and error corrections to WOS ("WOS Updates") available electronically via the Internet or media as determined by Axon. Agency is responsible for establishing and maintaining adequate Internet access to receive WOS Updates and maintaining computer equipment necessary for use of WOS. The Quote will detail the maintenance term.

4.4. WOS Support. Upon request by Axon, Agency will provide Axon with access to Agency’s store and forward servers solely for troubleshooting and maintenance.

5. Axon Vehicle Software.

5.1. License Grant. Axon grants Agency a non-exclusive, royalty-free, worldwide, perpetual license to use ViewXL or Dashboard (collectively, "Axon Vehicle Software".) "Use" means storing, loading, installing, or executing Axon Vehicle Software solely for data communication with Axon Devices. The Axon Vehicle Software term begins upon the start of the Axon Evidence Subscription.

5.2. Restrictions. Agency may not: (a) modify, alter, tamper with, repair, or create derivative works of Axon Vehicle Software; (b) reverse engineer, disassemble, or decompile Axon Vehicle Software, apply any process to derive the source code of Axon Vehicle Software, or allow others to do so; (c) access or use Axon Vehicle Software to avoid incurring fees or exceeding usage limits; (d) copy Axon Vehicle Software in whole or part; (e) use trade secret information contained in Axon Vehicle Software; (f) resell, rent, loan or sublicense Axon Vehicle Software; (g) access Axon Vehicle Software to build a competitive device or service or copy any features, functions or graphics of Axon Vehicle Software; or (h) remove, alter or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon or Axon’s licensors on or within Axon Vehicle Software.

Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 19.0
Release Date: 8/18/2023 Page 16 of 19

6. Acceptance Checklist. If Axon provides services to Agency pursuant to any statement of work in connection with Axon Fleet, within seven (7) days of the date on which Agency retrieves Agency's vehicle(s) from the Axon installer, said vehicle having been installed and configured with tested and fully and properly operational in-car hardware and software identified above, Agency will receive a Professional Services Acceptance Checklist to submit to Axon indicating acceptance or denial of said deliverables.

7. Axon Fleet Upgrade. If Agency has no outstanding payment obligations and has purchased the "Fleet Technology Assurance Plan" (Fleet TAP), Axon will provide Agency with the same or like model of Fleet hardware ("Axon Fleet Upgrade") as scheduled on the Quote.

7.1. If Agency would like to change models for the Axon Fleet Upgrade, Agency must pay the difference between the MSRP for the offered Axon Fleet Upgrade and the MSRP for the model desired. The MSRP is the MSRP in effect at the time of the upgrade. Agency is responsible for the removal of previously installed hardware and installation of the Axon Fleet Upgrade.

7.2. Within thirty (30) days of receiving the Axon Fleet Upgrade, Agency must return the original Axon Devices to Axon or destroy the Axon Devices and provide a certificate of destruction to Axon, including serial numbers of the destroyed Axon Devices. If Agency does not destroy or return the Axon Devices to Axon, Axon will deactivate the serial numbers for the Axon Devices received by Agency.

8. Axon Fleet Termination. Axon may terminate Agency’s Fleet subscription for non-payment. Upon any termination:

8.1. Axon Fleet subscription coverage terminates, and no refunds will be given.

8.2. Axon will not and has no obligation to provide the Axon Fleet Upgrade.

8.3. Agency will be responsible for payment of any missed payments due to the termination before being allowed to purchase any future Fleet TAP.

Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 19.0
Release Date: 8/18/2023 Page 17 of 19
Axon Respond Appendix
This Axon Respond Appendix applies to both Axon Respond and Axon Respond Plus, if either is included on the Quote.

1. Axon Respond Subscription Term. If Agency purchases Axon Respond as part of a bundled offering, the Axon Respond subscription begins on the later of the (1) start date of that bundled offering, or (2) date Axon provisions Axon Respond to Agency. If Agency purchases Axon Respond as a standalone, the Axon Respond subscription begins the later of the (1) date Axon provisions Axon Respond to Agency, or (2) first day of the month following the Effective Date. The Axon Respond subscription term will end upon the completion of the Axon Evidence Subscription associated with Axon Respond.

2. Scope of Axon Respond. The scope of Axon Respond is to assist Agency with real-time situational awareness during critical incidents to improve officer safety, effectiveness, and awareness. In the event Agency uses Axon Respond outside this scope, Axon may initiate good-faith discussions with Agency on upgrading Agency’s Axon Respond to better meet Agency’s needs.

3. Axon Body 3 LTE Requirements. Axon Respond is only available and usable with an LTE enabled body-worn camera. Axon is not liable if Agency utilizes the LTE device outside of the coverage area or if the LTE carrier is unavailable. LTE coverage is only available in the United States, including any U.S. territories. Axon may utilize a carrier of Axon’s choice to provide LTE service. Axon may change LTE carriers during the Term without Agency’s consent.

4. Axon Fleet 3 LTE Requirements. Axon Respond is only available and usable with a Fleet 3 system configured with LTE modem and service. Agency is responsible for providing LTE service for the modem. Coverage and availability of LTE service is subject to Agency’s LTE carrier.

