La Palma City Council
November 5, 2024

Proposal for Cost Allocation Plan and Citywide Fee Study Page | 11
of community-supported services. Does the City want to continue to use precious tax dollars to support, for instance, a bathroom remodel and permitting inspection that only benefits a particular property owner or use those tax dollars on things that can only be supported by tax dollars, like police patrol and park maintenance? They will now have that information to be able to make that conscious choice.

Changing the discussion from fee increases to tax subsidy policy along with RCS’ experience in successfully presenting the results of similar studies to City Councils ensures that the City will be able to meet its policy objectives.

RCS will provide the City of La Palma with the requested printed and electronic copies of the final versions of the Cost of Services Study and Cost Allocation Plan, including related schedules and cost documentation in a format that can be edited and updated by City staff to accommodate desired changes.

Project Kick-Off
Task 1: Prepare City Data
RCS will review and prepare necessary files for the project. This includes obtaining and reviewing prior user fee reports and fee schedules, line-item budget details, salary schedules, MOUs and fringe benefit details.

Task 2: Kick-off Meeting
RCS will conduct a Citywide meeting, explaining the operational methodology of the study and the role of staff. We will review any possible issues that may arise as well as answer any questions from staff about the process. This meeting is crucial for the process as we want to ensure that everyone understands the various steps in the process and what is expected of them.

Cost Allocation Plan
Task 1: Identify Central Services and Allocate Staff Time RCS will meet with various departments to identify and review central services and allocate staff time and costs for those services. Examples of central services include payroll, risk management, and facility maintenance. City staff time involved in the meetings would be approximately 1-2 hours per central service department.

Task 2: Develop Allocation Factors
RCS will meet with City staff to develop the allocation factors for each central service identified in the above task. These factors will form the basis for determining fully burdened hourly rates and allocating central service costs. This meeting will be Docusign Envelope ID: 5A3C2188-F917-4EF7-8868-C7E1469B790D

Proposal for Cost Allocation Plan and Citywide Fee Study Page | 12
concurrent with the time allocation meeting. Though City staff involvement in data gathering is a function of the availability of the required information, RCS will develop allocation factors that are easily reproducible from year to year but still equitably allocate central service costs. RCS will calculate allocations to the functional centers and review the results with the managers of the various central service departments.

City staff time to review the results of the allocations will be less than 1 hour per department.

Task 3: Prepare and Review Draft Cost Allocation Plan with City RCS will prepare a Draft Report with allocations to end user departments using our 20-step allocation model. RCS will review this Draft Report with the City’s management, making any necessary adjustments to ensure that costs are allocated properly.

Task 4: Prepare Final Cost Allocation Plan
RCS will then prepare a Final Report with allocations to end user departments. These results will be used for the general overhead component of the Fee Study and can also be used to determine the amounts for transfers to the General Fund for support provided to other funds. RCS will provide the City’s requested number of printed copies, as well as a PDF file of the Overhead Cost Allocation Study. RSC will also provide a computer-based model for adjusting these fees and charges for the City’s current and future needs, providing an electronic copy of the final study that can be edited and updated as needed. RCS will consult with City Staff as necessary to defend the cost allocation plan in the event of audits or other challenges.

User Fee Study
Task 1: Review the Service List with Staff
RCS will review the service list through meetings with City staff. We will also work with Departmental staff to determine any changes to the fee calculation methods. The end result, whichever method is used, will be a fee structure that best fits the City going forward. While this list will change during the course of the Study as it is refined, it will be the initial basis from where we start. City staff time for this review will be approximately 1 hour per department.

Task 2: Staff Time/Contract Cost Allocations
RCS will interview personnel providing end-user services to ensure that costs from all functional areas directly involved with a service are included in the cost of that service. This component will form the bulk of the time spent by staff. There will be two to four meetings with supervisory level staff in each functional area to create and verify the amount of time spent by staff on the services identified in the task above.

Docusign Envelope ID: 5A3C2188-F917-4EF7-8868-C7E1469B790D

Proposal for Cost Allocation Plan and Citywide Fee Study Page | 13
We do not ask City staff to do our job by filling out forms detailing how they spend their time. This interactive process, and the fact that we allocate 100% of all departmental staff, ensures that the information being generated is valid and reliable.

Total time commitment per department varies from 2-20 hours, through a series of working meetings.

Task 3: Develop Fully Burdened Hourly Rates
RCS will develop a fully burdened hourly rate for each departmental employee, including salaries and benefits, miscellaneous operating services and supply costs, citywide overhead and departmental overhead.

Task 4: Prepare Draft Report
RCS will prepare a Draft Report that identifies the total costs for each service, along with current fees, and makes fee recommendations for each service presented as well potential new fees for services the City provides but does not charge for. Service costs will be compared with existing recovery levels. RCS will review this report with the departments so that each will have input on the fees presented in the Final Report.

City staff time would be approximately 1-2 hours per department for those departments that have fee services.

Task 5: Prepare Final Report
Based on staff input, RCS will prepare a Final Report, which will have recommendations for new fees, subsidy percentages and revenue projections from those fees. The Report will include text and summary tables that will clearly explain the results and the context. All recommended fees will comply with Propositions 4, 218, 26 and any other applicable laws. RCS will provide a PDF file of the Final Report.

Any Master Fee Schedule revisions will also be made available in Word, Excel and/or PDF formats. RSC will provide a computer-based model for adjusting these fees and charges for the City’s current and future needs, providing an electronic copy of the final study that can be edited and updated as the need arises and allowing for the requirements referred to in the City’s RFP. RCS will consult with staff as needed to defend the fee study in the event of audits or other challenges.

Task 6: Present Report to the City Council
RCS will assist City staff, the City Council in the review and adoption of revised service fees and subsidy percentages, at up to three public meetings. RCS will assist City staff in the implementation of the revised service fees.

Docusign Envelope ID: 5A3C2188-F917-4EF7-8868-C7E1469B790D

2905/001784-0004
17755573.6 a10/29/24

EXHIBIT B
-1-

EXHIBIT B
Budget and Fee Schedule
Docusign Envelope ID: 5A3C2188-F917-4EF7-8868-C7E1469B790D

Proposal for Cost Allocation Plan and Citywide Fee Study Page | 17

COST FOR SERVICES
Revenue & Cost Specialists propose the following project costs, with a NOT TO EXCEED AMOUNT OF $23,450.

Task Milestones/Deliverables Hours Total Cost
Cost Allocation Plan
Review Central Services/Times List of Central Services 8 1,400 Develop Allocation Factors Index of Allocation Factors 12 2,100 Initial Calculation Review Draft Cost Allocation Plan 8 1,400 Prepare Final Cost Allocation Plan Final Cost Allocation Plan 8 1,400 Cost Allocation Plan 36 $6,300
User Fee Study
Kick-Off Meeting Informational Meeting 3 525
Build Budget and Positions Schedule of Positions and Budget 8 1,400 Develop Service List Preliminary Service List 3 525
Develop Staff Time Allocations Time Detail Reports 22 3,850 Develop Fully Alloc. Hourly Rates Fully Alloc. Hourly Rate Reports 8 1,400 Prepare Draft Report Draft Fee Study Report 20 3,500
Prepare Final Report Final Report 28 4,900
Public Meetings Presentations 6 1,050
User Fee Study 98 $17,150
PROJECT TOTAL 134 $23,450
The above proposal is based on a cost of $175 per hour. The billing rate for any additional work not covered by this proposal would be $195 per hour. Our proposal covers all costs except for the following additional costs that the City may incur:
 Meeting attendance beyond those identified in this proposal.  Insurance coverage beyond our basic general liability and workers compensation requiring an additional premium. RCS standard coverage includes workers compensation pursuant to state law, comprehensive liability Insurance with a combined single limit coverage of $2,000,000 and professional liability insurance with a combined coverage of $2,000,000.

RCS will submit four equal invoices plus any miscellaneous costs from the previous paragraph. The first invoice will be submitted ten days after notice to proceed. Each invoice will be due within 30 days of submission.

Docusign Envelope ID: 5A3C2188-F917-4EF7-8868-C7E1469B790D

Agenda Item No. 12 November 5, 2024 | 1
City of La Palma
Agenda Item No. 12
MEETING DATE: November 5, 2024
TO: City Council
FROM: City Manager
SUBMITTED BY: Joseph Cisneros, Deputy City Manager
AGENDA TITLE: Approval of Upgrades for Citywide Information Technology (IT) Infrastructure
RECOMMENDED ACTION:

It is recommended that the City Council take the following actions to upgrade the City's Information Technology (IT) Infrastructure:

1. Approve and authorize the City Manager to execute an agreement to upgrade all City computers currently using Office 2019 to Office 365 for $14,040 annually, with a 5% annual increase for subscription services;

2. Approve and authorize the City Manager to execute a 36-month agreement with RingCentral to upgrade all City phones and phone support services for $18,200 annually;

3. Approve and authorize the City Manager to execute an agreement with Verve for 100M Dedicated Backup Internet Access at a cost of $8,100 annually;

4. Approve and authorize expenditures with Infinity Technologies to implement the IT infrastructure upgrades in the amount not to exceed $40,000 and

5. Appropriate and transfer $81,000 from the Information Technology Replacement Fund (IT Fund) unreserved fund balance to IT Fund's Office Equipment expense account (064-650- 8030-00000).

BACKGROUND:

City of La Palma employees depend on Information Technology (IT) infrastructure to fulfill various departmental duties and city obligations. In 2020, the City upgraded its computer software by purchasing Microsoft Office 2019, moving from the previous version, Office 2013, due to the end of support in 2023. Since then, staff have been closely monitoring the evolving IT landscape, recognizing the need to upgrade technology to ensure compatibility with ongoing support and Microsoft services.

The latest update to the IT Microsoft Office market is Office Microsoft 365, which is a subscriptionbased service that provides a comprehensive suite of productivity tools and applications for both

Agenda Item No. 12 November 5, 2024 | 2
personal and business use. It includes popular software such as Word, Excel, PowerPoint, and Outlook, along with cloud services like OneDrive and Microsoft Teams for collaboration and communication. Additionally, Microsoft 365 offers features like enhanced security, regular updates, and access to the latest versions of applications across multiple devices.

Additionally, due to advancements in Microsoft Office, staff is planning to upgrade the phone system, which is also due for an update. The current phone system, purchased in 2014, has been supported by a third-party vendor agreement. In recent years, the system and hardware have encountered issues, such as phone replacements and outages. To address these problems, staff aims to implement a cloud-based system compatible with Microsoft 365, transitioning the City from copper lines to fiber, which is considered a best practice in the industry.

ANALYSIS:

At the start of the Fiscal Year 2024-25, staff began researching various upgrades to the City’s IT infrastructure and communication equipment. The proposed upgrades include:
• Transitioning to Microsoft Office 365, which will enhance the efficiency and support of the City’s workstation office suites and email by moving them to the cloud. • Upgrading the City’s phone system, which is over 10 years old, to RingCentral. • Engaging a backup Internet Service Provider (ISP) to ensure emergency connectivity if the City’s current internet service experiences intermittent failures, allowing the City to maintain internet access and continue providing services during outages. • To implement these upgrades, the City has asked Infinity Technologies to assist and has been provided a 1-time cost of $40,000 to complete the upgrades, which are expected to take nearly 6 months to complete.

Monthly Annual
IT One-Time
Implementation
Costs
Year 1
Ongoing
(Beginning
FY25/26)
Microsoft Office
365 (Workstation
Tools and Email
Systems)
$1,170 $14,040 $25,000 $39,040
$14,742 (5%
annual
increase)
RingCentral
(Phone System
Services, Support,
and Maintenance)
$1,511 $18,128 $15,000 $33,128 $19,800
Verve (Backup ISP) $675 $8,100 $0 $8,100 $8,505
Total $3,356 $40,268 $40,000 $80,268 $41,375
Microsoft Office 365
Effective October 14, 2025, Office 2019 will no longer receive security updates or technical support from Microsoft. As a result, staff recommends that the City transition to the cloud version, which offers ongoing support and updates at a significantly lower cost compared to the initial $35,000 expenditure for Office 2019 and Exchange (email) licenses in 2020. This upgrade will also ensure continuous support from Microsoft for the City's email system, thereby reducing the support burden currently

Agenda Item No. 12 November 5, 2024 | 3
managed by the City's IT contractor.

Before transitioning to Office 365, the City reserved a .gov domain as mandated for all municipalities by federal requirements. In 2022, the Office of Management and Budget (OMB) directed all U.S. government agencies to adopt .gov or .mil domains to improve cybersecurity, build public trust, and ensure consistency across public-facing digital government platforms. This requirement aims to reduce the risk of phishing, fraud, and cyber threats by ensuring that government websites are easily identifiable, secure, and trustworthy for users. The directive emphasizes several key aspects:
• Security and Trust: The .gov and .mil domains are restricted to federal, state, local, and tribal government entities in the United States, making them a secure and recognized standard for government websites. This limitation deters bad actors from impersonating government entities on other domains, such as .com or .org, where phishing and spoofing attempts are more common.
• Compliance and Timeline: Agencies are given a specific timeline to transition fully to .gov or .mil domains, as the OMB seeks to standardize the digital presence of government entities.

This measure supports the Cybersecurity and Infrastructure Security Agency (CISA) in monitoring and safeguarding government online assets.
• Cost and Support: The federal government has allocated resources to support agencies during this transition, covering costs associated with acquiring a .gov domain and providing technical guidance to manage the change effectively.
• Consistency and User Experience: For citizens, a consistent use of .gov and .mil domains across federal, state, and local governments improves the online experience by making it easier to recognize legitimate government websites. This initiative is part of a broader move to standardize digital government services, ensuring citizens can easily and confidently navigate online government resources.

This directive represents an essential move to secure government digital communications, enhance public trust, and align all government entities with current cybersecurity standards. Through the OMB portal, the City has reserved the domain www.lapalmaca.gov, with the transition anticipated to occur in the first quarter of 2025.

RingCentral
In conjunction with the planned upgrade to Office 365, staff deemed it both prudent and proactive to seek bids to replace the City’s 10+-year-old phone system, which has experienced issues related to its age. Additionally, the City's third-party phone service vendor, PacketFusion, has advised the City to explore cloud-based communication platforms as replacements for its current copper wire lines, as support for these lines is expected to end soon as more municipalities move to cloud service. The City currently incurs an annual cost of approximately $7,600 for PacketFusion's phone service, and by moving the cloud the City would cease the need for on-going support through this vendor. In collaboration with the City's IT contractor, Infinity Technologies, staff solicited proposals from Dialpad, GoToConnect, and RingCentral, ultimately selecting RingCentral as the most capable and costeffective option for the City.

