Fountain Valley City Council
February 1, 2022

AGENDA

CITY COUNCIL/ SUCCESSOR

AGENCY TO THE FOUNTAIN

VALLEY AGENCY

FOR COMMUNITY DEVELOPMENT/

FOUNTAIN VALLEY HOUSING AUTHORITY
Closed Session 5:15 p.m.

Regular Meeting 6:00 p.m.

Tuesday, February 1, 2022
Council Chambers
10200 Slater Avenue
Fountain Valley, CA 92708
http://www.fountainvalley.org
MEETING ASSISTANCE: In compliance with the Americans with Disabilities Act, anyone needing special assistance to participate in a meeting of the government bodies listed herein should contact the City Clerk’s Office at (714) 593-4445. Notification 72 hours prior to the meeting allows the City to make reasonable arrangements to ensure accessibility to the meeting.

AGENDA COMMUNICATIONS: All revised or additional documents and writings related to an item on this agenda provided to all or a majority of the government body members after distribution of the agenda packet, are available for public inspection (1) in the City Clerk’s Office at 10200 Slater Avenue, Fountain Valley, CA 92708 during normal business hours; and (2) in the Council Chambers at the time of the meeting. Unless directed otherwise by a government body listed herein all actions shall be based on/memorialized by the latest document submitted as a late communication.

PUBLIC COMMENTS/PUBLIC HEARINGS: Persons wishing to address the Cit y Counci lor other government body listed complete a speaker card and give it to the City Clerk prior to the public comment period. Requests to speak will not be accepted after the public comment session begins without permission of the Mayor/Chair. Speakers must limit remarks to a total of (3) three minutes and address the City Council through the Mayor. Comments to individuals or staff are not permitted. Scheduled Matters, including Public Hearings: Indicate on the card what item you want to address. Unscheduled Matters: Indicate on the card what subject matter you want to address. Comments must be related to issues that are within the jurisdiction of the governing body listed on the agenda. Pursuant to the Brown Act, the governing body may not enter into discussion regarding items not on the agenda.

CONSENT CALENDAR: All matters listed under the Consent Calendar are considered by the governing bodies listed herein to be routine and will be enacted on simultaneously with one motion without discussion unless separate action and/or discussion is requested by a governing body member, staff, or a member of the public.

PUBLIC HEARINGS: Persons wishing to speak in favor of or in opposition to a proposal are given an opportunity to do so during the public hearing. Those wishing to address a governing body during the hearing are requested to complete the speaker card and submit it to the City Clerk prior to the hearing. If a proposed action is challenged in court, there may be a limitation to raising only those issues raised during the hearing or in written correspondence received by the governing body at or before the hearing.

Note: The Fountain Valley City Council serves as the Successor Agency to the Fountain Valley Agency for Community Development (Successor Agency), the Fountain Valley Housing Authority, and the Fountain Valley Finance Authority. The Actions of the Successor Agency are separate and apart from the actions of the City Council.

ZOOM LINK INFORMATION
• Participants that choose to watch the City Council meeting through zoom are automatically placed in the waiting room and will only be allowed into the Zoom meeting if they request to make a public comment. In order to make a public comment, you will indicate through the chat feature which item you would like to speak on, and click on the “raise hand” icon to let the administrator know you wish to speak. • All participants are muted unless you are requesting to speak, at which time you will be allowed to unmute and make you comment.
• All public comments are allowed up to 3 minutes to speak.

City of Fountain Valley is inviting you to a scheduled Zoom meeting.

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Time: Feb 1, 2022 05:00 PM Pacific Time (US and Canada) Join Zoom Meeting
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CLOSED SESSION
CALL TO ORDER 5:15 p.m.

PUBLIC COMMENTS (Closed Session matters only)
Persons wishing to speak on a Closed Session matter are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period.
• CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: City Water Tank Property Adjacent to the 405-Freeway Agency negotiator: City Manager, Deputy City Manager, Director of Planning and Building, Finance Director, Attorney for the City
Negotiating parties: City of Fountain Valley and Becker Boards, LLC; Clear Channel Outdoor, LLC, Foster Interstate; Outdoor Associates, LLC and Outfront Media, LLC Under negotiation: Price and terms of payment
• CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code §54957.6.

Agency Designated Representatives: City Manager, Rob Houston; Finance Director, Jennifer Lampman; Budget Manager, Shannon Espinoza; Human Resources Director, Carrie Hanes; Principal Human Resources Analyst, Tania Knauerhaze; Attorney for the City.

Employee Organizations: Police Officers' Association (POA), Police Officers' Management Unit (POMU), Fountain Valley Firefighters Association (FVFA), Individually Represented Battalion Chiefs (BCs)

OPEN SESSION
CALL TO ORDER 6:00 p.m.

INVOCATION
SALUTE TO THE FLAG Mayor Pro Tem Kim Constantine

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY/ ROLL CALL Council Members: Bui, Grandis, Vo, Mayor Pro Tem/Vice Chair Constantine, Mayor/Chair Harper

ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS

CITY MANAGER/MAYOR UPDATE

PRESENTATIONS
• Presentation by SIFI Fiber Optic Company
• City of Kindness Award presented to Kellie Hopkins
• Fountain Valley Little League update - Presented by FVLL President Erik Duffy PUBLIC COMMENTS (Scheduled Matters Only)
Persons wishing to speak on Agenda item(s) are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period. Each person will be given up to 3 minutes to speak on the entire Consent Calendar, 3 minutes to speak on each item pulled from the consent calendar, and 3 minutes to speak on any agendized item(s) not appearing on the Consent Calendar.

CONSENT CALENDAR
Consent Calendar Items 1-4 will be approved simultaneously with one motion, unless separate action/or discussion is requested.

1. Receive and File the Draft Minutes of the January 18, 2022 Regular City Council Meeting

2. Waive Bidding Requirements per Municipal Code 2.36.070(2) and Approve an Agreement with GovInvest to Provide Licensing of Analytical Software and Consulting Services for the City's Unfunded Actuarial Liability (UAL) Funding Strategy Page 12 Waive Bidding Requirements per Municipal Code 2.36.070(2) and Approve an Agreement with GovInvest to Provide the City with the Use of Software for the Labor, Other Post-Employment Benefits, and Pension Liabilities Modules in the Amount of $60,000 for two (2) Years.

3. Frontier Citywide Fiber Optic installation

1. Accept a Fee Proposal from Annealta for $80,600 for Plan Checking, Construction Management and Inspection Services for Frontier’s City-wide Fiber Optic Installation Plan

2. Amendment of FY 2020/21 General Fund Budget in the amount of $80,600 Page 32 Accept a Fee Proposal from Annealta for $80,600 for Plan Checking, Construction Management and Inspection Services for Frontier’s City-wide Fiber Optic Installation Plan and; amend the appropriate revenue and expense accounts in the FY 2021/22 General Fund Budget in the amount of $80,600. (* Note: The fee is pro-rated for the remaining fiscal year.)

4. Accept a Fee Proposal from Interwest for $137,255 for Construction Management Support Services on Various Facility Projects and Authorize Staff to Issue a Purchase Order for the Interwest On-Call Contract Page 82
Accept the fee proposal from Interwest for $137,255 for construction management support services on various facility projects and authorize Staff to issue a purchase order for the Interwest On-Call Contract.

PUBLIC HEARINGS
Each person will have up to 3 minutes to speak on each Public Hearing.

5. Public Hearing and Introduction: Code Amendment No. 21-05 – An Amendment to Create Alternative Hotel Development Standards that Encourage Quality Hotel Development Presentation by Steven Ayers, Principal Planner Page 139 Staff recommends that the City Council approve the introduction and first read of Code Amendment No. 21-05 and adopt a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) to amend the Fountain Valley Municipal Code (FVMC) Section 21.10.040 Table 2-7, Section 21.22.040 Table 3-3, and adding Section 21.10.080 Alternative Hotel Development Standards to include alternative standards that encourage quality hotel development.

ADMINISTRATIVE ITEMS

6. Amendment to the "Hop On!" Senior Transportation Program Passenger Fare Presentation by Rob Frizzelle, Community Services Director Page 155 Approve an amendment to the Hop On! senior transportation program lowering the per trip passenger fare to $2.00

7. Approve Allocating the City's Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Allotment of $7,952,893 Distributed Under the American Rescue Plan Act (ARPA) to Fund Government Services Presentation by Jennifer Lampman, Finance Director

Approve Allocating the City's Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Allotment of $7,952,893 Distributed under the American Rescue Plan Act to Fund Government Services, Specifically Public Safety Personnel Expenses and Authorize the Finance Director to Comply with all Reporting Requirements Outlined by the Treasury Department.

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION

CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Persons wishing to speak on an unscheduled matter are requested to identify themselves by completing a blue speaker and to give the card to the City Clerk. Each person will have up to 3 minutes to speak. The City Clerk will call upon those that wish to speak.

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AB 1234/GENERAL

COMMENTS

ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR

AGENCY/HOUSING AUTHORITY
The next Regular Meeting of the Fountain Valley City Council is February 15, 2022 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.

MINUTES OF THE

CITY COUNCIL/ SUCCESSOR AGENCY TO THE FOUNTAIN

VALLEY AGENCY

FOR COMMUNITY DEVELOPMENT/ FOUNTAIN VALLEY

HOUSING AUTHORITY
Closed Session 4:30 p.m.

Study Session 5:00 p.m.

Regular Meeting 6:00 p.m.

Tuesday, January 18, 2022
Council Chambers

CLOSED SESSION
CALL TO ORDER 4:30 p.m.

PUBLIC COMMENTS (Closed Session matters only)
 PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Title: City Manager
There was no reportable Action
 CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: 17565 & 17569 Los Alamos Street, Fountain Valley, CA 92708 Agency Negotiators: City Manager, Attorney for the City, Director of Community Services Negotiating Parties: City of Fountain Valley and Boys and Girls Club Under negotiation: Price and Terms of Payment Council Member Glenn Grandis left the room and did not participate in this closed session discussion.

There was no reportable action
 CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code §54957.6.

Agency Designated Representatives: City Manager, Rob Houston; Finance Director, Jennifer Lampman; Budget Manager, Shannon Espinoza; Human Resources Director, Carrie Hanes; Principal Human Resources Analyst, Tania Knauerhaze; Attorney for the City, Colin Burns.

Employee Organizations: Police Officers' Association (POA), Police Officers' Management Unit (POMU), Fountain Valley Firefighters Association (FVFA), Individually Represented Battalion Chiefs (BCs)
No reportable action

STUDY SESSION
CALL TO ORDER 5:00 p.m.

PUBLIC COMMENTS (Study Session matters only)
 2022 Special Events Opportunities – Presented by Rob Frizzelle, Community Services Director Rob Frizzelle presented the City Council with a list of additional special events for 2022.

OPEN SESSION
CALL TO ORDER 6:00 p.m.

INVOCATION Mayor Patrick Harper
SALUTE TO THE FLAG Council Member Glenn Grandis

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY/ ROLL CALL Council Members: Bui, Grandis, Vo, Mayor Pro Tem/Vice Chair Constantine, Mayor/Chair Harper All members were present

CITY MANAGER / MAYOR UPDATES
City Manager Rob Houston provided an update to the City Council on recent events within the city.

ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS
There were no announcements

PRESENTATIONS
 City of Kindness Awards presented to Judy Aoki
Mayor Harper recognized Judy Aoki for her work.
 Presentation from Frontier Communications
Frontier Communications Representatives spoke about the need and plans for Fiber Optic lines within the city.

FIRST CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Leston Trueblood, Brian Genovese, Erik Scheuman, David Rodecker, Bill Madden and William Tran

CONSENT CALENDAR
Consent Calendar Items 1 – 8 were approved simultaneously.

1. Receive and File the Draft Minutes of the December 21, 2021 Regular City Council Meeting ACTION: Move to Receive and File the Draft Minutes of the December 21, 2021 Regular City Council Meeting
MOTION: Grandis SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

2. Approve a Professional Services Agreement with HdL Companies (HdL) for a Term of Three Years with Two (2) Optional One (1) Year Extensions and; Approve a Resolution Authorizing Designated Individuals Authorized to Review Sales or Transactions Tax Data from the California Department of Tax and Fee Administration (CDTFA)
ACTION: Move to Approve a Professional Services Agreement with HdL Companies (HdL) for a Term of Three Years with Two (2) Optional One (1) Year Extensions and; Approve a Resolution Authorizing Designated Individuals Authorized to Review Sales or Transactions Tax Data from the California Department of Tax and Fee Administration (CDTFA)
MOTION: Grandis SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

3. Approve a Resolution Supporting Federal PFAS Legislation that Protects the Ratepayers and Water Agencies
ACTION: Move to Approve a Approve a Resolution Supporting Federal PFAS Legislation that Protects the Ratepayers and Water Agencies
MOTION: Grandis SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None

ABSENT: None
ABSTAIN: None

4. Agreement between the City of Fountain Valley and the City of Anaheim for (UASI) Grant Participation
ACTION: Move to Approve an Agreement between the City of Fountain Valley and the City of Anaheim for (UASI) Grant Participation
MOTION: Grandis SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

5. Approve Amendment No. 1 to the Professional Services Agreement with Davis Farr, LLP to Provide Financial Statement Audit Services for Fiscal Year Ending June 30, 2022 ACTION: Move to Approve an Amendment No. 1 to the Professional Services Agreement with Davis Farr, LLP to Provide Financial Statement Audit Services for Fiscal Year Ending June 30, 2022
MOTION: Grandis SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

6. Approve a First Amendment to the Agreement with Vincent Benjamin Group for Temporary Employee Staffing Services
ACTION: Move to Approve a First Amendment to the Agreement with Vincent Benjamin Group for Temporary Employee Staffing Services
MOTION: Grandis SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

7. Second Reading and Adoption of an Ordinance approving Code Amendment No. 21-04 – An Amendment To Fountain Valley Municipal Code (FVMC) Section 21.10.030 Table 2-6 To Eliminate The Conditional Use Permit (CUP) Requirement For Automated Teller Machines (ATM’s) And

Allow ATM’s By Right In All Commercial And Manufacturing ACTION: Move to Approve the Second Reading and Adoption of an Ordinance approving Code Amendment No. 21-04 – An Amendment To Fountain Valley Municipal Code (FVMC) Section 21.10.030 Table 2-6 To Eliminate The Conditional Use Permit (CUP) Requirement For Automated Teller Machines (ATM’s) And Allow ATM’s By Right In All Commercial And Manufacturing
MOTION: Grandis SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

8. Highway Safety Improvement Program (HSIP) for Traffic Signal Modification Improvements for Eight (8) Intersections:
1) Accept the Bids and Award a Construction Contract to International Line Builders, Inc. for $2,112,932;
2) Accept a $207,504 Fee Proposal from Psomas for Construction Engineering/Management and Inspection Services and Authorize Staff to a Purchase Order for the Psomas On-Call Contract;
3) Approve Amendment No. 3 to AGA Engineers (Contract CON 20-31) for $16,912 for Continued Engineering Design Services and HSIP Federal Grant Assistance; and 4) Approve a Budget Amendment of the Fiscal Year 21/22.