5. Axon Respond Service Limitations. Agency acknowledges that LTE service is made available only within the operating range of the networks. Service may be temporarily refused, interrupted, or limited because of: (a) facilities limitations; (b) transmission limitations caused by atmospheric, terrain, other natural or artificial conditions adversely affecting transmission, weak batteries, system overcapacity, movement outside a service area or gaps in coverage in a service area, and other causes reasonably outside of the carrier’s control such as intentional or negligent acts of third parties that damage or impair the network or disrupt service; or (c) equipment modifications, upgrades, relocations, repairs, and other similar activities necessary for the proper or improved operation of service.

5.1. With regard to Axon Body 3, Partner networks are made available as-is and the carrier makes no warranties or representations as to the availability or quality of roaming service provided by carrier partners, and the carrier will not be liable in any capacity for any errors, outages, or failures of carrier partner networks. Agency expressly understands and agrees that it has no contractual relationship whatsoever with the underlying wireless service provider or its affiliates or contractors and Agency is not a third-party beneficiary of any agreement between Axon and the underlying carrier.

6. Termination. Upon termination of this Agreement, or if Agency stops paying for Axon Respond or bundles that include Axon Respond, Axon will end Axon Respond services, including any Axon-provided LTE service.

1. Definitions.

1.1. "API Client" means the software that acts as the interface between Agency’s computer and the server, which is already developed or to be developed by Agency.

1.2. "API Interface" means software implemented by Agency to configure Agency’s independent API Client Software to operate in conjunction with the API Service for Agency’s authorized Use.

1.3. "Axon Evidence Partner API, API or Axon API" (collectively "API Service") means Axon’s API which provides a programmatic means to access data in Agency’s Axon Evidence account or integrate Agency’s Axon Evidence account with other systems.

1.4. "Use" means any operation on Agency’s data enabled by the supported API functionality.

2. Purpose and License.

2.1. Agency may use API Service and data made available through API Service, in connection with an API Client developed by Agency. Axon may monitor Agency’s use of API Service to ensure quality, improve Axon devices and services, and verify compliance with this Agreement. Agency agrees to not interfere with such monitoring or obscure from Axon Agency’s use of API Service. Agency will not use API Service for commercial use.

2.2. Axon grants Agency a non-exclusive, non-transferable, non-sublicensable, worldwide, revocable right and license during the Term to use API Service, solely for Agency’s Use in connection with Agency’s API Client.

2.3. Axon reserves the right to set limitations on Agency’s use of the API Service, such as a quota on operations, to ensure stability and availability of Axon’s API. Axon will use reasonable efforts to accommodate use beyond the designated limits.

3. Configuration. Agency will work independently to configure Agency’s API Client with API Service for Agency’s applicable Use. Agency will be required to provide certain information (such as identification or contact details) as part of the registration. Registration information provided to Axon must be accurate. Agency will inform Axon promptly of any updates. Upon Agency’s registration, Axon will provide documentation outlining API Service information.

4. Agency Responsibilities. When using API Service, Agency and its end users may not:

4.1. use API Service in any way other than as expressly permitted under this Agreement;

4.2. use in any way that results in, or could result in, any security breach to Axon;

4.3. perform an action with the intent of introducing any viruses, worms, defect, Trojan horses, malware, or any items of a destructive nature to Axon Devices and Services;

4.4. interfere with, modify, disrupt or disable features or functionality of API Service or the servers or networks providing API Service;

4.5. reverse engineer, decompile, disassemble, or translate or attempt to extract the source code from API Service or any related software;

4.6. create an API Interface that functions substantially the same as API Service and offer it for use by third parties;

4.7. provide use of API Service on a service bureau, rental or managed services basis or permit other individuals or entities to create links to API Service;

4.8. frame or mirror API Service on any other server, or wireless or Internet-based device;

4.9. make available to a third-party, any token, key, password or other login credentials to API Service;

4.10. take any action or inaction resulting in illegal, unauthorized or improper purposes; or

4.11. disclose Axon’s API manual.

5. API Content. All content related to API Service, other than Agency Content or Agency’s API Client content, is considered Axon’s API Content, including:

Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 19.0
Release Date: 8/18/2023 Page 19 of 19

5.1. the design, structure and naming of API Service fields in all responses and requests;

5.2. the resources available within API Service for which Agency takes actions on, such as evidence, cases, users, or reports;

5.3. the structure of and relationship of API Service resources; and

5.4. the design of API Service, in any part or as a whole.

6. Prohibitions on API Content. Neither Agency nor its end users will use API content returned from the API Interface to:

6.1. scrape, build databases, or otherwise create permanent copies of such content, or keep cached copies longer than permitted by the cache header;

6.2. copy, translate, modify, create a derivative work of, sell, lease, lend, convey, distribute, publicly display, or sublicense to any third-party;

6.3. misrepresent the source or ownership; or

6.4. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices).