Monthly Service
Costs
(City Phone Lines)
AnnuallyService
Costs
(City Phone Lines)
Dialpad, Inc. $1,833.42 $22,001.04
GoToConnect $1,599.12 $19,189.44

Agenda Item No. 12 November 5, 2024 | 4
RingCentral $1,340.94 $16,091.16
RingCentral is a cloud-based communications platform that provides a range of business communication and collaboration tools, including voice, video conferencing, team messaging, and contact center solutions. Designed primarily for organizations, it allows employees to communicate seamlessly across various channels and devices. Key features include:
• VoIP and Phone System: Offers voice over IP (VoIP) services, virtual phone numbers, and call routing.
• Video Conferencing: Enables high-quality video meetings with screen sharing and other collaborative features.
• Team Messaging: Provides messaging channels for team communication, similar to tools like Slack.
• Contact Center: Includes features for customer service, such as call routing and CRM integration, often used in customer support operations.

RingCentral streamlines communication efforts within organizations, making it easier for staff to connect from different locations while supporting remote and hybrid work.

In addition to updating the phone service, staff recommends replacing the City’s existing Shortel phones, which are over 10 years old, with Yealink business phones, as recommended by RingCentral and the City's IT contractor. The estimated cost to replace 62 phones citywide is approximately $11,500, which would be covered through a monthly plan that includes a 3-year warranty and maintenance agreement. After the 3-year period, the City would own the phones and could choose to extend the warranty if desired.

Verve (Backup ISP)
Given the City’s reliance on the internet to deliver services and communicate with residents, staff recommends purchasing and implementing a backup Internet Service Provider (ISP) as an additional safeguard should the current internet service provider (Spectrum) experience downtime. This measure aligns with best practices for municipalities, especially as the City increasingly adopts cloudbased solutions for services like online permitting, agenda management, and the monthly newsletter.

Staff and Infinity Technologies sought bids for backup internet services, ultimately recommending Verve due to its capabilities, cost-effectiveness, and low installation costs.

Bandwidth
Verve
(Backup
ISP)
ACC
(Backup
ISP)
Spectrum
(Backup
ISP)
100M Fiber $675.00 $793.00 $525.00
250M Fiber $925.00 $1,037.16 N/A
500M Fiber $1,015.00 $1,224.00 $899.00
1Gig Fiber $1,295.00 $1,647.00 $1,049.00
Installation $0.00 $150.00 $250.00
Information Technology Replacement Fund
The City maintains an Information Technology Replacement Fund (IT Fund), with a current balance

Agenda Item No. 12 November 5, 2024 | 5
of approximately $1.2 million, dedicated to covering the full replacement value of the City’s technology infrastructure, ensuring a sustainable and reliable network for all departments. Through the annual budget process, each department is allocated costs for ongoing IT services, supporting consistent technological operations across city functions. Over time, the City has strategically set aside $125,000 specifically for the replacement of the City’s phone system and other essential technology upgrades.

To advance these initiatives, staff recommends that the City Council approve an appropriation of $81,000 from the IT Fund to cover the first year’s costs of these upgrades, ensuring continued access to vital technology resources without impacting other departmental budgets. Future ongoing expenses will be incorporated into the City’s annual budget to maintain and support this infrastructure.

FISCAL IMPACT:

Staff recommends that the City Council approve an appropriation and transfer of $81,000 from the unreserved balance of the Information Technology Replacement Fund (IT Fund) to the Office Equipment expense account (#064-650-8030-00000) within the IT Fund. With a current balance of approximately $1.2 million, the IT Fund will decrease by $81,000 to cover the project costs. The estimated expense for the first year totals $80,400. Starting in FY 2025/26, ongoing costs projected at $41,500 annually will be incorporated into future budgets, ensuring continued support and reliability of IT services across City departments.

ATTACHMENTS:

1. Zones CSP Agreement for Office 365 Subscriptions

2. RingCentral Enterprise Service Agreement

3. Verve Customer Service Order Form

CSPA 093022 CONFIDENTIAL INFORMATION ©2022 Zones, LLC
1 ZONES CLOUD SOLUTION PROVIDER AGREEMENT
This Zones Cloud Solutions Provider Agreement (“CSP Agreement”) by and between Zones, LLC (“Zones”), with an address at 1102 15th Street SW, Suite 102, Auburn, WA 98001-6524, and CITY OF LA PALMA with an address at 7822 Walker Street, La Palma, CA 90623, USA is effective as of 11/05/2024.

Zones sells subscriptions to certain on-line services hosted by Microsoft Corporation (“Microsoft”), including but not limited to Office 365 Services, Microsoft Azure Services, and Microsoft Intune Online Services (“Microsoft Services”).

Customer desires to purchase from Zones, and Zones desires to sell to Customer, one or more such subscriptions (each a “Subscription”) pursuant to the terms and conditions of this CSP Agreement.

This CSP Agreement sets forth the terms and conditions under which Customer will pay the amounts due on each invoice issued by Zones (“Invoice”) for Subscription(s) to certain Microsoft Services purchased under the terms of a separate agreement (“Sales Agreement”).

1. CUSTOMER CONTACT INFORMATION.
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
Contact
Phone # Email
Customer may update the contact information above by sending an email notification to the following email address:

[email protected]. After fifteen (15) calendar days, such updates will be reflected in the next Invoice.

2. PRODUCT INFORMATION.

Publisher/Suite Microsoft/ M365 Zones Order No.

Sales Agmt Type CSP Sales Agmt #

3. PAYMENT.

3.1. Payment Frequency. Customer authorizes payment according to the date and frequency set forth in the table below:

Monthly Subscription Monthly from the next business day following purchase or renewal
Annual (or Triennial) Subscription Annually from the next business day following purchase or renewal
Perpetual License One-time payment at the time of order or as otherwise agreed

3.2. Payment Method. Customer authorizes Zones to obtain payment from Customer as follows (mark a box):
☐ Customer agrees that, in the case of a perpetual license, a purchase order submitted by Customer authorizes Zones to submit an invoice for such purchase and Customer shall pay the amounts due thereunder. In the case of a subscription, an open account purchase order submitted by Customer authorizes Zones to submit Invoices in a recurring manner, as appropriate for the Services purchased and/or licensed under the Sales Agreement(s), and Customer shall pay the amounts due thereunder. * If a customer wishes to use any credit terms with Zones, it must elect this open account option.

PO Contact PO No.

Department Dept Address
☐ Customer authorizes Zones to charge Customer’s (separately provided) credit card for the amount due under each Invoice submitted by Zones, as appropriate for the Services purchased under the Sales Agreement(s).* Joseph Cisneros
(714) 690-3358 [email protected]

CSPA 091322 CONFIDENTIAL INFORMATION ©2022 Zones, LLC
2 Zones will contact Customer by telephone to obtain credit card information that will be used for payment due under the first month’s Invoice and that will be kept on file for payments due under later Invoices. [This option is available only for monthly installments, not annual installments. This option will result in immediate credit card charges upon processing of the monthly invoice by Zones] * Invoice amounts may vary depending on the number of active licenses and Services. Amounts invoiced in any given month will reflect the then-current number of active licenses, managed services, and/or proration charges.

4. TERM.

4.1. This CSP Agreement isin full force and effect, beginning on the Effective Date and continuing until the earlier of: (a) termination by either party following the attached Zones Standard Terms and Conditions; and (b) termination or expiration of the Sales Agreement (the“Term”).

4.2. For monthly licensing purchases, Zones may terminate this CSP Agreement on thirty (30) days’ prior notice sent to Customer’s address set forth above. Unless terminated as set forth in this Section, monthly licensing purchases will auto renew pursuant to the payment frequency of the previous subscription.

4.3. For yearly licensing purchases, either party may only terminate this CSP Agreement upon thirty (30) days’ notice prior to the annual renewal of the Effective Date with notice sent to the other party’s address set forth above. Unless terminated as set forth in this Section, yearly licensing purchases will auto renew pursuant to the payment frequency of the previous subscription.

5. INCORPORATED TERMS.

The following terms and conditions are hereby incorporated into this CSP Agreement by this reference:
• The Zones Standard Terms and Conditions that are attached hereto as Exhibit A; • The Zones Cloud Solutions Provider Quote that is attached hereto as Exhibit B; and • The Microsoft Cloud Agreement currently in effect and available for review at the Microsoft website accessed at https://www.microsoft.com/licensing/docs/customeragreement.

Each Party represents that this CSP Agreement is agreed and has been executed below by its duly authorized representative.

ZONES, LLC
By:

Name: Monique Elser
Title: Director, Supply Planning & Procurement
Date:

CITY OF LA PALMA
By:

Name:

Title:

Date:

CSPA 093022 CONFIDENTIAL INFORMATION ©2022 Zones, LLC
3 Exhibit A

ZONES STANDARD TERMS AND CONDITIONS

1. Any Pricing Subject to Change. The pricing set out in Zones Cloud Solutions Provider Quote is subject to change if Microsoft changes its pricing to Zones.

2. Subscription Cancellation. Certain licenses and/or Azure Subscription quantities can be increased or decreased at any time without penalty up to and including zero (0) subscriptions which will end billing, beginning as of the next billing cycle. Azure Subscriptions and CSP Legacy quantities of existing subscriptions can be increased or decreased at any time without penalty up to and including zero (0) units which will end billing, beginning as of the next billing cycle.

CSP NCE seat-based subscriptions can only be increased without penalty as of the next billing cycle during the CSP NCE agreement term (which may be month-to-month or have a 1- or 3-year subscription term). Decreasing quantities of CSP NCE seat-based subscriptions can only be applied upon renewal of the next CSP NCE agreement term.

3. Right to Use. Subject to the terms and conditions of this Agreement, Zones and its suppliers grant Customer the right to access and use the Services and to install and use any software included with Customer’s subscription for the Services, as further described in this Agreement. Zones and its suppliers reserve all other rights.

4. Prohibited Activities. Customer may use the Services only in accordance with this Agreement. Customer may not reverse engineer, decompile, disassemble, or work around technical limitations in the Services, except to the extent applicable law permits it despite these limitations. Customer may not disable, tamper with, or otherwise attempt to circumvent any mechanism that meters Customer’s use of the Services. Customer may not rent, lease, lend, resell, transfer, or host the Services, or any portion thereof, to or for third parties.

5. Acceptable Use. Customer shall comply with the then current acceptable use policy for the Services. Neither Customer, nor those that access any Services through Customer, may use the Services (a) in a way prohibited by law, regulation, governmental order or decree; (b) to violate the rights of others; (c) to try to gain unauthorized access to or disrupt any service, device, data, account or network; (d) to spam or distribute malware; (e) in a way that could harm the Services or impair anyone else’s use of it; or (f) in any application or situation where failure of the Services could lead to the death or bodily injury of any person, or to severe physical or environmental damage. Customer agrees that any violation of the terms of this section may result in Zones or its suppliers immediately suspending Customer’s use of the Services without liability to Customer.

6. Customer Data. Customer is solely responsible for the content of all data (including all text, sound, video, image files, and software) that are provided by or on behalf of Customer through use of the Services (“Customer Data”). Customer will secure and maintain all rights in Customer Data necessary for the Services to be provided to Customer without violating the rights of any third party or otherwise obligating Zones or its suppliers to Customer or to any third party. Zones and its suppliers do not and will not assume any obligations with respect to Customer Data or to Customer’s use of the Services other than as expressly set forth in this Agreement or as required by applicable law.

7. Responsibility for Customer’s Accounts. Customer is
responsible for maintaining the confidentiality of any
authentication credentials associated with Customer’s use of the Services. Customer is responsible for the actions of all individuals who use the Services through Customer’s account. Customer must promptly notify Zones and its suppliers about any possible misuse of Customer’s accounts or authentication credentials or any security incident related to the Services.

8. Support. Zones will provide commercially reasonable
operational and technical support to Customer for all Services ordered under this Agreement.

9. Fees and Payment. The initial fees for the Services are set forth on the applicable Zones Cloud Solutions Provider Quote. Fees for additional Services shall be charged by Zones at its then current rates. Customer shall pay all sales, use, value added, or other applicable taxes, duties, or similar charges except income taxes of Zones. All payments are due within 30 days after the date of Zones’ invoice unless other arrangements have been approved. Any amounts not paid when due shall accrue interest at 1.5% per month or the maximum amount allowed by law, whichever is less. Customer is liable to Zones for all reasonable fees and expenses, including reasonable attorney's fees, collection agency fees, and other costs that Zones may incur to collect invoiced amounts.

10. Software. To enable optimal access and use of certain Services, Zones or its suppliers may allow Customer to install and use certain software in connection with Customer’s use of the Services. Zones or its suppliers may check the version of the software Customer is using and recommend or download updates, with or without notice, to Customer’s devices. Failure to install updates may affect Customer’s ability to use certain functions of the Services. Customer must uninstall the software when Customer’s right to use it ends. Zones or its suppliers may also disable it at that time. Zones and its suppliers license software to Customer, they do not sell it. License transfers are not permitted.

11. Warranty Disclaimer. ZONES AND ITS SUPPLIERS MAKE NO

REPRESENTATIONS ABOUT THE SUITABILITY OF THE INFORMATION

CONTAINED IN THE MATERIALS PROVIDED IN CONNECTION WITH
THE SERVICES FOR ANY PURPOSE. ALL SUCH MATERIALS AND
SERVICES, ARE PROVIDED "AS IS" AND “WITH ALL FAULTS”
WITHOUT WARRANTY OF ANY KIND. ZONES AND ITS SUPPLIERS

HEREBY DISCLAIM ALL WARRANTIES AND CONDITIONS WITH

REGARD TO THE FOREGOING, INCLUDING ALL WARRANTIES AND

CONDITIONS OF MERCHANTABILITY, WHETHER EXPRESS, IMPLIED,

OR STATUTORY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON- INFRINGEMENT. THE SERVICES COULD INCLUDE TECHNICAL INACCURACIES OR TYPOGRAPHICAL ERRORS. ZONES AND ITS

SUPPLIERS MAY, BUT ARE NOT OBLIGATED TO, MAKE

IMPROVEMENTS AND/OR CHANGES TO THE SERVICES AT ANY TIME AND WITHOUT NOTICE TO CUSTOMER.

12. Limitation of Liability. IN NO EVENT SHALL ZONES OR ITS

SUPPLIERS BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL,

CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES OR ANY

DAMAGES WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR

PROFITS, WHETHER IN AN ACTION OF CONTRACT, NEGLIGENCE OR

OTHER TORTIOUS ACTION, ARISING OUT OF OR IN CONNECTION

WITH THE USE OR PERFORMANCE OF THE SERVICES, ANY

PROVISION OF OR FAILURE TO PROVIDE THE SERVICES, OR ANY INFORMATION AVAILABLE FROM THE SERVICES. THE AGGREGATE

LIABILITY OF ZONES AND ITS SUPPLIERS ARISING UNDER THIS AGREEMENT WILL NOT EXCEED ONE HUNDRED U.S. DOLLARS

CSPA 091322 CONFIDENTIAL INFORMATION ©2022 Zones, LLC
4 ($100.00 USD).