ACTION: Move to Approve the Highway Safety Improvement Program (HSIP) for Traffic Signal Modification Improvements for Eight (8) Intersections
MOTION: Grandis SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

PUBLIC HEARINGS
Each person will have up to 3 minutes to speak on each Public Hearing.

9. Public Hearing and Introduction: Code Amendment No. 21-05 – An Amendment to Create Alternative Hotel Development Standards that Encourage Quality Hotel Development –
Item number 9 was continued to the February 1, 2022 Regular City Council Meeting by Acclamation.

ADMINISTRATIVE ITEMS

10. Approve an Employment Contract for the Interim Planning and Building Director David Crabtree, as a Retired Annuitant
Interim Planning and Building Director David Crabtree left the city council meeting as this item was being discussed.

ACTION: Move to Approve an Employment Contract for the Interim Planning and Building Director David Crabtree, as a Retired Annuitant
MOTION: Grandis SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION
None

CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
None
CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AB 1234/GENERAL COMMENTS Council Member Bui
January 11 Attended the Chop Stop Ribbon Cutting Ceremony January 13 Participated in the FVSD Superintendent Search Input Session January 15 Attended the TET Parade Fundraising
Council Member Vo
Wished everyone at home a Happy New Year

Council Member Grandis
January 11 Attended the Chop Stop Ribbon Cutting Ceremony January 12 Attended the PCTA Budget Sub Committee meeting Mayor Pro Tem Constantine
January 4 Was sworn in via Zoom for a multi-year term as the City of Fountain Valley’s Trustee to OC Vector Control.

January 6 Participated in the FV Advisory Committee for Persons with Disabilities via Zoom.

January 11 Watched the OC Board of Supervisors Meeting on the County’s website, then attended the Chop Stop Ribbon Cutting / Grand Opening.

January 13 Participated in the FVSD Superintendent Search Input Session, then participated in the OC Vector Control Special Meeting via Zoom.

January 18 Watched the County of Orange Press Conference on Facebook Live.

Mayor Harper
January 10 Attended the OCTA Board Meeting
January 12 Attended the OCTA Finance Sub Committee meeting

ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR AGENCY/HOUSING

AUTHORITY

Mayor Harper adjourned the meeting at 7:06 pm to the next Meeting of the Fountain Valley City Council on February 1, 2022 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.
________________________________________________________________________________________________________________________________ Patrick Harper, Mayor
Attest:
___________________________
Rick Miller, City Clerk

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: February 1, 2022
Members of the City Council
SUBJECT: Waive bidding Requirements per Municipal Code 2.36.070 (2) and Approve an Agreement with GovInvest to provide Licensing of Analytical Software and Consulting Services for the City’s Unfunded Actuarial Liability (UAL) Funding Strategy EXECUTIVE SUMMARY:

As part of the City’s goal of achieving fiscal stability in accordance with the Twenty-Year Financial Plan, City Council directed staff to present a funding strategy to accelerate payment of the City’s unfunded actuarial liability (UAL). The recommended actions will further the City’s strategic plan goals of developing a long-term plan to address the City’s unfunded pension obligations. The City’s UAL funding strategy is an important and integral part of the City’s Measure HH Responsible Spending Pledge and Twenty-Year Financial Plan, to pay off all debt and to have a balanced operating budget in year 2037 when Measure HH sunsets.

DISCUSSION:

The City currently contracts with GovInvest for the licensing of analytical software for labor costing analysis to help make decisions to assess the long-term fiscal sustainability for the City as a result of proposed and upcoming labor negotiations, including the current classification and compensation study. GovInvest currently offers two additional modules for both pension and OPEB analysis to support efficient management and transparency of the budget and strategize the paying down of the unfunded actuarial liability for the City’s pension and other post-employment benefits (OPEB liabilities).

To help determine the most advantageous decisions for labor costing, pension forecasting and budget monitoring and to determine the most efficient way to pay down the City’s unfunded liability obligations, the City is looking to expand the current GovInvest contract to acquire the additional pension and OPEB modules to provide real-time analysis of the City’s unfunded liabilities. The contract also includes consulting support from the GovInvest team who will act as an extension of the City’s Finance team for purposes of making recommendations on the most effective way to allocate funding methodologies, such as contributions to the City’s Section 115 trust or additional discretionary payments to CalPERS.

GovInvest UAL Funding Strategy contract
February 1, 2022

GovInvest is set up to support the City in presentations with detailed analysis around an array of topics and strategies with the labor, pension and OPEB software. Acting as either a consultant or project manager, GovInvest’s experienced team of pension and OPEB consultants assist on all three technology platforms. GovInvest is the Sole provider of this level of functionality, reporting, experience and support. The products capability will dive into the City’s demographics of qualified employees, retirees, and their beneficiaries; benefit information; and actuarial assumptions, such as investment return, discount rate, actual salary growth or workforce changes or paydown strategy varying to that of what CalPERS has set at a minimum for the City’s required annual contribution.

The pension actuarial study provided by CalPERS annually is based on two-year old data.

GovInvest will provide more up-to-date information based on recent CalPERS changes such as the newly adopted actuarial assumptions as part of the Asset Liability Management (ALM) study, which will provide greater projection and drill-down capability and allow the City to complete real-time indepth analysis to be used for sound policy development, funding analysis, and more fiscally sustainable budgeting. Using the labor software and the pension and OPEB actuarial software in combination for analytics and decision making will address long term financial decisions related to salaries, total pay, benefits, funding/policy development and will provide the City the best resources, time savings and support to continue focusing on our critical functions, such as enhancing the culture and environment of “A Nice Place to Live” and attracting and retaining quality staff by optimizing pays and benefits in accordance with the city’s long range financial plan.

Currently, 300 agencies in California utilize GovInvest software and consultant services, and benefit from on-going consulting support and interactive visualizations, allowing decision-makers to adjust the assumptions and variables to stress-test different scenarios, provide cost projections, and include additional key metrics that help to form context for finding solutions to paying down unfunded liabilities or managing cost in real-time. Sample pension and OPEB analysis and support include:

1. Funding policy development

2. 1v1 actuarial consultations

3. Amortization paydown analysis

4. Stress testing market impacts

5. Budget assessment

6. Negotiations support

7. Staff training, Council Updates and Transparency Initiatives

8. Presentation and analysis support
In addition to providing the software, GovInvest, also includes the bi-annual OPEB (GASB 75) actuarial valuation, which the City can elect to purchase from GovInvest at a later date.

Due to the unique combination of technical software and specialized knowledge of the consultants, staff is recommending a two year agreement with GovInvest for labor costing, pension and OPEB

GovInvest UAL Funding Strategy contract
February 1, 2022

analysis. Staff will work with GovInvest consultants to prepare a presentation on pension debt funding strategies to the City Council in March, 2022.

FINANCIAL ANALYSIS:

GovInvest software is a proprietary product that does not have a present competitor. The proposed term of the agreement is two years, with options to renew.

The current annual fee structure includes:
 Labor Software: $13,000
 Pension Software: $10,000
 OPEB Software: $7,000
$30,000/ year
There is sufficient funding in the Finance Department budget to support this agreement.

ALTERNATIVES:

Alternative No. 1: Waive bidding requirements per municipal code 2.36.070 (2) and approve a contract in the amount of $30,000 with GovInvest to fund the Council’s strategic goal of achieving fiscal stability in accordance with the 20-year plan.

Alternative No. 2: Do not accept the proposal. This is not recommended as GovInvest has the tools and consulting ability to make and provide sound financial decisions from its dedicated pension experts.

RECOMMENDATION:

Staff recommends City Council waive bidding requirements per municipal code 2.36.070 (2) and approve an agreement with GovInvest to provide the City with the use of the software for the labor module, other post-employment benefits, pension liabilities modules, and future preparation of the GASB 75 actuarial valuation reports, in the amount of $60,000 for a period of two (2) years.

ATTACHMENTS:

Actuarial Services and Technology Licensing Agreement
Prepared by: Shannon Espinoza, Budget Manager
Reviewed by: Jennifer Lampman, Director of Finance/Treasurer Approved by: Rob Houston, City Manager

GovInvest UAL Funding Strategy contract
February 1, 2022

Re: Sole Source Letter
To: City of Fountain Valley, CA
Jennifer Lampman, Finance Director
Shannon Espinoza, Budget Manager
City of Fountain Valley
10200 Slater Avenue
Fountain Valley, CA 92708
Dear City of Fountain Valley,
This letter serves as a sole source document for products developed by GovInvest Inc.

This letter confirms as owners and developers that the software suite including the Total Liability Calculator software application that features Pension Module of the Total Liability and the Retiree Medical “OPEB” software along with the powerful GovInvest Labor Costing Module are distributed solely by GovInvest Inc.

No other vendor develops or distributes similar software applications which have the same or equal functionality as the Pension, OPEB and Labor Costing custom software platforms.

The Labor Costing module presents a custom dashboard that instantly costs out proposals by bargaining unit down to the individual employee level. The software analyzes all employee costs by every type of pay and benefit package alongside census information to provide interactive visualizations and reporting to better understand the fiscal impact of a proposal down to the department level, job type, fund and other reporting demographics during costing and negotiations or budgeting. The software also streamlines operations and validates costing at the bargaining table by creating transparency and understanding as well as effective position budgeting and benchmarking against comparable agencies.

No division of GovInvest Inc., nor any other company, develops and distributes comparable software products with the same functionality as the GovInvest Total Liability Calculator for Pension and OPEB or the Labor Costing Module. There are no other agents or dealers authorized to represent these products or our technology solutions. These products must be purchased directly from GovInvest Inc.

Please let me know if you need further details.

Sincerely,
Ted Price
CEO, Co-founder
GovInvest Inc.
1230 Rosecrans Ave, St 300 PMB 754
Manhattan Beach, CA 90266

City of Fountain Valley, CA
Actuarial Services and Technology
Licensing Agreement

SaaS Licensing Agreement
Attention: City of Fountain Valley, CA
Prepared by: Jason Huk
Date: January 19th, 2022

City of Fountain Valley, CA
Actuarial Services and Technology
Licensing Agreement

MASTER SERVICE AGREEMENT
This Master SaaS Services Agreement (“Agreement”) is entered into on this1 day of February, 2022 (the “Effective Date”) between GovInvest, Inc. (“Company”), and the Customer listed above (“Customer”).

This Agreement includes and incorporates each Summary of Services and Implementation, the attached Terms and Conditions and contains, among other things, warranty disclaimers, liability limitations and use limitations. There shall be no force or effect to any different or additional terms of any purchase order, confirmation or similar form, even if signed by the parties before or after the date hereof.

GovInvest Inc. City of Fountain Valley, CA
By: ______________________________ By: _______________________________ Name: ___________________________ Name: Patrick Harper
Title: ____________________________ Title: Mayor, City of Fountain Valley Date: ____________________________ Date: _____________________________

TERMS AND CONDITIONS

1. SAAS SERVICES AND SUPPORT

1.1 Company shall provide the services identified in the Services section of each Summary of Services and Implementation (as defined below) attached to this Agreement (the “Services”)

1.2 Customer and Company shall mutually agree upon the Services to be performed by Company under this Agreement in a written summary of services and implementation (each, a “Summary of Services and Implementation”), in the form attached hereto as Exhibit A. Each Summary of Services and Implementation shall be attached to this Agreement as a sequentially numbered exhibit, and shall expressly be deemed incorporated into this Agreement and subject to all the terms and conditions set forth herein, except as otherwise set forth in the applicable Summary of Services and Implementation. In the event of any conflict between this Agreement and a Services and Implementation, such Services and Implementation shall govern.

1.3 The initial Summary of Services and Implementation is hereto as Schedule 1.

1.4 Subject to the terms of this Agreement, Company will use commercially reasonable efforts to provide Customer the Services in accordance with the Service Level Terms attached hereto as Exhibit B. As part of the registration process, Customer will identify an administrative username and password for Customer’s account. Company reserves the right to refuse registration or cancel passwords it deems inappropriate.

1.5 Subject to the terms hereof, Company will provide Customer with reasonable technical support services in accordance with the terms set forth in Exhibit C.