7. API Updates. Axon may update or modify the API Service from time to time ("API Update"). Agency is required to implement and use the most current version of API Service and to make any applicable changes to Agency’s API Client required as a result of such API Update. API Updates may adversely affect how Agency’s API Client access or communicate with API Service or the API Interface. Each API Client must contain means for Agency to update API Client to the most current version of API Service. Axon will provide support for one (1) year following the release of an API Update for all depreciated API Service versions.

Page 1 ends

Q-541313-45399.603KP
Issued: 04/17/2024
Quote Expiration: 05/30/2024
Estimated Contract Start Date: 06/15/2024
Account Number: 119528
Payment Terms: N30
Delivery Method:

SHIP TO BILL TO SALES REPRESENTATIVE PRIMARY CONTACT
Cypress Police Department - CA
5275 Orange Ave
Cypress,
CA
90630-2957
USA
Cypress Police Department - CA
5275 Orange Ave
Cypress
CA
90630-2957
USA
Email:

Kyle Panasewicz
Phone: +1 4803294734
Email: [email protected]
Fax: (480) 905-2071
Jason Machado
Phone: 714-229-6728
Email: [email protected]
Fax:

Quote Summary Discount Summary
Program Length 60 Months Average Savings Per Year $13,990.68 TOTAL COST $261,265.90
ESTIMATED TOTAL W/ TAX $274,686.38 TOTAL SAVINGS $69,953.40 Axon Enterprise, Inc.
17800 N 85th St.

Scottsdale, Arizona 85255
United States
VAT: 86-0741227
Domestic: (800) 978-2737
International: +1.800.978.2737

Page 2 ends

Payment Summary
Date Subtotal Tax Total
May 2024 $54,653.18 $2,684.09 $57,337.27
May 2025 $51,653.18 $2,684.09 $54,337.27
May 2026 $51,653.18 $2,684.09 $54,337.27
May 2027 $51,653.18 $2,684.09 $54,337.27
May 2028 $51,653.18 $2,684.12 $54,337.30
Total $261,265.90 $13,420.48 $274,686.38

Page 3 ends

Quote Unbundled Price: $331,219.30
Quote List Price: $290,131.90
Quote Subtotal: $261,265.90
Pricing
All deliverables are detailed in Delivery Schedules section lower in proposal Item Description Qty Term Unbundled List Price Net Price Subtotal Tax Total Program
BWCamMBDTAP Body Worn Camera Multi-Bay Dock TAP Bundle 9 60 $70.98 $36.07 $36.07 $19,477.80 $1,252.65 $20,730.45 BWCamTAP Body Worn Camera TAP Bundle 68 60 $39.25 $33.80 $33.80 $137,904.00 $8,787.58 $146,691.58 A la Carte Hardware
H00002 AB4 Multi Bay Dock Bundle 9 $1,638.90 $1,638.90 $14,750.10 $1,143.14 $15,893.24 H00001 AB4 Camera Bundle 68 $849.00 $424.50 $28,866.00 $2,237.11 $31,103.11 A la Carte Software
73682 AXON EVIDENCE - AUTO TAGGING LICENSE 68 60 $10.85 $10.85 $44,268.00 $0.00 $44,268.00 A la Carte Services
79999 AXON EVIDENCE - IMPLEMENTATION FOR AUTO
TAGGING/PERFORMANCE 1 $3,000.00 $3,000.00 $3,000.00 $0.00 $3,000.00 85144 AXON BODY - PSO - STARTER 1 $13,000.00 $13,000.00 $13,000.00 $0.00 $13,000.00 Total $261,265.90 $13,420.48 $274,686.38

Page 4 ends

Delivery Schedule
Hardware
Bundle Item Description QTY Shipping Location Estimated Delivery Date AB4 Camera Bundle 100147 AXON BODY 4 - CAMERA - NA US FIRST RESPONDER BLK RAPIDLOCK 68 1 05/15/2024 AB4 Camera Bundle 100147 AXON BODY 4 - CAMERA - NA US FIRST RESPONDER BLK RAPIDLOCK 2 1 05/15/2024 AB4 Camera Bundle 100466 AXON BODY 4 - CABLE - USB-C TO USB-C 75 1 05/15/2024 AB4 Camera Bundle 74028 AXON BODY - MOUNT - WING CLIP RAPIDLOCK 75 1 05/15/2024 AB4 Multi Bay Dock Bundle 100206 AXON BODY 4 - DOCK - EIGHT BAY 9 1 05/15/2024 AB4 Multi Bay Dock Bundle 70033 AXON - DOCK WALL MOUNT - BRACKET ASSY 9 1 05/15/2024 AB4 Multi Bay Dock Bundle 71019 AXON BODY - DOCK POWERCORD - NORTH AMERICA 9 1 05/15/2024 Body Worn Camera Multi-Bay Dock TAP Bundle 73689 AXON BODY - TAP REFRESH 1 - DOCK MULTI BAY 9 1 11/15/2026 Body Worn Camera TAP Bundle 73309 AXON BODY - TAP REFRESH 1 - CAMERA 70 1 11/15/2026 Body Worn Camera Multi-Bay Dock TAP Bundle 73688 AXON BODY - TAP REFRESH 2 - DOCK MULTI BAY 9 1 05/15/2029 Body Worn Camera TAP Bundle 73310 AXON BODY - TAP REFRESH 2 - CAMERA 70 1 05/15/2029 Software
Bundle Item Description QTY Estimated Start Date Estimated End Date A la Carte 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 68 06/15/2024 06/14/2029 Services
Bundle Item Description QTY
A la Carte 79999 AXON EVIDENCE - IMPLEMENTATION FOR AUTO TAGGING/PERFORMANCE 1 A la Carte 85144 AXON BODY - PSO - STARTER 1
Warranties
Bundle Item Description QTY Estimated Start Date Estimated End Date Body Worn Camera Multi-Bay Dock TAP Bundle 80465 AXON BODY - TAP WARRANTY - MULTI BAY DOCK 9 05/15/2025 06/14/2029 Body Worn Camera TAP Bundle 80464 AXON BODY - TAP WARRANTY - CAMERA 68 05/15/2025 06/14/2029 Body Worn Camera TAP Bundle 80464 AXON BODY - TAP WARRANTY - CAMERA 2 05/15/2025 06/14/2029

