Agenda packet — Gardena City Council, June 27, 2023 (part 2 of 4)

FUNDING ($1,000's)
Measure R* Measure M*
1,506$
200$ L 300$ L
40$ 400$ L
15$
3,740$ 90$ 4,288$ 6,658$ 890$ 5,724$ 163$ 335$ 695$ 248$ 550$ 900$ L
40$ 400$ L
L 500$ 1,300$
1,600
200$
40$
590$ 40$ 400$ 900$ 500$ 1,300$ -$ 1,600$ 200$ -$ 550$ 900$ L
Storm Drain Debris Screen FY 2024-2025
Vermont Ave St Improvements - Rosecrans
to 135th St
Pedestrian Safety FY 2023-2024
TOTAL Fiscal Year 2023 - 2024
FISCAL YEAR 2024 - 2025
Ped Safety Improvement FY 2024-2025
(Various)
FISCAL YEAR 2025 - 2026
TOTAL Fiscal Year 2024 - 2025
Pavement Mangaement Program Update
Normandie Ave (RBB to El Segundo),
Rosecrans Ave (Normandie to Purche PCC
Repair), Vermont Ave (132nd to 135th) &
Vermont (Roscecrans, Marine and RBB,
161st PCC Repair) and Western Ave (RBB to
139th) Street Improvements
County Regional TSSP on MBB
Local Street Improvement FY 2024-2025
(Various)
Local Street Improvements FY 2023-2024
(Various)
132nd St (Wilton to Water Chanel), 135th
(Crenshaw to Budlong), 139th (Ardath to Van
Ness), 145th (Gramercy to Western), 146th
(Western to Denker), 157th ( Van Ness to
Gramercy), 164th (Normandie to New
Hampshire) and 166th St (Western to
Normandie) and Marine Ave (Western to
Vermont) Street Improvements
Sewer Rehabilitation FY 2024-2025
103
CAPITAL IMPROVEMENT PROJECT (CIP) STREET REHABILITATION TEN (10) YEAR PLAN - FISCAL YEARS ENDING 2022-2032 Prop C SB 821 Gas Tax SB1 Federal Sewer Measure W Lighting Dist.

FUNDING ($1,000's)
Measure R* Measure M*
40$ 400$ L
L 500$ 1,300$
1,600
200$
550$ 40$ 400$ 900$ 500$ 1,300$ -$ 1,600$ 200$ -$ 550$ 900$ L
40$ 400$ L
L 500$ 1,300$
1,000$
600$ 200$
550$ 40$ 400$ 900$ 500$ 1,300$ -$ 1,600$ 200$ -$ 550$ 900$ L
40$ 400$ L
L 500$ 1,300$
1,000$
600$ 200$
45$
550$ 40$ 400$ 900$ 500$ 1,300$ -$ 1,600$ 200$ -$ 550$ 900$ L
Pavement Mangaement Program Update
Arterial and Collector Streeet Improvements
Storm Drain Debris Screen FY 2025-2026
Sewer Rehabilitation FY 2025-2026
Local Street Improvement FY 2025-2026
(Various)
FISCAL YEAR 2027 - 2028
TOTAL Fiscal Year 2026 - 2027
Sewer Rehabilitation FY 2027-2028
Ped Safety Improvement FY 2025-2026
(Various)
TOTAL Fiscal Year 2027 - 2028
FISCAL YEAR 2028 - 2029
Arterial and Collector Streeet Improvements
Storm Drain Rehabilitation FY 2027-2028
FISCAL YEAR 2026 - 2027
TOTAL Fiscal Year 2025 - 2026
Ped Safety Improvement FY 2026-2027
(Various)
Local Street Improvement FY 2026-2027
(Various)
Sewer Rehabilitation FY 2026-2027
Storm Drain Rehabilitation FY 2026-2027
Ped Safety Improvement FY 2027-2028
(Various)
Arterial and Collector Streeet Improvements
Local Street Improvement FY 2027-2028
(Various)
104
CAPITAL IMPROVEMENT PROJECT (CIP) STREET REHABILITATION TEN (10) YEAR PLAN - FISCAL YEARS ENDING 2022-2032 Prop C SB 821 Gas Tax SB1 Federal Sewer Measure W Lighting Dist.

FUNDING ($1,000's)
Measure R* Measure M*
40$ 400$ L
L 500$ 1,300$
1,000$
600$ 200$
550$ 40$ 400$ 900$ 500$ 1,300$ -$ 1,000$ 200$ -$ 550$ 900$ L
40$ 400$ L
L 500$ 1,300$
1,000$
600$ 200$
550$ 40$ 400$ 900$ 500$ 1,300$ -$ 1,600$ 200$ -$ 550$ 900$ L
40$ 400$ L
L 500$ 1,300$
1,000$
600$ 200$
45$
550$ 40$ 400$ 900$ 500$ 1,300$ -$ 1,600$ 200$ -$ 550$ 900$ L
Arterial and Collector Streeet Improvements
Ped Safety Improvement FY 2029-2030
(Various)
Sewer Rehabilitation FY 2029-2030
Storm Drain Rehabilitation FY 2029-2030
Pavement Mangaement Program Update
Sewer Rehabilitation FY 2030-2031
Sewer Rehabilitation FY 2028-2029
FISCAL YEAR 2029 - 2030
TOTAL Fiscal Year 2028 - 2029
TOTAL Fiscal Year 2029 - 2030
Ped Safety Improvement FY 2028-2029
(Various)
FISCAL YEAR 2031 - 2032
Arterial and Collector Streeet Improvements
Storm Drain Rehabilitation FY 2028-2029
Arterial and Collector Streeet Improvements
Local Street Improvement FY 2029-2030
(Various)
Local Street Improvement FY 2028-2029
(Various)
Local Street Improvement FY 2030-2031
(Various)
Storm Drain Rehabilitation FY 2030-2031
TOTAL Fiscal Year 2030 - 2031
Ped Safety Improvement FY 2030-2031
(Various)
FISCAL YEAR 2030 - 2031
105
CAPITAL IMPROVEMENT PROJECT (CIP) STREET REHABILITATION TEN (10) YEAR PLAN - FISCAL YEARS ENDING 2022-2032 Prop C SB 821 Gas Tax SB1 Federal Sewer Measure W Lighting Dist.

FUNDING ($1,000's)
Measure R* Measure M*
40$ 400$ L
L 500$ 1,300$
1,000$
600$ 200$
550$ 40$ 400$ 900$ 500$ 1,300$ -$ 1,000$ 200$ -$ 550$ 900$ L
40$ 400$ L
L 500$ 1,300$
1,000$
600$ 200$
550$ 40$ 400$ 900$ 500$ 1,300$ -$ 1,000$ 200$ -$ Arterial and Collector Streeet Improvements
Ped Safety Improvement FY 2031-2032
Local Street Improvement FY 2031-2032
Sewer Rehabilitation FY 2031-2032
Storm Drain Rehabilitation FY 2031-2032
TOTAL Fiscal Year 2032 - 2033
* L - Local Share & R - Regional/Highway funds
FISCAL YEAR 2032 - 2033
Ped Safety Improvement FY 2031-2032
(Various)
Sewer Rehabilitation FY 2031-2032
Local Street Improvement FY 2031-2032
(Various)
Storm Drain Rehabilitation FY 2031-2032
TOTAL Fiscal Year 2031 - 2032
106

THIS PAGE INTENTIONALLY LEFT BLANK
107

DEBT SERVICE

PROPOSED AMENDED BUDGET

FISCAL YEAR
2023/2024
108
Series PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL PRINCIPAL INTEREST TOTAL Certificates of Participation (COPs):
2006 A¹ 21,010,000 27,690,971 48,700,971 5,940,000 1,492,283 7,432,283 665,000 357,759 1,022,759 5,275,000 1,134,524 6,409,524 2007 A 2,800,000 1,929,165 4,729,165 1,195,000 289,857 1,484,857 125,000 60,575 185,575 1,070,000 229,282 1,299,282 Direct Purchase Lease:
2017² 1,635,000 121,078 1,756,078 285,000 2,950 287,950 285,000 2,950 287,950 - - - Lease Revenue Bonds:
2014¹ 9,110,000 8,035,249 17,145,249 8,750,000 4,282,812 13,032,812 70,000 435,799 505,799 8,680,000 3,847,013 12,527,013 2021 13,155,000 5,319,216 18,474,216 12,440,000 4,490,000 16,930,000 465,000 476,000 941,000 11,975,000 4,014,000 15,989,000 Taxable Pension Obligation Bonds:
2020³ 101,490,000 36,502,806 137,992,806 94,620,000 29,541,483 124,161,483 4,210,000 2,891,196 7,101,196 90,410,000 26,650,287 117,060,287 $155,700,000 $79,598,485 $235 ,298,485 $123,230,000 $40,099,385 $163,329,385 $5,820,000 $4,224,279 $10,044,279 $117,410,000 $35,875,106 $153,285,106 Professional services and Admin. Fees: 9,545$
TOTAL: 10,053,824$
REVENUE SOURCES:

Transfer-in from General Fund 8,270,066$
Transfer-in from GTrans Fund 1,490,541$
Transfer-in from Sewer Fund 69,592$
Transfer-in from Grant Funds 223,625$
10,053,824$
¹ In Fiscal Year 2014/2015, 2006 Series B was refunded by the 2014 Taxable Lease Revenue Refunding Bonds. ² In Fiscal Year 2016/2017, 2006 Series C was refunded by the 2017 Direct Purchase Lease Bonds. ³ Of the original principal issued, $79,193,585 was allocated to governmenal activities (General) and $22,296,415 was allocated to business-type activities (Enterprise).

ENDING BALANCE June 30, 2024ORIGINAL ISSUE BEGINNING BALANCE July 1, 2023 RETIRED FY 2023-24

CITY OF GARDENA
FISCAL YEAR 2023-2024

DEBT SERVICE REQUIREMENTS
109
BOND ISSUES: CITY OF GARDENA
Refunding Certificates of Participation
DATE OF ISSUES: June 7, 2006
AMOUNT OF ISSUE: $21,010,000.00
AMOUNT OUTSTANDING: $5,940,000.00 *
(June 30, 2023)
DESCRIPTION: The 2006 Refunding Certificates of Participation Series AB&C are issued to (1) refinance certain financial obligations of the City in connection with a Memorandum of Understanding with certain financial institutions, (2) prepay and defease certain outstanding 1994 Refunding Certificates of Participation, (3) fund a reserve fund and (4) pay certain costs of issuance.

The total $21,010,000 includes $12,495,000 aggregate principal amount of Certificates of Participation (2006 Refinancing Project, Series A), and $8,515,000 aggregate principal amount of Certificates of Participation Series B (the 2006C Certificates.) *Note-In Fiscal Year 2014-2015 the 2006 Certificate of Participation, Series B, was refunded by the 2014 Taxable Lease Revenue Refunding Bonds, Series 2014. The econmic gain on the current refunding was $1,637,398 and the savings in debt service payments was $2,360,051.

The bond interest rates vary from 3.625% to 4.500%.

PAYMENT DATES: January 1 and July 1
PAYMENT AGENT: US Bank
FY 2022-23 FY 2023-24 FY 2024-25

REVENUE SOURCES
Transfer-in from General Fund 1,026,340 1,025,189 1,021,486 TOTAL: 1,026,340$ 1,025,189$ 1,021,486$

EXPENDITURES
Interest Expense 398,910 357,759 314,056
Principal payment 625,000 665,000 705,000
Administration and trustee fees 2,430 2,430 2,430
TOTAL: 1,026,340$ 1,025,189$ 1,021,486$

DEBT SERVICE REQUIREMENTS

DEBT SERVICE REQUIREMENTS
2006 REFUNDING CERTIFICATES OF PARTICIPATION SERIES A
(Issued in 2006)
110
BOND ISSUES: CITY OF GARDENA
Direct Purchase Lease
DATE OF ISSUES: June 2017
AMOUNT OF ISSUE: $1,635,000.00
AMOUNT OUTSTANDING: $285,000.00
(June 30, 2023)
DESCRIPTION: The 2017 Direct Purchase Lease Bonds were issued to (1) refund 2016 Certificate of Participation, Series C, (2) interests due and (3) p
ay certain costs of issuance.

The bonds bear interest at 2.07%.

PAYMENT DATES: January 1 and July 1
PAYMENT AGENT: Zions Bank
FY 2022-23 FY 2023-24 FY 2024-25

REVENUE SOURCES
Transfer-in from General Fund 288,798 287,950 -
TOTAL: 288,798$ 287,950$ -$

EXPENDITURES
Interest Expense 8,798 2,950 -
Principal payment 280,000 285,000 -
Administration and trustee fees - - -
TOTAL: 288,798$ 287,950$ -$

DEBT SERVICE REQUIREMENTS

DEBT SERVICE REQUIREMENTS
2017 DIRECT PURCHASE LEASE
(Issued in 2017)
111
BOND ISSUES: CITY OF GARDENA
South Bay Communication Center
DATE OF ISSUES: January 24, 2007
AMOUNT OF ISSUE: $2,800,000.00
AMOUNT OUTSTANDING: $1,195,000.00
(June 30, 2023)
DESCRIPTION: The 2007 A Refunding Revenue Bonds are issued pursuant to Indenture of Trust, dated as of February 1, 2007 by and between the South Bay Regional Public Communications Authority (SBRPCA), and the Bank of New York Trust Company, N.A. as trustee. The bonds are issued to refund SBRPCA Revenue Bonds 2001Series A (City of Gardena Project) in an amount of $2,800,000, to fund the Reserve Account, and to pay certain costs of issuance.

PAYMENT DATES: January 1 and July 1
PAYMENT AGENT: Bank of New York Trust Company
FY 2022-23 FY 2023-24 FY 2024-25

REVENUE SOURCES
Transfer-in from General Fund 188,545 187,545 186,295 TOTAL: 188,545$ 187,545$ 186,295$

EXPENDITURES
Interest Expense 66,575 60,575 54,325 Principal payment 120,000 125,000 130,000 Trustee admin. services 1,970 1,970 1,970 TOTAL: 188,545$ 187,545$ 186,295$

DEBT SERVICE REQUIREMENTS

DEBT SERVICE REQUIREMENTS
2007 REVENUE BONDS SERIES A
(Issued in 2007)
112
BOND ISSUES: CITY OF GARDENA
Taxable Lease Revenue Refunding Bonds
DATE OF ISSUES: May 1, 2015
AMOUNT OF ISSUE: $9,110,000.00
AMOUNT OUTSTANDING: $8,745,000.00
(June 30, 2023)
DESCRIPTION: The 2014 Taxable Lease Revenue Refunding Bonds, were issued to (1) refund the 2006B Certificates, (2) fund capitalized interest for a portion of the Bonds through May 1, 2017, and (3) pay a portion of the costs of issuance.

The bond interest rates vary from 3.950% to 5.000%.

PAYMENT DATES: May 1 and November 1
PAYMENT AGENT: US Bank
FY 2022-23 FY 2023-24 FY 2024-25

REVENUE SOURCES
Transfer-in from General Fund 506,011 508,444 505,679 TOTAL: 506,011$ 508,444$ 505,679$

EXPENDITURES
Interest Expense 438,366 435,799 433,034 Principal payment 65,000 70,000 70,000 Administration and trustee fees 2,645 2,645 2,645 TOTAL: 506,011$ 508,444$ 505,679$

DEBT SERVICE REQUIREMENTS
2014 TAXABLE LEASE REVENUE REFUNDING BONDS
(Issued in 2015)

DEBT SERVICE REQUIREMENTS
113
BOND ISSUES: CITY OF GARDENA
Taxable Pension Obligation Bonds
DATE OF ISSUES: November 1, 2020
AMOUNT OF ISSUE: $101,490,000.00 ($79,193,585 General and $22,296,415 Enterprise) AMOUNT OUTSTANDING: $94,620,000.00 ($73,832,923 General and $20,787,077 Enterprise) (June 30, 2023)
DE
SCRIPTION: The 2020 Taxable Pension Obligation Bonds were issued to (1) finance a portion of the City's unfunded accrued actuarial liability to the California Public Employees' Retirement System (CalPERS) and (2) pay the costs of issuance of the bonds. Of the original principal issued, $79,193,585 was allocated to governmenal activities (General) and $22,296,415 was allocated to business-type activities (Enterprise).

The bond interest rates vary from 1.081% to 3.363%.

PAYMENT DATES: April 1 and October 1
PAYMENT AGENT: US Bank
FY 2022-23 FY 2023-24 FY 2024-25

REVENUE SOURCES
Transfer-in from General Fund 4,948,349 5,319,938 5,712,295 Transfer-in from GTrans Fund 1,386,169 1,490,541 1,601,109 Transfer-in from Sewer Fund 64,719 69,592 74,754
Transfer-in from Grant Funds 207,214 223,625 242,304
TOTAL: 6,606,451$ 7,103,696$ 7,630,462$

EXPENDITURES
Interest Expense 2,938,951 2,891,196 2,827,962 Principal payment 3,665,000 4,210,000 4,800,000 Administration and trustee fees 2,500 2,500 2,500
TOTAL: 6,606,451$ 7,103,696$ 7,630,462$

DEBT SERVICE REQUIREMENTS
2020 TAXABLE PENSION OBLIGATION BONDS
(Issued in 2020)

DEBT SERVICE REQUIREMENTS
114
BOND ISSUES: CITY OF GARDENA
Lease Revenue Bonds
DATE OF ISSUES: September 1, 2021
AMOUNT OF ISSUE: $13,155,000.00
AMOUNT OUTSTANDING: $12,440,000.00
(June 30, 2023)
DESCRIPTION: The 2021 Lease Revenue Bonds were issued to (1) finance a portion of the costs of construction of the new Gardena Community Aquatic & Senior Center, (2) finance the costs of acquiring and renovating an existing building to be converted into a new Community Center, (3) finance various park improvements, and (4) pay the costs of issuance.

The bond interest rates vary from 3.000% to 5.000%.

PAYMENT DATES: May 1 and November 1
PAYMENT AGENT: US Bank
FY 2022-23 FY 2023-24 FY 2024-25

REVENUE SOURCES
Transfer-in from General Fund 938,000 941,000 942,750 TOTAL: 938,000$ 941,000$ 942,750$

EXPENDITURES
Interest Expense 498,000 476,000 452,750 Principal payment 440,000 465,000 490,000 Administration and trustee fees - - - TOTAL: 938,000$ 941,000$ 942,750$

DEBT SERVICE REQUIREMENTS
2021 LEASE REVENUE BONDS
(Issued in 2021)

DEBT SERVICE REQUIREMENTS
115

INTERNAL SERVICE FUNDS

PROPOSED AMENDED
BUDGET
FISCAL YEAR 2023/2024
116

INTERNAL SERVICE FUNDS
I
nternal Service Funds are established to cover the cost of insurance and other ongoing administrative obligations and to separate these funds from the G eneral Fund account . The City is self -insured for general liability, w orker’s compensation and employee health benefits coverage. Funds in these accounts are used to pay all self -insured losses and related administrative costs with the balance in each account at the end of the fiscal year accumulated as reserves against future liabilities.

SEL

F - INSURANCE PROGRAMS
The C
ity retains the services of Third- Party Administrators (TPA) to handle claims for general liability, worker’s
compensation and health care claims. Current services are provided by:

G
eneral Liability Claims – Carl Warren & Co.

Workers Compensation Claims – LWP Claims Solutions
Health Benefits Plan – Pinnacle Claims Management
• General Liability
The General Liability Fund provides for the City's general liability, self-insurance program, and other insurance needs in order to reduce cost and provide better control; to provi de
f
or the administration and legal service necessary for the operation of this program; to provide insurance protecti on agai
nst catastrophic loss or losses and to provide payment
of liability insurance purchased in excess of the City’s self- insurance limits.

Charges to departments are established by the Director of Administrative Services and included in the budget manual.

Upon recommendation from the finance committee,
additional reserves may be transferred at year-end from the General Fund reserves.
• W
orkers Compensation
The Workers Compensation Fund is established to pay
administrative and legal services necessary for the
operation of this program; to provide payment of
compensation benefits and medical expenses associated
w
ith industrial injuries; to provide insurance protecti on agai
nst a catastrophic loss or losses; to review and analyze t
he City’s industrial injury risks and determine the most suitable means of reducing employee expos ure, and to
dev
elop procedures for the administration of the City’s Self- Insurance Compensation and Safety Program.

Charges to departments are established by the Director of Administrative Services and included in the budget manual.

PUBLIC SERVICE GOAL: To continually build and maintain adequate reserves through annual budget contributions to protect the City’s investment in the cost of insurance and other ongoing administrative obligations. 117
• Health Benefits
The City is self-insured for health benefits for its employees and purchases reinsurance to transfer some of its risk.

Rates are set by the Health Benefits Committee, which is comprised of management and one employee from each of
the employee bargaining groups. The committee reviews
the cost of health care, changes in benefits, and market trends in order to establish the rate for health insurance.

Fund levels are set at a 70% confidence
rate.

The f
und is supported through contributions of both
employees and the City as negotiated each year with the employee bargaining groups. T he City’s contribut ion is $1,498 per month for the employee and one dependent.

Employees contribute an additional $494 per month if they have more than one dependent insured. Rates for life
insurance varies depending on the bargaining group.
118
Internal Service Funds Audited
2020-2021
Audited
2021-2022
Adopted
2022-2023
Proposed Amended
2023-2024
Self-Insurance Liability 1,895,716 5,981,037 2,650,414 3,094,625 Self-Insurance Workers Comp 3,161,078 6,761,332 2,217,890 2,329,683 Self-Insurance Health Benefit Fund 8,961,087 9,177,147 10,082,809 11,074,225 Total Internal Service Funds 14,017,881 21,919,516 14,951,113 16,498,533 Self-Insurance
Liability
19%
Self-Insurance
Workers Comp
14%
Self-Insurance Health
Benefit Fund
67%
119

APPENDIX
120

ACCOUNTING SYSTEM
The total set of records and procedures that are used to record, classify, and report information on the financial status and operations of an entity.

ACCOUNTS PAYABLE
Amounts owing to private persons, firms, or corporations for goods and services received.

ACCOUNTS RECEIVABLE
Amounts owing from private persons, firms, or corporations for goods and services furnished.

ACCRUAL
Transactions and events are recognized as revenues/gains or expenses/losses when they occur, regardless of the timing of the related cash flows.

ADOPTION
Formal action by the City Council that sets the spending path for the fiscal year.

ALLOCATION
The practice of spreading costs among various cost centers on some predetermined reasonable basis (e.g., percentages) as opposed to distribution of expenses on a unit charge or direct identification basis.

ACTIVITY
A specific unit of work or service performed.

APPROPRIATION
An authorization made by the City Council that permits officials to incur obligations against and to make expenditures of governmental resources. Appropriations are usually made for fixed amounts and are typically granted for a one-year period.

APPROPRIATION ORDI
NANCE
The official enactment by the City Council establishing the legal authority for the City officials to obligate and expend resources.

ASSESSED VALUATION
The estimated value placed upon real and personal property by the County Assessor as the basis for levying property taxes.

ASSETS
The entries on a balance sheet showing all properties and claims against others that may be used directly or indirectly to cover liabilities.

AUDIT
A systematic examination of resource utilization concluding in a written report. It is a test of management’s internal accounting controls and is intended to:
• Ascertain whether financial statements fairly present financial positions and results of operations;
• Test whether transactions have been legally performed; • Identify areas for possible improvements in accounting practices and procedures;
• Ascertain whether transactions have been recorded accurately and consistently; and
• Ascertain the managerial conduct of officials responsible for governmental resources.

BALANCE SHEET
A statement purporting to present the financial position of an entity by disclosing its assets, liabilities, and fund equities as of a specific date.

Under varying circumstances, assets are carried at “lower of cost or market,” “cost less allowance for depreciation,” etc.

BOND (Debt Instrument)
A written promise to pay (debt) a specified sum of money (called principal or face value) at a specified future date (called the maturity date) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long- term debt to pay for specific capital expenditures.

BUDGET (Operating)
A plan of financial operation embodying an estimate of proposed expenditures for a given period (typically a fiscal year) and the proposed means of financing them (revenue estimates). The term is also sometimes used to denote the officially approved expenditure ceilings under which the City and its departments operate .

BUDGET CALENDAR
The schedule of key dates or milestones which the City follows in the preparation and adoption of the budget.
121
BUDGET MESSAGE (City Manager’s)
A general discussion of the proposed budget presented in writing as a part of, or supplement to, the budget document. The budget message explains principal budget issues against the background of financial experience in recent years and presents recommendations made by the City Manager
.

CAPITAL ASSETS
Assets of significant value and having a useful life of more than one year. Capital assets are also called fixed assets.

CAPITAL BUDGET
A plan of proposed capital expenditures and the means of financing them. The capital budget is enacted as part of the City’s consolidated budget which includes both operating and capital outlays, and is based on a capital improvement program (CIP).

CAPITAL IMPROVEMENT PROGRAM (CIP)
A plan for capital expenditures to be incurred each year over a period of ten future years setting forth each capital project, the amount to be expended in each year, and the method of financing those expenditures.

CAPITAL OUTLAYS
Expenditures for the acquisitions of capital assets. Includes the cost of land, buildings, permanent improvements, machinery, large tools, rolling, and stationary equipment.

CAPITAL PROJECTS
Projects which purchase or construct capital assets. Typically a capital project encompasses a purchase of land and/or the construction of a building or facility.

CAPITAL PROJECTS FUND
Used to account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds).

CERTIFICATE OF DEP
OSIT
A negotiable or non-negotiable receipt for monies deposited in a bank or financial institution for a specified period and rate of interest.

COMMODITIES
Items of expenditure (in the operating budget) which after use, are consumed or show a material change in their physical condition, and which are generally of limited value and are characterized by rapid depreciation, i.e. office supplies and motor fuel.

CONTINGENCY
A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted for.

CONTRACTUAL SERVICES
Items of expenditure for services the City receives from an internal service fund or an outside company. Utilities, rent and maintenance service agreements are examples of contractual services.