2. RESTRICTIONS AND RESPONSIBILITIES

2.1 Customer will not, directly or indirectly; reverse engineer, decompile, disassemble or otherwise attempt to discover the source code, object code or underlying structure, ideas, know-how or algorithms relevant to the Services or any software, documentation or data related to or used to provide the Services (“Software”); modify, translate, or create derivative works based on the Services or any Software (except to the extent expressly permitted in writing by Company or authorized within the Services); use the Services or any Software for timesharing or service bureau purposes or otherwise for the benefit of a third party; or remove any proprietary notices or labels.

Jason Huk
Sr. Director of Sales
Jan. 25th 2022

City of Fountain Valley, CA
Actuarial Services and Technology
Licensing Agreement

2.2 Further, Customer shall not export or re-export, either directly or indirectly, the Software or any copies thereof in such manner as to violate the export laws and regulations of the United States or any other applicable jurisdiction in effect from time to time (including, without limitation, when such export or re-export requires an export license or other governmental approval without first obtaining such license or approval). Without limiting the foregoing, Customer shall not permit any third parties to access or use the Services in violation of any United States export embargo, prohibition, or restriction.

2.3 Customer hereby agrees to indemnify and hold harmless Company against any damages, losses, liabilities, settlements and expenses (including without limitation costs and attorney’s fees) in connection with any claim or action that arises from Customer’s failure to comply with the terms of this Agreement or otherwise from Customer’s use of Services. Although Company has no obligation to monitor Customer’s use of the Services, Company may do so. Company reserves the right, in its sole discretion, to prohibit or suspend Customer’s use of the Services at any time Company believes such use to be in violation of this Agreement or otherwise harmful to the Service.

2.5 Customer shall be responsible for obtaining and maintaining any equipment and ancillary services needed to connect to, access or otherwise use the Services, including, without limitation, modems, hardware, servers, software, operating systems, networking, web servers and the like (collectively, “Equipment”). Customer shall also be responsible for maintaining the security of the Equipment, Customer account, passwords (including but not limited to administrative and user passwords) and files, and for all uses of Customer account or the Equipment with or without Customer’s knowledge or consent.

3. CONFIDENTIALITY; PROPRIETARY RIGHTS

3.1 One party (the “Receiving Party”) understands that the other party (the “Disclosing Party”) has disclosed or may disclose business, technical or financial information relating to the Disclosing Party’s business (hereinafter referred to as “Proprietary Information” of the Disclosing Party).

Proprietary Information of Company includes non-public information regarding features, functionality and performance of the Service. Proprietary Information of Customer includes nonpublic data (“Customer Data”) provided by Customer to Company to enable the provision of the Services. The Receiving Party agrees: (i) to take reasonable precautions to protect such Proprietary Information, and (ii) not to use (except in performance of the Services or as otherwise permitted herein) or divulge to any third party any such Proprietary Information. The Disclosing Party agrees that the foregoing shall not apply with respect to any information after five (5) years following the disclosure thereof or any information that the Receiving Party can document (a) is or becomes generally available to the public, without any action by, or involvement of, the Receiving Party or (b) was in its possession or known by it prior to receipt from the Disclosing Party, or (c) was rightfully disclosed to it without restriction by a third party, or (d) was independently developed without use of any Proprietary Information of the Disclosing Party or (e) is required to be disclosed by law. The Receiving Party acknowledges that in the event of a breach of Section 3.1 by the Receiving Party, substantial injury could result to the Disclosing Party and money damages will not be a sufficient remedy for such breach. Therefore, in the event that the Receiving Party engages in, or threatens to engage in, any act which violates Section 3.1, the Disclosing Party will be entitled, in addition to all other remedies which may be available to it under law, to seek injunctive relief (including, without limitation, temporary restraining orders, or preliminary or permanent injunctions) and specific enforcement of the terms of Section 3.1. The Disclosing Party will not be required to post a bond or other security in connection with the granting of any such relief.

City of Fountain Valley, CA
Actuarial Services and Technology
Licensing Agreement

3.2 Company shall own and retain all rights, title and interest in and to: (i) the Services and Software, together with all improvements, enhancements, modifications, changes, translations, compilation, and derivative works thereto, (ii) any software, applications, inventions or other technology developed in connection with Implementation Services or support, (iii) any analytics generated through Customer’s use of the Services, including but not limited to, any data, materials, information, and reports (“Analytics”) and (iv) all intellectual property rights related to any of the foregoing. Company hereby grants Customer a non-exclusive, non-transferable and nonsublicensable license to access and use the Analytics.

3.3 Notwithstanding anything to the contrary, Company shall have the right to collect and analyze data and other information relating to the provision, use and performance of various aspects of the Services and related systems and technologies (including, without limitation, information concerning Customer Data and data derived therefrom), and Company will be free (during and after the term hereof) to: (i) use such information and data to improve and enhance the Services and for other development, diagnostic and corrective purposes in connection with the Services and other Company offerings, (ii) disclose such data solely in aggregate or other de-identified form in connection with its business, and (iii) disclose, share, license, or resell Analytics to third parties for consideration. No rights or licenses are granted except as expressly set forth herein.

4. PAYMENT OF FEES

4.1 Customer will pay Company the then applicable fees described in the applicable Summary of Services and Implementation in accordance with the terms therein (the “Fees”). If Customer’s use of the Services exceeds the Service Capacity set forth in the applicable Summary of Services and Implementation or otherwise requires the payment of additional fees (per the terms of this Agreement), Customer shall be billed for such usage and Customer agrees to pay the additional fees in the manner provided herein. Company reserves the right to change the Fees or applicable charges and to institute new charges and Fees at the end of the Initial Term or then current Renewal Term, upon thirty (30) days prior notice to Customer (which may be sent by email). If Customer believes that Company has billed Customer incorrectly, Customer must contact Company no later than 60 days after the closing date on the first billing statement in which the error or problem appeared, in order to receive an adjustment or credit. Inquiries should be directed to Company’s customer support department.

4.2 Company may choose to bill through an invoice, in which case, full payment for invoices issued in any given month must be received by Company thirty (30) days after the mailing date of the invoice. Unpaid amounts are subject to a finance charge of 5% per month on any outstanding balance, or the maximum permitted by law, whichever is lower, plus all expenses of collection and may result in immediate termination of Service. Customer shall be responsible for all taxes associated with Services other than U.S. taxes based on Company’s net income.

4.3 Company will charge additional fees, which are set at $250/hour, if, after the Effective Date, Customer: (i) changes its actuarial assumptions provided to Company, (ii) changes actuaries, (iii) provides Company with data that differs from the initial data provided by Customer to the Company, (iv) changes benefit structures, (v) adds additional tiers to its benefits plan, or (vi) merges with another plan.

4.5 Company may incur business license fees that are mandated by Customer. Customer agrees to reimburse Company for said fees.

4.6 Company may incur costs for adding Customer as additional insured to Company’s existing insurance policies in order to comply with Customer’s insurance requirements. Customer agrees to reimburse Company for said costs.

City of Fountain Valley, CA
Actuarial Services and Technology
Licensing Agreement

4.7 Company may incur costs for providing a waiver of subrogation in relation to Company’s existing insurance policies in order to comply with Customer’s insurance requirements. Customer agrees to reimburse Company for said costs.

5. TERM AND TERMINATION

5.1 Subject to Section 5.3, this Agreement shall commence on the Effective Date and continue for one (1) year (“Initial Term”), and thereafter shall renew for successive additional one (1) year renewal terms (each a “Renewal Term”), unless either party to this Agreement notifies the other in writing at least thirty (30) days prior to the end of the then-current Term that it does not wish to so renew.

The Initial Term and any Renewal Terms are collectively referred to herein as the “Term.”

5.2 Each Summary of Services and Implementation shall be effective upon the date set forth in such Summary of Services and Implementation and continue the end of the then current Term, and thereafter shall renew for successive additional one (1) year renewal terms, unless either party to this Agreement notifies the other in writing at least thirty (30) days prior to the end of the thencurrent Term that it does not wish to so renew.

5.3 In addition to any other remedies it may have, either party may terminate this Agreement and/or any Summary of Services and Implementation upon thirty (30) days written notice (or without notice in the case of nonpayment), if the other party materially breaches any of the terms or conditions of this Agreement or such Summary of Services and Implementation. Customer will pay in full for the Services up to and including the last day on which the Services are provided.

All sections of this Agreement and the Summary of Services and Implementation which by their nature should survive termination will survive termination, including, without limitation, accrued rights to payment, confidentiality obligations, warranty disclaimers, and limitations of liability.

6. WARRANTY AND DISCLAIMER
Company shall use reasonable efforts consistent with prevailing industry standards to maintain the Services in a manner which minimizes errors and interruptions in the Services and shall perform the Implementation Services in a professional and workmanlike manner as expressed in Exhibit D. Services may be temporarily unavailable for scheduled maintenance or for unscheduled emergency maintenance, either by Company or by third-party providers, or because of other causes beyond Company’s reasonable control, but Company shall use reasonable efforts to provide advance notice in writing or by e-mail of any scheduled service disruption. However, Company does not warrant that the Services will be uninterrupted or error free; nor does it make any warranty as to the results that may be obtained from use of the Services. EXCEPT AS

EXPRESSLY SET FORTH IN THIS SECTION, THE SERVICES, THE ANALYTICS, AND IMPLEMENTATION SERVICES ARE PROVIDED “AS IS” AND COMPANY DISCLAIMS

ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO,

IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT.

7. INDEMNITY
Company shall hold Customer harmless from liability to third parties resulting from infringement by the Service of any United States patent or any copyright or misappropriation of any trade secret, provided Company is promptly notified of any and all threats, claims and proceedings related thereto and given reasonable assistance and the opportunity to assume sole control over defense and settlement; Company will not be responsible for any settlement it does not approve in writing. The foregoing obligations do not apply with respect to portions or components of the Service (i) not supplied by Company, (ii) made in whole or in part in accordance with Customer specifications, (iii) that are modified after delivery by Company, (iv) combined with other

City of Fountain Valley, CA
Actuarial Services and Technology
Licensing Agreement

products, processes or materials where the alleged infringement relates to such combination, (v) where Customer continues allegedly infringing activity after being notified thereof or after being informed of modifications that would have avoided the alleged infringement, or (vi) where Customer’s use of the Service is not strictly in accordance with this Agreement. If, due to a claim of infringement, the Services are held by a court of competent jurisdiction to be or are believed by Company to be infringing, Company may, at its option and expense (a) replace or modify the Service to be non-infringing provided that such modification or replacement contains substantially similar features and functionality, (b) obtain for Customer a license to continue using the Service, or (c) if neither of the foregoing is commercially practicable, terminate this Agreement and Customer’s rights hereunder and provide Customer a refund of any prepaid, unused fees for the Service.

8. LIMITATION OF LIABILITY

NOTWITHSTANDING ANYTHING TO THE CONTRARY, EXCEPT FOR BODILY INJURY

OF A PERSON, COMPANY AND ITS SUPPLIERS (INCLUDING BUT NOT LIMITED TO

ALL EQUIPMENT AND TECHNOLOGY SUPPLIERS), OFFICERS, AFFILIATES,

REPRESENTATIVES, CONTRACTORS AND EMPLOYEES SHALL NOT BE

RESPONSIBLE OR LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS

AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY: (A) FOR ERROR

OR INTERRUPTION OF USE OR FOR LOSS OR INACCURACY OR CORRUPTION OF

DATA OR COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR TECHNOLOGY OR LOSS OF BUSINESS; (B) FOR ANY INDIRECT, EXEMPLARY, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES; (C) FOR ANY MATTER BEYOND COMPANY’S REASONABLE CONTROL; OR (D) FOR ANY AMOUNTS THAT,

TOGETHER WITH AMOUNTS ASSOCIATED WITH ALL OTHER CLAIMS, EXCEED THE

FEES PAID BY CUSTOMER TO COMPANY FOR THE SERVICES UNDER THIS AGREEMENT IN THE 12 MONTHS PRIOR TO THE ACT THAT GAVE RISE TO THE

LIABILITY, IN EACH CASE, WHETHER OR NOT COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

9. MISCELLANEOUS
If any provision of this Agreement is found to be unenforceable or invalid, that provision will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect and enforceable. This Agreement is not assignable, transferable or sublicensable by Customer except with Company’s prior written consent. Company may not transfer or assign any of its rights and obligations under this Agreement without Customer’s prior written consent. This Agreement is the complete and exclusive statement of the mutual understanding of the parties and supersedes and cancels all previous written and oral agreements, communications and other understandings relating to the subject matter of this Agreement, and all waivers and modifications in this Agreement must be in a writing signed by both parties, except as otherwise provided herein. No agency, partnership, joint venture, or employment is created as a result of this Agreement and Customer does not have any authority of any kind to bind Company in any respect whatsoever. In any action or proceeding to enforce rights under this Agreement, the prevailing party will be entitled to recover costs and attorneys’ fees. All notices under this Agreement will be in writing and will be deemed to have been duly given when received, if personally delivered; when receipt is electronically confirmed, if transmitted by facsimile or e-mail; the day after it is sent, if sent for next day delivery by recognized overnight delivery service; and upon receipt, if sent by certified or registered mail, return receipt requested.

City of Fountain Valley, CA
Actuarial Services and Technology
Licensing Agreement

This Agreement shall be governed by the laws of the State of California without regard to its conflict of laws provisions. The parties shall work together in good faith to issue at least one mutually agreed upon press release within 90 days of the Effective Date, and Customer otherwise agrees to reasonably cooperate with Company to serve as a reference account upon request.

Approved as to form:

Harper & Burns LLP
__________________
Attorneys for the City
City of Fountain Valley

City of Fountain Valley, CA
Actuarial Services and Technology
Licensing Agreement

EXHIBIT A
Summary of Services and Implementation #
This Summary if Services and Implementation (this “SSI”) is entered into on this 1 day of February, 2022,between GovInvest, Inc. (“Company”), and the Customer listed below, pursuant to the terms of that certain Master Services Agreement, dated as of 1 day of February, 2022 (the “Agreement”), by and between Company and Customer.

