Fountain Valley City Council
May 16, 2023

8572 Talbert Avenue Bonanni Residential Project – Mitigated Negative Declaration March 31, 2023 Mitigation Monitoring and Reporting Plan Page 1

1.0 MITIGATION MONITORING AND REPORTING PLAN

1.1 Introduction
This is the Mitigation Monitoring and Reporting Plan (MMRP) for the proposed Bonanni residential project that is proposed at 8572 Talbert Avenue. The MMRP has been prepared pursuant to the requirements of Public Resources Code §21081.6 which, among other things, states that when a governmental agency adopts or certifies a CEQA document that contains the environmental review of a proposed project, “The public agency shall adopt a reporting or monitoring program for the changes made to the project or conditions of project approval, adopted in order to mitigate or avoid significant effects on the environment. The reporting or monitoring program shall be designed to ensure compliance during project implementation.” The City of Fountain Valley is the lead agency for the project, and is therefore, responsible for administering and implementing the MMRP. The decision-makers must define specific reporting and/or monitoring requirements to be enforced during project implementation prior to final approval of the proposed project.

1.2 Project Overview
The City of Fountain Valley, as the Lead Agency, has prepared a Mitigated Negative Declaration (MND) for the Bonanni Residential project pursuant to the California Environmental Quality Act. The discretionary actions required from the City of Fountain Valley include a zone change from CP (Commercial, Professional Office) to GH (Garden Homes), approval of Tentative Tract Map 19245 to allow the development of 15 garden homes, a Conditional Use Permit (CUP) to allow the development of single-family homes in the GH zone and a Planned Development overlay to allow a site coverage of 35.3% rather than a maximum of 30%. The project is located at 8572 Talbert Avenue and totals approximately 1.41 acres. The project site is currently developed with the Courreges Ranch that includes a single‐story residential building and a private auto garage. The project applicant proposes the development of 15 market rate, two-story single-family detached residential units at a density of 10.6 dwelling units per acre.

The project proposes 63 parking spaces, including 30 spaces in the enclosed garages, 26 spaces in the private driveways and seven (7) guest parking spaces. Access to the project site would be from Talbert Avenue that extends along and forms the north project boundary. The project would construct two new private streets that would extend south from Talbert Avenue to the southern end of the site where each street turns into a driveway at the residential unit at the south end of each street. The project proposes four (4) different floor plans and range from 1,810 square feet up to 2,240 square feet. The floor plans include 3 bedrooms, 2.5 baths and a loft to 4 bedrooms and 3.5 baths to 3 bedrooms with 3.5 baths. All units would have 2-car garages and the lots range from 3,202 square feet to 4,454 square feet. The units would have a front yard setback that ranges from 15 feet to 30 feet, a rear yard setback that ranges from 14’9” to 20’10” feet, and 4’ to 5’ side-yard setbacks. The side yard setbacks for the four residential units adjacent to Talbert Avenue range from 10’ to 12’. A 6’ tall concrete block wall is proposed along the project perimeter and on the property line between each residential unit. Low voltage landscape lighting is proposed for the landscape area between the two project driveways adjacent to Talbert Avenue. The overall floor area ratio (FAR) is 0.47. The architectural style is American-Colonial. A homeowner’s association would maintain the common open space and private streets. The project is scheduled to be constructed in one phase with construction tentatively scheduled to start in June 2023 and completed in June 2024.

Exhibit B

8572 Talbert Avenue Bonanni Residential Project – Mitigated Negative Declaration March 31, 2023 Mitigation Monitoring and Reporting Plan Page 2

1.3 Monitoring and Reporting Procedures
This MMRP includes the following information: (1) mitigation measures that will either eliminate or lessen the potential impact from the project; (2) the monitoring milestone or phase during which the measure should be complied with or carried out; (3) the enforcement agency responsible for monitoring mitigation measure compliance; and (4) the initials of the person verifying the mitigation measure was completed and the date of verification.

The MMRP will be in place through all phases of a project including project design (preconstruction), project approval, project construction, and operation (both prior to and postoccupancy). The City will ensure that monitoring is documented through periodic reports and that deficiencies are promptly corrected. The designated environmental monitor will track and document compliance with mitigation measures, note any problems that may result, and take appropriate action to rectify problems.

Each mitigation measure is listed and categorized by impact area, with an accompanying discussion of:
• The phase of the project during which the measure should be monitored; ❑ Project review and prior to project approval
❑ During grading or building plan check review and prior to issuance of a grading or building permit
❑ On-going during construction
❑ Throughout the life of the project
• The enforcement agency; and
• The initials of the person verifying completion of the mitigation measure and date.

The MMP is provided as Table 1 (Mitigation and Monitoring Reporting Program).

Exhibit B

8572 Talbert Avenue Bonanni Residential Project - Mitigated Negative Declaration March 31, 2023 Mitigation Monitoring and Reporting Plan Page 3
Table 1
8572 Talbert Avenue Bonanni Residential Project
Mitigation Monitoring and Reporting Plan
.

Mitigation
Number Mitigation Measure Timing
Implementation
Responsibility
Monitoring/
Responsibility
Verification of Compliance
Initials Date Remarks
Air Quality

1. The project contractor shall
implement the following dust
control measures throughout
project demolition, grading and
construction:
• Exposed surfaces shall be
watered a minimum of 3
times/day.

On-going
throughout project
construction
Developer City of Fountain
Valley Building
Department

2. The project contractor shall
implement the following measures
throughout project demolition,
grading and construction:
• Apply soil stabilizers or
moisten inactive areas.
• Cover all stock piles with
tarps at the end of each day
or as needed.
• Provide water spray during
loading and unloading of
earthen materials.
• Minimize in-out traffic from
construction zone.
• Cover all trucks hauling dirt,
sand, or loose material and
require all trucks to
maintain at least two feet of
freeboard.

On-going
throughout project
construction
Developer City of Fountain
Valley Building
Department
Exhibit B

8572 Talbert Avenue Bonanni Residential Project - Mitigated Negative Declaration March 31, 2023 Mitigation Monitoring and Reporting Plan Page 4
Table 1
8572 Talbert Avenue Bonanni Residential Project
Mitigation Monitoring and Reporting Plan
.

Mitigation
Number Mitigation Measure Timing
Implementation
Responsibility
Monitoring/
Responsibility
Verification of Compliance
Initials Date Remarks
• Sweep streets daily if
visible soil material is
carried out from the
construction site.

Biological Resources

3. Nesting Birds:
• All necessary clearing and
removal of vegetation for
project construction shall be
conducted outside of the
typical nesting season for
birds (February 1 through
September 1).
• If any construction activities
are scheduled to occur
during the nesting bird
season (February 1 through
September 1), a qualified
biologists shall conduct a
survey to determine
whether there are any
active bird nests within the
on-site trees.
• The nesting bird survey
shall occur no more than 7-
days prior to the start of
construction and include a
search for nesting birds
Prior to the start of
construction
Developer City of Fountain
Valley Building
Department
Exhibit B

8572 Talbert Avenue Bonanni Residential Project - Mitigated Negative Declaration March 31, 2023 Mitigation Monitoring and Reporting Plan Page 5
Table 1
8572 Talbert Avenue Bonanni Residential Project
Mitigation Monitoring and Reporting Plan
.

Mitigation
Number Mitigation Measure Timing
Implementation
Responsibility
Monitoring/
Responsibility
Verification of Compliance
Initials Date Remarks
within the project site.
• If any active nests are
observed, they should be
avoided until after all young
have fledged from the nest,
or work shall be monitored
by a biologist to ensure
against negative impacts to
nesting birds.

Cultural Resources

4. The project developer shall retain
a qualified professional
archaeologist who meets U.S.

Secretary of the Interior’s
Professional Qualifications and
Standards, to conduct an
Archaeological Sensitivity Training
for construction personnel prior to
commencement of excavation
activities. The training session
shall be carried out by a cultural
resource professional with
expertise in archaeology, who
meets the U.S. Secretary of the
Interior’s Professional
Qualifications and Standards. The
training session shall include a
handout and focus on how to
identify archaeological resources
that may be encountered during
Prior to the start of
construction
Developer City of Fountain
Valley Building
Department
Exhibit B

8572 Talbert Avenue Bonanni Residential Project - Mitigated Negative Declaration March 31, 2023 Mitigation Monitoring and Reporting Plan Page 6
Table 1
8572 Talbert Avenue Bonanni Residential Project
Mitigation Monitoring and Reporting Plan
.

Mitigation
Number Mitigation Measure Timing
Implementation
Responsibility
Monitoring/
Responsibility
Verification of Compliance
Initials Date Remarks
earthmoving activities and the
procedures to be followed in such
an event, the duties of
archaeological monitors, and the
general steps a qualified
professional archaeologist would
follow in conducting a salvage
investigation if one is necessary.

5. In the event that archaeological
resources are unearthed during
ground-disturbing activities,
ground-disturbing activities shall
be halted or diverted away from
the vicinity of the find so that the
find can be evaluated. A buffer
area of at least 20 feet shall be
established around the find where
construction activities shall not be
allowed to continue until a
qualified archaeologist has
examined the newly discovered
artifact(s) and has evaluated the
area of the find. Work shall be
allowed to continue outside of the
buffer area. All archaeological
resources unearthed by project
construction activities shall be
evaluated by a qualified
professional archaeologist hired
by the project developer, who
meets the U.S. Secretary of the
Interior’s Professional
On-going
throughout project
construction
Developer City of Fountain
Valley Building
Department
Exhibit B

8572 Talbert Avenue Bonanni Residential Project - Mitigated Negative Declaration March 31, 2023 Mitigation Monitoring and Reporting Plan Page 7
Table 1
8572 Talbert Avenue Bonanni Residential Project
Mitigation Monitoring and Reporting Plan
.

Mitigation
Number Mitigation Measure Timing
Implementation
Responsibility
Monitoring/
Responsibility
Verification of Compliance
Initials Date Remarks
Qualifications and Standards.

Should the newly discovered
artifacts be determined to be
prehistoric, Native American
Tribes/Individuals shall be
contacted and consulted, and
Native American construction
monitoring shall be initiated. The
City shall coordinate with the
archaeologist to develop an
appropriate treatment plan for the
resources. The plan may include
implementation of archaeological
data recovery excavations to
address treatment of the resource
along with subsequent laboratory
processing and analysis.

6. The project developer’s
archaeological monitor, under the
direction of a qualified professional
archaeologist who meets the U.S.

Secretary of the Interior’s
Professional Qualifications and
Standards, shall prepare a final
report at the conclusion of
archaeological monitoring. The
report shall be submitted to the
City, the South Central Costal
Information Center and
representatives of other
appropriate or concerned
agencies to signify the satisfactory
Prior to the
issuance of the
first certificate of
occupancy
Developer City of Fountain
Valley Building
Department
Exhibit B

8572 Talbert Avenue Bonanni Residential Project - Mitigated Negative Declaration March 31, 2023 Mitigation Monitoring and Reporting Plan Page 8
Table 1
8572 Talbert Avenue Bonanni Residential Project
Mitigation Monitoring and Reporting Plan
.

Mitigation
Number Mitigation Measure Timing
Implementation
Responsibility
Monitoring/
Responsibility
Verification of Compliance
Initials Date Remarks
completion of the project and
required mitigation measures. The
report shall include a description
of resources unearthed, if any,
evaluation of the resources with
respect to the California Register
and CEQA, and treatment of the
resources.

Noise

7. The following measures shall be
implemented at the start of
construction and continued
through project completion:
• All stationary construction
equipment shall be located
a minimum of 75 feet from
the adjacent occupied
residential residences
buildings;
• All construction equipment
shall be shut off when not in
use; and
• Electrical power shall run
air compressors and similar
power tools.

Prior to the start of
construction and
through project
completion
Developer City of Fountain
Valley Building
Department

8. Small bulldozers (80-100
horsepower) only shall operate
within 15 feet of the nearest offsite structures.

During project
grading
Developer City of Fountain
Valley Building
Department
Exhibit B

8572 Talbert Avenue Bonanni Residential Project - Mitigated Negative Declaration March 31, 2023 Mitigation Monitoring and Reporting Plan Page 9
Table 1
8572 Talbert Avenue Bonanni Residential Project
Mitigation Monitoring and Reporting Plan
.

Mitigation
Number Mitigation Measure Timing
Implementation
Responsibility
Monitoring/
Responsibility
Verification of Compliance
Initials Date Remarks
Public Services

9. Stop signs and a Watch for
Children shall be posted at the exit
of both driveways prior to the
issuance of the first certificate of
occupancy.

Prior to the
issuance of the
first certificate of
occupancy
Developer City of Fountain
Valley Building
Department

10. Vegetation growth at the exit of
both driveways shall be monitored
to ensure that drivers exiting the
site have a clear view of Talbert
Avenue in both directions without
any interference of project
landscaping.

On-going
throughout the life
of the project or
the existence of
landscaping at the
project driveways
Developer City of Fountain
Valley Building
Department
Tribal Cultural Resources

11. Prior to the commencement of any
ground disturbing activity at the
project site, the project applicant
shall retain a Native American
Monitor approved by the
Gabrieleño Band of Mission
Indians-Kizh Nation. A copy of the
executed contract shall be
submitted to the City of Fountain
Valley Planning and Building
Department prior to the issuance
of any permit necessary to
commence a ground-disturbing
activity. The Tribal monitor shall
only be present on-site during the
construction phases that involve
Prior to the start of
any ground
disturbance
Developer City of Fountain
Valley Building
Department and
Planning
Department
Exhibit B

8572 Talbert Avenue Bonanni Residential Project - Mitigated Negative Declaration March 31, 2023 Mitigation Monitoring and Reporting Plan Page 10
Table 1
8572 Talbert Avenue Bonanni Residential Project
Mitigation Monitoring and Reporting Plan
.

Mitigation
Number Mitigation Measure Timing
Implementation
Responsibility
Monitoring/
Responsibility
Verification of Compliance
Initials Date Remarks
ground-disturbing activities.

Ground disturbing activities are
defined by the Tribe as activities
that may include, but are not
limited to, pavement removal,
potholing or auguring, grubbing,
tree removals, boring, grading,
excavation, drilling, and trenching,
within the project area. The Tribal
Monitor shall complete daily
monitoring logs that shall provide
descriptions of the day’s activities,
including construction activities,
locations, soil, and any cultural
materials identified. The on-site
monitoring shall end when all
ground-disturbing activities on the
project site are completed, or
when the Tribal Representatives
and Tribal Monitor have indicated
that all upcoming grounddisturbing activities at the project site have little to no potential to
impact Tribal Cultural Resources.

12. Upon discovery of any Tribal
Cultural Resources, construction
activities shall cease in the
immediate vicinity of the find (not
less than the surrounding 100
feet) until the find can be
assessed. All Tribal Cultural
Resources unearthed by project
On-going during
ground disturbing
activities
Developer City of Fountain
Valley Building
Department and
Planning
Department
Exhibit B

8572 Talbert Avenue Bonanni Residential Project - Mitigated Negative Declaration March 31, 2023 Mitigation Monitoring and Reporting Plan Page 11
Table 1
8572 Talbert Avenue Bonanni Residential Project
Mitigation Monitoring and Reporting Plan
.

Mitigation
Number Mitigation Measure Timing
Implementation
Responsibility
Monitoring/
Responsibility
Verification of Compliance
Initials Date Remarks
activities shall be evaluated by the
qualified archaeologist and Tribal
monitor approved by the
Consulting Tribe. If the resources
are Native American in origin, the
Consulting Tribe shall retain
it/them in the form and/or manner
the Tribe deems appropriate, for
educational, cultural and/or
historic purposes. If human
remains and/or grave goods are
discovered or recognized at the
project site, all ground disturbance
shall immediately cease, and the
county coroner shall be notified
per Public Resources Code
Section 5097.98, and Health &
Safety Code Section 7050.5.

Human remains and grave/burial
goods shall be treated alike per
California Public Resources Code
Section 5097.98(d)(1) and (2).

Work may continue on other parts
of the project site while evaluation
and, if necessary, mitigation takes
place (CEQA Guidelines Section
15064.5[f]). If a non-Native
American resource is determined
by the qualified archaeologist to
constitute a “historical resource” or
“unique archaeological resource,”
time allotment and funding
Exhibit B

8572 Talbert Avenue Bonanni Residential Project - Mitigated Negative Declaration March 31, 2023 Mitigation Monitoring and Reporting Plan Page 12
Table 1
8572 Talbert Avenue Bonanni Residential Project
Mitigation Monitoring and Reporting Plan
.

Mitigation
Number Mitigation Measure Timing
Implementation
Responsibility
Monitoring/
Responsibility
Verification of Compliance
Initials Date Remarks
sufficient to allow for
implementation of avoidance
measures, or appropriate
mitigation, must be available. The
treatment plan established for the
resources shall be in accordance
with CEQA Guidelines Section
15064.5(f) for historical resources
and PRC Sections 21083.2(b) for
unique archaeological resources.

Preservation in place (i.e.,
avoidance) is the preferred
manner of treatment. If
preservation in place is not
feasible, treatment may include
implementation of archaeological
data recovery excavations to
remove the resource along with
subsequent laboratory processing
and analysis. Any historic
archaeological material that is not
Native American in origin shall be
curated at a public, non-profit
institution with a research interest
in the materials, such as the
Natural History Museum of Los
Angeles County or the Fowler
Museum, if such an institution
agrees to accept the material. If
no institution accepts the
archaeological material, it shall be
offered to a local school or
Exhibit B

8572 Talbert Avenue Bonanni Residential Project - Mitigated Negative Declaration March 31, 2023 Mitigation Monitoring and Reporting Plan Page 13
Table 1
8572 Talbert Avenue Bonanni Residential Project
Mitigation Monitoring and Reporting Plan
.

Mitigation
Number Mitigation Measure Timing
Implementation
Responsibility
Monitoring/
Responsibility
Verification of Compliance
Initials Date Remarks
historical society in the area for
educational purposes.

Exhibit B

RESOLUTION NO. 23-11

A RESOLUTION OF THE FOUNTAIN VALLEY PLANNING
COMMISSION APPROVING TENTATIVE TRACT MAP NO. 19245,
PRECISE PLAN NO. 567 AND CONDITIONAL USE PERMIT NO.
1907 FOR THE BONANNI RESIDENTIAL PROJECT LOCATED AT
8572 TALBERT AVENUE
WHEREAS, Chris Segesman with Bonanni Development, Inc., (“Applicant”) has submitted a request to subdivide two (2) properties totaling 1.41 acres for the development of fifteen (15) detached, single-family homes located at 8572 Talbert Avenue (“Project”); and
WHEREAS the Project includes the following applications in accordance with the Fountain Valley Municipal Code (FVMC):
• Per FVMC 21.34, a Zoning Map Amendment is required to rezone the property from CP – Professional Office to GH - Garden Homes. • Per FVMC Section 21.66.030(a), a Tentative Tract Map is required for the subdivision of an existing parcel into two (2) or more parcels in compliance with FVMC Chapters 21.66 through 21.84. The Tentative Tract Map would divide the existing 1.41 acre parcel into fifteen (15) single-family lots and one (1) lot for the private streets.
• Per FVMC Chapter 21.44, a Precise Plan is required for the development of fifteen (15) single-family dwelling units.
• Per FVMC Section 21.08.030 Table 2-2, a Conditional Use Permit (CUP) is required for the development of single-family dwellings in the GH - Garden Home zoning district.
• Approval of a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Plan (MMRP) to address the environmental impacts associated with this project.
• Approval of a Planned Unit Overlay for the approval of lot coverage requirement from a maximum of 30% to 35.3%.

WHEREAS, the Project is located on two (2) parcels (APN# 112-781-73 & 74), commonly known as 8572 Talbert Avenue, which is formally describes as “That Portion of the Northwest Quarter of the Northeast Quarter of Section 36, Township 5 South, Range 11 West, in the Rancho Las Bolsas, in the City of Fountain Valley, County of Orange, State of California” (“Site”); and

Tentative Tract Map No. 19245, Precise Plan No. 567, Conditional Use Permit No. 1907 Resolution No. 23-11

WHEREAS, the City has complied with the requirements of the Government Code Section 65300 et seq., the current State of California General Plan Guidelines, and the City’s applicable ordinances with respect to review and consideration of the proposed Project and Amendments; and
WHEREAS, per the California Environmental Quality Act (CEQA), the Fountain Valley Planning Commission first considered the accompanying Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Plan (MMRP) prepared for the Project in a separate action, as contained in Resolution 23-09, at its noticed public hearing on April 12, 2023; and
WHEREAS, the Fountain Valley Planning Commission also considered Zoning Map Amendment No. 434 (Resolution 23-10), at its noticed public hearing on April 12, 2023; and
WHEREAS, the Zoning Map Amendment would change the Zoning Map designation from CP – Professional Office to GH - Garden Homes; and WHEREAS, the Planning Commission has imposed conditions, attached as Exhibit 1 herein, pursuant to the CEQA Guidelines, for the, Precise Plan, Conditional Use Permit, and Tentative Tract Map processes, which mitigate potential negative effects of the proposed Project; and
WHEREAS, the Planning Commission has determined that the proposed Precise Plan, Conditional Use Permit, and Tentative Tract Map are consistent with the Fountain Valley General Plan, as noted below; and
WHEREAS, this approval is contingent upon the City Council approval of Zoning Map Amendment No. 434 and the MND / MMRP; and
WHEREAS, the Fountain Valley Planning Commission considered the Project at its noticed public hearing on April 12, 2023.

NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

SECTION 1
The Planning Commission finds that due notice of the public hearings in the Council Chambers, City Hall, 10200 Slater Avenue, was given as required by the Fountain Valley Municipal Code (FVMC), Title 21, and the Statutes of the State of California.

SECTION 2
Prior to consideration of the Project and as contained in Resolution No. 23-11, the Planning Commission found that the Project would not have a significant adverse effect upon the environment and recommended approval of the MND and MMRP prepared for

Tentative Tract Map No. 19245, Precise Plan No. 567, Conditional Use Permit No. 1907 Resolution No. 23-11

the Project. The Planning Commission further found that the MMRP will ensure compliance during project implementation in that changes to the Project and/or mitigation measures have been incorporated into the Project and are fully enforceable through permit conditions, agreements, or other measures as required by Public Resources Code Section 21081.6.

The MND was circulated for public review from March 23, 2023, to April 11, 2023, and made available to the public and the Planning Commission for review and consideration.

The Planning Commission has reviewed the MND and MMRP and has found that the environmental document considers all environmental effects of the proposed Project, is complete and adequate, and fully complies with all requirements of CEQA and the CEQA Guidelines.

The Planning Commission, as the Lead Agency, arrived at its independent judgement and found that on the basis of the MND and any comments received that there is no substantial evidence that the Project will have a significant adverse impact on the environment provided that the mitigation measures identified in the environmental document are incorporated into the Project.

SECTION 3
The Project requires a Precise Plan of Design application as required by FVMC

21.44.030.

Findings and Supporting Facts: The Planning Commission finds that the subject application meets the criteria of a Precise Plan Permit found in Chapter 21.44 of the FVMC as follows:

1. The design and layout of the proposed development would:
a. Be consistent with the actions, goals, objectives, and policies of the general plan, any applicable specific plan, and the development and design standards/guidelines of the GH – Garden Home zoning district.

The Project will protect and enhance the City’s existing positive visual attributes by enhancing the existing well maintained neighborhoods by the construction of fifteen (15) new detached single-family homes (Goal 2.5/Policy 2.5.1).

The Project will improve architectural quality of development within the City by promoting residential development which achieves harmony without monotony in the built environment (Goal 2.6/Policy 2.6.1).

The Project is consistent in layout, separation, design, height, and style to nearby residences and which will provide additional housing opportunities for current and future residents. The proposed Project will create a safe environment by providing new infrastructure including storm drain, sewer, and

Tentative Tract Map No. 19245, Precise Plan No. 567, Conditional Use Permit No. 1907 Resolution No. 23-11

off-site improvements such as new sidewalks and street lights. The Project has been designed to meet the development standards of the GH zoning district. b. Not interfere with the use and enjoyment of neighboring, existing or future developments, and would not create traffic or pedestrian hazards.

The Project is consistent in layout, separation, design, height, and style to nearby residences and which will provide additional housing opportunities for current and future residents. The Project has been designed to meet the development standards of the GH zoning district and will not interfere with the use and enjoyment of the existing or future neighboring developments. Access will be off of two (2) private streets designed to City standards with regards to street and sidewalk width and an appropriate vehicle turnaround area. c. Provide a desirable environment for its occupants and visiting public as well as its neighbors through good/proper aesthetic use of materials, texture and color, and would remain aesthetically appealing and retain an appropriate level of maintenance.

The Project is consistent in layout, separation, design, height, and style to nearby residences. The fifteen (15) homes will be designed with with an American farmhouse architectural influence similar to high-end remodels of existing single-family homes in the city. The Project will be subject to the maintenance standards enforced through a private Home Owners Association (HOA).

2. The architectural design of the proposed structure(s) would be compatible with the character of the surrounding neighborhood and would maintain and enhance the attractive, harmonious, and orderly development contemplated by the actions, goals, objectives, and policies of the general plan, any applicable specific plan, and this chapter.

The architectural design of the single-family dwellings, including all colors, materials, and design elements, will be consistent throughout development. The Project is consistent in layout, separation, design, height, and style to nearby residences. The fifteen (15) homes will be designed with an American farmhouse architectural influence similar to high-end remodels of existing single-family dwellings in the city. This will provide for an attractive, harmonious, and orderly development contemplated by the actions, goals, objectives, and policies of the general plan and the zoning code.

3. The proposed development would not:
a. Be detrimental to the public convenience, health, interest, safety, or welfare, or materially injurious to the properties or improvements in the immediate vicinity.

Tentative Tract Map No. 19245, Precise Plan No. 567, Conditional Use Permit No. 1907 Resolution No. 23-11

The proposed Project will create a safe environment by providing new infrastructure throughout the Project area to include, but is not limited to, storm drain and sewer, and off-site improvements such as new sidewalks and street lights. In addition, the Amendments require and the Project has been designed to comply with contemporary building, safety, water quality, and energy efficiency standards. In addition, the Project will not be detrimental to the public health, safety or welfare, nor will it be materially injurious to properties or improvements in the vicinity, as the conditions of approval and the mitigation measures in the Mitigation Monitoring and Reporting Plan address potential impacts during the construction process.
b. Substantially depreciate property values in the immediate vicinity or interfere with the use or enjoyment of property in the surrounding neighborhood, because of excessive dissimilarity or inappropriateness of design in relation to the surrounding neighborhood.