CONSUMER PRICE INDEX (CPI):

A statistical description of price levels provided by the U.S. Department of Labor. The change in this index from year to year is used to measure the cost of living and economic inflation.

DEBT SERVICE
Payment of interest and repayment of principal to holders of the City’s debt instruments.

DEBT SERVICE FUND
Used to account for the accumulation of resources for, and payment of, general long-term debt.

DEFICIT
• The excess of entity’s liabilities over its assets (See Fund Balance). • The excess of expenditures or expenses over revenues during a single accounting period.

DEPARTMENT
An organizational unit comprised of one or more divisions.

DEPRECIATION
Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence.
• That portion of the cost of a capital asset, which is charged as an expense during a particular period.

DEBT RATIO
A ratio that indicates the proportion of debt compared to assets, calculated by dividing total debt by total assets.
122

DIVISION
A program or activity, within a department, that furthers the objectives of the City Council by providing services or products.

ENCUMBRANCES
Obligations in the form of purchase orders or contract commitments, which are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when paid or when an actual liability is set up.

ENTERPRISE FUND
Separate financial accounting used for government operations that are financed and operated in a manner similar to business enterprises, and where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public be financed or recovered primarily through user charges, or where the governing body had decided that periodic determination of net income is appropriate for capital maintenance, public policy, management control, or other purposes (i.e. utilities and transit systems).

EXPENDITURES
Where accounts are kept on the accrual or modified accrual basis of accounting, the cost of goods received or services rendered whether cash payments have been made or not. Where accounts are kept on a cash basis, expenditures are recognized only when the cash payments for the above purposes are made.

FISCAL YEAR
The City’s fiscal year is based on the twelve- month period beginning July 1st and ending the following June 30th.

FIXED CHARGES
Items of expenditure for services rendered by internal operations of the City. Examples include: rental equipment, computer services, building rental, indirect operating expenses, and depreciation.

FRINGE BENEFITS
Included are employee retirement, social security, Medicare, health, dental, life insurance, workers’ compensation, uniforms, and deferred compensation plans.

FULL FAITH AND CREDIT
A pledge of the City’s taxing power to repay debt obligations (typically used in reference to General Obligation Bonds or tax-supported debt).

FUND
An independent fiscal and accounting entity with a self -balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives.

FUND BALANCE
The excess of an entity’s assets over its liabilities. A negative fund balance is sometimes called a deficit.

GENERAL FUND
The fund supported by taxes, fees and other revenues that may be used for any lawful purpose. The general fund accounts for all financial resources except those required to be accounted for in another fund.

GENERAL OBLIGATIO

N BONDS
When the City pledges its full faith and credit to the repayment of the bonds it issues, then those bonds are general obligation (G.O. ) bonds.

Sometimes the term is also used to refer to bonds, which are to be repaid from taxes and other general revenues. In California, G.O. bonds must be authorized by public referenda with two- thirds voter approval.

GOVERNMENTAL ACCOUN

TING STANDARDS BOARD
To establish and improve standards in governmental accounting and financial reporting that will result in useful information.

INTERGOVERNMENTAL
GRANT
A contribution of assets (usually cash) by one governmental unit or organization to another. Typically, these contributions are made to local governments from the State and Federal governments. Grants are usually made for specified purposes.

INTERNAL SERVICE FUND
Funds used to account for the financing of goods or services provided by one department or agency to another department or agency within the same organization.
123

INVESTMENT
Securities and real estate purchased and held for the production of income in the form of interest, dividends, rental or base payments.

LIABILITY
Debt or other legal obligations arising out of transactions in the past, which must be liquidated, renewed or refunded at some future date; financial obligations entered in the balance sheet. NOTE: The term does not include encumbrances.

MATURITIES
The dates on which the principal or stated values of investments or debt obligations mature and may be reclaimed.

MODIFIED ACCRUAL
Revenues are recognized when measurable and available to liquidate liabilities of the current period. Expenditures are recognized when an event or transaction is expected to draw on current or available resources.

MUNICIPAL CODE
A book containing City Council Approved Ordinances currently in effect. The Code defines City Policy in various categories (i.e., building regulations, planning and zoning regulations, sanitation and health standards, and traffic regulations).

OBJECT OF EXPENDI
TURE
Expenditure classifications based upon the types of categories of goods and services purchased. Examples include:

• personnel services (salaries and wages)
• contractual services (utilities, maintenance contracts, travel) • commodities
• fixed charges (rental of City equipment, City building rental) • capital outlays

OBJECTIVES
Departmental statements describing significant activities to be accomplished during the fiscal year.

OPERATING FUNDS
Resources derived from recurring sources used to finance ongoing operating expenditures and pay-as-you-go capital projects.

ORDINANCE
A formal legislative enactment by the governing board (City Council) of a municipality. If it is not in conflict with any higher form of law, it has the full force and effect of law within the boundaries of the municipality to which it applies.

PERFORMANCE MEASURES

Specific quantitative measures of work performed within an activity or program (e.g., total miles of streets cleaned). A specific quantitative measure of results obtained through a program or activity (e.g., reduced incidence of vandalism due to new street lighting program).

PERSONNEL SERVICES
Items of expenditures in the operating budget for salaries and wages paid for services performed by City employees, the incident fringe benefit cost associated with City employment, and amounts paid to outside firms, consultants, or individuals for contract personnel services.

PROGRAM
An activity , or division, within a department, which furthers the objectives of the City Council, by providing services or a product.

RATING
The credit worthiness of a City as evaluated by independent agencies.

REIMBURSEMENTS
Payments remitted by another agency, department, or fund to help defray the costs of a particular service or activity for which some benefit was obtained by the reimbursing party. These amounts are recorded as expenditures, or expenses in the reimbursing fund and as a reduction of expenditures, or expenses, in the fund that is reimbursed.

RESERVE
An account used to indicate that a portion of fund equity is legally restricted for a specific purpose, or set aside for emergencies or unforeseen expenditures not otherwise budgeted for. Reserve accounts can also be used to earmark a portion of fund balance to indicate that it is not appropriate for expenditures.
124

RESOLUTION
A special order of the City Council which requires less legal formality than an Ordinance in terms of public notice and the number of public readings prior to approval. A Resolution has lower legal standing than an Ordinance. The adopted operating budget is approved by Resolution and requires a majority vote of the Council members present at the time of adoption.

RESOURCES
Total dollars available for appropriations including estimated revenues, fund transfers, and beginning fund balances.

REVENUE
The term designates an increase to a fund’s assets which:
• does not increase a liability (e.g., proceeds from a loan); • does not represent a repayment of an expenditure already made; • does not represent a cancellation of certain liabilities; and • does not represent an increase in contributed capital.

REVENUE BONDS
When a government issues bonds, which do not pledge the full faith and credit of the jurisdiction, it issues limited liability revenue bonds.

Typically, pledges are made to dedicate one specific revenue source to repay these bonds. In addition to a pledge of revenues, such bonds sometimes may be secured by a lien against property.

REVENUE ESTIMATES
A formal estimate of how much revenue will be earned from a specific revenue source for some future period; typically, a future fiscal year.

REVOLVING ACCOUNT
A reserve account that is funded by the amortization of a capital asset value charged annually to the user department with the accumulated funds used to replace the asset when it has reached the end of its normal life cycle.

SALARIES AND BENEFITS

An operating budget category which generally accounts for full -time and part-time salaries, overtime costs, and fringe benefits.

SOURCE OF REVENUE
Revenues are classified according to their source or point of origin.

SPECIAL REVENUE FUND
Used to account for the proceeds of special revenue sources that are restricted by law (or ad ministrative action) to expenditures for specific purposes.

SUPPLIES AND SERVICES
This budget category accounts for all nonpersonnel, and noncapital outlay expenses (i.e., building/structure maintenance, contractual services, equipment maintenance, office supplies, small tool purchases, and utility costs).

TAXES
Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits, such as special assessments. Neither does this term include charges for services rendered only to those paying such charges.

TRIPLE-FLIP
The revenue formula the State of California imposed on local government. T he formula modifies (flips) the rate of distribution of three (triple) revenue sources that are passed through and distributed by the State: property tax, sales tax and motor vehicle-in-lieu fees.

TRANSFERS IN/OUT
Payments from one fund to another fund, primarily for work or services provided.

TRUST AND AGENCY FUND
A type of fund that temporarily holds monies for other agencies or legal entities.

UNIT COST
The cost required to produce a specific product or unit of service (e.g., the cost to purify one thousand gallons of water).

USER CHARGES (also kn
own as USER FEES)
The payment of a fee for direct receipt of a public service by the party benefiting from the service.

YIELD
The rate earned on an investment based on the price paid. 125
AB Assembly Bill
ABC Alcoholic Beverage Control
ADA American Disabilities Act
ADCRC Alzheimers Day Care Resource Center
AMBAC American Municipal Bond Assurance Corporation
AQMD Air Quality Management District
ARRA American Recovery and Reinvestment Act
ASST Assistant
ATF Alcohol Tobacco and Firearms, US Bureau of
ATM Automated Teller Machine
AVE Avenue
BHS Behavioral Health Services
BIT Biannual Inspection of Terminals
BJA Bureau of Justice Assistance
BLDG Building
BLVD Boulevard
CA California
CAL OSHA California Occupational Safety and Health Act
CALWORKS California Work Opportunity and Responsibility to Kids CAPE Community Action Project for the Elderly
CDBG Community Development Block Grant
CDE California Department of Education
CDPP County Delinquency Prevention Program
CEO Chief Executive Officer
CEQA California Environmental Quality Act
CHGS Charges
CINDEX Clerk's Index
CIP Capital Improvement Projects
CIS Continuous Improvement System
CJSSP County Justice System Subvention Program
CLEEP California Law Enforcement Equipment Program
CLETEP California Law Enforcement Technology
Equipment Program
CO Company
CO-ED Co-educational
C of O Certificate of Occupancy
COLA Cost of Living Adjustment
COPS Citizen Option for Public Safety
CORP Corporation
CPI Consumer Price Index
CSBG Community Services Block Grant
CSMFO California Society of Municipal Finance Officers
DEMO Demolition
DEV Development
DHS Department of Homeland Security
DIST District
DMH Department of Mental Health
DOC Document
DUI Driving Under the Influence
EAP Employee Assistance Program
EDWAA Economically Dislocated Worker Adjustment Act
E.G. For Example (Exempli Gratia)
ENF Enforcement
EPA Environmental Protection Agency
ERAF Educational Relief Augmentation Fund
ESA Environmental Site Assessment
E & T Education and Training
ETC Etcetera
EXP Expense
FAU Federal Aid to Urban Areas
FEMA Federal Emergency Management Agency
FPPC Fair Public Practices Commission
126
G-CAN Gardena Community Action Network
GAAFR Governmental Accounting, Auditing and Financial Reporting GAAP Generally Accepted Accounting Practices
GAAS Generally Accepted Auditing Standards
GASB Governmental Accounting Standards Board
GBAC Gardena Business Advisory Council
GED General Education Development
GEPCO Gardena Employee Personal Computer Opportunity
GFCC Gardena Family Child Care
GFOA Government Finance Officers Association
GIS Geographic Information System
GMBL Gardena Municipal Bus Line
GMC Gardena Municipal Code
GRADE Gardena Regional Anti-Drug Education
GRAGA Gardena Royal and Ancient Golf Association
GREAT Gang Resistance Education and Training
HS Human Services
HUD The U.S. Department of Housing and Urban Development ICMA International City/County Management Association
i.e. (Latin: id est) that is
IMPR Improvement
INC. Incorporated
IND Industrial
ISTEA Intermodal Surface Transportation Efficiency Act
JAG Justice Assistance Grant Program
JR. Junior
JT POWERS Joint Powers
L.A. Los Angeles
LACDACC Los Angeles County Department of Animal Care and Control LACoFD Los Angeles County Fire District
LLEBG Bureau of Justice Assistance Local Law Enforcement Block Grant Program
LP Limited Partnership
LAIF Local Agency Investment Fund
LTD. Limited
MAINT Maintenance
MDC Mobile Data Computers
MDT Mobile Data Terminals
MGMT Management
MGR. Manager
MIC Management Information Center
MISC. Miscellaneous
MMIC Municipal Mutual Insurance Company
MTA Metropolitan Transportation Authority
N.A. National Association
NPDES National Pollutant Discharge Elimination System
NRC National Revenue Corp.

OAA Older Americans Act
OCJP Office of Criminal Justice Planning
OJP Office of Justice Programs
OSHA Occupational, Safety and Health Administration
OTS Office of Traffic Safety
PARS Public Agency Retirement System
PERS Public Employee's Retirement System
PK. Park
PL Place
POP Problem Oriented Policing
POST Police Officers Standards and Training
PRIM Primary
PROG Program
PROP 127 Proposition 127: 1/2 cents of sales for public safety services (Public Safety Augmentation Fund)
PROP 40 Proposition 40: California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act
of 2002
PSI Progressive Solutions, Inc.

PT Part-time
127
RCC Regional Communication Center
REC. Recreation
RFP Request for Proposal
SB Senate Bill
S.B.R.P.C.A. South Bay Regional Public Communications Authority SBWIB South Bay Workforce Investment Board
SCAG Southern California Association of Governments
SCAMP Senior Community Action Meals Program
SCAMP HD Senior Community Action Meals Program-Home Delivered SCIBA Southern California International Business Academy SDA Service Delivery Area
SDCC Senior Day Care Center
SLESF Supplemental Law Enforcement Services Fund
SPORTS Service Providing Opportunities through Recreational Training & Support
SR. Senior
ST Street
STEP Strategic Traffic Enforcement Program
STEP Subsidized Transitional Employment Program
STIP State Transportation Improvement Program
STPLHG Surface Transportation Program Local Hazard Grant SUBVN Subvention
SYETP Summer Youth Employment and Training Program
TDA Transportation Development Act
TEA 21 Transportation Equity Act for the 21st Century
TECH Technical
TRANS Tax and Revenue Anticipation Notes
TRAP Taskforce For Regional Auto Theft Prevention
TRG Training
TV Television
UHP Universal Hiring Program
US United States
USDOJ U.S. Department of Justice
WIA Workforce Investment Act
WRG Waste Resources of Gardena
WOTC Work Opportunity Tax Credits
YMCA Young Men's Christian Association
128

City of Gardena
Gardena City Council Meeting

AGENDA REPORT SUMMARY
Agenda Item No. 12.B
Section: DEPARTMENTAL

ITEMS - ADMINISTRATIVE

SERVICES
Meeting Date: June 27, 2023

TO: THE HONORABLE MAYOR AND MEMBERS OF THE GARDENA CITY COUNCIL AGENDA TITLE:

PUBLIC HEARING: RESOLUTION NO. 6633
, Establishing the
Appropriations Limit for Fiscal Year 2023-2024 (GANN Limit) COUNCIL ACTION REQUIRED:

Staff Recommendation: Staff respectfully recommends that the City Council open the public hearing, receive testimony, allow three (3) minutes for each speaker; and Adopt Resolution No. 6633 which establishes the City's Appropriations Limit for Fiscal Year 2023-2024 at $138,153,439, as required by Article XIII (B) of the California Constitution.

RECOMMENDATION AND STAFF SUMMARY:

In 1979, Proposition 4, known as the Gann Initiative, was approved by the voters. As a result, Article XIII (B) of the state statute (Government Code, Section 7900-10) was enacted and requires that each year thereafter the governing body of each local jurisdiction shall, by resolution, establish its Appropriations Limit for the following year. Proposition 111, approved by the voters in 1990, amended Article XIII (B) further, and Council action is necessary to implement the amendments effective for Fiscal Year 2023-2024. The amendments of Proposition 111 specify that the annual adjustment factor in calculating the Appropriations Limit will be increased by:

The change in population growth for the City
OR
County, whichever has the higher
population growth rate
The change in California per capita personal income
OR
The growth in non-residential assessed valuation due to new construction within the City.

Pursuant to Proposition 111 amendments and upon Council approval, staff has calculated the Fiscal Year 2023-2024 Appropriations Limit using the City's population change and the percentage change in per capita personal income in California.

The Appropriations Limit for Fiscal Year 2023-2024 is $138,153,439 with appropriations of $81,831,342 subject to the limit, leaving a remaining appropriations capacity of $56,322,097.

The Appropriations Limit calculation formula is attached as reference (Exhibit A).

The Appropriations Limit for Fiscal Year 2023-2024 was publicly noticed in the Gardena Valley News on June 15, 2023.

Staff recommends that the City Council adopt Resolution No. 6633, which establishes the Gann Limit for Fiscal Year 2023-2024 at $138,153,439.

FINANCIAL IMPACT/COST:

Appropriations Limit: $138,153,439 Funding Source: All Revenue Sources Remaining Appropriations Capacity: $56,322,097 ATTACHMENTS:

Resolution 6633 - Gann Limit FY23-24 including Exhibit A.pdf

APPROVED:
___________________________________
Clint Osorio, City Manager

City of Gardena
Gardena City Council Meeting

AGENDA REPORT SUMMARY
Agenda Item No. 12.C
Section: DEPARTMENTAL

ITEMS - ADMINISTRATIVE

SERVICES
Meeting Date: June 27, 2023

TO: THE HONORABLE MAYOR AND MEMBERS OF THE GARDENA CITY COUNCIL AGENDA TITLE:

RESOLUTION NO. 6634
, Acknowledging the Receipt and Filing of the
Annual Statement of Investment Policy for the Fiscal Year 2023-2024 COUNCIL ACTION REQUIRED:

Staff Recommendation: Adopt Resolution No. 6634
RECOMMENDATION AND STAFF SUMMARY:

Staff requests that the City Council adopt Resolution No. 6634 approving the City's Investment Policy for Fiscal Year 2023-2024.

City staff completed a review of its Investment Policy to ensure compliance with state and federal statutes, maximizing interest and minimizing risk.

The purpose of the Investment Policy is to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City objectives of safety, liquidity and return on investment through a diversified investment portfolio. The policy also serves to organize and formalize the City's investment related activities. The policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurer's Association (CMTA), California Debt and Investment Advisory Commission (CDIAC), the Association of Public Treasurers (APT) and Chandler Asset Management, Inc.

FINANCIAL IMPACT/COST:

N/A
ATTACHMENTS:

Reso. 6634 Investment Policy 2023-2024 including Policy.pdf

APPROVED:
___________________________________
Clint Osorio, City Manager

CITY OF GARDENA

INVESTMENT POLICY
JULY 2023

1 CITY OF GARDENA

INVESTMENT POLICY

CONTENTS

I. INTRODUCTION .................................................................................................................. 2 II. SCOPE................................................................................................................................ 2 III. PRUDENCE ......................................................................................................................... 2 IV. OBJECTIVES ....................................................................................................................... 3 V. DELEGATION OF AUTHORITY ............................................................................................ 3 VI. ETHICS AND CONFLICTS OF INTEREST ............................................................................... 4 VII. INTERNAL CONTROLS ........................................................................................................ 4 VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS ............ 5 IX. AUTHORIZED INVESTMENTS .............................................................................................. 6 X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES ..................................................... 10 XI. INVESTMENT POOLS/MUTUAL FUNDS ............................................................................. 10 XII. COLLATERALIZATION ...................................................................................................... 11 XIII. DELIVERY, SAFEKEEPING AND CUSTODY ........................................................................ 11 XIV. MAXIMUM MATURITY .................................................................................................... 12 XV. RISK MANAGEMENT AND DIVERSIFICATION ................................................................... 12 XVI. REVIEW OF INVESTMENT PORTFOLIO .............................................................................. 13 XVII. PERFORMANCE EVALUATION .......................................................................................... 13 XVIII. REPORTING...................................................................................................................... 13 XIX. REVIEW OF INVESTMENT POLICY .................................................................................... 14 GLOSSARY OF INVESTMENT TERMS ............................................................................................... 15

2 I. INTRODUCTION

The purpose of this investment policy is to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City of Gardena objectives of safety, liquidity and return on investment through a diversified investment portfolio. This policy also serves to organize and formalize the City of Gardena’s investment -related activities, while complying with all applicable statu tes governing the investment of public funds. This policy is writte n to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association ( GFOA), California Municipal Treasurers Association ( CMTA), California Debt and Investment Advisory Commission ( CDIAC) and the Association of Public Treasurers (APT).

This investment policy was endorsed and adopted by the City of Gardena’s City Council and is effective as of the 1st day of July, 2023, and replaces any previous versions.

II. S
COPE

This policy covers all funds and investment activities under the direct authority of the City of Gardena, as set forth in the State Government Code, S ections 53600 et seq., with the following exceptions:

• Proceeds of debt issuance shall be invested in acco rdance with the City of Gardena’s general investment philosophy as set forth in this policy; however, such proceeds are to be invested pursuant to the permitted investment provisions of their specific bond indentures.

• Any other funds specifically exempted by the City Council.

OOLING OF FUNDS
Except for cash in certain restricted and special funds, the City of Gardena will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

III. P

RUDENCE

Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City of Gardena are trustees and therefore fiduciaries subject to the Prudent Investor Standard:

“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and 3 diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquid ity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”

The Treasurer and other authorized persons responsible for managing City of Gardena funds acting in accordance with this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes provided that the Treasurer or other authorize d persons acted in good faith.

Deviations from expectations of a security’s credit or market risk should be reported to the governing body in a timely fashion and appropriate action should be taken to control adverse developments.

IV. O

BJECTIVES

The City of Gardena’s overall investment program shall be designed and managed with a degree of professionalism worthy of the public trust. The overriding objectives of the program, in priority order, are to preserve principal, provide sufficient liquidity, and manage investment risks, while seeking a market-rate of return.

• S
AFETY. Safety of principal is the foremost objective of the investment program.

Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfo lio. To attain this objective, the City of Gardena will diversify its investments by investing funds among a variety of securities with independent returns.

• L
IQUIDITY. The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.

• RETURN ON INVESTMENTS. The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints f or safety and liquidity needs.

V. DELEGATION OF AUTHORITY

Authority to manage the City of Gardena’s investment program is derived from California Government Code, Sections 41006 and 53600 et seq.

The City Council is responsible for the management of the City of Gardena ’s funds, including the administration of this investment policy. Management responsibility for the cash management of the City of Gardena’s funds is hereby delegated to the Treasurer or other authorized persons.

4 The Treasurer, or his/her designee, will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate officials and employees. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer.

The City of Gardena may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City of Gardena ’s investment portfolio in a manner consistent with the City of Gardena’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

The City of Gardena's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City of Gardena recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City of Gardena.

VI. E

THICS AND CONFLICTS OF INTEREST

All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. Thus, employees and officials involved in the investment process shall refrain from personal business activity that could create a conflict of interest or the appearance of a conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

Employees and investment officials shall disclose to the City Manager, or his/her designee, any material interests in financial institutions with which they conduct business , and they shall further disclose any large personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking any personal investment transactions with the same individual with whom business is conducted on behalf of the Agency.

VII. I

NTERNAL CONTROLS

The City Treasurer, or his/her designee, is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

Periodically, as deemed appropriate by the City of Gardena and/or the City Council , an
independent analysis by an external auditor shall be conducted to review internal controls, account activity and compliance with policies and procedures. 5 VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS

To the extent practicable, the Treasurer, or his/her designee, shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City of Gardena’s Treasurer, or his/her designee, will determine which financial institutions are authorized to provide investment services to the City of Gardena . It shall be the City of Gardena’s policy to purchase securities only from authorized institutions and firms.

The Treasurer, or his/her designee, shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City of Gardena. Due inquiry shall determine whether such a uthorized broker/dealers, and the individuals covering the City of Gardena are reputable and trustworthy, knowledgeable and experienced in Public Agency investing and able to meet all of their financial obligations.

These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

In accordance with Section 53601.5, i nstitutions eligible to transact in vestment business with the City of Gardena include:

• Primary government dealers as designated by the Federal Reserve Bank and non- primary government dealers.

• Nationally or state-chartered banks.

• The Federal Reserve Bank.

• Direct issuers of securities eligible for purchase.

Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City of Gardena , except where the City of Gardena utilizes an external investment adviser in which case the Agency may rely on the adviser for selection.

All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Treasurer, or his/her designee, with audited financials and a statement certifying that the institution has reviewed the California Government Code , Section 53600 et seq . and the City of Gardena’s investment policy. The Treasurer, or his/her designee, will conduct an annual review of the financial condition and registrations of such qualified bidders.

Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insuranc e Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.

Selection of broker/dealers used by an external investment adviser retained by the City of Gardena will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall 6 be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

IX. AUTHORIZED INVESTMENTS

The City of Gardena’s investments are governed by California Government Code, Sections 53600 et seq. Within the investments permitted by the Code, the City of Gardena seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits listed in this section app ly at the time the security is purchased.

Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity, and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and institution to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers.

1. M
UNICIPAL SECURITIES include obligations of the City of Gardena , the State of California and any local agency within the State of California, provided that:

• The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”). • No more than 5% of the portfolio may be invested in any single issuer. • No more than 30% of the portfolio may be in Municipal Securities. • The maximum maturity does not exceed five (5) years.

2. MUNICIPAL SECURITIES (REGISTERED TREASURY NOTES OR BONDS ) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.

3. U.S. TREASURIES and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no 7 limits on the dollar amount or percentage that the City of Gardena may invest in U.S.

Treasuries, provided that:

• The maximum maturity is five (5) years.

4. FEDERAL AGENCIES or United States Government -Sponsored Enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by fede ral agencies or United States government -sponsored enterprises. There are no limits on the dollar amount or percentage that the City of Gardena may invest in Federal Agency or Government-Sponsored Enterprises (GSEs), provided that:

• No more than 25% of the portfolio may be invested in any single Agency/GSE issuer.
• The maximum maturity does not exceed five (5) years.
• The maximum percent of agency callable securities in the portfolio will be 20%.

5. B
ANKER’S ACCEPTANCES, provided that:

• They are issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO ; or long- term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 40% of the portfolio may be invested in Banker’s Acceptances. • No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed 180 days.