13. Indemnity. Customer agrees to indemnify, defend, and hold harmless Zones, and its officers, directors, shareholders, employees, contractors, agents, representatives, successors and assigns from and against any damage, claim, loss, expense (including reasonable attorneys’ fees and damage to any person or property), occurring as a result of (i) Customer’s use or inability to use the Services (including but not limited to claims: (A) for libel, slander, invasion of privacy, identity theft, or invasion or alteration of private records or data; (B) for infringement of patents, copyrights, or other intellectual property rights; (C) for security breaches of any kind; (D) for breach of applicable use policies; or (E) based on handling, storage, transmission or possession of information that contains viruses, malware or other destructive code, media or any unlawful content); (ii) Customer’s or its users’ reliance on the Services or on information obtained therefrom; (iii) Customer’s breach of this Agreement or any third party agreement or policy; or, (iv) Customers’ failure to obtain permits, licenses, or consents that Customer may be required to obtain to enable or use the Services.

14. Term and Termination. This Agreement will remain in effect for twelve (12) months from the Agreement Effective Date (“Initial Term”) unless earlier terminated assetforth herein. Upon expiration of the Initial Term and any Renewal Term, this Agreement shall automatically renew, aslong as there are active subscriptions on the account, for a period of one (1) year (each, a “Renewal Term”) unless either party gives thirty (30) days’ prior written notice of its desire not to renew the Agreement upon expiration of, as applicable, the Initial Term or current Renewal Term. Unless otherwise agreed upon by the parties, upon renewal of any subscription, such subscription will be governed by the terms and conditions set forth herein. In the event any Services are terminated early, Customerisliable to Zones for any accrued Service charges set forth in the applicable Zones Cloud Solutions Provider Quote(s) and any early termination fees imposed by its suppliers for the termination of any Services prior to the end of the subscription term. Zones or its suppliers may immediately suspend Customer’s use of the Services if: (1) it is reasonably needed to prevent unauthorized access to Customer Data; (2) Customer fails to respond to a claim of alleged infringement or violation of third party rights; (3) Customer does not pay any amounts owing to Zones or its suppliers when due; or (4) Customer violates any term or condition of this Agreement or any policy governing the Services.

15. Confidentiality. As used in this Agreement “Confidential Information” means all information of either party that is not generally known to the public, whether of a technical, business or other nature, that is provided by one party (the disclosing party) to the other party (the receiving party) and that has been identified as being proprietary and/or confidential or that by the nature of the circumstances surrounding the disclosure reasonably ought to be treated as proprietary and confidential. Confidential Information may include information originally disclosed to the disclosing party by its suppliers or other third parties. Each party agrees to retain in confidence, and to require its employees and contractors to retain in confidence, all Confidential Information of the other party and will make no use of such Confidential Information except pursuant to this Agreement. The receiving party will not disclose any Confidential Information of the disclosing party to any person other than its employees or contractors who need to know the same in the performance of their duties. The receiving party will protect and maintain the confidentiality of all Confidential Information of the disclosing party with reasonable care. The receiving party will be liable to the disclosing party for any non-compliance by its employees or contractors. Confidential Information does not include any information that (a) was in the receiving party's lawful possession prior to its disclosure by the disclosing party; (b) is later lawfully obtained by the receiving party from a third party not under an obligation of confidentiality; (c) is independently developed by the receiving party; or (d) is, or later becomes, available to the public through no breach of an obligation of confidentiality.

16. Miscellaneous.
a. Notices. Customer must send notices to Zones by mail, return receipt requested, to the address set forth on the signature page. Customer agrees to receive electronic notices from Zones or its suppliers, which will be sent by email to the account administrator Customer specifies. Notices are effective on the date on the return receipt or, for email, when sent. Customer is responsible for ensuring that the account administrator email address that Zones has is accurate and current. Any email notice that Zones sends to that email address will be effective when sent, whether or not Customer actually receives the email.
b. Assignment. Either party may assign this Agreement to an entity acquiring all or substantially all of such party’s assets; provided that neither such party nor such assignee entity shall be relieved thereby of obligations undertaken by such party prior to such assignment. Except with respect to the foregoing, neither party may assign any of its rights or obligations hereunder without the prior written consent of the other party. Any attempted assignment other than as expressly authorized hereunder shall be void and of no force or effect. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their permitted successors, assigns, heirs and legal representatives. c. Severability. If any part of this Agreement is held
unenforceable, the rest remains in full force and effect. d. Waiver. Failure to enforce any provision of this
Agreement will not constitute a waiver.
e. No Agency. This Agreement does not create an agency, partnership, or joint venture.
f. Applicable Law. This Agreement is governed by
Washington law, without regard to its conflict of laws principles.

Any action to enforce this Agreement must be brought in the state or federal courts sitting in Seattle, Washington. This choice of jurisdiction does not prevent either party from seeking injunctive relief in any appropriate jurisdiction with respect to violation of intellectual property rights.
g. Entire Agreement. This Agreement is the entire
agreement concerning its subject matter and supersedes any prior or concurrent communications. Zones objects to and expressly rejects any provisions additional to or different than the terms herein that may appear in Customer’s purchase order or any other prior or later communication from Customer unless such provision is expressly agreed to by Zones in a writing signed by Zones. h. Survival. The terms in Sections 2, 3, 4, 5, 7, 8, 9, 10, 11, 13, and 14 will survive termination or expiration of this Agreement. i. Export Jurisdiction. The Services are subject to U.S. export jurisdiction. Customer must comply with all applicable laws, including the U.S. Export Administration Regulations, the International Traffic in Arms Regulations, and end-user, end-use and destination restrictions issued by U.S. and other governments.

For additional information, see
http://www.microsoft.com/exporting/.
j. Force Majeure. Zones and itssuppliers will not be liable for any failure in performance due to causes beyond their reasonable control (such as fire, explosion, power blackout, earthquake, flood, severe storms,strike, embargo, labor disputes, acts of civil or military

CSPA 093022 CONFIDENTIAL INFORMATION ©2022 Zones, LLC
5 authority, war, terrorism (including cyber terrorism), acts of God, acts or omissions of Internet traffic carriers, actions or omissions of regulatory or governmental bodies (including the passage of laws or regulations or other acts of government that impact the delivery of Services).

CSPA 091322 CONFIDENTIAL INFORMATION ©2022 Zones, LLC
6 Exhibit B

ZONES CLOUD SOLUTIONS PROVIDER QUOTE
Customer:

Quote Date:

CRM ID:

Partner ID:

Cloud – Online Services
Part No. Item Description Quantity Months Price Per Item(s) Cost $ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
CSP Technical Support
Part No. Item Description Quantity Months Price Per Item(s) Cost $ $
$ $

ORDER TOTAL

TOTAL ORDER COST
$
*Item prices quoted in the tables above are guaranteed only through the end of the month of the Quote Date. *Pricing does not include applicable taxes, which are to be invoiced by Zones and paid by Customer. *Pricing is subject to change by Microsoft.
*Pricing applies only to the specific items and quantities specified in the tables above. *Pricing for consumption-based Microsoft Services is only a forecast and is subject to change based on usage.

CITY OF LA PALMA
10/07/2024
7086982
1116756
011637984 NCE Office 365 G1 (Governmental Community Cloud Pricing) P1Y-Annual 48 112.94 5,421.12 14,038.69
- -
Zones Account Team
CSS: John Davis
AM: Bill Younas
12 003911474 24x7 Admin Technical Support - Add-on licenses & Standalone Products
011637987
011638087
31 12 259.77 8,052.87
12 112.94 564.70

NCE Office 365 G3 (Governmental Community Cloud Pricing) P1Y-Annual NCE Power BI Pro (Governmental Community Cloud Pricing) P1Y-Annual 5

CSPA 093022 CONFIDENTIAL INFORMATION ©2022 Zones, LLC
7 ZONES CLOUD SOLUTIONS QUESTIONNAIRE
[To Be Completed by Customer]
Questions:

1. Do you have a current O365 tenant/environment?
If Yes, what is your current domain?
Current Domain ID: .onmicrosoft.com
If No, please provide 3 default domain options:

Domain ID Option 1: .onmicrosoft.com
Domain ID Option 2: .onmicrosoft.com
Domain ID Option 3: .onmicrosoft.com
Administrator(s) (O365/Azure) for NEW TENANTS ONLY*
Admin Name Admin Email Admin Permission Level

2. Do you have direct Microsoft licenses that need to be canceled? If Yes, identify them in the table below.

Subscription Name/Identifier(s) Quantities to Be Canceled* *For current tenants, administrators will remain the same.

Notes:

Zones’ technical support team will offer the following services during the onboarding call:

1. Creation of your Online Service Domain.

2. Assignment of your Online Service Administrator(s) and modification of such administrators throughout the Term of the CSP Agreement.

3. Assistance in cancelling your MOSP Online Services, if needed, based on Microsoft Services purchases.

Initial Order Form Page 1 of 3

INITIAL ORDER FORM
This Initial Order Form is a binding agreement between RingCentral, Inc. (“RingCentral”) and City of La Palma (“Customer” or “You”) (together the “Parties”), for the purchase of the Services, licenses, and products listed herein. This Initial Order Form is subject to and incorporates the terms and conditions of: (i) the separate written agreement, executed by the Parties governing the purchase of the Services described in this Order Form, or (ii) the RingCentral Online Terms of Service available at https://www.ringcentral.com/legal/eulatos.html, if there is no written agreement in place (hereinafter (i) and (ii) referred to as the “Agreement”). Capitalized terms not defined herein shall have the same meanings as set forth in the applicable Agreement between the Parties. Unless agreed by both Parties in writing, any terms or conditions set forth in a Customer-issued purchase order or ordering document shall not apply.

Please note that RingCentral MVP is now RingEX. All references to “RingCentral MVP”, whether in terms of service, advertising or product descriptions, mean “RingEX”.

Customer Service Provider
City of La Palma RingCentral, Inc.
7822 Walker St.,
La Palma, CA 90623
United States
20 Davis Drive
Belmont, CA 94002
United States
Joseph Cisneros
714) 690-3300
[email protected]
Service Commitment Period
Start Date: October 31, 2024
Initial Term: 36 Months
Renewal Term: 24 Months
Payment Schedule: Monthly

Initial Order Form Page 2 of 3
RingEX Services
Recurring Services
Summary of Service Qty Rate Subtotal
DigitalLine Unlimited Advanced 70 $17.95 $1,256.50
DigitalLine Unlimited Advanced $12.95
Compliance and Administrative Cost Recovery Fee $4.00
e911 Service Fee $1.00
DigitalLine Basic 6 $13.99 $83.94
DigitalLine Basic $8.99
Compliance and Administrative Cost Recovery Fee $4.00
e911 Service Fee $1.00
Yealink CP925 - Touch-Sensitive IP Conference Phone -
DaaS
6 $8.60 $51.60
Yealink T54W Prime Business Phone - DaaS
6 $2.38 $14.28
Yealink T46U Ultra-elegant Gigabit IP Phone - DaaS
49 $2.12 $103.88
Additional Local Number
1 $0.49 $0.49
Monthly Recurring Services* $1,510.69
Total Initial Amount $1,510.69
*Amounts are exclusive of applicable Taxes, Fees, and Shipping Charges.

Cost Center Billing
For customers with cost center billing, it is the customer’s responsibility to provide cost center allocation information to RingCentral at least 10 days prior to the issuance of the invoice. After the information is received, itwill be reflected on future invoices, but will not be adjusted retroactively on past invoices. If purchasing additional services through the administrative portal, it is the customer’s responsibility to assign cost centers at the time of purchase; otherwise, those services will not be allocated by cost center on the next invoice. Please note that cost center allocation is not available for certain items, such as minute bundles and credit memos. For additional questions, please contact the RingCentral invoice billing team at [email protected].

Customer Reference. Customer may promote their use of RingCentral services and agrees that RingCentral may identify customer as a user of the services. All press releases or quotes regarding Customer’s use of service will be pre-approved by Customer, which consent will not be unreasonably withheld.

Free Services Amount
Customer will receive 3,248.84 US Dollars (the “Free Service Amount”), which will be applied against charges for the recurring Services set forth in this Order Form and any applicable taxes and fees associated with those Services invoiced by RingCentral. The Free Service Amount is non-transferable and non-refundable and will expire upon termination of this Order Form. The Customer will be responsible for paying for any additional services and products ordered, and any applicable associated taxes and fees.

Add-on Services. Customer is responsible for reviewing additional terms and conditions that may apply to RingCentral add-on services (where available) and certain Advanced Support Services listed on this order form, and which are available at https://www.ringcentral.com/legal/add-on-services.html.

IN WITNESS WHEREOF, the Parties have executed this Initial Order Form above through their duly authorized representatives.

Initial Order Form Page 3 of 3
Customer RingCentral
City of La Palma RingCentral, Inc.

By: \RCsign1\ By:
<# <Image Select="//Internal_Signature"
Optional="true" Width=”2” Height=”1”/> #>
Name: \RCname1\ Name: Andrew Varasano
Title: \RCtitle1\ Title: Area VP Public Sector Sales
Date: \RCdate1\ Date: \RCdate1\
.

Master Services Agreement Page 1 of 20

MASTER SERVICES AGREEMENT
This Master Services Agreement is effective as of the date of last signature (“Effective Date”) and made between:

City of La Palma (“Customer”) RingCentral, Inc. (“RingCentral’) Address: Address:
7822 Walker St.,
La Palma, CA 90623
20 Davis Drive
Belmont, CA 94002
By: \RCsign1\ By:
<# <Image Select="//Internal_Signature"
Optional="true" Width=”2” Height=”1”/> #>
Name: \RCname1\ Name: Andrew Varasano
Title: \RCtitle1\ Title: Area VP Public Sector Sales
Date: \RCdate1\ Date: \RCdate1\
RingCentral and Customer are together referred to as the “Parties” and each individually as a “Party.”

1. The Master Services Agreement (“Agreement”) consists of the terms and conditions contained herein, and any Service Attachments applicable to Customer’s Services, and any other Attachments agreed by the Parties, are incorporated into and form a part of this Agreement.

Exhibit A – Definitions
Attachment A – RingEX Services
Attachment B – Security Addendum
THE PARTIES AGREE AS FOLLOWS:

2. Ordering and Term
A. Ordering Services. Customer may order the Services set forth in the relevant Attachments, attached hereto, by executing an Order Form in the format provided by RingCentral. Customer must submit the Order Form to RingCentral either in writing or electronically via the Administrative Portal. The Order Form will identify the Services requested by Customer together with: (i) the price for each Service; (ii) scheduled Start Date; (iii) and products rented, licensed, or sold to Customer, if any. An Order Form will become binding when it is executed by the Customer and accepted by RingCentral. RingCentral may accept an Order Form by commencing performance of the requested Services. The Services and invoicing for those Services will begin on the Start Date, as identified in the applicable Order Form or on the day Services are ordered via the Administrative Portal. Customer may purchase additional Services, software, and equipment via the Administrative Portal or by executing additional Order Forms.

B. Equipment. Subject to availability based on brand and Customer location, Customer may purchase or rent equipment from RingCentral for use with the Services. The terms and conditions that govern any such transaction can be found at:
i. Purchase: http://www.ringcentral.com/legal/ringcentral-hardware-terms-conditions.html:
ii. Rental: http://www.ringcentral.com/legal/lease-rental.html, and iii. Device as a Services: https://www.ringcentral.com/legal/daas-agreement.html.