Page 5 ends

Shipping Locations
Location Number Street City State Zip Country
1 5275 Orange Ave Cypress CA 90630-2957 USA
Payment Details
May 2024
Invoice Plan Item Description Qty Subtotal Tax Total
Upfront 79999 AXON EVIDENCE - IMPLEMENTATION FOR AUTO TAGGING/PERFORMANCE 1 $3,000.00 $0.00 $3,000.00 Year 1 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 68 $8,853.60 $0.00 $8,853.60 Year 1 85144 AXON BODY - PSO - STARTER 1 $2,600.00 $0.00 $2,600.00 Year 1 BWCamMBDTAP Body Worn Camera Multi-Bay Dock TAP Bundle 9 $3,895.56 $250.53 $4,146.09 Year 1 BWCamTAP Body Worn Camera TAP Bundle 68 $27,580.80 $1,757.52 $29,338.32 Year 1 H00001 AB4 Camera Bundle 68 $5,773.20 $447.42 $6,220.62 Year 1 H00002 AB4 Multi Bay Dock Bundle 9 $2,950.02 $228.62 $3,178.64 Total $54,653.18 $2,684.09 $57,337.27
Jun 2024
Invoice Plan Item Description Qty Subtotal Tax Total
Invoice Upon Fulfillment BWCamMBDTAP Body Worn Camera Multi-Bay Dock TAP Bundle 9 $0.00 $0.00 $0.00 Total $0.00 $0.00 $0.00
May 2025
Invoice Plan Item Description Qty Subtotal Tax Total
Year 2 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 68 $8,853.60 $0.00 $8,853.60 Year 2 85144 AXON BODY - PSO - STARTER 1 $2,600.00 $0.00 $2,600.00 Year 2 BWCamMBDTAP Body Worn Camera Multi-Bay Dock TAP Bundle 9 $3,895.56 $250.53 $4,146.09 Year 2 BWCamTAP Body Worn Camera TAP Bundle 68 $27,580.80 $1,757.52 $29,338.32 Year 2 H00001 AB4 Camera Bundle 68 $5,773.20 $447.42 $6,220.62 Year 2 H00002 AB4 Multi Bay Dock Bundle 9 $2,950.02 $228.62 $3,178.64 Total $51,653.18 $2,684.09 $54,337.27
May 2026
Invoice Plan Item Description Qty Subtotal Tax Total
Year 3 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 68 $8,853.60 $0.00 $8,853.60 Year 3 85144 AXON BODY - PSO - STARTER 1 $2,600.00 $0.00 $2,600.00 Year 3 BWCamMBDTAP Body Worn Camera Multi-Bay Dock TAP Bundle 9 $3,895.56 $250.53 $4,146.09 Year 3 BWCamTAP Body Worn Camera TAP Bundle 68 $27,580.80 $1,757.52 $29,338.32 Year 3 H00001 AB4 Camera Bundle 68 $5,773.20 $447.42 $6,220.62 Year 3 H00002 AB4 Multi Bay Dock Bundle 9 $2,950.02 $228.62 $3,178.64 Total $51,653.18 $2,684.09 $54,337.27
May 2027
Invoice Plan Item Description Qty Subtotal Tax Total
Year 4 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 68 $8,853.60 $0.00 $8,853.60 Year 4 85144 AXON BODY - PSO - STARTER 1 $2,600.00 $0.00 $2,600.00