6. C
OMMERCIAL PAPER, provided that:

• The issuer is a corporation organized and operating in the United States with assets in excess of $500 million.
• The securities are rated “A-1” or its equivalent or better by at least one NRSRO. • They are issued by corporations which have long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO. • City of Gardena may purchase no more than 10% of the outstanding commercial paper of any single issuer.
• No more than 25% of the portfolio may be invested in Commercial Paper. • No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed 270 days.

7. N
EGOTIABLE CERTIFICATES OF DEPOSIT (NCDS), issued by a nationally or state - chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state -licensed branch of a foreign bank, provided that:

• The amount of the NCD insured up to the FDIC limit does not require any credit ratings.
8 • Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A -1” or its equivalent or better by at least one NRSRO; or long- term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in NCDs (combined with CDARS).
• No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

8. FEDERALLY INSURED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:

• The amount per institution is limited to the maximum covered under federal insurance.
• No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five (5) years.

9. C
OLLATERALIZED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with secur ities in accordance with California law, provided that:

• No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five (5) years.

10. C
ERTIFICATE OF DEPOSIT PLACEMENT SERVICE (CDARS), provided that:

• No more than 30% of the total portfolio may be invested in a combination of Certificates of Deposit, including CDARS.
• The maximum maturity does not exceed five (5) years.

11. COLLATERALIZED BANK DEPOSITS. City of Gardena ’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651. There are no limits o n the dollar amount or percentage that the City of Gardena may invest in collateralized bank deposits.

12. STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF), provided that:

• The City of Gardena may invest up to the maximum amount permitted by LAIF. • LAIF’s investments in instruments prohibited by or not specified in the City of Gardena’s policy do not exclude the investment in LAIF itself from the City of Gardena’s list of allowable investments, provided LAIF’s reports allow the Treasurer to adequately judge the risk inherent in LAIF’s portfolio.

13. LOCAL GOVERNMENT INVESTMENT POOLS (LGIPS)

9 • Permitted LGIPs comprise the following programs:
o California Asset Management Program (CAMP) Pool
o Investment Trust of California (CalTRUST)
o Los Angeles County Pooled Investment Fund (LACPIF)

14. CORPORATE MEDIUM TERM NOTES (MTNS), provided that:

• The issuer is a corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
• The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in MTNs. • No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

15. A

SSET-BACKED, MORTGAGE-BACKED, MORTGAGE PASS-THROUGH SECURITIES, AND COLLATERALIZED MORTGAGE OBLIGATIONS, provided that:

• The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
• No more than 20% of the total portfolio may be invested in these securities. • No more than 5% of the portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer. There is no issuer limitation on any Mortgage security where the issuer is the US Treasury or a Federal Agency/GSE. • The maximum legal final maturity does not exceed five (5) years.

16. M
UTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:

• MUTUAL FUNDS that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:

1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or

2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million.

3. No more than 10% of the total portfolio may be invested in shares of any one mutual fund.

b. M
ONEY MARKET MUTUAL FUNDS registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
10 1. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or

2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.

3. No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Fund.

c. No more than 20% of the total portfolio may be invested in these securities.

17. S
UPRANATIONALS, provided that:
• Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank.
• The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
• No more than 30% of the total portfolio may be invested in these securities. • No more than 10% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES

• State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. • In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. • No surplus city funds shall be invested in any repurchase agreements, reverse repurchase agreements, derivatives or noncollateralized corporate notes • Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative -interest accrual if held to maturity are permitted.
• Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
• Purchasing or selling securities on margin is prohibited. • The purchase of foreign currency denominated securities is prohibited. • The purchase of a security with a forward settlement date exceeding 45 days from the time of investment is prohibited.

XI. I

NVESTMENT POOLS/MUTUAL FUNDS

The City of Gardena shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The Treasurer shall 11 develop a questionnaire which will answer the following general questions:

1. A description of eligible investment securities, and a written statement of investment policy and objectives.

2. A description of interest calculations and how it is distributed, and how gains and losses are treated.

3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.

4. A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.

5. A schedule for receiving statements and portfolio listings.

6. Are reserves, retained earnings, etc. utilized by the pool/fund?

7. A fee schedule, and when and how is it assessed.

8. Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? XII. C

OLLATERALIZATION

CERTIFICATES OF DEPOSIT (CDS). The City of Gardena shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non -Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

C
OLLATERALIZATION OF BANK DEPOSITS. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City of Gardena shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

XIII. D

ELIVERY, SAFEKEEPING AND CUSTODY

D
ELIVERY-VERSUS-PAYMENT (DVP). All investment transactions shall be conducted on a delivery-versus-payment basis.

SAFEKEEPING AND CUSTODY. To protect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and securities in the City of Gardena’s portfolio shall be held in safekeeping in the City of Gardena’s name by a third party custodian, acting as agent for the City of Gardena under the terms of a custody agreement executed by the bank and the City of Gardena . All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. A monthly report will be received by the City of Gardena from the custodian listing all securities held in safekeeping with current market data and other information.

12 The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) money mutual funds, since the purchased securities are not deliverable.

XIV. MAXIMUM MATURITY

To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities.

The City of Gardena will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment.

XV. R

ISK MANAGEMENT AND DIVERSIFICATION

MITIGATING CREDIT RISK IN THE PORTFOLIO
Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City of Gardena will mitigate credit risk by adopting the following strategies:

• The diversification requirements included in the “Authorized Investments” s ection of this policy are designed to mitigate credit risk in the portfolio.

• No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.

• The City of Gardena may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City of Gardena’s risk preferences.

• If securities owned by the City of Gardena are downgraded by a n NRSRO to a level below the quality required by this investment policy, it will be the City of Gardena’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.

• If a security is downgraded, the Treasurer will use discretion in determining whether to sell or hold the security based on its current maturity, the econ omic outlook for the issuer, and other relevant factors.

• If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council.

ITIGATING MARKET RISK IN THE PORTFOLIO
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City of Gardena recognizes that, over time, longer -term portfolios have the potential to achieve higher returns . On the other hand, longer -term portfolios have higher volatility of return. The City of Gardena will mitigate market risk 13 by providing adequate liquidity for short -term cash needs, and by making longer -term investments only with funds that are not needed for current cash flow purposes.

The City of Gardena further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City of Gardena, therefore, adopts the following strategies to control and mitigate its exposure to market risk:

• The City of Gardena will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.

• The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.

• The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City of Gardena based on the City of Gardena’s investment objectives, constraints and risk tolerances.

XVI. REVIEW OF INVESTMENT PORTFOLIO

The Treasurer shall periodically, but no less than quarterly, review the portfolio to identify investments that do not comply with this investment policy and establish protocols for reporting major and critical incidences of noncompliance to the City Council.

XVII. P

ERFORMANCE EVALUATION

The investment portfolio shall be designed to attain a market -average rate of return throughout budgetary and economic cycles, taking into account the City of Gardena’s risk constraints, the cash flow characteristics of the port folio, and state and local laws, ordinances or resolutions that restrict investments.

The Treasurer shall monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the Treasurer’s quarterly report within 45 days after the end of the quarter. The Treasurer shall select an appropriate, readily available index to use as a market benchmark.

XVIII. R

EPORTING

ONTHLY REPORTS
Monthly transaction reports will be submitted by the Treasurer to the City Council within 30 days of the end of the reporting period in accordance with California Government Code Section 53607.

15 GLOSSARY OF INVESTMENT TERMS

AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FFCB. The Fed eral Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,” issues discount notes, bonds and mortgage pass-through securities.

GNMA. The Government National Mortgage Association, know n as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.

A
SSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.

BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions.

It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from their own position.

CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity.

The main cause of a call is a decline in interest rates. If interest rates decline, the issuer will likely call its current securities and reissue them at a lower rate of interest.

C
ALIFORNIA ASSET MANAGEMENT PROGRAM (CAMP). CAMP is a Joint Powers Authority which was established to provide local C alifornia governments with investment management services. The CAMP Pool investment option offers daily liquidity and underscores safety of principal and liquidity as the primary objectives.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate.

CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage.

CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.

COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

COLLATERALIZED BANK DEPOSIT. A bank deposit that is collateralized at least 100% (principal plus interest to maturity). The deposit is collateralized using assets set aside by the issuer such as 16 Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COLLATERALIZED TIME DEPOSIT. Time deposits that are collateralized at least 100% (principal plus interest to maturity). These instruments are collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COMMERCIAL PAPER. The short-term unsecured debt of corporations.

COUPON. The rate of return at which interest is paid on a bond.

CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for their own position.

DEBENTURE. A bond secured only by the general credit of the issuer.

DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.

D
ISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T -bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the inv estor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

D
IVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a security to changes interest rates.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.

FEDERALLY INSURED TIME DEPOSIT. A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD). These deposits are limited to funds insured in accordance with FDIC insurance deposit limits.

INVESTMENT TRUST OF CALIFORNIA (CALTRUST). CalTrust is a Joint Powers Authority formed by public agencies in California for the purposes of pooling and investing local public agency funds.

The accounts seek to attain a high -level of current income that is consistent with the preservation of principal in compliance with restrictions and limits placed by CA statue.

L
EVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds. 17 LOS ANGELES COUNTY POOLED INVESTMENT FUND (LACPIF). LACPIF is a Joint Powers Authority maintained by the Los Angeles County Treasurer and Tax Collector created for the benefit of local agencies.

MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole." MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

MARKET VALUE. The price at which a security can be traded.

MATURITY. The final date upon which the principal of a security becomes due and payable . The investment’s term or remaining maturity is measured from the settlement date to final maturity.

MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market oppor tunities or to investor preferences.

MODIFIED DURATION. The percent change in price for a 100- basis point change in yields. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

MONEY MARKET MUTUAL FUND. A mutual fund that invests exclusively in short -term securities.

Examples of investments in money market funds are certificates of deposit and U.S. Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.

MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO).

A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

N
EGOTIABLE CERTIFICATE OF DEPOSIT (CD). A short-term debt instrument that pays interest and i s issued by a bank, savings or federal association, state or federal credit union, or state -licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market.

PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market.

PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries.

In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.”
18 REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.

SECURITIES AND EXCHANGE COMMISSION (SEC). The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States.

S
ECURITIES AND EXCHANGE COMMISSION SEC) RULE 15C3-1. An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3- 1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.

STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten -year Treasury note min us the Libor rate.

Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

SUPRANATIONAL. A Supranational is a multi -national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T- bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.

TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Tr easury bonds. Like Treasury notes, they pay interest semi-annually.

YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.

City of Gardena
Gardena City Council Meeting

AGENDA REPORT SUMMARY
Agenda Item No. 12.D
Section: DEPARTMENTAL

ITEMS - ADMINISTRATIVE

SERVICES
Meeting Date: June 27, 2023

TO: THE HONORABLE MAYOR AND MEMBERS OF THE GARDENA CITY COUNCIL AGENDA TITLE:

Renew the Professional Services Agreement with Alliant Insurance Services, Inc., to provide Insurance Brokerage and Consulting Services for City Property and Casualty Program, in the amount of $491,095, for Fiscal Year beginning 2023/2024 through 2027/2028 COUNCIL ACTION REQUIRED:

Staff Recommendation: Approve the renewal of the Professional Services Agreement with Alliant Insurance Services, Inc. for Insurance Brokerage and Consulting Services RECOMMENDATION AND STAFF SUMMARY:

The City contracts with a licensed insurance broker to purchase the necessary coverage to protect the City from a variety of losses, including Liability insurance, Excess Workers Compensation, Commercial Property, Commercial Crime, Cyber Insurance Coverage and Deadly Weapon Response. The City's current insurance broker is Alliant Insurance Services, Inc. ("Alliant"). Alliant has done an excellent job in serving as the City's insurance broker since July 2018, they have saved the City significant funds while balancing risk exposure and provided the City a tailored Risk Control plan, including assessing current insurance programs, loss history and trends, management goals and objectives.

Alliant is the leading public entity broker in the country and works with over 10,000 public agencies across the country, while maintaining 98% client retention. Historically known as the preferred public agency broker in the State of California, there is no other brokerage firm with the extent of experience and clientele in California as Alliant. Over 80% of California cities are Alliant clients.

Alliant is a full-service brokerage firm with the ability, resources and expertise to meet all of our risk management and brokerage objectives. Further, Alliant has the ability to continue to provide Gardena with options that are exclusive to Alliant and thus not available through any other broker, while adequately addressing the City's insurance portfolio. As an Alliant client, the City has and will continue to have access to the largest risk sharing pool in the country where Alliant serves as the exclusive broker and marketing agent.

Alliant's proposal includes a decrease of $3,168 in fees for the 1st year compared to the fees paid in the prior year and then minimal annual increases of 3% per year for the term of the contract.

The request to renew the agreement with Alliant Insurance Services, Inc for Insurance Brokerage and Consulting Services is being made in compliance with the City's current Purchasing Policy; Section 4) (H) Professional Services and Specialized Services.

Staff recommends that the City Council authorize and approve the renewal of the Professional Services Agreement with Alliant Insurance Services, Inc. for a five (5) year period starting July 1, 2023 through June 30, 2028 at a cost of $491,095.

FINANCIAL IMPACT/COST:

Fiscal
Year
Gtrans
Fund
Workers
Compensation
Fund
Liability
Fund
Total
2023-
2024
$35,959.73
$5,309.65
$51,230.61
$92,500
2024-
2025
$37,038.53
$5,468.94
$52,767.53
$95,275
2025-
2026
$38,149.59
$5,633.00
$54,350.42
$98,133
2026-
2027
$39,294.08
$5,801.99
$55,980.94
$101,077
2027-
2028
$40,473.17
$5,976.09
$57,660.75
$104,110

Total
$190,915.09
$28,189.67
$271,990.24
$491,095
ATTACHMENTS:

PSA - City of Gardena Alliant - 6_7_23 SIGNED.pdf

APPROVED:
___________________________________
Clint Osorio, City Manager
Consultant Agreement with Alliant Insurance Services, Inc. Page 1

AGREEMENT BETWEEN THE

CITY OF GARDENA AND
ALLIANT INSURANCE SERVICES, INC.

This contract, hereinafter referred to as “Agreement” is entered into this 1st day of July, 2023, by and between THE CITY OF GARDENA (“City”) and ALLIANT INSURANCE SERVICES, a California Corporation (“Consultant”). Based on the mutual promises and covenants contained herein, the Parties hereto agree, as follows.

1. Recitals.

A. Whereas, City requires the services of a profess ional to provide brokerage and consulting services for City Property and Casualty Program; and

B. Whereas, Consultant has represented that it is q ualified by virtue of experience, training, education and expertise to provide these services; and

C. Whereas, City has determined that the public int erest, convenience and necessity require the execution of this Agreement.

D. WHEREAS, no official or employee of City has a f inancial interest, within the provisions of sections 1090-1092 of the California Government Code, in the subject matter of this Agreement.

2. Services.

A. The services to be performed by Consultant shall consist of the following (“Services”): As specified in Exhibit “A ”, attached hereto and incorporated herein by reference, unless otherwise instructed by City.

B. The Services shall be performed in accordance wi th the Project Schedule set forth in Exhibit A . Consultant shall not be liable for any failure or delay in furnishing proposed Services resulting from fire, explosion, flood, storm, Act of God, governmental acts, orders or regulations, hostilities, civil disturbances, strikes, labor difficulties, difficulty in obtaining parts, supplies, or shipping facilities, inability to obtain or delays in obtaining suitable material or facilities required for performance, temporary unavailability of qualified personnel, failure by City to provide appropriate access to information, records, equipment or personnel, or other causes beyond Consultant’s reasonable control.

3. Additional Services. If City determines that add itional Services are required to be provided by Consultant in addition to the Services set forth above, City shall authorize Consultant to perform such additional Services in writing (“Additional Services”). Such Additional Services shall be speci fically described and approved by City in writing prior to the performance thereof. C onsultant shall be compensated for such Additional Services in accordance with the amount agreed upon in writing by the Parties. No compensation shall be paid to Consultan t for Additional Services which are Consultant Agreement with Alliant Insurance Services, Inc. Page 2 not specifically approved by City in writing.

4. Consultant’s Proposal. This Agreement shall incl ude Consultant’s proposal or bid which is incorporated herein as Exhibit A . In the event of any inconsistency between the terms of the proposal and this Agreement, this Agreement shall govern.

5. Timing of Performance. Time is of the essence wi th respect to Consultant’s performance of the Services required by this Agreement. Consultant shall diligently and timely pursue and complete the performance of the Services required of it by this Agreement as set forth in Exhibit A. City, in its sole discretion, may extend the time for performance of any Service.

6. Compensation. Compensation for the Services shal l be billed as set forth in Exhibit A , attached hereto. The Compensation is inclusive of all costs that may be incurred by Consultant in performance of the Services, including but not limited to such items as travel, copies, delivery charges, phone charges, and facsimile charges, unless otherwise noted.

7. Term of Agreement/Termination. This Agreement sh all commence on the Effective Date and continue for a period of five (5) years, ending on June 30, 2028, unless previously terminated as provided herein or as otherwise agreed to in writing by the parties.

A. This Agreement shall be effective as of the date of execution by the City and shall remain in effect until all Services are completed or until terminated as provided for herein.

B. City may terminate this Agreement without cause by providing written notice to Consultant not less than ten days prior to an effective termination date. City’s only obligation in the event of termination will be payment of fees and allowed expenses incurred up to and including the effective date of termination.

C. Unless for cause, Consultant may not terminate t his Agreement. If Consultant is terminating this Agreement for cause, it must provide the City with thirty (30) days written notice.

D. Upon receipt of a termination notice, Consultant shall: (1) promptly discontinue all Services, unless the notice directs otherwise; and (2) within ten (10) days, deliver to City all files, data, reports, estimates, summaries, and such other information and materials as may have been accumulated or prepared to date by Consultant in performing the Services under this Agreement, whether completed or in progress. Consultant shall provide these documents by both hard copy and in electronic format if available. In the event of ter mination for other than cause attributable to Consultant, Consultant shall be entitled to reasonable compensation for Consultant Agreement with Alliant Insurance Services, Inc. Page 3 the Services it performs up to the date of termination and shall be deemed released from liability for any work assigned but not completed as of the effective date of termination.

8. Agreement Administrator. For purposes of this Ag reement, City designates Ray Beeman, Director of Administrative Services or designee as the Agreement Administrator who shall monitor Consultant’s performance under this Agreement.

Consultant shall be notified in writing of any deficiency in the performance of this Agreement in a timely manner by Agreement Administrator Consultant shall have five (5) business days from receipt of the notification to cure any deficiency to the reasonable satisfaction of the Agreement Administrator. All costs for such corrections shall be borne by Consultant and shall not increase Consultant’s fees due hereunder.

Should the Agreement Administrator determine that Consultant has not performed its obligation as stated in this Agreement in a satisfactory manner, City may terminate this Agreement for cause as specified in Section- Term of Agreement/Termination. All notices, invoices or other documents shall be addressed to the Agreement Administrator, as well as all substantive issues relating to this contract. City reserves the right to change this designation upon written notice to Consultant.

9. Invoices and Payments.

A. Payment shall be made upon receipt and approval of invoices for Services rendered. In order for payment to be made, Consulta nt’s invoice must include an itemization as to the services rendered, date(s) of service, direct and/or subcontract costs, and be submitted on an official letterhead or invoice with Consultant’s name, address, and telephone number referenced.

B. The Agreement Administrator shall review the inv oices to determine whether services performed and documents submitted are consistent with this Agreement. Payment shall be made within forty-five (45) days following receipt of the invoice or the Agreement Administrator shall provide Consultant with a written statement objecting to the charges and stating the reasons therefore.

C. Payment by City under this Agreement shall not b e deemed a waiver of defects, even if such defects were known to City at the time of payment.

10. Records/Audit.

A. Consultant shall be responsible for ensuring acc uracy and propriety of all billings and shall maintain all supporting documentation for a minimum of three (3) years from the completion date of the Services under this agreement the following records:

1. All accounts and records, including personnel, property and financial, adequate to identify and account for all costs pertaining to this Agreement and assure proper accounting for all funds;
Consultant Agreement with Alliant Insurance Services, Inc. Page 4

2. Records which establish that Consultant and any subconsultant who renders Services under this Agreement are in full compliance with the requirements of this Agreement and all federal, state and local laws and regulations

3. Any additional records deemed necessary by City to assume verification of full compliance with this Agreement.

B. City shall have the right to audit Consultant’s invoices and all supporting documentation for purposes of compliance with this Agreement for a period of three years following the completion of Services under this Agreement.

C. Upon reasonable notice from City or any other go vernmental agency, Consultant shall cooperate fully with any audit of its billings conducted by, or of, City and shall permit access to its books, records and accounts as may be necessary to conduct such audits.

11. Successors and Assignment. This Agreement cover s professional services of a specific and unique nature. Except as otherwise pro vided herein, Consultant shall not assign or transfer its interest in this Agreement or subcontract any services to be performed without amending this Agreement. This Agr eement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto.

12. Change in Name, Ownership or Control. Consultan t shall notify the Agreement Administrator, in writing, of any change in name, more than fifty percent (50%) ownership or control of Consultant’s firm or subconsultant. Change of ownership or control of Consultant’s firm may require an amendment to the Agreement.

13. Key Personnel. City has relied upon the profess ional training and ability of Consultant to perform the Services hereunder as a material inducement to enter into this Agreement. Consultant shall provide properly s killed professional and technical personnel to perform all Services under this Agreement. In the event that City, in its sole discretion, at any time during the Agreement, desires the removal of any person or persons assigned by Consultant to perform Services pursuant to this Agreement, Consultant shall remove any such person immediately upon receiving notice from City.

14. Performance By Consultant. Consultant shall mai ntain or exceed the level of competency presently maintained by other similar practitioners in the State of California, for professional and technical soundness, accuracy and adequacy of all work, advice and material furnished under this Agreement.

15. Use of Materials.

A. City shall make available to Consultant such mat erials from its files as may be required by Consultant to perform Services under this Agreement. Such materials shall remain the property of City while in Consultant’s possession. Upon termination of this Agreement and payment of outstanding invoices of Consultant, or Consultant Agreement with Alliant Insurance Services, Inc. Page 5 completion of work under this Agreement, Consultant shall return to City any property of City in its possession and any calculations, notes, reports, electronic files, or other materials prepared by Consultant in the course of performance of this Agreement.

B. City may utilize any material prepared or work p erformed by Consultant pursuant to this Agreement, including computer software, in any manner, which City deems proper without additional compensation to Consultant. Consultant shall have no responsibility or liability for any revisions, changes, or corrections made by City, or any use or reuse pursuant to this paragraph unless Consultant accepts such responsibility in writing.

16. Nonuse of Intellectual Property of Third Partie s. Consultant shall not use, disclose or copy any intellectual property of any third parties in connection with work carried out under this Agreement, except for intellectual property for which Consultant has a license. Consultant shall indemnify and hold City harmless against all claims raised against City based upon allegations that Consultant has wrongfully used intellectual property of others in performing work for City, or that City has wrongfully used intellectual property developed by Consultant pursuant to this Agreement.

17. Ownership of Work Product. All documents or oth er information created, developed, or received by Consultant, exclusively for the City in connection with and pursuant to this Agreement, shall, for purposes of copyright law, be deemed works made for hire for City by Consultant and shall be the sole property of City. Consultant shall provide City with copies of these items upon demand, and in any event, upon termination of this Agreement.

18. Confidentiality Clause. Consultant acknowledges that some of the material and information that may come into its possession or knowledge in connection with this Agreement or its performance may consist of information that is exempt from disclosure to the public or other unauthorized persons under either state or federal statutes ("Confidential Information"). Confidential Information includes, but is not limited to, names, addresses, Social Security numbers, e-mail addresses, telephone numbers, financial profiles, credit card information, driver's license numbers, medical data, law enforcement records, agency source code or object code, agency security data, or information identifiable to an individual that relates to any of these types of information. “Confidential Information” does not include: (i) information that is or becomes public other than as a result of a breach of this Agreement by Consultant or its Representatives; (ii) information that is independently developed by Consultant or any of its Representatives (defined below) without use of Confidential Information; (iii) information that is lawfully known by Consultant without any known obligation of confidentiality or other restriction on use or disclosure, prior to the disclosure of the information by the City; and (iv) information that becomes available to Consultant from a third party whom, to Consultant’s knowledge, is not prohibited from transmitting such information by a contractual, legal, or fiduciary obligation to the City. Consultant agrees to hold Confidential Information in strictest confidence and not to make use of Confidential Information for any purpose other than the performance of this Agreement, to release it only to authorized employees, or Sub-consultants requiring such Consultant Agreement with Alliant Insurance Services, Inc. Page 6 information for the purposes of carrying out this Agreement, and not to release, divulge, publish, transfer, sell, disclose, or otherwise make the information known to any other party without City's express written consent or as provided by law. Consultant agrees to release such information or material only to employees or Sub-consultants who have signed a nondisclosure agreement, the terms of which have been previously approved by City. Consultant agrees to implement physical, electronic, and managerial safeguards to prevent unauthorized access to Confidential Information.

"Personal information" including, but not limited to, "Protected Health Information" (PHI) under Health Insurance Portability And Accountability Act (HIPAA), individuals' names, addresses, phone numbers, birth dates, and social security numbers collected, used, or acquired in connection with this Agreement shall be protected against unauthorized use, disclosure, modification or loss.

HIPAA establishes national minimum standards for the use and disclosure of certain health information. The Consultant must comply with all HIPAA requirements and rules when determined applicable by the City. If City determines that (1) City is a "covered entity" under HIPAA, and that (2) Consultant will perform "business associate" services and activities covered under HIPAA, then at City's request, Consultant agrees to execute City's Agreement in compliance with HIPAA.

Consultant shall ensure its directors, officers, employees, Sub-consultants or agents use personal information solely for the purposes of accomplishing the services set forth herein. Consultant and its Sub-consultants agree not to release, divulge, publish, transfer, sell or otherwise make known to unauthorized persons personal information without the express written consent of the City or as otherwise required by law.

Notwithstanding anything to the contrary herein this §18, Consultant is also authorized to disclose City ’s Confidential Information and Personal Information to insurers, underwriters, and other recognized insurance intermediaries and administrators solely as needed to perform the Services; provided, however, that Consultant shall first inform such recipients of the confidential nature of the information.