C. Term of this Agreement. The Term of this Agreement will commence on the Effective Date and continue until the last Order Form is terminated or expires, unless terminated earlier in accordance with its terms.

D. Services Term. The Services Term will begin on the Start Date of the initial Order Form and continue for the initial term set forth in the initial Order Form (“Initial Term”). Upon expiration of the Initial Term, unless otherwise set forth in the Order Form, the term recurring Services will automatically renew for successive periods as set forth in the initial Order Form (each a “Renewal Term”) unless either Party gives notice of non-renewal at least thirty (30) days before the expiration of the Initial Term or the then-current Renewal Term. The Term of any recurring Services added to your Account after the initial Order Form is executed

Master Services Agreement Page 2 of 20
will start on the Start Date in the applicable Order Form, will run coterminously with the then-current Term of any preexisting Services unless otherwise extended in the applicable Order Form, and will be invoiced on the same billing cycles as the preexisting Services.

3. Invoicing and Payment
A. Prices and Charges. All prices are identified in US dollars on the Administrative Portal or in the applicable Order Form unless otherwise agreed by the Parties. Additional charges may result if Customer activates additional features, exceeds usage thresholds, or purchases additional Services or equipment. Customer will be liable for all charges resulting from use of the Services on its Account. Unless otherwise agreed between the Parties, recurring charges (such as charges for Digital Lines, product licenses, minute bundles, and equipment rental fees) for the Services begin on the Start Date identified in the Administrative Portal or in the applicable Order Form and will remain in effect for the Initial Term (as described in an Order Form) or, if applicable, the then-current Renewal Term. RingCentral will provide notice of any proposed increase in such charges no later than sixty (60) days before the end of the Initial Term or then-current Renewal Term, and any such increase will be effective on the first day of the next Renewal Term. Administrative Fees that RingCentral is entitled to pass on to its customers as a surcharge pursuant to applicable Law may be increased on thirty (30) days’ written notice. Outbound calling rates will be applied based on the rate in effect at the time of use. Customer may locate the currently effective rates in the Administrative Portal.

B. Invoicing and Payment. Invoices will be issued in accordance with the payment terms set forth in the Order Form. If Customer chooses to pay by credit or debit card, by providing a valid credit or debit card, Customer is expressly authorizing all Services and equipment charges and fees to be charged to such payment card, including recurring payments billed on a monthly or annual basis. In addition, Customer’s provided credit card shall be used for any in-month purchases of additional services and products, or where Customer has exceeded usage or threshold limits, any overage charges. Unless otherwise stated in the applicable Order Form, recurring charges are invoiced in advance in the frequency set forth in the Order Form, and usage-based and onetime charges are billed monthly in arrears. Customer shall make payment in full, without deduction or set-off, within thirty (30) days of the invoice date. Any payment not made when due may be subject to a late payment fee equivalent to the lesser of (i) one and a half percent (1.5%) per month or (ii) if applicable, the highest rate allowed by Law. In no event may payment be subject to delays due to Customer internal purchase order process.

C. Taxes. All rates, fees, and charges are exclusive of applicable Taxes, for which Customer is solely responsible. Taxes may vary based on jurisdiction and the Services provided. If any withholding tax is levied on the payments, then Customer must increase the sums paid to RingCentral so that the amount received by RingCentral after the withholding tax is deducted is the full amount RingCentral would have received if no withholding or deduction had been made. If Customer is a tax-exempt entity, tax exemption will take effect upon provision to and validation by RingCentral of certificate of tax exemption.

D. Billing Disputes. If a Customer reasonably and in good faith disputes any portion of RingCentral’s invoice, it must provide written notice to RingCentral within thirty (30) days of the invoice date, identifying the reason for the dispute and the amount being disputed. Customer’s dispute as to any portion of the invoice will not excuse Customer’s obligation to timely pay the undisputed portion of the invoice. Upon resolution, Customer must pay any validly invoiced unpaid amounts within thirty (30) days. Any amounts that are found to be in error resulting in an overpayment by the Customer will be applied as a billing credit against future invoices. Customer will be reimbursed any outstanding billing credits at the expiration or termination of this Agreement.

4. Provision of the Service
A. General Terms. RingCentral will provide the Services as described in the relevant Service Attachment. RingCentral may enhance, replace, and/or change the features of the Services, but it will not materially reduce the core features, functions, or security of the Services during the Term without Customer’s consent.

B. Customer Care
i. Customer must provide Helpdesk Support to Customer’s End Users. RingCentral may require Customer’s Helpdesk Support personnel to complete a designated series of training courses on RingCentral’s Services. Such training will be provided to Customer online in English at no cost.
ii. RingCentral will make remote support available to Customer’s Helpdesk Support personnel and/or Account Administrators via the Customer Care call center, which will be available 24/7, to attempt to resolve technical issues with, and answer questions regarding the use of the Services. Unless otherwise agreed by the parties, Customer Care support will be provided in English, and onsite and implementation services are not included in the Customer Care support. iii. Customer may open a case with Customer Care following the process in place at the time. Any individual contacting Customer Care on behalf of Customer must be authorized to do so on behalf of the Account and will be required to follow applicable authentication protocols.

C. Professional Services. RingCentral offers a broad portfolio of professional services that includes onsite and remote implementation services; extended enterprise services including premium technical support; and consulting. Any such services are governed by this Agreement, the Professional Services terms, and any applicable Statement of Work (SOW), which may be attached hereto.

Master Services Agreement Page 3 of 20
D. Advanced Support. Customer may purchase Advanced Support services from RingCentral for use with the Services. The terms and conditions that govern the Advanced Support can be found at: https://www.ringcentral.com/legal/enterprise-serviceattachment.html.

E. Managed Services. Customer may purchase Managed Services from RingCentral for use with the Services. The terms and conditions that govern the Managed Services can be found at: https://www.ringcentral.com/legal/managed-servicesattachment.html.

F. Subcontracting. RingCentral may provide any of the Services hereunder through any of its Affiliates or subcontractors, provided that RingCentral will bear the same degree of responsibility for acts and omissions for those subcontractors acting on RingCentral’s behalf in the performance of its obligations under this Agreement as it would bear if such acts and omissions were performed by RingCentral directly.

5. Use of the Service
A. Service Requirements. The Services are dependent upon Customer’s maintenance of sufficient Internet access, networks, and power as set forth in RingCentral’s Technical Sufficiency Criteria, available at https://www.ringcentral.com/legal/policies/technical-sufficiency-criteria.html. RingCentral will not be responsible for any deficiencies in the provision of the Services if Customer’s network does not meet RingCentral’s Technical Sufficiency Criteria.

B. Use Policies. Customer and its End Users may use the Services only in compliance with this Agreement, applicable Law, and the Use Policies referenced below, which are incorporated into and form part of this Agreement. Customer must ensure that its End Users comply with the Use Policies. Any breach of this Section (Use Policies) will be deemed a material breach of this Agreement. RingCentral may update the Use Policies from time to time and will provide notice of material updates to Customer at the email address on file with the Account. All updates will become effective thirty (30) days after such notice to Customer or upon posting for non-material changes. Customer may object to a modification that negatively impacts its use of the Service by sending written notice (“Objection Notice”) to RingCentral within thirty (30) days from the date of the notice of modification. If the Parties cannot reach agreement, then either Party may terminate the affected Services without penalty with thirty (30) days written notice to the other Party.
i. Acceptable Use Policy. The Services must be used in accordance with RingCentral’s Acceptable Use Policy, available at https://www.ringcentral.com/legal/acceptable-use-policy.html. Notwithstanding anything to the contrary in this Agreement, RingCentral may act immediately and without notice to suspend or limit the Services if RingCentral reasonably suspects fraudulent or illegal activity in the Customer’s Account, material breach of the Acceptable Use Policy, or use of the Services that could interfere with the functioning of the RingCentral Network provided such suspension or limitation may only be to the extent reasonably necessary to protect against the applicable condition, activity, or use. RingCentral will promptly remove the suspension or limitation as soon as the condition, activity or use is resolved and mitigated in full. If Customer anticipates legitimate but unusual activity on its Account, Customer should contact Customer Care in advance to avoid any Service disruption.
ii. Emergency Services. RingCentral’s policy governing the provision of emergency services accessed via the Services is available at https://www.ringcentral.com/legal/emergency-services.html. iii. Numbering Policy. The provision, use, and publication of numbers used in conjunction with the Services are governed by RingCentral’s Numbering Policies, available at https://www.ringcentral.com/legal/policies/numbering-policy.html.

6. Termination
A. Termination for Cause. Either Party may terminate this Agreement and any Services purchased hereunder in whole or part by giving written notice to the other Party: i) if the other Party breaches any material term of this Agreement and fails to cure such breach within thirty (30) days after receipt of such notice; ii) at the written recommendation of a government or regulatory agency following a change in either applicable Law or the Services; or iii) upon the commencement by or against the other Party of insolvency, receivership or bankruptcy proceedings or any other proceedings or an assignment for the benefit of creditors.

B. Effect of Termination. If Customer terminates the Services, a portion of the Services, or this Agreement in its entirety due to RingCentral’s material breach under Section 6(A) (Termination for Cause), Customer will not be liable for any fees or charges for terminated Services for any period subsequent to the effective date of such termination (except those arising from continued usage before the Services are disconnected), and RingCentral will provide Customer a pro-rata refund of any prepaid and unused fees or charges paid by Customer for terminated Services. If this Agreement or any Services are terminated for any reason other than as a result of a material breach by RingCentral or as otherwise permitted pursuant to Section 6(A) or as set forth in Section 14(I) (Regulatory and Legal Changes) the Customer must, to the extent permitted by applicable Law and without limiting any other right or remedy of RingCentral, pay within thirty (30) days of such termination all amounts that have accrued prior to such termination, as well as all sums remaining unpaid for the Services for the remainder of the then-current Term plus related Taxes and fees.

7. Intellectual Property
A. Limited License
i. Subject to, and conditional upon Customer’s compliance with, the terms of this Agreement, RingCentral grants to Customer and its End User, a limited, personal, revocable, non-exclusive, non-transferable (other than as permitted under this Agreement), non-sublicensable license to use any software provided or made available by RingCentral to the Customer as

Master Services Agreement Page 4 of 20
part of the Services (“Software”) to the extent reasonably required to use the Services as permitted by this Agreement, only for the duration that Customer is entitled to use the Services and subject to the Customer being current on its payment obligations.
ii. Customer will not, and will not allow its End Users, to: (a) sublicense, resell, distribute or assign its right under the license granted under this Agreement to any other person or entity; (b) modify, adapt or create derivative works of the Software or any associated documentation; (c) reverse engineer, decompile, decrypt, disassemble or otherwise attempt to derive the source code for the Software; (d) use the Software for infringement analysis, benchmarking, or for any purpose other than as necessary to use the Services Customer is authorized to use; (e) create any competing Software or Services; or (f) remove any copyright or other proprietary or confidential notices on any Software or Services.

B. IP Rights
i. RingCentral’s Rights. Except as expressly provided in this Agreement, the limited license granted to Customer under Section 7(A) (Limited License) does not convey any ownership or other rights or licenses, express or implied, in the Services (including the Software), any related materials, or in any Intellectual Property and no IP Rights or other rights or licenses are granted, transferred, or assigned to Customer, any End User, or any other party by implication, estoppel, or otherwise.

All rights not expressly granted herein are reserved and retained by RingCentral and its licensors. The Software and Services may comprise or incorporate services, software, technology, or products developed or provided by third parties, including open-source software or code. Customer acknowledges that misuse of RingCentral Services may violate thirdparty IP rights. ii. Customer Rights. As between RingCentral and Customer, Customer retains title to all IP Rights that are owned by the Customer or its suppliers. To the extent reasonably required or desirable for the provision of the Services, Customer grants to RingCentral a limited, personal, non-exclusive, royalty-free, license to use Customer’s IP Rights in the same. Customer must provide (and is solely responsible for providing) all required notices and obtaining all licenses, consents, authorizations, or other approvals related to the use, reproduction, transmission, or receipt of any Customer Content that includes personal or Confidential Information or incorporates any third-party IP rights.

C. Use of Marks. Neither Party may use or display the other Party’s trademarks, service mark or logos in any manner without such Party’s prior written consent.

8. Confidentiality
A. Restrictions on Use or Disclosures by Either Party. During the Term of this Agreement and for at least one (1) year thereafter, the Receiving Party shall hold the Disclosing Party’s Confidential Information in confidence, shall use such Confidential Information only for the purpose of fulfilling its obligations under this Agreement, and shall use at least as great a standard of care in protecting the Confidential Information as it uses to protect its own Confidential Information.

Each Party may disclose Confidential Information only to those of its employees, agents or subcontractors who have a need to it in order to perform or exercise such Party’s rights or obligations under this Agreement and who are required to protect it against unauthorized disclosure in a manner no less protective than required under this Agreement. Each Party may disclose the other Party’s Confidential Information in any legal proceeding or to a governmental entity as required by Law.

These restrictions on the use or disclosure of Confidential Information do not apply to any information which is independently developed by the Receiving Party or lawfully received free of restriction from another source having the right to so furnish such information; after it has become generally available to the public without breach of this Agreement by the Receiving Party; which at the time of disclosure was already known to the Receiving Party, without restriction as evidenced by documentation in such Party’s possession; or which the Disclosing Party confirms in writing is free of such restrictions.

Upon termination of this Agreement, the Receiving Party will promptly delete, destroy or, at the Disclosing Party’s request, return to the Disclosing Party, all Disclosing Party’s Confidential Information in its possession, including deleting or rendering unusable all electronic files and data that contain Confidential Information, and upon request will provide the Disclosing Party with certification of compliance with this subsection.

9. Data Protection
A. Data Privacy. RingCentral respects Customer’s privacy and will only use the information provided by Customer to RingCentral or collected in the provision of the Services in accordance with RingCentral’s Data Processing Addendum, available at https://www.ringcentral.com/legal/dpa.html, incorporated by reference. RingCentral may update the Data Processing Addendum from time to time and will provide notice of any material updates to the Customer as required by applicable Laws at the email address on file with the Account. Such updates will be effective thirty (30) days after such notice to Customer.

B. Data Security. RingCentral will take commercially reasonable precautions, including, without limitation, technical (e.g., firewalls and data encryption), organizational, administrative, and physical measures, to help safeguard Customer’s Account, Account Data, and Customer Content against unauthorized use, disclosure, or modification. Customer must protect all End Points using commercially reasonable security measures. Customer is solely responsible to keep all user identifications and passwords secure. Customer must monitor use of the Services for possible unlawful or fraudulent use. Customer must notify RingCentral immediately if Customer becomes aware or has reason to believe that the Services are being used fraudulently or without authorization by any End User or third party. Failure to notify RingCentral may result in the suspension or termination of the Services and additional charges to Customer resulting from such use. RingCentral will not be liable for any charges resulting from unauthorized use of Customer’s Account.

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C. Software Changes. RingCentral may from time-to-time push software updates and patches directly to Customer’s device(s) for installation and Customer will not prevent RingCentral from doing so. Customer must implement promptly all fixes, updates, upgrades and replacements of software and third-party software that may be provided by RingCentral. RingCentral will not be liable for inoperability of the Services or any other Services failures due to failure of Customer to timely implement the required changes.