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May 2027
Invoice Plan Item Description Qty Subtotal Tax Total
Year 4 BWCamMBDTAP Body Worn Camera Multi-Bay Dock TAP Bundle 9 $3,895.56 $250.53 $4,146.09 Year 4 BWCamTAP Body Worn Camera TAP Bundle 68 $27,580.80 $1,757.52 $29,338.32 Year 4 H00001 AB4 Camera Bundle 68 $5,773.20 $447.42 $6,220.62 Year 4 H00002 AB4 Multi Bay Dock Bundle 9 $2,950.02 $228.62 $3,178.64 Total $51,653.18 $2,684.09 $54,337.27
May 2028
Invoice Plan Item Description Qty Subtotal Tax Total
Year 5 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 68 $8,853.60 $0.00 $8,853.60 Year 5 85144 AXON BODY - PSO - STARTER 1 $2,600.00 $0.00 $2,600.00 Year 5 BWCamMBDTAP Body Worn Camera Multi-Bay Dock TAP Bundle 9 $3,895.56 $250.53 $4,146.09 Year 5 BWCamTAP Body Worn Camera TAP Bundle 68 $27,580.80 $1,757.50 $29,338.30 Year 5 H00001 AB4 Camera Bundle 68 $5,773.20 $447.43 $6,220.63 Year 5 H00002 AB4 Multi Bay Dock Bundle 9 $2,950.02 $228.66 $3,178.68 Total $51,653.18 $2,684.12 $54,337.30
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 9.

FROM: Matt Burton, Director of Finance and Administrative Services DATE: 05/13/2024
SUBJECT: Receive and File Fiscal Year 2024-25 Proposed Budget and Capital Improvement Program

RECOMMENDATION

1. Receive and file the FY 2024-25 Proposed Budget and Capital Improvement Program;

2. Schedule City Council consideration for adoption of the FY 2024-25 Budget on June 10, 2024; and

3. Publish a notice stating the public may comment on the Budget at the meeting of June 10, 2024.

SUMMARY
Each May, the City Manager submits the Proposed Budget for the City and Recreation and Park District to the City Council. The first step in the Budget adoption process is a workshop which presents an overview of the City’s financial condition and the Proposed Budget. The workshop provides the City Council the opportunity to ask questions about the Proposed Budget and provide direction prior to considering Budget adoption in June.

DISCUSSION
The Proposed Budget is the culmination of approximately five months of work. Led by the Finance department, much effort is invested in estimating revenues, assessing the City’s financial outlook, and working with the departments to develop spending plans to deliver services to the community.

The FY 2024-25 Proposed Budget is balanced, maintains service levels, and incorporates the necessary funding for the first year of the Seven-Year Capital Improvement Plan. The Proposed Budget adheres to the City Council's Fiscal Strategies to ensure the City's fiscal health and advance the City Council's Strategic Plan.

Included with this report are:

The City Manager’s Budget Message
Decision Packages
The City of Cypress and Cypress Recreation and Park District Proposed Budget The City Manager’s Budget Message provides a narrative overview of the factors and considerations included in the Proposed Budget. The message highlights significant factors impacting FY 2024-25 and identifies longer-term challenges facing the City and District.

Decision Packages summarize significant changes in the Proposed Budget, including impacts from recommended changes. The City Council may approve, deny, change or add Decision Packages as long as the Budget remains balanced.

The City of Cypress and Recreation and Park District Proposed Budget provides an executive-level overview of each department at the division level and includes a Five-Year Forecast for the City's General Fund to assist in long-term planning. The Proposed Budget includes performance measures, FY 2023-24 accomplishments and FY 2024-25 objectives for each division. The Proposed Budget also includes extensive overview information, detailed capital project descriptions, and the Fiscal Strategies used in developing the Proposed Budget. This information provides a clear picture of how the City’s resources are being used to provide services to the community.

BUDGET IMPACT
None.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
FY 2024-25 Budget Message
FY 2024-25 Decision Packages
FY 2024-25 Proposed Annual Budget
May 13, 2024
Honorable Mayor and Members of the City Council:

I am pleased to present the City of Cypress’ Fiscal Year (FY) 2024-25 Proposed Budget and Capital Improvement Program (CIP). It is a prudent, practical spending plan that serves the community well and advances Cypress’ legacy of conservative and awardwinning financial management.

The City’s long-term financial position remains strong amidst a challenging, confused economy, high interest rates, and rising personnel costs. As was the case in FY 2023-24, the Proposed Budget is balanced thanks to interest earnings, but as the Five-Year Forecast highlights, the City remains dogged by a stubborn structural deficit that limits our options to absorb cost increases or enhance service levels.

The deficits projected in the Five-Year Forecast have two primary causes. The first cause is one that all California cities face: costs - especially personnel costs - increase faster than revenues and cities have very little ability to raise revenue. The second cause is unique to Cypress: the annual $1.55 million of General Fund operating revenue dedicated to capital and infrastructure projects. City Councils have made this important annual investment for more than 20 years and Cypress' high-quality infrastructure and public facilities reflect it. However, this commitment is funded with revenues that would otherwise be available for operations and budget balancing.

The $1.55 million investment in capital and infrastructure is highlighted in the Budget Message to underscore its importance to Cypress’ success – not to suggest the City Council should abandon or decrease it. In fact, adjusting for inflation, the $1.55 million investment has less than half the buying power it did in 2004. The community would be well served to increase the investment of operating revenue in capital and infrastructure projects if it could be accomplished without reducing services or staffing.

Fortunately, the deficits projected in the Five-Year Forecast can likely be offset by using amounts set-aside in the Budget Stabilization Reserve, which was established to bridge small budget deficits that are anticipated to rectify through operational efficiencies and prior fiscal year end budget savings.

The City has experienced small, projected budget deficits for the past several years.