The Project will add fifteen (15) market-rate, single-family dwellings to a currently vacant property. The architecture of the model homes has been designed with an American farmhouse influence similar to high-end remodels of existing single-family dwellings in the city but not seen as a planned development. The homes have been appropriately spaced similar to detached homes in the vicinity. Also, this new architectural look will give potential home buyers additional options in the city of purchasing new homes.

4. The proposed project has been reviewed in compliance with the provisions of the California Environmental Quality Act (CEQA) and the City’s Environmental Review Procedures.

The proposed project has been reviewed in compliance with the provision of the California Environmental Quality Act (CEQA) and the City’s Environmental Review Procedures as noted above in Section 2.

SECTION 4
The Project requires a Conditional Use Permit application as required by FVMC

21.08.030 Table 2-2.

Findings and Supporting Facts: - The Planning Commission finds that the subject application, as modified by City Staff, meets the criteria for a Conditional Use Permit found in Chapter 21.36 of the Fountain Valley Municipal Code as follows:

1. The proposed use is allowed within the respective zoning district with the approval of a Conditional Use Permit and complies with all other applicable provisions of the Development Code and the Municipal Code.

Tentative Tract Map No. 19245, Precise Plan No. 567, Conditional Use Permit No. 1907 Resolution No. 23-11

The approval of a CUP would permit the development of fifteen (15) single-family dwellings in the GH – Garden Home zoning district.

The proposed garden homes will be located adjacent to the Shadow Lane townhome development zoned GH, Garden Homes to the south and west. The proposed fifteen (15) garden homes are two-story, detached single-family dwellings and are designed, setback, and located in a manner similar to the adjacent garden home developments.

2. The proposed use is consistent with the actions, goals, objectives, and policies of the General Plan and any applicable specific plan.

With the approval Zoning Map Amendment, future development of the residential dwelling units would be designed to be compatible with the scale and character of the established neighborhoods. The proposed density level of the Project is 10.68 units to the acre. The Project proposes a private street that meets all the required standards of the City’s Municipal Code that can adequately serve the movement of people and pedestrians. The development of the Project will provide additional housing will that assist in meeting the regional housing need.

With the approval of the Zoning Map Amendment classification, the Project will be consistent with the General Plan and the Zoning Map.

Policy 2.6.1 directs the City to “Promote residential, commercial and industrial development which achieves harmony without monotony in the built environment.” As stated above, the proposed community will bring new single-family detached homes in the GH zone adjacent to other GH developments. The American farmhouse architectural style offered on the model homes presents a new and trending design option for home buyers.

Policy 2.7.1 states that residential development should “encourage creative site planning in residential development offering open space for semi-private, passive and active recreational uses.” As mentioned above, the Project will include a 1.12- acre public park in addition to the proposed residential homes. The addition of open space is consistent with Goal 2.7 of this project being a well-designed new residential development.

Policy 2.9.1 directs the City to “encourage landscaping to enhance streetscapes.” The proposed development includes offsite improvements to a portions of Lots7 & 8 along Talbert Avenue consisting of an enhanced landscaped area with a meandering decomposed granite (DG) walkway that includes a pet waste station.

The addition enhanced landscaping would be consistent with Goal 2.9 of the General Plan as the project encourages landscaping to enhance streetscapes.

3. The design, location, shape, size, and operating characteristics of the proposed

Tentative Tract Map No. 19245, Precise Plan No. 567, Conditional Use Permit No. 1907 Resolution No. 23-11

use are compatible with the existing and future land uses in the vicinity.

The fifteen (15) detached single-family homes are two-story, detached singlefamily dwellings, are consistent with the adjacent garden home zoning districts and are designed, setback, and located in a similar manner.

4. The subject site is physically suitable for the type and density/intensity of use being proposed including the provision of public access (e.g., width and pavement type), facilities, and utilities (e.g., drainage, fire protection, sewers, and water), shape, size, the absence of physical constraints, and compatibility with adjoining land uses.

The site is physically suitable for this type of development, in that it is relatively flat in topography and has adequate access to public streets and is developed at a density permitted on a 1.41 acre project site at 10.68 units per acre. One (1) singlefamily home plus several small accessory structures are present and will be demolished for the project.

Infrastructure and utilities are accessible from Talbert Avenue adjacent to the project and include, but not limited to, water service, storm drain and sewer, and off-site improvements such as new sidewalks and street lights will be provided.

Private utilities for drainage, fire protection, sewers, and water will be provided to serve the demands of the Project.

5. Granting the Conditional Use Permit would not be detrimental to the public convenience, health, interest, safety, or welfare, or injurious to persons, property, or improvements in the vicinity and zoning district in which the property is located.

The project site is located within coyote habitat, which increases the potential for human and coyote conflict. The project developer should disclose in any Homeowners Association documents about the presence of coyote habitat with the project site and reference local coyote call center numbers and the City s Coyote Management Plan. The project site is located in an area with a high rate of vehicular traffic due to Talbert Avenue being a major thoroughfare to local freeways. Courreges Elementary school and Fulton Middle school are located in close proximity to the project site. During the school year a high rate of elementary age students use the sidewalk along Talbert Avenue, which crosses in front of the project site entry driveways. The project site poses a traffic safety concern based on these two issues, therefore Mitigation Measure #9 includes safety signage and #10 regarding driveway visibility and overgrown vegetation have been included in the conditions of approval for this project.

6. The proposed project has been reviewed in compliance with the provisions of the California Environmental Quality Act (CEQA) and the city’s environmental review procedures.

Tentative Tract Map No. 19245, Precise Plan No. 567, Conditional Use Permit No. 1907 Resolution No. 23-11

The proposed project has been reviewed in compliance with CEQA and is categorically exempt per Section 2.

7. By signing this Resolution, the applicant has demonstrated his/her understanding of the conditions imposed in the Conditional Use Permit, and attached as Exhibit 1 herein, granted to him/her and has agreed on the record to abide by those conditions.

SECTION 5
The Project requires the filing of a Tentative Tract Map as required by FVMC 21.70 Tentative Map Filing and Processing.

Findings and Supporting Facts: - The Planning Commission finds that the subject application meets the criteria for a Tentative Map found in Chapter 21.70 of the Fountain Valley Municipal Code. The review authority may approve a tentative map only when it shall first find that the proposed subdivision, together with the provisions for its design and improvement, is consistent with the general plan, and any applicable specific plan, and that none of the findings for denial in subsection (3) of this section can be made. The findings shall apply to each proposed parcel as well as the entire subdivision, including any parcel identified as a designated remainder in compliance with Map Act Section 66424.6.

Findings Requiring Denial. A tentative map shall be denied if the review authority makes any of the following findings:

1. The proposed subdivision including design and improvements is not consistent with the general plan or any applicable specific plan.

With the approval of the Zoning Map Amendment, the Tentative Tract Map will be consistent with the General Plan and the zoning ordinance. Future development of the residential dwelling units would be compatible with the scale and character of the established neighborhoods. The proposed density level of the Project is

10.68 units to the acre. The Tentative Tract Map proposes a private street that meet all the required standards of the City’s Municipal Code that can adequately serve the movement of people and pedestrians through the City.

2. The site is not physically suitable for the type or proposed density of development.

As detailed in the Staff report for the Project, the Project is of an appropriate size (1.41 acres) and is adequately designed to accommodate fifteen (15) garden homes. The proposed density is 10.68 dwelling units per acre, which is lower than the maximum allowed by the GH zoning district of 10.8 dwelling units per acre.

Tentative Tract Map No. 19245, Precise Plan No. 567, Conditional Use Permit No. 1907 Resolution No. 23-11

Safe access to the residential development is provided by two (2) private streets.

Utilities will be provided to serve the demands of the Project.

3. The design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or injure fish or wildlife or their habitat.

The subdivision design and improvements proposed in the Tentative Tract Map are not likely to cause substantial environmental damage nor substantially injure fish or wildlife or their habitat because as noted in Section 2 and after CEQA compliance, the environmental impacts to any significant habitat of a rare or endangered species of plant, animal, or insect, or any fragile or unique biotic community are at a less-than-significant level. As such, it is not anticipated that the Project will cause a substantial environmental injury to wildlife or their habitat.

4. The design of the subdivision or type of improvements is likely to cause serious public health or safety problems.

The subdivision design and type of improvements proposed in the Tentative Tract Map are not likely to cause serious public health problems because all development and public improvements will be performed per the requirements of all applicable standards and codes, including the zoning and building codes, and mitigation measures identified in the Mitigated Negative Declaration.

5. The design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large for access through or use of, property within the proposed subdivision.

The Project will not conflict with any easements acquired by the public at large.

6. The discharge of sewage from the proposed subdivision into the community sewer system would result in violation of existing requirements prescribed by the California Regional Water Quality Control Board.

The discharge of waste into the existing sewer system from the Project will not cause a violation of existing requirements prescribed by the local water quality control board because future development must comply with approved Water Quality Management Plan (WQMP) and stormwater pollution prevention plan (SWPPP), County Sanitation Districts and the City of Fountain Valley Public Works Department requirements placed on the project.

7. A preliminary soils report or geological hazard report indicates adverse soil or geological conditions and the subdivider has failed to provide sufficient information to the satisfaction of the city engineer or the review authority that the conditions can be corrected in the plan for the development.

Tentative Tract Map No. 19245, Precise Plan No. 567, Conditional Use Permit No. 1907 Resolution No. 23-11

The applicant provided a geotechnical report indicating that the proposed residential dwellings are considered feasible and no adverse soil of geological conditions exist.

8. The proposed subdivision is not consistent with all applicable provisions of this title and any other applicable provisions of this code and the Subdivision Map Act.

As detailed in the accompanying staff report, Tentative Tract Map No. 19245 is consistent with the code provisions of FVMC 21.68 Subdivision Design and Improvement Requirements and Title 21 of the Municipal Code.

SECTION 6
The Planning Commission hereby approves Tentative Tract Map No. 19245, Precise Plan No. 567, and Conditional Use Permit No. 1907 for the Bonanni Residential Project located at 8572 Talbert Avenue.

PASSED, APPROVED AND ADOPTED THIS 12TH DAY OF APRIL, 2023. ______________________________ ______________________________ Chairman Secretary

BY SIGNING THIS PERMIT, THE PERMITTEE ACKNOWLEDGES ALL OF THE

CONDITIONS IMPOSED AND ACCEPTS THIS PERMIT SUBJECT TO THOSE

CONDITIONS AND WITH THE FULL AWARENESS OF THE PROVISIONS OF CHAPTER 21.36, CHAPTER 21.44, and CHAPTER 21.70 OF THE FOUNTAIN VALLEY MUNICIPAL CODE.

BY SIGNING THIS RESOLUTION, THE APPLICANT ACKNOWLEDGES

ACCEPTANCE OF THE BENEFITS OF THE TENTATIVE TRACT MAP, PRECISE

PLAN, AND CONDITIONAL USE PERMIT AND AGREES TO WAIVE ANY RIGHT TO

LATER CHALLENGE ANY CONDITION(S) IMPOSED AS UNFAIR, UNNECESSARY, OR UNREASONABLE.
/
Date Applicant Sign/Print
/
Date Property Owner Sign/Print

transportation ■ noise ■ air quality | GANDDINI GROUP
555 Parkcenter Drive, Suite 225, Santa Ana, CA 92705
(714) 795-3100 | ganddini.com
April 10, 2023
Mr. Phil Martin, President

PHIL MARTIN & ASSOCIATES
2987 NW Fairway Heights Drive
Bend, Oregon 97703
RE: 8572 Talbert Avenue Residential Project: Response to Comments from California Department of Transportation (April 6, 2023)
Project No. 19587
Dear Mr. Martin:

Ganddini Group, Inc. is pleased to provide this letter in response to review comments noted in the comment letter from the California Department of Transportation (Caltrans) dated April 6, 2023 regarding the 8572 Talbert Avenue Residential Project in the City of Fountain Valley.

The letter opens with a description of the project and Caltrans’ mission followed by the following comment:

COMMENT 1
System Planning
Include a discussion on bicycle and pedestrian impacts in the EIR. - Caltrans supports the design of Complete Streets that include high-quality pedestrian, bicycle, and transit facilities that are safe and comfortable for users of all ages and abilities. Improvements may include providing secure bicycle parking, pedestrian-oriented LED lighting, wayfinding signage, and comfortable connections to nearby active transportation and/or transit facilities. Complete Streets improvements also promote regional connectivity, improve air quality, reduce congestion, promote improved first-/last-mile connections, and increase safety for all modes of transportation.

RESPONSE TO COMMENT 1
The project’s transportation impacts are evaluated in the 8572 Talbert Avenue Residential Project Transportation Study Screening Assessment (Ganddini Group, Inc., November 2022), which was prepared in accordance with the City of Fountain Valley Transportation Impact Assessment Guidelines for Land Use Projects in CEQA and for General Plan Consistency (June 2020) [“the City TIA Guidelines”]. The City TIA Guidelines incorporate State guidance provided in the Office of Planning and Research (OPR) Technical Advisory on Evaluating Transportation Impacts in CEQA (December 2018) [“OPR Technical Advisory”]. As documented in the Transportation Study Screening Assessment, the project does not meet the thresholds that would warrant preparation of a transportation impact analysis based on the project’s relatively small size and location in an area with low vehicle miles traveled (VMT). Therefore, the project’s transportation impacts would be less than significant and preparation of an Environmental Impact Report (EIR) is not warranted.

Additionally, the project is located more than one half mile from the nearest State highway (State Route 39 to the west). The intersection of State Route 39 (Beach Boulevard) and Talbert Avenue is currently signalized

Mr. Phil Martin, President

PHIL MARTIN & ASSOCIATES
April 10, 2023
8572 Talbert Avenue Residential Project:

Response to Comments
2 19446
with marked crosswalks on all four legs. Based on the project vehicle trip generation forecast, which was determined to be relatively minimal as documented in the project’s Transportation Study Screening Assessment, project-generated bicycle and pedestrian volumes are expected to be even lower and not result in appreciable new demand or impacts on State highway facilities.

Furthermore, the bicycle and pedestrian facilities are established in the City of Fountain Valley General Plan Circulation Element and standard plans. As the proposed project shall adhere to the standards and plans established by the City, the project would not cause bicycle or pedestrian impacts.

CONCLUSION
Should you have any questions or if we can be of further assistance, please contact us at 714-795-3100.

Respectfully,
GANDDINI GROUP, INC.

Giancarlo Ganddini, PE, PTP
Principal
California Registration TR 2663

ORDINANCE NO.__________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY APPROVING ZONING MAP AMENDMENT NO. 434 TO CHANGE THE ZONING MAP DESIGNATION OF THE PROPERTY LOCATED AT 8572 TALBERT AVENUE FROM CP – PROFESSIONAL OFFICE TO GH – GARDEN HOMES WHEREAS, Chris Segesman with Bonanni Development, Inc., (“Applicant”) has submitted a request to subdivide two (2) properties totaling 1.41 acres for the development of fifteen (15) detached, single-family homes located at 8572 Talbert Avenue (“Project”); and WHEREAS the Project includes the following applications in accordance with the Fountain Valley Municipal Code (FVMC):
• Per FVMC 21.34, a Zoning Map Amendment is required to rezone the property from CP – Professional Office to GH - Garden Home.
• Per FVMC 21.14.060, a Planned Development (PD) overlay is required to allow for the increase in the maximum allowable project lot coverage from 30 % to

35.3%.
• Per FVMC Section 21.66.030(a), a Tentative Tract Map is required for the subdivision of an existing parcel into two (2) or more parcels in compliance with FVMC Chapters 21.66 through 21.84. The Tentative Tract Map would divide the existing 1.41 acre project site into a fifteen (15) single-family lots and one (1) for the private streets.
• Per FVMC Chapter 21.44, a Precise Plan is required for the development of fifteen (15) single-family dwelling units.
• Per FVMC Section 21.08.030 Table 2-2, a Conditional Use Permit (CUP) is required for the development of single-family dwellings in the GH - Garden Home zoning district.
• Approval of a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Plan (MMRP) to address the environmental impacts associated with this Project; and
WHEREAS, the Project is located on two (2) parcels (APN# 112-781-73 & 74), commonly known as 8572 Talbert Avenue, which is formally describes as “That Portion of the Northwest Quarter of the Northeast Quarter of Section 36, Township 5 South, Range 11 West, in the Rancho Las Bolsas, in the City of Fountain Valley, County of Orange, State of California” (“Site”); and WHEREAS, the General Plan is a long-range, comprehensive blueprint that guides the orderly development and growth of the City of Fountain Valley; and WHEREAS, by its very nature, the General Plan must be updated and refined to reflect changing community needs and attitudes; and
WHEREAS, the Zoning Map Amendment would change the Zoning Map designation from CP – Professional Office to GH - Garden Homes as shown in Exhibit “A”; and

ZMA No. 434

WHEREAS, the City has complied with the requirements of the Government Code Section 65300 et seq., the current State of California General Plan Guidelines, and the City’s applicable ordinances with respect to review and consideration of the proposed Project, including the Zoning Map Amendment; and

WHEREAS, on April 12, 2023, the Planning Commission conducted a duly noticed public hearing to consider the Project and Applications and took the following actions:
 In Planning Commission Resolution No. 23-09, recommended approval of the MND and MMRP;
 In Planning Commission Resolution No. 23-10, recommended approval of the proposed Zoning Map Amendment;
 In Planning Commission Resolution No. 23-11 recommended approval of Tentative Tract Map No. 19245, Precise Plan No. 567, and Conditional Use Permit No. 1907 contingent upon approval of the Amendments and MND & MMRP; and
WHEREAS, per the California Environmental Quality Act (CEQA), the Fountain Valley Planning Commission recommended the City Council approved the accompanying MND and MMRP prepared for the Project in a separate action, as contained in Resolution 23-09, by a vote of 4-0 at its noticed public hearing on April 12, 2023; and WHERAS, the Planning Commission recommended the City Council approve Zoning Map Amendment No. 434, as contained in Resolution No. 23-10, by a vote of 4-0 at its noticed public hearing on April 12, 2023; and
WHEREAS, the City Council first considered Zoning Map Amendment No. 434 at its noticed public hearing on May 16, 2023; and
WHEREAS, the proposed Zoning Map Amendment No. 434 has been publicly noticed in accordance with State Law and the Fountain Valley Municipal Code; and NOW, THEREFORE, the City Council of the City of Fountain Valley does ordain as follows:

SECTION 1
The City Council finds that due notice of the public hearing on May 16, 2023, conducted in the Council Chambers, City Hall, 10200 Slater Avenue, was given as required by the FVMC, Title 21, and the Statutes of the State of California.

SECTION 2
Prior to consideration of the Zoning Map Amendment and as contained in Ordinance No. _____, the City Council found that the Project and Amendments would not have a significant adverse effect upon the environment and recommended approval of the MND and MMRP prepared for the Project. The City Council further found that the MMRP will ensure compliance during project implementation and that changes to the Project and/or mitigation measures have been incorporated into the Project and are fully enforceable through permit conditions, agreements, or other measures as required by Public Resources Code Section 21081.6.

ZMA No. 434

The MND was circulated for public review from March 23, 2023, to April 11, 2023, and made available to the public and the City Council for review and consideration. The City Council has reviewed the MND, together will all comments and responses to those comments, and MMRP, and has found that the environmental document considers all environmental effects of the proposed Project, is complete and adequate, and fully complies with all requirements of CEQA and the CEQA Guidelines.

The City Council, as the Lead Agency, arrived at its independent judgement and found that on the basis of the MND and any comments received that there is no substantial evidence that the Project will have a significant adverse impact on the environment provided that the mitigation measures identified in the environmental document are incorporated into the Project.

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

1. The proposed amendments ensure and maintain internal consistency with the actions, goals, objectives and policies of the general plan, and would not create any inconsistencies with this title, in the case of a title amendment.

The Project will protect and enhance the City’s existing positive visual attributes by enhancing the existing well maintained neighborhoods by the construction of seven (7) new detached single-family homes (Goal 2.5/Policy 2.5.1).

The Project will improve architectural quality of development within the City by promoting residential development which achieves harmony without monotony in the built environment (Goal 2.6/Policy 2.6.1).

The Amendments will facilitate the development of new housing stock that is consistent in layout, separation, design, height, and style to nearby residences and which will provide additional housing opportunities for current and future residents. The proposed Project will create a safe environment by providing new infrastructure including storm drain, sewer, and off-site improvements such as new sidewalks and street lights. The Amendments require and the Project has been designed to meet the development standards of the GH zoning district.

2. The proposed amendments would not be detrimental to the public convenience, health, interest, safety or welfare of the city.

The proposed amendment(s) will facilitate the development of new housing stock that is consistent in layout, separation, design, height, and style to nearby residences and which will provide additional housing opportunities for current and future residents. The proposed Project will create a safe environment by providing new infrastructure throughout the Project area to include, but is not limited to, storm drain and sewer, and off-site improvements such as new sidewalks and street lights. In addition, the Amendments require and the Project has been designed to comply with contemporary building, safety, water quality, and energy efficiency standards. Therefore, the General Plan Amendment and Zoning Map Amendment will improve the overall area and will further the public health, safety and general welfare.

ZMA No. 434

3. The proposed project has been reviewed in compliance with the provisions of the California Environmental Quality Act (CEQA) and the city’s environmental review procedures.

As contained in Resolution No. 23-09, an MND and MMRP were prepared and incorporated into the Project. The Planning Commission found that the MMRP will mitigate or avoid potential significant impacts created by the Project. The MND was circulated for public review from March 23, 2023, to April 11, 2023, and considered prior to consideration of the Project and Amendments.

4. The site(s) is/are physically suitable (including access, provision of utilities, compatibility with adjoining land uses and absence of physical constraints) for the requested zoning designation(s) and anticipated land use development(s).

The Amendments are appropriate to accommodate the Project. As detailed in the Staff report for the Project, the Project is of an appropriate size (1.02 acres) and is adequately designed to accommodate fifteen (15) garden homes. The proposed density is 10.68 dwelling units per acre, which is lower than the maximum allowed by the GH zoning district of 10.8 dwelling units per acre. Safe access to the residential development is provided by a private street with a hammerhead turnaround in the middle of the development. Utilities will be provided to serve the demands of the Project.

5. The proposed amendment is internally consistent with other applicable provisions of this title.

The proposed Amendments ensure consistency between the General Plan and Zoning Map land use designations, and the Fountain Valley Municipal Code.

SECTION 4
The City Council finds that the amendments noted in Zoning Map Amendment No. 434 as set forth in Exhibit “A”, and attached hereto, are consistent with the Fountain Valley Municipal Code, as well as the Fountain Valley General Plan.

SECTION 5
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 6
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.

ZMA No. 434

PASSED, APPROVED AND ADOPTED THIS 16th DAY OF MAY 2023.

ATTEST:
______________________
Rick Miller, City Clerk Kim Constantine, Mayor

APPROVED AS TO FORM

HARPER & BURNS LLP
Alexandra Halfman
Attorneys for the City
ATTACHED: EXHIBIT “A”

ZMA No. 434

Exhibit “A”
Existing Zoning – CP – Office Professional Proposed Zoning – GH – Garden Homes

RESOLUTION NO._____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FOUNTAIN VALLEY APPROVING A MITIGATED NEGATIVE

DECLARATION AND ADOPTING A MITIGATION

MONITORING AND REPORTING PROGRAM FOR ZONING
MAP AMENDMENT NO. 434, TENTATIVE TRACT MAP NO.
19245, PRECISE PLAN NO. 567, AND CONDITIONAL USE
PERMIT NO. 1907 FOR THE BONANNI RESIDENTIAL
PROJECT LOCATED AT 8752 TALBERT AVENUE
WHEREAS, Chris Segesman with Bonanni Development, Inc., (“Applicant”) has submitted a request to subdivide two (2) properties totaling 1.41 acres for the development of fifteen (15) detached, single-family homes located at 8572 Talbert Avenue (“Project”); and WHEREAS the Project includes the following applications in accordance with the Fountain Valley Municipal Code (FVMC):
• Per FVMC 21.34, a Zoning Map Amendment is required to rezone the property from CP – Professional Office to GH - Garden Home.
• Per FVMC Section 21.66.030(a), a Tentative Tract Map is required for the subdivision of an existing parcel into two (2) or more parcels in compliance with FVMC Chapters 21.66 through 21.84. The Tentative Tract Map would divide the existing 1.41-acre project site into fifteen (15) single-family lots and one (1) lot for the private streets.
• Per FVMC Chapter 21.44, a Precise Plan is required for the development of fifteen (15) single-family dwelling units.
• Per FVMC Section 21.08.030 Table 2-2, a Conditional Use Permit (CUP) is required for the development of single-family dwellings in the GH - Garden Home zoning district.
• Approval of a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Plan (MMRP) to address the environmental impacts associated with this Project; and
WHEREAS, the Project is located on two (2) parcels (APN# 112-781-73 & 74), commonly known as 8572 Talbert Avenue, which is formally describes as “That Portion of the Northwest Quarter of the Northeast Quarter of Section 36, Township 5 South, Range 11 West, in the Rancho Las Bolsas, in the City of Fountain Valley, County of Orange, State of California” (“Site”); and

Bonanni Residential Project - MND & MMRP
May 16, 2023

WHEREAS, the City has complied with the requirements of the Government Code Section 65300 et seq., the current State of California General Plan Guidelines, and the City’s applicable ordinances with respect to review and consideration of the proposed Project and Amendments; and
WHEREAS, per the California Environmental Quality Act (CEQA), the Fountain Valley Planning Commission first considered the accompanying Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Plan (MMRP) prepared for the Project in a separate action, as contained in Resolution No. 23-09, at its noticed public hearing on April 12, 2023; and
WHEREAS, after action on the MND and MMRP, the Planning Commission also considered Tentative Tract Map No. 19245, Precise Plan No. 567, and Conditional Use Permit No. 1907, a separate action, as contained in Resolution No. 23-11, at its noticed public hearing on April 12, 2023; and
WHEREAS, pursuant to and in accordance with the provisions of the California Environmental Quality Act and (Public Resources Code Section 21000 et seq.; herein referred to as “CEQA”) the State of California Guidelines for the Implementation of the California Environmental Quality Act (commencing with Section 15000 of Title 14 of the California Code of Regulations; herein referred to as the “CEQA Guidelines”), the City is the “lead agency” for the preparation and consideration of environmental documents for the Project; and
WHEREAS, the Project is considered a “project” as defined by CEQA; and WHEREAS, the Community Development Director determined that there was substantial evidence that the Project may have one or more significant effects on the environment and that preparation of a MND was therefore warranted under Public Resources Code § 21080(c);and
WHEREAS, a draft MND was prepared in accordance with CEQA Guidelines to evaluate the physical environmental impacts of the Project and was circulated for a 20-day public/responsible agency review period on March 23, 2023, through April 11, 2023, and was also made available on the City’s website and at City Hall.