10. Limitations of Liability
A. Excluded Damages
IN NO EVENT WILL EITHER PARTY OR ITS AFFILIATES OR ITS OR THEIR SUPPLIERS BE LIABLE FOR (1) INDIRECT, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES; (2) LOSS OF USE OR LOSS OF DATA; (3) LOSS OF BUSINESS OPPORTUNITIES, REVENUES OR PROFITS; OR (4) COSTS OF PROCURING REPLACEMENT PRODUCTS OR

SERVICES, IN ALL CASES WHETHER ARISING UNDER CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE OR

STRICT LIABILITY), OR ANY OTHER THEORY OF LIABILITY, AND EVEN IF SUCH PARTY HAS BEEN INFORMED IN ADVANCE OF SUCH DAMAGES OR SUCH DAMAGES COULD HAVE BEEN REASONABLY FORESEEN.

B. Liability Caps

EXCEPT AS SET FORTH HEREIN, THE TOTAL CUMULATIVE LIABILITY OF THE PARTIES UNDER THIS AGREEMENT WILL NOT EXCEED THE AMOUNTS PAID OR PAYABLE UNDER THIS AGREEMENT DURING THE PREVIOUS SIX (6) MONTHS. LIMITATIONS UNDER THIS SECTION (LIABILITY CAPS) WILL NOT APPLY TO:
i. FEES OWED BY CUSTOMER
ii. EITHER PARTY’S LIABILITY FOR INFRINGEMENT OF THE OTHER PARTY’S IP RIGHTS iii. EITHER PARTY’S LIABILITY RESULTING FROM GROSS NEGLIGENCE, FRAUD, OR WILLFUL OR CRIMINAL

MISCONDUCT
iv. CUSTOMER’S LIABILITY RESULTING FROM USE OF THE SERVICES IN BREACH OF THE ACCEPTABLE USE

POLICY OR EMERGENCY SERVICES POLICY
v. EITHER PARTY’S LIABILITY ARISING FROM DEATH OR PERSONAL INJURY CAUSED BY NEGLIGENCE, OR FOR

ANY OTHER LIABILITY WHICH MAY NOT BE RESTRICTED, LIMITED, OR EXCLUDED PURSUANT TO APPLICABLE LAW.

11. Indemnification
A. Indemnification by RingCentral
i. RingCentral shall indemnify and hold harmless the Customer and its Affiliates for Indemnifiable Amounts, and shall defend any third-party claims or causes of action (a “Third Party Claim”) to the extent such Third Party Claim arises out of or alleges that:
a. The Services, as provided by RingCentral, infringe or misappropriate the patent, copyright, trademark, or trade secret rights of a third party.
ii. RingCentral will have no obligations under subsection (i) above to the extent the Third Party Claim arises from: (a) use of the Services in combination with data, software, hardware, equipment, or technology not provided or authorized by RingCentral in writing unless any of the foregoing are necessary for the proper operation of the Services; (b) modifications to the Services not made by RingCentral; (c) Customer Content; (d) failure to promptly install any updates of any software or firmware or accept or use any modified or replacement items provided free of charge by or on behalf of RingCentral; (e) breach of the Agreement; or (f) a Third Party Claim brought by Customer’s Affiliate, successor, or assignee. iii. If such a Third-Party Claim is made or appears possible, Customer agrees to permit RingCentral, at RingCentral’s sole discretion and expense, to (a) modify or replace the Services, or component or part thereof, to make it non-infringing or (b) obtain the right for Customer to continue to use the Services. If RingCentral determines that neither alternative is commercially reasonable, RingCentral may terminate this Agreement in its entirety or with respect to the affected Service, component or part (a “Discontinued Component”), effective immediately on written notice to Customer, in which case Customer will not owe any fees or charges relating to the Discontinued Component for any period subsequent to the date of such termination, and will be entitled to receive a refund of any prepaid but unused fees relating to the Discontinued Component. In the event the removal of the Discontinued Component does not substantially affect Customer’s use of the Services, the refund or fee abatement pursuant to the foregoing shall be a reasonable portion of the total fees owed by Customer for the Services as a whole based on the significance of the Discontinued Component to the total value of the Services as a whole. RingCentral’s obligations under this Sub-Section will be RingCentral’s sole and exclusive liability and Customer’s sole and exclusive remedies with respect to any actual or alleged intellectual property violations.

B. Indemnification by Customer. To the extent permitted by the laws and the constitution of the jurisdiction of Customer, Customer shall indemnify, and hold harmless RingCentral and its Affiliates for Indemnifiable Amounts, and shall defend any Third Party Claims arising out of or in connection with: (i) material violation of applicable Law by the Customer, its Affiliates, or their respective End Users in connection with their use of the Services; (ii) use of the Services in breach of the Use Policies; (iii) failure to promptly install any updates of any software or firmware or accept or use modified or replacement items provided free of charge by or on behalf of RingCentral; or (iv) Customer Content.

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C. Defense and Indemnification Procedures. Any Party seeking indemnification under this Section 11 (the “Indemnified Party”) shall provide the Party from which it seeks such indemnification (the “Indemnifying Party”) with the following: (a) prompt written notice of the Third-Party Claim, (b) sole control over the defense and settlement of the Third-Party Claim, and (c) reasonable information, cooperation, and assistance (at the Indemnifying Party’s sole expense except for the value of the time of the Indemnified Party’s personnel) in connection with the defense and settlement of the Third-Party Claim. The Indemnified Party’s failure to comply with the foregoing obligations will not relieve the Indemnifying Party of its defense or indemnification obligations under this Section 11 (Indemnification) except to the extent that the Indemnifying Party is materially prejudiced by such failure.

The Indemnified Party will have the right to participate (but not control), at its own expense, in the defense of such Third-Party Claim, including any related settlement negotiations. No such claim may be settled by the Indemnifying Party without the Indemnified Party’s express written consent (not to be unreasonably withheld, conditioned, or delayed) unless such settlement includes a full and complete release of all claims and actions against the Indemnified Party by each party bringing such ThirdParty Claim, requires no admission of fault, liability, or guilt by the Indemnified Party, and requires no act by the Indemnified Party other than the payment of a sum of money fully indemnified by the Indemnifying Party.

12. Warranties
A. RingCentral Warranty. RingCentral will provide the Services using a commercially reasonable level of skill and care, in material compliance with all applicable Laws and otherwise subject to the terms of this Agreement. To the extent permitted by Law, RingCentral shall pass through to Customer any and all warranties RingCentral receives in connection with equipment provided to Customer by or on behalf of RingCentral.

B. Customer Warranty. Customer’s and its End Users’ use of the Services must always comply with all applicable Laws and this Agreement. Further, when Customer’s subscription for Services exceeds one (1) fiscal year, Customer warrants that it shall exercise due diligence and best efforts to secure an adequate appropriation of funds on time from its legislative or similar government body to pay for the contracted Services in the follow-on fiscal year(s).

C. Disclaimer of Warranties. EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT AND TO THE FULLEST EXTENT PERMITTED BY LAW, THE SERVICES ARE PROVIDED “AS IS” AND “AS AVAILABLE,” AND RINGCENTRAL

MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED

WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT, QUIET ENJOYMENT, AND FITNESS FOR A PARTICULAR

PURPOSE AND ANY WARRANTIES ARISING FROM A COURSE OF DEALING OR USAGE IN TRADE, TOGETHER WITH SIMILAR WARRANTIES, WHETHER ARISING UNDER ANY LAW OR OTHERWISE. TO THE EXTENT THAT

RINGCENTRAL CANNOT DISCLAIM ANY SUCH WARRANTY AS A MATTER OF APPLICABLE LAW, THE SCOPE AND DURATION OF SUCH WILL BE LIMITED TO THE FULLEST EXTENT PERMITTED BY LAW.

13. Dispute Resolution
A. Governing Law. Any dispute arising out of or relating to this Agreement shall be governed and construed in accordance with the laws of California, without regard to its choice of law rules, and the parties agree to submit to the jurisdiction of, and venue in, the courts in that state. The United Nations Convention on Contracts for the International Sale of Goods does not apply to this Agreement or Customer’s use of the products or Services.

B. Good Faith Attempt to Settle Disputes. In the event of a dispute, each Party shall appoint a duly authorized representative who shall use all reasonable endeavors to resolve in good faith any dispute within reasonable timescales.

C. Equitable Relief. Any breach of either Party’s IP Rights may cause that Party irreparable harm for which monetary damages will be inadequate and such Party may, in addition to other remedies available at Law or in equity, obtain injunctive relief without the necessity of posting a bond or other security, proof of damages, or similar requirement, in additional to any other relief to which such Party may be entitled under applicable Law.

D. Limitations. Except for actions for non-payment or liability arising from Section 11 (Indemnification), no claim, suit, action or proceeding relating to this Agreement may be brought by either Party more than two (2) years after the cause of action has accrued. Any actions, lawsuits, or proceedings must be conducted solely on an individual basis and the Parties expressly waive any right to bring any action, lawsuit or proceeding as a class or collective action, private attorney general action or in any other capacity acting in a representative capacity.

14. Miscellaneous
A. Relationship of the Parties. RingCentral and Customer are independent contractors, and this Agreement will not establish any relationship of partnership, joint venture, employment, franchise or agency between RingCentral and Customer.

B. Assignment. Neither Party may assign the Agreement or any portion thereof without the other Party’s prior written consent (which such consent may not be unreasonably withheld or delayed), however either Party may assign the Agreement and all of that Party’s rights and obligations thereunder without consent (a) to an Affiliate; (b) to the Party’s successor or surviving entity in connection with a merger, acquisition, consolidation, sale of all or substantially all of its assets used in connection with the provision of Services under this Agreement; or (c) as part of the transfer or disposition of more than fifty percent (50%) of a Party’s voting control or assets. This Agreement will bind and inure to the benefit of the Parties, and their permitted assigns and successors.

C. Notices. Except where otherwise expressly stated in the Agreement, all notices or other communications must be in English and are deemed to have been fully given when made in writing and delivered in person, upon delivered email, confirmed

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facsimile, or five days after deposit with an reputable overnight courier service, and addressed as follows: To RingCentral at RingCentral, Inc., Legal Dept., 20 Davis Drive, Belmont, CA 94002 USA, with a copy to [email protected], and to Customer at either the physical address or email address associated with the Customer Account.

Customer acknowledges and agrees that all electronic notices have the full force and effect of paper notices. The addresses to which notices may be given by either Party may be changed (a) by RingCentral upon written notice given to Customer pursuant to this Section or (b) by Customer in the Administrative Portal.

D. Force Majeure. Excluding either Party’s payment obligations under the Agreement, neither Party will be responsible or liable for any failure to perform or delay in performing to the extent resulting from any event or circumstance that is beyond that Party’s reasonable control, including without limitation any act of God; national emergency; third-party telecommunications networks; riot; war; terrorism; governmental act or direction; change in Laws; fiber, cable, or wire cut; power outage or reduction; rebellion; revolution; insurrection; earthquake; storm; hurricane; flood, fire, or other natural disaster; strike or labor disturbance; or other cause, whether similar or dissimilar to the foregoing, not resulting from the actions or inactions of such Party.

E. Third-Party Beneficiaries. RingCentral and Customer agree that there will be no third-party beneficiaries to this Agreement.

F. Headings, Interpretation. The headings, section titles, and captions used in the Agreement are for convenience of reference only and will have no legal effect. All defined terms include related grammatical forms, and, whenever the context may require, the singular form of nouns and pronouns include the plural, and vice versa. The Parties agree that this Agreement will be deemed to have been jointly and equally drafted by them, and that the provisions of this Agreement therefore should not be construed against a Party or Parties on the grounds that the Party or Parties drafted or was more responsible for drafting the provision(s).

G. Anti-Bribery. Each Party represents that in the execution of this Agreement and in the performance of its obligations under this Agreement it has complied and will comply with all applicable anti-bribery Laws and regulations, including, without limitation, the U.S. Foreign Corrupt Practices Act, the UK Bribery Act, and similar applicable Laws.

H. Export Control. Any services, products, software, and technical information (including, but not limited to, services and training) provided pursuant to the Agreement may be subject to U.S. export Laws and regulations. Customer will not use distribute, transfer, or transmit the services, products, software, or technical information (even if incorporated into other products) except in compliance with U.S. and other applicable export regulations.

I. Regulatory and Legal Changes. In the event of any change in Law, regulation or industry change that would prohibit or otherwise materially interfere with RingCentral’s ability to provide Services under this Agreement, RingCentral may terminate the affected Services or this Agreement or otherwise modify the terms thereof.

J. Use of Beta, Preview, or Early Access Software. If you use any beta, preview, or early access services, features, products, or software offered or made available by RingCentral, then you acknowledge that your use of the services, products, or software are governed by the Beta Evaluation License Agreement and not by this Agreement.

K. Entire Agreement. The Agreement, together with any exhibits, Order Forms, Use Policies, and Attachments, each of which is expressly incorporated into this Agreement with this reference, constitutes the entire agreement between the Parties and supersedes and replaces any and all prior or contemporaneous understandings, proposals, representations, marketing materials, statements, or agreements, whether oral, written, or otherwise, regarding such subject. RingCentral expressly rejects in their entirety any additional or conflicting terms or conditions contained in Customer purchase order, or similar Customer document, which the Parties agree are solely for the Customer’s convenience.

L. Order of Precedence. In the event of any conflict between the documents comprising this Agreement, precedence will be given to the documents in the following descending order: (i) the applicable Order Form (including any hyperlinks); (ii) the applicable Attachment; (iii) the main body of this Agreement; (iv) Use Policies and Data Processing Addendum incorporated by reference in this Agreement; and (v) and any other document expressly referred to in this Agreement which governs the Services. With respect to data processing, the Data Processing Addendum shall take precedence over any inconsistent terms in any of the documents listed in the previous sentence.

M. Amendments. Except as otherwise provided, this Agreement may only be modified by a written amendment executed by authorized representatives of both Parties. In no event will handwritten changes to any terms or conditions, including in the applicable Order Form, be effective.

N. Severability and Waiver. In the event any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, such provision(s) will be stricken and the remainder of this Agreement will remain legal, valid, and binding.

The failure by either Party to exercise or enforce any right conferred by this Agreement will not be deemed to be a waiver of any such right or to operate so as to bar the exercise or enforcement of any such or other right on any later occasion. Except as otherwise expressly stated in this Agreement, all rights and remedies stated in the Agreement are cumulative and in addition to any other rights and remedies available under the Agreement, at Law, or in equity.

O. Execution. Each Party represents and warrants that: (a) it possesses the legal right and capacity to enter into the Agreement and to perform all of its obligations thereunder; (b) the individual signing the Agreement and (each executable part thereof) on that Party’s behalf has full power and authority to execute and deliver the same; and (c) the Agreement will be a binding obligation of that Party. Each Party agrees that an Electronic Signature, whether digital or encrypted, is intended to authenticate this Agreement and to have the same force and effect as manual signatures.