Customer:

Jennifer Lampman, Director of Finance
Shannon Espinoza, Budget Manager
City of Fountain Valley
10200 Slater Avenue
Fountain Valley, CA 92708
Services:

Service Capacity: Use of the Standard Pension Module, Other Post-Employment Benefits Module, Labor Costing Module of the Total Liability Calculator (the “Service(s)”).

Service Fees:

Pension Module: $10,000 per year
OPEB Module: $7,000 per year
Labor Costing Module: $13,000 per year
Total Contract Value: $60,000 (2-years) $30,000 annual licensing fees. *Customer has option to renew up to 3 additional years (if desired)
Optional Future GASB Report Items:
*GASB Reporting optional but allows for efficiency in validating and building plan projections and results.

1. Full valuation: $4,900 reduced to $3,700 per report

2. Roll-forward: $2,450 reduced to $1,700 per report

3. *Actuarial Determined Contribution Funding Report: Included ($1,700 value) Annual fee will increase by the greater of the US CPI or 5% each consecutive year, and payable in advance subject to the terms of Section 4 herein.

Implementation Services:

Company will use commercially reasonable efforts to provide Customer the services described in accordance with the terms herein, and Customer shall pay Company the Implementation Fee in accordance with the terms herein.

City of Fountain Valley, CA
Actuarial Services and Technology
Licensing Agreement

Pension Module (One-Time): fee WAIVED
OPEB Module (One-time): fee WAIVED
Labor Costing Module (One-Time): Renewal- no fee
General:

The terms and conditions of this SSI are hereby incorporated into and made a part of the Agreement. All waivers and modifications in this SSI must be in a writing signed by both parties, except as otherwise provided in the Agreement.

City of Fountain Valley, CA
Actuarial Services and Technology
Licensing Agreement

IN WITNESS WHEREOF, this Summary if Services and Implementation has been executed and delivered by the parties hereto by their duly authorized officers as of the date first set forth above.

GOVINVEST INC.: CITY OF FOUNTAIN VALLEY, CA
By: ______________________________ By: _____________________________ Name: Name: Patrick Harper
Title: Title: Mayor, City of Fountain Valley
Date: Date:

Approved as to form:

HARPER & BURNS LLP
_____________________
Alexandra Halfman
Attorneys for the City
City of Fountain Valley
Jason Huk
Sr. Director of Sales
Jan. 25th 2022

City of Fountain Valley, CA
Actuarial Services and Technology
Licensing Agreement

Exhibit B
Service Level Terms
The Services shall be available 99% of the time, measured monthly, excluding holidays and weekends and scheduled maintenance. If Customer requests maintenance during these hours, any uptime or downtime calculation will exclude periods affected by such maintenance. Further, any downtime resulting from outages of third-party connections or utilities or other reasons beyond Company’s control will also be excluded from any such calculation. Customer's sole and exclusive remedy, and Company's entire liability, in connection with Service availability shall be that for each period of downtime lasting longer than 12 hours, Company will credit Customer 1% of Service Fees for each period of 30 or more consecutive minutes of downtime; provided that no more than one such credit will accrue per day.

Downtime shall begin to accrue as soon as Customer (with notice to Company) recognizes that downtime is taking place, and continues until the availability of the Services is restored. In order to receive downtime credit, Customer must notify Company in writing within 12 hours from the time of downtime, and failure to provide such notice will forfeit the right to receive downtime credit. Such credits may not be redeemed for cash and shall not be cumulative beyond a total of credits for one (1) week of Service Fees in any one (1) calendar month in any event. Company will only apply a credit to the month in which the incident occurred. Company’s blocking of data communications or other Service in accordance with its policies shall not be deemed to be a failure of Company to provide adequate service levels under this Agreement.

City of Fountain Valley, CA
Actuarial Services and Technology
Licensing Agreement

EXHIBIT C
Support Terms
Company will provide Technical Support to Customer via both telephone and electronic mail on weekdays during the hours of 9:00 a.m. through 5:00 p.m. Pacific Standard Time, with the exclusion of Federal Holidays (“Support Hours”).

Customer may initiate a help desk ticket during Support Hours by calling 310-371-7106 or any time by emailing [email protected].

Company will use commercially reasonable efforts to respond to all help desk tickets within one (1) business day.

City of Fountain Valley, CA
Actuarial Services and Technology
Licensing Agreement

EXHIBIT D
Disclaimer of Software Analysis
Company will use census data, plan provisions, and actuarial assumptions provided by Customer and/or Customer’s actuary to develop the software for Customer. Company will rely on this information without audit. Company does not set actuarial assumptions.

Company will provide software with financially sound projections and analysis, but does not guarantee compliance with actuarial standards for funding and accounting purposes under Government Accounting Standards Board or Generally Accepted Accounting Principles.

The software will not be prepared in accordance with the actuarial standards of practice or actuarial compliance guidelines as promulgated by the American Academy of Actuaries nor will outputs constitute a Statement of Actuarial Opinion. Software results are not suitable for financial reporting purposes.

While the software is tested against actuarial valuation results, the software results will not match, nor are intended to match actuarial valuation results as the assumptions and methods go beyond general plan assumptions per GASB to support agency budgeting analysis and costing practices.

City of Fountain Valley, CA
Actuarial Services and Technology
Licensing Agreement

Renewal/ Amendment Section (post original agreement execution) Summary of Services and Implementation # (Leave blank until renewal/ amendment) This Summary if Services and Implementation (this “SSI”) is entered into on this _____ day of _________, 20____, between GovInvest, Inc. (“Company”), and the Customer listed below, pursuant to the terms of that certain Master Services Agreement, dated as of _____ day of _________, 20____ (the “Agreement”), by and between Company and Customer.

Customer:

Decision Maker Name, Title
Address
Email
Phone Number
Services:

Service Capacity: Use of the Standard Pension Module, Other Post-Employment Benefits Module, Labor Costing Module and the Financial Modeling Module of the Total Liability Calculator (the “Service(s)”).

Service Fees:

Pension Module: x per year
OPEB Module: x per year
Labor Costing Module: x per year,
Financial Modeling Module: x per year
Annual fee will increase by the greater of the US CPI or 5% each consecutive year, and payable in advance subject to the terms of Section 4 herein.

Implementation Services:

Company will use commercially reasonable efforts to provide Customer the services described in accordance with the terms herein, and Customer shall pay Company the Implementation Fee in accordance with the terms herein.

Pension Module (One-Time): x
OPEB Module (One-time): x
Labor Costing Module (One-Time): x
Financial Modeling Module (One-Time): x
General:

The terms and conditions of this SSI are hereby incorporated into and made a part of the Agreement. All waivers and modifications in this SSI must be in a writing signed by both parties, except as otherwise provided in the Agreement.
[Signature Pages to Follow]

City of Fountain Valley, CA
Actuarial Services and Technology
Licensing Agreement

IN WITNESS WHEREOF, this Summary if Services and Implementation has been executed and delivered by the parties hereto by their duly authorized officers as of the date first set forth above.

GOVINVEST INC.: [Customer Name]:

By: ______________________________ By: _____________________________ Name: Name:

Title: Title:

Date: Date:

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: February 1, 2022
Members of the Council
SUBJECT: Frontier Citywide Fiber Optic installation

1. Accept a Fee Proposal from Annealta for $80,600 for Plan Checking, Construction Management and Inspection Services for Frontier’s City-wide Fiber Optic Installation Plan

2. Amendment of FY 2021/22 General Fund Budget in the amount of $80,600 EXECUTIVE SUMMARY:

Frontier reached out to the City of Fountain Valley expressing interest in installing Citywide Fiber Optics over two to three years. City Staff expressed their concerns to Frontier regarding "limited and inadequate staffing to process their request expeditiously at this time." As a response, Frontier offered to fund staffing support services to process their request, starting with an initial deposit of $50,000.

To execute Frontier’s request to install a citywide fiber optics plan, staff solicited proposals for plan checking, construction engineering/management, and inspection support services from the City’s approved on-call list of qualified consultants for as-needed construction management and inspection services. Staff solicited to four most qualified consultants for this expertise. Annealta ranked highest and best qualified based on their experience and expertise in project management/plan checking services.

Annealta is a highly respected civil engineering and construction management firm with an excellent reputation for its work on similar projects throughout Southern California.

Annealta has provided consulting services to Fountain Valley on past projects including providing inspection services on projects including the City’s Rehabilitation and Resurfacing of Residential Roadways, Project GT229, and Rehabilitation of Warner Avenue from Brookhurst Street to Euclid Street, Project TI275. Their expertise in managing capital projects similar to these will ensure successful completion of these projects meanwhile ensuring compliance with all State requirements.

Staff recommends that the City Council accept a Fee Proposal from Annealta for $80,600 for Plan Checking, Construction Management and Inspection Services for Frontier’s Citywide Fiber Optic Installation Plan.

Council Action Request
Annealta CM Services for Frontier
February 1, 2022

DISCUSSION:

Frontier reached out to the City of Fountain Valley expressing interest in installing Citywide Fiber Optics over two to three years. City staff expressed concerns to Frontier regarding “limited and inadequate staffing to process their request expeditiously at this time." As a response, Frontier offered to fully fund the staffing support services required by the City to execute its fiber-optic program in the City. Frontier has agreed to provide an initial deposit in the amount of $50,000 to use as a revenue source for project costs incurred and will be billed for all costs above $50,000 incurred by Annealta. Frontier plans to provide high-speed fiber optic internet services to every home in Fountain Valley.

One solution to execute this request expeditiously is to utilize one of the pre-qualified oncall consultant services contracts approved by the Council on November 16, 2021.

To move Frontier’s fiber optics installation plan forward, staff solicited proposals for construction engineering/management support and inspection services from the City’s approved on-call list of qualified consultants for as-needed construction management services. Staff solicited four of the most qualified consultants whose expertise is in project management/inspection services and plan checking.

In response, staff received the following proposals.

Firm ____ Proposal Amount_

1. Annealta $193,440.00*

2. Interwest $189,540.00

3. Psomas $371,128.00

4. Onward Did not submit proposal
After conducting interviews and a careful evaluation, Annealta ranked highest and best qualified based on their experience and vast expertise in project management/plan checking services.

Annealta submitted a proposal for $80,600 (* Note: The fee is pro-rated for the remaining fiscal year), which includes turnkey engineering plan checking, construction engineering/management, and inspection services.

Annealta is a well-known civil engineering and construction management firm with a good reputation for excelling in similar types of project management. They have worked on several similar projects throughout Southern California. Annealta has provided consulting services to Fountain Valley on past projects including providing inspection services for the Rehabilitation and Resurfacing of Residential Roadways, Project GT229, and Rehabilitation of Warner Avenue from Brookhurst Street to Euclid Street, Project TI275.

Their expertise in managing capital projects similar to these will ensure successful completion of these projects meanwhile ensuring compliance with the City's standard construction specifications.

Council Action Request
Annealta CM Services for Frontier
February 1, 2022

This proposal is for the remainder of the current fiscal year, 2021-2022. Staff will reassess the resources needed to continue to facilitate services to Frontier for their Fiber Optic improvement program and budget accordingly for FY 2022-2023.

FINANCIAL ANALYSIS:

Frontier has agreed to fully fund the staffing support services required by the City to execute its fiber-optic program in the City. Frontier has agreed to provide an initial deposit in the amount of $50,000 to use as a revenue source for project costs incurred and will be invoiced for all costs billed by Annealta for this project.

It should be noted that a Purchase Order was issued for $50,000 under City Manager's Purchasing Policy Authority to expedite services.

ATTORNEY REVIEW:

Legal Review is not required.*
*City Council and the Attorney for the City approved the As-need Construction Management and Inspection Services Contract for Annealta in the amount not to exceed $400,000 for the on-call list on November 16, 2021. These contracts are effective for a three-year term.

ALTERNATIVES:

Alternative No. 1: Accept a Fee Proposal from Annealta for $80,600 for Plan Checking, Construction Management and Inspection Services for Frontier’s City-wide Fiber Optic Installation Plan and; amend the appropriate revenue and expense accounts in the FY 2021/22 General Fund Budget in the amount of $80,600. (* Note: The fee is pro-rated for the remaining fiscal year). This is the recommended action.

Alternative No. 2: Do not accept the proposal. This is not recommended as Frontier has offered to fund staffing support services to install fiber optics citywide. Further, this option would not allow the City to provide support to Frontier in its efforts of improving fiber optic services to the Fountain Valley community.

RECOMMENDATION:

Staff recommends that the City Council approve Alternative No. 1, which is to accept the fee proposal from Annealta for $80,600 for construction management and inspection services for Frontier’s Fiber Optic Installation Plan and; amend the appropriate revenue and expense accounts in the FY2021/22 budget for $80,600 to accommodate this service.

Council Action Request
Annealta CM Services for Frontier
February 1, 2022

Prepared by: Fatana Temory, Management Aide
Recommended by: Kyle Hilton, Associate Engineer / Project Manager Reviewed by: Temo Galvez, Deputy Public Works Director / City Engineer Approved by: Hye Jin Lee, Director of Public Works
Fiscal Review by: Jennifer Lampman, Finance Director / Treasurer Approved by: Rob Houston, City Manager
Attachment 1: Annealta Proposal
Attachment 2: Executed Annealta Contract

ANNEALTA GROUP
December 7, 2021
Temo Galvez, PE, Deputy Public Works Director/City Engineer City of Fountain Valley
10200 Slater Avenue
Fountain Valley, CA 92708
Re: Proposal to Provide As-needed Project/Construction Management Services – Effort 2 Dear Temo,
Annealta Group is pleased to submit our proposal to provide As-needed Project/Construction Management Services in support of the Public Works Department of the City of Fountain Valley. These are core services that Annealta Group provides to its clients and we are uniquely positioned to serve the City when called upon. We have carefully assembled a team of experienced and professional staff who possess the know-how and skill set to serve as an extension of the City’s staff in performing a variety of services on an as needed basis.