WHEREAS, the City gave notice of its intent to adopt the MND to (a) the public pursuant to Section 15072(b) of the CEQA Guidelines, (b) individuals and organizations, if any, that previously submitted written requests for notice pursuant to Section 15072(b) of the CEQA Guidelines, (c) responsible and trustee and other agencies with jurisdiction over resources that will be affected by the Project pursuant to Section 15073(c) of the CEQA Guidelines, and (d) the Clerk of the County of Orange pursuant to Section 15072(a) of the CEQA Guidelines; and
WHEREAS, certified notice was duly given to the Native American tribes pursuant to California Government Code Section 65352.3. Staff received a letter from the Gabrieleno

Bonanni Residential Project - MND & MMRP
May 16, 2023

Band of Mission Indians – Kizh Nation. The tribe requested and was provided consultation on the Project; and
WHEREAS, during the public review period, the City received one (1) comments concerning the draft MND from the Calornia Department of Transportation (Caltrans) and which a response was mailed to Caltrans; and
WHEREAS, the City has complied with the requirements of the Government Code Section 65300 et seq., the current State of California General Plan Guidelines, and the City’s applicable ordinances with respect to review and consideration of the proposed Project and Amendments; and
WHEREAS, on April 12, 2023, the Planning Commission held a public hearing, notice of said public hearing having been duly given as required by law to consider the MND and MMRP and to hear and consider evidence for and against the proposed Project and related actions and to investigate and make findings and recommendations in connection therewith; and
WHEREAS, on April 12, 2023, the Planning Commission approved Resolution No. 23-09 by a vote of 4-0 recommending the City Council approve the MND and MMRP for the project; and
WHEREAS, at its noticed public hearing on April 12, 2023, and after action on the MND and MMRP, the Planning Commission approved Resolution No. 23-11 by a vote of 4-0 approving Tentative Tract Map No. 19245, Precise Plan No. 559, and Conditional Use Permit No. 1907; and
WHEREAS, at its noticed public hearing on April 12, 2023, and after action on the MND and MMRP, the Planning Commission also approved Resolution No. 23-10 by a vote of 4-0 recommending the City Council approve Zoning Map Amendment No. 434; and WHEREAS, the City Council conducted a duly noticed public hearing on May 16, 2023 to consider the MND and MMRP; and
WHEREAS, the City Council, in adopting the MND and MMRP for this Project, of which these findings are a part, did so through the exercise of their independent judgment and review after finding substantial evidence, in light of the record as a whole, to support the adoption of the Mitigated Negative Declaration; and,
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

Bonanni Residential Project - MND & MMRP
May 16, 2023

SECTION 1
The City Council finds that due notice of the public hearings in the Council Chambers, City Hall, 10200 Slater Avenue, was given as required by the Fountain Valley Municipal Code (FVMC), Title 21, and the Statutes of the State of California.

SECTION 2
Prior to consideration of the Project and Amendments and as contained in Resolution No. 9782 and Ordinance No. 1570, the City Council found that the Project and Amendments would not have a significant adverse effect upon the environment and recommended approval of the MND and MMRP prepared for the Project. The City Council further found that the MMRP will ensure compliance during project implementation in that changes to the Project and/or mitigation measures have been incorporated into the Project and are fully enforceable through permit conditions, agreements, or other measures as required by Public Resources Code Section 21081.6.

The MND was circulated for public review from March 23, 2023, to April 11, 2023, and made available to the public, Planning Commission, and City Council for review and consideration.

The City Council has reviewed the MND and MMRP and has found that the environmental document considers all environmental effects of the proposed Project, is complete and adequate, and fully complies with all requirements of the California Environmental Quality Act (CEQA) and the CEQA Guidelines.

The City Council, as the Lead Agency, arrived at its independent judgement and found that on the basis of the MND and any comments received that there is no substantial evidence that the Project will have a significant adverse impact on the environment provided that the mitigation measures identified in the environmental document are incorporated into the Project.

SECTION 3
The City Council, pursuant to Section 15074 of the CEQA Guidelines, hereby approves the Mitigated Negative Declaration attached hereto marked as “Exhibit A” and adopts the Mitigation Monitoring and Reporting Program attached hereto marked as “Exhibit B.” SECTION 4
The City Council hereby authorizes and directs the Planning and Building Director to prepare and file a Notice of Determination with respect to said MND in the office of the Orange County Clerk-Recorder, as approved in CEQA.

Bonanni Residential Project - MND & MMRP
May 16, 2023

PASSED, APPROVED AND ADOPTED this 16th day of May, 2023, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:
__________________________________
Kim Constantine, Mayor
ATTEST:
___________________________
Rick Miller, City Clerk

APPROVED AS TO FORM

HARPER & BURNS LLP
___________________________
Alexandra Halfman
Attorneys for the City

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: May 16, 2023
Members of the City Council
SUBJECT: Second Reading and Adoption of an Ordinance of the City Council of the City of Fountain Valley to Approve an Amendment to the Contract between the Board of Administration California Public Employees’ Retirement System and the City Council of the City of Fountain Valley
Three-Year Strategic Goals
☐ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☒ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☐ Not applicable
EXECUTIVE SUMMARY:

At its meeting on April 18, 2023, the City Council was presented for consideration the first reading an Ordinance of the City Council of the City of Fountain Valley to approve an amendment to the contract between the Board of Administration California Public Employees’ Retirement System and the City Council of the City of Fountain Valley to increase the Tier 1 employee cost sharing pension contributions. The Ordinance was approved during the first reading without amendment.

The Ordinance is now being presented to the City Council for a second reading and consideration of adoption.

FISCAL REVIEW:

Cost savings will be budgeted in the FY 23-24 budget.

PUBLIC NOTIFICATION:

The standard City Clerk’s agenda notification process was used for this item and published fourteen days prior to the first reading of the ordinance in the local newspaper.

This second reading has been agenized in compliance with the Ralph M. Brown Act.

City Council Request
Second Reading and Adoption of an Ordinance
May 16, 2023

CITY ATTORNEY REVIEW:

The Attorney for the City has reviewed and approved the Ordinance.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable
ALTERNATIVES:

Alternative No. 1: Adopt the attached Ordinance of the City Council of the City of Fountain Valley to Approve an Amendment to the Contract between the Board of Administration California Public
Employees’ Retirement System and the City Council of the City of Fountain Valley.

Alternative No. 2: Do not adopt the attached Ordinance and continue the item for further consideration.

RECOMMENDATION: City staff recommends Alternative 1: Adopt the attached Ordinance of the City Council of the City of Fountain Valley to Approve an Amendment to the Contract between the Board
of Administration California Public Employees’ Retirement System and the City Council of the City of Fountain Valley.

Prepared by: Carrie Hanes, Human Resources Director
Reviewed by: Ryan Smith, Finance Director
Approved by: Maggie Le, City Manager
Attachments: 1. April 18, 2023 Staff Report
2: Ordinance
Exhibit: 1. Amendment to Contract

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: April 18, 2023
Members of the City Council
SUBJECT: Adopt a Resolution of Intention and First Reading of an Ordinance to Approve an Amendment to the Contract between the Board of Administration California Public Employees’ Retirement System and the City Council of the City of Fountain Valley
Three-Year Strategic Goals
☐ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☒ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☐ Not applicable
EXECUTIVE SUMMARY:

The City Council approved and adopted three (3) year Memoranda of Understandings and Resolutions with all seven (7) of its’ bargaining groups as well as its’ unrepresented employees.

One of the City’s priorities for the contract(s) was to address the unfunded actuarial liability related to pension costs, specifically for our Classic/Tier One employees. The City was able to successfully negotiate cost-sharing of a portion of these pension costs through an increase in the employee contributions for all Classic/Tier One employees at all levels of the organization over a term of three (3) year agreements, with different rates for miscellaneous and safety groups.

Increase effective dates Misc.

Increase
Misc. EE Rate Safety
Increase
Safety EE
rate
Implemented 1/8/22 0.5% 8.5% 1.0% 10.0%
Implemented 7/8/22 0.5% 9.0% 1.0% 11.0%
7/7/23 0.5% 9.5% 1.0% 12.0%
Total Increase/Rate by 6/30/24 1.5% 9.5% 3.0% 12.0%
The City has amended its contract(s) with CalPERS to implement the cost-sharing agreements as negotiated for the first two (2) cost sharing increases. The City submitted a formal request to amend its contract(s) with CalPERS for the third cost sharing per Government Code 20516

Council Action Request
Adopt a Resolution and Adopt a First Reading of an Ordinance April 18, 2023

for 0.5% for Classic/Tier One Miscellaneous employees and also 1.0% for Classic/Tier One Fire and Police Safety employees to be effective in the pay period including July 7, 2023.

DISCUSSION:

In order for the City to implement the cost-sharing provision, it is necessary for the City to amend its’ contract with CalPERS. The City Council must adopt a Resolution of Intention to amend the contract and adopt the first reading of the Ordinance with includes the Amendment to the CalPERS contract as an Exhibit. The change is shown under Section A(14)(i) of the amendment contract. California Government Code Section 7507 requires that future annual cost of benefit changes of the proposed contract amendment be made public at a public meeting at least two weeks’ prior the final Ordinance. If the City Council approves the first reading of the Ordinance, then the second reading will occur on May 16, 2023. CalPERS provides the option of the first reading of the Ordinance occurring the same day as the adoption of the Resolution of Intention.

It is recommended the City Council approve the Resolution of Intention and the first reading of an Ordinance to Approve an Amendment to the Contract between the Board of Administration California Public Employees’ Retirement System and the City Council of the City of Fountain Valley.
 Adopt a Resolution of Intention to amend the City’s CalPERS retirement contract  Adopt First Reading of an Ordinance to Approve an Amendment to the Contract with CalPERS
To implement this employee cost-sharing provision, the City Council will need to approve the Resolution of Intention and Ordinance to Approve an Amendment to the Contract between the Board of Administration California Public Employees’ Retirement System and the City Council of the City of Fountain Valley.

An employee election was conducted and approved prior to the first amendment adopted and effective on January 8, 2022, CalPERS determined it was not necessary to conduct votes again, since they had already voted and approved all three (3) cost sharing amendments on this election.

FISCAL REVIEW:

Cost savings will be budgeted in the FY 23-24 budget proposal.

PUBLIC NOTIFICATION:

The standard City Clerk’s agenda notification process was used for this item and posted fourteen days prior to the first reading of the ordinance in the local newspaper.

CITY ATTORNEY REVIEW:

The City Attorney has reviewed the attached Resolution of Intention, Ordinance and Amendment to Contract.

Council Action Request
Adopt a Resolution and Adopt a First Reading of an Ordinance April 18, 2023

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

ALTERNATIVES:

Alternative No. 1:

Alternative No. 2:

RECOMMENDATION:

Approve the Resolution of Intention and Ordinance to Approve an Amendment to the Contract between the Board of Administration California Public Employees’ Retirement System and the City Council of the City of Fountain Valley.

Do not approve the aforementioned Resolution of Intention and Ordinance and provide alternative direction to City staff.

City staff recommends Alternative 1: Approve the Resolution of Intention and Ordinance to Approve an Amendment to the Contract between the Board of Administration California Public Employees’ Retirement System and the City Council of the City of Fountain Valley.

Prepared by: Carrie Hanes, Human Resources Director
Fiscal review by: Ryan Smith, Finance Director
Approved by: Maggie Le, City Manager
Attachments:

1. Resolution of Intention

2. Ordinance
Exhibit: 1. CalPERS Amendment to Contract

RESOLUTION OF INTENTION

TO APPROVE AN AMENDMENT TO CONTRACT

BETWEEN THE

BOARD OF ADMINISTRATION

CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM

AND THE

CITY COUNCIL

CITY OF FOUNTAIN VALLEY
WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and
WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:

To provide Section 20516 (Employees Sharing Additional Cost) of an additional .5% for first tier classic local miscellaneous members, an additional 1% for first tier classic local police members, and an additional 1% for first tier classic local fire members.

NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby give notice of intention to approve an amendment to the contract between said public agency and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto, as an "Exhibit" and by this reference made a part hereof.

By:_________________________________
Presiding Officer
_________________________________
Title
________________________________
Date adopted and approved
(Amendment)
CON-302 (Rev. 3/9/2016 rc)
Attachment 1

Attachment 2
ORDINANCE NO.______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

FOUNTAIN VALLEY AUTHORIZING AN AMENDMENT TO THE

CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF

FOUNTAIN VALLEY AND THE BOARD OF ADMINISTRATION
OF THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT
SYSTEM
NOW, THEREFORE, the City Council of the City of Fountain Valley does hereby ORDAIN as follows:

Section 1. That an amendment to the contract between the City Council of the City of Fountain Valley and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as though herein set out in full.

Section 2. The Mayor of the City Council is hereby authorized, empowered, and directed to execute said amendment for an on behalf of the City of Fountain Valley.

Section 3. This ordinance shall take effect 30 days after its adoption, and prior to the expiration of 15 days from the passage thereof shall be published at least once in the Orange County Register, a newspaper of general circulation, published and circulated in the City of Fountain Valley and thenceforth and thereafter the same shall be in full force and effect.

PASSED AND ADOPTED by the City Council of the City of Fountain Valley at a regular meeting this 16th day of May, 2023.

ATTEST:
_______________________ _______________________
Rick Miller, City Clerk Kim Constantine, Mayor
Approved as to Form:

_______________________
Colin Burns
Attorney for the City

Attachment 2
ORDINANCE NO.______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

FOUNTAIN VALLEY AUTHORIZING AN AMENDMENT TO THE

CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF

FOUNTAIN VALLEY AND THE BOARD OF ADMINISTRATION
OF THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT
SYSTEM
NOW, THEREFORE, the City Council of the City of Fountain Valley does hereby ORDAIN as follows:

Section 1. That an amendment to the contract between the City Council of the City of Fountain Valley and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as though herein set out in full.

Section 2. The Mayor of the City Council is hereby authorized, empowered, and directed to execute said amendment for an on behalf of the City of Fountain Valley.

Section 3. This ordinance shall take effect 30 days after its adoption, and prior to the expiration of 15 days from the passage thereof shall be published at least once in the Orange County Register, a newspaper of general circulation, published and circulated in the City of Fountain Valley and thenceforth and thereafter the same shall be in full force and effect.

PASSED AND ADOPTED by the City Council of the City of Fountain Valley at a regular meeting this 16th day of May, 2023.

ATTEST:
_______________________ _______________________
Rick Miller, City Clerk Kim Constantine, Mayor
Approved as to Form:

_______________________
Colin Burns
Attorney for the City

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: May 16, 2023
Members of the City Council
SUBJECT: Annual military equipment report per California Assembly Bill 481 Three-Year Strategic Goals
☐ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☒ Not applicable
EXECUTIVE SUMMARY:

Assembly Bill 481 requires City Council approval of the Annual Military Equipment Report.

DISCUSSION:

On May 17, 2023, the City Council adopted Ordinance 1585 (Attachment 1), approving a Military Equipment Use Policy – Policy 707, pursuant to Assembly Bill 481 (“AB 481”). In accordance with AB 481 and Policy 707, a military equipment report must be submitted to the City Council annually for each type of military equipment approved within one (1) year of authorization, and annually thereafter, for as long as the military equipment is available for use.

In compliance with AB 481, outlined below is the 2022 Annual Military Equipment Report and attached is the updated policy (Attachment 2).

Background
On September 30, 2021, AB 481 required law enforcement agencies to adopt a military equipment use policy (Policy 707) by ordinance, no later than May 1, 2022. The Fountain Valley Police Department complied with AB 481 and adopted Ordinance No. 1585 approving Policy 707.

AB 481 also requires law enforcement agencies to submit to the City Council an annual military equipment usage report (“Annual Report”) on the use of the equipment, any complaint(s) or concern(s) regarding the use of the equipment, results of any internal audits on the use of the equipment, the annual costs for the equipment, the quantity possessed by the agency and the intention to purchase additional equipment in the following year. In addition, within 30 days of

AB 481 – Annual Military Equipment Report
May 16, 2023

submitting and publicly releasing the Annual Report, a well-publicized and community engagement meeting must be held to allow for public comments.

To meet the requirements of the Annual Military Equipment Usage Report pursuant to AB 481 and Government Code § 7072, the annual report must include the following information for the immediately preceding calendar year for each type of military equipment:
 A summary of how the military equipment was used and its purpose.  A summary of any complaints or concerns received regarding the military equipment.  The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response.  The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.  The quantity possessed for each type of military equipment.  If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

Complaints or Concerns
All use of force incidents are reviewed by assigned supervisors and Watch Commanders. The supervisor for each use of force incident completes a supervisor’s report and provides a determination if the use of force was consistent or conflicts with Department policy. The supervisor’s report is reviewed by the Operations Bureau Lieutenant and Captain, and ultimately the Chief of Police, to ensure employees are performing their duties within guidelines set by Department policy and applicable law.

During 2022, no violations were discovered, and officers were found to be operating in a manner that met or exceeded Department and community expectations. As listed below in the use summary, Fountain Valley Police Department did not receive any complaints or concerns related to the use of military equipment.

Equipment Purchases in 2022
Distraction Devices - A device used to distract dangerous persons.

Current Inventory: COMBINED TACTICAL SYSTEMS (CTS), MODEL 7290 FLASH BANG Description: This is the standard diversionary flash-bang device. It is a non-bursting, nonfragmenting single use device that produces a 175db and 6-8 million candela of light output.

It is ideal for distracting potentially dangerous suspects during assaults, hostage rescue, building/room entry or other high-risk arrest situations.

Quantity: 18
Purchase Price: $45 each
Purpose: A distraction device is ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations. It produces atmospheric

AB 481 – Annual Military Equipment Report
May 16, 2023

overpressure and brilliant white light and, as a result, can cause short-term (6-8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage.

Authorized Use: Diversionary devices shall only be used: (a) By officers who have been trained in their proper use, (b) In hostage and barricaded subject situations, (c) In high-risk warrant (search/arrest) services where there may be extreme hazards to officers, (d) During other highrisk situations where their use would enhance officer safety, and (e) During training exercises.

Expected Lifespan: Five (5) years.

Fiscal Impact: No annual maintenance.

Training: Prior to use, officers must attend diversionary device training conducted by POST certified instructors.

Internal Audit: The Department conducted an internal audit and determined there were no violations of the military equipment use policy.

Intention to Purchase Additional Equipment in 2023:

At this time, Fountain Valley Police Department does not intend to acquire additional types of military equipment; however, future attempts to obtain new equipment will include adhering to procedures set forth in the Government Code and Policy 707; this includes a public hearing and City Council approval prior to acquisition.

At this time, forecasted purchases for Fountain Valley Police Department in 2023 only include additional ammunition and chemical agents which need to be replenished after being used in either the field or training environments. All items needing to be replenished are included in the policy and attached inventory that was previously approved by the City Council.

Department inventory and all costs associated with the use of this equipment is believed to be consistent with the military equipment inventory list, policy and Department budget, previously approved by the City Council. It should be noted, these operating costs are good faith estimates that are subject to changes made by vendors and/or manufacturers based on variables related to availability, shipping and general market increases.

Public Hearing: Fountain Valley Police Department gives strong consideration to the public’s welfare, safety, civil rights and civil liberties. In a continued effort for greater transparency, the Department places high regard on meaningful public input related to the use of military equipment in our community.

Department policy requires Fountain Valley Police Department to hold at least one well publicized and conveniently located community engagement meeting where community members may discuss and ask questions regarding the annual military equipment report.

Meetings must be held within 30 days of posting this report on the Department website.

Fountain Valley Police Department will provide this opportunity on May 16, 2023, at 7:00 pm, during the City’s regularly scheduled City Council meeting.

AB 481 – Annual Military Equipment Report
May 16, 2023

In compliance with the requirements of AB 481, this staff report, which includes the Annual Report, and the updated policy were published on the Department’s website as of May 15, 2023.

FISCAL REVIEW:

There is no fiscal impact related to this item.

PUBLIC NOTIFICATION:

Public notification was made through the regular agenda process.

ATTORNEY REVIEW:

The Attorney(s) for the City has reviewed and concurs with the recommended action.

ALTERNATIVES:

Alternative No. 1:

RECOMMENDATION:

There are no reasonable alternatives that can achieve the same objectives of officer and civilian safety.

Staff recommends City Council approve the Annual Military Equipment Report per Assembly Bill 481.

Prepared by: Jarrod Frahm, Lieutenant
Approved by: Matthew L. Sheppard, Chief of Police
Fiscal Review: Ryan Smith, Finance Director
Legal Review: Colin Burns, Attorney for the City
Approved by: Maggie Le, City Manager
Attachments:
 Ordinance
 Policy 707
 Military Equipment Inventory List

ORDINANCE NUMBER

AN ORDINANCE OF THE FOUNTAIN VALLEY CITY COUNCIL

ADOPTING A MILITARY EQUIPMENT USE POLICY
WHEREAS on September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481, relating to the use of military equipment by law enforcement agencies; and
WHEREAS Assembly Bill 481, codified at California Government Code sections 7070 through 7075, requires law enforcement agencies to obtain approval of the applicable governing body, by an ordinance adopting a “military equipment” use policy, at a regular meeting held pursuant to open meeting laws, prior to taking certain actions relating to the funding, acquisition, or use of military equipment.

The term “military equipment” is defined in California Government Code section 7070; and
WHEREAS Assembly Bill 481 allows the governing body of a city to approve the funding, acquisition, or use of military equipment within its jurisdiction only if it makes specified determinations; and
WHEREAS the proposed military equipment use policy is found within Fountain Valley Police Department Policy 707; and
WHEREAS Fountain Valley Police Department Policy 707 was published on the Fountain Valley Police Department’s internet website and presented to City Council on April 5, 2022; and
WHEREAS the military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety; and
WHEREAS the proposed military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties; and WHEREAS if purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety; and
WHEREAS prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.

NOW, THEREFORE, THE FOUNTAIN VALLEY CITY COUNCIL DOES
HEREBY ORDAIN AS FOLLOWS:

Section 1. That section 2.22.140 is added to the Fountain Valley Municipal Code to read as follows:
“2.22.140 Military Equipment Use Policy. Pursuant to Government Code Section 7070 et seq., the City has adopted a military equipment use policy. The City Council has reviewed the military use policy prepared by the Fountain Valley Police Department and approves of the same. This policy shall be reviewed at least annually by the City Council in accordance with the law.” Section 2. 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 be subsequently declared invalid or unconstitutional.

Section 3. The City Clerk shall certify to the adoption of this Ordinance and cause it to be published as required by law.

PASSED, APPROVED AND ADOPTED by the Fountain Valley City Council at a regular meeting on the ____ of May 2022___________ by the following vote:

AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
ATTEST

Rick Miller Patrick Harper
City Clerk Mayor
APPROVED TO FORM:
___________________________
Colin Burns
Attorney for the City

STATE OF CALIFORNIA }
COUNTY OF ORANGE }
CITY OF FOUNTAIN VALLEY }
I, Rick Miller, City Clerk of the City of Fountain Valley, do hereby certify that the foregoing ordinance is the original copy of Ordinance Number on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the _____ day of May, 2022.

Rick Miller
City Clerk

Policy
707
Fountain Valley Police Department
Fountain Valley PD Policy Manual
Copyright Lexipol, LLC 2023/01/24, All Rights Reserved.

Published with permission by Fountain Valley Police
Department
Military Equipment - 395
Military Equipment
707.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072). This policy is provided to fulfill the obligations set forth in Assembly Bill No. 481. These obligations include but are not limited to seeking approval on specific items deemed to be military equipment and requirements related to compliance, annual reporting, cataloging, and complaints regarding these items.
707.1.1 DEFINITION OF MILITARY EQUIPTMENT
California Government Code § 7070 defines "military equipment" as including:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).
• Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.

Fountain Valley Police Department
Fountain Valley PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2023/01/24, All Rights Reserved.

Published with permission by Fountain Valley Police
Department
Military Equipment - 396
707.2 POLICY
It is the policy of the Fountain Valley Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment. It is the policy of the Fountain Valley Police Department that there are legally enforceable safeguards, including transparency, oversight, and accountability measures in place to protect the public's welfare, safety, civil rights, and civil liberties before military equipment is funded, acquired, or used. 707.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police designates the Support Services Bureau Lieutenant to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Fountain Valley Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the department's funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
707.4 MILITARY EQUIPMENT USE CONSIDERATIONS
The military equipment acquired and authorized by the Department is:
(a) Necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety.
(b) Reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.

Fountain Valley Police Department
Fountain Valley PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2023/01/24, All Rights Reserved.

Published with permission by Fountain Valley Police
Department
Military Equipment - 397
Military equipment shall only be used by a Department employee after applicable training, including any course required by the Commission on Peace Officer Standards and Training (POST), has been completed, unless exigent circumstances arise. 707.5 MILITARY EQUIPMENT REPORTING CONSIDERATIONS
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the City Council for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory.

The annual military equipment report shall, at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment:
(a) A summary of how the military equipment was used and the purpose of its use. (b) A summary of any complaints or concerns received concerning the military equipment. (c) The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. (d) The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report. (e) The quantity possessed for each type of military equipment. (f) If the Department intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

Within 30 days of submitting and publicly releasing an annual military equipment report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the general public may discuss and ask questions regarding the annual military equipment report and Fountain Valley Police Department's funding, acquisition, or use of military equipment. This shall occur as a part of the Department's presentation to the City Council.
707.6 CATALOGING OF MILITARY USE EQUIPMENT
All military use equipment kept and maintained by the Fountain Valley Police Department shall be cataloged in a way which addresses each of the following requirements:

1. The manufacturer's description of the equipment.

2. The capabilities of the equipment.

Fountain Valley Police Department
Fountain Valley PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2023/01/24, All Rights Reserved.