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P. Counterparts. This Agreement may be executed electronically and in separate counterparts each of which when taken together will constitute one in the same original.

Q. Survival. The rights and obligations of either Party that by their nature would continue beyond the expiration or termination of this Agreement or an Order Form will survive expiration or termination of this Agreement or the Order Form, including without limitation payment obligations, warranty disclaimers, indemnities, limitations of liability, definitions and miscellaneous.

R. Family Education Rights and Privacy Act (FERPA). Customer Content when in-transit on the RingCentral Network and when at-rest within RingCentral Data Centers may contain communications and/or educational records pertaining to students in connection with the performance of the Services pursuant to the Agreement. RingCentral shall only use or disclose such Customer Content as is reasonably necessary to provide the Services or for RingCentral to otherwise perform its obligations under the Agreement.

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EXHIBIT A

DEFINITIONS
Definitions. Capitalized terms used in this Agreement but otherwise not defined have the following meaning:

1. “Account” means the numbered account established with RingCentral and associated with Customer and the Services provided to Customer under this Agreement. For billing and convenience purposes, multiple services, Digital Lines, or End Users may be included in a single billing account, and/or a single Customer may have multiple billing accounts encompassing different geographic locations, business units, or other designations as requested by Customer and accepted by RingCentral.

2. “Account Administrator” means the person(s) who have been granted authority by Customer to set up, amend, or otherwise control settings and/or make additional purchases for the Account via the Administrative Portal. Account Administrators may have varying levels of Account rights, skills, or permissions.

3. “Account Data” means: any business contact information provided with the Account; RingCentral-generated logs of calling or other metadata developed or collected in the provision of the Services; configuration data; and records of Digital Lines and any Services purchased under this Agreement.

4. “Administrative Fees” means any administrative recovery fees, 911 cost recovery fees and the like separately charged by RingCentral to Customer.

5. “Administrative Portal” means the online administrative portal through which Account Administrators control settings and/or make additional purchases for the Account.

6. “Affiliate(s)” means a person or entity that is controlled by a Party hereto, controls a Party hereto, or is under common control with a Party hereto, and “control” means beneficial ownership of greater than fifty percent (50%) of an entity’s then-outstanding voting securities or ownership interests.

7. “Attachment(s)” means documents appended to the contract containing additional terms for products and Services. Attachments and the terms and conditions contained therein are part of this Agreement.

8. “Confidential Information” means any information disclosed by or on behalf of the Disclosing Party) to the Receiving Party that should reasonably be considered as confidential given the nature of the information and the circumstances surrounding its disclosure.

9. “Customer Care” means Customer support operations delivered by RingCentral and/or its subcontractors.

10. “Customer Content” means the content of calls, facsimiles, SMS messages, voicemails, voice recordings, shared files, conferences, or other communications transmitted or stored through the Services.

11. “Digital Line” means a phone number assigned to an End User or a specifically designated location (e.g., conference room) and the associated voice service for inbound and outbound calling that permits an End User generally to make and receive calls to and from the public switched telephone network as well as to and from other extensions within the same Account.

12. “Disclosing Party” means the Party disclosing Confidential Information or on whose behalf Confidential Information is disclosed by such Party’s agents, including but not limited to, its Affiliates, officers, directors, employees, and attorneys.

13. “Electronic Signatures” means an electronic sound, symbol, or process, including clicking a digital button to accept, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.

14. “End Point” means an application or device through which any End-User might access and/or use any of the Services, including without limitation IP Desk Phones, Desktop Clients, Web Clients, Mobile Applications, and Software Integrations.

15. “End User” means an individual user to whom Customer makes the Services available, and may be a natural person, and may include but is not limited to Customer’s employees, consultants, clients, external users, invitees, contractors, and agents.

16. “Helpdesk Support” shall mean the performance of the following tasks:
• Standard feature/functionality (“how to”) support for End Users (i.e. call forwarding, voice mail set-up, etc.). • Standard management of the Admin Interface within the product. • Support all moves, adds, changes, and deletes of employees.

17. “Indemnifiable Amounts” means all (X) damages and other amounts awarded against the Indemnified Party by a court of competent jurisdiction pursuant to a final judgment in connection with such Third-Party Claim; (Y) any amounts payable by the Indemnified Party or its Affiliates pursuant to a binding, written agreement settling the Third Party Claim, provided such agreement is approved in advance in writing by the Indemnifying Party; and (Z) all reasonable costs and expenses paid to third parties by the Indemnified Party or its Affiliates in connection with the Indemnified Party’s or its Affiliates’ attorneys’ fees and related expenses.

18. “Indemnifying Party” and “Indemnified Party” have the meanings set forth in Section 11(C) (Defense and Indemnification Procedures).

19. “Initial Term” has the meaning set forth in Section 2(D) (Services Term).

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20. “Intellectual Property Rights” or “IP Rights” means all common law and statutory rights (whether registered or unregistered, or recorded or unrecorded, regardless of method) arising out of or associated with: (a) patents and patent applications, inventions, industrial designs, discoveries, business methods, and processes; (b) copyrights and copyright registrations, and “moral” rights; (c) the protection of trade and industrial secrets and Confidential Information; (d) other proprietary rights relating to intangible property; (e) trademarks, trade names and service marks; (f) a person’s name, likeness, voice, photograph or signature, including without limitation rights of personality, privacy, and publicity; (g) analogous rights to those set forth above; and (h) divisions, continuations, continuations-in-part, renewals, reissuances and extensions of the foregoing (as applicable).

21. “Law” means any law, statute, regulation, rule, ordinance, administrative guidance, treaty or convention, or court or administrative order or ruling of any governing Federal, State, local or non-U.S. governmental body with jurisdiction over the Services.

22. “Order Form(s)” means a request for Service describing the type and quantity of Services required by Customer and submitted and accepted by the Parties in accordance with Section 2(A) (Ordering Services). The Order Form may be presented and executed via the Administrative Portal.

23. “Receiving Party” means the Party or its agents, including, but not limited to its Affiliates, officers, directors, employees, and attorneys receiving Confidential Information.

24. “Renewal Term” has the meaning set forth in Section 2(D) (Services Term).

25. “RingCentral Network” means the network and supporting facilities between and among the RingCentral points of presence (“PoP(s)”), up to and including the interconnection point between the RingCentral’s network and facilities, and the public Internet, and the Public Switched Telephone Network (PSTN). The RingCentral Network does not include the public Internet, a Customer’s own private network, or the PSTN.

26. “Service(s)” means all services provided under this Agreement and set forth in one or more Order Form(s).

27. “Start Date” means the date so identified in the relevant Order Form or the date on which Customer orders Services via the Administrative Portal.

28. “Taxes” means any and all federal, state, local, municipal, foreign, and other taxes and fees charged or collected from Customers, including but not limited to any Universal Service Fund, TRS and 911 taxes and fees.

29. “Term” means the Initial Term plus any Renewal Terms.

30. “Third Party Claim” has the meaning set forth in Section 11(A) (Indemnification by RingCentral).

31. “Use Policy” refers to any of the policies identified in Section 5(B) (Use Policies).

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ATTACHMENT A

SERVICE ATTACHMENT - RINGEX SERVICES
This Service Attachment is a part of the Master Services Agreement (the “Agreement”) that includes the terms and conditions agreed by the Parties under which RingCentral will provide to the Customer the RingEX Services as described under the applicable Order Form (the “Services”).

1. Service Overview
The Services are a cloud-based unified communications service that includes enterprise-class voice, fax, call handling, mobile apps, and bring-your-own-device (BYOD) capability that integrates with a growing list of applications.

The Services include:
 Voice Services, including extension-to-extension calling and the ability to make and receive calls to and from the public switched telephone network (PSTN)
 Video and audio-conferencing service, including screen sharing  Collaboration Tools, including One-to-One and Team Chat, File Sharing, task management, SMS/Texting (where available), and other innovative tools
The Services may be accessed from a variety of user End Points, including IP Desk Phones, Desktop Clients, Web Clients, Mobile Applications, and Software Integrations.

2. RingEX Purchase Plans
A. Tiers of Service. The Services are made available in several pricing tiers, which are described more fully at https://www.ringcentral.com/office/plansandpricing.html. While RingCentral offers unlimited monthly plans for some of its products and services, RingCentral Services are intended for regular business use. “Unlimited” use does not permit any use otherwise prohibited by the Acceptable Use Policy, available at https://www.ringcentral.com/legal/acceptable-use-policy.html, including trunking, access stimulation, reselling of the Services, etc. Use of the RingCentral AI Assistant capabilities is subject to the applicable terms contained in the AI Assistant Add-On Service Description available at https://www.ringcentral.com/legal/add-on-services.html#qlnks-12.

B. Minute and Calling Credit Bundles. Each plan includes a number of Toll-Free minutes, per month, which are pooled to create a single allotment of Toll-Free minutes available for the entire account. Core/Advanced/Ultra tier plans include a monthly allotment of 100/1000/10000 toll free minutes per account, respectively. Overage charges of 3.9¢ per minute apply to calls made in excess of allotment.

International Calling Credit Bundles can be purchased in addition to any base amount included with the purchased tier.

International External Calls are charged against Calling Credits on the Account per destination rates, or as overage once Calling Credits are exceeded. Currently effective rates are available at https://www.ringcentral.com/support/international-rates.html.

Extension-to-Extension Calls within the Customer account never incur any usage fee and are unlimited, except to the extent that such calls are forwarded to another number that is not on the Customer account.

Additional Calling Credits may be purchased through the Auto-Purchase feature, which can be selected for automatic purchase in various increments on the Administrative Portal. Auto-Purchase is triggered when the combined usage of all End Users on an Account exceeds the total Calling Credits or when End Users make calls with additional fees (e.g., 411).

Minute Bundles and Calling Credit Bundles expire at the end of month and cannot roll over to the following month. AutoPurchased Calling Credits expire twelve (12) months from date of purchase. Bundles may not be sold, transferred, assigned, or applied to any other customer.

C. Enhanced Business SMS Allotment and Pricing. Each plan includes a number of SMS per each user, per month, which are pooled to create a single allotment of SMS available to the entire account. Core/Advanced/Ultra tier plans include a monthly allotment of 25/100/200 SMS, per user respectively. Each SMS sent or received will be deducted from the pool of available SMS on the account. Overage charges apply to SMS sent or receive in excess of allotment and will be charged at the then-applicable rates, available at https://www.ringcentral.com/support/new-sms-rates.html. Additional SMS bundles are available for purchase at discounted prices. Customer must successfully register phone numbers with the SMS registar prior to using SMS. RingCentral may attempt to deliver SMS sent from unregistered phone numbers at its discretion, however unregistered SMS are excluded from the monthly allotment and any purchased SMS bundles, and will be charged at then-applicable unregistered SMS rates, available at https://www.ringcentral.com/support/new-sms-rates.html.

3. Operator Assisted Calling, 311, 511 and other N11 Calling RingCentral does not support 0+ or operator assisted calling (including, without limitation, collect calls, third party billing calls, 900, or other premium line numbers or calling card calls). The Services may not support 211, 311, 411, 511 and/or N11 calling. To the extent they are supported, additional charges may apply for these calls.

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4. Directory Listing Service
RingCentral offers directory listing (the “Directory Listing Service”). If Customer subscribes to the Directory Listing Service, RingCentral will share certain Customer Contact Data with third parties as reasonably necessary to include in the phone directory (“Listing Information”). This information may include, but is not limited to, Customer’s company name, address, and phone numbers. Customer authorizes RingCentral to use and disclose the Listing Information for the purpose of publishing in, and making publicly available through, third-party directory listing services, to be selected by RingCentral or third-party service providers in their sole discretion. Customer acknowledges and agrees that by subscribing to the Directory Listing Service, Customer’s Listing Information may enter the public domain and that RingCentral cannot control third parties’ use of such information obtained through the Directory Listing Service.

A. Opt Out. Customer may opt out of the Directory Listing Service at any time; however, RingCentral is not obligated to have Customer’s Listing Information removed from third-party directory assistance listing services that have already received Customer’s information.

B. No Liability. RingCentral will have no responsibility or liability for any cost, damages, liabilities, or inconvenience caused by calls made to Customer’s telephone number; materials sent to Customer, inaccuracies, errors or omissions with Listing Information; or any other use of such information. RingCentral will not be liable to Customer for any use by third parties of Customer’s Listing Information obtained through the Directory Listing Service, including without limitation the use of such information after Customer has opted out of the Directory Listing Service.

5. Global RingEX or RingCentral Global Office. Global RingEX (which is also known as RingCentral Global Office and references in the Service Description to Global RingEX shall also refer to Global Office) provides a single communications system to companies that have offices around the world, offering localized service in countries for which Global RingEX is available. Additional information related to Global RingEX Services is available at http://www.ringcentral.com/legal/policies/global-office-countries.html. This section sets forth additional terms and conditions concerning RingCentral’s Global RingEX for customers that subscribe to it.

A. Emergency Service Limitations for Global RingEX. RingCentral provides access to Emergency Calling Services in many, but not all, countries in which RingCentral Global RingEX is available, allowing End Users in most countries to access Emergency Services. Emergency Services may only be accessed within the country in which the Digital Line is assigned, e.g., an End User with a Digital Line assigned in Ireland may dial Emergency Services only within Ireland. Access to Emergency Calling Services in RingCentral Global RingEX countries, where available, is subject to the Emergency Services Policy, available at https://www.ringcentral.com/legal/emergency-services.html. Customer must make available and will maintain at all times traditional landline and/or mobile network telephone services that will enable End Users to call the applicable Emergency Services number. Customer may not use the RingCentral Services in environments requiring fail-safe performance or in which the failure of the RingCentral Services could lead directly to death, personal injury, or severe physical or environmental damage.

B. Global RingEX Provided Only in Connection with Home Country Service. RingCentral provides Global RingEX Service only in connection with Services purchased in the Home Country. RingCentral may immediately suspend or terminate Customer’s Global RingEX Services if Customer terminates its Digital Lines in the Home Country. All invoicing for the Global RingEX Services will be done in the Home Country on the Customer’s Account, together with other Services purchased under this Agreement, using the Home Country’s currency. Customer must at all times provide a billing address located in the Home Country. RingCentral will provide all documentation, licenses, and services in connection with the Global RingEX Service in English; additional language support may be provided at RingCentral’s sole discretion.

C. Primary Place of Use of Global RingEX Service. Customer represents and warrants that the primary place of use of the Global RingEX Services will be the country in which the Digital Line is assigned, e.g., an End User with a Digital Line assigned in Ireland will primarily use that Digital Line in Ireland.

D. Relationships with Local Providers. In connection with the provision of Global RingEX Services, RingCentral relies on local providers to supply certain regulated communication services; for example (i) for the provision of local telephone numbers within local jurisdictions; (ii) to enable you to place local calls within local jurisdictions; and (iii) to enable you to receive calls from nonRingCentral numbers on Customer’s Global RingEX telephone number(s), by connecting with the local public switched telephone network. Customer hereby appoints RingCentral as Customer’s agent with power of attorney (and such appointment is coupled with an interest and is irrevocable during the Term) to conclude and enter into agreements with such local providers on Customer’s behalf to secure such services. RingCentral’s locally licensed affiliates provide all telecommunications services offered to Customer within the countries in which such affiliates are licensed; in some cases, RingCentral may obtain services from locally licensed providers on Customer’s behalf. RingCentral is responsible for all contracting, billing, and customer care related to those services. Customer is responsible for providing RingCentral with all information necessary for RingCentral to obtain numbers in Global RingEX countries.