Annealta focuses on providing the expertise required to assist our clients with professional services tailored to their specific and unique needs. Spanning critical municipal service areas including public works, city engineering, planning and building and safety, our team of experts bring a wealth of expertise in their respective fields. We are committed to achieving your organization's goals. Our client references can attest to our successful track record of the delivery of services and projects on time and within budget in a customer friendly manner! Annealta’s unique combination of qualifications, experience and certifications will enable us to work effectively with the Public Works Department as well as other city departments in the successful delivery of projects for the City. Our company formed in response to client demands for focused services provided by smaller, principal led firms as opposed to untailored services provided by some larger corporations in the market place. Our staff has a proven track record of successfully delivering projects and effectively coordinating with other city departments as project issues and deadlines dictate.

Identification of Needs & Proposed Approach
We understand that the City of Fountain Valley is seeking qualified firms to provide professional public works services in support of the City’s Public Works Department. Assistance is needed with several projects. Specifically, we understand the City is seeking assistance on the following projects:

Effort 2: (Project Manager/Inspector)
 Frontier Plans to install fiber optics citywide over the span of two to three years and the city will need project management/inspection services to provide the management, plan check review and inspection of all things required to facilitate Frontier’s efforts.

For this assignment, we propose a management professional with more than 30 years of significant and relevant experience in serving cities. Angel Fuertes is a registered engineer and a former assistant city engineer experienced We are proud to
share that we
were recently
named the #1
Fastest Growing
Small Company
by the Orange
County Business
Journal!

ANNEALTA GROUP
in serving Orange County cities. Supporting Angel in the field will be public works inspector Gilbert Mercado. Copies of their resumes are attached.

Proposed Fee
Annealta Group proposes to perform these services at the contractual hourly rates for program manager and public works inspector III, $165 and $120 per hour, respectively. It is estimated that the effort will consist of an average 8 hours per week for the Program Manager and 8 hours per day for the Inspector (only during construction; we estimate 6 months out of the initial 12 month period) over a period of 52 weeks. Plan check is for compliance with City established standards pursuant to current City public works permitting standards – development of or review according to new standards is not included. We assume a start date of approximately February 7, 2022. Based on these assumptions, Annealta Group proposes the following cost for this project.

Please don’t hesitate to contact me directly if you have any questions or would like additional information about how we can assist.

Thank you for the consideration of our proposal!
Sincerely,
Tim D’Zmura, PE, CBO, AICP
President / CEO
Program
Manager
($165)
Public Works
Inspector III
($120)
416 1040
Total Estimated Hours 416 1040
Total Estimated Cost $68,640 $124,800 Total $193,440
Contact
Tim D’Zmura, PE, CBO, AICP
President/CEO
714.625.5840
[email protected]

Gilbert Mercado
Construction Manager/Inspector
Gilbert brings more than 25 years of engineering, project management, construction management and construction inspection experience. His vast experience includes managing projects and logistics from pre-planning through construction completion.

Projects include streets, sidewalks, bridges, residential homes, and commercial buildings.

Gilbert has a strong understanding of the Greenbook, CSI codes, Caltrans standards and the WATCH manual. He utilizes this skilled knowledge to maintain a high level of quality and collaboratively works with all parties to resolve any problems or question that may arise. His ability to focus on the project details ensures that all work is completed on time, within budget, and per plans and specifications.

P R O J E C T E X P E R I E N C E
Construction Manager | Inspector
2021 – Present Annealta Group
Provides a variety of services to clients in the Southern California region, including public works inspection, project management and construction management.

City of Laguna Niguel – Contract
On site inspector for City of Laguna Niguel on City Senior Center Expansion Project and Golden Lantern Road Widening, as well as street and sidewalk rehabilitation. Represented the City on special public works project to ensure that the project is done per project specifications, in accordance with all prevailing codes, city, county, and state requirements.

McWong Holdings Construction
Tasked to oversee several construction projects from land development through final construction. Duties included materials estimate, monitoring, subcontractor coordination, and city coordination and inspection. Projects included 38 single-family residential homes in Fontana, Ca.; a 33 unit senior apartment building, in Arcadia, Ca.; a 12 unit and 8 unit condominium building in San Gabriel, CA.; Another 8 unit condominium in Rowland Heights, Ca.; and several large $1-2.5M custom residential homes in the Los Angeles.

D.M. Consunji Incorporated (Philippines)
Designated as Project-in-Charge, overseeing all aspects of construction and logistics from pre-planning, construction, up to early stages of finishing work of a 55-story tower residential commercial building.

Citimotors Corporation (Philippines)
In-house civil engineer in charge of overseeing and supervising the construction of a 7- story service center and several display outlets.

Construction Manager | Owner
EGM & Associates
Construction company that focused on residential and commercial construction and renovation, renovation of public roads and bridges, as well as subcontracting finishing work.

E D U C A T I O N
Masters, Financial Management |
Accounting
DeVry University, Pomona, CA
BS, Civil Engineering
Perpetual Help College of Laguna
Philippines
BS, Construction Management
ITT Technical Institute La Verne, CA
AA, Computer Aided Design and Drafting
ITT Technical Institute La Verne, CA

P R O F E S S I O N A L

S K I L L S
Proficient in Microsoft Suite
Proficient in Auto CADD, REVIT, Fusion and
Inventor
Proficient in Adobe Photoshop and
Illustrator

Angel Fuertes, PE, QSP/QSD
Program Manager
Angel is a highly knowledgeable project manager with 35 years of successful construction management, city engineering and implementing and administering public works projects and programs. He has broad experience administering contracts for capital projects from design through construction phases, staff augmentation, and construction administration/inspection. He has also managed the development of CIP projects including planning, budgeting, identify funding sources and completing grant applications.

Angel is a professional who brings solutions to our clients. He is flexible and his communication style fosters a teamwork atmosphere in resolving challenges. He is committed to serving the needs of the client through strong leadership and a collaborative approach.

S P E C I F I C E X P E R I E N C E
Project Management Consultant
2017 – 2020 Various Cities, Contract
Project Management, City of Lake Forest – Provided project management for four legacy roadway projects involving street improvements, street widening, and median construction. Prepared staff reports, managed design consultants, provided grant administration, coordinated with utility companies, and managed the process for land acquisition from the Orange County Parks and Southern California Edison.

Assisted the Public Works Director to manage the design and construction of a 9-acre civic center campus consisting of 5 structures (community building, senior center, City Hall, Police administration, Council Chambers) performing multi-prime construction. He selected consultants and managed the public bidding process for construction.

Staff Augmentation, Laguna Wood Village – Project Manager for the senior community in Laguna Woods. He managed CIP projects including streetlight acquisition and LED retrofits, HVAC and controller replacement, and Performing Arts Center renovation. He prepared staff reports to award contracts, managed project budget and schedule, selected and managed consultants, and prepared monthly project updates.

Phil & Nell Soto Park, City of Pomona – Provided project management and construction management for the construction of a 2-acre $2.4 million passive park. The construction involved grading, constructing gazebo and trellis, water quality elements, irrigation, and landscaping. He provided project management, contract administration, grant administration, and project cost and schedule oversight.

Engineering Manager/Assistant City Engineer
1/2013 – 6/2017 City of Lake Forest
Served as Engineering Manager/Assistant City Engineer for four years. In this role, he prepared and reviewed City Council staff reports, organized and supervised the work of staff and consultant engineers, engineering technician, landscape inspectors, and consultant plan checkers and land development inspectors. Prepared annual performance appraisals for City staff, selected consultants and administrated contracts for capital projects from design through construction phases, staff augmentation, and construction administration/inspection. He developed the scope of work and retained contractors to perform services for street maintenance, landscape maintenance, traffic signals, and traffic engineering. He also reviewed and approved applications for permits for grading, encroachment, transportation.
- Assisted the Public Works Director to manage the design and construction of a 9- acre civic center campus consisting of 5 structures (community building, senior center, City Hall/Police administration, Council Chamber/performing multi-prime

E D U C A T I O N
Master, Public Administration
Bachelor of Science, Civil Engineering

R E G I S T R A T I O N S

C E R T I F I C A T I O N S
CA Registered Civil Engineer | 40694
Qualified Stormwater
Practitioner/Developer (QSP/QSD)
#26098

construction. He selected consultants and managed the public bidding process for construction.
- Developed and maintained department procedures for procurement, permitting, and maintenance of public works.
- Developed Public Works Department fiscal year operating budget and Capital Improvement Projects (CIP) budget.
- Provided presentations to City Council, Planning Commission, Parks and Recreation Commission, community groups, and City leadership classes. - Represented City in public outreach meetings.
- Managed the development process (over 5,000 homes) by retaining and managing the work of consultant plan checkers and inspectors.

Principal Civil Engineer
6/2009 – 1/2013 City of Lake Forest
He procured the services of consultants and contractors in implementing the City’s Capital Improvement Projects (CIP). He conducted quarterly coordination meetings with utility companies. In addition, he served as Project Manager for the following City projects:
- Lake Forest Sports Park. The 88-acre, $90 million project involved land acquisition, grading and utilities, and park improvements. The Sports Park consists of 6 baseball/soft ball fields, 5-acre multi-use fields, 2 synthetic soccer fields, and a 27,000 square foot recreation building including gymnasium and recreation classrooms. He selected and managed design consultants and contractors. He managed the project through all phases of design and construction. He reviewed plans and approved contract change orders and amendments. The project was completed under budget and has earned awards as Project of the Year from ASCE and APWA in 2015. - Alton Parkway – The $6 million, 6-lane, 1-mile extension project included mass grading, utilities and a landscaped median. His responsibilities included procuring and managing contract services for design, construction management and inspection; negotiating and administrating cost sharing agreements with the adjacent developer (Shea Homes and Baker Ranch), County of Orange, and utility purveyors (Irvine Ranch Water District, SCE). This project earned an award from ASCE in 2013. - Rancho Parkway – The $4 million, 4-lane roadway consisted of grading, curb, gutter, sidewalks, median landscaping, utilities. His responsibilities included managing the entire project from design through construction developing and implementing the project budget, negotiating and administrating cost sharing agreement with Irvine Ranch Water District, and procuring and managing design consultants, construction management, and contractors.
- Trabuco Road, Rockfield Blvd, Jeronimo, Rd landscape median and resurfacing projects. Managed the design and construction of multiple landscape median projects.

Assistant City Engineer
9/2002 – 6/2009 City of Aliso Viejo
Responsible for supervising and coordinating all activities, personnel, and consultants in the Public Works Department. His duties and responsibilities included public works administration, contract administration, project development, street maintenance, construction management and traffic engineering.

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: February 1, 2022
Members of the Council
SUBJECT: Accept a Fee Proposal from Interwest for $137,255 for Construction Management Support Services on Various Facility Projects and Authorize Staff to Issue a Purchase Order for the Interwest On-Call Contract
EXECUTIVE SUMMARY:

On June 1, 2021, the City Council approved as part of the 2021-2022 City’s Fiscal Year Capital Improvement Program (CIP) Budget, the following three (3) projects:

Fire Station 1 Reconstruction
PD Locker, Restroom & CSI Room Improvements
Universally Accessible Playground Equipment
The City of Fountain Valley CIP has forty-three (43) projects with over $23 million appropriations. Engineering technical staff consists of two associate engineers and one vacant assistant engineer position. Engineering staff also reviews private development plans. As such, the engineering division does not have sufficient staffing to execute all CIP projects without consultants' assistance. Recognizing the limited staff resources and significant capital workload already in place, staff solicited proposals for construction engineering/management support services from the City’s Council-approved on-call list of qualified consultants for as-needed construction management services. Staff solicited four of the most qualified consultants whose expertise is in CIP facilities and park improvement projects. Interwest ranked highest and best qualified based on their experience and expertise in project management.

Interwest was selected for project development and construction management services to help facilitate these projects for successful completion. Interwest is a highly respected civil engineering and construction management firm with an excellent reputation for its work on similar projects throughout the county. Interwest has provided consulting services to Fountain Valley on past projects including providing inspection services for the City’s Fire Butler Building and the City’s Sewer Improvement Project, SF620-4. Their expertise in managing capital projects similar to these will ensure successful completion of these projects meanwhile ensuring compliance with all State Building and ADA requirements.

Council Action Request
Interwest CM Services on Various Projects
February 1, 2022

Staff recommends that the City Council accept the fee proposal from Interwest for $137,255 for construction management services on various facility projects and authorize staff to issue a purchase order for the Interwest On-Call Contract.

DISCUSSION:

On June 1, 2021, the City Council approved the Fiscal Year 2021-2022 budget including the CIP Budget with the following three (3) projects:

Fire Station 1 Reconstruction
PD Locker, Restroom & CSI Room Improvements
Universally Accessible Playground Equipment
Per the City’s purchasing policy and in collaboration with the Finance Department, staff issued a Request for Qualifications (RFQ) for As-Needed Construction Management and Inspection Services. The RFQ intends to establish a qualified consultants list to support the various projects and staffing needs within Public Works for the next three (3) years for various CIP projects. Maintaining an active and comprehensive on-call list will streamline the process of awarding projects to the most suitable firm for specific projects and reduce time soliciting consultant services for each project.

On November 16, 2021, the Council approved five (5) most qualified consultants among twenty-one (21) proposals for on-call services for construction management and inspection
Among the City’s approved on-call list of qualified consultants for as-needed construction management services, staff solicited four of the most qualified consultants whose expertise is in CIP facilities and park project management.