Any breach of this provision may result in termination of the Agreement and demand for return of all personal information. Moreover, Consu ltant will indemnify and hold the City harmless from and against all losses and damages resulting from any unauthorized or improper disclosure, dissemination or use of the information as a result, in whole or in part, of Consultant’s action or inaction.

19. Legal Requirements.

A. Consultant shall secure and maintain all license s or permits required by law, including a City business license, and shall comply with all ordinances, laws, orders, rules, and regulations pertaining to the work.

B. Consultant warrants that it shall perform the Se rvices required by this Agreement in compliance with all applicable Federal and California employment laws, including, but not limited to, those laws related to minimum hours and wages; Consultant Agreement with Alliant Insurance Services, Inc. Page 7 occupational health and safety; fair employment and employment practices; workers’ compensation insurance and safety in employment; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement. Consultant shall indemnify and hold harm less City from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description including attorneys’ fees and costs, presented, brought, or recovered against City for, or on account of any liability under any of the above-mentioned laws, which may be incurred by reason of Consultant’s performance under this Agreement.

C. Consultant covenants that there shall be no disc rimination based upon race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry, or any other category forbidden by law in performance of this Agreement.

20. Conflict of Interest and Reporting.

A. Consultant shall at all times avoid conflicts of interest or the appearance of a conflict of interest in the performance of this Agreement. If required, Consultant shall comply with the City’s Conflict of Interest reporting requirements. Consultant understands that pursuant to Gardena Municipal Code sections 2.24.020H and

2.24.025G, it is forbidden to make any contribution to a candidate or committee of a candidate for a municipal office of the City, or to an officeholder, until the completion of Services to be performed under this Agreement.

B. Consultant and its representatives shall refrain from lobbying City of Gardena officials, employees and representatives for the duration of this Agreement.

21. Guarantee and Warranty. Consultant warrants to City that the material, analysis, data, programs and Services to be delivered or rendered hereunder will be of the kind and quality designated and will be performed by qualified personnel. Without waiver of City’s other rights or remedies, City may require Consultant to re-perform any of said Services, which were not performed in accordance with these standards. Consultant shall perform the remedial Services at its sole expense.

22. Insurance.

A. Commencement of Work. Consultant shall not comme nce work under this Agreement until it has obtained City approved insurance. Before beginning work hereunder, during the entire period of this Agreement, for any extensions hereto, and for periods after the end of this Agreement as may be indicated below, Consultant must have and maintain in place all of the insurance coverage required in this Section.

Consultant’s insurance shall comply with all items specified by this Agreement. Any subcontractors shall be subject to all of the requirements of this Section and Consultant shall be responsible to obtain evidence of insurance from each subcontractor and provide it to City before the subcontractor commences work. Alternatively, Consultant’s insurance may cover all subcontractors.

B. Insurance Company Requirements. All insurance po licies used to satisfy Consultant Agreement with Alliant Insurance Services, Inc. Page 8 the requirements imposed hereunder shall be issued by insurers admitted to do business in the State of California. Insurers shall have a current Best’s rating of not less than A-:VII, unless otherwise approved by City.

C. Coverage, Limits and Policy Requirements. Consul tant shall maintain the types of coverage and limits indicated below:

1. Commercial General Liability Insurance - a policy for occurrence coverage for bodily injury, personal injury and property damage, with coverage at least as broad as Insurance Services Office Form CG 00 01 with no special limitations affecting City. The limit for all coverage under this policy shall be no less than one million dollars ($1,000,000.00) per occurrence.

Consultant Agreement with Alliant Insurance Services, Inc. Page 9

2. Commercial Auto Liability Insurance - a policy with coverage at least as broad as Insurance Services Office form CA 0001 including Symbol 1 (any auto) with no special limitations affecting City. The limit for bodily injury and property damage liability shall be no less than one million dollars ($1,000,000.00) per accident.

3. Policy Requirements. The policies set forth above shall comply with the following, as evidenced by the policies or endorsements to the policies:

a. The City, its appointed and elected officers, em ployees, agents and volunteers shall be added as additional insured to the policy.

b. The insurer shall agree to provide City with thi rty (30) days prior written notice, return receipt requested, of any cancellation, non-renewal or material change in coverage.

c. For any claims with respect to the Services cove red by this Agreement, Consultant’s insurance coverage shall be primary insurance as respects the City, its elected and appointed officers, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its elected and appointed officers, employees, agents and volunteers shall be excess of Consultant’s insurance and shall not contribute with it.

4. Worker’s Compensation and Employer’s Liability Insurance - a policy which meets all statutory benefit requirements of the Labor Code, or other applicable law, of the State of California. The min imum coverage limits for said insurance shall be no less than one million dollars per claim. The policy shall be issued by an insurance company which is admitted to do business in the State of California and shall contain a clause that the policy may not be canceled without thirty (30) days prior written notice, return receipt requested, is mailed to City.

5. Professional Errors & Omissions - a policy with minimum limits of one million dollars ($1,000,000.00) per claim and aggregate. This policy shall be issued by an insurance company which is admitted to do business in the State of California and Consultant shall provide thirty (30) days prior written notice of cancelation to the City.

D. Additional Requirements. The procuring of such r equired policies of insurance shall not be construed to limit Consultant’s liability hereunder or to fulfill the indemnification provisions and requirements of this Agreement. There shall be no recourse against City for payment of premiums or other amounts with respect thereto.

City shall notify Consultant in writing of an Amendment in the insurance requirements; w here commercially available, economically feasible, and based on the nature of the risk, prior experience, or other special circumstance Consultant shall obtain the required insurance coverage. Approval of the Amendment shall be within a reasonable amount of days of receipt of such notice.

Consultant Agreement with Alliant Insurance Services, Inc. Page 10 E. Deductibles. Any deductible or self-insured rete ntion over $25,000 per occurrence must be declared to and approved by City. Any deductible exceeding an amount acceptable to City shall be subject to the following changes: either the insurer shall eliminate or reduce such deductibles or self-insured retentions with respect to City, its officers, employees, agents and volunteers (with additional premium, if any, to be paid by Consultant); or Consultant shall provide satisfactory financial guarantee for payment of losses and related investigations, claim administration and defense expenses.

F. Verification of Compliance. Consultant shall fur nish City with original policies or certificates and endorsements effecting coverage required by this Agreement. The endorsements are to be signed by a p erson authorized by the insurer to bind coverage on its behalf. All endorsements ar e to be received and approved by City before work commences. Upon the expiration date of any policy of insurance required by this Agreement, Consultant shall deliver to City a binder or certificate of insurance with respect to each renewal policy,. Con sultant shall provide full copies of any requested policies to City within three (3) days of any such request by City.

G. Termination for Lack of Required Coverage. If Co nsultant, for any reason, fails to have in place, at all times during the term of this Agreement, including any extension hereto, all required insurance and coverage, City may immediately obtain such coverage at Consultant’s expense and/or terminate this Agreement.

23. Indemnity.

A. Consultant assumes all risk of injury to its emp loyees, agents, and contractors, including loss or damage to property.

B. Consultant agrees to defend, indemnify, hold fre e and harmless the City, its elected officials, officers, agents, employees and volunteers, at Consultant’s sole expense, from and against any and all claims, actions, suits or other legal proceedings brought against the City, its elected officials, officers, agents, employees and volunteers arising out of the performance of the Consultant, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Consultant, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Consultant, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected officials, officers, agents, employees and volunteers based upon the work performed by the Consultant, its employees, and/or authorized subcontractors under this Agreement, whether or not the Consultant, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable.

C. Notwithstanding the foregoing, the Consultant sh all not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out Consultant Agreement with Alliant Insurance Services, Inc. Page 11 of the sole negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained either in the City’s specifications or Consultant’s Proposal, which shall be of no force and effect.

D. No official, employee, agent or volunteer of Cit y shall be personally liable for any default or liability under this Agreement.

24. Independent Contractor. Consultant agrees to fu rnish consulting services in the capacity of an independent contractor and neither C onsultant nor any of its employees shall be considered to be an employee or agent of City.

25. PERS Eligibility Indemnification. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing Services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of it s employees, agents, and subcontractors providing service under this Agreeme nt shall not qualify for or become entitled to, and hereby agree to waive any claims t o, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribu tion to be paid by City for employer contribution and/or employee contributions for PERS benefits.

26. Notices. Any notice or communication given unde r this Agreement shall be effective when deposited, postage prepaid, with the United States Postal Service and addressed to the contracting parties. Name, address, telephone and facsimile numbers of the parties are as follows:

City of Gardena:
1700 West 162nd Street
Gardena, California 90247-3732
Attn: Ray Beeman
Title Director of Administrative Services
Email: [email protected]
Telephone: (310) 217-9502

To Consultant:

Alliant Insurance Services, Inc.
18100 Von Karman Ave 10
th Floor
Irvine, CA 92612
Consultant Agreement with Alliant Insurance Services, Inc. Page 12 Attn: Courtney Ramirez, Senior Vice President
Email: [email protected]
Telephone: (949) 660-8133

Either party may change the information to which notice or communication is to be sent by providing advance written notice to the other party.

27. Severability. If any provision of this Agreemen t shall be held illegal, invalid, or unenforceable, in whole or in part, such provision shall be modified to the minimum extent necessary to make it legal, valid, and enforceable, and the legality, validity, and enforceability of the remaining provisions shall not be affected thereby.

28. Jurisdiction and Venue. This Agreement shall be deemed a contract under the laws of the State of California and for all purposes shall be interpreted in accordance with such laws. Both parties hereby agree and consent to the exclusive jurisdiction of the courts of the State of California and that the venue of any action brought hereunder shall be Los Angeles County, California.

29. Waiver. No delay or failure by either Party to exercise or enforce at any time any right or provision of this Agreement shall be considered a waiver thereof or of such Party’s right thereafter to exercise or enforce each and every right and provision of this Agreement. To be valid a waiver shall be in writing but need not be supported by consideration. No single waiver shall constitute a continuing or subsequent waiver.

30. Entire Agreement. This Agreement contains the e ntire understanding between City and Consultant. Any prior agreement, promises, negotiations or representations not expressly set forth herein are of no force or effect. Subsequent modifications to this Agreement shall be effective only if in writing and signed by both parties. This Agreement may be signed by the parties hereto in separate counterparts, including both counterparts that are executed on paper and counterparts that are in the form of electronic signatures. Electronic signatures include facsimile or email electronic signatures. Each executed counterpart shall be deemed an original. All counterparts, taken together, constitute the executed Agreement.

31. The parties hereby acknowledge and agree that e lectronic records and electronic signatures, as well as facsimile signatures, used in connection with the execution of this Agreement and electronic signatures, facsimile signatures or signatures transmitted by electronic mail in so-called pdf format shall be legal and binding and shall have the same full force and effect as if a paper original of this Agreement had been delivered and had been signed using a handwritten signature. City and Consultant (i) agree that an electronic signature, whether digital or encrypted, of a party to this Agreement is intended to authenticate this writing and to have the same force and effect as a manual signature, (ii) intend to be bound by the signatures (whether original, faxed or electronic) on any document sent or delivered by facsimile or, electronic mail, or other electronic Consultant Agreement with Alliant Insurance Services, Inc. Page 13 means, (iii) are aware that the other party will reply on such signatures, and (iv) hereby waive any defenses to the enforcement of the terms of this Agreement based on the foregoing forms of signature. If this Agreement has been executed by electronic signature, all parties executing this document are expressly consenting under the United States Federal Electronic Signatures in Global and National Commerce Act of 2000 ("E-SIGN") and California Uniform Electronic Transactions Act ("UETA")(Cal. Civ.

Code § 1633.1, et seq.), that a signature by fax, email or other electronic means shall constitute an Electronic Signature to an Electronic Record under both E-SIGN and UETA with respect to this specific transaction.

32. Joint Drafting. Each party acknowledges that it has had an adequate opportunity to review each and every provision in this Agreement and to submit the same to counsel and other consultants for review and comment and that the parties jointly drafted this Agreement. No provision of this Agreement or any Assignment shall be construed more strictly against one party than the other party by reason that one or the other party proposed, drafted or modified such provision or any other existing or proposed provision.

33. Public Records Act Disclosure. Consultant has b een advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Consultant, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code section 6250 et seq .). Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in the California Government Code section 6254.7, and of which Consultant informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the Court.

34. Authority to Execute. The persons executing thi s Agreement on behalf of the parties warrant that they are duly authorized to execute this Agreement.

35. Attorney’s Fees. In the event that legal action is necessary to enforce the provisions of this Agreement, or to declare the rights of the parties hereunder, the parties agree that the prevailing party (as used herein “prevailing party” means: (i) in the case of the party initiating the enforcement of rights or remedies, that it recovered on substantially all of the claims; and, (ii) in the case of the party defending against such enforcement, that it successfully defended against substantially all of the claims made against it; in the legal action shall be entitled to recover reasonable attorney’s fees and court costs from the opposing party.

36. Section Headings. The Section headings used in this Agreement are for reference purposes only and shall have no binding effect.

Consultant Agreement with Alliant Insurance Services, Inc. Page 14

37. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.

IN WITNESS WHEREOF, the parties have hereunto affixed their names as of the day and year written below.

“City” “Consultant”
City of Gardena Alliant Insurance Services, Inc.

By: By:

Tasha Cerda, Mayor Courtney Ramirez, Senior Vice President

Date: Date: June 10, 2023

By:

Daniel Howell, Managing Director

Date: June 10, 2023

ATTEST:

Mina Semenza, City Clerk

APPROVED AS TO FORM:

Carmen Vasquez, City Attorney
Daniel Howell

EXHITBIT A

City of Gardena, CA

Proposal for Brokerage & Consulting Services

April 28, 2023

Alliant Insurance Services, Inc.
18100 Von Karman Ave., 10 th Floor, Irvine, CA 92612
License #0C36861 | www.alliant.com

April 26, 2023

Attn: Raymond Beeman

Proposal to City of Gardena
for Brokerage and Consulting Services for City Property and Casualty Program

Dear Mr. Beeman,

Alliant Insurance Services, Inc. (Alliant) would like to express our appreciation for the opportunity to provide a proposal to the City of Gardena (City) for Brokerage and Consulting Services. We believe that our response will highlight both the depth of our experience in the design and placement of property and casualty insurance programs as well as our desire to continue our partnership with the City.

Alliant is the leading public entity broker in the country. We work with over 10,000 public agencies across the country, including the City. We are proud of our history as a specialty broker and our reputation as an aggressive, innovative public agency resource as we work daily to meet our clients’ needs. We continue to add expert resources and creative program alternatives, garnering recognition as a premier public entity brokerage firm.

We hope that our response shows that Alliant is prepared to meet the City’s needs.

Our clients are our best measures of success. We would be happy to provide the City with a list of client references.

Best Regards,

Courtney Ramirez
Senior Vice President
949-660-8133 (Direct)
[email protected]

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Alliant Insurance Services, Inc.
18100 Von Karman Ave., 10 th Floor, Irvine, CA 92612
CA License No. 0C36861 | alliant.com

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TABLE OF CONTENTS

Proposal Submittals ............................................................................................................................ 04 Executive Summary ......................................................................................................................................................... 04 Authorized Negotiator ................................................................................................................................................... 06 Proposer Experience ....................................................................................................................................................... 07 Proposed Staff ................................................................................................................................................................... 11 Claims Advocacy............................................................................................................................................................... 14 Risk Control/Risk Management Services ................................................................................................................. 17 Marketing Plan .................................................................................................................................................................. 30 Price Proposal .................................................................................................................................................................... 40 Appendix ............................................................................................................................................. 41 A. Alliant California License
B. Service Team Resumes
C. Alliant Disclosures

RESPONSE TO RFP FOR BROKERAGE & CONSULTING SERVICES
CITY OF GARDENA, CA | APRIL 28, 2023
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PROPOSAL SUBMITTALS

Alliant is a full-service insurance brokerage firm with the ability, resources and expertise to contin ue our partnership with the City to meet all of its ri sk management and brokerage objectives. Over the past 40+ years, we have grown to become the leading broker for public entities throughout California and across the United States due to a firm culture that emphasizes customer service and public entity specific expertise . Our success has come from taking a focused, consultative approach, which we will apply in our relationship with the City.

Our thorough understanding of municipality business, along with our experience in serving California Public Entities – combined with our focus on developing innovative programs which meet the special needs of public entities – ensures that the City will benefit from the most comprehensive service in the industry.

We understand how public entities are perceived wit hin the insurance marketplace and how the operating environment of this sector shapes the ris k transfer approach and requirements of these organizations. From group purchase programs and ris k-sharing pools to risk retention and non- insurance approaches, we have long been at the fore front of program design for the public entity sector.

In our response, we will demonstrate numerous areas that we will bring significant value to the City. Alliant/City of Gardena partnership highlights include:

Dedicated Public Entity Practice – At Alliant we are proud of our long industry tenu re and leading position in serving our Public Entity c lients in California (and the U.S.). We continue to heavily invest in this sector and have a highly experienced team of more than 300 associates that are exclusively dedicated to the public entity community.

Exclusive Options Only Alliant Can Deliver – We have expertise and exclusive programs to address the City’s insurance portfolio. We have the ability to provide our clients with options that are exclusive to Alliant and thus not available through any other broker – our group purchase programs and the programs from the P ublic Risk Innovation, Solutions, and Management (PRISM) . A primary example is our property program which the City is a participant of. The Alliant Pro perty Insurance Program (APIP) is the world’s largest single property placement that specializes in public entity exposures.

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Executive Summary

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PROPOSAL SUBMITTALS

Hyper Focused Service – We will thoroughly understand the City’s operations, goals, risk profile and exposures. We will embrace the service commitment associated with the City and exceed your expectations in every engagement.

Industry Leading Analytics – Alliant’s analytic tools will provide the City wi th clear projected results that will give you the knowledge and insight you need to make informed decisions regarding all aspect of your program.

Collaborative Marketing Approach that Enhances Mark et Relationships – The City and Alliant will develop proactive, long term strat egic planning and goals. We will embrace and foster strong relationships in the insurance market that will provide stable and supportive program options.

Global Market Access – Our unique structure allows us unencumbered access the global insurance market through the utilization of the very best resources and intellectual capital available in the industry. Our premium volume of municipal excess liability, property and excess workers’ compensation business is the result of having one of the largest public entity client bases. Our negotiating strength stems from this large volume and high- quality portfolio.

Unwavering Commitment to Superior Claims Advocacy – Through our seasoned team of claims professionals, we will drive successful outcomes and recoveries associated with catastrophic losses. This will also involve pre-loss planning and constant communication with all stakeholders during all phases of a catastrophic event.

We consider ourselves fortunate to have such a well-developed public entity practice, and as such, to be in a position to add considerable value to the delivery of services to the public sector.

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PROPOSAL SUBMITTALS

The proposed team leader for this project is Courtney Ramirez and she is authorized to negotiate terms and render binding decisions on contract matters.

Courtney Ramirez, Senior Vice President
18100 Von Karman Ave., 10
th Floor, Irvine, CA 92612
949-660-8133 (Direct)
[email protected]

Courtney is currently the Lead broker for the City’ s property and casualty program, and has worked with the City in this capacity since 2018. Courtney is the broker for many municipalities in Californi a and across the nation. She is intimately familiar w ith the complexity that the City account brings.

Courtney will be supported by a large team of coverage area experts. Courtney’s detailed resume can be found in Appendix B , along with those for the entire proposed team.

Authorized Negotiator

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Alliant was established in 1925 in San Diego, California as the Robert F. Driver Company. Today, Alliant is a privately held corporation headquartered in Irvine, California. As a firm, we are the largest specialty broker in the country, with our entire focus on sel ected industry segments including public entity, education, construction, real estate, healthcare, t ribal nations, hospitality, non-profits, and legal professionals. Business Insurance ranks Alliant as the fifth largest privately held broker.

Our entrepreneurial approach is what makes Alliant different from all other brokers. We focus exclusively on what we do best, which is broking an d risk management consultation. Our business model eliminates geographic boundaries and regional profit centers. There are no financial restrictions in deploying the best expertise for clients. We wil l collaboratively identify which resources will hel p drive the best possible results for the City. Our g oals, as a firm, are reflected in our results which are based upon:
› A client-first service model
› No manufactured corporate/overhead expenses
› No geographic conflicts
› Industry innovation through proprietary technology products › Flat management structure
› Competitive advantage with specialty market expertise › Attraction and retention of high-quality, experienced talent

These guiding principles have allowed our firm to r ecognize an industry leading 98% client retention rate.

At Alliant, we believe our clients deserve to work with individuals who specialize in their respective sectors. In addition, we believe the insurance markets respond better to brokers that are experts in their given fields. With this in mind, Alliant establishe d its Public Entity Practice over 40 years ago with the goal of providing highly successful strategies, ser vices, and products for the public sector. Over the past four decades, this dedication and focus has grown into a robust industry leading practice that is globally recognized in supporting large complex programs for clients with significant catastrophe prone exposures. In fact, Alliant is proud to state that we place the world’s largest property program that consist of total insured values in excess of $500b with significant catastrophic exposure from the perils of wind, flood, earthquake, hail, wildfire and terrorism.

Proposer Experience

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The Alliant Public Entity practice consists of more than 300 colleagues across the country who exclusively spend their time engaged with Public Entities. This highly skilled team represent s over 10,000 clients and places in excess of $20B of premium into the ma rket. This large network of highly talented specialists allows us to deliver the absolute best possible resources to our clients for their unique needs.

The Alliant Public Entity team based in Irvine, CA, will serve as your local service team. Given the team’s experience wit h Cities of similar size and exposures as the City and their knowledge of California Public Entity Risks, we believe we are uniquely qualified to serve your brokerage needs. This team will provide the best re sources and experts in marketing, analytics, reinsurance, alternative risk financing, program design, disaster preparedness and recovery, risk control and claims management. Core members of your proposed se rvice team have worked together for over 17 years and have had the privilege of working with numerous public entity clients with programs of similar size and complexity to that of the City. This team has the distinct honor of having several members recognized by Risk and Insurance magazine as one of the world’s top Power Brokers.

Historically known as the preferred public entity b roker in the State of California, there is no other brokerage firm with the extent of experience and clientele in California as Alliant. We have expanded our reach and have been selected to provide broker services for entities located from Alaska to Florida to Maine (48 states in all) where we now provide our resources and expertise. These clients include:
› Over 80% of the cities in California, including Ana heim, Burbank, Carson, Compton, Corona, Gardena, Long Beach, Los Angeles, Manhattan Beach, Oakland, Ontario, Pasadena, Redondo Beach, Sacramento, San Diego, San Francisco, San Jose, Santa Clara, Santa Monica, and many others.
› CSAC EIA/PRISM (the largest public entity pool in t he nation, which includes participation by all but two counties in California), numerous munic ipalities, school districts, joint powers agencies, and pools.
› Over 1,000 special districts, authorities, agencies, and airports including Los Angles World (LAX), San Francisco International (SFO), Ontario International (ONT), Santa Ana/John Wayne Airport (SNA) and Sacramento International (SMF).
› 14 State governments including: State of California, State of Nevada, and State of Washington. › Over 60 joint powers authorities or pools across th e country including: ACCEL (Authority for California Cities Excess Liability), BICEP (Big Ind ependent Cities Excess Pool – in “run off”), CARMA (California Affiliated Risk Management Author ity), CJPIA (California Joint Powers Insurance Authority), CalTIP (California Transit In demnity Pool), PERMA (Public Entity Risk Management Authority), Arizona School Risk Retention Trust, Virginia Municipal League (VML), WSTIP (Washington State Transit Insurance Pool), LA RM (League Association of Risk Management) and LGIT (Local Government Insurance Trust), to name a few.

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Many brokers and insurers have shown varying levels of commitment to the public entity sector. We believe the development of successful public entity programs demonstrates Alliant’s long-term commitment and unmatched level of experience specif ic to the City’s needs. Our interest in maintaining these programs and developing additional solutions shows a long-term vision and focus that our competitors lack. We recognize how the ope rating environment of the public sector shapes the risk transfer attitudes and needs of your organization.

Service Standards
We take the servicing of our accounts very seriousl y. As such, we have established various resources that ensure the quality of service we provide to ou r clients. We are committed to providing the City with quality customer service and have outlined some of our service standards below.

CUSTOMER SERVICE PRODUCT CUSTOMER SERVICE DELIVERY BENCHMARK

Phone calls returned
Phone calls received in the morning returned in the
morning. Calls received in the afternoon returned in the afternoon
E-mails returned Review regularly (morning and afternoon) and respond within 24 hours to acknowledge receipt
Summons and complaint Upon receipt or prior to end of business day Claim first report to carrier Immediate or no later than prior to end of business, even if complete data is not available
Claim follow up with carrier and
client Within 24 hours of first report of loss
Open activities/suspense Daily
Pre-renewal letters to client 100 days prior to expiration Renewal business applications to
market 90 days prior to expiration

Binders
Same day coverage is bound. If wholesale broker issued, advise client written confirmation of coverage is on its way
Agency bill binder billing 10 business days’ notification prior to binding Certificates Within 24 hours of receipt into the City
Renewal Certificates, Binders,
Invoices, & Auto ID Cards delivered
No later than 2 business days after all binding documents are received by Alliant from insurers, but in no event later than 2 business days prior to policy inception
Policy reviewed for accuracy Within 10 days from receipt

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CUSTOMER SERVICE PRODUCT CUSTOMER SERVICE DELIVERY BENCHMARK Policy delivered to client Within 10 days from receipt
Summary of Insurance Annually
Endorsements delivered to client Within 24 hours of receipt into the City Agency bill additional and return
premium endorsements Within 5 days of receipt into the City Claims review with client 45 days prior to expiration
Audit review and processing Within 48 hours of receipt
Premium apportionment/allocations
for payment of taxes Within 5 days of binding, where applicable

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Service Team
Alliant is experiencing strategic company growth wh ile maintaining a 98% client retention. We are a company that is known for attracting and retaining top talent from the industry, competing companies and insurance companies while maintaining our speci alized expertise. Our resources and financial strength allow us to grow where it makes sense while working to add value to our clients. Alliant can assure the City that we will keep the necessary resources in place and continue to add new resources in order to provide the best advisors and risk solutions to meet its specific needs.