Published with permission by Fountain Valley Police
Department
Military Equipment - 398

3. The purposes and authorized uses for which the Department proposes to use the equipment.

4. The expected lifespan of the equipment.

5. The fiscal impact of the equipment, both initially and for on-going maintenance.

6. The quantity of the equipment, whether maintained or sought. 707.7 COMPLIANCE
All supervisors will ensure that all Department members comply with this policy and the Support Services Bureau Lieutenant will conduct an annual audit. The Chief of Police or designee will be notified of any policy violations and, if needed, the violation(s) will be handled in accordance with Policy 1009 (Personnel Complaints). Any member of the public can register a question or concern regarding military use equipment by contacting the Fountain Valley Police Department via telephone, (714) 593-4485.A response to the question or concern shall be completed by the Department in a timely manner.

Any member of the public can submit a complaint to any member of the Department and in any form (i.e., in person, telephone, email, etc.). Once the complaint is received, it shall be in accordance with the Personnel Complaints Policy.
707.8 FUNDING
The Department shall obtain City Council approval, by an ordinance adopting a new or revised military equipment use policy, prior to seeking funds for military equipment, including, but not limited to, applying for a grant, soliciting, or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.

The Department has authority to apply for funding prior to obtaining City Council approval in the case of exigent circumstances.In such case, the Department shall obtain City Council approval as soon thereafter as practicable.In seeking such approval, the Support Services Bureau Lieutenant will submit to the City Council a report explaining the nature of the exigency and why prior approval could not be obtained.
707.9 MILITARY EQUIPMENT INVENTORY
The following constitutes an inventory of previously purchased equipment for the Fountain Valley Police Department deemed to be military and militaristic as defined by this policy.

1. Unmanned Aircraft System (UAS)
A UAS is an unmanned aircraft and the equipment necessary for the safe and efficient operation of the aircraft. An unmanned aircraft is a component of a UAS. It is defined by statute as an aircraft that is operated without the possibility of direct human intervention from within or on the aircraft.

Fountain Valley Police Department
Fountain Valley PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2023/01/24, All Rights Reserved.

Published with permission by Fountain Valley Police
Department
Military Equipment - 399
Current Inventory:

Autel EVO II Pro
Description: UAS with a single-color camera, weighs approx. 2.6 pounds and has video recording capabilities, approx. 40 minutes of flight time.

Quantity: 1
Purchase Price: $2,447.00
DJI Mini 2
Description: UAS that has a color camera. Capable of video recording and weighs 242 grams, approx. 30 minutes of flight time.

Quantity: 1
Purchase Price: $625.00
Purpose: To be deployed when its view would assist officers or incident commanders in situations which include but not limited to:
(a) major collision investigations
(b) search for missing persons
(c) natural disaster management
(d) crime scene photography
(e) SWAT, tactical or other public safety and life preservation missions (f) In response to specific requests from local, state, or federal fire authorities for fire response and/or prevention.

Authorized Use: Only assigned operators who have completed the required training shall be permitted to operate any UAS during approved missions.

Expected Life Span: All UAS equipment, 3-5 years.

Fiscal Impact: Annual maintenance and battery replacement cost is approximately $700.00.

Training Required: All Department UAS operators are licensed by the Federal Aviation Administration for UAS operation. In addition, each operator must attend a 40-hour department training and ongoing quarterly training.

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Legal and Procedural Rules: Use is established under Policy 606, FAA Regulation 14 CFR Part 107, and the City of Fountain Valley UAS policy. It is the policy of the Fountain Valley Police Department to utilize UAS only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to State and Federal law.

2. Distraction Devices
A device used to distract dangerous persons.

Current Inventory:

COMBINED TACTICAL SYSTEMS (CTS), MODEL 7290 FLASH BANG
Description: This is the standard diversionary flash-bang device.It is non-bursting, nonfragmenting single use device that produces a 175db and 6-8 million candela of light output.It is ideal for distracting potentially dangerous suspects during assaults, hostage rescue, building/room entry or other high-risk arrest situations.

Quantity: 18
Purchase Price: $45 each
Purpose: A distraction device is ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations. It produces atmospheric overpressure and brilliant white light and, as a result, can cause short-term (6 - 8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage.

Authorized Use: Diversionary Devices shall only be used:
(a) By officers who have been trained in their proper use. (b) In hostage and barricaded subject situations.
(c) In high-risk warrant (search/arrest) services where there may be extreme hazards to officers.
(d) During other high-risk situations where their use would enhance officer safety. (e) During training exercises.

Expected Lifespan: 5 years.

Fiscal Impact: No annual maintenance.

Training: Prior to use, officers must attend diversionary device training that is conducted by POST certified instructors.

Legal and Procedural Rules: Use is established under West County SWAT policy and procedure. It is the policy of SWAT to utilize diversion devices only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.

3. 40 MM Launchers and Rounds

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40MM Launchers are utilized by department personnel as a less lethal tool to launch impact rounds.

Current Inventory:

LMT DEFENSE TECHNOLOGY, 40MM SINGLE SHOT LAUNCHER
Description: The 40MM Single Launcher is a tactical single shot launcher that features an collapsible stock and picatinny upper receiver optic/light rail. It will fire standard 40mm less lethal ammunition, up to 4.8 inches in cartridge length. It will launch a 40mm less lethal round up to approximately 131 feet and is only authorized to be used by personnel who have attended a POST approved Less Lethal course.

Quantity: 3
Purchase Price: $900 each
DEFENSE TECHNOLOGY, 40MM EXACT IMPACT SPONGE
Description: A less lethal 40mm lightweight plastic and foam projectile fired from a single or multi-round purpose built 40mm grenade launcher with a rifled barrel at 325 FPS.

The 30-gram foam projectile delivers 120 ft/lbs. of energy on impact. The 40mm Exact Impact Sponge Round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and as far as 131 feet from the target.

Quantity: 83
Purchase Price: $18 each
DEFENSE TECHNOLOGY, 40MM DIRECT IMPACT CS
Description: A less lethal 40mm lightweight plastic and crushable foam projectile fired from a single or multi-round purpose-built 40mm grenade launcher with a rifled barrel at 295 FPS. The 39-gram crushable foam projectile delivers 120 ft/lbs. of energy upon impact in addition to dispersion of 5 grams of OC irritant. The 40mm Direct Impact OC Round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and as far as 120 feet from the target.

Quantity: 10
Purchase Price: $30 each
Purpose: To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

Authorized Use: Situations for use of the less lethal weapon systems may include, but are not limited to:
(a) Self-destructive, dangerous and/or combative individuals. (b) Riot/crowd control and civil unrest incidents.
(c) Circumstances where a tactical advantage can be obtained.

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(d) Potentially vicious animals.
(e) Training exercises or approved demonstrations.

Training: Sworn members utilizing 40mm less lethal chemical agents or impact rounds are trained in there use by POST certified less lethal and chemical agent instructors.

Expected Life Span: Defense Technology Launchers - 25 years, Rounds - 5 years.

Fiscal Impact: Annual maintenance is approximately $50 for each launcher.

Legal and Procedural Rules: Use is established under Policy 302.9. It is the policy of the Fountain Valley Police Department to utilize the 40mm only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.

4. Less Lethal Shotgun: Less Lethal Shotgun is used to deploy the less lethal 12-gauge SuperSock Beanbag Round.

REMINGTON 870 LESS LETHAL SHOTGUN
Description: The Remington 870 Less Lethal Shotgun is used to deploy the less lethal 12-gauge Super-Sock Beanbag Round up to a distance of 75 feet. The range of the weapon system helps to maintain space between officers and a suspect reducing the immediacy of the threat which is a principle of De-escalation.

Quantity: 35
Purchase Price: $946 each
Drag Stabilized 12-GAUGE BEANBAG ROUND
Description: A less lethal 2.4-inch 12-gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot at a velocity of 270-290 feet per second (FPS).

Drag Stabilized rounds are discharged from a dedicated 12-gauge shotgun that is distinguishable by a grey butt stock and fore grip. This round provides accurate and effective performance when fired from the approved distance of not fewer than five (5) feet. The maximum effective range of this munition is up to 75 feet from the target. The Drag Stabilized Model is in its deployed state immediately upon exiting the barrel. It does not require a minimum range to "unfold" or "stabilize." The Drag Stabilized Model is an aerodynamic projectile. However, accuracy is relative to the shotgun, barrel length, environmental conditions, and the operator. The Drag Stabilized Model is very accurate.

However, effectiveness depends on many variables, such as distance, clothing, stature, and the point where the projectile impacts.

Quantity: 460
Purchase Price: $5 each
Purpose: To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

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Authorized Use: Situations for use of the less lethal weapon systems may include, but are not limited to:
(a) Self-destructive, dangerous and/or combative individuals. (b) Riot/crowd control and civil unrest incidents.
(c) Circumstances where a tactical advantage can be obtained. (d) Potentially vicious animals.
(e) Training exercises or approved demonstrations.

Expected Life Span: Remington 870 Less Lethal Shotgun- 25 years, Drag Stabilized 12-Gauge beanbag round and Winchester slug rifle rounds - no listed expiration date.

Fiscal Impact: Annual maintenance is approximately $50 for each less-lethal shotgun.

Training: All officers are trained in the 12 gauge less lethal shotgun as a less lethal option by in-service training. SWAT personnel receive additional training internally when they transfer to the unit. SWAT operators who utilize these munitions have been through and successfully completed a POST approved gas school and/or trained in house by POST certified chemical agent instructors for muzzle blast training.

Legal and Procedural Rules: Use is established under Policy 302.9 It is the policy of the Fountain Valley Police Department to utilize the less lethal shotgun only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.

Current Inventory:

DANIEL DEFENSE DDM4.223
Description: lightweight, magazine-fed, gas-operated semi-automatic rifle. Caliber 223, 16-inch barrel.

Quantity: 23
Purchase Price: $2,057.00 per firearm
DANIEL DEFENSE AR-15.223 SHORT BARRELED RIFLE (SBR)
Description: lightweight, magazine-fed, gas-operated automatic rifle. Caliber 223, 11.5- inch barrel.

Quantity: 5
Purchase Price: $2,057.00 per firearm
COLT M16.223
Description: lightweight, magazine-fed, gas-operated semi-automatic rifle. Caliber 223,

14.5-inch barrel.

Quantity: 2

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Purchase Price: $2,057.00 per firearm
WINCHESTER.223 REMINGTON 55GR FULL METAL JACKET FRANGIBLE RIFLE ROUND
Description:.223 Remington caliber, Frangible, 55 grain bullet weight, brass cartridge case material.

Quantity: 2,200
Purchase Price: $169.00 (price per 500)
WINCHESTER RANGER.223 55GR (PSP) RIFLE ROUND
Description:.223 caliber, Pointed Soft Point (PSP), 55 grain bullet weight, brass cartridge case material.

Quantity: 9,200
Purchase Price: $297.44 (price per 500)
Purpose: To be used as precision weapons to address a threat with more precision and/ or greater distances than a handgun, if present and feasible.

Authorized Use: Only members that are POST certified are authorized to use a rifle.

Expected Life Span: 25 years.

Fiscal Impact: Annual maintenance is approximately $50 for each rifle.

Training: Prior to using a rifle, officers must be certified by POST instructors in the operation of the rifle. Additionally, all members that operate any rifle are required to pass a range qualification two times a year.

Legal and Procedural Rule: Use is established under Policy 303.3.2. It is the policy of the FVPD to utilize rifles only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.

5. PepperBall launcher: A device that discharges irritant projectiles Current Inventory:

PEPPERBALL TAC SF LAUNCHER
Description: A compressed-air powered launcher designed to fire non-lethal PepperBall projectiles.

Quantity: 2
Purchase Price: $1,300.00 each

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PEPPERBALL LIVE-X PROJECTILE
Description: The Live Projectile contains a concentrated amount of PAVA pepper powder. One round of LIVE-X contains the equivalent to 10 PepperBall rounds.

Discharged from a PepperBall Launcher, the projectile has a velocity of 280-350 FPS.

The projectile has a direct impact of 60ft and an area of saturation of 150+ft. The projectile contains 5% PAVA Powder.

Quantity: 465
Purchase Price: $3.00 per projectile

PEPPERBALL GLASS BREAKING PROJECTILE
Description:The Glass Breaking Projectile is a solid polymer projectile used breaking out residential windows and side-glass of automobiles.The projectiles are not intended for use on humans or animals.

Quantity:10
Purchase Price:$2.00 per projectile
Purpose: To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include but are not limited to:
(a) Self-destructive, dangerous and/or combative individuals (Exception - Glass Breaking Projectile).
(b) Riot/crowd control and civil unrest incidents (Exception - Glass Breaking Projectile). (c) Circumstances where a tactical advantage can be obtained. (d) Potentially vicious animals (Exception - Glass Breaking Projectile). (e) Training exercises or approved demonstrations.

Authorized Use: Only those officers who have been trained in the use of PepperBall launchers are authorized to use the PepperBall launchers.

Training: Sworn members utilizing PepperBall launchers and projectiles are trained in there use by POST certified less lethal and chemical agent instructors.

Expected Life Span:
(a) PepperBall Tac SF Launcher - 20 years
(b) PepperBall Live-X Projectile - 3 years
(c) PepperBall Glass Breaker – 3 years
Fiscal impact: Annual maintenance is approximately $50 for each PepperBall launcher.

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Legal and Procedural Rules: Use is established under Policy 302.3. It is the policy of the FVPD to utilize PepperBall only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force. 707.10 MILITARY SWAT EQUIPMENT INVENTORY (REGIONALIZED EQUIPMENT NOT IN

POSSESSION OF THE FOUNTAIN VALLEY POLICE DEPARTMENT)
The Fountain Valley Police Department participates in the West County Special Weapons and Tactics (SWAT) team, a regional SWAT and Crisis Negotiation Team (CNT) with Officers from the cities of Seal Beach, Los Alamitos, Cypress, and Westminster.

The following constitutes an inventory of previously purchased equipment known to be owned and/ or utilized by law enforcement units with which the Fountain Valley Police Department collaborates and/or participates for law enforcement purposes, which are deemed to be military and militaristic as defined by this policy. The equipment in this section is primarily used by the members of the West County SWAT Team.

6. Armored Vehicles
Commercially produced wheeled armored personnel vehicle utilized for law enforcement purposes.

Current Inventory:

LENCO BEARCAT G2
Description: Armored vehicle that seats 10-12 personnel with open floor plan that allows for rescue of down personnel. It can stop various projectiles, which provides greater safety to citizens and officers beyond the protection level of shield and personal body armor.

The bearcat was obtained through the UASI group procurement process in 2012, VIN FDAF5HT2BEC98082. The vehicle is currently stored at Westminster Police Department and used by the West County S.W.A.T. during training and S.W.A.T. operations for the region.

Quantity: 1
Purchase Price: (Refer to Westminster Police Department) Purpose: To be used in response to critical incidents to enhance officer and community safety, improve scene containment and stabilization, and assist in resolving critical incidents.

Authorized Use: The use of armored vehicles shall only be authorized by a watch commander or SWAT commander, based on the specific circumstances of a given critical incident.

Armored vehicles shall be used only by officers trained in their deployment and in a manner consistent with Department policy and training.

Expected Lifespan: 25 years.

Fiscal Impact: (Refer to Westminster Police Department).

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Training: All driver/operators shall attend formalized instruction and be trained in vehicle operations and practical driving instruction.

Legal and Procedural Rules: It is the policy of the Department to utilize armored vehicles only for official law enforcement purposes, and pursuant to State and Federal law.

Other Notes: The bearcat was obtained through the UASI group procurement process in 2012. The vehicle is currently stored at Westminster Police Department and used by the West County SWAT during training and SWAT operations for the region.

7. MOBILE COMMAND POST VEHICLE (MCP)
A vehicle used mobile office that provides shelter, access to Department computer systems, and restroom facilities during extended events.

Current Inventory:

FREIGHTLINER M2 106 VEHICLE
Description: The MCP can also be utilized for SWAT/CNT and other critical incidents, preplanned large events, searching for missing persons, natural disasters, and community events. After the City of Anaheim UASI group completed the procurement process and the vehicle was built, the City of Cypress took delivery of the MCP on April 19, 2007. The City of Cypress entered into an agreement with the cities of Los Alamitos and Seal Beach to accept, house, utilize and cost-share repairs and routine maintenance for the regional MCP vehicle. The vehicle is currently housed inside a City of Seal Beach fire station (OCFA station #48) and is utilized by all three cities for special events that include DUI checkpoints, public relations presentations, and emergency incidents. The vehicle is also the primary command and control platform for West County S.W.A.T. during training and S.W.A.T. operations for the region. The vehicle is staffed with a team of City employees and designated volunteers from all three cities including the West Cities Police Dispatch Communications Center. Costsharing for the vehicle is administered by the Cypress Finance Department and each city is billed a third of costs associated with the annual vehicle maintenance and technology service fees.

Quantity: 1
Purchase Price: (Refer to Cypress Police Department)
Purpose: To be used based on the specific circumstances of a given critical incident, large event, natural disaster, or community event that is taking place.

Authorized Use: Only officers trained in their deployment and operations in a manner consistent with Department policy and training are authorized to operate the MCP.

Furthermore, only officers who have completed the California State Class B Commercial driving school and become properly licensed will be allowed to drive the MCP. Situations

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which the MCP is authorized for use would include but not be limited to critical incidents, emergencies, and natural disasters.

Expected Lifespan: The MCP, 20-year lifespan on chassis and vehicle structure. Upgrades needed in 7 years to maintain IT systems.

Fiscal Impact: Annual maintenance cost is approximately $1,000. Cost-sharing for the vehicle is administered by the Cypress Finance Department and each city is billed a third of costs associated with the annual vehicle maintenance and technology service fees.

Training: The driver/operator shall receive training in the safe handling of the vehicle on a closed training course. Once the operator has shown competence in vehicle handling, the driver/operator will drive the vehicle throughout the city with an experienced driver. Driver/ operators shall also undergo California Department of Motor Vehicles commercial vehicle testing.

Legal and Procedural Rules: It is the policy of the Department to use the MCP only for official law enforcement purposes, and in accordance with California State law regarding the operation of motor vehicles.

Other Notes: After the City of Anaheim UASI group completed the procurement process and the vehicle was built, the City of Cypress took delivery of the MCP on April 19, 2007. The City of Cypress entered into an agreement with the cities of Los Alamitos and Seal Beach to accept, house, utilize and cost-share repairs and routine maintenance for the regional MCP vehicle. The vehicle is currently housed inside a City of Seal Beach fire station (OCFA station #48) and is utilized by all three cities for special events that include DUI checkpoints, public relations presentations, and emergency incidents. The vehicle is also the primary command and control platform for West County S.W.A.T. during training and S.W.A.T. operations for the region. The vehicle is staffed with a team of City employees and designated volunteers from all three cities including the West Cities Police Dispatch Communications Center. Costsharing for the vehicle is administered by the Cypress Finance Department and each city is billed a third of costs associated with the annual vehicle maintenance and technology service fees.

8. Chemical Agent and Smoke Canisters
Canisters that contain chemical agents that are released when deployed.

Quantity: (Refer to Cypress Police Department)
Purchase Price: (Refer to Cypress Police Department)
Purpose: To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include, but are not limited to:

1. Self-destructive, dangerous and/or combative individuals.

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2. Riot/crowd control and civil unrest incidents.

3. Circumstances where a tactical advantage can be obtained.

4. Potentially vicious animals.

5. Training exercises or approved demonstrations.

Authorized Use: Only officers who have received POST certification in the use chemical agents are authorized to use chemical agents.

Training: Sworn members utilizing chemical agent canisters are certified by POST less lethal and chemical agent instructors.

Expected Lifespan: 5 years from manufacturing date.

Fiscal Impact: No annual maintenance.

Legal and Procedural Rules: The use of chemical agents only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.

Other Notes: This equipment is owned and operated by Cypress Police Department and used by the West County SWAT during training and SWAT operations for the region which could result in its deployment and/or use in the City of Fountain Valley.

9. Explosive Breaching Tools
Tools that are used to conduct an explosive breach.

Current Inventory:

KINETIC BREACHING TOOL (KBT) MODEL 3-1000
Description: The KBT is a powder actuated kinetic energy forced entry tool.It utilizes a crimped blank explosive charge which drives a captive steel impact plate directed at the breach point.The impact plate extends forward out of the clamshell shroud and impacts against the target with a high level of kinetic energy to defeat the entry point or fortification.The impact plate automatically retracts and is reset in the breaching device.The KBT uses semiautomatic cycling, allowing repeated strikes on hardened or multiple targets.The KBT's intended use is for forced entry during high-risk operations with secure entry points and is designed to be operated by a single officer/tactical team member. The KBT weighs 28 lbs. dimensions are 35in. x 9.9in. x 9.3in. and has an audible report of 115dB. The KBT utilizes a proprietary blank cartridge to deliver up to 850ft. lbs. of kinetic energy through the steel ram.There is no projectile or explosive energy that leaves the device except for the force of the ram, which is permanently captured in the breaching device.

Quantity: 1
Purchase Price: (Refer to the Seal Beach Police Department) Purpose: To safely gain entry into a structure.

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Authorized Use: Explosive breaching may only occur after authorization by the Incident Commander or SWAT Commander in the field, and during training exercises.

Expected Lifespan: Kinetic Breaching Tool (KBT) - 30 years. Blank cartridges – 5 years (preferably rotate rounds within 1 year).

Fiscal Impact: No annual maintenance.

Training: All officers who use explosive breaching tools shall attend 40 hours of POST certified explosive breaching instruction and must additionally receive quarterly training for explosive operations.

Legal and Procedural Rules: It is the policy of the Fountain Valley Police Department to utilize breaching tools only for official law enforcement purposes, and pursuant to State and Federal law.

Other Notes: This equipment is owned and operated by Seal Beach Police Department and used by the West County SWAT during training and SWAT operations for the region which could result in its deployment and/or use in the City of Fountain Valley.

10. Long Range Acoustic Device (LRAD)
A high intensity directional acoustical array for long-range, crystal-clear hailing, notification, and an unmistakable warning tone. The LRAD is primarily used as a communication device.

Current Inventory:

GENASYS LONG-RANGE ACOUSTIC DEVICE (LRAD) MODEL 500X
Description: The Genasys Long-Range Acoustic Device (LRAD) is a public address system optimized to the primary range of hearing. The LRAD system can deliver a live or recorded voice message with clarity for any operational scenario. LRAD's advanced driver and waveguide technology ensures every broadcast is clearly heard and understood, even above crowd, engine, and background noise. The LRAD 500X is compact, lightweight, and designed for applications ranging from fixed security installations to vehicles and vessels. The 500X is easily mounted and transportable to provide law enforcement long-range communication and safe, scalable non-kinetic escalation of force. The audible range of the LRAD 500X can reach up to 6,561 ft. American Technology Corp. Serial Number: 05984 UASI ASAUA/DHS Number 11-00456.

Quantity: 1
Purchase Price: (Refer to the Westminster Police Department) Purpose: To be used to issue dispersal orders during crowd and riot control situations or to address the public in the event of civil emergencies, natural disasters, evacuations, and police incidents (e.g., missing persons, perimeters for wanted suspects/ K9 deployments, etc.). The LRAD may also be used to issue a warning tone.

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Authorized Use: LRAD use may only occur after the authorization of the Incident Commander or SWAT Commander in the field and/or during training exercises by personnel trained to operate the LRAD.

Expected Lifespan: 25 years with proper maintenance
Fiscal Impact: No annual maintenance.

Training: All officers trained in the use of the LRAD should set up and operate the device.

Legal and Procedural Rules: It is the policy of the Seal Beach Police Department to utilize the Long-Range Acoustic Device (LRAD) only for official law enforcement purposes, and pursuant to State and Federal Law.

Other Notes: This equipment is owned and operated by West County SWAT through the Westminster Police Department, which could result in its deployment and/or use in the City of Fountain Valley.

11. Robots
A remotely controlled unmanned machine that operates on the ground, which is utilized to enhance the safety of the community and officers.

Current Inventory:

TRANSCEND VANTAGE PATROL ROBOT
Description: Transcend's Vantage robot is the world's only double-patented automatic stair and obstacle climbing robot for First Responders. It's the only option for First Responders that want their robot to "just figure it out" on the first attempt to climb stairs, clothes, and junk without the burden of tedious manual controls associated with flippers and other limb systems. This means the Vantage can be used without prior training to enter a house or building to see, hear and learn what's happening before sending officers inside.

Cameras: Drive Camera (Night Vision), Pan Tilt Zoom (25x zoom, 90/15 degree up/down tilt, auto infrared night vision), FLIR Thermal. 3 hours constant driving, 12 hours monitoring / intermittent driving. 100+ lb. payload, zero degree turning radius, two-way audio (push to talk), key ignition, easy battery swapping (robot and controller).

Quantity: 1
Purchase Price: (Refer to the Westminster Police Department) Purpose: To be used to remotely gain visual/audio data, deliver HNT phone, open doors, disrupt packages, and clear buildings.

Authorized Use: Only assigned operators who have completed the required training shall be permitted to operate the robot(s) identified above. Use is established by the Bomb Squad Commander or Incident Commander.

Expected Lifespan: 8 to 10 years.

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Fiscal Impact: Annual maintenance and battery replacement cost is approximately $500.

Training: All robot operators must complete the FBI's 6-week hazardous device school prior to operating the robot(s) identified above.

Legal and Procedural Rules: It is the policy of the FVPD to utilize a robot only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to State and Federal law.

Other Notes: This equipment is owned and operated by West County SWAT through the Westminster Police Department, which could result in its deployment and/or use in the City of Fountain Valley.
707.11 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from City Council by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to City Council and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by City Council prior to engaging in any of the following (Government Code § 7071):
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 707.12 COORDINATION WITH OTHER JURISDICTIONS
Military equipment used by any member of this Department shall be approved for use and in accordance with this Department policy. Military equipment used by other jurisdictions that are providing mutual aid to this Department shall comply with their respective military equipment use policies in rendering mutual aid.

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707.13 MAINTENANCE OF MILITARY USE SUPPLY LEVELS
When stocks of military equipment have reached significantly low levels or have been exhausted, the Department may order up to 10% of stock in a calendar year without City Council approval to maintain essential availability for the Department's needs. Fountain Valley Police Department is authorized to acquire additional stock of items listed here from other law enforcement agencies of California Office of Emergency Services (Cal OES) in the event of an emergency when approved by the Chief of Police or designee.