In response, staff received the following proposals.

Firm ____ Proposal Amount_

1. Interwest $137,255

2. Annealta $102,960

3. Psomas $398,030

4. Onward Did not submit a proposal
After conducting interviews and a careful evaluation, Interwest ranked highest and best qualified based on their experience and vast expertise in project and construction management.

Although Interwest’s fee proposal is not the lowest, they had the most qualified staff whose experience includes public facilities project management/inspection for the City of Santa Ana and other facilities in Orange County. Interwest submitted a proposal for $137,255, which includes turnkey construction engineering and management support services, specialized in parks and City facilities. The consultant will serve as the project

Council Action Request
Interwest CM Services on Various Projects
February 1, 2022

manager for these various projects for a year where staff intends to re-assess the needs of these various projects, which are at different stages of implementation as every stage of implementation can have varying levels of demand in time and expertise. Utilizing one consultant for multiple projects of different stages also provides economy of scale benefit and consultant’s time management.

Interwest is a well-known civil engineering and construction management firm with a good reputation for excelling in a similar type of project management. They have experience with similar types of projects throughout the county. Interwest has provided consulting services to Fountain Valley in the past including providing inspection services for projects such as the City’s Fire Butler Building and the City’s Sewer Improvement Project, SF620-

4. Their expertise in managing capital facilities projects similar to these will ensure successful completion of these projects meanwhile ensuring compliance with all State building and ADA requirements.

FINANCIAL ANALYSIS:

Construction Management Services Fee (Interwest)
Project
Cost of
Services
Additional
Costs to
date
Approved
Project
Budget
Remaining
Budget
Fire Station 1 Reconstruction $33,418.18 $0 $1,000,000 $966,581 PD Locker, Restroom & CSI
Room Improvements
$80,418.18 $136,073** $2,966,251 $2,749,759
Universally Accessible
Playground Equipment
$23,418.64 $0 $1,000,000 $976,581
Total Anticipated Project
Costs $137,255.00*
These projects are funded out of the FY22/23 General Fund Capital Reserve.* Consultant Cost for TR Design approved by the City Council on June 1st, 2021** ATTORNEY REVIEW:

Legal Review is not required.***
***City Council and the Attorney for the City approved the As-need Construction Management and Inspection Services Contract for Interwest in the amount not to exceed $400,000 for the on-call list on November 16, 2021. These contracts are effective for a three-year term.

ALTERNATIVES:

Alternative No. 1: Accept the fee proposal from Interwest for $137,255 for construction management support services on various facility projects and authorize Staff to issue a purchase order for the Interwest On-Call Contract. This is the recommended action.

Council Action Request
Interwest CM Services on Various Projects
February 1, 2022

Alternative No. 2: Do not accept the proposal. This is not recommended as it will delay the project schedules for these projects.

RECOMMENDATION:

Staff recommends that the City Council approve Alternative No. 1, which is to accept the fee proposal from Interwest for $137,255 for construction management support services on various facility projects and authorize Staff to issue a purchase order for the Interwest On-Call Contract.

Prepared by: Fatana Temory, Management Aide
Recommended by: Kyle Hilton, Associate Engineer / Project Manager Reviewed by: Temo Galvez, Deputy Public Works Director / City Engineer Approved by: Hye Jin Lee, Director of Public Works
Fiscal Review by: Jennifer Lampman, Finance Director / Treasurer Approved by: Rob Houston, City Manager
Attachment 1: Interwest Proposal
Attachment 2: Executed Interwest Contract

| 1 Jenner, Suite 160, Irvine, CA 91741
EFFORT ONE (1)

EFFORT TWO (2)

Tyrone J. Chesanek, P.E.

CONSTRUCTION MANAGER

PROFESSIONAL HISTORY
Deputy Public Works Director / City of Santa Ana / 2019 – 2021 Years of Experience: 32
Education
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License / Certification
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TYRONE J. CHESANEK, P.E – PROFESSIONAL CIVIL ENGINEER

TYRONE J. CHESANEK, P.E – PROFESSIONAL CIVIL ENGINEER
Principal Civil Engineer / City of Santa Ana / 2011 – 2019

TYRONE J. CHESANEK, P.E – PROFESSIONAL CIVIL ENGINEER
Senior Civil Engineer / City of Santa Ana / 2000 – 2011 PROJECTS: Public Works Annual CIP Projects - $20 million Associate Civil Engineer (Project/Change Order Manager) / City of Los Angeles / 1998 – 2000 PROJECT: LA City Hall Seismic Rehabilitation Project - Retrofit $243 million Associate Civil Engineer (Project/Construction Manager) / City of Los Angeles / 1990 - 1998 Highlighted Projects for the City of Los Angeles Include:
 77th Street Regional Police Facility- New Construction - $27 million  Platt Branch Library- New Construction- $3 million
 City Hall- Main Street Lobby Fire/ Life Safety and Disabled Retrofit- $1.5 million City Hall - Project Restore Main Street  Lobby Restoration- $1.2 million
 Fire Station- Fuel Tank and Dispensing System Replacement - $500 thousand  Reseda Woodland Hills Service Yard- Tank Replacement - $300 thousand Assistant Engineer (Project Engineer/Construction Manager) / City of Los Angeles / 1989 - 1990 Interpreted contract drawings and specifications. Reviewed shop drawing and contract progress payments. Estimated and negotiated change orders. Facilitated weekly job meetings. Prepared, analyzed, and updated construction schedules.

Designed and prepared construction documents.

Highlighted Projects for the City of Los Angeles Include:
 Tillman Water Reclamation Plant- Headwork Expansion- $10 million  Tillman Water Reclamation Plant- Standby Influent Pumps- $2.5 million

Eric Tello, EIT
Associate Engineer

PROJECT EXPIERENCE
City of Brea / Interwest Consulting Group / 2020 - Present •
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PROFESSIONAL HISTORY
Associate Engineer / Interwest Consulting Group / 2021 – Present

EDUCATIONAL HISTORY
B.S. Civil Engineering / California State University Long Beach / 2018- 2020
Years of Experience: 1
Years w/ Interwest: 1
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CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
TO: Honorable Mayor and Agenda Date: February 1, 2022
Members of the City Council
SUBJECT: First Read and Introduction: Code Amendment No. 21-05 – An Amendment to Create Alternative Hotel Development Standards that Encourage Quality Hotel Development
EXECUTIVE SUMMARY:

Code Amendment No. 21-05 will create alternative hotel development standards that will encourage quality hotel development in the City of Fountain Valley. The amendment includes the modification of Fountain Valley Municipal Code (FVMC) 21.10.040 “Commercial and Manufacturing District General Development Standards”, the modification of FVMC

21.22.040 “Number of Parking Spaces Required”, and the addition of FVMC 21.10.080 “Alternative Hotel Development Standards.”
At the Planning Commission meeting of December 8, 2021, the Planning Commission voted 4-0 recommending the City Council approve Code Amendment No. 21-05.

Then at the regularly scheduled City Council Meeting of January 18, 2022, staff requested the City Council continue Code Amendment No. 21-05 to the regularly scheduled City Council meeting of February 1, 2022 due to limited staffing issues.

PROPOSAL:

The proposed Code Amendment (CA) is to create alternative design standards to encourage the development of quality hotels. The following sections to the Fountain Valley Municipal Code (FVMC) will be amended:
 FVMC 21.10.040 Table 2-7 – Commercial/Manufacturing District General Development Standards
 FVMC 21.22.040 Table 3-3 – Parking Requirements by Land Use Added:
 FVMC 21.10.080 – Alternative Hotel Development Standards The Fountain Valley City Council conducted a study session on the concept of alternative development standards for quality hotels on September 20, 2021 and directed staff to return with the attached ordinance codifying the concept.

City Council Action – Hotel Incentives - Code Amendment No. 21-05 February 1, 2022

DISCUSSION:

The economic benefit that hotels have for cities is tremendous. Quality lodging establishments, both new and existing, assist the City in economic development by working to achieve financial stability, which in turn can lead to funding for maintaining and enhancing local infrastructure and facilities. Through the Transient Occupancy Tax (TOT), the City is able to apply a tax per room that is passed on to the traveler opting to visit the hotel. TOT revenues can be quite significant for a City, such as Anaheim that relies heavily on tourism to fund the City’s budget. However, the TOT received from hotels benefits even small communities such as Fountain Valley where tourism is not the lifeblood of the city. TOT revenues account for 1.7% of the City of Fountain Valley’s FY21/22 General Fund budget that equates to being the second highest sales tax producer. While hotels have not fully recovered from the COVID-19 pandemic, Fountain Valley still has budgeted receiving just over $1 million dollars in TOT funds for the fiscal year.

Currently Fountain Valley has four (4) overnight lodging facilities.

Fountain Valley Hotels:
 Sonesta ES Suites 9930 Slater Avenue
 Sonesta Select 9950 Slater Avenue
 Ayres Hotel 17550 Brookhurst Street
 Motel 6 9125 Recreation Circle
Proposed Hotel Incentives:

Currently, the development standards for hotels in Fountain Valley is the same as any retail, office, and other commercial uses. However, by nature hotels are different when it comes to height, intensity, and development patterns. Many hotel developments require a certain number of rooms in order to be profitable and with development standards that acts as a onesize-fits-all approach, planning for the desired amount of rooms for a new hotel project may be difficult.

The current proposal aims to increase the maximum allowable floor area and height limit for quality hotels. This would be permitted if the hotel developer provides some amenities that enhance the look and feel that hotel guests would experience. The more features and amenities will drive the hotel’s consumer rating up and thus the hotel can command a higher rate, which in turn leads to a higher TOT for the City.

Hotels that desire to utilize the alternative standards shall provide a level of design detail/quality, amenities, and service that exceed budget level hotels. Hotels that provide at least the minimum number of features from each of the four (4) categories below shall be eligible to utilize the alternative standards. The CA proposes to add Section 21.10.080:

21.10.080 Alternative hotel development standards
(a) Purpose. It is the purpose of this section to:
(1) Attract quality hotel development to the City of Fountain Valley. (2) Provide alternative standards to those required in Section 21.10.040 as a means of spurring quality hotel development.

City Council Action – Hotel Incentives - Code Amendment No. 21-05 February 1, 2022

(3) Establish the design, amenities, and services that hotels are required to provide to use the alternative standards.
(b) Applicability. The alternative standards in this Section are applicable to new or renovated hotels that:
(1) Are located in the allowable zones as provided in Section 21.10.030, Commercial and manufacturing district land uses and permit requirements; and (2) Provide the level of design detail and quality, amenities, and service as required by subdivision (c). Hotels that do not provide the design detail and quality, amenities, and services as required in subdivision (c) shall not be eligible to utilize the alternative standards.
(c) Hotel quality features. To use the alternative standards described in subdivision (d), the hotel shall provide at least the designated minimum requirement for every feature described below:
(1) Design features. Hotels shall be designed with enhanced exterior façade treatments that eliminate a box-like appearance from all publically viewable elevations and in addition, provide at least four (4) design features from the following:
a. An upper story step-back of at least 3 feet.
b. A modulation in the building façade plane every 50 linear feet of at least 1 foot in depth and 2 feet in width.
c. A modulation of building height by at least 5 feet every 80 linear feet of the building façade plane.
d. On at least 30% of the ground level walls, application of materials such as brick, stone, wood (or equivalents) that provide rich details and diversity in the building design.
e. Variation in window treatments and design such that no more than 40% of an elevation has identical windows.
f. Exterior details such as at least three changes in materials and colors on each façade or artistic façade treatments.
g. Architectural and design treatments that clearly accentuate the ground floor and entry from the rest of the structure by treatments such as canopies, awnings, arcades, or porte-cocheres.
h. If applicable, a parking structure that is concealed from public view or enhanced with exterior landscaping, graphics, or artistic screening. (2) Landscape features. Hotels shall provide at least three (3) features from the following:
a. Installation of mature trees at prominent locations, such as along entry main walkways, major streets, and outdoor dining areas.
b. High degree of landscaping that exceed city standards at the perimeter, courtyards, walkways, entryway, pool/court areas, parking areas, and other areas.
c. Incorporation of water features, public art, and unique touches into the exterior landscaping.
d. A prominent entry feature to the project featuring unique items such as fountains and public art.
e. Exterior lighting that accentuates the prominent features of the building and grounds. Page 141
City Council Action – Hotel Incentives - Code Amendment No. 21-05 February 1, 2022

(3) On-site amenities and services. Hotels shall provide at least five (5) features from the following:
a. Pool.
b. Hot tub.
c. Poolside food and drink service.
d. Lounge chairs, cabanas, and umbrellas.
e. Meeting rooms.
f. Concierge and bell service.
g. Gym or Fitness center.
h. Outdoor fire pit and eating/conversation areas.
i. Sports court(s).
j. Lap pool.
k. Shuttle service.
(4) Unique offerings. Hotels shall provide at least one (1) feature from the following:
a. Retail coffee house and/or restaurant.
b. Event space.
c. Unique recreational amenities, such as a golf simulator. d. Rooftop deck/garden.
e. Spa.
f. Professionally designed interior that incorporates the local character and features.
(d) Alternative Hotel development Standards. Hotels that provide the required hotel quality features described in subdivision (c) may utilize the following alternative development standards:
(1) Floor Area Ratio: 1.5 maximum
(2) Height: 6 stories maximum and 70 feet”
Hotel projects that do not wish to utilize the alternative standards may still develop but will utilize the existing standards applicable to other commercial development in the applicable zone.

Floor Area Ratio (FAR) is the amount of habitable square footage compared to the lot size.