We have formed a team of specialists that will be a ble to meet and exceed the City’s service expectations, without exception. In fact, all of th e brokers selected to be part of the City’s propose d team were intentionally chosen because of their spe cific skill sets that we believe best complements the City’s insurance program. The proposed team lea der, Courtney Ramirez, has had the pleasure of working with the City for approximately five years and believes Alliant is the best-positioned team to assist the City with its Property and Casualty Insurance needs.

The proposed team includes senior brokers with sign ificant years of experience who have worked together on numerous joint projects with great succ ess. Additionally, Alliant is a company with employee ownership holdings that amount to approximately 53% of the firm. What that means to the City is that the team working the account will have a lot of “skin in the game” and their desire to provide exceptional service will be in the forefront of all daily functions.

We believe THE defining differentiator of Alliant is our people. The individuals we propose to represent and serve on the City’s account are deeply committed, very talented, highly creative and professionally respected members of the insurance community.

Following is a description of specific responsibilities for each team member individual resumes outlining the experience of each team member is included in Appendix B.

Primary Team
Courtney Ramirez, Senior Vice President | Team Leader | Irvine, CA Courtney will serve as the Team Lead. Courtney’s responsibilities will be to oversee the City’s insurance program and make certain that all programs are rene wed annually without any lapses in coverage, with financially responsible insurers with the broadest coverage terms at the most competitive pricing in the current marketplace. She will work with Sandra to oversee program timelines and development and have primary responsibility for client communic ations, including information on market developments. She will also oversee required claims review, loss control activities and will attend meetings as requested.

Courtney currently works in a similar role, providi ng brokerage services for complex property placements for many clients across the country including the California cities of Baldwin Park, Carson, Proposed Staff

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Cathedral City, Corona, Costa Mesa, Fountain Valley , Glendale, Huntington Beach, Los Alamitos, Manhattan Beach, Monterey Park, Newport Beach, Oxna rd, Pasadena, Sacramento, San Bernardino, San Buenaventura, Santa Clara, Santa Clarita Thousa nd Oaks and Westminster. Courtney has worked in the insurance industry for 21 years, specializing in Public Entities exclusively for 17 years with Alliant.

Courtney was named Power Broker by Risk & Insurance Magazine for the Public Entity Sector in February 2020 and named a Rising Star in May 2020.

Sandra Omari | Account Manager | Irvine, CA
Sandra will assist the team as the day-to-day admin istrator and coordinator for City’s insurance portfolio. She will assist in the delivery of both property and liability services related to the City 's insurance program and will work very closely with t he account team in developing the casualty marketing strategy and overall project management f or the City. Sandra has the responsibility of managing the data for all underwriting submissions. She will also review policies, provide certificate s and other documentation such as binders, invoices, claims reporting packets, and other desktop reference documents and assist in the coordination of claims issues, meetings, and loss control services. Sandra’s job will be to ‘hold down the fo rt’ in the office and stay on top of ongoing administration tasks.

Together, Courtney and Sandra will serve as the City’s primary Alliant contacts.

Shawn Kraatz, First Vice President | PRISM Liaison | Irvine, CA Shawn will provide oversight and act as a resource for the City’s PRISM program membership. As one of the PRISM brokerage team’s most senior members, Shawn will provide valuable insight into PRISM programs, underwriting, and available services. He has served in this capacity, working with the City of Gardena, since 2018. Shawn has over 25 years of pub lic entity insurance industry experience. His current list of clients is a diverse mixture of pub lic entities including PRISM, Cities of Beaumont, Hayward, Napa, San Diego, Santa Monica and Stockton ; and the Counties of Humboldt, Mendocino San Diego and Sonoma.

It is important to note that while these individuals will be the primary representatives working on the City’s account – the City will have access and support from all of Alliant’s resources without limitations.

We do believe in team efforts and collaboration, mo re importantly we do not have ivory tower executives in geographic profit centers. Where this is relevant to the City is in the quality of the service it will receive without any internal challenges.

Additional Resources
Daniel Howell, Senior Executive VP, Managing Director | Senior Advisor | San Francisco, CA Daniel will have the responsibility of Senior Advis or to the City’s team. We are a firm believer in th e peer review process, to ensure the best possible te rms for our clients. Even on well-placed accounts, taking a “fresh look” at a placement will always re sult in a better outcome for our clients, either by improving terms, or validating the existing structu re for board overview purposes. As Managing Director for the Public Entity Division, Daniel brings a wealth of knowledge and experience to the City.

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Tim Leech, First Vice President | Risk Control Consultant | Irvine, CA Tim is responsible for ensuring excellence in all a spects of service delivery to clients of Alliant Ri sk Control Services. Tim is available to assist in dev eloping a tailored risk control program with the direction of the City. Tim and Alliant’s risk contr ol team will supplement those services not provided by the City itself or through its insurance carrier partner, including but not limited to property appraisals, foreseeable and maximum probable loss studies, jurisdictional boiler inspections, and other suggested services. It is important to note that th e majority of the work performed by Tim and his team is for public entity clients, and the unique e xposures (correctional facilities, hospitals, offic e buildings, athletic venues, transportation systems, etc.) that accompany them.

Dan Madej, Senior Vice President | Analytics Consultant | Chicago, IL Dan serves as the Alliant Public Entity Group’s Analytics Practice leader and he is the foremost expert in providing tools and services to complement Allia nt’s leading position in the public entity space, providing risk financing and risk transfer solutions to public entities. Joining Alliant in 2019, Dan brings over two decades of experience in providing analytical and brokerage services to public entities. Dan’s extensive expertise and his dedication solely to the public sector provides immense value for our public entity clients.

Robert Frey, Senior Vice President | Claims Manager | San Francisco, CA Robert is in charge of Alliant’s Claims Advocacy Team, headquartered in Alliant’s San Francisco office.

Robert will be the City’s primary contact for repor ting claims and working with carriers on all claims .

His most valuable role will be to act as the City’s claim consultant and advocate on difficult and severe claims. Bob’s role will be to complement and supplement your efforts in obtaining quick and equitable claims resolutions while acting as a claims resource. His responsibilities include ensuring, through the assistance of his dedicated claims staff, the initi al reporting of claims to both primary and excess carriers, tracking the status of large open claims, and coordinating carrier claims meetings.

Rachel Wrightson, J.D., Senior VP | Claims Executive/Liability Specialist | San Francisco, CA Rachel joined the Alliant team in 2017 as Vice Pres ident and Regional Claims Director. A lawyer and veteran claims expert, Rachel works with Alliant’s diverse client base to oversee the management of a broad range of claims from inception to resolution. Rachel has eleven years of experience practicing law at major New York-based law firms, with a primary focus on corporate policyholder representation in insurance coverage litigation and dispute resolution. Immediately prior to joining Alliant, Rachel was Assistant Director, Claims, at New York University, one of the nation’s largest private universities.

Elaine Tizon, Assistant Vice President | Claims Advocacy/Cyber | San Francisco, CA Elaine will provide the day-to-day claims administrative support to the City. This includes making first notice of loss to carriers at the direction of the City, maintaining claim status updates, and coordinating the services of all claim personnel involved in the City claim matters. Elaine has over thirteen years of experience in this role at Alliant.

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We fully understand that the true value of any insu rance contract can only be determined by its response to loss. Alliant has a full Brokerage Claims Unit led by Robert Frey that vigorously advocates on behalf of our clients in the resolution of claim s with carriers and other third parties. This work is done on all lines of coverage for all of our public entity clients.

Key individuals from your key brokerage team will be directly involved in the loss adjusting process.

Services we will provide to the City will include:
› Serve as your claims advocate with insurance carrie rs, alternative financing markets, and applicable federal and state agencies.
› Monitor claims activity on a pre-agreed schedule.
› Provide claims reports on a quarterly basis and in a format desired by the City. › Provide periodic file reviews, claim audits, and surveys on a schedule desired by the City. › Attend on-site claims meetings as requested by the City. › Obtain periodic carrier loss runs, including electronic data feeds (if available), as requested by the City.
› Confirm deductible billings for accuracy.
› Facilitate the deployment of vendors to handle a catastrophic event. › Conduct pre-loss planning sessions and arrange discussions with vendors to ensure a prompt response to catastrophic events.
› Review claims notifications and abstracts to assure appropriate reporting to insurers. › Assist in the procurement of Proof of Loss documentation, as necessary. › Track the status of large or difficult open claims.
› Coordinate insurer claims meetings.
› Facilitate a dialogue between you and your assigned adjusters. › Respond to coverage questions.
› Review open claim reserves for appropriateness and accuracy. › Work with your insurers to correct loss reserves that are inappropriate for the specific loss. › Assist the City with coverage disputes during the claim process.

In addition, in order to assist in obtaining paymen ts for insured claims, we have put several practice s in place to streamline the process These include monthly phone calls and quarterly meetings between our claims manager and the carrier’s claims staff. Each of our brokers receives a periodic claims report for their clients so that, if necessary, they can assist in ensuring resolution. While most claims settle in a normal fashion, there will always be the few exce ptions and these meetings/actions work towards the positive resolution of those few claims.

Our claims staff is not involved in advocacy for other industries, they are employed solely to work on Alliant’s public entity book of business and serve as an advocate for our clients. Therefore, they are Claims Advocacy

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PROPOSAL SUBMITTALS
very familiar with public entity risk, policy forms and claims adjusting teams on the carrier side. When a claim occurs, they are immediately involved and will be kept informed of the particular issue and the progress of the claim, and are able to provide valu able communication and assistance to our clients throughout the process.

In assisting the City with coverage disputes and pr oving of difficult claims, we recognize that each claim is different and has its own fact pattern. This information is reviewed to determine the best path in dealing with coverage disputes. The facts are examined as they relate to the policy wording and the policy wording is reviewed word by word; often time s it is only one word that can turn a coverage dispute in favor of the insured. Alliant will locate and utilize outside consultants where is it is helpful in proving issues such as causation, valuation of damage, historical value, etc. We often assist our clients in gathering facts, information, knowledge that is used in the discussion and negotiation of disputed claims. In addition, our Public Entity Claims Pract ice Group has the ability to call upon both the Chairman and President of Alliant when intervention with Executive Management of the Underwriters is necessary. While this step is not one often util ized, our Executive Management Team stands ready to assist as needed for both our clients and staff.

On large programs we normally have one adjustment firm written into the various layers of insurance contracts so there is consistency on the day to day handling of losses along with strong relationships that can prove helpful in dealing with difficult claim situations. Trust and honesty is paramount in any claim but magnified in large and or complex loss si tuations. We in the Public Entity Claims Practice strive to foster relationships with firms and indiv iduals that are based on trust and honesty as we believe it is those relationships that can be criti cally important in the resolution of difficult clai ms for our clients.

Claims Success
In the last few years, our claims team has successfully handled several large property losses with claim values ranging between $10 million and $41 million. We have handled several crime losses with claim values up to $17 million. Further, we have worked w ith and assisted clients in the handling and resolution of various liability claims with settlement values up to $50 million.

Nothing speaks more to claims advocacy than specifi c case studies. The following are recent claims that have been negotiated and settled by the Alliant Claims Department on behalf of the client during the adjustment process:

Claims Advocacy Case Study – A City client suffered significant storm damage to one of their piers during a storm in 2017. Upon submitting the propert y claim it was discovered that the pier was not listed on the City’s property schedule. Bob Frey wa s able to get the property insurance carrier to provide coverage using the miscellaneous unscheduled sublimit available through the policy form of $25M with a deductible of $100,000, which was lower than the Zone A & V Flood deductible. This claim was in excess of $500,000 dollars.

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PROPOSAL SUBMITTALS
Claims Advocacy Case Study – A state prison facility sustained major damage as a result of a prisoner riot. Approximately eight buildings sustained damag e. There was a coverage dispute regarding the property that was to be insured under the policy. Alliant argued that the policy was constructed by the carrier and as such was responsible for the loss. A lliant assisted the State with successful negotiation and resolution of this multi-million dollar loss.

FEMA Claims Advocacy – Alliant also has the unique and necessary experienc e working with FEMA.

In fact, our proposed Claims/FEMA advocate Bob Frey was instrumental in facilitating the process with FEMA following Hurricane Sandy. His experience will continue to provide tremendous value for the City should the service be required. Sample FEMA Experience › Three Large Medical Center Hospitals – Tropical Storm Allison › Large Regional Hospital – Hurricane Dolly
› Large Multistate Hospital – Hurricane Katrina
› Large Port
› Various cities and counties in California-Wildfires of October 2003 and October 2007 › Various governmental pools/cities-Hurricane Sandy
› Government Agency-Montana Flooding-July 2013
› City & State PUC – Rim Fire
› City – Rim Fire

FEMA Case Study – Alliant represented some of the major healthcare in stitutions in the City of Houston when Tropical Storm Allison flooded the Houston area. Many of the institutions in the Medical Center area found it difficult to procure the required insurance in the wake of this catastrophic event.

In order to obtain funding from FEMA it was necessa ry for these institutions to maintain insurance.

However, for each institution, policy limits were e xhausted and the current underwriter was unwilling to reinstate the limits of insurance.

Alliant successfully obtained replacement capacity to reinstate limits for all of our clients. This cr itical accomplishment allowed our clients to meet this FEMA insurance condition for obtaining their grants from FEMA. Our efforts helped our clients recover over $200,000,000 of insurance proceeds and over $150,000,000 of FEMA grants.

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PROPOSAL SUBMITTALS

We strongly believe all risk management and profess ional services provided to our clients should be focused on their needs and not focused primarily on the needs of the insurance company. There can be tremendous benefit from loss control services th at take into consideration a client’s exposures, needs, and culture. We believe a collaborative risk management approach that includes the client, broker, underwriter, and loss control representative is the best solution to addressing the City’s needs.

Our loss control services will be focused on identifying and reducing exposures and will be part of an overall risk management program strategy.

Alliant will work with the City to develop a tailor ed Risk Control plan for ongoing services. As part of our service plan for the City, we will facilitate a n initial consultation with an Alliant risk control professional to review the City’s current risk cont rol strategy. The criteria we will evaluate and ass ess includes current insurance programs, loss history and trends, management goals and objectives, past surveys, survey recaps, and hours allocated to each line of risk. As a result of this consultation, we can determine where Alliant’s risk control personnel ca n supplement and complement the City’s current risk control culture.

Below we have provided examples of the various loss control services we will be able to provide to the City:

Infrared Surveys – To prevent unscheduled maintenance, decrease operat ional interruptions, and improve energy usage of electrical equipment and fa cilities, we offer infrared testing which detects electrical problems such as faulty fuses, loose wir es, and overloaded circuits. Additionally, for thos e exposures not identifiable through Infrared Surveys, ultrasonic testing is also used.

Business Continuity Planning – As part of our consulting services we will identify the need for business continuity planning. If business continuit y planning is needed for your organization, Alliant will work with City stakeholders to select a subjec t matter expert or organization that will provide a dedicated service. Cost and/or fees for this service would be negotiated at that time.

Risk Control Surveys – Risk Control surveys are utilized to identify and quantify client property exposures by providing C.O.P.E. (construction, occu pancy, protection, and exposure) and natural catastrophe data, life safety and risk quality ratings, recommendations, and facility photographs.

Insurance Requirements in Contracts Review & Trainin g – A regular aspect of the service Alliant provides to its clients is the review of contracts and agreements to help determine appropriate insurance coverage, limits and language to be utilized in order to properly manage risk. Much of our time is spent with clients working through contract language issues. For a few of our clients, we review all contracts to determine that correct language is used and that every contractor is in compliance. For most, we provide detailed training and then only handle exceptional requests.

Risk Control/Risk Management Services

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To assist in the process we maintain our Insurance Requirements in Contracts (IRIC) Manual, which is available electronically for all our clients and details recommended insurance requirements for vendors working with our clients. The manual provides guida nce to your staff for securing contracts with a variety of contractors and vendors. This manual is offered at no additional cost and Alliant is prepared to offer full or half-day training presentations. Our IRIC training has been found extremely popular and valuable to our clients.

Fire Prevention and Property Conservation Consultat ion – Our loss control professionals have advanced skills in property conservation and hands- on experience with fire protection systems.

Consulting services include:
› Storage Advising
› Sprinkler System Analysis
› Pre-Construction Advising
› Security Consultation

Property & Casualty Benchmarking – Alliant has the knowledge and resources to prepare benchmarking studies for the City, and frequently p rovides these studies for our other public entity clients. These benchmarks combine information from our client database and insurance carriers as well as industry information. Additionally, Alliant maintains access to national benchmarking databases. We often find that clients who are of similar size and sophistication to the City pursue benchmarking on their own. In these cases, our team is happy to aug ment the City’s studies with additional data and function as a supplement to those studies.

We have listed below various Risk Control services which will be made available to the City through either PRISM and/or Alliant’s Risk Control group.

PRISM Risk Control Services

SERVICE DETAILS PRICING
Actuarial Subsidy $2,000
(included for each and every major program)
Included
Risk Management
Subsidy
$1,000 included for each and every major program.

Subsidy can be used for a variety of things at the approval of PRISM. Examples include: purchase safety equipment,
ergonomic equipment, expenses related to attending
seminars, conferences of regional training, expenses
related to contracting for inspections or training, site inspections.

Included
Enterprise Risk
Consultants
Your resource for contracting experienced risk
management personnel. This pool of highly-experienced
individuals with backgrounds in Risk Management,
Finance, Human Resources, Risk Control, and other skill Available at
consultant’s
negotiated
rates based on

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SERVICE DETAILS PRICING
sets, is ready to take on special projects, supplement during staff transitions, and other scenarios your agency may have. Each has been reviewed by the Member
Services Committee and has passed a background check,
making your job easier. Browse through our Enterprise
Risk Consultants (ERC) e-guide and find that consultant that’s right for your situation.
the scope of
work and the
ERC Guide
hourly rates
Risk Management
Practitioner
Certificate
Program
A Risk Management Practitioner (RMP) Certificate Program has been developed in partnership with CPS HR Consulting and the CJPIA, to provide the building blocks to establish, develop, and embed risk management as a business
process in public sector organizations.

This five, one-day in-person training series is specifically designed for risk management assistants, workers’
compensation specialists, human resource
analysts/assistants, and frontline supervisors who are
responsible for practical, cost-effective risk management.

At PRISM
negotiated
rates
Risk Management
Mentor Program
This dynamic Program will give you the opportunity to find a Mentor/ Mentee and share knowledge, coaching, and
insights in the area of risk management.

There is a wealth of information harnessed by experienced risk managers, and there are many people who are new to the industry. Many people may not even know what
questions to ask! The RMMP is here to bridge that gap!
Included
Crisis Incident
Management
Communications
PRISM has contracted with Mainstream Unlimited to
provide crisis incident management services.

Mainstream Unlimited services include both pre- and post- crisis incident services and communications management.

Pre-crisis services include regional training programs, emergency plans (review and development), vulnerability assessments, and webinars on topics such as critical
incident management, communications, and media
management. Any member-specific, pre-crisis training, and communications management may be contracted and
paid for by the member at the discounted rates offered to PRISM members. Members may access their available
subsidy balances to assist in covering those costs.

Post incident
services are
included up to
$50,000 by
Program when
criteria are
met. Pre-
incident
services are
available at
negotiated
rates

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SERVICE DETAILS PRICING
Post -crisis incident services include situation assessment, media consulting, public announcements, and deployment
of outside resources to member site. These services will be provided to members upon approval by PRISM, and paid
for by PRISM up to $50,000 per incident. Any costs above that would be paid for by the member.

Certificates of
Insurance
Management
PRISM has contracted with Ebix, an online certificate of insurance tracking and management company, to perform
all the work necessary to obtain and record proper
evidence of insurance coverage from each organization
with whom the members contract.

Available at
pre-
negotiated
member only
rates
Crisis Incident
Counseling
Services
Through our partnership with MHN, PRISM Excess
Workers’ Compensation members have access to Crisis
Incident Counseling (CIC) Services for employees following an unexpected work-related death of a co-worker. CIC is a coordinated system of services, including critical incident stress debriefing, for responding to a critical incident that impacts the workplace. Consultants work with your
organization through all phases of critical incident
planning, response, and resolution.

Included
Legal Advise
Services
PRISM's General Counsel, Steve Underwood, Esq. is
available to members for assistance and/or consultation on various legal matters. Topics include the following
areas*:
› Brown Act
› Public Records Act
› Contracts and other documents legal review
› Statutory interpretation
› Litigated matters
› Telephonic appearance at closed sessions of the
legislative body
› Other general governmental issues
Included
Labor Law/EPL
Services
Legal consultation provided by the Eyres Law Group on a variety of topics including; the interactive process,
performance management, and reasonable
accommodations.

Included
Legislative and
Regulatory Work
PRISM's Legislative Committee was developed with the objective of actively participating in the legislative and regulatory process.

Included

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SERVICE DETAILS PRICING
Training Webinars, on-site and regional in-person training programs on a vast variety of risk control topics. On
demand trainings through PRISMtv and video streaming
service are all part of the training offerings.

Included
Toolbox A compendium of risk control best practices, sample policies, and presentations on over 100 areas of risk
management, as well as Information Sheets produced by
the PRISM Risk Control team.

Included
Vector Solutions An online learning management system by Vector Solutions allows members access to an extensive catalog of web based training sessions for risk management as
well as everyday business needs such as Microsoft Suite products.

Basic level
Included can
be expanded
at agreed
upon rates
PRISMtv Our PRISMtv solution offers live training sessions, as well as 24/7 access to on-demand webcasts. Choose from a
myriad of risk management topics for workers'
compensation, liability, property and health programs via a customized platform accessible only by PRISM members
and their employees.

Included
iTrainStation iTrainStation is an online streaming library of safety and training videos available for 1-day streaming access.

Included
Catastrophic
Claims
Management
Paradigm Outcomes connects catastrophically injured
workers to medical experts, high quality providers and
clinical support infrastructure to achieve better medical outcomes and lower claims cost.

Price to be
negotiated per
claim
CARES Program This program walks your injured employee through the surgical process and ensures pre and post-surgery needs are fulfilled.

Available at
pre-
negotiated
member only
rates
Claims Audit Contracted independent claims auditors review your book of claims helping to increase TPA performance in
accordance with PRISM best practices and contracted
administrative standards.

Included
Claim System Members can benefit from PRISM's partnership with Insurity for their claims processing needs by leveraging pre-negotiated rates at a potentially substantial discount.

Available at
pre-
negotiated
member only
rates

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SERVICE DETAILS PRICING
PRISM Claim
Resources
Because the PRISM claims staff monitors claims of all
nature and variety throughout California and frequently interact with our reinsurers’ claims professionals, we serve as an excellent resource for members and their claims
administrators. PRISM claims staff are available to identify specialists (attorneys and otherwise) and complete
research on laws, statutes and precedents that might affect the value and resolution of your claim.

Included
Investigative
Services
PRISM has partnered with PROBE Information Services to
provide employer defense investigations, regulatory
compliance, and fraud abatement throughout California.

Specializing in all aspects of insurance defense
investigations, PROBE leverages experience in multi-line coverages and provides investigative evidence to assist claims.

Available at
pre-
negotiated
member only
rates
ISO ClaimSearch PRISM funds an annual contract with the ISO to cover all index reporting and inquiries for our members.

Indexing is beneficial in identifying prior or subsequent injuries that may be exacerbating the problems
demonstrated in the subject accident. This removes the
need for members and their claims administrators to pay for each submission.

Included
LienResolution
and WCAB Walk
Thru Services
RPM Lien Resolution is a lien negotiation service that will close out old liens that are keeping your claims open. RPM will also walk your settlement papers through the WCAB at rates significantly less than those charged by attorneys.

Available at
pre-
negotiated
member only
rates
Managed Care
Consulting
Members of the PWC and EWC programs have access to
preferential rates from Donn & Company to provide
oversight of your managed care program.

Donn & Company (DonnCo) is a restructuring firm that
optimizes the financial, and operational, performance of Worker's Compensation managed care programs (medical
bill review, PPO, PBM, utilization review and case
management) to ensure maximum savings at minimum
cost. DonnCo doesn’t provide managed care services;
rather works with clients’ existing vendors—identifying areas for improvement in their process and resources,
Available at
pre-
negotiated
member only
rates

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SERVICE DETAILS PRICING
fixing those weaknesses, and auditing ongoing
performance to make sure the vendors stick to the high
performance commitments they negotiate. The goal is to
optimize programs in two ways: through restructuring
existing programs; and, if needed or required, through a competitive bid or RFP process. For small and medium
sized payers, the financial impact can be hundreds of
thousands of dollars a year in reduced medical and
managed care fees.

Medical Provider
Metwork
Our proprietary MPN was established in accordance with
the SB 899 reforms that occurred in April 2004, and can provide employer control over the injured worker’s
medical care through the life of the claim.

Available at
pre-
negotiated
member only
rates
Medical
Transportation &
Language Services
ProCare is a leading privately held medical transportation & language services company, offering: fully credentialed drivers and interpreters, proprietary referral management software, with a triple confirmation guarantee.

Available at
pre-
negotiated
member only
rates
Medicate
Reporting Services
Due to the significant reporting requirements that exist and penalties that can be assessed for failing to comply with the Medicare Secondary Payer Act (MSP), PRISM has
coordinated with ExamWorks to provide CMS (Center for
Medicare/Medicaid Services) query and reporting services.

Available at
pre-
negotiated
member only
rates
Prescription
Addiction
Management
Drug review program designed to reduce injured workers' addiction to narcotics.

PRIUM Medical Cost Management Services is a drug
review program that reduces the potential for injured
workers to become addicted to narcotics and decreases
the use of unnecessary or inappropriate drugs.

Available at
pre-
negotiated
member only
rates
Rehabilitation
Care
NeuroRestorative (formerly Care Meridian) is a leading
provider of sub-acute and post-acute rehabilitation
services for people of all ages with medically complex
injuries and illnesses.