Fortunately, the deficits have proven to be on paper only and resolved when revenues exceeded sensible projections and/or some planned spending and projects did not come to pass.

Nonetheless, Cypress’ long-term financial future must remain a top consideration for the City Council. In particular, City operations are heavily dependent on sales tax – a volatile revenue that is not generated evenly throughout the business community. Cypress relies on a handful of businesses for the majority of its sales tax, which means a disruption to any of those businesses could imperil City operations. To mitigate this risk, the City Council updated the City’s sales tax estimating and budgeting practice a few years ago to limit reliance on sales tax funding for annual operations.

While the City’s ability to generate additional revenue is limited, preserving Cypress’ strong financial position requires the City Council to do all it can to support the success and vitality of Cypress’ business parks and the Katella Avenue commercial corridor.

The result of a visionary public-private partnership more than 40 years ago that deftly blended Cypress’ residential and commercial land uses, the business parks are Cypress’ economic engine. The City’s ongoing role in this partnership is to provide the regulatory environment and flexibility our business community needs to succeed. As the first generation of business park buildings are modernized and their uses evolve with the regional economy, the City must approach projects focused on the whole community and balance competing interests with an eye to the horizon.

City Councils, past and present, recognize the value of a balanced residential and commercial community and have approved many business support initiatives. Highlights from recent City Council actions include:
 Direct support of Cypress’ business community from one-time pandemic recovery funding
 Funding a full-time Business Development Manager position  Preparing to modernize the business parks’ land use regulations  Approving an updated Housing Element that commits to asking voters to approve more (and more diverse) housing at Los Alamitos Race Course when it redevelops These initiatives present the community the opportunity to bolster City revenues without increasing taxes. Cypress is one of just a few established, fully-developed cities in southern California that have not increased its local sales tax rate and does not have a utility user tax.

Investing in the business community to avoid higher taxes benefits residents and makes Cypress more attractive to businesses - a success sustaining cycle results in a community that is less likely to need to consider new taxes.

Our industry leading financial management practices are a justifiable source of community pride. Cypress is the only city to be recognized twice by former State Senator (and Certified Public Accountant) John Moorlach for having the strongest unrestricted net (fiscal) position of Orange County’s 34 cities. The City also continues to earn recognition from the Government Finance Officers Association for its Budget and Annual Comprehensive Financial Report. A new online, resident-friendly Budget presentation debuted in FY 2023-24 and is furthering the City’s commitment to transparency.

FY 2024-25 finds the City’s short-term financial condition healthy, but navigating a variety of inflation-related challenges, an extraordinarily difficult employment market, and wobbling sales tax.

Inflation has hit capital projects especially hard. The estimated cost for every CIP project has increased dramatically because of inflation and supply shortages. Annual projects, like residential street resurfacing, have had their scope of work reduced compared to prior years or rely on funding from accumulated General Fund set-asides in the City’s Infrastructure Bank. Fortunately, Cypress’ strong financial management practices enable the City to fund CIP projects on a pay-as-you-go basis and avoid high borrowing costs.

Personnel costs are up $2 million from FY 2023-24 and place considerable strain on City finances. While spending on personnel is an important investment in ensuring Cypress is served by highly capable professionals who are committed to preserving and promoting our community, the costs will be a challenge to sustain.

Employer pension costs are forecasted to continue to increase as CalPERS navigates high interest rates, international crises, and rising employee wages. Fortunately, the City Council recently approved a plan to fully offset Cypress’ unfunded pension liabilities by 2030. I believe Cypress will be the first city in the state with a public safety department to fully offset its pension liability without issuing debt. This remarkable accomplishment not only strengthens the City’s financial position, it is an indelible commitment to our employees and their retirement security.

BUDGET OVERVIEW
The combined Operating and Capital Budgets are $57 million, an increase of 9.4% from FY 2023-24, and are balanced.

The Operating Budget (all Funds) represents $43.5 million (76%) of the Budget, while capital improvement investments total $13 million (23%) and capital outlay makes up $0.5 million (1%) of expenditures.

The City is largely a service provider and over two-thirds of the Operating Budget are personnel costs, with the majority of that in the Police department.

Projected FY 2024-25 revenues are $53.5 million, five percent increase from FY 2023-24.

While General Fund revenues exceed operating expenditures, the use of accumulated reserves to support capital investments balances the Budget. Overall, the $1.5 million fund balance decline for all City funds is largely the result of the use of accumulated moneys (including one-time Pandemic Recovery Plan funds) for capital improvement program investments.

Key assumptions used to develop the Budget include:
 Reflects established City Council priorities and Fiscal Strategies  Sales tax revenue grows modestly
 $786,200 of Pandemic Recovery Plan set-asides fund one-time projects  Current service levels are maintained
 Required CalPERS pension liability payments increase $823,000  City Council established reserves are maintained
 $2.1 million of General Fund resources are contributed for current year capital projects  Negotiated and anticipated employee salary and benefit increases are incorporated General Fund Overview
The General Fund, the City’s largest fund and the one over which the City Council has the most discretion, is balanced with a small projected decrease in total reserves.