In the commercial and industrial zones, the maximum FAR is 0.5 or 50% of the lot size. This means if a commercial lot is 40,000 square feet the maximum allowable building square footage would be 20,000 square feet (Figure 1). The maximum height for commercial and industrial zones is 50 feet and a maximum of four (4) stories in height.

Figure 1

City Council Action – Hotel Incentives - Code Amendment No. 21-05 February 1, 2022

A hotel developer looking to build in Fountain Valley will benefit from the allowable increase in square footage (FAR) and the increase in the maximum allowable building height. Allowing additional square footage will benefit a quality hotel project so that amenities or features can be provided as an accessory use in addition to the desired number of rooms. A new increase in FAR and height would encourage hotel development and would provide the greatest encouragement for the redevelopment of existing hotels.

Parking:

Currently hotels are parked at 1 space for each guest room up to 40 guest rooms, plus 1 additional space for each 2 rooms over the first 40 rooms. This requirement would lead to a parking deficit if a hotel that has over 40 rooms and was fully occupied assuming one (1) vehicle per room. For example, if the Ayres hotel with 127 rooms was parked at the current parking rate it would only require 84 parking spaces. It was in fact parked with 126 parking spaces as a part of the Civic Center Specific Plan project adjacent to City Hall.

The amenities and features required for eligible developments utilizing the alternative standards are not only intended for guests of the hotel but for several uses such as retail/restaurant or event space uses are intended for the general public. A hotel at full occupancy that is parked at the current requirement would most likely not be able to support additional uses that require parking and should be parked accordingly. CA proposes to update FVMC 21.22.040 Table 3-3 as shown below:

Hotels 1 space for each guest room up to 40 guest rooms, plus 1 additional space for each 2 rooms over the first 40 rooms plus one-half of the required spaces for publically accessible accessory uses, such as restaurants, spas, and event centers, as dictated in Chapter 21.22 of the Municipal Code.

This change to the hotel parking requirement is consistent with most southern California cities with or without hotel incentive policies or zoning code provisions.

CONCLUSION:

Attracting quality hotel developments in the City will promote and enhance the economy of the City, enhance the City’s capacity to provide core municipal services, provide attractive and desirable visitor serving facilities, provide employment opportunities, and increase the TOT revenues available for the benefit of the City. Staff recommends the City Council approve the proposed CA to allow for alternative hotel development standards.

GENERAL PLAN CONSISTENCY:

The proposed amendments will meet the one of the City Council’s Strategic Plan Three-Year goals that is to attract and retain revenue producing businesses in the City of Fountain Valley.

The amendments will also meet General Plan Goal 2.12.1 to enhance the city’s economic base and business environment by assisting in the improvement and intensification of commercial development in the City of Fountain Valley. Additionally, the proposed amendment will meet the General Plan Advisory Committee’s values for the General Plan Update to provide for a fiscally sustainable municipal government and to ensure economic prosperity.

City Council Action – Hotel Incentives - Code Amendment No. 21-05 February 1, 2022

ENVIRONMENTAL REVIEW:

The request is not subject to review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines sections 15060(c)(2): the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment. Code Amendment No. 21-05 will amend the code to provide alternative standards for hotels meeting certain criteria such that they may be up to two stories taller and up to a 1.0 floor area ratio greater than hotels are currently allowed. The zones in which hotels are currently allowed, and other standards such as parking spaces per room and setbacks, would not change as a result of CA 21-05. No physical change is directly associated with the amendment.

FINANCIAL ANALYSIS:

The City receives a tax for each hotel room reserved called a Transient Occupancy Tax (TOT). This revenue accounts for 1.7% of the City of Fountain Valley’s FY21/22 General Fund budget that equates to being the second highest sales tax producer. New hotel developments will be subject to the TOT and will bring additional revenues to the City.

ATTORNEY REVIEW:

The Attorney for the City has reviewed the attached Ordinance.

PUBLIC NOTICE:

This item was published in the Fountain Valley View and public notices were posted at City Hall, Recreation Center, and Fountain Valley Library.

ALTERNATIVES:

1. Approve the Introduction-First Read of an ordinance approving a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) to amend the Fountain Valley Municipal Code (FVMC) Section 21.10.040, Section 21.22.040 Table 3-3, and adding Section 21.10.080 Alternative Hotel Development Standards to include alternative standards that encourage quality hotel development.

2. Do not approve the Introduction-First Read of an ordinance approving a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) to amend the Fountain Valley Municipal Code (FVMC) Section 21.10.040, Section

21.22.040 Table 3-3, and adding Section 21.10.080 Alternative Hotel Development Standards to include alternative standards that encourage quality hotel development.

3. Continue the request for additional information.

RECOMMENDED ACTION:

Staff recommends that the City Council approve Code Amendment No. 21-05 and adopt a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) to amend the Fountain Valley Municipal Code (FVMC) Section 21.10.040 Table 2-7, Section

21.22.040 Table 3-3, and adding Section 21.10.080 Alternative Hotel Development Standards to include alternative standards that encourage quality hotel development.

City Council Action – Hotel Incentives - Code Amendment No. 21-05 February 1, 2022

Prepared By: Matt Jenkins, Senior Planner
Approved By: David Crabtree, Interim Planning and Building Director Fiscal Review By: Jennifer Lampman, Finance Director
Approved by: Robert Houston, City Manager
Attachments: 1. Ordinance for Code Amendment No. 21-05

2. Notice of Exemption

ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN

VALLEY APPROVING A CATEGORICAL EXEMPTION PER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AND TO AMEND THE FOUNTAIN VALLEY MUNICIPAL CODE (FVMC) SECTION 21.10.040 TABLE 2-7, SECTION 21.22.040 TABLE 3-3, AND ADDING SECTION

21.10.080 ALTERNATIVE HOTEL DEVELOPMENT STANDARDS TO

INCLUDE ALTERNATIVE STANDARDS THAT ENCOURAGE QUALITY

HOTEL DEVELOPMENT
WHEREAS, the Fountain Valley City Council adopted the Development Code Update on December 7, 2000; and
WHEREAS, Fountain Valley Municipal Code (“F.V.M.C.”) Section 21.10.030 Table 2- 6 establishes that hotels and motels are permitted in all commercial zones and the commercial manufacturing zone with the approval of a Conditional Use Permit (CUP); and WHEREAS, FVMC Section 21.10.040 Table 2-7 and Section 21.22.040 Table 3-3 provide the development standards and parking standards, respectively, that govern the development of hotels; and
WHEREAS, except for parking, the development standards for hotels are the same as those that govern the development of retail, office, and other commercial uses; and WHEREAS, by their nature, modern hotels are a different height, intensity, and development pattern than other retail, office, and other commercial uses; and WHEREAS, the city desires to attract quality hotel development and to tailor its development standards so that they reflect modern hotel trends; and WHEREAS, the City of Fountain Valley General Plan Goal 2.12 is to enhance the City’s economic base and business environment by assisting in the preservation, improvement, and intensification of existing commercial development; and WHEREAS, the City of Fountain Valley is currently undergoing the effort of a General Plan Update; and
WHEREAS, the General Plan Advisory Committee (GPAC) has been formed to advise staff, the Planning Commission, and City Council in matters regarding the future General Plan; and
WHEREAS, the GPAC has provided input on values and issues for the General Plan Update; and
WHEREAS, preliminary values identified by GPAC included ‘a fiscally sustainable municipal government’ and ‘economic prosperity;’ and

WHEREAS, amending the FVMC to include development standards that encourage quality hotel development will help enhance the City’s economic base, provide for a fiscally sustainable municipal government, and help ensure economic prosperity; and WHEREAS, the Fountain Valley City Council conducted a study session on the concept of alternative development standards for quality hotels on September 20, 2021 and directed staff to return with an ordinance codifying the concept; and WHEREAS, the Fountain Valley Planning Commission considered the proposed ordinance at a duly noticed public hearing on December 8, 2021, and by a vote of 4-0, recommended the City Council adopt the ordinance; and
WHEREAS, the proposed ordinance has been publicly noticed in accordance with State Law and the Fountain Valley Municipal Code.

NOW, THEREFORE, the City Council of the City of Fountain Valley does ORDAIN as follows:

SECTION 1
The City Council hereby determines that the ordinance is not subject to review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15060(c)(2): the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment. The ordinance will amend the code to provide alternative standards for hotels, meeting certain criteria, including that hotels may be up to two stories taller and up to a 1.0 floor area ratio greater than hotels are currently allowed. The zones in which hotels are currently allowed and other standards, such as parking spaces per room and setbacks, will not change as a result of the ordinance. There will be no physical change in the environment as a result of the ordinance.

SECTION 2
The City Council finds that due notice of the public hearing on February 1, 2022, conducted in the City Council Chambers, 10200 Slater Avenue, Fountain Valley, was given as required by the Fountain Valley Municipal Code, Title 21, and the State of California. Public notice of this hearing and a copy of the Planning Commission agenda were posted at City Hall, Recreation Center and the Fountain Valley Library.

SECTION 3
Pursuant to Fountain Valley Municipal Code section 21.34.050 the City Council does hereby find as follows:

1. The proposed amendment ensures and maintains internal consistency with the actions, goals, objectives and policies of the General Plan, and would not create any inconsistencies with Title 21, in the case of a title amendment. The proposed amendment would help to enhance the City’s economic base and business environment by assisting in the preservation, improvement, and intensification of existing commercial development (General Plan Goal/Policy 2.12.1). Additionally, the proposed amendment will meet the General Plan Advisory Committee’s values

for the General Plan Update to provide for a fiscally sustainable municipal government and to ensure economic prosperity.

2. The proposed amendment would not be detrimental to the public convenience, health, interest, safety or welfare of the city. The proposed amendment is intended to attract high quality hotel development that provides a high degree of hospitality and service with an extensive array of amenities for guests. By requiring different designs in the buildings, requiring additional landscaping, providing recreational amenities, and by adding other special amenities will bring out high quality developers with vested interests in their project. For these reasons, a hotel operator that is willing to make a sizable investment into the community will take the necessary steps to maintain the hotel’s brand name and image in a positive light not only benefiting the hotel but also the community surrounding it.

3. The proposed amendment has been reviewed in compliance with the provisions of the California Environmental Quality Act (CEQA) and the city’s environmental review procedures as addressed in Section 1 above.

4. The proposed amendment is internally consistent with other applicable provisions of Title 21. The amendment to add Section 21.10.080 will be internally consistent with other applicable provisions of Title 21.

SECTION 4
Section 21.10.040 is hereby amended to read as follows:
“…
Subdivisions, new land uses and structures, and alterations to existing land uses and structures, shall be designed, constructed and/or established in compliance with the requirements in Table 2-7, in addition to the applicable development standards (e.g., landscaping, parking and loading, etc.) in Chapters 21.16 through 21.30 of this title.

TABLE 2-7

COMMERCIAL/MANUFACTURING DISTRICT

GENERAL DEVELOPMENT STANDARDS
Requirement by Zoning District
Development
Feature
C1 CP C2 CM M1
Minimum lot
size
Minimum area and width for new parcels. Minimum area and width for parcels proposed in new subdivisions.

Lot area 10,000 s.f. 7,200 s.f. 10,000 s.f. 1 acre 10,000 s.f.

Lot width N.A. N.A. N.A. None If lot area is between:
10,000—12,499 = 80 ft.

Requirement by Zoning District
Development
Feature
C1 CP C2 CM M1
12,500—14,999 = 80 ft.
15,000 and over = 100
ft.

Setbacks
required
Minimum setbacks required. See Section 21.18.090 for
setback measurement, allowed projections into
setbacks, and exceptions to required setbacks.

Minimum setbacks required. See
Section 21.18.090 for setback
measurement, allowed projections into
setbacks, and exceptions to required
setbacks.

Front 20 ft. 20 ft. 20 ft. 30 ft. on
arterial
streets; 20 ft.
on local
streets.
20 ft.

Sides (each) 20 ft. adjacent to a residential zone; none required from interior lot lines otherwise; 10 ft. on the street side of a corner lot.

N.A. N.A.

Rear 20 ft. adjacent to a residential zone; 10 ft. for through lots; none required otherwise.
20 ft. adjacent to a residential zone,
none otherwise.

Floor area ratio
(FAR) (2)

0.50 0.50 0.50 0.60 0.60
Lot coverage N.A. N.A. N.A. N.A. 80%
Height limit (1) 50 ft./4 stories 60 ft./4 stories
Landscaping As required by Chapter 21.20 (Landscaping)
Parking As required by Chapter 21.22 (Parking and Loading) Signs As required by Chapter 21.24 (Signs)
Hotels Per Section 21.10.080 Alternative hotel development standards Notes:
(1) Maximum allowed height of structures. See also Section 21.18.050 (Height measurement and height exceptions).
(2) For the purpose of calculating floor area, floor area shall not include carports, garages, parking garages, elevator shafts, mechanical rooms, and exterior patios associated with the use within the same development. “…

SECTION 5
Chapter 21.10 is hereby amended to add Section 21.10.080, Alternative hotel development standards, as follows:
“21.10.080 Alternative hotel development standards.
(a) Purpose. It is the purpose of this section to:
(1) Attract quality hotel development to the City of Fountain Valley. (2) Provide alternative standards to those required in Section 21.10.040 as a means of spurring quality hotel development.
(3) Establish the design, amenities, and services that hotels are required to provide to use the alternative standards.
(b) Applicability. The alternative standards in this Section are applicable to new or renovated hotels that:
(1) Are located in the allowable zones as provided in Section 21.10.030, Commercial and manufacturing district land uses and permit requirements; and (2) Provide the level of design detail and quality, amenities, and service as required by subdivision (c). Hotels that do not provide the design detail and quality, amenities, and services as required in subdivision (c) shall not be eligible to utilize the alternative standards.
(c) Hotel quality features. To use the alternative standards described in subdivision (d), the hotel shall provide at least the designated minimum requirement for every feature described below:
(1) Design features. Hotels shall be designed with enhanced exterior façade treatments that eliminate a box-like appearance from all publically viewable elevations and in addition, provide at least four (4) design features from the following:
a. An upper story step-back of at least 3 feet.
b. A modulation in the building façade plane every 50 linear feet of at least 1 foot in depth and 2 feet in width.
c. A modulation of building height by at least 5 feet every 80 linear feet of the building façade plane.
d. On at least 30% of the ground level walls, application of materials such as brick, stone, wood (or equivalents) that provide rich details and diversity in the building design.
e. Variation in window treatments and design such that no more than 40% of an elevation has identical windows.
f. Exterior details such as at least three changes in materials and colors on each façade or artistic façade treatments.
g. Architectural and design treatments that clearly accentuate the ground floor and entry from the rest of the structure by treatments such as canopies, awnings, arcades, or porte-cocheres.
h. If applicable, a parking structure that is concealed from public view or enhanced with exterior landscaping, graphics, or artistic screening.