Equipment Make/Model Quantity Purchase Cost
Unmanned Aircraft System (UAS)-Drone (1):

DJI / Mini2 1 $3,770.36
Autel EVO II Pro 1 $2,447.00
40 MM Launchers and Rounds
LMT Defense, 40MM single shot launcher 3 $837.50
Def Tech / 40MM Exact Impact Sponge 83 $18.95
Def Tech / 40MM Direct Impact CS 10 $24.50
Less Lethal Shotguns
Remington Model 870 35 $946.00
Drag Stabilized 12-Gauge Beanbag Round 460 $5.00
Rifles and Rounds
Rifles
Daniel Defense / DDM4 23 $2,057
Daniel Defense / AR15 5 $2,057
Colt / M16 2 $2,057
Remington 700 2 $2,200
Rounds
Winchester 223 Remington (55) FMJ 2,200 $169
Winchester Ranger 223 Remington (55) PSP 9,200 $297.44
PepperBall Launchers and Rounds
Launcher PepperBall Tac SF Launcher 2 $1,300
Rounds Inert (Training)
Glass Breaking 10 $20.95
Live - X Rounds 465 $3.00
Equipment/Transport Vehicle:

SWAT 2019 Ford F450 Crewcab / Vin # 1FD0W4GY4KED00546 / License Plate # 1414363 1 $130,000.00 Distraction Devices (LSDD - "Flashbangs"):

SWAT Combined Tactical Systems (CTS), Model 7290 Flashbang 18 $43.93 Chemical Agents
SWAT Riot Control CS Continuous Discharge 10 $25.75
Flameless smone Tri-Chamber CS 20 $35.75
Ballsitic Vests
SWAT Aardvark Project 7 5 $3,485
SWAT Pro Tech Armored plates X-CAL LP 5 $2,700

Expected Life Span Annual Fiscal Impact Notes:
3-5 years $700.00
3-5 years $700.00
25 years $50.00
5 years N/A
5 years N/A
25 years $50.00
No Expiration Date N/A
25 years $50.00
25 years N/A
25 years N/A
25 years N/A
No Expiration Date N/A price per 500
No Expiration Date N/A price per 500
20 Years $50.00
20 Years N/A price per 10
3 years N/A
10 years $1,000.00
Until Used None
5 years N/A
5 years N/A
5 years N/A
5 years N/A

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: May 16, 2023
Members of the City Council
SUBJECT: Appeal of City Manager’s Decision to Deny a Fine Deposit Waiver based on Financial Hardship for an Appeal Hearing of an Administrative Citation Issued to 16975 Mount Hope Street for Short Term Rental Violation Three-Year Strategic Goals
☐ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☒ Not applicable
EXECUTIVE SUMMARY:

Appeal of the City Manager’s decision to deny a request for a fine deposit waiver on the basis of financial hardship for an appeal hearing of an administrative citation issued for a short term rental violation at 16975 Mount Hope Street (Subject Property.) This appeal of the City Manager’s decision is made pursuant to Fountain Valley Municipal Code (“F.V.M.C.”) section

1.17.010.

DISCUSSION:

Linh Do and Dung Le are the owners of the Subject Property. On January 11, 2023, a notice of violation of the short-term rental ordinance was sent to Do and Le as owners of the Subject Property for advertising and operating a short-term rental on VRBO and Airbnb for thirty nights.

On March 22, 2023, a second notice of violation was sent to the Do and Le regarding the same violations. On April 13, 2023, Code Enforcement issued a citation for the violation since the Subject Property was still being advertised on VRBO and AirBnb for 30 nights in violation of the short-term rental ordinance.1 F.V.M.C. section 4.95.020 defines “Short term rental” as a residential dwelling, or any portion of a residential dwelling, that is “rented to a person or persons for thirty consecutive days or less.”
1 F.V.M.C. 4.95.030.

Appeal of City Manager Decision to Deny Waiver of Fine Deposit for Appeal of Administrative Citation Issued to 16975 Mount Hope
May 16, 2023

On April 17, 2023, Do and Le submitted a request for appeal of the administrative citation along with a request for waiver of the fine deposit of $1,500.00 on the basis of financial hardship.

F.V.M.C. section 1.13.080, subdvs. (d)(1), states, “No hearing to contest an administrative citation before a hearing officer shall be held unless and until a request for hearing form has been completed and timely submitted and the fine has been deposited in advance. The fine deposit may be waived by the city manager upon a showing of financial hardship.” The appellant’s submitted Attachment A, documents in support of their contention that it is a financial hardship to deposit the $1,500.00 fine for the hearing. The City Manager also used Attachment B, information regarding the profit of the short-term rental at the Subject Property, in evaluating whether to grant or deny the request for waiver of the fine deposit. Ultimately, the City Manager denied the request. This appeal of her decision followed pursuant to F.V.M.C. section 1.17.010.

In the documents submitted in support of their showing of a financial hardship, it appears Do and Le excluded any reference to income from the short term rental and contend, instead, that because their Skin Care business is losing money, that they should not have to deposit the fine. Further, Do and Le allege that their Skin Care business is losing money because it is paying rent of $4,607 per month for the office, but per the attached check, it appears that the office is the short-term rental at the Subject Property and they are paying themselves, calling it a loss.

PUBLIC NOTIFICATION:

Not applicable.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

ATTORNEY REVIEW:

The Attorneys for the City prepared this report.

ALTERNATIVES:

Alternative No. 1:

Alternative No. 2:

Affirm the City Manager’s decision to deny the request for waiver of the fine deposit for a hearing to appeal the administrative citation issued on April 13, 2023 on the grounds there is no financial hardship to deposit the $1,500.00 fine.

Grant the request for waiver of the fine deposit for a hearing to appeal the administrative citation issued on April 13, 2023 on the basis of financial hardship.

Appeal of City Manager Decision to Deny Waiver of Fine Deposit for Appeal of Administrative Citation Issued to 16975 Mount Hope
May 16, 2023

RECOMMENDATION:

Staff is requesting City Council approval of Alternative No. 1 to affirm the City Manager’s decision to deny the request for waiver of the fine deposit for a hearing to appeal the administrative citation issued on April 13, 2023 on the grounds there is no financial hardship to deposit the $1,500.00 fine.

Prepared by: Alexandra Halfman, Attorneys for the City
Approved by: Maggie Le, City Manager
Attachments:

1. Attachment A – Appeal of Citation and Documents in Support

2. Attachment B – Short Term Rental Information

2 On the other hand, we only have tiny income from renting Long-term-rental Airbnb (our only source of income) at this point besides the new business. Considering all the utilities, Airbnb supplies, Internet, Security, among other, the income from Airbnb is not enough for us to pay for all other expenses.

In addition, we currently facing a huge amount of credit debt that hasn’t been paid yet. All other documents had been submitted to the City of Fountain Valley previously, including but not limited to Tax Return, Written Statements, Financial Hardship Waiver Form, among other. Once again, we are actively monitoring the citation fine and responding all notices and letters in timely manner; both in person at the City Hall of Fountain Valley and via email ([email protected]) with the City Clerks Please keep all documents confidentiality. We will definitely join the City Council Meeting on May 16, 2023 @ 6:00 PM for the appeal of the City Manager(s) decisions and the citations.

To sum up, we are not ignoring the citation, we have been providing all the documents/evidence we have to prove our financial hardship and to prove that we did not violate the Short-term-rental Ban. Please update the citation record, because we just received a Final Notice Letter regarding the citation before it will be sent to collection agency.

We, hereby, to declare that all the information above are true and correct, to the best of our knowledge and beliefs.

3 Dung Le & Linh Do

Address Unit
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16975 Mt
Hope St,
Fountain
Valley,
CA
92708,
USA
2023 Q1 $2,264.00 $4,056.00 $8,490.00 24 43 $94.33
16975 Mt
Hope St,
Fountain
Valley,
CA
92708,
USA
2022 Q4 $9,415.00 $9,415.00 $9,415.00 92 92 $102.33
16975 Mt
Hope St,
Fountain
Valley,
CA
92708,
USA
2022 Q3 $8,000.00 $10,400.00 $12,267.00 60 78 $133.33
16975 Mt
Hope St,
Fountain
Valley,
CA
92708,
USA
2022 Q2 $8,760.00 $8,760.00 $11,072.00 72 72 $121.67

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: May 16, 2023
Members of the City Council
SUBJECT: Adopt A Resolution of the City Council of the City of Fountain Valley Appointing Stephen Drinovsky, Interim Public Works Director Government Code Section 21221(h) and Approving a Retired Annuitant Contract
Three-Year Strategic Goals
☐ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☒ Not applicable
EXECUTIVE SUMMARY:

City Council to adopt a resolution appointing Stephen Drinovsky, Interim Public Works Director and approve a retired annuitant contract.

DISCUSSION:

The City currently has an active recruitment open to find a permanent replacement to fill the Public Works Director role. The City Manager has a desire to maintain continuity in the Public Works Department and appointing an interim Public Works Director is necessary to fill a critically needed position until a permanent replacement is appointed. The term of the agreement is effective as of May 22, 2023 and shall remain and continue in effect until and including May 21, 2024, or until the successful hiring of a permanent Public Works Director, whichever occurs first.

Stephen is a retired Public Works Director for the City of Placentia. Stephen’s career also includes working for the City of Palm Springs, City of Rialto, and Town of Yucca Valley. While the City is recruiting for a Public Works Director, Stephen has the necessary skills and experience to assist the department with the critical functions and responsibilities during the vacancy. The appointment will not exceed 960 hours within a fiscal year and will be compensated, at Step 5 of the Public Works Director, Range D03. The classification salary range is listed on the City’s Salary Schedule and made publically available on the City’s website. The interim appointment is not eligible for any other forms of pay, benefits or leave accruals while serving in a retired annuitant appointment.

Approve Employment Contract
May 16, 2023

Due to the Public Employees’ Pension Reform Act of 2013 (PEPRA, Assembly Bill 340), Senate Bill 1021 & Senate Bill 13 established new requirements for post-retirement employment of CalPERS retirees. Effective January 1, 2013, retirees can be hired into retired annuitant interim positions approved by the governing body of the employer, as authorized by Government Code sections 7522.56 and 21221(h) during an active recruitment for a permanent replacement for the vacant position. Stephen has met the requirements under the above government codes and has bona fide separation in service of 180-day wait period or more.

FISCAL REVIEW:

Funds allocated in the current Fiscal Year 2022-2023 budget includes sufficient funding. Salary budgeted for the Fiscal Year 2023-2024 for the full-time Public Works Director position can be applied to the Interim Public Works position until the position is permanently filled.

PUBLIC NOTIFICATION:

Not applicable.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

ATTORNEY REVIEW:

Attorneys for the City have reviewed and approved this agreement as to form.

ALTERNATIVES:

Alternative No. 1:

Alternative No. 2:

RECOMMENDATION:

Adopt a Resolution Appointing Stephen Drinovsky as an Interim Public Works Director and approving a Retired Annuitant Contract.

Do not adopt a Resolution Appointing Stephen Drinovsky as an Interim Public Works Director and do not approve a Retired Annuitant Contract.

Staff is requesting City Council approval of Alternative No. 1 to Adopt a Resolution appointing Stephen Drinovsky as an Interim Public Works Director and approving a Retired Annuitant Contract.

Prepared by: Carrie Hanes, Human Resources Director
Fiscal review by: Ryan Smith, Finance Director
Approved by: Maggie Le, City Manager
Attachments:

1. Resolution

2. Contract

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FOUNTAIN VALLEY APPOINTING STEPHEN F.

DRINOVSKY INTERIM PUBLIC WORKS DIRECTOR
Government Code Section 21221(h) AND APPROVING

RETIRED ANNUITANT CONTRACT
WHEREAS, Government (Gov.) Code section 21221(h) of the Public Employees’ Retirement Law permits the governing body to appoint a CalPERS retiree to a vacant position requiring specialized skills during recruitment for a permanent appointment, and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as it is a single appointment that does not exceed 960 hours in a fiscal year; and
WHEREAS, the City Council desires to appoint Stephen Drinovsky as an interim appointment retired annuitant to the vacant position of Interim Public Works Director for the City of Fountain Valley under Gov. Code section 21221(h), effective May 22, 2023; and WHEREAS, the City Council, the City of Fountain Valley and Stephen Drinovsky certify that Stephen Drinovsky has not and will not receive a Golden Handshake or any other retirement-related incentive; and
WHEREAS, an appointment under Gov. Code section 21221(h) requires the retiree is appointed into the interim appointment during recruitment for a permanent appointment; and
WHEREAS, the governing body has authorized the search for a permanent appointment prior to May 22, 2023; and
WHEREAS, this Gov. Code section 21221(h) appointment shall only be made once and therefore will end on May 22, 2024 or date of appointment of a permanent Public Works Director, whichever comes first; and
WHEREAS, the entire employment agreement, contract or appointment document between Stephen Drinovsky and the City of Fountain Valley has been reviewed by this body and is attached hereto; and
WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and WHEREAS, the maximum base salary for this position is $18,601.26 per month and the hourly equivalent is $107.31; the minimum base salary for this position is $15,303.31 and the hourly equivalent is $88.29; and

WHEREAS, the hourly rate paid to Stephen Drinovsky will be $107.31, or Step 5 of the hourly rate of the Director of Public Works as shown in CITY’s most recently adopted salary schedule, whichever is greater; and
WHEREAS, Stephen Drinovsky has not and will not receive any other benefit, incentive, compensation in lieu of benefit or other form of compensation in addition to this hourly pay rate; and
THEREFORE, BE IT RESOLVED THAT the City Council hereby certifies the nature of the employment of Stephen Drinovsky as described herein and detailed in the attached employment agreement and that this appointment is necessary to fill the critically needed position of Interim Public Works Director for the City of Fountain Valley by May 22, 2023 because the critical need for a Public Works Director to manage City projects and oversee the Department of Public Works.

PASSED AND ADOPTED by the City Council of the City of Fountain Valley at a regular meeting thereof held on the 22nd day of May, 2023.

Kim Constantine, Mayor
ATTEST:

Rick Miller, City Clerk-Administrator
APPROVED AS TO FORM:

HARPER & BURNS LLP
Colin Burns, Attorneys for the City

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: April 4, 2023
Members of the City Council
SUBJECT: Approve and Adopt Resolutions to Approve the Execution of a Joint Powers Agreement Creating the California Joint Powers Authority, Approve Pooling of Self-Insurance through the Excess Liability Protection Program of the California Joint Powers Insurance Authority, Resolution Establishing a Policy that Delegates Basic Claim Handling of Minor Claims to the City Manager or Designee and appointment of a Member of the City Council to be the City’s Representative to the CalJPIA Executive Committee
Three-Year Strategic Goals
☒ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses and opportunities ☒ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☒ Attract and retain quality staff
☐ Not applicable
EXECUTIVE SUMMARY:

At the April 4 City Council Meeting, the City Council voted to switch from the PRISM-ELA Program to the California Joint Powers Authority. The actions taken by adopting the attached Resolutions will formalize the city’s admittance into the CJPIA program.

DISCUSSION:

On April 26th, the CJPIA Executive Committee voted and approved the City of Fountain Valley joining the JPIA. The attached Resolutions are required by the JPIA in order to finalize the city’s admittance into the JPIA. Along with the Resolutions, as discussed previously, the City Council will need to elect a member of the City Council to represent the city as a member of the CJPIA Executive Committee.

In addition to the Resolutions and Executive Committee appointment document, a Third Party Administrator (TPA) agreement with Carl Warren is included. The annual cost for the TPA services with Carl Warren is $29,000. That amount for the TPA services; however, is included as part of the overall budget amount for the General Liability Policy with CJPIA. There is no additional budget amount being requested for those services.

FINANCIAL ANALYSIS:

There are no financial implications with respect to these Resolutions as they are only for the city’s acceptance into the JPIA program.

ATTORNEY REVIEW:

The Attorney for the City has reviewed and approved of the attached Resolutions.

ALTERNATIVES:

Alternative No.1: Approve the attached Resolutions and appoint a member of the City Council to the executive committee of the CJPIA.

Alternative No. 2: Do not approve the attached Resolutions or appoint a member of the City Council to the executive committee of the CJPIA, and provide staff with further direction.

RECOMMENDATION:

Staff recommends that the City Council Approve the attached Resolutions and appoint a member of the City Council to the executive committee of the CJPIA.

Prepared by: Rick Miller, City Clerk / Administrator
Reviewed by: Colin Burns, Attorney for the City
Approved by: Maggie Le, City Manager

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY,

COUNTY OF ORANGE, CALIFORNIA, APPROVING EXECUTION OF THE JOINT

POWERS AGREEMENT CREATING THE CALIFORNIA JOINT POWERS

INSURANCE AUTHORITY

THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY DOES HEREBY FIND AND RESOLVE AS FOLLOWS:

WHEREAS, pursuant to the provisions of Sections 990, 990.4, 990.8 and 6500 of the California Government Code, the California Joint Powers Insurance Authority ("California JPIA") has been created by a Joint Powers Agreement; and WHEREAS, Joint Protection Programs have been developed by the California JPIA pursuant to the provisions of said Agreement; and
WHEREAS, Article 22 of said Agreement provides for additional members to become parties to the Joint Powers Agreement creating the California JPIA and enter one or more Joint Protection Programs providing self-insurance and loss pooling; and WHEREAS, the self-insurance and loss pooling programs of the California JPIA, as well as its group insurance coverage programs, offer significant advantages to the City of Fountain Valley in terms of cost, protection, risk management and loss control advice and assistance, and entering such programs would be in the best interest of the City of Fountain Valley.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY DOES HEREBY RESOLVE, ORDER AND DETERMINE THE FOLLOWING:

Section 1. That the Mayor of the City of Fountain Valley is hereby authorized and directed to execute the Joint Powers Agreement on behalf of the City of Fountain Valley binding the Member to the terms and conditions of said Agreement. The City of Fountain Valley understands and agrees that, by executing the Agreement, it will be bound by the terms of the Joint Powers Agreement, specifically Article 21, “Responsibilities of Members,” including the obligation to make deposits and deposit adjustments for joint protection programs it joins.

Section 2. That the City of Fountain Valley hereby joins the California JPIA, for a period of not less than three (3) years.

Section 3. That the City of Fountain Valley acknowledges and agrees to the provisions of Article 24 of the Agreement, which provides:

(a) A Member that enters into this Agreement may not withdraw as a party to this Agreement and as a Member of the Authority for a three-year period commencing on the effective date of its membership.
(b) A Member that enters into a joint protection program may not withdraw as a participant in that program for a three-year period commencing on the effective date of its participation in the joint protection program.
(c) After the initial three-year non-cancellable commitment to membership in the Authority or participation in a joint protection program, a Member may withdraw only at the end of any protection period, provided it has given the Authority a twelve-month written notice of its intent to withdraw from this Agreement and/or any joint protection programs in which it participates.

Passed, Approved and adopted at a regular City Council meeting this ________ day of , 20 by the following vote:

Ayes:

Nays:

Absent:

Abstain:

ATTEST:
_________________
City Clerk, Rick Miller Mayor, Kim Constantine
APPROVED TO FORM:

HARPER & BURNS LLP
Colin Burns
Attorneys for the City

RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY TO AUTHORIZE AND APPROVE POOLING OF SELFINSURANCE THROUGH THE EXCESS LIABILITY PROTECTION

PROGRAM OF THE

CALIFORNIA JOINT POWERS INSURANCE AUTHORITY

THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY, CALIFORNIA, HEREBY DOES FIND AND RESOLVE AS FOLLOWS:

WHEREAS, pursuant to the provisions of Section 6500 et seq. and also Sections 990.4 and 990.8 of the California Government Code, the California Joint Powers Insurance Authority (“California JPIA”) was created in 1977; and WHEREAS, the City of Fountain Valley has executed the Joint Powers Agreement, to become a member of the California JPIA; and WHEREAS, the California JPIA has established and administered a number of successful self-insurance and loss pooling programs since April 1, 1978; and WHEREAS, there are significant financial and administrative advantages for the City of Fountain Valley to participate in the Excess Liability Program.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY DOES HEREBY RESOLVE, ORDER AND DETERMINE THE FOLLOWING:

Section 1. Liability coverage for the City of Fountain Valley through the Excess Liability Program of the California JPIA is hereby authorized and directed effective July 1, 2023, for a minimum commitment period of three years, pursuant to the terms of the Excess Liability Program Memorandum of Coverage in effect at the time of any occurrence covered by the Memorandum of Coverage.

Section 2. That an initial annual contribution of $675,650, or such pro-rata part thereof as the California JPIA might determine for coverage of less than a fiscal period, for the Excess Liability Protection Program is approved and the appropriate officers of the City of Fountain Valley are authorized to pay the same to the California JPIA.

Section 3. That City of Fountain Valley will subsequently be required to make deposits and deposit adjustments as provided in the California JPIA Joint Powers Agreement.

Section 4. That the Mayor shall sign and the City of Fountain Valley’s Clerk shall certify to the passage and adoption of this Resolution, and thereupon the same shall take effect and be in force.

Section 5. That the City of Fountain Valley’s Clerk is directed to forward a certified copy of this Resolution to the California JPIA, 8081 Moody Street, La Palma, CA 90623.

Passed, Approved and Adopted at a regular City Council meeting this ________ day of , 20 by the following vote:

Ayes:

Nays:

Absent:

Abstain:

ATTEST:
_________________
City Clerk, Rick Miller Mayor, Kim Constantine
APPROVED TO FORM:

HARPER & BURNS LLP
Colin Burns
Attorneys for the City

RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN

VALLEY ESTABLISHING A POLICY THAT DELEGATES BASIC CLAIM

HANDLING OF MINOR CLAIMS TO THE CITY MANAGER OR

DESIGNEE AS AUTHORIZED BY GOVERNMENT CODE SECTION
935.4

THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY, CALIFORNIA, HEREBY DOES FIND AND RESOLVE AS FOLLOWS:

WHEREAS, Section 935.4 of the Government Code of the State of California provides that a local public entity may authorize an employee of the local public entity to resolve a claim against the local public entity; and
WHEREAS, the City of Fountain Valley has now determined to adopt such a policy;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY DOES HEREBY RESOLVE, ORDER AND DETERMINE THE FOLLOWING:

Section 1. The City Manager is authorized to take administrative actions necessary to resolve claims against the City of Fountain Valley that do not exceed $50,000 pursuant to the provisions of Government Code Section 935.4.

Section 2. This Resolution shall become effective immediately upon its adoption.

Section 3. The City of Fountain Valley City Clerk shall certify the adoption of this Resolution.

Passed, Approved and Adopted at a regular City Council meeting this ________ day of , 20 by the following vote:

Mayor Constantine:

Mayor Pro Tempore Grandis:

Council Member Bui:

Council Member Cunneen:

Council Member Harper:

ATTEST:
_________________
City Clerk, Rick Miller Mayor, Kim Constantine
APPROVED TO FORM:

HARPER & BURNS LLP
Colin Burns
Attorneys for the City

Delegation of Claims Handling
Response Form
Please return the completed response form indicating the claims handling process your agency has chosen to employ, and the applicable resolution.

The response form and approved resolution must be provided via email to:

Edith Aviña, Administrative Assistant
[email protected]
The City Council has determined the liability claims handling responsibility for the City of Fountain Valley as follows:

 Pursuant to Government Code Sections 910.8, 911.3, 911.6, 912.6, the legislative body of the local public agency resolves a claim against the local public agency.

X Pursuant to Government Code Section 935.4, the legislative body of the local public entity authorizes an employee of the local public entity to resolve a claim against the local public agency. (Return the attached Resolution Delegating Basic Claims Handling to Agency Staff)
 Pursuant to Government Code Sections 910 et seq., the legislative body of the local public agency delegates to the California JPIA authority to act on behalf of the local public agency to accept, reject, return as insufficient, or return as untimely any claims against the local public agency, and to provide any notices authorized under those statutes. (Return the attached Resolution Delegating Claims Handling to the California JPIA)
__ ___
Maggie Lee (signature)
_______________________________
Maggie Lee (please print)
_______________________________
City of Fountain Valley
_______________________________
Date

THIRD PARTY CLAIMS ADMINISTRATION AGREEMENT

LIABILITY SELF INSURANCE PROGRAM
THIS AGREEMENT, entered into effective July 1, 2023, by and between (1) CITY OF FOUNTAIN VALLEY, hereinafter called "MEMBER," (2) CARL WARREN & COMPANY, hereinafter called "THIRD PARTY ADMINISTRATOR or TPA," and (3) CALIFORNIA JOINT POWERS INSURANCE AUTHORITY, hereinafter called “AUTHORITY” is for certain services as outlined in connection with the duties and responsibilities of administering a program of self-insurance.

W I T N E S S E T H
WHEREAS, the MEMBER has undertaken to self-insure a defined Member Retained Limit (MRL) in conjunction with its participation in the AUTHORITY’S Excess Liability Program and is in need of a qualified third party to whom to delegate the responsibilities and duties of administering said partially self-insured liability insurance program (the “Self Insurance program”), and WHEREAS, the TPA is engaged in the handling and administration of claims within the MRL, WHEREAS, the AUTHORITY is a party to this Agreement for the purpose of providing oversight, NOW, THEREFORE, the MEMBER, the TPA, and the AUTHORITY mutually understand and agree as follows:

1. GENERAL
The TPA shall: (a) supervise and administer the handling of liability claims within the MRL for the MEMBER; (b) represent the MEMBER in all matters covered under the AUTHORITY’s Memorandum of Coverage for the Excess Liability Program, related to the investigation, adjustment, processing, supervision and resolution of liability claims for money damages asserted by third parties against the MEMBER and other participants in the program as specified; and (c) provide to the MEMBER and to the AUTHORITY all services more particularly set forth hereinafter.

2. CLAIMS INVESTIGATION SERVICES
The TPA shall provide complete claims adjustment services on each accident, incident, damage, or lawsuit that may be the subject of a claim against the MEMBER which is reported to the TPA by the MEMBER and is covered under the AUTHORITY’s Memorandum of Coverage for the Excess Liability Program. Such services shall include, but not be limited to (a) maintenance of a claim file on each potential or actual claim

reported to the TPA; (b) whenever its investigation results in a determination that the MEMBER has sustained a liability to a third party, the TPA shall process any such claim or potential claim for settlement in accordance with the MEMBER'S instructions for settlement of such claims, as set forth in the Payment Guidelines; (c) obtain all release agreements or proofs of loss on settlement of any claim or potential claim; (d) act as account manager for CMS (Centers for Medicare and Medicaid Services) reporting purposes and provide notification of potential section III-CMS information to Medicare or its designated administrator, however per Medicare the TPA cannot be the official Responsible Reporting Entity (RRE).