Available at
pre-
negotiated
member only
rates
Return to Work
Program
Pre-identified temporary work assignments from the OUR
System help employers return employees to work,
increasing employee satisfaction and decreasing the cost of the claim.

Available at
pre-
negotiated
member only
rates

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SERVICE DETAILS PRICING
Subrogation Specialized subrogation claims adjusters’ help you recover Available at Recovery Services claims expense incurred by a third party. pre - negotiated
member only
rates
Structured Brokers specializing in resolving complicated workers’ Available at Settlements compensation claims via annuities. pre - negotiated
member only
rates

Alliant Risk Control Services

SERVICE FREQUENCY/COMMENTS COST
Claims Audit Recommend every other year; pricing
based on project specifications and
subject to hourly rate
Based on Hourly Rates
Insurance Requirements In
Contracts Training
One In -Person and One virtual training
session
Included
Extraordinary Claims
Consulting
As requested, based on project
specifications and subject to hourly rate
Based on Hourly Rates
Loss Control Site Visits As requested; pricing based on project specifications and subject to hourly rate
Based on Hourly Rates
Infrared Surveys Daily Rate Based on Hourly Rates
Enterprise Risk
Management/ Business
Continuity Plan
Associates and Senior Associates
Associate Director and Director
Senior Director, MD, SMD
Based on Hourly Rates
Fire Plan Review As needed Included
Hot Work Permit Program Upon Request Included
Fire Impairment
Notification and Tags
Upon Request Included
Safety Video On-Line
Streaming
Upon Request Included
Preliminary Risk
Management Assessment
Upon Request Included
Alliant Risk Management
Center
Upon Request Included

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SERVICE FREQUENCY/COMMENTS COST
Pre-Construction Fire
Planning
As needed; priced on a per project
basis subject to hourly rates
Based on Hourly Rates
Continuity Planning Upon request; priced on a per project basis subject to hourly rates
Based on Hourly Rates
On Site Custom Training Upon request; priced on a per project basis subject to hourly rates
Based on Hourly Rates
Industrial Hygiene Services Upon Request; priced on a per project basis subject to hourly rates
Based on Hourly Rates
Live Webinar Training 10 Webinars Annually. Archived
webinars for unlimited playback. July
2020-June 2021Sessions Include:
› Pandemic – Caught off Guard
› Fundamentals of Emergency
Management
› Counteracting Violence in the
Workplace
› Property Vulnerabilities
› Hazardous Materials Storage
› Fire and Life Safety Assessments
and Audits
› Kitchen Hazards and Fire
Suppression Systems
› Introduction to Safety
Management
› Observational Safety and It’s
Value
› Effective Communication
Included
Safety Fact Sheet and
Template Database
Access to hundreds of documents,
power points and templates on a
variety of property and safety topics.

Included
Risk Control Newsletter Quarterly News Letter: Topics range from accident forensics, benefits of
infrared surveys, roof inspections, crime
prevention, OSHA, claims and many
others.

Included
COVID -19 Exposure
Screening
Monthly Subscription Based on Hourly Rates
CAT Modeling As described Included
Analytics for SIR and Limits As described Included AlliantConnect Client Service Portal Included

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SERVICE FREQUENCY/COMMENTS COST
CertTrax Vendor certificate tracking Monthly Fee
CSR241 Certificate management system for
requesting and creating certificates
Based on Hourly Rates
Imperium Consulting Catastrophe Claims/Forensic Accounting Based on rates and typically paid by
insurance policy
Northstar Recovery Pre -loss assistance Based on fees and passed through Alliant
contract

Catastrophic Risk Modeling – Due to the unique composition of each client as wel l as their catastrophic exposures, Alliant’s in-house modeling team will perform any catastrophe modeling needed, leveraging this information when marketing the City’s program. Our team uses RMS and AIR CAT modeling extensively in the marketing of our placements and to help determine the appropriate limits and retentions. We believe it is critical that both our clients and our brokers have a firm grasp of the modeling results in order to design the optimal structure of your insurance program. We utilize the models to help design the best placement struct ure, recommend appropriate earthquake, windstorm, wildfire, hailstorm and flood limits, an d understand the key metrics that drive the pricing from an underwriting perspective.

The reports also assist to counteract carrier loss projections which may be based on generic data and not on the unique City’s risk profile. This allows us to present a strong technical argument against the carrier’s internal actuarial analysis or catastrophe modeling in order to produce optimal renewal results.

Alliant Catastrophe Analytics utilizes Risk Managem ent Solutions (RMS) software for all in-house Natural Catastrophe modeling. For around three decades now, RMS has been an industry leader and a top innovator in the world of Catastrophe Risk Modeling. The CAT modeling team at Alliant Insurance Services are experts in utilizing RMS’s technology to help our clients understand and mitigate catastrophe risk.

All City modeling would be done in the Alliant New York office, with the Property Brokerage team very much a part of the modeling process. This embedded approach to Nat Cat modelling opposed to a service center encourages:
› Complete team involvement in the modeling process.
› Advanced level of insight, creates greater leverage in carrier negotiations. › Our in-house team has the ability to deconstruct data sets and identify in real time what is driving results.
› Given our greater operational efficiency we will commit to a 24-hour turn around on requested modeling reports.
› Help predict and protect from losses currently active in the Central region.

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Through this process, we will provide important client deliverables, including:

Business Interruption Values – Alliant will work with the City to determine the pr oper valuation for your business interruption exposures. We utilize bo th internal resources, such as our proprietary business interruption worksheets, along with our carrier partner services. Additionally, Alliant has a firm Imperium that specializes in forensic and disaster recovery, including FEMA claims, and they will be able to assist the City.

Imperium Consulting Group’s core competencies are to measure scope, time and money. Imperium’s experts specialize in multiple claims processes, su ch as navigating insurance coverage, construction contract language, Federal Emergency Management Age ncy (FEMA) protocols, and government contract regulations. Imperium has experts in each area and professionals who understand how more than one discipline can apply to the same claim. As a result, we help clients simplify and focus a recovery strategy while delivering industry best practices through a commonsense approach.

Imperium’s Services Include:
› Property damage/business interruption claim preparation, including:
 Cost estimating related to the physical scope of loss and repairs.  Forensic scheduling to quantity and support delay and time-driven costs.  Forensic accounting to prepare business interruptio n and other financial measurements.
› Insurance loss project management, including:
 Loss-specific consulting to help facilitate the process of repairing and rebuilding.  Implementation and oversight of loss-specific proje ct controls to enhance activity coordination and documentation.

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› Construction and capital project claims and advisory, including:
 Contract disputes regarding project delays and claims pricing.  Claims involving subcontractor default insurance (SDI), builders risk, delay in start-up, and surety.
 Government contract claims.
 Project performance and contract audits and risk assessments. › FEMA claims consulting, including:
 Guidance through the FEMA claims formula and process.  Analysis, tracking, separation and measurement of FEMA and insurance claim costs.  Cost eligibility advice.
 Claims management through close-out.
 Dispute resolution and litigation
 Expert reports and testimony for mediation, arbitration and litigation.

Flood Analysis & Flood Emergency Response Planning – We understand the severe threat our clients may face from flooding and have incorporate d various resources to assist with the both identification of flood potential as well as effective steps to mitigate this exposure including emergency response planning.

Your service team has access to multiple on-line flood tools used to identify flood zones and we work diligently to identify the flood exposure for all our client’s properties. Once identified, various methods can be used to mitigate or transfer the flood exposure to others. The National Flood Insurance Program (NFIP) can be a very effective way to mitigate the flood exposure especially for property located in a Special Flood Hazard Area (SFHA). We have flood exp erts on our team who handle the placement of policies through the NFIP as well as with private flood carriers. We can also assist our clients to obtain Elevation Certificates and track properties for any flood map revisions.

Additionally, we have staff and resources (both internal and external) with experience and expertise in emergency response planning for many perils including flood. We know all risks cannot be eliminated or transferred and the time and effort to develop p lans and strategies for handling emergencies is a critical component of an effective risk management program. We know our role in this is to assist our clients and help provide resources and recommendations so our clients can more effectively address these areas of concern.

Property risk control surveys – including recommendations to reduce the risk of a loss – Alliant can conduct Risk Control surveys for the City to id entify and quantify client exposures by gathering C.O.P.E. (construction, occupancy, protection, and exposure) information, natural catastrophe data, life safety, risk quality ratings, and facility photographs. At the conclusion of our surveys.

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PROPOSAL SUBMITTALS
Guidance on fire protection requirements for new occ upancies – Our risk control professionals have advanced skills in property conservation and h ands-on experience with fire protection systems.

Consultation services include:
› Storage: Assist clients in selecting the best storage and warehouse methods to help reduce environmental damage.
› Sprinkler System Analysis: Evaluate design of existing and new sprinkler systems for adequacy in protection against fire.
› Pre-Construction: Help clients choose new sites and review building plans to limit potential deficiencies.
› Security: Develop security policies and procedures to protect life and property.

Emergency response procedures (Guidelines, Testing, Templates) – Alliant developed a disaster recovery and emergency response plan (ERP) for our clientele. The ERP identified the roles and responsibilities of key operational areas of the organization and supporting functions for the response and communications of emergency activities. In addi tion, Alliant Risk Control is in the process of developing and offering an emergency management sol ution designed to allow organizations to publish their emergency procedures and instructions via an online dashboard to smart phones and tablets. This solution will allow constituents actionable and offline accessible guidance when they need it, including:
› Convenient access to emergency information with features such as diagrams, one-tap calling, push notifications, maps, and more.
› Replacement of traditional paper-based flip-charts, laminated wallet cards or lengthy standard operating procedures.
› Speed and reliability of mobile devices.
› Improved efficiency by aligning event-specific information with contacts. › Unlimited downloads and real-time updates.

Business Continuity Planning (Guidelines, Testing, and Templates) – As part of our consulting services we will identify the need for business continuity planning. If business continuity plan is needed for your organization, Alliant will work with City stakeholders to select a subject matter expert or organization that will provide a dedicated service. Cost and/or fees for this service would be negotiated at that time.

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PROPOSAL SUBMITTALS

Alliant clients achieve the best results when we strategically and actively market their risks to respected high-quality underwriters. There can be strategies specific to certain lines of coverage and risks however, we believe the best results are achieved b y competitive marketing for all lines of coverage City purchases. Our marketing philosophy and strategy are tailored for each client and focused on their unique needs. Once we have established the goals for the renewal with our client, we match those goals with our knowledge of the marketplace. We then look to leverage any existing relationships the client might have in the marketplace coupled with our market relationships to achieve the best results. We do understand the importance of consistency and would look to the relationships you have with your current markets. Often, there are good reasons to m aintain these relationships if they are viewed as “good partners” in the past. Additionally, we will identify key markets with aggressive pricing and broad terms.

In a soft market, comprehensive marketing routinely forces incumbent carriers to reduce their premiums; however, one has to weigh the balance of “over-exercising” the market to one’s detriment and obtaining pricing that is reflective of current market conditions. In today’s difficult market, we anticipate marketing each line of coverage on an annual basis to ensure carrier terms and conditions reflect the market and takes advantage of carrier appetites. As stated, we understand that constantly changing carriers based on pricing can be dangerous for continuity of coverage and in forging long term relationships that can be extremely beneficial under hard market conditions.

Alliant coordinates its insurance marketing efforts to deliver the greatest impact in the delivery of insurance product value for our clients. Through the use of programs , the judicious use of our market clout and program design creativity , we are able to deliver ‘below market’ cost solutions to our clients for multi-line coverage including but not limited to Property Insurance, Liability Insurance, or Workers' Compensation Insurance.

In addition to accessing over 350 markets both dome stic and globally (the worldwide marketplace), Alliant can bring the City options other firms simp ly do not have access to. These options are our proprietary group purchase programs that we have created on behalf of our clients, as w ell as our access to Joint Powers Authorities (JPAs) which are managed by similar public entities, and brokered by Alliant.

In terms of Alliant’s espoused marketing strategy and philosophy for the City, we suggest a four-prong approach to renewing the City’s insurance program. We would suggest pursuing the following options in tandem to secure the best possible value.

1. Market and Negotiate with the City’s Incumbent Carriers/Programs/Pool.

2. Market and Negotiate terms with the Worldwide Marketplace.

3. Conduct a JPA Pool Analysis.

4. Evaluation of Other Exclusive Alliant Programs.

Marketing Plan

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PROPOSAL SUBMITTALS
Alliant Proprietary Programs
Alliant has developed an array of insurance programs that are exclusive to our clients, and are designed specifically to meet the needs of large public entities such as the City. These programs are in addition to what is available in the worldwide marketplace. Competitors do not have access to these programs, and they have proven to be one of Alliant’s greates t differentiators. The success of our programs is achieved by utilizing the strategy of group purchas e. Alliant is able to leverage the combined size of the participating group to provide extreme advantag es to our clients, which include below market pricing, extremely high limits, and broad manuscrip t coverage. Below we have included a number of reasons why the options made available to the City from Alliant give us a competitive advantage.

Alliant Property Insurance Program (APIP)
More than 20 years ago, Alliant created our proprie tary property program, APIP, as a concept to simultaneously take individual property insurance p lacements for several public entities to the insurance markets. Since then, APIP has grown into the single largest property placement in the world, with over $500 billion in Total Insurable Values, a nd representing over 10,000 public entities in 45 states.

The policy form seamlessly integrates standard All Risk Property coverages, Boiler & Machinery and a wide array of coverage enhancements, such as Flood (DIC), Course of Construction, Builder’s Risk, Fine Arts, Terrorism and over the road Auto Physical Dam age just to name a few. The APIP form is considered one of the broadest policy forms in the industry; and it includes optional coverage for Cyber Liability and Pollution Liability (both 1st and 3rd party coverage). As an added bene fit, through the APIP program, property appraisals are i ncluded at no additional charge for any building exceeding $5 million in values. Each year the program grows in size and this continued growth allows improved pricing and superior coverages for our clients. The APIP program is exclusive to Alliant, and the only way for entities to access this program is through a partnership with Alliant.

To further illustrate the broadness of the form, below is a list of program highlights:
› $1 billion All Risk Limit per occurrence.
› Coverage not limited to schedule.
› Automatic acquisition for newly acquired locations up to $100 million in value ($25 million for no additional premium).
› Builder’s Risk coverage included for projects up to $25 million, and additional cost savings for projects up to $50 million.
› $100 million limit for boiler & machinery.
› Includes coverage for vehicles and mobile equipment on a replacement cost basis. › Optional coverage for sabotage and terrorism.
› Optional coverage for cyber liability (1st and 3rd party). › Wind/Hail deductibles as low as 1%.

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Other Alliant Programs
In addition to Alliant’s larger proprietary program s, we have taken the same “group purchase” approach with smaller programs to help drive down t he overall cost of risks for our clients. These programs include but are not limited to:
› ANML – Alliant National Municipal Liability Program (City is a former member, prior to joining CSAC-EIA/PRISM and this remains an option for the future) › CLIP – Catastrophic Liability Insurance Program (Ci ty is a former member, prior to joining CSAC-EIA/PRISM and this remains an option for the future) › ACES – Alliant Cyber Excess Program
› ACIP – Alliant Crime Insurance Program
› FLIP – Fiduciary Liability Insurance Program
› CAMP – California Aircraft Municipal Program (City is a program member) › CALIP – California Airport Liability Insurance Program (City is a program member) › Active Assailant Coverage
› Special Events Liability Program
› Vendors/Contractors Program and Vendors Professional Liability Program

We can certainly write at length about our programs and our belief that they give our clients a significant program advantage. But the proof is in the actual performance of the programs. Thus, we are providing examples below which illustrate Alliant’s ability to leverage our clout in the marketplace to benefit our clients:

Using APIP as Leverage – At the beginning of 2020, Alliant was awarded the c ontract for Insurance Brokerage Services for all lines of coverage for a Midwestern State. One of the main factors in Alliant earning the award was the capability of our exclusi ve programs, which was demonstrated in our response to their RFP. Once we were awarded, we went right to work on obtaining favorable property terms for the client. This client’s program was written through Travelers at the time, and had been for several years. The client had experienced many years of increasing rates, less favorable retentions, and the tightening, or even the removal, of certain coverages such as on-premises vehicle physical damage.

The client had begun to grow frustrated, as their i ncumbent broker had not been able to bring any alternative options to the table, mainly due to one large open claim. During our initial conversations with Travelers, they had indicated much of the same of what the client had grown accustomed to, stating they would need at least a 20% increase in rate, and would need to tweak certain coverages to make them less favorable to the client. Through the Alliant Property Insurance Program (APIP), we were able to negotiate with our underwriters an essentially flat property renewal, all while gaining back certain coverage features that the client had lost over the years, such as on-premises vehicle physical damage for their schedule of over 10,000 vehicles, and bri nging back some of their special deductible terms.

Realizing they were on the verge of losing this lar ge account, Travelers sharpened their pencil and issued flat renewal terms, making it so the client had two good options for their property renewal. The client ultimately chose to move their program to APIP, but this is a great example of how our program can influence the outcome of our clients’ property renewals.

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Pooling Options
PRISM – As an Alliant client, the City has access to the largest risk sharing pool in the country where Alliant serves as the exclusive broker and marketin g agent. As the stand-alone market continues to harden, Pools become more attractive as they can often weather the storm better due to their ability to control costs, self-fund significant risk, and leverage their buying power in the reinsurance market.

Public Risk Innovation, Solutions, and Management (PRISM, formerly called the CSAC-EIA) is domiciled in California. The annual revenue for PRISM for the 22 – 23 year is expected to exceed $1.5 billion. PRISM is a risk sharing pool consisting of all types of California public agencies, including all but two counties, over 70% of the cities, and a large number of schools and other special districts.

Currently the City participates in the PRISM Genera l Liability (GL1) Program and Excess Workers’ Compensation Program. These programs are only accessible to the City via a partnership with Alliant.

During the 2018 renewal, in addition to looking at a more traditional program option, Alliant recommended that the City look at a risk sharing pool as an alternative. We view any work associated with a pool analysis as an important function of th e marketing process and therefore, no additional cost is required for this service. Based on a variety of factors including pool makeup, financial strength, membership, available programs and services, minimu m/maximum retentions and the amount of control City would retain in each respective pool, PRISM has remained the best option for Gardena. › City of Costa Mesa (2020) – The City had a very difficult excess liability re newal due to the hardening in the insurance marketplace. Approximately three weeks before their renewal the incumbent carrier changed the terms on their quotat ion increasing the self-insured retention without giving any premium credit. An extensive marketing effort had already been completed and there was not a better option available in the standard market. The PRISM GL1 program obtained the submission and worked on a rush basis to get committee approval. The PRISM terms provided broader coverage and allowed them to keep their current self-insured retention.
› City of Pasadena (2020) – The City of Pasadena experienced a significant incr ease to their excess liability placement in 2019, which was over 100% and a forced to increase their retention from $3M to $5M. After issuing an RFP, they appoint ed Alliant as their broker in February of 2020. Although the Alliant team canvassed the entire marketplace, every carrier returned with unfavorable terms to the City including it’s incumbent carrier. After much work on both sides, PRISM GL2 program reviewed the placement and offered coverage with broader terms and an increase that was 20% lower than the stand-alone placement. › City of Manhattan Beach (2017) –Historically the City was a member of the ICRMA pool. The City expressed interest in looking at alternatives to the ICRMA programs through PRISM. A detailed coverage analysis outlined the ICRMA programs versus what was available within the PRISM GL1 Program, Property Program and Excess Work ers’ Compensation Program. The differences between the two were astounding. When the program was bound, the City saved hundreds of thousands of dollars (approximately $1, 000,000) and obtained significantly broader terms across the board. For example, as a b uyer of Earthquake Coverage, the City

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PROPOSAL SUBMITTALS
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reduced the deductible from 5% to 2%. In the event of a significant earthquake, this difference in deductibles could amount to millions of dollars saved for the City – while still saving money on the annual premium.
› City of Sacramento (2016) – The City had a difficult excess liability renewal b ased on a full limit loss and was advised that the premium with th e incumbent carrier would increase close to 100%. An extensive marketing effort did not prod uce an alternative with terms that were comparable to the incumbent, despite the increase. The PRISM GL2 program obtained the submission and at our persistence worked on a rushe d basis to get committee approval.

Ultimately, the PRISM terms were far more competiti ve than the incumbent program or the insurance marketplace. The City of Sacramento continues to be a long-standing client.

Defined Client Service and Marketing Process
Through our years of experience, we have obtained valuable resources and the experience to formulate a project management plan that works for each indiv idual client, and it is called the Defined Client Service and Marketing Process . Our process is “one-size does not fit all.” Our uniqueness lies in our Defined Client Service and Marketing Process. To ma ke this all happen, our service team is available 24/7 to help you plan the best service and product for your needs.

Our Defined Client Service and Marketing Process, a technical practice we employ with all our clients, is the framework for our business approach. Purposefully, this process begins with transition planning, and includes an in-depth risk management analysis, in addition to service and marketing activities. This approach provides consistency in quality service, checkpoints and timelines for monitoring our jointly agreed upon service standards, and ensures the appr opriate planning occurs well in advance of the expiration date. We will work closely with the City to ensure that this process aligns with the City’s goals.

We have provided a step-by-step description of this process and the chart that follows is an illustration of the Defined Client Service and Marketing Process.

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PROPOSAL SUBMITTALS
Renewal Strategy Meeting (120 Days Prior to Renewal)
At least 120 days before your major renewal date, we will coordinate a Renewal Strategy Meeting. This year we had our discussion in March to:
› Review and discuss the City’s existing insurance pr ogram, and as necessary recommend changes to terms, conditions, or coverage and limits to insure adequate protection for the City assets. Discuss po tential coverage gaps and concerns.
› Analyze and discussed deductibles and/or self-insured retentions. On all lines of coverage.
› Discuss the results of the previous year.
› Discuss any changes that took place at the City to determine if changes need to be made to their insurance placements.
› Update the City on the current insurance market.
› Discuss recent renewal results for similar clients.
› Provide an analysis of viable underwriter alternati ves, their capacity, and deductible preferences.
› Discuss marketing of all lines of coverage inside and outside Alliant programs. › Obtain your thoughts on the desirability of any particular market, i.e., your past history with that carrier, the carrier’s financial rating, etc. › Discuss renewal pricing ranges for all coverage bei ng purchased by the City.

Delivered budget estimates for the coming year.
› Suggest a renewal timeline and renewal options.

Our goal is to provide you with a concise report outlining our mutually agreed upon work plan.

As noted above, the Strategic Planning Meeting is designed to evaluate our performance, review the results of your renewal, discuss any new operations or acquisitions you are contemplating, identify new and emerging risks, upd ate you on recent market conditions/trends, and plan our next renewal strategy meeting.

Underwriting Submission & Presentation (90 days prior to renewal) The underwriting submissions we prepare are unrivaled in our industry. Our responsibility is to portray, with integrity, your unique Risk Pro file for each line of coverage. Your underwriters will know that our submission will portray your unique risks and operations correctly, succinctly and in a clear and easily und erstandable format. We encourage meetings between you and the underwriters.

Our goal is to distinguish you from your peers, and we do so by creating first class underwriting presentations that demonstrate your unique risk characteristics. We will help

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PROPOSAL SUBMITTALS
you structure the material and provide input and guidance on the graphic representation of your unique results, risks and operations.

The underwriting submission and the underwriter pre sentation will be available to the market at least 90 days prior to your renewal date. This year we started the process in early in February.

Underwriter Meetings (75 days prior to renewal)
We will coordinate all underwriter meetings benefiting the City and our renewal strategy.

Where possible, we would encourage you to participate in these meetings.

Negotiations (60 days prior to renewal)
To execute a successful renewal, we must focus on t wo key areas – market canvassing and the exploration of options. At our Renewal Strategy Meeting, we will have reviewed the listing of all possible market alternatives, solicited your input, and agreed to those we want to approach. We will review alternative limit, retention and coverage structures. We will provide you with regular renewal updates to ke ep you informed and to get your approval and thoughts based on the underwriters’ responses and marketing information.

Renewal Proposal & Analysis (30 days prior to renewal)
We are aware that our clients want to have a bottom line comparison of all renewal alternatives and want to know the intricate details of each quotation. Therefore, our renewal proposals feature both an Executive Summary and a detailed Coverage Analysis section. Our analysis will help you make a more educated renewal decision.

Bind Coverage (Prior to renewal)
Once you have reviewed your renewal options and hav e selected an alternative, we will immediately process the following documents, all designed to be completed before your renewal date:
› Confirmations of Coverage
› Certificates of Insurance
› Claims Reporting Instructions
› Program Limits Charts (if applicable)

The goal is to present proposals and have bind orde rs several days in advance of the expiration.

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PROPOSAL SUBMITTALS
Desk Reference & Open Items Reports (Prior to renewal)
We will create a Desk Reference that will include a schedule of coverage for all policies bound, claims reporting instructions, and contact information for your dedicated service team.

We will begin Our Monthly Open Items Reports and me etings are formalized events helping both of us and your underwriters to stay focused on unresolved items as well as, to discuss new risks or operational issues.

Stewardship Report/Policy Delivery & Account Servicing (Post Binding) Part of the service process is to provide the City’ s with policies in a timely manner. All insurance policies will be compared to the specifications and proposals for accuracy. Once policies have been checked we will forward to the City.

We will determine dates for our quarterly meetings and get them scheduled. In addition, we will discuss the need for meetings in between in person or vertical to keep the City updated. Perhaps monthly to start.

Servicing throughout the year includes, budget estimates; periodic training on insurance and risk management issues; contract review and assistance with insurance requirements; verifying vendor compliance on as needed basis; administrative and clerical services such as invoicing; certificates of insurance; policy cha nges and endorsements; interpreting insurance policies; assisting/coordinating with the handling of claims; assisting in establishing insurable values; oral and written com munications and reports; assistance with Council letters on the various insurance renewals and addressing insurance and risk management questions and concerns as they arise.