(2) Landscape features. Hotels shall provide at least three (3) features from the following:
a. Installation of mature trees at prominent locations, such as along entry main walkways, major streets, and outdoor dining areas.
b. High degree of landscaping that exceed city standards at the perimeter, courtyards, walkways, entryway, pool/court areas, parking areas, and other areas.
c. Incorporation of water features, public art, and unique touches into the exterior landscaping.
d. A prominent entry feature to the project featuring unique items such as fountains and public art.
e. Exterior lighting that accentuates the prominent features of the building and grounds.
(3) On-site amenities and services. Hotels shall provide at least five (5) features from the following:
a. Pool.
b. Hot tub.
c. Poolside food and drink service.
d. Lounge chairs, cabanas, and umbrellas.
e. Meeting rooms.
f. Concierge and bell service.
g. Gym or Fitness center.
h. Outdoor fire pit and eating/conversation areas.
i. Sports court(s).
j. Lap pool.
k. Shuttle service.
(4) Unique offerings. Hotels shall provide at least one (1) feature from the following:
a. Retail coffee house and/or restaurant.
b. Event space.
c. Unique recreational amenities, such as a golf simulator. d. Rooftop deck/garden.
e. Spa.
f. Professionally designed interior that incorporates the local character and features.
(d) Alternative Hotel development Standards. Hotels that provide the required hotel quality features described in subdivision (c) may utilize the following alternative development standards:
(1) Floor Area Ratio: 1.5 maximum
(2) Height: 6 stories maximum and 70 feet”

SECTION 6
Section 21.22.040 is hereby amended to read as follows:
“…
TABLE 3-3

PARKING REQUIREMENTS BY LAND USE
……
Land Use Type:

Service Uses Vehicle Spaces Required
Consumer products: repair and
maintenance
1 space for each 250 sq. ft. of gross floor area.

Copy and reproduction centers 1 space for each 400 sq. ft. of gross floor area.

Depots: bus, freight or rail Determined by conditional use permit.

Emergency shelter An emergency shelter shall provide off-street parking at a ratio of 1 space per 4 beds and/or

0.5 spaces per bedroom designed as a family unit
with children, plus 1 per staff member.

Equipment rental 1 space for each 300 sq. ft. of floor area, plus 1 space for each 1,000 sq. ft. of outdoor use area.

Hotels 1 space for each guest room up to 40 guest
rooms, plus 1 additional space for each 2 rooms
over the first 40 rooms plus one-half of the
required spaces for publically accessible
accessory uses, such as restaurants, spas, and
event centers, as dictated in Chapter 21.22 of the
Municipal Code.

Kennels, animal boarding and
veterinary clinics
1 space for each 500 sq. ft. of gross floor area,
plus 1 space for each 800 sq. ft. of boarding area.

Laundries and dry cleaning plants 1 space for each 1,000 sq. ft. of gross floor area.

Motels 1 space for each sleeping or living unit, and 1
cargo trailer space for each 5 guest rooms.

SECTION 7
If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council declares that it would have passed this ordinance and each and every section, subsection, sentence, clause or phrase not declared invalid or unconstitutional without regard

to whether any portion of the ordinance would subsequently be declared invalid or unconstitutional.

SECTION 8
The City Clerk shall certify to the adoption of this ordinance and cause it to be published as required by law. This ordinance shall become effective thirty (30) days after the date of its adoption.
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PASSED, APPROVED AND ADOPTED THIS DAY OF , 2022.

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM

HARPER & BURNS LLP
___________________________
Attorneys for the City

CITY OF FOUNTAIN VALLEY
Notice of Exemption_________________________________________________ TO: FROM:

City of Fountain Valley, Orange County, California
: (check one):

Lead Agency
If filed by applicant:

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: February 1, 2022
Members of the City Council
SUBJECT: Amendment to the “Hop On!” Senior Transportation Program Passenger Fare
EXECUTIVE SUMMARY:

The City of Fountain Valley’s “HOP ON!” Senior Transportation Program provides residents 60 years of age and older with curb-to-curb transportation within the city (and other pre-approved locations). The program is an essential service that provides seniors with access to the goods, services, and social contacts that support their needs and quality of life. Prior to March 2020, the Senior Transportation Program was very successful, providing over 1,000 trips per month. In November 2019, the passenger fare was increased from $2.00 to $3.00 per one-way trip in order to cover expenses of this growing program. Since March 2020, as a result of the COVID-19 pandemic, the number of trips has decreased to an average of 205 one-way trips per month. In an effort to encourage seniors to utilize the program again and increase ridership, the City is proposing a decrease in the passenger fare from $3.00 per one-way trip to $2.00 per oneway trip.

DISCUSSION:

The City of Fountain Valley’s “HOP ON!” Senior Transportation Program provides Fountain Valley residents 60 years of age and older with curb-to-curb transportation seven (7) days a week, 8am to 7pm. In 2019, due to the success of the “HOP ON!” Program, it was expected to operate at an annual loss of approximately $41,400. At this time, City Council approved a fare increase from $2.00 to $3.00 in an effort to offset the growing program cost due to the increased ridership.

In 2020, the Senior Transportation Program saw a severe decline in ridership due to the COVID-19 pandemic, with an average of only 288 one-way rides per month. This decline in ridership, caused by inactivity from participants in the program, resulted in a budget surplus. In 2021, due to variants of COVID-19 and program participants’ apprehension to use transportation services during those uncertain times, ridership continued to stay low, decreasing to 206 one-way rides per month. The chart below illustrates ridership from 2018 through 2021, as discussed above.

Council Action Request
Amendment to the “Hop On!” Senior Transportation Program Passenger Fare February 1, 2022

In 2020-21, Fountain Valley’s “HOP ON!” Senior Transportation Program provided active program participants with 2,767 one-way trips. In an effort to increase ridership and utilize allocated funds, while at the same time continuing to operate in a financially sustainable manner, it is recommended that the fare is decreased to $2.00 per one-way trip.

FINANCIAL ANALYSIS:

Funding for the “HOP ON!” Senior Transportation Program is derived from Orange County Transportation Authority (OCTA) Measure M2 funding and a required City of Fountain Valley General Fund match of 20 percent. In 2006, OCTA M2 was approved by local voters and is Orange County’s half-cent sales tax for transportation improvements, including Project U, which provides funding for seniors/disabled persons. One percent of net sales tax revenue is allocated to participating cities based upon the percentage of the senior population of the city as determined by the most current decennial Census information. Measure M2 covers 80% of the cost, and the City’s required match of 20% is covered by a current agreement with MemorialCare Orange Coast Medical Center (MCOCMC) and by co-pay fares paid by the rider.

The “HOP ON!” Program transportation is operated by California Yellow Cab and sponsored by MCOCMC. The current agreement with California Yellow Cab specifies a $12.00 per trip fare with the riders paying $3.00 per trip. During Fiscal Year 2021-22, the cost of the program is covered through a combination of Measure M2 funding, MCOCMC 20% contribution, MCOCMC $20,000 grant, and $3.00 trip charge. Based on the needs of the community and available funding, the City is proposing to reduce the $3.00 trip charge to $2.00 per one-way trip.

Council Action Request
Amendment to the “Hop On!” Senior Transportation Program Passenger Fare February 1, 2022

As a result of the $1.00 decrease per fare and the City not guaranteed the MCOCMC grant after fiscal year 2021-22 nor the on-going 20% contribution after fiscal year 2022- 23, the General Fund is expected to subsidize the program approximately $7,240 in Fiscal Year 2023-24. If on-going funding and one-time grant monies are continued to be received from MCOCMC, the General Fund will not have to subsidize the cost of the program in future years.

ALTERNATIVES:

Alternative No.1: Approve the “HOP ON!” Senior Transportation Program Passenger Fare at $2.00 per One-Way Trip.

Alternative No. 2: Do not approve this program amendment.

RECOMMENDATION:

Staff recommends Alternative No. 1, Approve the “HOP ON!” Senior Transportation Program Passenger Fare at $2.00 per one-way trip.

Prepared By: Ben Dieterle, Community Services Supervisor Jenni Worsham, Community Services Manager
Approved By: Rob Frizzelle, Community Services Director Fiscal Review By: Jennifer Lampman, Finance Director
Approved By: Rob Houston, City Manager

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: February 1, 2022
Members of the City Council
SUBJECT: Approve Allocating the City’s Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Allotment of $7,952,893 distributed under the American Rescue Plan Act (ARPA) to fund Government Services
EXECUTIVE SUMMARY:

On March 11, 2021 President Joe Biden signed the American Rescue Plan Act 2021 (ARPA), which launched the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) to provide $350 billion in emergency funding for state and local governments. The emergency economic stimulus bill provides fiscal aid to address the ongoing COVID-19 public health crisis. The SLFRF provides funding to meet local needs, including COVID-19 response, replacing public sector revenue loss, premium pay for essential workers, improving facilities to ensure health and safety, increase usage of outdoor spaces, as well as investing in public infrastructure and broadband. Of the $350 billion economic stimulus bill, the City will receive $7.95 million in direct one-time funding.

DISCUSSION:

The American Rescue Plan Act of 2021 (ARPA) is a $1.9 trillion economic stimulus bill. Within the ARPA, the Coronavirus Local Fiscal Recovery Fund (SLFRF) provides $350 billion for states, municipalities, counties, tribes, and territories. Of the $350 billion, the City will receive an estimated $7.95 million in one-time funding. These funds were designed to allow local governments the resources needed to fight the pandemic and support families and businesses struggling with its public health and economic impact; maintain vital public services, even amid declines in revenue, and; build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity.

The U.S. Treasury recently issued the Final Rule on how recipients of ARPA funds can allocate and report on the funds received. The Final Rule offers greater flexibility and simplicity than previously outlined in the Interim Final Rule, specifically for agencies whose allocation was less than $10 million. Under the Final Rule, agencies may use the SLFRF funds to replace lost public sector revenue and provide government services up to the amount of revenue loss due to the pandemic. To determine revenue loss, agencies may take the standard allowance up to $10

American Rescue Plan Funds
February 1, 2022

million in aggregate, not to exceed their award amount, or calculate their jurisdiction’s specific revenue loss each year using Treasury’s formula which compares actual revenue to a counterfactual trend. Based on this calculation, the City was eligible to use all SLFRF funds received to replace lost revenue as outlined in the Interim Final Rule.

By offering agencies the opportunity to use up to $10 million to replace lost revenue and use the funds for “government services”, the Final Rule offers flexibility on the use of funds and reporting requirements, with the only restrictions being that funds cannot be used for the purpose of reducing an accrued, unfunded liability in a pension fund, payments for debt service or replenishments of rainy day funds. Government services generally include any service traditionally provided by a government, including construction of roads and other infrastructure, provision of public safety and other services, and health and educational services. Funds spent under government services are subject to streamlined reporting and compliance requirements under the Final Rule.

With the recent changes to the Final Rule and streamlined reporting requirements for funds used for government services, staff is recommending allocating the City’s full allotment to the funding of public safety salaries. Doing so would significantly reduce staff time needed to comply with the Treasury’s reporting requirements and allow the City greater flexibility to use funds previously budgeted for public safety personnel costs for other projects and programs citywide in support of the City’s Strategic Plan goals.

FINANCIAL ANALYSIS:

Funding of the $7,952,893 will be received in two disbursements. The first $3.9 million was received in June 2021 with the second disbursement anticipated in June 2022. Funding opportunities are go-forward from March 3, 2021 and must be obligated by December 31, 2024 and expended by December 31, 2026.

Staff is recommending allocating the full allotment to public safety personnel expenses which will allow the City to take advantage of streamlined reporting requirements and repurpose funds previously budgeted for public safety personnel costs to other unfunded programs in support of the City’s Strategic Plan goals.

ALTERNATIVES:

Alternative No. 1: Approve Allocating the City’s Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Allotment of $7,952,893 distributed under the American Rescue Plan Act (ARPA) to fund Government Services, Specifically Public Safety Personnel Expenses and Authorize the Finance Director to Comply with all Reporting Requirements Outlined by the Treasury Department.

Alternative No. 2: Do Not Approve the Proposed Use of Funds and Provide Direction to Staff.

American Rescue Plan Funds
February 1, 2022

RECOMMENDATION:

It is recommended that the City Council Approve Allocating the City’s Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Allotment of $7,952,893 distributed under the American Rescue Plan Act (ARPA) to fund Government Services, Specifically Public Safety Personnel Expenses and Authorize the Finance Director to Comply with all Reporting Requirements Outlined by the Treasury Department.

Prepared by: Jennifer Lampman, Director of Finance/Treasurer Approved by: Rob Houston, City Manager