Investigative and analytical services shall include, but not be limited to on-site investigation, photographs, interviewing of witnesses, determination of losses and other such investigative services necessary to determine liability and loss.

3. SETTLEMENT AUTHORITY
Settlement authority within the MRL shall be defined in EXHIBIT A attached hereto and referred to herein as the “Payment Guidelines”. Such Payment Guidelines will be binding on the three parties, and incorporated into this Agreement, when executed by the three parties. From time to time during the Term, the Payment Guidelines may be adjusted by mutual agreement of the three parties, with each revised Payment Guidelines superseding any previously adopted Payment Guidelines and becoming binding on the three parties, and incorporated into this Agreement, when executed by the three parties.

The TPA shall promptly notify both the MEMBER and the AUTHORITY in writing of any claim where the total incurred value reaches 50% of the MRL.

4. ADMINISTRATIVE SERVICES
The TPA shall provide the following administrative services: (a) assignment of a Claims Adjuster to the MEMBER; (b) provide the MEMBER and the AUTHORITY with monthly reports which state the status of each claim, and the amount of outstanding reserves and claim payments; and (c) provide the MEMBER and the AUTHORITY with a periodic review of all open claims along with an explanation of the strategy for managing and resolving the claims.

5. LEGAL AND SUPPORT SERVICES
The TPA shall provide the following legal and support services on each claim wherein the claimant has commenced litigation: (a) Upon notification from the MEMBER that litigation has been filed on an open claim, the TPA shall notify the MEMBER and in accordance with the MEMBER’S instructions notify the AUTHORITY, as well as any other applicable reinsurance and/or excess insurance provider, and/or trial attorney assigned to handle the case and provide the aforementioned parties with all information and files concerning the claim; (b) maintain liaison with the aforementioned parties and provide such investigation

services as are required by such attorney during pre-trial and trial stages; and (c) assist the aforementioned parties with discovery and other legal processes.

6. SUBROGATION SERVICES
For liability claims which are covered, handled, and paid under the Excess Liability Program, the TPA, where necessary, shall supervise and administer subrogation, restitution, and recovery for the MEMBER, represent the MEMBER in all matters related to the investigation, collection processing, supervision and resolution of subrogation claims against any responsible third parties.

7. TERM OF AGREEMENT
The Term of the Agreement (the “Term”) shall commence on July 1, 2023, and may be terminated by any of the three parties to the Agreement pursuant to Section 12 herein. This Agreement may be automatically renewed (extended) upon mutual agreement of the three parties. Claims of the MEMBER shall be administered by the TPA for the life of the contract between the three parties; meaning, in the event that the contract is terminated, commencing on the effective date of the termination, the TPA is no longer responsible for administering the claims but shall comply with Section 13 herein regarding the disposition of files upon termination of the Agreement.

8. PRICING
The MEMBER agrees to pay the AUTHORITY for claims handling and related services in accordance with the fee schedule attached hereto as EXHIBIT B and the AUTHORITY agrees to pay the TPA.

Revisions to the fee schedule are subject to approval by the AUTHORITY with appropriate notice provided to the MEMBER. In addition to the fee schedule (EXHIBIT B), pass-through expenses may be charged to the MEMBER, which are defined as claim-related or claims adjustment expenses that are deemed by the MEMBER and the AUTHORITY to be categorized as pass-through expenses; as opposed to routine expenses which are charged to the claim file. The MEMBER agrees to pay for all reasonable and supportable passthrough expenses incurred in connection with services provided under this Agreement.

The TPA agrees to obtain approval from the MEMBER and the AUTHORITY for passthrough expenses. Charges for non-file-related professional services performed at the specific request of the MEMBER will be billed on an as quoted basis. Any expenses related to meeting attendance by Claims Adjusters or any other representatives of the TPA shall be borne by the TPA. No TPA travel expenses shall be charged to the MEMBER or to the AUTHORITY.

9. DATA PROCESSING AND OWNERSHIP OF RECORDS
The following standard services are included in the services provided pursuant to this Agreement: electronic claims data for up to three recipients (periodic scheduled reports),

and access to the TPA’s electronic claims management system for up to three users. For security purposes, access to the claims management system and any report subscriptions will automatically terminate at the end of twelve (12) months. The MEMBER shall be responsible for notifying the TPA to renew user subscriptions and access or to substitute users. Additional users or report recipients shall be charged on a per person basis at an annual fee of $250.

Custom reports and data feeds can also be requested. They are subject to a cost per quote at a rate per project or per hour once the scope has been agreed upon. Claim files and electronic records created and maintained by the TPA are the property of the MEMBER. The TPA does not possess any interest, title, lien, or right to any client data or records. Therefore, upon termination of the contract, the TPA is relieved of all obligations to provide data processing services to the MEMBER and to the AUTHORITY and will deliver to the MEMBER and to the AUTHORITY all claim data and records in a readily available excel and PDF format.

If a different format is desired by the MEMBER or the AUTHORITY, the TPA will provide it at an agreed upon and reasonable cost and timeline.

10. MEMBER'S RESPONSIBILITIES
The MEMBER shall provide the TPA with copies of all relevant documents upon request and without charge and shall make available any MEMBER employee for interviews by the TPA at reasonable times concerning any investigation of a claim or incident pursuant to this Agreement.

The AUTHORITY shall invoice the MEMBER for services rendered in accordance with the fee schedule as set forth in this Agreement (EXHIBIT B). The AUTHORITY will invoice the MEMBER as needed should there be any pass-through costs as noted in Section 8. Pricing.

All sums due shall be paid by delivery of the MEMBER’S check, or wire transfer to the AUTHORITY’S offices located at the address set forth herein, within thirty (30) days following the invoice date.

11. CONFLICT OF INTEREST
In the event a claim or incident is reported to the TPA by the MEMBER, and it is determined that the actual or potential claimants therein are also clients of the TPA, then the TPA shall immediately notify both the MEMBER and the AUTHORITY of such potential conflict of interest so that an alternative, independent investigator, and adjuster may be considered by the MEMBER and the AUTHORITY.

12. CANCELLATION OF AGREEMENT
a. Voluntary Termination. This Agreement may be terminated at any time by any of the three parties, without cause, by giving the other parties not less than ninety (90) days prior written notice of such termination.

b. Termination for Cause. This Agreement shall terminate at the election of the MEMBER, the TPA, or the AUTHORITY if any party breaches any material provision of this Agreement and fails to cure such breach within thirty (30) business days after written notice thereof is given.

13. DISPOSITION OF FILES UPON TERMINATION OF AGREEMENT
a. All files on each claim shall be the property of the MEMBER. b. In the event of expiration of this Agreement, non-renewal thereof, or cancellation, the MEMBER agrees to pay any outstanding invoice for the annual fee on a pro-rated basis, and in full for non-disputed, outstanding pass-through expense invoices. Alternatively, the AUTHORITY shall reimburse the MEMBER, on a pro-rated basis, for the portion of the annual fee that has not been earned. Upon receipt of payment of outstanding invoices or along with issuance of a reimbursement, the AUTHORITY shall notify the TPA to promptly forward all completed and pending claim files to the MEMBER unless the MEMBER requests the TPA to continue to process any files on a time and expense basis as provided for in the TPA'S Rate Manual at the time such services are rendered. c. The MEMBER agrees to pay separately for the external retaining, storing, retrieving, logging, packing, and shipping of files which are stored off premises by the TPA.

14. HOLD HARMLESS
a. MEMBER’S Indemnification Obligation. The MEMBER agrees it will indemnify, defend and hold harmless the AUTHORITY, and the TPA and its affiliates, and their respective officers, directors, employees, agents, attorneys, shareholders, and their successors and assigns (collectively “TPA Indemnity”), from and against any loss, claim, damage, cost or expense, including but not limited to reasonable attorney’s fees and costs, that such TPA Indemnity may incur arising out of, in connection with, or in any way related to the performance of the TPA’S duties and obligations under this Agreement except claims resulting from or arising out of:
(i) acts the TPA performed in bad faith, TPA’s failure to act resulting in a breach of TPA’s duties and obligations under this Agreement, and/or TPA’S negligence, gross negligence, or willful misconduct; or
(ii) acts of the TPA which exceed the authority granted to it by the MEMBER under this Agreement; or
(iii) acts or failures to act of the TPA which are not in compliance with lawful written instructions issued by the MEMBER to the TPA provided such instructions are consistent with the scope, objectives, and terms of this Agreement. b. TPA’S INDEMNIFICATION OBLIGATION. The TPA agrees it will indemnify, defend, and hold harmless the AUTHORITY, the MEMBER and its respective affiliates, and their

respective officers, directors, employees, agents, attorneys, shareholders, and their successors and assigns (collectively “MEMBER Indemnity”), from and against any loss, claim, damage, cost or expense, including but not limited to reasonable attorney’s fees and costs, that such MEMBER Indemnity may incur resulting from or arising out of:
(i) acts the TPA performed in bad faith, TPA’s failure to act resulting in a breach of TPA’s duties and obligations under this Agreement, and/or TPA’S negligence, gross negligence, or willful misconduct. TPA agrees that its duty to indemnify the MEMBER as provided herein includes any claims, penalties or liabilities resulting from the negligence, omission, or willful misconduct of TPA related to TPA’s provision of Medicare notification services as provided in Section 4(d).
(ii) acts of the TPA which exceed the authority granted to it by the MEMBER under this Agreement; or
(iii) acts or failures to act of the TPA which are not in compliance with lawful written instructions issued by the MEMBER to the TPA provided such instructions are consistent with the scope, objectives, and terms of this Agreement. c. Limitations on Indemnity Obligations. The indemnification obligations set forth in this Agreement shall apply only to the extent such obligations solely relate to or solely arise in connection with claims serviced by the TPA during the Term and under the scope of this Agreement.
d. Survival of Obligations. The obligations of the parties set forth in this Section shall survive termination of this Agreement.

15. AUDITS
The TPA’S files shall be made available for audits at any time upon reasonable notice from the MEMBER or the AUTHORITY. Reasonable notice shall be defined as thirty (30) days or as otherwise agreed to by the parties. If special retrieval or shipment of the requested files is necessary, the MEMBER or the AUTHORITY (whichever party initiates the audit) shall reimburse the TPA at cost. The TPA reserves the right to reject an auditor proposed by the MEMBER or the AUTHORITY if the proposed auditor may gain an unfair competitive advantage over the TPA by conducting such an audit.

16. MISCELLANEOUS
a. Governing Law. This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of California.
b. Amendments, etc. Neither this Agreement nor any of the terms hereof may be amended, changed, waived, discharged, or terminated except by an instrument in writing signed by the three parties hereto.

c. No Waiver. No delay on the part of any party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof; nor shall any waiver on the part of any party hereto of any such right, power or privilege, or any single or partial exercise of any such right, power or privilege, preclude any further exercise thereof or the exercise of any other right, power, or privilege.
d. Severability. If any part of this Agreement is contrary to, prohibited by or deemed invalid under, any applicable law of any jurisdiction, then such provision shall, as to such jurisdiction, be inapplicable and deemed omitted to the extent so contrary, prohibited, or invalid, without invalidating the remainder hereof or affecting the validity or enforceability of such provision in any other jurisdiction. e. Independent TPA. At all times during the term of this Agreement, the TPA shall be deemed to be an independent TPA to the MEMBER and to the AUTHORITY acting in the capacity as the MEMBER’S and the AUTHORITY’S agent subject to the limited authority granted herein. Nothing contained in this Agreement shall be deemed to create the relationship of employer and employee, partners, or joint ventures between the MEMBER and the TPA or the AUTHORITY. The TPA shall not act as an insurer, nor shall it be ultimately financially responsible for payment or satisfaction of Claims or causes of action against the MEMBER or the AUTHORITY.
f. Current Law & Regulation. This Agreement is entered into with the understanding that existing Federal, State, or other jurisdictional regulations will remain in effect for the duration of this Agreement. The MEMBER agrees that should administrative or other costs of service provided hereunder be substantially increased as a result of modifications in existing law, enactment of new legislation, or promulgation of new administrative guidelines, the TPA service fees may be renegotiated during the Agreement Term. If revised fee agreements cannot be reached, the TPA may terminate this Agreement, at its option, after ninety (90) days written notice to both the MEMBER and the AUTHORITY. g. Counterparts. This Agreement may be executed simultaneously in three counterparts, each of which when so executed and delivered shall be deemed an original, but all of which together shall constitute one and the same instrument, and all signatures need not appear on any one counterpart. A facsimile, copy or other reproduction of this Agreement may be executed by any party and delivered by such party by facsimile or other electronic transmission including e-mail, and such execution and delivery shall be considered valid, binding, and effective for all purposes.

17. ROLE OF AUTHORITY
The AUTHORITY is party to this Agreement for the purpose of providing oversight of the contractual relationship between the MEMBER and the TPA for the benefit of the MEMBER. The role of the AUTHORITY is to ensure that the MEMBER receives excellent customer service from the TPA and to ensure that the TPA remains in compliance with industry best practices for liability claims administration in accordance with Performance

Standards described herein. It is also the role of the AUTORITY to negotiate fair and reasonable pricing for services rendered under this Agreement on behalf of the MEMBER, which means the fee schedule attached hereto as EXHIBIT B is established in consultation with both the MEMBER and the TPA but is ultimately determined by the AUTHORITY at its sole discretion.

The AUTHORITY is also responsible for exercising any delegated settlement authority conferred to it by the MEMBER pursuant to the Payment Guidelines attached hereto as EXHIBIT A. The AUTHORITY is also responsible for ensuring that the administration of the self-insurance program remains in compliance with the terms and conditions of the AUTHORITY’S Memorandum of Coverage for the Excess Liability Program in which the MEMBER participates.

18. NO UNDUE INFLUENCE
The TPA declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of the MEMBER or the AUTHORITY in connection with the award, terms, or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the MEMBER or the AUTHORITY will receive compensation, directly or indirectly, from the TPA, or from any officer, employee, or agent of the TPA, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the MEMBER or the AUTHORITY to any and all remedies at law or in equity.

19. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES
No officer, or employee of the MEMBER or the AUTHORITY, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Agreement during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the work performed under this Agreement.

20. ASSIGNMENT
The TPA shall not assign, transfer, or pledge any portion of its interest in this Agreement without the written consent of both the MEMBER and the AUTHORITY.

21. NOTICES
Any notices which any of the three parties may desire to give to one or more of the other parties under this Agreement must be in writing and addressed to the mailing address of the party as set forth below or as may be later designated by notice:

To MEMBER: City of Fountain Valley
10200 Slater Avenue

Fountain Valley, CA 92708
Attn: City Clerk/Administrator
To TPA: Carl Warren & Company
P. O. Box 25180, Santa Ana, CA 92799
Attn: Corporate Secretary
To AUTHORITY: California Joint Powers Insurance Authority 8081 Moody St, La Palma, CA 90623
Attn: Custodian of Records

22. INSURANCE REQUIREMENTS
Prior to the beginning of and throughout the duration of this Agreement, the TPA will maintain insurance in conformance with the requirements set forth below. The TPA will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, the TPA agrees to amend, supplement, or endorse the existing coverage to do so. The TPA acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to the MEMBER and the AUTHORITY in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to the MEMBER and the AUTHORITY.

The TPA shall provide the following types and amounts of insurance:

Commercial General Liability Insurance using Insurance Services Office “Commercial General Liability” policy form CG 00 01 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross-liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $2,000,000 per occurrence.

Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If the TPA owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above.

Workers Compensation on a state-approved policy form providing statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident or disease.

Excess or Umbrella Liability Insurance (Over Primary) shall provide coverage of $4,000,000 per occurrence and in the aggregate. Any such coverage provided under an umbrella liability policy shall include a drop-down provision providing primary coverage above a maximum $25,000 self-insured retention for liability not covered by primary but covered by the umbrella.

Coverage shall be provided on a “pay on behalf” basis, with defense costs payable in addition to policy limits. Policy shall contain a provision obligating insurer at the time insured’s liability is determined, not requiring actual payment by the insured first. There shall be no crossliability exclusion precluding coverage for claims or suits by one insured against another.

Coverage shall be applicable to the MEMBER and the AUTHORITY for injury to employees of

the TPA, or others involved in work performed under this Agreement. The scope of coverage provided is subject to approval of the MEMBER and the AUTHORITY following receipt of proof of insurance as required herein.

Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors, or omissions of the TPA and “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement and shall have a limit of no less than $5,000,000 per occurrence and in the aggregate.

Cyber Liability insurance with at least a $3,000,000 policy limit per occurrence and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this Agreement.

Insurance procured pursuant to these requirements shall be written by insurers that are authorized carriers in the state of California and with an A.M. Best rating of A- or better and a minimum financial size VII.

General conditions pertaining to provision of insurance coverage by the TPA. The TPA, MEMBER, and AUTHORITY agree to the following with respect to insurance provided by the TPA:
a. The TPA agrees to have its insurer endorse the third-party general liability coverage required herein to include as additional insured, the MEMBER and the AUTHORITY, their officials, employees, and agents. The TPA also agrees to require all contractors, and subcontractors to do likewise.
b. No liability insurance coverage provided to comply with this Agreement shall prohibit the TPA, or TPA’s employees, or agents, from waiving the right of subrogation prior to a loss. The TPA agrees to waive subrogation rights against the MEMBER and the AUTHORITY regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise.
c. All insurance coverage and limits provided by the TPA and available or applicable to this Agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the MEMBER or the AUTHORITY or their operations limits the application of such insurance coverage. d. None of the coverage required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to and approved by both the MEMBER and the AUTHORITY in writing. e. No liability policy shall contain any provision or definition that would serve to eliminate socalled “third-party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.

f. All coverage types and limits required are subject to approval, modification and additional requirements by the MEMBER and the AUTHORITY, as the need arises. The TPA shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect protection for either the MEMBER or the AUTHORITY without prior written consent.
g. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverage required and an additional insured endorsement to the TPA’s general liability policy, shall be delivered to the MEMBER and to the AUTHORITY at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, the MEMBER and the AUTHORITY has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by the MEMBER or the AUTHORITY shall be charged to and promptly paid by the TPA or deducted from sums due to the TPA.
h. Certificate(s) are to reflect that the insurer will provide a 30-day notice to the MEMBER and to the AUTHORITY of any cancellation of coverage. The TPA agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will “endeavor” (as opposed to being required) to comply with the requirements of the certificate. i. It is acknowledged by the parties of this Agreement that all insurance coverage required to be provided by the TPA or any subcontractor, is intended to apply first and on a primary, noncontributing basis in relation to any other insurance or self-insurance available to either the MEMBER or to the AUTHORITY.
j. The TPA agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by the TPA, provide the same minimum insurance coverage required of the TPA. The TPA agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. The TPA agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to the MEMBER and the AUTHORITY for review.
k. The TPA agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this Agreement to self-insure its obligations to the MEMBER or to the AUTHORITY. If the TPA’s existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the MEMBER and to the AUTHORITY. Deductibles or self-insured retentions shall not exceed the first $75,000 of any loss.

l. The MEMBER and the AUTHORITY reserve the right at any time during the term of the contract to change the amounts and types of insurance required by giving the TPA ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the TPA, the MEMBER and the AUTHORITY will negotiate additional compensation proportional to the increased benefit to the MEMBER and the AUTHORITY. m. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. n. The TPA acknowledges and agrees that any actual or alleged failure on the part of the MEMBER or the AUTHORITY to inform the TPA of non-compliance with any insurance requirement in no way imposes any additional obligations on the MEMBER or the AUTHORITY nor does it waive any rights hereunder in this or any other regard. o. The TPA will renew the required coverage annually as long as the MEMBER and the AUTHORITY, or their employees or agents face an exposure from operations of any type pursuant to this Agreement. This obligation applies whether or not the Agreement is canceled or terminated for any reason. Termination of this obligation is not effective until the MEMBER and the AUTHORITY execute written statements to that effect. p. The TPA shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from the TPA’s insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to the MEMBER and the AUTHORITY within five days of the expiration of the coverage. q. The provisions of any workers’ compensation or similar act will not limit the obligations of the TPA under this Agreement. The TPA expressly agrees not to use any statutory immunity defenses under such laws with respect to the MEMBER or the AUTHORITY, their employees, officials, and agents.
r. Requirements of specific coverage features, or limits contained in this section are not intended as limitations on coverage, limits, or other requirements or as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be limiting or all-inclusive. s. The TPA agrees to be responsible for ensuring that no contract used by any party involved in any way with this Agreement reserves the right to charge the MEMBER, AUTHORITY, or TPA for the cost of additional insurance coverage required by this Agreement. Any such provisions are to be deleted with reference to the MEMBER and the AUTHORITY. It is not the intent of the MEMBER or the AUTHORITY to reimburse any third-party for the cost of

complying with these requirements. There shall be no recourse against the MEMBER or the AUTHORITY for payment of premiums or other amounts with respect thereto. t. The TPA agrees to provide immediate notice to both the MEMBER and the AUTHORITY of any claim or loss against the TPA arising out of the work performed under this Agreement.

The MEMBER and the AUTHORITY assume no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve either the MEMBER or the AUTHORITY.

23. PERFORMANCE STANDARDS
The AUTHORITY in its capacity under the Agreement to provide oversight, supports and advocates industry best practices for liability claims administration. The following standards detail performance expectations of the TPA in providing excellent customer service to the MEMBER and to the AUTHORITY.

Communication For reporting claims and significant incidents, the TPA shall maintain:
 An 800 telephone number
 A facsimile telephone number
 A designated email address
 A 24-hour emergency telephone number
In response to MEMBER and AUTHORITY communications, the TPA shall:
 Return telephone calls within one business day
 Respond to written correspondence within two business days  Respond to emails within one business day
 Respond to calls to the 24-hour emergency number within 30 minutes
The TPA shall have a dedicated Manager responsible for all day-to-day oversight of the Adjusters and other service team personnel. The Account Manager will be responsible for:

Ensuring adherence to the performance standards set forth herein.

Performing Monthly Internal Auditing
Manage Claim Supervisors

Account
Management
Coordinating Training for account personnel
Oversight of the resolution of client service issues and complaints Management of all litigated cases with indemnity reserve $100K and above
The TPA shall also have an Executive Level Management employee assigned to AUTHORITY-affiliated accounts on a part-time basis. This person shall be available to AUTHORITY staff to discuss higher level goals for the account such as contract renewals, compensation, major staff revisions and other large-scale projects. This individual will also be responsible for overseeing the performance of the Account Manager.

Claim File
Management
The TPA shall create and reserve a claim file within three working days of first report. Claims shall be assigned a severity index code, regardless of liability, as follows:
 Death
 Brain damage
 Substantial burns
 Substantial disfigurement
 Amputation
 Blindness
 Comatose
 Spinal cord injuries involving any degree of paralysis  Inverse condemnation
 Libel or Slander involving litigation
 Class action lawsuit
 Civil Rights Actions
 Employment Practices Liability
 Dislocation Fractures
The TPA shall maintain a diary system to ensure case review within the first 30 days of file creation, and every 90 days thereafter.

The Account Manager shall have access to and monitor the Adjusters’ diary via an electronic overdue diary report, received weekly Appropriate action shall be taken by the Account Manager to bring any offending Adjusters current.

Claim files shall include file notes; Adjuster Reports; investigation documentation in support of recommended action. Litigation Management Plans on all litigated matters, all correspondence, claim code changes, defense counsel status reports, the TPA supervisorial

direction, and file closing reports or explanatory closing notes. All written correspondence shall be uploaded to “The Cloud”, an electronic document retention database, maintained by a third-party vendor. File notes narrative shall be concise and understandable.

Narrative shall reflect the claim status with a synopsis that includes but not limited to:
 Loss description
 Liability
 Damages
 Reserves
 Payments
 Potential recoveries
 Overlap with other Authority programs
Supervision All claims shall be assigned to a TPA supervisor with the following responsibilities:
 Review files and provide direction to Adjusters
 Analyze key issues and recommend resources
 Maintain diaries to monitor file progress
 Recommend and approve all payments
 Reclassify claims that change in exposure
 Document TPA supervisor activities
 Manage caseload of up to 100 litigated files (suffixes)  Ensure proper coding of Adjuster files and their own
 Ensure proper reporting of qualifying claims to excess insurance carriers
 Ensure that reserves on all claims under their supervision maintain an indemnity reserve that properly reflects the exposure and document that analysis.
 Ensure that expense reserves mirror the amount of the approved Case Budget from Defense Counsel.

Investigation The TPA shall investigate all claims for liability and damages using effective case management with cost containment measures.  Attempt voice contact with claimant(s) within one working day of receipt of the first report. Make face contact when warranted. If there is no response, follow-up with written or electronic contact immediately.
 Make voice, written, or electronic contact with claimant’s designated representative or attorney within one working day of receipt of first report of incident. Make face contact if warranted.

 Make voice, written, or electronic contact with member within one working day of receipt of first report of incident. Make face contact if warranted.
 When warranted by damages and liability, take statements, and collect documentation promptly.
 When justified, inspect alleged property damage within five working days of receipt of first report of incident from member Assess Liability The TPA shall investigate and identify the legal basis on which the claimant has a cause of action, as follows:
 Determine the legal elements the claimant must prove to recover.  Identify the potential defenses for each liability theory.  Determine if contribution or indemnification from other tort feasors applies.
 Assess the contractual liability of involved parties and determine if indemnity provisions in a contract are valid and enforceable.  Explore applicable contracts, such as construction contracts and encroachment permits.
 Where applicable, tender the defense and indemnity to the appropriate party, and follow up on the request a minimum of every 30 days.

The TPA shall gather information to resolve or defend liability issues, as follows:
 Promptly interview the MEMBER, claimant, and independent fact witnesses. Obtain statements to support facts relevant to the claimant’s theories of liability or the member's defenses. Investigate facts to determine liability.
 Preserve evidence or testimony through statements, photographs, video, diagrams, surveys etc. Conduct site inspections. Obtain police, weather, or other reports to clarify the facts. Assist in determining or mitigating the exposure.
 Identify, notice, and pursue potential tort feasors resulting from the investigation.
 If necessary, retain expert opinion to mitigate liability or enhance defenses. The TPA must weigh the cost of the expert with the potential impact on indemnity payout.