Additionally, we can utilize our large client base to survey other public entities on specific questions, problems, or procedures, and sharing the information received from these surveys with all that participate. This provides a unique opportunity to share information and network with clients specializing in the same i ndustry. We can also provide benchmarking and modeling studies of specific expos ures, based on limits, retentions, total insurable values, etc.

Finally, Alliant often provides an Annual Stewardship Report to our public entity clients.

These reports will include:
› Executive Summary
› State of the Insurance Market
› Accomplishments and Activities
› Schedule of Insurance Policies in place including, Insurance Carrier, Coverage, Limits, SIR/Deductible and Premiums

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› Anticipated renewal terms and conditions and other indications of market conditions and anticipated changes
Recommendations for improved program design
› Action Plan
› Accounting as outlined by the City
› Alliant Service Team

Alliant will provide the City with a written Stewardship report by December 1st each year to discuss our results and get feedback from the City on our performance and areas where we can improve. Our number one goal is to provide the City with exemplary service.

Timeline of Events
The below table provides a sample summary of a service timeline that the City can expect from Alliant.

This timeline includes some of the major milestones in the renewal process included in our Defined Client Servicing and Marketing Process above. Please keep in mind during the transitional phase this timeline may need to be compressed depending o n when the City awards its contract to the selected broker. The service team will tailor this timeline with specific target dates to fit a compressed schedule or the needs of the City, as required.

PROJECT/TASK DATE COMPLETED BY NOTES
Going over
Statement of Values
5 months prior
to renewal
Alliant Review each location including
secondary characteristics that
may be known but not shown
on the statement of values.

Discuss with the City locations
to be added or taken off the
schedule
Current/Future
Construction Projects
4-5 months prior
to renewal
Alliant / City Discuss current builder’s risk
projects and upcoming
projects and develop a game
plan for obtaining insurance
coverage for these projects,
both old and new
Renewal Strategy
Meeting
4 months prior
to renewal
Alliant / City Alliant to memorialize and
send confirmation of direction
to TWU
Completed & Signed
Updated Statement
of Values
3-4 months prior
to renewal
City Finalize any locations to be
added or deleted or any large
values changes on a single
location

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PROPOSAL SUBMITTALS
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PROJECT/TASK DATE COMPLETED BY NOTES
Completed & Signed
Renewal Applications
3-4 months prior
to renewal
City Finalize and sign all
applications needed for liability
lines of coverage
Applications & Specs
Out to Markets
90 days prior to
renewal
Alliant
Renewal Proposal
Due to the City
45 days prior to
renewal
(no later than
May 15 th )
Alliant Summary of terms, limits,
deductibles, major exclusions
attached
Renewal Quote
Review Meeting
45 days prior to
renewal
Alliant / City Alliant to receive direction from
City
Final Renewal
Options Due to City
45 days prior to
renewal
Alliant Summary of terms, instruction
on subjectivities prior to
binding
Bind Orders Due
From City
10 days prior to
renewal
City Upon receipt, Alliant to bind
coverage with carriers
Renewal Binders &
Invoices Due to City
Prior to renewal Alliant Submitted to City
Renewal Certs with
Additional Insured
Endorsement
Pending
Prior to renewal Alliant Submitted to City
Program Renews Inception date
Policy(ies) Delivered
to City
45 days post
renewal
Alliant Policy(ies) proofed with
summaries and delivered to
the City
Property Appraisals
Completed
Ongoing Alliant Appraisals completed on all
locations for the year as
directed by City

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PROPOSAL SUBMITTALS
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Compensation can be handled in a variety of ways an d can be negotiable based on what the City prefers. We can transact placements on a commission basis, a flat fee, a fee plus commission, commission cap, fee plus commissions on new placeme nts, or a variety of other methodologies. We can even structure a merit-based approach. In any e vent, every dollar earned will be disclosed to the City.

Our fee would be determined by first estimating the anticipated commitment of time and related business expenses all of our team members will incur on behalf of the City. We next consider the level of senior executive involvement and the amount of i ntellectual capital that will be devoted to the engagement. Lastly, we benchmark the resultant fee to ensure consistency between similar clients and make adjustments where warranted.

Our proposed firm fixed fee for insurance brokerage services is noted below and is inclusive of all services to be rendered by Alliant as noted within this proposal. Additional lines of coverage (i.e. new placements) would be billed at the established commission cap of 10%.

TERM YEAR FEE
Year 1 July 1, 2023 – June 30, 2024 $92,500
Year 2 July 1, 2024 – June 30, 2025 $95,275
Year 3 July 1, 2025 – June 30, 2026 $98,133
Year 4 July 1, 2026 – June 30, 2027 $101,077
Year 5 July 1, 2027 – June 30, 2028 $104,110

Special Events and Vendors/Contractors Programs are not included within the fee schedule as these premiums are paid by the vendor or event holder.

Loss Control and Appraisal Services outside of thos e provided within our proprietary programs are available at additional discounted charges based on the required service. Loss Control via Alliant Business Services is available at a rate starting a t $150.00 per hour plus expenses. Appraisal service s are available at rates beginning at $250 per building.

We wish to emphasize our flexibility in working wit h the City in this area and are open to any alternatives the City may prefer.

Price Proposal
- 41 -

APPENDIX

A. Alliant California License
B. Service Team Resumes
C. Alliant Disclosures

RESPONSE TO RFP FOR BROKERAGE & CONSULTING SERVICES
CITY OF GARDENA, CA | APRIL 28, 2023
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APPENDIX

A. Alliant California License
Please refer to the following page(s).

RESPONSE TO RFP FOR BROKERAGE & CONSULTING SERVICES
CITY OF GARDENA, CA | APRIL 28, 2023

1 Calwornia Depa:rtment 01 1ns111:rance
A.LLIA NT 11"\FSL!R i!NCT SER l1ICES . IJ\T,C
Li. cense # OC36861

PuTS11..1an t to the requ iremerT1Jts of me State of Ca J' iiforn ia lnsur:ance Gode , ALLIANT INS URANG E SERV il.CES , INC . is authorized to act iin the lb ll' ow ing capaClity:

Lice nse
In surance Pro cluoe r
Quarifica tions
Acc ide nt & f-lea llh or Sfck ness
casua lty
Life
Property
Spec ial Li nes Smptus.liries Broker
Surp lus Li nes Bro.ke r
Vari able Ufe a11 ,d Va li al le Annu ity
Effec tive Date
09102 /1 '998

09/0211998
091 02119 98
09/'02 /1 998
09(02 11 998
091 02 /1 998
09,02/ 1'998
09!021 1998'
Exp irat ion Date
09l 30l 2024

Bus lness Actd'ress : JO1 B St reet , 6th Floor .

Ricarau Lara, Insurance Comm Tss ione r
- 43 -

Pfease nole : T o valida te,lhe acwra .cyd !his kensie yo u may reiri:ew ihe indMd ual or bus iness en.lit{s li cense record on the Gal ifo rni' B adment ,d' lnsu ranc s we bsite 91: www .insma nee .Cili.(!D\I"Oh. erJ; License sta'uJS.. " - 44 -

APPENDIX

B. Service Team Resumes
Please refer to the following page(s).

RESPONSE TO RFP FOR BROKERAGE & CONSULTING SERVICES
CITY OF GARDENA, CA | APRIL 28, 2023

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Courtney Ramirez, ARM
Senior Vice President
Public Entity Group
D | 949-660-8133
M | 949-226-4785
E | [email protected]

Courtney joined the Alliant Insurance Services team in 2006. Her expertise is in the public entity sector with an emphasis in municipalities including local governments and states, pooled risks, education, healthcare, and transit. Courtney enjoys a challenge and likes to think outside of the box. She has been heavily involved in finding solutions to address so me of the most unique needs of many of Alliant’s public entity clients. This includes establishing a platform to control costs for State lottery agenci es and developing the Alliant Deadly Weapons Response Program (ADRWP) for active shooter coverage.

Some of her clients include the State of Montana, State of Texas, Anne Arundel County (MD), the cities of Austin (TX), Las Vegas (NV), Sacramento (CA), an d Oklahoma City (OK), airports including Sacramento International, Will Rodgers (Oklahoma City) International, Austin-Bergstrom, Los Angeles World Airports, and a number of district/public hos pitals, transit agencies, and higher education/university risks. Courtney enjoys educating others and is proficient in reading contracts and providing recommendations for insurance requirements to mitigate risk for her clients.

Prior to choosing Alliant, Courtney was a sales associate for a small personal lines insurance brokerage firm. During these several years, she gained valuab le experience and was responsible for the production, marketing, and servicing of a sizeable book of individual policyholders. Being versatile, Courtney served in varying roles within Alliant including the management and day-to-day servicing of a large book of healthcare, real estate, educationa l institutions, and public entities. In addition, Courtney took on the added responsibility of bringing in new business.

Courtney earned her Bachelor of Science degree in B usiness Management and Leadership from Wisconsin Lutheran College in Milwaukee, Wisconsin. Licensed by the California Department of Insurance as a Fire and Casualty Broker Agent, Cour tney has completed many hours of continuing education. Courtney is licensed in multiple states nationwide as a non-resident as well. She earned her Associates in Risk Management (ARM), Certified Insu rance Counselor (CIC) and Certified Insurance Services Representative (CISR) designations. Courtney was named Power Broker by Risk & Insurance Magazine for the Public Entity Sector in February 2020 and a Rising Star by Risk & Insurance Magazine in May 2020.

When Courtney is not practicing her profession, she enjoys spending time with her husband and three children and maintaining a healthy lifestyle. Addit ionally, Courtney takes time to volunteer at the elementary school that her children attend.

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Sandra Omari
Account Manager Lead
Public Entity Group
D | 949-527-9814
M | 714-589-4864
E | [email protected]

Sandra joined the Alliant Insurance Services team i n 2017. Her early experience involved handling multiple lines of coverage for individual clients. Sandra has previously specialized in commercial auto, all lines of personal lines coverage, accident and health, and life insurance. Currently, Sandra is responsible for several Joint Powers Authority and School District public entity clients. In addition, she is responsible for handling clients’ questions rega rding coverages, policies, insurance binders, certificates of insurance, endorsements, assisting clients with coverage analysis, interpretation, contract review, and risk management.

Sandra Omari has over 12 years of insurance experie nce. Her experience includes working as a Customer Service Representative on personal lines accounts and Executive Account Representative for commercial auto and fleet accounts. Currently, in her role as Assistant Account Manager, she works on multiple lines of coverage for public entity clients.

Sandra Omari holds a Bachelor’s Degree in Business Administration from California State University, Fullerton. She is licensed by the California Depart ment of Insurance as a Fire and Casualty Broker- Agent, Accident and Health Agent, and Life Agent. S he has completed over 150 hours of continuing education. She currently holds her Notary Commission from the State of California.

When away from her duties at Alliant, Sandra enjoys spending time with her family, going to the beach, and running.

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Shawn Kraatz
First Vice President
Public Entity Group
D | 949-660-8117
M | 949-889-4708
E | [email protected]

Shawn joined the Alliant Insurance Services team in 2000. Shawn brings nearly 20 years of company, MGA, and retail brokerage experience. Shawn is an a ll lines property and casualty broker with core focus on public entity risks. Shawn has been able to utilize his varying background of carrier and retail experience to develop a variety of public entity specific programs and standalone placements for some of the country’s largest entities. Shawn has been a n active member with the National Association of State Retirement Administrators (NASRA), State Association of Counties Retirement Systems (SACRS), and one of several brokers who administer the largest public entity pool in the U.S., PRISM.

Shawn has been extensively involved with pension systems for nearly a decade. He developed the first national fiduciary liability program designed for public pension systems. It has been supported by the National Association of State Retirement Administra tors (NASRA) and has over 75 public pension systems participating. Shawn has worked with some o f the largest pension systems in the country in addition to working with many other state, county, and city plans across the country. Shawn is an active speaker on various panels with associations such as NASRA, NCTR, SCTR, and PARMA. Shawn is also the broker for six California counties and 12 California cities and districts.

Shawn is licensed by the California Department of Insurance as a Fire and Casualty Broker-Agent and has completed 100+ hours of continuing education. He holds licenses in ten other states. In addition, he has done course study work in both the CPCU and ARM.

When away from his duties at Alliant, Shawn enjoys spending time/traveling with his family, playing basketball, surfing, playing guitar, and coaching youth sports.

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Daniel Howell, J.D., ARM-P, CPCU
Senior Executive Vice President | Managing Director
Public Entity Group
D | 415-403-1426
M | 415-309-1243
E | [email protected]

Daniel joined the Alliant Insurance Services team i n 1998 following over a decade with Fred S. James and Sedgwick. He offers a wide breadth of expertise including the development, implementation, and management of property and casualty insurance and s elf-insurance programs. Daniel understands issues for entities with complex operations and is especially adept at building consensus among a broad array of stakeholders.

Daniel currently serves as the Managing Director fo r the Public Entity Group. Since joining Alliant, h e has served as Program Director for the California S tate University Risk Management Authority (CSURMA), and the broker for the University of California, State of California, Port of Seattle, and Port of Oakland, among many clients. His multi-line prop erty and casualty experience dates from 1987, when he started with Fred S. James, which later became a part of Sedgwick. His expertise ranges from professional liability, public officials liability, educator’s legal liability, excess workers’ compensation, to major property lines.

Daniel holds an A.B. in History from Stanford University and a Juris Doctorate from UC Hastings College of Law. He also possesses designations in good stan ding for both the Chartered Property Casualty Underwriter (CPCU) and the Associate in Risk Manage ment (ARM-P). Daniel is a licensed Property & Casualty retail and wholesale broker in several sta tes, and he is an active member of the State Bar of California.

When Daniel is not practicing his profession, he en joys spending time with his family and outdoor activities.

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Tim Leech, CSP, ARM
First Vice President | Director
Risk Control Consulting
D | 949-260-5008
M | 949-514-0367
E | [email protected]

Tim joined Alliant Insurance Services in 2010 to lead Alliant’s national risk control consulting practice.

He has over 25 years of experience in the environme ntal, health and safety field as a leader of staff, project manager and consultant. In his current capacity, Tim works closely with the Alliant underwriter and broker teams to ensure that staff deliverables are value added and contribute to client proactive loss mitigation strategies.

Tim is considered an industry generalist and is qualified in property and casualty risk control consulting.

He has significant experience in the following industries:
› Public Entity › Hospitality
› Academia › Waste & Trash Haulers
›
›
Healthcare
Manufacturing
› General Industry

Prior to joining Alliant, Tim worked for a competitor as a director in their global risk consulting practice.

During this time he acted as a consultant with glob al and large risk management clients, managed a regional claims and risk control staff and strategized total cost of risk reduction projects. His experience also includes working as a pipe fitter, engineering and design of fire protection systems, insurance loss control consultant and industry environmental, health and safety engineer.

Tim holds a Bachelor of Science degree in Fire Protection and Safety Engineering from Oklahoma State University. He also has obtained two Associate of S cience degrees in engineering related disciplines.

Tim is a certified Safety Professional and a licensed Property and Casualty Insurance Broker. In Addition, Tim is a member in good standing with an Associate in Risk Management (ARM) designation.

In addition to faith and family, Tim enjoys mountai n biking, training and competing in triathlons and is a member of the 50 Mile Ride for Project Rwanda planning team.

- 50 -

Dan Madej, ARe
Senior Vice President
Public Entity Analytics Group
D | 312-837-4735
M | 312-320-8437
E | [email protected]

Dan joined the Alliant Insurance Services team in J uly 2019, within the Public Entity Group. Dan currently serves as the Program Director for the ne wly formed Public Entity Analytics Group. His reinsurance background involved addressing the risk transfer and risk financing needs of national, super-regional, and single state insurance companies, MGA-driven programs, as well as public entity pools. His expertise spans from monoline placements to multi-line needs (liability, property, and workers’ compensation). In the past 10 years, Dan has dedicated his time to the (re)insurance needs of public entity pools, including introducing them to analytics-driven solutions, in which his clientele presence was nationwide.

Dan has spent his entire 20+ year career in the ins urance industry as a reinsurance broker. Prior to joining Alliant, Dan worked for global reinsurance brokers Guy Carpenter and JLT Re/Towers Perrin, starting his career with EW Blanch. While always a student of the business, he offers extensive experience and expertise in designing and placement of reinsurance programs for risk bearing entities such as insurance companies and public entity pools. As part of this background, Dan has worked with various reinsurance analytics offerings, including actuarially-driven structuring, target pricing and simulation capabilities, as well as portfolio management tools such as catastrophe modeling.

Dan holds a bachelor’s degree in Insurance and Risk Management from Indiana State University, as well as an Associate of Reinsurance (ARe™) designat ion from the American Institute for Chartered Property Casualty Underwriters. He is also a licensed Property & Casualty retail broker in several states.

Away from work, Dan enjoys spending his time with h is family, including his three kids’ sports and hobby adventures. He also spends time reading and engaged in outdoor activities including gardening and fishing.

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Robert A. Frey, RPA
Senior Vice President | Director
National Claims Advocacy
D | 415-403-1445
M | 415-518-8490
E | [email protected]

Robert joined the Alliant team in 2002 and created the Alliant Brokerage Claims Advocacy practice. He manages a team of highly trained professionals who provide technical claim service to various Alliant practice groups. Some of these groups include Public Entity, Healthcare, Commercial, and Real Estate.

In addition, he takes the lead handling large losses, complex losses, and losses with coverage disputes.

His expertise also covers real estate development and management and includes high-rise office risks, industrial office/manufacturing risks, hospitality industry, regional shopping centers, and strip mall shopping centers. Robert is well versed in claims h andling for construction risks including OCIP, high tech, biotech, and higher education clients. Curren tly, he serves as the Alliant client advocate for a ll aspects of the insurance claims process.

Robert is a seasoned professional who offers almost four decades of extensive experience handling property and casualty claims. His insurance career began with Bayly, Martin, & Fay. He then moved on to an advanced position with Morris & Associates, a nd then to a Claims Executive at Marsh Risk Services. Robert began leading the Claims Advocacy Practice team at Alliant over ten years ago. He is an in-demand speaker and frequently addresses audiences at risk management conferences including PARMA, the Building Owners Managers Association (BO MA), and the International Council of Shopping Centers (ICSC). He has been a guest speake r for the California State University Risk Management Authority (CSURMA) on multiple occasions. In addition, Robert was an instructor at the College of Alameda where he taught classes on perso nal insurance coverage, claims handling, and adjusting.

He is a charter member of the Registered Professional Adjusters Program as a Registered Professional Adjuster (RPA) and is a former faculty member of the International Council of Shopping Centers (ICSC).

When Robert is not handling claims, he spends time with his family. He enjoys basketball and for many years coached youth and woman’s teams. Recently, Ro bert added a few new interests that include learning to play piano and oil painting.

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Rachel Wrightson, J.D.

Senior Vice President | Regional Claims Director
National Claims Advocacy
D | 415-403-1497
M | 628-255-0700
E | [email protected]

Rachel Wrightson is Senior Vice President and Regio nal Claims Director, based in Alliant Insurance Services’ San Francisco office. An experienced lawy er and veteran claims and insurance coverage expert, Rachel joined Alliant in October 2017 and w orks with Alliant’s diverse client base to guide, manage and resolve a broad range of claims from inception to resolution.

Rachel is a lawyer, advisor and skilled problem-sol ver who joined Alliant with experience litigating complex coverage matters and managing hundreds of c laims during her multifaceted career. Her professional background includes positions as a law yer in private practice, in-house counsel, risk manager, and insurance professional, with experience in both the private and public sectors.

Rachel has 11 years of experience practicing law at major New York City-based law firms, with a primary focus on policyholder representation in insurance coverage disputes. She has first-chair experience in dispute resolution and discovery proceedings, havin g honed her skills as a litigator and counsel for insureds in multiple industries and across various coverage lines.

Immediately prior to joining Alliant, Rachel was an in-house lawyer and risk manager as the Assistant Director, Claims, at New York University, one of th e nation’s largest private universities. There, she administered NYU’s large-deductible captive insuran ce program and managed a broad portfolio of claims that included educator’s legal liability, pr ofessional liability, employment, general and automobile liability, construction, complex property, builder’s risk, cyber, and others. She also managed and oversaw NYU’s workers compensation claims team.

In addition to her work with the University, Rachel handled malpractice claims arising from the NYU Student Health Center and the Colleges of Dentistry and Nursing, and general liability, builder’s risk and property claims for NYU Langone Health System. She was also part of the team that secured $1.13 billion in FEMA assistance for Superstorm Sandy rec overy for NYU Langone Health System; this was the second-largest FEMA award ever granted for a si ngle project and was received in a lump sum ($540m for repairs, $589m for mitigation). Rachel a lso oversaw NYU Langone Health System’s catastrophic claims submission, preparation and litigation arising from Superstorm Sandy.

Rachel has a bachelor’s degree from Northwestern Un iversity and a law degree from Brooklyn Law School. She is also a licensed property and casualty broker in the State of California.

Rachel is an avid runner, having completed numerous marathons, including 12 ultra-marathons.

- 53 -

Elaine Tizon
Assistant Vice President | Claims Advocate Lead
National Claims Advocacy
D | 415-403-1458
M | 415-609-2133
E | [email protected]

Elaine joined the Alliant Insurance Services team i n 2005. Elaine is currently the Lead Claims Account Advocate for the Alliant Specialty Group, covering their San Francisco, Sacramento, and Newport Beach public entity operations. Elaine acts as an advocat e for Alliant clients, assisting them with their cl aim needs.

Elaine has over 20 years of experience working for insurance companies. She joined Alliant’s San Francisco after nine years as a Customer Service Re presentative with Chubb Group of Insurance Companies. Her duties included researching administ rative problems for core team members, managed the Los Angeles branch manual checks, handl ed Arco employee’s relocation claims, investigated any discrepancies, and negotiated settlement amounts. Elaine began her insurance career in 1992 at Fleming and Associates wherein she assis ted two worker’s compensation claims adjusters.

She then worked for Cigna Property and Casualty Ins urance Companies in 1994-1996, as a technical assistant. She assisted the property and casualty c laims adjusters in preparing and processing payments, setting up new losses, and obtaining coverage information for the claims department.

Licensed by the California Department of Insurance as a Fire and Casualty Broker-Agent. Elaine has achieved her CISR designation and currently in the process of completing her AIC (Associate in Claims) designation.

RESPONSE TO RFP FOR BROKERAGE & CONSULTING SERVICES
CITY OF GARDENA, CA | APRIL 28, 2023

APPENDIX
- 54 -

C. Alliant Disclosures
Please refer to the following page(s).

RESPONSE TO RFP FOR BROKERAGE & CONSULTING SERVICES
CITY OF GARDENA, CA | APRIL 28, 2023

APPENDIX
- 55 -

DISCLOSURES
A. Surplus Lines Fees and Taxes. In certain circumstances, placement of insurance services made by Alliant Insurance Services, Inc. (“Alliant”) on behalf of a client, with the prior approval of that client, may require the payment of surplus lines assessment s, taxes, and/or fees to state regulators, boards, and associations. Such assessments, taxes, and/or fees will be charged to the client and identified separately on invoices covering these placements. The client shall be responsible for all such assessments, taxes, and fees, whether or not s eparately invoiced. Alliant shall not be responsible for the payment of any such fees, taxes, or assessments, except to the extent such fees, taxes or assessments have already been collected from the client.

B. Third Party Brokers. Alliant may determine from time to time that it is necessary or appropriate to utilize the services of third party brokers (such as surplus lines brokers, underwriting managers, London market brokers, and reinsurance brokers) to assist in marketing the insurance programs of a client. These third party brokers may be affiliates of Alliant (e.g., other companies of Alliant that provide services other than those included within the scope of services covered in this proposal), or may be unrelated third party brokers. Compensation to such third party brokers will not be part of Alliant’s fee.

C. Indirect Income. “INDIRECT INCOME” means insurance carrier contingency arrangements. Alliant will accept these compensation incentives from insurers, if any, including contingent commissions, market service agreements (MSA), volume-based commission incentives and rebates on business placed on behalf of a client. Alliant producers who solicit, negotiate, or place insurance products, or services for clients, do not negotiate indirect income agreements with the carriers, nor do they receive any portion of the indirect income paid to Alliant. Nonetheless, the client may opt-out of having its premiums included in the calculation of indirect income by accessing the “opt-out” form from the link on Alliant’s website: http://alliantinsurance.com/Legal-Notices/Pages/Disclosure- Policy.aspx . The “opt out” provision applies only to those acc ounts served directly by Alliant as a retail agent or broker. It does not apply to account placements for which Alliant’s role is that of a wholesaler, MGA, or program administrator working w ith non-Alliant brokers who represent the client. Indirect Income, if any, is determined by i nsurance carriers, and if the client does not opt- out, it remains the carriers’ exclusive decision to include or exclude certain premiums in any calculation. The availability of information regarding the make-up of any indirect income payment is at the carrier’s discretion.

D. Alliant Specialty Insurance Services (ASIS). In addition to the compensation that Alliant receives for providing services to a client, its related ent ity, Alliant Specialty Insurance Services (ASIS) an d its underwriting operations, Alliant Underwriting S ervices (AUS), may receive compensation from Alliant and/or carriers for providing underwriting services. The financial impact of the compensation received by ASIS is a cost included in the premium. Compensation received by ASIS will be disclosed in writing to a client. Alliant and ASIS maintain an arm’s length relationship. While Alliant represents a client as an individual entity, ASIS independently administers its program as a whole and not on behalf of any particular member.

City of Gardena
Gardena City Council Meeting

AGENDA REPORT SUMMARY
Agenda Item No. 12.E
Section: DEPARTMENTAL

ITEMS - ADMINISTRATIVE

SERVICES
Meeting Date: June 27, 2023

TO: THE HONORABLE MAYOR AND MEMBERS OF THE GARDENA CITY COUNCIL AGENDA TITLE:

Authorize the City Manager to Purchase and Bind Insurance Coverage in the amount of $2,130,152.04 for Fiscal Year 2023-2024
COUNCIL ACTION REQUIRED:

Staff Recommendation: Authorize the City Manager to Purchase and Bind Insurance Coverage in the amount of $2,130,152.04 for Fiscal Year 2023-2024 RECOMMENDATION AND STAFF SUMMARY:

The City of Gardena is self-insured for General Liability and Workers Compensation insurance and obtains excess insurance coverage for extraordinary exposure for both. In addition, the City purchases Commercial Property insurance, Commercial Crime insurance, Deadly Weapons Response Program insurance, and Excess Cyber insurance coverage.