Master Services Agreement Page 13 of 20

6. Additional Services. RingCentral offers add-on services for the Services (where available), which are described at https://www.ringcentral.com/legal/microsoft-teams-services-attachment.html. Additional terms or charges may apply, depending on the selected features.

7. Bring Your Own Carrier (BYOC) Services. RingCentral offers a software-as-a-service in which customers provide and maintain their own local telecommunications services, which may be connected to RingCentral's cloud PBX, videoconferencing, and team messaging services. BYOC and additional terms are described and available at https://www.ringcentral.com/legal/BYOC-servicedescription.html.

8. Definitions. Terms used herein but not otherwise defined have the meanings ascribed to them in the Agreement. For purposes of this Service Attachment, the following terms have the meanings set forth below:

A. “Digital Line” means a phone number assigned to an End User or a specifically designated location (e.g., conference room) and the associated voice service for inbound and outbound calling that permits the End User generally to make and receive calls to and from the public switched telephone network as well as to and from other extensions within the same Account.

B. “End Point” means an application or device through which any End-User might access and/or use any of the Services, including without limitation IP Desk Phones, Desktop Clients, Web Clients, Mobile Applications, and Software Integrations.

C. “Extension-to-Extension Calls” means calls made and received between End Points on the Customer Account with RingCentral, regardless of whether the calls are domestic or international.

D. “External Calls” means calls made to or received from external numbers on the PSTN that are not on the Customer Account with RingCentral.

E. “Home Country” means the United States or the country that is otherwise designated as Customer’s primary or home country in the Order Form.

Master Services Agreement Page 14 of 20

ATTACHMENT B

RINGCENTRAL SECURITY ADDENDUM

1. Scope
This document describes the Information Security Measures (“Measures”) that RingCentral has in place when processing Protected Data through RingCentral Services.

2. Definitions
For purposes of this Security Addendum only, capitalized terms, not otherwise defined herein, have the meaning set forth in the Agreement.

A. “Ring Central Services”, or “Services”, means services offered by RingCentral and acquired by the Customer.

B. “Customer” means the entity that entered into the Agreement with RingCentral.

C. “Protected Data” means Customer and partner data processed by RingCentral Services, as defined in the applicable RingCentral DPA or Agreement, including “personal data” and “personal information” as defined by applicable privacy laws, confidential data as defined in the Agreement, account data, configuration data, communication content including messages, voicemail, and video recording.

D. “Agreement” means the agreement in place between RingCentral and the Customer for the provision of the Services.

E. “Personnel” means RingCentral employees, contractors or subcontracted Professional Services staff.

3. Information Security Management
A. Security Program
RingCentral maintains a written information security program that:
i. Includes documented policies or standards appropriate to govern the handling of Protected Data in compliance with the Agreement and with applicable law.
ii. Is managed by a senior employee responsible for overseeing and implementing the program. iii. Includes administrative, technical, and physical safeguards reasonably designed to protect the confidentiality, integrity, and availability of Protected Data.
iv. Is appropriate to the nature, size, and complexity of RingCentral’s business operations.

B. Security Policy Management
RingCentral’s security policies, standards, and procedures:
i. Align with information security established industry standards. ii. Are subject to ongoing review.
iii. May be revised to reflect changes in industry best practices.

C. Risk Management
RingCentral:
i. Performs cybersecurity risk assessments to identify threats to their business or operations at least annually. ii. Updates RingCentral policies, procedures and standards as needed to address threats to RingCentral’s business or operations.

4. Independent security assessments
A. External Audit
RingCentral:
i. Uses qualified independent third-party auditors to perform security audits covering systems, environments, and networks where Protected Data is processed, including
a. SOC2 Type II
b. IES/ISO 27001.
ii. maintains additional audits and compliance certifications as appropriate for RingCentral’s business and as identified at www.ringcentral.com/trust-center.html.

B. Distribution of Reports
Copies of relevant audit reports and certifications:
i. Will be provided to Customer on request.

Master Services Agreement Page 15 of 20
ii. Are subject to Non-Disclosure Agreement.

C. Annual Risk Assessment Questionnaire
Customer may, on one (1) occasion within any twelve (12) month period, request that RingCentral complete a third-party risk assessment questionnaire within a reasonable time frame.

In case of conflict between this section and the equivalent section in the RingCentral DPA, the DPA takes precedence.

5. Human Resource Security
A. Background Checks
RingCentral requires pre-employment screenings of all employees. RingCentral ensures criminal background searches on its employees to the extent permitted by law. Each background check in the US includes:
i. An identity verification (SSN trace).
ii. Criminal history checks for up to seven (7) years for felony and misdemeanors at the local, state, and federal level, where appropriate.
iii. Terrorist (OFAC) list search, as authorized by law.

Internationally, criminal history checks are conducted as authorized by local law.

Background checks are conducted by a member of the National Association of Professional Background Screeners or a competent industry-recognized company in the local jurisdiction.

B. Training
RingCentral will ensure that all employees including contractors:
i. Complete annual training to demonstrate familiarity with RingCentral’s security policies. ii. Complete annual training for security and privacy requirements, including CyberSecurity awareness, GDPR, and CCPA. iii. Have the reasonable skill and experience suitable for employment and placement in a position of trust within RingCentral.

C. Workstation Security
RingCentral ensures that:
i. RingCentral employees either use RingCentral owned and managed devices in the performance of their duties or Bring Your Own Device (BYOD) device.
ii. All devices, whether RingCentral owned and managed or Bring Your Own Device (BYOD) device, are enrolled in the full RingCentral managed device program.

D. Data Loss Prevention
RingCentral employs a comprehensive system to prevent the inadvertent or intentional compromise of RingCentral data and Protected Data.

E. Due Diligence Over Sub-Contractors
RingCentral will:
i. maintain a security process to conduct appropriate due diligence prior to engaging sub-contractors. ii. assess the security capabilities of any such sub-contractors on a periodic basis to ensure subcontractors’ ability to comply with the Measures described in this document.
iii. apply written information security requirements that oblige sub-contractors to adhere to RingCentral’s key information security policies and standards consistent with and no less protective than these Measures.

F. Non-Disclosure
RingCentral ensures that employees and contractors/sub-contractors who process Protected Data are bound in writing by obligations of confidentiality.

6. Physical Security
A. General
RingCentral:
i. Restricts access to, controls, and monitors all physical areas where RingCentral Services process Protected Data (“Secure Areas”).
ii. Maintains appropriate physical security controls on a 24-hours-per-day, 7-days-per-week basis (“24/7”).

Master Services Agreement Page 16 of 20
iii. Revokes any physical access to Secure Areas promptly after the cessation of the need to access buildings and system(s). iv. Performs review of access rights on at least an annual basis.

B. Access and Authorization Processes
RingCentral maintains a documented access authorization and logging process. The authorization and logging process will include at minimum:
i. Reports detailing all access to Secure Areas, including the identities and dates and times of access. ii. Reports to be maintained for at least one year as allowed by law. iii. Video surveillance equipment to monitor and record activity at all Secure Areas entry and exit points on a 24/7 basis to the extent permitted by applicable laws and regulations.
iv. Video recording to be maintained for at least 30 days or per physical location provider’s policies.

C. Data Centers
To the extent that RingCentral is operating or using a data center, RingCentral ensures that physical security controls are in alignment with industry standards such as ISO 27001 and SSAE 16 or ISAE 3402 or similar standard including:
i. Perimeter security including fencing/barriers and video surveillance. ii. Secure access including security guard/reception.
iii. Interior access controlled through RFID cards, 2FA, anti-tailgating controls. iv. Redundant utility feeds and support for continuous delivery through backup systems. v. Redundant network connection from multiple providers.

7. Logical Security
A. User Identification and Authentication
RingCentral:
i. Maintains a documented user management lifecycle management process that includes manual and/or automated processes for approved account creation, account removal and account modification for all Information Resources and across all environments.
ii. Ensures that RingCentral users have an individual accounts for unique traceability. iii. Ensures that RingCentral users do not use shared accounts; where shared accounts are technically required controls are in place to ensure traceability.
iv. RingCentral user passwords are configured aligned with current NIST guidance.

For the customer facing applications, Customers may choose to integrate with SSO (Single Sign on) so that Customer retains control over their required password settings including Customer’s existing MFA/2FA solutions.

B. User Authorization and Access Control
RingCentral:
i. Configures remote access to all networks storing or transmitting Protected Data to require multi-factor authentication for such access.
ii. Revokes access to systems and applications that contain or process Protected Data promptly after the cessation of the need to access the system(s) or application(s).
iii. Has the capability of detecting, logging, and reporting access to the system and network or attempts to breach security of the system or network.

RingCentral employs access control mechanisms that are intended to:
i. Limit access to Protected Data to only those Personnel who have a reasonable need to access said data to enable RingCentral to perform its obligations under the Agreement. ii. Prevent unauthorized access to Protected Data.
iii. Limit access to users who have a business need to know. iv. Follow the principle of least privilege, allowing access to only the information and resources that are necessary. v. Perform review access controls on a minimum annual basis for all RingCentral’s systems that transmit, process, or store Protected Data.

Master Services Agreement Page 17 of 20

8. Telecommunication and Network Security
A. Network Management
RingCentral:
i. Maintains network security program that includes industry standard firewall protection and two-factor authentication for access to RingCentral’s networks.
ii. Deploys an Intrusion Detection Systems (IDS) and/or Intrusion Prevention Systems (IPS) to generate, monitor, and respond to alerts which could indicate potential compromise of the network and/or host. iii. Monitors web traffic from the Internet and from internal sources to detect cyber-attacks including Distributed Denial of Service (DDoS) attacks against web sites / services and to block malicious traffic.

B. Network Segmentation
RingCentral:
i. Implements network segmentation between the corporate enterprise network and hosting facilities for Services. ii. Ensures separation between environments dedicated to development, staging, and production. iii. Restricts access between environments to authorized devices. iv. Controls configuration and management of network segregation and firewall rules through a formal request and approval process.

C. Network Vulnerability Scanning
RingCentral:
i. Runs internal and external network vulnerability scans against information processing systems at least quarterly. ii. Evaluates findings based on (where applicable) CVSS score and assessment of impact, likelihood, and severity. iii. Remediates findings following industry standard timelines.

9. Operations Security
A. Asset Management
RingCentral:
i. Maintains an accurate and current asset register covering hardware and software assets used for the delivery of services. ii. Maintains accountability of assets throughout their lifecycle. iii. Maintains processes to wipe or physically destroy physical assets prior to their disposal.

B. Configuration Management
RingCentral:
i. Maintains baseline configurations of information systems and applications based on industry best practices including:
a. Removal of all vendor-provided passwords.
b. Remove/disable unused services and settings.
c. Anti-malware/endpoint protection as technically feasible. ii. Enforces security configuration settings for systems used in the provision of the Services. iii. Ensures that clocks of all information processing systems are synchronized to one of more reference time sources.

C. Malicious Code Protection
i. To the extent practicable, RingCentral has endpoint protection in place, in the form of Endpoint Detection and Response (EDR) and/or antivirus software, installed and running on servers and workstations. ii. EDR alerts are monitored, and immediate action is taken to investigate and remediate any abnormal behavior. iii. Where used, antivirus software will be current and running to scan for and promptly remove or quarantine viruses and other malware on Windows servers and workstations.

D. Vulnerability, Security Patching
RingCentral:
i. Monitors for publicly disclosed vulnerabilities and exposures for impact to Supplier’s information systems and products.

Master Services Agreement Page 18 of 20
ii. Ensures quality assurance testing of patches prior to deployment. iii. Ensures that all findings resulting from network vulnerability scanning and relevant publicly disclosed vulnerabilities and exposures are remediated according to industry best practices, including CVSS score and assessment of impact, likelihood and severity and are remediated following industry standard timelines.

E. Logging and Monitoring
RingCentral shall ensure that:
i. All systems, devices or applications associated with the access, processing, storage, communication and/or transmission of Protected Data, generate audit logs.
ii. Access to Protected Data is logged.
iii. Logs include sufficient detail that they can be used to detect significant unauthorized activity. iv. Logs are protected against unauthorized access, modification, and deletion. v. Logs are sent to a centralized location for aggregation and monitoring.

10. Software Development and Maintenance
A. Secure Development Lifecycle
RingCentral:
i. Applies secure development lifecycle practices, including, during design, development, and test cycles. ii. Ensures that products are subject to security design review including threat considerations and data handling practices. iii. Ensures that Services are subject to a secure release review prior to promotion to production.

B. Security Testing
As part of the secure development lifecycle, RingCentral:
i. Performs rigorous security testing, including, as technically feasible:
a. static code analysis.
b. source code peer reviews.
c. dynamic and interactive security testing.
d. security logic, or security “QA” testing.
ii. Ensures that Internet-facing applications are subject to application security assessment reviews and testing to identify common security vulnerabilities as identified by industry-recognized organizations (e.g., OWASP Top 10 Vulnerabilities, CWE/SANS Top 25 vulnerabilities).
iii. For all mobile applications (i.e. running on Android, Blackberry, iOS, Windows Phone) that collect, transmit or display Protected Data, conducts an application security assessment review to identify and remediate industry-recognized vulnerabilities specific to mobile applications.
iv. Does NOT use Protected Data for testing.
v. Makes all reasonable effort to identify and remediate software vulnerabilities prior to release.

C. Annual Penetration Testing
RingCentral:
i. Engages qualified, independent third-party penetration testers to perform annual penetration test against its Products and environments where Protected Data is hosted.
ii. Requires sub-processors to perform similar penetration testing against their systems, environments, and networks. iii. Ensures remediation of all findings in a commercially reasonable period of time.

D. Product Vulnerability Management
RingCentral:
i. Uses commercially reasonable efforts to regularly identify software security vulnerabilities in RingCentral Services. ii. Provides relevant updates, upgrades, and bug fixes for known software security vulnerabilities, for any software provided or in which any Protected Data is processed.

Master Services Agreement Page 19 of 20
iii. Ensures that all findings resulting from internal and external testing are evaluated according to industry best practices, including CVSS score and assessment of impact, likelihood and severity and are remediated following industry standard timelines.

E. Open Source and Third-Party Software
RingCentral:
i. Maintains an asset registry of all third-party software (TPS) and open-source software (OSS) incorporated into the Services. ii. Uses commercially reasonable efforts to ensure the secure development and security of open-source software and thirdparty software used by RingCentral. iii. Uses commercially reasonable efforts to evaluate, track and remediate vulnerabilities of open-source software (OSS) and other third-party libraries that are incorporated into the Services.

11. Data Handling
A. Data Classification
RingCentral maintains data classification standards including:
i. Public data, data that is generally available or expected to be known to the public. ii. Confidential data, data that is not available to the general public.