Causation and
Damages
The TPA shall determine the extent of injury and damages early in the case, as follows:
 Obtain medical authorizations from the claimant or the claimant's attorney and contact vendors and health care providers for information.

 Determine legally allowable damages.
 Review medical documentation to determine the extent of disability, cause of injury, and whether lost work time was medically substantiated. Extensive medical information may not be needed if the first-call case settlement is nominal.
 Ascertain if the diagnosis is consistent with the trauma such as a slight impact in auto bodily injury cases. Develop the likely prognosis for each injury.
 If a health care provider re-priced medical bills in delivering claimant benefits, use the re-priced value in the claim evaluation.  Determine the level of documentation appropriate to the injury.

Obtain medical provider notes and claimant medical history, when warranted. Obtain wage verification and income tax records, when warranted.
 Develop the scope and proximate cause of property damage.  Determine the fair market value (not replacement cost) to assess property damage. This may include a vehicle appraisal or estimates on small losses. Obtain expert opinion for unusual or complex damages.
 Review all auto claim charges, such as storage and rental.

The TPA shall deduct for unrelated, prior, or subsequent injury or damage, as follows:
 Research alternate causes for the injury or damage.
 Use the CIB system to obtain prior and subsequent loss information and identify potential tort feasors and carriers.
 Index bodily injury claims. Re-index CIB on files open longer than six months.
 Evaluate diagnostic and curative charges.
 Use independent medical examinations and medical record reviews to mitigate damages.
 Consider depreciation, salvage, betterment, and pre-existing damage to determine the fair market value of property damage.

Reserves Reserves shall reflect the best estimate of a claim's ultimate value, based on jurisdictional factors that influence the outcome. The TPA shall develop an accurate reserve by investigating factors affecting the value including:
 Liability
 Damage related issues
 Nature and extent of injury
 Permanency
 Anticipated medical treatment and cost

 Claimant’s occupation and age
 Anticipated length of disability
 Lost earnings
 Property damage
 Anticipated defense costs
The TPA shall establish an initial reserve upon receipt of the claim, and maintain adequate reserves as follows:
 Adjuster will review the reserve within 72 hours and adjust as necessary.
 Supervisor shall review the reserves within 30 days of file creation to determine the need for subsequent reserves, and every 90 days thereafter.
 Adjust the reserves when new information changes the claim's value.  Document file notes when setting reserves and also when changing reserve. Notify the AUTHORITY’S Liability Program Manager within two business days when the total incurred value exceeds 50% of the Member Retained Limit.

Evaluation and
Settlement
The TPA shall evaluate and pursue settlement opportunities and utilize structured settlements and litigation alternatives when possible. The TPA shall assess coverage, liability, causation, and damages to determine the overall value. The TPA settlement authority levels are stipulated in EXHIBIT A attached hereto.

The TPA shall document in the file notes that settlement authority was obtained before negotiating settlements. The TPA shall obtain written authority from the AUTHORITY’S Liability Program Manager should the settlement amount exceed 50% of the MEMBER’S self-insured retention.

The TPA shall report all CCP 998 Offers to Compromise made by plaintiffs exceeding the settlement authority to the AUTHORITY’S Liability Program Manager within two business days.

The TPA will conclude settlements by adhering to the following:
 Request settlement checks within three days of receiving a signed release. In the case of litigated cases, a signed Request for Dismissal will also be obtained.
 Mail settlement checks to the claimant or plaintiff’s attorney directly within ten days of receipt of required releases.
 Close claim files within 30 days of settlement check being mailed or defense counsel’s final legal billing having been provided.

Litigation
Management
When the TPA receives a lawsuit, a pre-litigation review form shall be completed by the Supervisor and reviewed by the Client Relation Manager within five working days of receipt. A completed Litigation Management Plan will supplant the need for a Pre-Litigation Review form if completed within 5 days of receipt of a lawsuit.

If a settlement opportunity exists upon receipt of a lawsuit, the TPA will obtain an extension and begin efforts to settle. If the matter is nonjurisdictional, the TPA will obtain a Declaration of Non-Involvement from the MEMBER and present to the plaintiff attorney with a CC §1038 notice in an effort to dismiss the MEMBER from the litigation before incurring defense costs.

The TPA will create a litigation management plan for cases with no immediate settlement opportunities. The TPA shall recommend defense counsel, based on expertise, and expected performance. Approval for counsel will be given by the AUTHORITY’S Liability Program Manager in consultation with the MEMBER.

Supervisor will manage the defense counsel and monitor the case during litigation:
 Prepare a letter of AUTHORITY’S direction to defense counsel within four working days of selection, outlining the case work and personnel assignment, providing brief facts and recommendations for case handling, with a copy to the MEMBER.
 Develop and document strategies with the defense counsel in Litigation Management Reports and file notes.
 Review and authorize defense attorney requests for discovery work and other activity.
 Provide a Litigation Management Plan to Liability Program Manager and member risk management contact person within 90 days of case assignment and update every 90 days thereafter.
 Maintain an Internet-accessible activities calendar with trial dates, mediations, and alternative dispute resolution hearings.  Provide a specific notice with strategy and recommendations 90 days before trial and 45 days before an ADR setting.
 Receive a case budget from defense counsel within 30 days of assignment.
 Adjust reserve to match the budget. Monitor the budget and ensure that defense counsel is not exceeding the budget.
 Withhold payments for legal billings exceeding the case budget. THE TPA will not make payments until counsel submits an amended case budget and justification for excess charges.

 The AUTHORITY’S Liability Program Manager must approve all Case Budgets exceeding $185,000 (for legal and expense only), for the Primary Liability Program. For the Excess Liability Program, the AUTHORITY’s Liability Program Manager must approve all Case Budgets exceeding the MEMBER’s self-insured retention.
 The TPA will review defense counsel billings for improper charges including multiple attorneys performing the same task, attending the same meetings, excessive charges for tasks, improper expenses, or other charges The TPA deems inappropriate. The TPA will document billing adjustments with correspondence to defense counsel, and a copy to the AUTHORITY’S Liability Program Manager.

Defense Counsel
Assignments
The TPA will ensure that defense counsel performs only work that is necessary and appropriate for legal counsel. Defense counsel shall:
 Provide a written opinion within 30 days of receipt of the case that includes liability evaluation, exposure, verdict potential, settlement value and settlement versus defense strategy.  Seek opportunities for settlement negotiations with costeffective resolutions.  Review and submit itemized legal bills for payment within 90 days.
 Conduct in-person meetings with the TPA every six months to review outstanding files.

Subrogation The TPA shall identify and report subrogation opportunities to the AUTHORITY’S Liability Program Manager. The AUTHORITY’S Liability Program Manager will then assign the subrogation matter and discuss payment terms.

Reporting The TPA shall report NEW severity indexed claims to the AUTHORITY on the first of each month in Excel format. The AUTHORITY will then be able to review the claim documentation and reports on “The Cloud”, an electronic document retention database, maintained by a third-party vendor, if it so desires. The TPA will report severity claims reserved in excess of 50% of the MEMBER’S self-insured retention to the Executive Committee of the AUTHORITY every six months using the adopted Excel format and will report Significant Incidents as determined by the Account Manager to the Executive Committee monthly for inclusion on the agenda to the Executive Committee.

Supervisor shall submit a Litigation Management Plan to the AUTHORITY’S Liability Program Manager with a copy to the MEMBER’S designated risk management contact within 90 days of defense counsel assignment. Litigation events will dictate subsequent reporting but at a

minimum of every 90 days unless waived by written approval from the AUTHORITY’S Liability Program Manager. Certain other identified files may be exempted from this requirement by written approval of the Liability Program Manager.

The TPA shall notify excess carriers of potential excess exposures in compliance with policy documents governing coverage. Thereafter the excess carriers will be kept advised as to the status of those claims or cases with copies of claim and/or litigation reports.

The TPA will report all Medicare eligible claimants to CMS as is required by MMSEA guidelines.

As part of claim reporting, the TPA Adjusters will make Loss Prevention Recommendations where appropriate.

The TPA shall maintain online access to claims information via “The Cloud”, an electronic document retention database maintained by a third-party vendor.

The TPA shall alert the AUTHORITY when all litigated cases are resolved, in order that the AUTHORITY may transmit an electronic “Lessons Learned” report to defense counsel for completion. This notification shall be when the case is resolved by way of settlement, dismissal, motion, or trial. The TPA shall not wait until all other file handling functions are complete to transmit the above noted email.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their duly authorized representatives as of the day and year first written above.

MEMBER
By ________________________________ Title _______________________________ Entity Name _________________________________________ Date _____________ TPA

By ________________________________ Title _______________________________ Entity Name _________________________________________ Date _____________

AUTHORITY
By ________________________________ Title _______________________________ Entity Name _________________________________________ Date _____________

EXHIBIT A

PAYMENT GUIDELINES
These Payment Guidelines are entered into between (1) CITY OF FOUNTAIN VALLEY (the “MEMBER)," (2) CARL WARREN & COMPANY (the "TPA"), and (3) CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (the “AUTHORITY”), pursuant to that certain Third-Party Claims Administration Contract (the “Agreement”), dated July 1, 2023, between the three parties, and is incorporated in, and subject to the Agreement.

This delegation of settlement authority within the Member Retained Limit may be withdrawn or revised at the sole discretion of the MEMBER. These Payment Guidelines shall become binding on the MEMBER, the TPA, and the AUTHORITY on the date that they have been executed by each such party as set forth below.

DELEGATION OF SETTLEMENT AUTHORITY WITHIN THE MEMBER RETAINED LIMIT:

TO CARL WARREN & COMPANY $ ______
TO CALIFORNIA JOINT POWERS INSURANCE AUTHORITY $ 0

TOTAL SETTLEMENT AUTHORITY DELEGATED$ ______
OTHER PAYMENT INSTRUCTIONS AND PROCEDURES STIPULATED BY THE MEMBER:
<<< Please type any special instructions here. Example: Prior to any settlement payment being approved and extended to any claimant, TPA or Authority shall consult with the MEMBER regarding such proposed settlement. >>>
Note: the $20,000 delegation of settlement authority to Carl Warren stated above is merely a recommendation from the Authority. The Member may choose any amount that it deems appropriate.

EXHIBIT B

FEE SCHEDULE
This Fee Schedule is agreed to by (1) CITY OF FOUNTAIN VALLEY (the “MEMBER)," (2) CARL WARREN & COMPANY (the "TPA"), and (3) CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (the “AUTHORITY”), pursuant to that certain Third-Party Claims Administration Contract (the “Agreement”), dated July 1, 2023, between the three parties, and is incorporated in, and subject to the Agreement.

The annual fee is stated below. The fee was calculated based on the City’s historical claim volume and its mix of various claim types. Simple property damage claims were weighed less than more complex claims such as employment practice liability claims and litigated claims which require more time and expertise to administer. The annual fee is based on the assumption that the City’s claim volume will be similar to its historical claim volume during the contract period.

In addition to the annual fee, pass-through expenses may be incurred as described in section 8 (Pricing) of the Agreement. Additional fees may also be incurred if the MEMBER requests other services beyond the scope of those described in the Agreement.

In the event that the actual claim volume, for any given year, varies from the projected claim volume as stated below by 20% or more, then any of the three parties may request a fee review

which could result in additional charges to the MEMBER if there is higher-than-expected claim volume, or refunds to the MEMBER if there is lower-than-expected claim volume. This fee review provision requires mutual agreement by all three parties prior to implementation.

Claim volume is defined as the total number of claims per year filed against the MEMBER based on the date they are reported to the TPA. Claim volume includes each individual claimant, regardless of whether or not some claimants are grouped together under a single occurrence for coverage purposes.

Projected Annual Claim Volume: 19
Annual Fee:
$ 29,000 2023-24 Due 7/15/2023
$ 29,875 2024-25 Due 7/15/2024
$ 30,775 2025-26 Due 7/15/2025

2023 ANNUAL BOARD OF DIRECTORS MEETING

VOTING DELEGATE/ALTERNATE FORM
On an annual basis, the California JPIA asks members to update their information in order that we may better serve you. If you have had a reorganization, please forward us your Notice of Reorganization with your current governing body and your list of Appointments for the California JPIA Director and Alternate(s), along with this form. In accordance with the Authority’s Bylaws, your governing body must designate one voting delegate and at least one alternate. You may designate additional alternates. The voting delegate must be a member of the governing body. Alternate(s) may be from the governing body or from staff.

Please note: In order to vote at the Annual Board of Directors Meeting, voting delegates and alternates must be designated by your governing body. Please attach either your appointment list or minute action as proof of designation. As an alternative, your agency may sign this form, affirming that the designation reflects the action taken by the governing body.

1. VOTING DELEGATE - PRIMARY
Name:

Title:

2. VOTING DELEGATE - ALTERNATE 3. VOTING DELEGATE - ALTERNATE Name: Name:

Title: Title:

If you have more than two alternates, please attach a separate sheet.

PLEASE ATTACH APPOINTMENT LIST DESIGNATING VOTING DELEGATE AND ALTERNATES.

OR
ATTEST: I affirm that the information provided reflects action by the governing body to designate the voting delegate and alternate(s).

Name: Title: ______________________________
Email: ___ Phone: ________________________
Signature: Date: ______________________________
Please complete and return to:

By Mail: By Email:

California JPIA E-mail: [email protected]
ATTN: Veronica Ruiz
8081 Moody Street
La Palma, CA 90623
If you have questions or need assistance with the Board of Directors Certification or updating your governing body information, please contact Agency Clerk Veronica Ruiz at (562) 467-8736 or [email protected]. 8081 Moody Street, La Palma, CA 90623 | www.cjpia.org | (562) 467-8700 AGENCY:

Bylaws Page 1 of 14 Adopted July 16, 2008
BYLAWS

CALIFORNIA JOINT POWERS INSURANCE

AUTHORITY
AMENDED JULY 17, 2019

ii
BYLAWS

TABLE OF CONTENTS
ARTICLE I – OFFICES .............................................................................................................. 1 Section 1. Principal Executive Office. ________________________________________________ 1 Section 2. Other Offices. __________________________________________________________ 1 ARTICLE II - BOARD OF DIRECTORS ................................................................................. 1 Section 1. Composition and Selection. _______________________________________________ 1 Section 2. Vacancies. _____________________________________________________________ 2 Section 3. Annual Meeting. ________________________________________________________ 2 Section 4. Special Meetings. _______________________________________________________ 3 Section 5. Place of Meetings. _______________________________________________________ 3 Section 6. Quorum. ______________________________________________________________ 4 Section 7. Adjourned Meetings. ____________________________________________________ 4 Section 8. Voting. _______________________________________________________________ 4 Section 9. Inspectors of Election. ___________________________________________________ 5 ARTICLE III - EXECUTIVE COMMITTEE ........................................................................... 6 Section 1. Number of Members. ____________________________________________________ 6 Section 2. Composition, Selection and Term of Office. __________________________________ 6 Section 3. Vacancies. _____________________________________________________________ 7 Section 4. Resignation. ___________________________________________________________ 8 Section 5. Removal of Executive Committee or its Individual Members by Board of Directors. ___ 8 Section 6. Regular Meetings. _______________________________________________________ 8 Section 7. Special Meetings. _______________________________________________________ 8 Section 8. Actions at Meetings. _____________________________________________________ 9 Section 9. Adjourned Meetings. ___________________________________________________ 10 ARTICLE IV – CLAIMS COMMITTEE ................................................................................ 10 Section 1. Composition. __________________________________________________________ 10 Section 2. Meetings._____________________________________________________________ 10 ARTICLE V - ADVISORY COMMITTEES ........................................................................... 11 Section 1. Managers Committee. ___________________________________________________ 11

iii
Section 2. Finance Officers Committee. _____________________________________________ 11 Section 3. Underwriting Committee. ________________________________________________ 12 Section 4. Other Committees ______________________________________________________ 12 Section 5. Meetings._____________________________________________________________ 12 ARTICLE VI - OFFICERS AND EMPLOYEES.................................................................... 12 Section 1. Officers. _____________________________________________________________ 13 Section 2. Election and Term of Office. _____________________________________________ 13 Section 3. Other Officers and Employees. ____________________________________________ 13 Section 4. Vacancies. ____________________________________________________________ 13 Section 5. Removal and Resignation. _______________________________________________ 13 Section 6. President._____________________________________________________________ 14 Section 7. Vice President. ________________________________________________________ 14 Section 8. Secretary. ____________________________________________________________ 14 Section 9. Treasurer. ____________________________________________________________ 15 Section 10. Chief Executive Officer _________________________________________________ 15 ARTICLE VII - MISCELLANEOUS ....................................................................................... 15 Section 1. Rules and Regulations of Joint Protection Programs. ___________________________ 15 Section 2. Annual Report. ________________________________________________________ 16 Section 3. Defense of Agents of the Authority. ________________________________________ 16 Section 4. Inspection of Authority Records. __________________________________________ 16 Section 5. Checks and Drafts. _____________________________________________________ 16 Section 6. Register of Demands. ___________________________________________________ 17 Section 7. Execution of Contracts. __________________________________________________ 17 Section 8. Rules of Procedure for Meetings. __________________________________________ 17 ARTICLE VIII - AMENDMENTS TO BYLAWS .................................................................. 18 Section 1. Power of Board of Directors. _____________________________________________ 18 Section 2. Power of Executive Committee. ___________________________________________ 18

Bylaws Page 1 of 18 Amended July 17, 2019
BYLAWS

FOR THE REGULATION, EXCEPT AS OTHERWISE PROVIDED BY

STATUTE, OR THE AGREEMENT CREATING THE AUTHORITY, OF THE

CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
ARTICLE I – OFFICES
Section 1. Principal Executive Office.

The principal executive office for the transaction of the business of the Authority is hereby fixed and located at 8081 Moody Street, La Palma, California 90623. The Executive Committee of the Authority shall have the authority to change the location of the principal executive office from time to time. Any such change shall be noted on the Bylaws by the Secretary, opposite this section, or this section may be amended to state the new location.

Section 2. Other Offices.

Other business offices may at any time be established by the Executive Committee at any place or places where the Authority is qualified to do business.

ARTICLE II - BOARD OF DIRECTORS
Section 1. Composition and Selection.

The Board of Directors shall be composed of one Director from each Member of the Authority, who shall be a member of and selected by the legislative body of that Member, as provided for in the Agreement creating the Authority. Each legislative body shall also appoint at least one alternate, who shall be an officer or employee of that Member. The alternate may attend meetings and vote in the absence of the Director. One person may be duly appointed by more than one Member as the Director representing those Members. "Absence," as the term is used in this section, includes "vacancy" as defined in Section 2 of this Article II. “Director” as the term is used in these Bylaws includes an “alternate” serving in the absence of the Director.

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If a Member's membership in the Authority is terminated for whatever reason and by whatever method, that Member shall no longer have a representative on the Board of Directors, Executive Committee, or any other Committee of the Authority.

Section 2. Vacancies.

A vacancy or vacancies on the Board of Directors shall be deemed to exist in case of death, resignation, expiration of term, removal by the Member that made the appointment, or when the Director ceases to be a member of the legislative body of the appointing Member. Vacancies in the positions of Director or alternate or alternates shall be filled in the manner provided for regular appointment of such persons in the Agreement creating the Authority and the Bylaws.

Section 3. Annual Meeting.
(a) Time Held and Business to be Transacted.

The annual meeting of the Board of Directors shall be held in July of each year or at such other time as may be designated by the Executive Committee. At such meeting the President and Vice President of the Authority and other members of the Executive Committee shall be elected as provided in Article III, reports of the affairs of the Authority shall be considered, and any other business may be transacted that is within the powers of the Board of Directors.
(b) Notice.

Written notice of each annual meeting shall be given to each Member of the Authority by mail, email, or other means of written communication, in the manner provided by the Ralph M. Brown Act, California Government Code Section 54950, et seq. Such notice shall specify:
(1) the place, the date, and the hour of such meeting;
(2) those matters that are intended to be presented for action or review by the Board of Directors;
(3) if officers and members of the Executive Committee are to be elected, the names of nominees intended at the time of the notice to be presented for election;

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(4) the general nature of any proposal to be presented for action with respect to approval of (i) a new Member, (ii) a contract or other transaction of the Authority with an interested Member, (iii) amendment of the Agreement creating the Authority, (iv) the cancellation of a Member's participation in a joint protection program, (v) voluntary termination of the Agreement creating the Authority, or (vi) a distribution of program assets upon program dissolution; and (5) such other matters, if any, as may be expressly required by statute or by the Agreement creating the Authority.

Section 4. Special Meetings.

Special meetings of the Board of Directors, for the purpose of taking any action permitted by statute and the Agreement creating the Authority, may be called at any time by the President, or by the Vice President in the absence or disability of the President, or by the Executive Committee of the Authority or by not less than ten (10) Members. Upon request in writing that a special meeting of the Board of Directors be called for any proper purpose, directed to the President, Vice President, or Secretary of the Authority, by any person or persons entitled to call a special meeting of the Board of Directors, the officer receiving such request forthwith shall cause notice to be given to the Members that a meeting will be held at a time requested by the person or persons calling the meeting, not less than fifteen (15) nor more than sixty (60) days after receipt of the request. Notice of any special meeting shall be given in compliance with the Ralph M. Brown Act, California Government Code Section 54950, et seq. Such notice shall specify the place, date and hour of such meeting, and, if applicable, the names of nominees for officers or members of the Executive Committee intended at the time of the notice to be presented for election and the nature of the business to be transacted. No business other than that specified in the notice of the special meeting may be transacted at that meeting.

Section 5. Place of Meetings.

All annual or other meetings of the Board of Directors shall be held at a place within the State of California designated by the Executive Committee by resolution.

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Section 6. Quorum.

At any meeting, the presence in person or by approved teleconference by the Director or alternate of a majority of the Members shall constitute a quorum for the transaction of business.

Section 7. Adjourned Meetings.
(a) Adjournment.

Any meeting of the Board of Directors may be adjourned from time to time by the vote of a majority of the Directors present.
(b) Notice.

When any meeting of the Board of Directors is adjourned for forty-five (45) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Except as specifically provided herein, or by the Ralph M. Brown Act, it shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement of the time and place thereof at the meeting at which such adjournment is taken.

Section 8. Voting.

Unless a record date for voting purposes is fixed by the Executive Committee, Members that are Members on the day of the meeting of the Board of Directors shall be entitled to vote at such meeting. Such vote may be by voice vote or ballot; provided, however, that all elections for officers or members of the Executive Committee must be by ballot upon demand made by a Director at any election and before the voting begins. If a quorum is present, the affirmative vote of the majority of the Members represented at the meeting shall be the act of the Board, unless the vote of a greater number is required by the Agreement creating the Authority or by statute. A meeting at which a quorum is initially present may continue to transact business notwithstanding the withdrawal of Directors, provided that any action taken is approved by a number of Directors at least equal to a majority (or greater number if required) of the number required for a quorum for such meeting. Every Member shall have one vote to be exercised by its Director. If one person has been duly appointed by more than one Member as the Director representing those

Bylaws Page 5 of 18 Amended July 17, 2019
Members, said person shall have the right to cast votes equal to the number of Members for which he or she has been appointed as Director.

Ballots shall have imprinted on them, the name of the Member on whose behalf a ballot is cast.

Ballots shall be open to inspection and public disclosure. A Director has the right to change his or her vote up to the time the vote is finally announced and thereafter only with permission of the Board of Directors prior to adjournment. No Director may change his or her vote, nor may anyone challenge the vote of any Director after the results have been announced, except by the consent of the Board of Directors, and then only prior to adjournment of the meeting at which the vote was cast. Written proxies or powers of attorney casting the vote for any Director, directing any Director to vote in a particular fashion, or acting in the place and stead of any Director, are not acceptable. The vote of each Director or his or her alternate shall not be challenged on the basis that said Director or alternate voted contrary to the express will of the legislative body of the Member for which he or she acts.

Section 9. Inspectors of Election.
(a) Appointment.

In advance of any meeting of the Board of Directors, the Executive Committee may appoint any persons, other than nominees for office, as inspectors of election to act at such meeting or any adjournment thereof. If inspectors of election are not so appointed, the President, or Vice President in his or her absence, may, and on the request of any Director or alternate, shall make such appointment at the meeting. The number of inspectors shall be either one (1) or three (3), at least one of whom shall be a member of the Board of Directors. In case any person appointed as inspector fails to appear or fails or refuses to act, the vacancy may, and on the request of any Director, shall be filled by appointment by the Executive Committee in advance of the meeting, or at the meeting by the President, or the Vice President in his or her absence. (b) Duties.

Bylaws Page 6 of 18 Amended July 17, 2019
The duties of such inspectors shall include: Determining the current number of Members, the Members represented at the meeting, and the existence of a quorum; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; counting and tabulating all votes or consents; determining when the polls shall close; determining the result; and such acts as may be proper to conduct the election or vote with fairness to all Members. (c) Procedure.

The inspectors of election shall perform their duties impartially, in good faith, to the best of their ability and as expeditiously as is practical. The decision, act or certificate of a majority of the inspectors shall be effective in all respects as the decision, act or certificate of all. Any report or certificate made by the inspectors of election is prima facie evidence of the facts stated therein.

ARTICLE III - EXECUTIVE COMMITTEE
Section 1. Number of Members.

The authorized number of members of the Executive Committee shall be nine (9), until and unless changed by amendment of this Section, duly adopted by the vote or written consent of a majority of the Board of Directors, and subject to the limitations in the Agreement creating the Authority.

Section 2. Composition, Selection and Term of Office.

The Executive Committee shall consist of the President, Vice President and seven other members elected by the Board of Directors from the members of the Board.

The terms of office of the Executive Committee members shall be for a term of two years or until he or she resigns or is removed or otherwise disqualified to serve. Members of the Executive Committee shall hold office until their successors are elected.

Bylaws Page 7 of 18 Amended July 17, 2019
The President, or in his or her absence, the Vice President, shall serve as Chairperson of the Executive Committee.

Section 3. Vacancies.
(a) Creation of Vacancies.