The City works with its insurance broker Alliant Insurance Services, Inc to procure insurance coverages that balances the City's risk exposure while maintaining reasonable annual insurance premiums. The Liability Insurance and Excess Workers compensation insurance were obtained through the City's Joint Power's authority Public Risk Innovation, Solutions, and Management (PRISM), PRISM is recognized as a leader and pioneer in the risk management industry with over 40 years experience in the industry.

T
he Liability Insurance premium for the City increased from the prior year's amount of $692,718 to $1,035,845, an increase of $343,127 or 50%, primarily as a result of Gardena’s positional jurisdiction. The Excess Workers compensation insurance premium for the City increased from the prior year's amount of $150,892 to $161,928 an increase of $11,036 or 7%, as a result of increasing costs related to an aging workforce, medical cost inflation and increases in payroll. The City's Commercial Property Insurance premium which is covered through the Alliant Property Insurance Program (APIP) increased from the prior year's amount of $200,107 to $286,011.73 an increase of $85,90.73 or 43% as a result of increases in property values being covered and a challenging property market. The City added additional excess Cyber liability coverage this year which provides an additional $1 million in coverage for an annual premium of $36,927.31. The remaining City annual insurance coverages include Commercial Crime and Deadly Weapons Response which increased from the prior years total of $8,968 to $12,349 an increase of $3,381 or 37%
primarily
as a result of market increases
as a whole.

Gtrans obtains its excess liability and vehicle physical damage insurance separately through the California Transit Systems Joint Powers Authority also know as the California Transit Indemnity Pool (CalTip). This pool is the result of the cooperative efforts of public transits acting collectively to meet their insurance needs. CalTip was created in 1987 and began providing liability coverage and has since added vehicle physical damage program to meet the needs of its members. Gtrans excess liability coverage through CalTip decreased from the prior years amount of $555,087 to $540,898 a decrease of $14,189 or 3%. The Gtrans vehicle physical damage coverage through CalTip increased from the prior years amount of $53,711 to $56,193 an increase of $2,482 or 5%.

Staff recommends that the City Council authorize the City Manager to purchase and bind insurance coverages for Fiscal Year 2023-2024 at a total cost of $2,130,152.04 (See attached Exhibit A for Insurance Coverage details).

FINANCIAL IMPACT/COST:

Fiscal Year 2023-2024

FUND TYPE
AMOUNT
Liability Fund
$1,260,056.03
Workers
Compensation
Fund
$111,204.52
Gtrans Fund
$758,891.49

Total
$2,130,152.04

ATTACHMENTS:

EXHIBIT A- Insurance Coverages 2023-2024.pdf

APPROVED:
___________________________________
Clint Osorio, City Manager
# Effective Date Expiration Date Coverage Line Insurance Company Coverage Deductible/SIR 23/24 Annual Premium 1 7/1/2023 7/1/2024 Commerical Property APIP - Various Carriers $100,000,000 $10,000 $286,011.73 2 7/1/2023 7/1/2024 Commerical Crime (ACIP) AIG $2,000,000 $10,000 $4,432 3 7/1/2023 7/1/2024 Deadly Weapon Response
Program Lloyd’s of London $500,000 $10,000 $7,917
4 7/1/2023 7/1/2024 Liab ility Insurance for City PRISM $25,000,000 xs SIR $750,000 $1,035,845 5 7/1/2023 7/1/2024 Excess Workers Compensation PRISM Statutory Limit $750,000 $161,928 6 7/1/2023 7/1/2024 Excess Cyber Palomar Excess and Surplus Insurance Company
$1,000,000 xs $2M
(APIP Cyber) Follows APIP Cyber $36,927.31
7 7/1/2023 7/1/2024 GTrans Excess Liab ility CalTIP $25,000,000 xs SIR $250,000 $540,898.00 8 7/1/2023 7/1/2024 GTrans Vehicle Physical
Damage CalTIP $56,000,000 $5,000-10,000 $56,193.00
TOTAL $2,130,152.04

EXHIBIT A
City of Gardena - Insurance Coverages 2023-2024

City of Gardena
Gardena City Council Meeting

AGENDA REPORT SUMMARY
Agenda Item No. 13.A
Section: DEPARTMENTAL

ITEMS - COMMUNITY

DEVELOPMENT
Meeting Date: June 27, 2023

TO: THE HONORABLE MAYOR AND MEMBERS OF THE GARDENA CITY COUNCIL AGENDA TITLE:

PUBLIC HEARING: RESOLUTION NO. 6636
, For Vesting Tentative Map #1-
22 (VTM #1-22) in accordance with Gardena Municipal Code Chapter 17.08, for the subdivision of airspace to create five condominium units for a property located in the Medium Residential Multiple-Family Residential (R-3) Zone that qualifies for an exemption for CEQA pursuant guidelines Section 15061(B)(3)
Project Location: 1715 West 149th Street (APN: 6103-022-091) Applicant: FM Marketing & Properties, LLC
COUNCIL ACTION REQUIRED:

Staff Recommendation: Conduct a Public Hearing, allow three (3) minutes for each speaker, and
Adopt
Resolution No. 6636.

RECOMMENDATION AND STAFF SUMMARY:

On May 16, 2023, the Planning and Commission held a duly noticed public hearing for the subdivision of airspace to create five condominium units on the property at 1715 West 149th Street. At the end of the public hearing the Commission voted 4-0-0, adopting Resolution No. 9-23 and approving the project.

On May 23, 2023, Mayor Pro Tem Paulette Francis called for review of the project, which was seconded by Councilmember Wanda Love.

The staff report, resolution, and staff presentation provided to the Planning Commission are attached for further information regarding the project. An updated staff report has been prepared to show how the project is meeting the findings for approval of a vesting tentative tract map.

FINANCIAL IMPACT/COST:

None.

ATTACHMENTS:

Planning Commission Staff Report, Resolution, and Presenation.pdf City Council Staff Report.pdf
Attachment A - Resolution No. 6636.pdf
Exhibit A: Conditions of Approval.pdf
Exhibit B: VTM 83979 (VTM #1-22)
Attachment B - Public Hearing Notice.pdf

APPROVED:
___________________________________
Clint Osorio, City Manager

CITY OF GARDENA

PLANNING AND ENVIRONMENTAL QUALITY COMMISSION

STAFF REPORT
VESTING TENTATIVE MAP #1-22
AGENDA ITEM #6.B
DATE: May 16, 2023
TO: Chair Henderson and Members of the Planning and Environmental Quality Commission
FROM: Greg Tsujiuchi, Community Development Director
PREPARED BY: Kevin La, Planning Assistant

APPLICANT: FM Marketing & Properties, LLC (dba FM Marketing) Represented by: Fahim Mansour
LOCATION: 1715 West 149th Street (APN: 6103-022-091)
REQUEST: A request for a vesting tentative map per Chapter 17.08 of the Gardena Municipal Code, for the subdivision of airspace to create five condominium units for a property located in the Medium Residential Multiple-Family Residential Zone (R -3) zone and direct staff to file a Notice of Exemption pursuant to Guidelines section 15061(b)(3).

BACKGROUND/SETTING
On November 28, 2022, the City received an application requesting the approval of a new vesting tentative map for the subdivision of the property at 1715 W. 149th Street to create five condominium units. The subject property is a 14,934 -square-foot interior lot located on the north side of West 149th Street, between Western Avenue and Harvard Boulevard (Figure 1 – Zoning Map). The subject property previously received approval of a tentative map and a site plan review involving the development of a three -story townhome-style building with five units and the subdivision for condominium units. The building itself is already under construction.

Site Plan Re view #1-18 (SPR #1 -18) and Tentative Map #1 -18 (TM #1 -18 or Tentative Tract No. 82017) were originally approved by Planning Commission on July 3, 2018. In accordance with the conditions of approval by the Commission for Tentative Tract No. 82017, the final map was required to be recorded with the Los Angeles County Recorder’s office within two years of the approval date. However, on December 2020, due to delays caused by the COVID-19 pandemic, the State passed a law giving an automatic 18-month Resolution #9-23; VTM #1-22
May 16, 2023

Page 2 of 8 ends

extension for all entitlements involving the development of housing units, includ ing approvals of subdivision maps . Therefore, the Planning Commission’s approval of Tentative Tract Map No. 82017 was set to expire on January 3, 2022.

On January 12, 2022, FM Marketing & Properties, LLC (FM Marketing), purchased the property from ANCOR Incorporated, the original applicant for Tentative Tract Map No. 82017. At that time the Commission’s approval for the subdivision had already expired and FM Marketing was unable to record a final tract map. Now FM Marketing, the current applicant, is requesting approval for a new vesting tentative map, Vesting Tentative Map #1-22 ( Vesting Tentative Tract Map No. 83979 ), to create five -condominium lots, as previously approved.

It should be noted that Site Plan Review #1-18 was utilized within a timely manner under the Planning Commission’s original approval.

PROJECT DESCRIPTION
The subject property is a 14,934-square-foot interior lot located in the Medium Density Multiple-Family Residential (R -3) zoning district and is also surrounded by Medium Density Multiple -Family Residential (R -3) zoning to the north, east, south, and west.

Adjacent land uses include multifamily and single-family dwelling units (Table 1). The site is currently under construction for the development of the townhome-style building with five units, each having a living area of 2,055 square feet . Each unit will be three stories:
garage parking, one bedroom, one bathroom on the first floor, kitchen and living room on the second floor, and two to three bedrooms on the third floor. Additionally, each unit will have private patios on the first floor and a private balcony on the second floor. Communal open space will be provided in the northeast corner of the property (Figure 2 – Site Plan).

The applicant is propos ing to subdivide the airspace within each unit for condominium purposes. Additionally, as required by the Public Works department, the applicant’s proposal will include a seven-foot roadway easement to the City along West 149th Street, where the applicant will have to widen the street and eliminate part of the jut -out along the street. After this public right -of-way dedication, the subject property will have a total lot size of 14,283 square feet.

The applicant is requesting the approval of Vesting Tentative Map #1-22 for the subject parcel to create five condominium lots in accordance with Gardena Municipal Code (“GMC”) Chapter 17.08 . Staff recommends the Planning and Environmental Quality Commission approve the vesting tentative map. The analysis s upports the findings set forth in the accompanying resolution

Resolution #9-23; VTM #1-22
May 16, 2023

Page 3 of 8 ends

Figure 1 – Zoning Map

Table 1 – Surrounding Uses

Zoning
Designation
General Plan Land Use
Designation Existing Land Use
Project Site R-3 Medium Residential Vacant
North R-3 Medium Residential Multi-Family Units
South R-3 Medium Residential Single Family/ Multi-
Family Units
East R-3 Medium Residential Multi-Family Units
West R-3 Medium Residential Multi-Family Units
Resolution #9-23; VTM #1-22
May 16, 2023

Page 4 of 8 ends

Figure 2 – Site Plan

ANALYSIS
VESTING TENTATIVE MAP #83979 (#1-22)
The purpose of the tentative map review is to identify those conditions that should be applied to each parcel to ensure that each parcel is designed so as to comply with the State Subdivision Map Act and good design practices. As stated abov e, the applicant proposes a Vesting Tentative Map (TM) for the five-unit townhome project.

In accordance with the City of Gardena General Plan, including the Recreation Element, and in accordance with the Subdivision Map Act, specifically Government Code Section 66477, the City of Gardena requires either the dedication of land, the payment of fees, or a combination of both for the park or recreational purposes as a condition of the approval of a tentative or parcel map for residential subdi visions. When the Planning Commission approved the previous tentative map for the subject property, the dedication of land, or the payment of fees, was based on a formula that required a minimum acres of usable park area per 1000 persons residing within the subdivision. However, in 2020 the City Council adopted an amendment to Title 17 of the City’s Municipal Code that established a uniform fee of $10,000 per unit. Total in lieu park fees due is $ 50,000 and shall be paid in full to the City prior to the final map.

Resolution #9-23; VTM #1-22
May 16, 2023

Page 5 of 8 ends

The townhome parcels of the project will be regulated by specific covenants, conditions, and restrictions (CC&Rs) that are enforced by a Homeowners Association. The townhome owners will have m utual ownership of the “common” areas within the development and individual ownership of the “air space” within each unit. These areas will be delineated on a condominium plan document, which will be recorded by the County Recorder’s office along with the CC&Rs. The CC&Rs will be required to be reviewed and approved by the City Attorney’s office.

The State Subdivision Map Act includes a list of grounds for denial; if any one of the findings is made, the map must be denied:

1. That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans (§ 66474 and § 66473.5).

The Land Use Plan of the City’s General Plan, designates the project site as Medium Density Residential Density and the Zoning Map designates the property as Medium Density Multiple Family (R -3). The proposed project involve s five townhome units and is consistent with the Land Use Plan of the Community Development Element of the General Plan. Additionally, the Circulation Plan of the Community Development Element designates West 149th Street as a local street.

Local streets are designed to provide vehicular, pedestrian, and bicycle access to individual parcels. As conditioned, the applicant will be making street improvements that will be consistent with the Circulation Plan. Additionally, allowing the five-unit townhome project would be consistent with the following goal and policy of the General Plan:
• Land Use Plan LU Goal 1 – preserve and protect existing single-family and low/medium-density residential neighborhoods while promoting the development of additional high-quality housing types in the City.
• Land Use Plan LU Policy 1.4 – Locate new medium - and high -density residential development near neighborhood and community shopping centers with commensurate high levels of community services and facilities.

Allowing the subject property to be divided creates five new condominium units, providing for more opportunities for home ownership within the City.

There are no applicable Specific Plans.

2. That the site is not physically suitable for the type of development (§ 66474).

• The subject property is a 14,283-square-foot parcel that fronts West 149th Street to the south, and private property on all other sides. The townhome style structure was originally approved in 2018 under SPR #1-18, which showed that the development complied with the development standards of the R -3 zone per Gardena Municipal Code Chapter 18.16 as seen in Table-2.

Resolution #9-23; VTM #1-22
May 16, 2023

Page 6 of 8 ends

Table 1 – Development Standards
Standard Requirement Proposed
Density (Maximum)
17 units/acre 6 units
(Maximum)
5 units
Unit Size (Minimum)*
Three or more bedroom units 1,000 sq. ft. 2,055 sq. ft.

Setback (Minimum)
Front 20 Feet 20 Feet
Standard Requirement Proposed
Setback (Minimum)
Side 7.5 ft 19 ft
Side 7.5 ft 26 ft
Rear 7.5 ft 26.5 ft
Parking (Minimum)
Two or more Bedrooms
(2 spaces per unit)
10 spaces 10 spaces
Guest Parking
(0.5 space per unit)
3 spaces 3 spaces
Storage Space (Minimum)*
120 cubic feet per unit 120 cubic ft 1,000 cubic ft
Height (Maximum) 35 ft 32 ft
Open Space (Minimum)
Useable Open space (per unit) 600 sq ft 650-660 sq ft
Private Minimum (per unit) 150 sq ft 350-360 sq ft
Total 3,000 sq ft 3,265 sq ft
* Development standards for minimum unit size and minimum storage space was amended in 2020 for properties in the R-3 zone.

While the development on the site was not subject to these development standards at the time it was originally reviewed, the project still meets current standards.

Resolution #9-23; VTM #1-22
May 16, 2023

Page 7 of 8 ends

3. That the site is not physically suitable for the proposed density of the development (§ 66474).
• The site is 14,283 square feet, flat, and serviced by all necessary utilities.

The zoning of the property allows for 17 units per acre, or six units, and was approved for five units. The site also provides adequate ingress and egress.

Therefore, the site i s physically suitable for the type and density of the proposed development.

4. That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidable injure fish or wildlife or their habitat (§ 66474).
• The property is currently under construction for the five unit structure. There is no substantial natural environment, fish, or wildlife in the area which will be harmed by the proposed project. Furthermore, the subdivision has been designed to provide adequate access for pedestrians and vehicles, guests and residents, and emergency access. The five-unit condominiums are not expected to create environmental damage or public health problems.

5. That the design of the subdivision or type of improvements is likely to cause serious public health problems (§ 66474).

• The proposed subdivision will not cause serious public health problems as the density conforms to the R-3 zone and the permitted uses in the General Plan Zone and Land Use of the respective property.

6. That 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 (§ 66474).
• The proposed subdivision is designed so , as not to interfere with public access easements given that the applicant agreed upon a seven-foot-wide easement, to provide the City of Gardena, for public road and right -of-way purposes.

7. The design of the subdivi sion does not provide for, to the extent feasible, future passive or natural heating and cooling opportunities (§ 66473.1) • During winter, a north/south alignment of parcels provides for southern exposure to the winter path of the Sun. During the summer, prevailing winds are west/southwest from the north (Los Angeles International Airport) and west from the south (Torrance Airport). The general direction of these prevailing winds can be expected to allow the development to benefit from natural and passive c ooling opportunities in the summer. Therefore, the design of the proposed subdivision provides for the configuration of structures to provide for future passive or natural heating and cooling opportunities.

Resolution #9-23; VTM #1-22
May 16, 2023

Page 8 of 8 ends

There are no grounds upon which to deny the map. Therefore, with the conditions of approval, the subdivision and subdivision design will be consistent with the General Plan and State Subdivision Map Act as supplemented by Title 17 of the Gardena Municipal Code.

ENVIRONMENTAL ASSESSMENT
The proposed project qualifies for an exemption from the provisions of the California Environmental Quality Act ( CEQA), pursuant to Guidelines section 15061(b)(3) which states CEQA only applies to projects which have the potential for causing a significant effect on the environment and where it can be seen with certainty that there is no possibility that the activity will have a significant effect, the activity is not subject to CEQA.

The proposed project includes the subdivision of airspace within a five -unit townhome structure and does not add any physical development . The subdivision of airspace will not change the use or density of the property, therefore, it can be seen with certainty that there is no possibility that the project will have a significant effect.

Therefore, the project is exempt from CEQA.

NOTICING
The public hearing notice for Vesting Tentative Map #1-22 was published in the Gardena Valley News and mailed first class to owners and occupants within a 300 -foot radius of the site on May 4, 2023. A copy of Proof of Publication and Affidavit of Mailing are on file in the office of the Community Development De partment Room 101, City Hall and are considered part of the administrative record.

RECOMMENDATION
Staff recommends the Planning and Environmental Quality Commission to:
1) Open the public hearing;
2) Receive testimony from the public; and
3) Adopt Resolution No. PC 9-23 approving Vesting Tentative Map #1-22, subject to the attached conditions of approval, and directing staff to file a Notice of Exemption.

ATTACHMENTS
A – Resolution No. PC 9-23 with exhibits
Exhibit A: Conditions of Approval
Exhibit B: TTM 83979 (#1-22)
B – Notice of Public Hearing

Vesting Tentative Map #1-22
A request for a vesting tentative map per Chapter

17.08 of the Gardena Municipal Code, for the
subdivision of airspace to create five condominium
units for a property located in the Medium
Residential Multiple-Family Residential (R-3) Zone
and direct staff to file a Notice of Exemption
pursuant to Guidelines Section 15061(b)(3).

Project
Vicinity
Map
1715 W. 149th St.

Zoning
Map
Project Site
N

N
Site Plan
Existing Property

Vesting Tentative Map

 The subdivision of airspace to create five unit
condominiums require a vesting tentative map
 Gardena Municipal Code 17.08
 5 dwelling units permitted on the property in R-3 zone  Gardena Municipal Code 18.16.05.D
 Conditioned, by Public Works, for the applicant to include a 7-foot roadway easement to widen the street
Analysis
 The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA)
pursuant to Guideline Sections:
 15061(b)(3) - No significant environmental implications  Project includes the subdivision of airspace within a 5- unit townhome structure and does not add any physical
development
 Subdivision of airspace will not change the use or
density of the project; thus, no possibility that the project will have a significant effect
Environmental Considerations
 Public hearing notices were duly advertised in the
Gardena Valley News and mailed to owners and
occupants within 300’ of the project site on May 4, 2023.  To date, no letter regarding the project has been received Public Noticing

Page 1 of 5 ends

City of Gardena
City Council Meeting

AGENDA TITLE:

PUBLIC HEARING: For Vesting Tentative Map #1- 22 (VTM #1 -22) in accordance with Gardena Municipal Code Chapter 17.08, for the subdivision of airspace to create five condominium units for a property located in the Medium Residential Multiple- Family Residential (R -3) Zone that qualifies for an exemption for CEQA pursuant guidelines Section 15061(B)(3)
Project Location: 1715 West 149th Street (APN: 6103-022-091) Applicant: FM Marketing & Properties, LLC

RESOLUTION NO. 6636, Approving Vesting Tentative Map #1- 22 (VTM #1 -22) per Gardena Municipal Code Chapter 17.08, for the subdivision of airspace to create five condominium units for a property located in the Medium Residential Multiple- Family Residential (R-3) zone and directing staff to file a notice of exemption under the common sense exemption of CEQA guidelines Section 15061(b)(3)

RECOMMENDATION:

Staff respectfully recommends that Council conduct a Public Hearing, allow three (3) minutes for each speaker, and Adopt Resolution No. 6636.

BACKGROUND:

On May 16, 2023, the Planning and Commission held a duly noticed public hearing for the subdivision of airspace to create five condominium units on the property at 1715 West 149th Street. At the end of the public hearing the Commission voted 4-0- 0, adopting Resolution No. 9-23 and approving the project.

On May 23, 2023, Mayor Pro Tem Paulette Francis called for review of the project, which was seconded by Councilmember Wanda Love.

AGENDA STAFF REPORT

Page 2 of 5 ends

PROJECT DESCRIPTION
The subject property is a 14,934- square-foot interior lot located in the Medium Density Multiple-Family Residential (R -3) zoning district and as are all surrounding properties .

The site is currently under construction for the development of the townhome-style building with five units, each having a living area of 2,055 square feet. Each unit will be three stories: garage parking, one bedroom, one bathroom on the first floor, kitchen and living room on the second floor, and two to three bedrooms on the third floor. Additionally, each unit will have private patios on the first floor and a private balcony on the second floor.

The applicant is requesting the approval of Vesting Tentative Map #1- 22 for the subject parcel to create five condominium l ots in accordance with Gardena Municipal Code (“GMC”) Chapter 17.08.

ANALYSIS
VESTING TENTATIVE MAP #83979 (VTM#1-22)

The purpose of the tentative map review is to identify those conditions that should be applied to each parcel to ensure that each parcel is designed so as to comply with the State Subdivision Map Act and good design practices. As stated above, the applican t proposes a Vesting Tentative Map (TM) for the five-unit townhome project.

In accordance with the City of Gardena General Plan, including the Open Space Plan, and in accordance with the Subdivision Map Act, specifically Government Code Section 66477, the City of Gardena requires either the dedication of land, the payment of in- lieu fees, or a combination of both for the park or recreational purposes as a condition of the approval of a tentative or parcel map for residential subdivisions. In accordance with Resolution No. 6433, the applicant will be required to pay a total of $10,000 per unit. Total in lieu park fee for this project is $50 ,000. Payment will be paid in full to the City prior to final map recordation.

The townhome parcels of the project will be regulated by specific covenants, conditions, and restrictions (CC&Rs) that are enforced by a Homeowners Association. The townhome owners will have mutual ownership of the “common” areas within the development and individual ownership of the “air space” within each unit. These areas will be delineated on a condominium plan document, which will be recorded by the County Recorder’s office along with the CC&Rs. The CC&Rs will be required to be reviewed and approved by the City Attorney’s office.

The State Subdivision Map Act includes a list of grounds for denial; if any one of the findings is made, the map must be denied:

A. That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans (Government Code § 66474 and § 66473.5);

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The Land Use Plan of the City’s General Plan, designates the Property as Medium Density Residential Density and the Zoning Map designates the Property as Medium Density Multiple Family (R- 3). The Project involves five townhome units and is consistent with the Land Use Plan of the Community Development Element of the General Plan. Additionally, the Circulation Plan of the Community Development Element designates West 149th Street as a local street. Local streets are designed to provide vehicular, pedestrian, and bicycle access to individual parcels. As conditioned, the applicant will be making street improvements that will be consistent with the Circulation Plan. Additionally, the Project would be consistent with the following goal and policy of the General Plan:
• Land Use Plan LU Goal 1 – preserve and protect existing single- family and low/medium-density residential neighborhoods while promoting the development of additional high-quality housing types in the City.
• Land Use Plan LU Policy 1.4 – Locate new medium- and high-density residential development near neighborhood and community shopping centers with commensurate high levels of community services and facilities.

The Property would be divided to create five new condominium units, therefore, providing for more opportunities for home ownership within t he City. Approval of the vesting map allows the City to require CC&Rs to better insure that the property is well-maintain There are no applicable Specific Plans.

B. That the site is not physically suitable for the type of development (Government Code § 66474);
The Property is a 14,283- square-foot parcel that fronts West 149th Street to the south, and private property on all other sides. The townhome style structure was originally approved in 2018 under SPR #1-18, which showed that the development complied with the development standards of the R-3 zone per Gardena Municipal Code Chapter 18.16. Allowing the units under construction to be legally divided as condominiums does not change this analysis.

C. That the site is not physically suitable for the proposed dens ity of the development (Government Code § 66474);
The Property is 14,283 square feet, flat, and serviced by all necessary utilities. The zoning of the Property allows for 17 units per acre, or six units, and was approved for five units. The Property also provides adequate ingress and egress. Therefore, the site is physically suitable for the type and density of the development.

Allowing the units under construction to be legally divided as condominiums does not change this analysis.

D. That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidable injure fish or wildlife or their habitat (Government Code § 66474); The Property is currently under construction for the five-unit structure. There is no substantial natural environment, fish, or wildlife in the area which will be harmed by the project. Furthermore, the subdivision has been designed to provide

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Gardena City CouncilJune 27, 2023

Gardena City Council
June 27, 2023