General Fund Revenues
FY 2024-25 General Fund revenues are projected to increase $2,200,910 (5.5%) from the prior year and do not include any tax increases.

Inflation impacts and the expectation that the economy will slow make revenue projections difficult. Accordingly, the Budget is built on conservative, but realistic projections that reflect the most up-to-date information available from the City’s sales tax consultant, property tax consultant, Cal Cities, the State Department of Finance, year-to-date receipts, and regional economic forecasts.

Cypress’ largest revenue source, property tax ($14 million), is projected to increase just over $1 million (7.9%) from the FY 2023-24 Budget. While Proposition 13 limits annual assessed value increases to protect homeowners, over time it has prevented property tax revenue from keeping pace with operating costs. However, the increase projected for FY 2024-25 is larger than in a typical year and is the result of significant assessed value growth due to ownership changes and new construction of apartments and senior living communities.

Sales tax remains a close second to property tax for largest revenue source ($12.9 million) and is volatile, especially during periods of economic uncertainty. Sales tax receipts remained stronger than expected during the pandemic, and more recently have benefitted from inflation and its impact on the cost of taxable items. The most recent forecasts indicate modest sales tax growth in FY 2024-25. While any year-over-year growth is positive news, ongoing City operations cannot become overly reliant on sales tax because it can decline rapidly from one year to the next. As such, the Fiscal Strategies are designed to limit budgeted sales tax revenues that supports City operations to a four-year average. Sales tax receipts projected to exceed the four-year average are dedicated for one-time expenditure. For FY 2024-25, the sales tax baseline average is just over $13 million which exceeds the sales tax revenues included in the Budget so no amounts are required to be allocated to one-time purposes.

Until about two years ago, investment earnings received on cash balances, had not been a major revenue source in the General Fund for well over a decade. However, Federal Reserve actions resulted in unprecedented interest rate hikes in 2022 which have held steady into 2024. While these increases are generally viewed as economically risky with the potential for negative short-term financial impacts to residents, local businesses and the City’s revenue base, higher interest paid on Treasury-backed securities generates significant additional revenues to the City. Over the last few years, interest rates on Treasury notes have gone from close to zero to well over four percent. As such, investment earnings in FY 2024-25 continue to increase and are expected to be $450,000 higher than the prior budget and nearly $2 million more than the FY 2022-23 adopted budget. In short, the growth in investment earnings have been responsible for the FY 2023- 24 Budget and FY 2024-25 Proposed Budget being balanced without the use of reserves.

As with sales tax revenue, it is essential that City services do not rely on an unpredictable revenue source like investment earnings. In response, a new practice has been incorporated into the FY 2024-25 Proposed Budget which allocates a portion of General Fund interest earnings to one-time capital projects when earnings on cash balances are projected to exceed three percent. For FY 2024-25, interest earnings are budgeted at four percent and total $2.2 million which results in an additional one-time budget allocation of $550,000 for capital projects.

It remains imperative the City Council act as diligent stewards of the community’s resources, confronting new financial challenges, diversifying the City’s revenue base, and containing ongoing costs to limit vulnerability during periods of volatility.

General Fund Expenditures
FY 2024-25 expenditures are $39.9 million, an increase of $2.4 million (6.3%) from FY 2023-24.

The personnel expenditure increases are due to many factors, the largest are the costs associated with negotiated increases for Police Officers and pending agreements with all civilian employees.

Responding to industry-wide wage and recruitment pressures, the two labor agreements for sworn personnel significantly increased compensation to the Police department’s Police Officers, Sergeants, Lieutenants and Captains.

Other personnel increases include significantly higher required CalPERS unfunded pension liability amortization payments and anticipated compensation adjustments for unrepresented employees. These increases are partially offset by decreases from FY 2024-25 Decision Packages that recommend eliminating two vacant full-time positions.

Maintenance and operation increases result from several factors, including expected mandatory increases to the City’s required contribution for regional homelessness assistance and contract animal control services, as well as several items included in the Decision Packages. Decision Package are summarized in the following table.

Capital Improvement Program (CIP) Highlights
The CIP is the City’s long-term plan for investing in facilities and infrastructure. It is a key component of the Budget and of vital importance to the community. The CIP balances new projects, replacement of aged infrastructure, and life-extending maintenance.

Comprised of projects that often span multiple years and draw on many different funding sources, the Proposed FY 2024-25 CIP invests $13 million. The CIP also includes nearly $1.6 million for Recreation and Park District projects.

Fund Balances and Reserves
The Proposed Budget reflects the City Council’s policy of fully funding capital outlay replacements and employee benefit and self-insurance liabilities. All liabilities (with the exception of the CalPERS pension and retiree medical liabilities) are fully-funded and the Internal Service Funds have sufficient cash to pay all the required annual contributions for pensions and retiree medical costs.

The City Council has established a Pension Trust to help offset unfunded CalPERS pension liabilities, with a goal of having sufficient Pension Trust assets to fully offset projected unfunded pension liabilities by 2030. To achieve this goal, a portion of any General Fund budget surplus is annually committed to additional trust investments.