A vacancy or vacancies in the Executive Committee shall be deemed to exist in case of the death, resignation, expiration of term, termination of membership on the Board of Directors, removal of any Executive Committee member by the Board of Directors, declaration of unsound mind by order of court, conviction of a felony, increase in the authorized number of members by amendment of the Agreement creating the Authority, or if the Board of Directors fail, at any annual or special meeting of the Board at which any members of the Executive Committee are elected, to elect the full authorized number of Executive Committee members to be voted for at that meeting. A vacancy in the Executive Committee may further be created by removal of any member by the Executive Committee when such member has been absent from two or more regular meetings of the Executive Committee without advance excuse approved by the Executive Committee during any one year (from July 1 to June 30), and the Executive Committee determines, after reviewing the circumstances of said absences, that such member should be removed.
(b) Vacancies Filled by Executive Committee.

Vacancies in the Executive Committee, except for a vacancy created by the removal of an Executive Committee member, may be filled by appointment by a majority of the remaining members of the Executive Committee, though less than a quorum, or by a sole remaining member of the Executive Committee, and each member so appointed shall hold office until the expiration of the term of the vacated seat. (c) Vacancies Filled by Board of Directors.

The Board of Directors may elect a member of the Executive Committee at any time to fill any vacancy or vacancies or seat filled on an interim basis by the Executive

Bylaws Page 8 of 18 Amended July 17, 2019
Committee. A vacancy in the Executive Committee created by the removal of a member by the Board of Directors may be filled only by the vote of a majority of the Directors present at a duly held meeting of the Board of Directors.

Section 4. Resignation.

Any Executive Committee member may resign effective upon written notice to the President, the Vice President, the Secretary or the Board of Directors of the Authority, unless the notice specifies a later time for the effectiveness of such resignation. A vacancy created by such resignation shall be filled pursuant to Article III, Section 3.

Section 5. Removal of Executive Committee or its Individual Members by Board of Directors.

The entire Executive Committee or any of its individual members may be removed from office by a two-thirds vote of the Directors present at a duly held meeting of the Board of Directors.

Section 6. Regular Meetings.
(a) Regular Meetings.

The Executive Committee shall hold a regular monthly meeting. In the event a meeting date falls on a holiday or conflicts with another activity of the Authority or its Members, the President and Chief Executive Officer may confer, and the President will reschedule the monthly meeting to a more convenient date, giving notice to all Members. (b) Call and Notice.

No further call or notice of regular meetings need be given, except as is required to comply with the Ralph M. Brown Act, California Government Code Section 54950 et seq.

Section 7. Special Meetings.
(a) Call.

Bylaws Page 9 of 18 Amended July 17, 2019
Special meetings of the Executive Committee for any purpose or purposes may be called at any time by the President, the Vice President, the Secretary, any two members of the Executive Committee, or the Chief Executive Officer.
(b) Notice.

Notice of the time and place of special meetings shall be given in writing to the members of the Executive Committee, delivered personally, by mail, email, or other approved method of delivery to each member at least 24 hours before the time of such meeting.

Such notice shall specify the business to be transacted at the meeting and no business other than that specified in the notice shall be transacted at that meeting. Said notice shall be given in compliance with the Ralph M. Brown Act, California Government Code Section 54950 et seq.

Section 8. Actions at Meetings.

The President, or in his or her absence, the Vice President shall serve as the Chairperson of the Executive Committee. The presence of a majority of the authorized number of Executive Committee members at a meeting constitutes a quorum for the transaction of business, except as hereinafter provided. Members of the Executive Committee may participate in a meeting through use of conference telephone or similar communications equipment, so long as all members participating in such meeting can hear one another; such participation in a meeting constitutes presence in person at such meeting. Every act or decision done or made by a majority of the Executive Committee members present at a meeting duly held at which a quorum is present shall be regarded as the act of the Executive Committee, unless a greater number is required by law, by the Agreement creating the Authority, or by these Bylaws. A meeting at which a quorum is initially present may continue to transact business notwithstanding the withdrawal of members, provided that any action taken is approved by a number of members at least equal to a majority (or greater number if required) of the number required for a quorum for such meeting.

Bylaws Page 10 of 18 Amended July 17, 2019
Section 9. Adjourned Meetings.
(a) Adjournment.

A quorum of the members of the Executive Committee may adjourn any Executive Committee meeting to a stated day, hour and place; provided, however, that in the absence of a quorum, a majority of the Executive Committee members present at any meeting may adjourn from time to time to a time not later than the time fixed for the next regular meeting of the Executive Committee.
(b) Notice of Adjournment.

If a meeting is adjourned for more than 24 hours, at least 24-hours written notice of such adjournment to another time or place shall be given prior to the time of the adjourned meeting to the Executive Committee members who were not present at the time of adjournment. Otherwise, notice of the time and place of holding an adjourned meeting need not be given if the time and place are fixed at the time of adjournment, except that the provisions of the Ralph M. Brown Act, California Government Code Sections 54950 et seq., shall be complied with.

ARTICLE IV – CLAIMS COMMITTEE
Section 1. Composition.

The Claims Committee shall be composed of each member of the Executive Committee, the Managers Committee Chair, and the Finance Officers Committee Chair.

Section 2. Meetings.

The President shall appoint an Executive Committee member to serve as the Chair of the Claims Committee. The Chair, or in his or her absence the President, shall preside over the meetings.

The presence of a majority of the authorized number of Claims Committee members at a meeting constitutes a quorum for the transaction of business, except as hereinafter provided. Members of the Claims Committee may participate in a meeting through use of conference telephone or similar communications equipment, so long as all members participating in such meeting can

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hear one another; such participation in a meeting constitutes presence in person at such meeting.

Every act or decision done or made by a majority of the Claims Committee members present at a meeting duly held at which a quorum is present shall be regarded as the act of the Claims Committee, unless a greater number is required by law, by the Agreement creating the Authority, or by these Bylaws. A meeting at which a quorum is initially present may continue to transact business notwithstanding the withdrawal of members, provided that any action taken is approved by a number of members at least equal to a majority of the number required for a quorum for such meeting.

ARTICLE V - ADVISORY COMMITTEES
Section 1. Managers Committee.

Pursuant to the Agreement creating the Authority, the Managers Committee shall be composed of one representative from each Member, who shall be the City Manager, City Administrator or the Chief Executive Officer of that Member. An alternate may be designated in writing to serve in place of and may vote for that representative in his or her absence. At any meeting, the presence in person or by approved teleconference of at least seven Managers or alternates shall constitute a quorum for the transaction of business. In the absence of a quorum, a majority of the Committee members present at any meeting may adjourn from time to time to a time not later than the time fixed for the next regular meeting of the Committee.

Section 2. Finance Officers Committee.

Pursuant to the Agreement creating the Authority, the Finance Officers Committee shall be composed of one representative from each Member, who shall be the Finance Director or Chief Finance Officer of that Member. An alternate may be designated in writing to serve in place of and may vote for that representative in his or her absence. At any meeting, the presence in person or by approved teleconference of at least seven Finance Officers or alternates shall constitute a quorum for the transaction of business. In the absence of a quorum, a majority of the Committee members present at any meeting may adjourn from time to time to a time not later than the time fixed for the next regular meeting of the Committee.

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Section 3. Risk Managers Committee.

Pursuant to the Agreement creating the Authority, the Risk Managers Committee shall be composed of one representative from each Member, who shall be the Risk Manager or risk officer of that Member. An alternate may be designated in writing to serve in place of and may vote for that representative in his or her absence. At any meeting, the presence in person or by approved teleconference of at least seven Risk Managers or alternates shall constitute a quorum for the transaction of business. In the absence of a quorum, a majority of the Committee members present at any meeting may adjourn from time to time to a time not later than the time fixed for the next regular meeting of the Committee.

Section 4. Underwriting Committee.

Pursuant to the Agreement creating the Authority, the Underwriting Committee shall be composed of the Managers Committee Chair and Vice Chair, the Finance Officers Committee Chair and Vice Chair, and the Chief Executive Officer of the Authority. Three representatives shall constitute a quorum. In the absence of a quorum, a majority of the Committee members present at any meeting may adjourn.

Section 5. Other Committees
Other committees may be created by the Executive Committee for the purpose of providing specialized advice to the Executive Committee on the subject matter brought before it. The committee’s purpose, composition, quorum requirements, and meeting schedule may be defined by the Executive Committee or delegated by the Executive Committee to the advisory committee itself.

Section 6. Meetings.

Such Committees shall meet from time to time and shall elect their respective Chairpersons, Vice Chairpersons and other officers as deemed necessary by them. All meetings shall be noticed in compliance with the Ralph M. Brown Act, California Government Code Section 54950, et seq.

ARTICLE VI - OFFICERS AND EMPLOYEES

Bylaws Page 13 of 18 Amended July 17, 2019
Section 1. Officers.

The officers of the Authority shall be a President, a Vice President, a Secretary, and a Treasurer.

The Executive Committee may, in addition, provide for other officers as it deems necessary for the performance of the business of the Authority.

Section 2. Election and Term of Office.

The President and Vice President of the Authority shall be elected by the Board of Directors at its annual meeting, and each shall hold office for a term of two years or until he or she resigns or is removed or otherwise disqualified to serve, and until his or her successor is elected.

Section 3. Other Officers and Employees.

The Executive Committee shall appoint, or may empower the President to appoint, subject to ratification by the Executive Committee, all officers other than the President and Vice President.

Except as may otherwise be provided in the Agreement creating the Authority or the Bylaws, such officers shall hold office until replaced by action of the Executive Committee. The Executive Committee shall also appoint a Chief Executive Officer and Authority Attorney who shall serve at the pleasure of the Executive Committee or for such term as the Executive Committee may provide by agreement. All officers and employees shall have such authority and perform such duties as are provided in the Agreement creating the Authority, or the Bylaws or as the Executive Committee may from time to time determine. The Executive Committee may provide for the payment of compensation to officers or employees for their services to the Authority.

Section 4. Vacancies.

A vacancy in any office because of death, resignation, removal, disqualification, expiration of term, or any other cause shall be filled in the manner prescribed in the Agreement creating the Authority and the Bylaws for regular appointments to such office.

Section 5. Removal and Resignation.
(a) Removal.

Bylaws Page 14 of 18 Amended July 17, 2019
The President, Vice President or any Executive Committee member may be removed, without cause, by the Board of Directors, at any regular or special meeting thereof. An officer chosen by the Executive Committee may be removed, without cause, by the Executive Committee or by any officer upon whom such power of removal may be conferred by the Executive Committee, (subject, in each case, to the rights, if any, of an officer under any contract of employment).
(b) Resignation.

Any officer may resign at any time by giving written notice to the Executive Committee or to the President, or to the Secretary of the Authority, without prejudice, however, to the rights, if any, of the Authority under any contract to which such officer is a party.

Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 6. President.

The President shall preside at all meetings of the Board of Directors and the Executive Committee. He or she shall be a member of all of the Executive Committee standing committees and shall have the powers and duties as may be prescribed by the Board of Directors, the Agreement creating the Authority, or the Bylaws.

Section 7. Vice President.

In the absence or disability of the President, the Vice President shall perform all the duties of the President, and when so acting shall have all the powers of, and be subject to all the restrictions upon, the President. The Vice President shall have such other powers and perform such other duties as from time to time may be prescribed by the Board of Directors or the Bylaws.

Section 8. Secretary.

The Secretary shall record or cause to be recorded, and shall keep or cause to be kept, at the principal executive office or such other place as the Executive Committee may order, a permanent record of minutes of actions taken at all meetings of the Board of Directors and

Bylaws Page 15 of 18 Amended July 17, 2019
Executive Committee, whether regular or special, (and, if special, how authorized), the notice thereof given, the names of those present at the meetings, and the proceedings thereof.

The Secretary shall keep, or cause to be kept, at the principal executive office of the Authority a list of all designated Directors and alternates of each Member.

The Secretary shall give, or cause to be given, notice of all the meetings of the Board of Directors and of the Executive Committee required by the Bylaws or by law to be given, and shall have such other powers and perform such other duties as may be prescribed by the Executive Committee, the Agreement creating the Authority, or by the Bylaws.

Section 9. Treasurer.

The Treasurer shall keep and maintain, or cause to be kept and maintained, adequate and correct financial records of the Authority, including accounts of its assets, liabilities, receipts, and disbursements, and shall have such other duties as are provided for in the Agreement creating the Authority.

Section 10. Chief Executive Officer
The Chief Executive Officer shall be authorized and responsible for the overall management and administration of the Authority and its joint protection programs and shall select and appoint all employees. The Chief Executive Officer shall have such other and related duties as may be prescribed by the Executive Committee or the Bylaws.

ARTICLE VII – MISCELLANEOUS
Section 1. Rules and Regulations of Joint Protection Programs.

As soon as practicable after development of the details of a joint protection program of the Authority, the specific rules and regulations for the implementation of the program shall be adopted by the Executive Committee, which shall cause them to be set forth in written form and a copy thereof distributed to each Member. Such rules and regulations shall be included in any procedure manual prepared by the Authority for the Members.

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Section 2. Annual Report.

The Executive Committee of the Authority shall cause an annual report to be sent to the Members not later than 270 days after the close of each fiscal year. Such report shall contain a statement of net position as of the end of such fiscal year and a statement of revenues, expenses, and changes in net position for such fiscal year, and shall be accompanied by the annual audit report thereon and such other information as may be required by law.

Section 3. Defense and Indemnification of Agents of the Authority. (a) For the purpose of this Article, "agent" means any person who is or was an officer, board member, employee, or other agent of the Authority.
(b) The Authority shall provide for the defense and indemnity of any civil action or proceeding brought against any such agent of the Authority in his or her official or individual capacity or both, on account of an act or omission within the scope of his or her agency as an agent of the Authority, and to the extent of such defense as is provided for in California Government Code Section 995 et seq.

Section 4. Inspection of Authority Records.

The accounting, books and records, the list of Members' designated Directors and alternates, and minutes of proceedings of the Board of Directors and the Executive Committee and all other committees of the Authority shall be open to the inspection of any Member at any reasonable time. Such inspection by a Member may be made in person or by agent or attorney, and the right of inspection includes the right to copy and make extracts.

Section 5. Checks and Drafts.

All checks, drafts or other orders for payment of money, notes or other evidences of indebtedness, issued in the name of or payable to the Authority, shall be signed or endorsed by the President and Treasurer or by such person or persons and in such manner as, from time to time, shall be determined by the Executive Committee.

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Section 6. Register of Demands.

A register of all demands shall be submitted to the Executive Committee for payment approval and shall have attached thereto the affidavit or declaration of the Chief Executive Officer certifying as to the accuracy of the demands and the availability of funds for payment thereof.

The Executive Committee shall not hear, consider, allow or approve any bill or demand against the Authority unless the same is itemized giving names, dates, and particular services tendered, and any other pertinent details as the case may be. Demands for salaries and wages of officers and employees of the Authority may, but need not be, presented to the Executive Committee prior to payment but shall appear on the next register of demands for approval.

After approval of the register of demands by the Executive Committee, the public officer performing the function of Treasurer shall sign the warrant authorizing payment of the demands so approved. Signatures on warrants may be by facsimile.

Section 7. Execution of Contracts.

The Executive Committee may authorize any officer or officers, agent or agents, to enter into any contract or execute any instrument in the name of and on behalf of the Authority, and such authorization may be general or confined to specific instances. Unless so authorized by the Executive Committee, no officer, agent or employee shall have any power or authority to bind the Authority by any contract or engagement or to pledge its credit or to render it liable for any purpose or to any amount. The Chief Executive Officer is authorized to enter into any contract or execute any instrument in the name of, and on behalf of, the Authority for services and programs approved by the Executive Committee or Board of Directors, subject to limitations (including budget limitations) set by the Executive Committee or the Board of Directors.

Section 8. Rules of Procedure for Meetings.

All meetings of the Board of Directors, Executive Committee, and any other Committees of the Authority, shall be conducted in accordance with Robert's Rules of Order, except where such are in conflict with California law, the Agreement creating the Authority, or the Bylaws, whereupon the latter three shall govern over said Rules of Order.

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ARTICLE VIII - AMENDMENTS TO BYLAWS
Section 1. Power of Board of Directors.

New Bylaws may be adopted, or these Bylaws may be amended or repealed by the affirmative vote of a majority of the quorum at a meeting of the Board of Directors, except as otherwise provided by the Agreement creating the Authority.

Section 2. Power of Executive Committee.

Subject to the right of the Board of Directors as provided in Section 1 of this Article VIII to adopt or amend Bylaws, Bylaws other than a bylaw or amendment thereof changing the authorized number of members of the Executive Committee may be adopted or amended by the Executive Committee. Any amendment by the Executive Committee shall be on the agenda of the next meeting of the Board of Directors for ratification. An affirmative vote by a majority of the quorum shall constitute ratification of the amendment.

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Joint Powers Agreement
California Joint Powers Insurance Authority
Amended July 17, 2019

JOINT POWERS AGREEMENT

CALIFORNIA JOINT POWERS INSURANCE

AUTHORITY
AMENDED JULY 17, 2019

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TABLE OF CONTENTS
ARTICLE 1 - DEFINITIONS .................................................................................................................................... 2 ARTICLE 2 - PURPOSES.......................................................................................................................................... 3 ARTICLE 3 - PARTIES TO AGREEMENT............................................................................................................ 4 ARTICLE 4 - TERM OF AGREEMENT ................................................................................................................. 4 ARTICLE 5 - CREATION OF AUTHORITY ......................................................................................................... 4 ARTICLE 6 - POWERS OF AUTHORITY ............................................................................................................. 4 ARTICLE 7 - BOARD OF DIRECTORS ................................................................................................................. 5 ARTICLE 8 - POWERS OF THE BOARD OF DIRECTORS ............................................................................... 5 ARTICLE 9 - MEETINGS OF THE BOARD OF DIRECTORS........................................................................... 6 ARTICLE 10 - EXECUTIVE COMMITTEE .......................................................................................................... 6 ARTICLE 11 - POWERS OF THE EXECUTIVE COMMITTEE ........................................................................ 6 ARTICLE 12 - MEETINGS OF THE EXECUTIVE COMMITTEE .................................................................... 7 ARTICLE 13 - CLAIMS COMMITTEE.................................................................................................................. 8 ARTICLE 14 - OFFICERS OF THE AUTHORITY ............................................................................................... 8 ARTICLE 15 - ADVISORY COMMITTEES........................................................................................................... 9 ARTICLE 16 - COVERAGE ...................................................................................................................................... 9 ARTICLE 17 - DEVELOPMENT OF THE JOINT PROTECTION PROGRAMS............................................. 9 ARTICLE 18 - ACCOUNTS AND RECORDS ......................................................................................................10 ARTICLE 19 - RESPONSIBILITY FOR MONIES ..............................................................................................11 ARTICLE 20 - RESPONSIBILITIES OF THE AUTHORITY............................................................................11 ARTICLE 21 - RESPONSIBILITIES OF MEMBERS .........................................................................................12 ARTICLE 22 - NEW MEMBERS............................................................................................................................13 ARTICLE 23 - PROGRAM PARTICIPATION ....................................................................................................14 ARTICLE 24 - WITHDRAWAL .............................................................................................................................15 ARTICLE 25 - EFFECT OF WITHDRAWAL......................................................................................................15 ARTICLE 26 - CANCELLATION OF PROGRAM PARTICIPATION.............................................................16 ARTICLE 27 - CANCELLATION OF MEMBERSHIP .......................................................................................16 ARTICLE 28 - CANCELLATION FOR NON-PAYMENT ..................................................................................16 ARTICLE 29 - ATTORNEY FEES AND COSTS OF COLLECTION ...............................................................17 ARTICLE 30 - TERMINATION AND DISTRIBUTION .....................................................................................17 ARTICLE 31 - PROVISION FOR BYLAWS.........................................................................................................18 ARTICLE 32 - NOTICES.........................................................................................................................................18 ARTICLE 33 – PROVISION FOR MAILED BALLOTS .....................................................................................18 ARTICLE 34 - AMENDMENT................................................................................................................................19 ARTICLE 35 - PROHIBITION AGAINST ASSIGNMENT ................................................................................19 ARTICLE 36 - AGREEMENT COMPLETE.........................................................................................................19

Joint Powers Agreement Page 1 of 19 Amended July 17, 2019

JOINT POWERS AGREEMENT

CREATING THE CALIFORNIA

JOINT POWERS INSURANCE AUTHORITY

THIS AGREEMENT is made and entered into by and among the public entities organized and existing under the Constitution or laws of the State of California, hereinafter collectively referred to as “Members” and individually as “Member,” that are parties signatory to this Agreement. Said Members are sometimes referred to herein as “parties.” RECITALS:

WHEREAS, California Government Code Section 6500 et seq. provides that two or more public agencies may by agreement jointly exercise any power common to the contracting parties; and
WHEREAS, California Government Code Section 990.4 provides that a local public entity may self-insure, purchase insurance through an authorized carrier, or purchase insurance through a surplus line broker, or any combination of these; and WHEREAS, California Government Code Section 990.8 provides that two or more local public entities may, by a joint powers agreement, provide insurance for any purpose by any one or more of the methods specified in Government Code Section 990.4; and WHEREAS, each of the parties to this Agreement desires to join together with the other parties for the purpose of pooling their self-insured losses and jointly purchasing excess insurance and administrative services in connection with one or more joint protection programs for said parties; and
WHEREAS, it appears economically feasible and practical for the parties to this Agreement to do so;
NOW, THEREFORE, for and in consideration of all of the mutual benefits, covenants and agreements contained herein, the parties hereto agree as follows:

Joint Powers Agreement Page 2 of 19 Amended July 17, 2019 ARTICLE 1 - DEFINITIONS
The following definitions shall apply to the provisions of this Agreement:
(a) “Advisory Committee” shall mean the Managers Committee, Finance Officers Committee, Risk Managers Committee and any other committee created by the Board of Directors or Executive Committee for the purpose of providing specialized advice to the Board of Directors or Executive Committee on the subject matter brought before it. (b) “Alternate” shall mean that person or persons selected by the legislative body of each Member to represent the Member at the Board of Directors meeting in the absence of the Director, pursuant to Article 7 of this Agreement.
(c) “Authority” shall mean the California Joint Powers Insurance Authority created by this Agreement.
(d) “Board of Directors” or “Board” shall mean the governing body of the Authority. (e) “Chief Executive Officer” shall mean that employee of the Authority who is appointed by the Executive Committee, and is granted authority and responsibility for the management and administration of the Authority and its joint protection programs. (f) “Claims” shall mean demands made against the Authority, a Member, or Members arising out of occurrences that are within an Authority joint protection program as developed by the Executive Committee.
(g) “Contribution” shall mean an amount determined by the Executive Committee that is to be paid by the Member as its established share of funding required to cover the financial obligations of each joint protection program in which the member participates. (h) “Director” shall mean that person selected by and from the legislative body of each Member to represent the Member on the Board of Directors pursuant to Article 7 of this Agreement.
(i) “Executive Committee” shall mean the Executive Committee of the Board of Directors of the Authority.
(j) “Finance Officers Committee” shall mean the committee of the Authority composed of the Finance Directors or chief finance officers of the Members by whatever title locally designated.
(k) “Fiscal Year” shall mean that period of twelve months that is established as the fiscal year of the Authority.

Joint Powers Agreement Page 3 of 19 Amended July 17, 2019 (l) “Insurance” shall mean and include pooled self-insurance through a funded program and/or any commercial insurance, excess insurance, or reinsurance contract purchased on behalf of the Authority to protect the funds of the Authority against catastrophes or an unusual frequency of losses during a specific protection period. (m) “Managers Committee” shall mean the committee of the Authority composed of the City Managers, City Administrators, or chief executive officers of the Members by whatever title locally designated.
(n) “Risk Managers Committee” shall mean the committee of the Authority composed of the Risk Managers or risk officers of the Members by whatever title locally designated.
(o) “Secretary” shall mean the person selected by the Executive Committee from among its members to serve as Secretary of the Authority. (p) “Treasurer” shall mean the person selected by the Executive Committee to serve as Treasurer of the Authority.

ARTICLE 2 - PURPOSES
This agreement is entered into by the Members pursuant to the provisions of California Government Code Sections 990, 990.4, 990.8, and 6500 et seq. in order to provide more comprehensive and economical protection from financial loss, to reduce the amount and frequency of their losses, and to decrease the cost incurred in the handling and litigation of claims. This purpose shall be accomplished through the exercise of the powers of the Members jointly in the creation of a separate entity, the California Joint Powers Insurance Authority (the Authority), to administer joint protection programs wherein Members will pool their losses and claims, jointly purchase insurance and administrative and other services, including claims adjusting, data processing, risk management consulting, loss prevention, training, legal, and related services.

It is also the purpose of this Agreement to provide, to the extent permitted by law, for the inclusion at a subsequent date of such additional public entities organized and existing under the Constitution or laws of the State of California as may desire to become parties to this Agreement.

Joint Powers Agreement Page 4 of 19 Amended July 17, 2019 ARTICLE 3 - PARTIES TO AGREEMENT
Each party to this Agreement certifies that it intends to and does contract with all other parties who are signatories of this Agreement and, in addition, with such other parties as may later be added as parties to and signatories of this Agreement pursuant to Article 22. Each party to this Agreement also certifies that the deletion of any party from this Agreement, pursuant to Articles 24, 26, 27, or 28 shall not affect this Agreement nor such party's intent to contract as described above with the other parties to the Agreement then remaining.

ARTICLE 4 - TERM OF AGREEMENT
This Agreement became effective on June 29, 1977, and shall continue until and unless terminated as hereinafter provided.

ARTICLE 5 - CREATION OF AUTHORITY
Pursuant to Section 6500 et seq. of the California Government Code, there is hereby created a public entity separate and apart from the parties hereto, to be known as the California Joint Powers Insurance Authority. Pursuant to Government Code Section 6508.1, the debts, liabilities and obligations of the Authority shall not constitute debts, liabilities or obligations of any party to this Agreement; except with respect to public retirement system liabilities, which shall be governed by Sections 6508.1 and 6508.2.

ARTICLE 6 - POWERS OF AUTHORITY
(a) The Authority shall have the powers common to its Members and is hereby authorized to do all acts necessary for the exercise of said common powers, including, but not limited to, any or all of the following:

1. To make and enter into contracts;

2. To incur debts, liabilities or obligations;

3. To acquire, hold or dispose of property, contributions and donations of property, funds, services and other forms of assistance from persons, firms, corporations and governmental entities;

4. To sue and be sued in its own name; and

5. To exercise all powers necessary and proper to carry out the terms and provisions of this Agreement, or otherwise authorized by law.