Importantly, the Proposed Budget conforms to City Council policies requiring a 25% General Fund Contingency Reserve of $10 million and a 30% CIP Fund Cash-Flow Emergency Reserve of $12 million. Neither of these reserves is expected to be utilized in FY 2024-25.

CYPRESS RECREATION AND PARK DISTRICT
The Proposed Budget includes the Recreation and Park District (District), which is a distinct legal entity from the City although the City Council serves as the District’s Board of Directors. The City supports the District through fee-based general management; finance; human resources; information technology; and maintenance services.

District Revenues
District revenues are budgeted at $9.6 million, an increase of $951,474 (11%) from FY 2023-24. The higher revenues are attributed to larger than normal property tax growth and higher rates earned on cash balances which were both discussed previously in the overview of the City’s General Fund, as well as a $415,878 one-time State Proposition 68 grant for capital projects.

The District receives the majority of its recurring revenue (over 80%) from property tax, with fees for service (classes and facility rentals) historically being the one other major revenue source. The District’s dedicated property tax revenue remains a double-edged sword. It provides a stable income stream with which the District delivers a high level of recreation services. However, under Proposition 13 property tax revenue growth tends to be less than both inflation and the longer-term growth rate of employee compensation due to pension costs and minimum wage increases. Fortunately, in times of economic uncertainty, property tax provides a reliable and steady cash flow and the District’s shortterm financial health is strong.

Personnel costs represent more than 50% of District operating costs accounting for reimbursements to the City for maintenance services. With its primary revenue source not expected to keep pace with inflationary expenditure growth in the coming years, the District must continue to take measures to ensure its long-term fiscal sustainability. In addition to regularly updating fees, the District must optimize operations; leverage revenue generating assets; and add non-property tax revenues.

Strengthening its financial condition is particularly important to enable the District to fund future facility and park improvements. Current revenues are sufficient to pay for operations and some capital projects (including the annual repayment associated with the reconstruction of Arnold Cypress Park) but are insufficient to provide for future major rehabilitation.

District Expenditures
The District Budget is $10.2 million, which is $26.7 million less than FY 2023-24 due to Arnold Cypress Park rehabilitation project. Personnel costs increase 9.8%, reflecting the ongoing impact of minimum wage increases, higher pension costs, negotiated/anticipated salary increases, and several new employees moving through their salary ranges.

While maintenance and operations expenditures remain flat when compared to FY 2023- 24, the previous year incorporated large increases for contract services caused by inflation, the tightening labor market, and higher material and equipment costs.

District Capital Improvement Projects
The FY 2023-24 Amended Budget includes $33.5 million for the reconstruction of Arnold Cypress Park. This project is funded by a loan from the City’s Infrastructure Fund and, starting in FY 2024-25, will be repaid by the District using $2 million of additional annual property tax revenues.

Future capital projects will be prioritized based on the facilities inventory and condition assessment and the availability of resources. New FY 2024-25 CIP projects are programmed at a modest level due to the significant commitment to Arnold Cypress Park, and are summarized and discussed in the FY 2024-25 Proposed Budget.

CONCLUSION
The FY 2024-25 Proposed Budget funds a strong municipal corporation and a remarkable group of employees. I am enormously proud of Team Cypress’ service to our community and have immense confidence in our ability to respond to challenges.

The City Council’s long-standing practice of strategically investing limited resources has Cypress well prepared for whatever lies ahead – assuming we continue our constrained approach to municipal operations and focus on core services.

The FY 2024-25 Proposed Budget embodies the City Council’s dedication to careful and transparent financial management. This commitment spans generations of Cypress City Councils and is the most important way we sustain the community’s success, political stability, skilled leadership, and partnership with our employees.

I would like to express my appreciation to our department Directors for their efforts to deliver quality services to our community and to support the City Council as it delivers on the City’s Mission Statement:

Cypress is a safe and welcoming community delivering excellent services for our residents, neighborhoods, and businesses.

It is a tremendous honor to be Cypress’ City Manager and I look forward to beginning a second decade of service to our wonderful community from solid financial footing in FY 2024-25.

Peter Grant
City Manager
FY 2024-25 PROPOSED BUDGET

DECISION PACKAGES
The Budget Decision Packages proposed for FY 2024-25, summarized below, describe significant recommended Budget changes. The individual Decision Packages are attached and present a more detailed justification for each recommendation, and summarize their impacts. The City Council may approve, deny, change or add individual Decision Packages as long as the budget remains balanced.

One-Tme Ongoing
Cost (Savings) Cost (Savings)
ADM 1 Reallocation of Personnel Resources to
Contract Services
General/Print Shop $ - $ (60,000)
ADM 2 City Council and City Manager Team
Building
General 30,000 -
ADM 3 Biennial Citizens Academy General (5,000) (2,500) PW 1 Public Works Organizational Review General 75,000 - PW 2 Succession Planning General 115,000 -
PW 3 Traffic Improvement Fee Study General 80,000 -
PW 4 Sorrento Landscaping Pilot Project Infrastructure 20,000 - Total All Funds $ 315,000 $ (62,500)
# Subject Fund