Protected Data is classified as RingCentral Confidential Data.

B. Data Segregation
RingCentral:
i. Ensures physical or logical segregation of Protected Data from other customers’ data. ii. Ensures physical separation and access control to segregate Protected Data from RingCentral data.

C. Encryption of Data
RingCentral:
i. Shall ensure encryption of Protected Data in electronic form in transit over all public wired networks (e.g., Internet) and all wireless networks (excluding communication over Public Switch Telephone Networks). ii. Excepting the Engage Communities feature of Engage Digital, shall ensure encryption of Protected Data in electronic form when stored at rest.
iii. Uses industry standard encryption algorithms and key strengths to encrypt Protected Data in transit over all public wired networks (e.g., Internet) and all wireless networks.

D. Destruction of Data
RingCentral shall:
i. Ensure the secure deletion of data when it is no longer required. ii. Ensure that electronic media that has been used in the delivery of Services to the Customer will be sanitized before disposal or repurposing, using a process that assures data deletion and prevents data from being reconstructed or read. iii. Destroy any equipment containing Protected Data that is damaged or non-functional.

12. Incident Response
RingCentral’s incident response capability is designed to comply with statutory and regulatory obligations governing incident response. As such, RingCentral:

A. Maintains an incident response capability to respond to events potentially impacting the confidentiality, integrity and/or availability of Services and/or data including Protected Data.

B. Has a documented incident response plan based on industry best practices.

C. Has a process for evidence handling that safeguards the integrity of evidence collected to including allowing detection of unauthorized access to.

D. Will take appropriate steps and measures to comply with statutory and regulatory obligations governing incident response.

When RingCentral learns of or discovers a security event which impacts Protected Data, RingCentral will notify Customer without undue delay and will take commercially reasonable steps to isolate, mitigate, and/or remediate such event.

Master Services Agreement Page 20 of 20

13. Business Continuity and Disaster Recovery
A. Business Continuity
RingCentral:
i. Ensures that responsibilities for service continuity are clearly defined and documented and have been allocated to an individual with sufficient authority.
ii. Has a business continuity plan (BCP) in place designed to provide ongoing provision of the Services to Customer. iii. Develops, implements, and maintains a business continuity management program to address the needs of the business and Services provided to the Customer. To that end, RingCentral completes a minimum level of business impact analysis, crisis management, business continuity, and disaster recovery planning. iv. Ensures that the scope of the BCP encompasses all relevant locations, personnel and information systems used to provide the Services.
v. Ensure that its BCP includes, but is not limited to, elements such location workarounds, application workarounds, vendor workarounds, and staffing workarounds, exercised at minimum annually. vi. Reviews, updates, and tests the BCP at least annually.

B. Disaster Recovery
RingCentral:
i. Maintains a disaster recovery plan, which includes, but is not limited to, infrastructure, technology, and system(s) details, recovery activities, and identifies the people/teams required for such recovery, exercised at least annually. ii. Ensures that the disaster recovery plan addresses actions that RingCentral will take in the event of an extended outage of service.
iii. Ensures that its plans address the actions and resources required to provide for (i) the continuous operation of RingCentral, and (ii) in the event of an interruption, the recovery of the functions required to enable RingCentral to provide the Services, including required systems, hardware, software, resources, personnel, and data supporting these functions.

THIS SERVICE ORDER (“Service Order” or “SOF”), is executed and effective upon the date of the signature set forth in the signature block below (“Effective Date”) and is by and between Verve Cloud, Inc. on behalf of those operating subsidiaries providing the Service(s) hereunder (“Verve”) and Customer (as shown below) and is governed by and subject to the Verve Standard Service Terms and Conditions posted to the Verve website at https://www.vervecloud.com/terms-and-conditions01/ (or successor URL) or, if applicable, an existing services agreement mutually executed by the parties (each, as appropriate, a “Service Agreement”). Except as specifically modified herein, all other terms and conditions of the Service Agreement shall remain unamended and in full force and effect.

Customer Service Order Form
FOR: La Palma City Hall
Quote Details:

Attn: Conal McNamara
Submitted By:

Channel Partner: Preet Singh (Sandler)
Date:10/31/2024 Channel Manager: Al Allen

ID Service Name Qty
Monthly
Charges
Total
Monthly
La Palma City Hall - 7822 Walker St La Palma, CA 90623-1721 92616 High-Speed Internet-100M Dedicated Fiber 1.00 $675.00 $675.00 92617 IP Addresses \29 (5 Usable) 1.00 $0.00 $0.00
92618 Verve Managed Edge Device 1.00 $0.00 $0.00
Total Monthly Charges $675.00
Date: 10/31/2024
Salesperson: Al Allen Term: 36 Months
Company: La Palma City Hall
Prepared for: Conal McNamara
One Time Charges
Total One
Time
Total One Time Charges $0.00
Quote ID: 46654

All rights reserved. Confidential

AUTHORIZED CONTACTS
Name Email Address Phone Number
Conal McNamara [email protected] (714) 690-3334

SERVICE ORDER FORM NOTES
Special Notes:

Free professional install.

Standard Notes:

In addition to the charges for your Verve Services, you are responsible for all federal, state and local sales, use and excise taxes and any applicable government or regulatory fees, assessments, taxes or other charges for the Services, including any universal service fund charges. Also note that other carrier cost recovery fees may apply, including a Regulatory Recovery Fee and E911 Cost Recovery Fee. The pricing listed on this Service Order Form (“SOF”) is only valid for 90 days. In the event that Verve’s network infrastructure costs increase prior to installation, Verve reserves the right to change the pricing based on the difference.

If the pricing is changed, Customer will have the right to either accept the new pricing or cancel this order. Every new service installation has associated installation fees. Unless otherwise stated, these install fees are $500 per broadband circuit and $50 per voice seat/user. Verve may elect to waive these install fees in conjunction with term contracts.

SIGNATURES
Client approves and accepts this SOF, which fully incorporates the Verve Cloud Standard Terms and Conditions. Client and the individual signing below represent that such individual has the authority to bind Client to this SOF. SOF requires both signatures to be valid.

CLIENT VERVE CLOUD, INC.

Name: Conal McNamara Name: Verve Authorized Signature
Title: Title:

Signature: customersignDS Signature: internalsign
Date: customerdateDS Date: internaldate

Agenda Item No. 13 November 5, 2024 | 1
City of La Palma
Agenda Item No. 13
MEETING DATE: November 5, 2024
TO: City Council
FROM: City Manager
SUBMITTED BY: Jesse Amend, Captain
AGENDA TITLE: Approval to Purchase Three Electronic Portable Message Boards RECOMMENDED ACTION:

It is recommended that the City Council authorize the City Manager to execute the attached quote from All Traffic Solutions Inc. for the purchase of three electronic portable message boards.

SUMMARY:

In June 2024, the City received notification of its approval for the California Highway Patrol's Cannabis Tax Fund Grant Program, awarding a total of $88,000. This grant aims to support the La Palma Police Department in reducing and addressing the impact of impaired driving. Accordingly, the grant funds may be allocated toward advanced officer training on impaired driving, public education initiatives, enhanced impaired driving enforcement, and the purchase of portable electronic message board signs.

The message board signs will primarily be used to display educational messaging to discourage driving under the influence, promoting public awareness of the risks and consequences associated with impaired driving. Additionally, these portable signs will serve to enhance visibility for enforcement efforts, remind drivers of safety measures, and create a deterrent against unsafe driving behaviors.

Positioned strategically near main intersections and key areas, the signs will also alert drivers to their speed, encouraging voluntary compliance with traffic laws and fostering safer driving habits.

After thorough research, staff identified All Traffic Solutions Inc. as a reputable provider specializing in high-quality portable electronic message boards. Known for their reliability and advanced technology, All Traffic Solutions’ products are widely used in law enforcement and public safety applications. Staff determined that their message boards meet the Department’s specific needs for durability, ease of use, and effectiveness in delivering clear, impactful educational messaging against driving under the influence. Additionally, the company’s strong customer support and maintenance options make it a suitable choice for the Department’s long-term operational requirements.

The total cost of three portable electronic message board signs is $60,268.18.

FISCAL IMPACT:

Agenda Item No. 13 November 5, 2024 | 2
The $60,268.18 cost for three portable electronic message board signs is reimbursable through the Cannabis Tax Fund Grant, leaving $27,731.82 for other grant-eligible expenses.

ATTACHMENTS:

1. Message Boards quote

Agenda Item No. 14 November 5, 2024 | 1
City of La Palma
Agenda Item No. 14
MEETING DATE: November 5, 2024
TO: City Council
FROM: City Manager
SUBMITTED BY: Belinda Deines, Community Development Manager AGENDA TITLE: Review and Consideration of Conditional Use Permit 393 to Establish an Adult Day Care Use (My Day Program, Inc.) Located at 7252 Walker Street (APN 263-061-12)
RECOMMENDED ACTION:

It is recommended that the City Council take the following actions:
a) Open Public Hearing
b) Receive Staff Report
c) Council Member Comments and Questions
d) Receive Public Input
e) Close Public Hearing
f) Adopt a Resolution approving Conditional Use Permit 393 CEQA exempt pursuant to Section 15301 Class 1 [Existing Facilities] SUMMARY:

On March 5, 2024, Elizabeth Santos (Applicant) applied for a Conditional Use Permit (CUP) to establish My Day Program, Inc., an adult day care facility at 7252 Walker Street (APN 263-061- 12). Pursuant to the La Palma Municipal Code, an adult day care use in the Single-Family Residential (R-1) Zoning District requires City Council approval of a CUP. The Applicant proposes to convert an existing single-family residence into an adult day care use for developmentally disabled adults. The facility’s hours of operation are from 8:00 a.m. to 2:00 p.m., Monday through Friday, and closed on weekends. This day program geared toward community integration is funded by the Regional Center of Orange County and will be licensed under the Community Care Licensing Division of the State of California Department of Social Services.

Agenda Item No. 14 November 5, 2024 | 2
BACKGROUND:

The subject site is located on the east side of Walker Street between Conifer Drive and Orangethorpe Avenue, and is designated R-1 Zoning District according to the City’s Zoning Map. The site is bordered by Brookside Apartments to the north and residential homes to the west, east, and south. The property is improved with an existing 3,752 square-foot single-family residence on a 15,122 square-foot lot. The existing single-family residence is currently vacant and gains direct vehicular access from Walker Street.

Surrounding zoning and land uses are as follows:

ANALYSIS:

Pursuant to La Palma Municipal Code (LPMC) Section 44-10, “day care facilities” means facilities that provide non-medical care and supervision of persons for periods of less than 24 hours. These facilities are required to be licensed by the State of California Department of Social Services. Adult day care, business, as defined by California Health and Safety Code Section 1502, means commercial or nonprofit adult day care facilities designed and approved to accommodate seven or more adults and includes senior centers.

My Day Program, Inc. is a community-based program for developmentally disabled individuals, and the Applicant is authorized to provide services as a vendor by the Regional Center of Orange County. The Regional Center of Orange County (RCOC) is a private, nonprofit organization contracted by the State of California to coordinate lifelong services and support for individuals with developmental disabilities and their families. RCOC is the primary source to obtain local services and support to help them live safely and with dignity in the community. RCOC serves over 26,000 Orange County residents with autism, epilepsy, cerebral palsy, and intellectual cognitive disabilities.

A letter of support from RCOC states that the proposed My Day Program, Inc. was selected for

Agenda Item No. 14 November 5, 2024 | 3
development in their Request for Proposals process due to the Applicant’s “demonstrated knowledge and experience” as well as “the need for the geographic location to be served… in La Palma and surrounding cities” (Attachment 2). According to the City’s Housing Element, RCOC contracts with local businesses to offer a wide range of services to individuals with developmental disabilities and their families. The proposed day program includes services for developing social interactions with others, self-advocacy and employment skills, community integration skills such as accessing community services, and social and recreational skills.

The number of clients will be limited to 30 individuals who will be accompanied by staff and job coaches with program activities to take place indoors. The facility’s hours of operation are from 8:00 a.m. to 2:00 p.m., Monday through Friday, and closed on weekends. No overnight stay, residential, or skilled nursing uses are proposed at the site. The proposed use involves implementation of an “Adult Development Program” that is non-medical but focused on developing clients’ social skills and job coaching. The site’s proximity to the City’s Community Center, Central Park, Public Library, La Palma Intercommunity Hospital, and other public facilities and medical-related resources complement well with the proposed adult day care programming focused on social and community integration for their clients.

Site/Floor Plan: The site plan and floor plans are provided as “EXHIBIT A” to Attachment 1. The floor plan includes a recreational room, academic room, computer room, kitchen, three bathrooms, and three offices. Below is the proposed site/floor plan layout:

Transportation: To reduce traffic impacts on Walker Avenue, the applicant proposes to arrange for pick-up and drop-off of their clients from their homes to the proposed site. The Applicant will utilize three (3) designated 17-passenger seat vans to shuttle clients to the facility. Vehicles parked at the site will be limited to management and employees during hours of operation. A total of six (6) parking stalls are proposed onsite, one ADA van accessible, and a designated Type A Loading Zone.

Agenda Item No. 14 November 5, 2024 | 4
Proposed improvements include hardscape for additional parking stalls and a secondary driveway approach/curb-cut with relocation of the existing palm tree.

Compatibility with Surrounding Uses: Pursuant to LPMC Section 44-78, Table II-1, an adult day care use with more than seven (7) clients is considered a business and subject to a CUP within the R-1 Zoning District. The proposed use seeks to maintain the building scale and appearance as a single-family residence. The property is bounded by an apartment complex carport and driveway to the north and Walker Street to the west, which allows for additional distance from activity areas in the main building. While single-family homes are located immediately adjacent to the subject site, the area closest to the homes consist of the detached office building and storage shed. The subject property is screened by solid walls and fencing along the rear and side property lines.

General Plan Consistency: The proposed adult day care use is consistent with the intent of the R-1 Zoning District and the following goals and policies of the General Plan: POLICY LU-2.4, GOAL LU4, POLICY LU-4.5, and POLICY LU-5.2.

State Housing Law requires that the City evaluate the needs of people with developmental disabilities when planning and zoning for affordable housing in its 2021-2029 Housing Element. This includes estimating the number of people with developmental disabilities in the area, assessing their housing needs, and discussing potential resources. Specifically, the 2021-2029 Housing Element states in its findings and recommendations that the City will strengthen its relationship with the Regional Center of Orange County to encourage development of housing and services for developmentally disabled persons. The proposed adult day care use to provide supportive services for developmentally disabled individuals complies with the City’s General Plan Housing Element policies and Programs 8, 11, and 12.

Conditions of Approval: Conditions of Approval are proposed for Conditional Use Permit 393 and contained as “EXHIBIT B” to the proposed Resolution provided as Attachment 1 to this report. Findings for CUP Approval: This Project requires approval of a CUP pursuant to Zoning Code Sec. 44-139, in which Sections 44-851 and 44-788 include the necessary findings. All findings can be made and are provided as “EXHIBIT C” and “EXHIBIT D” to the proposed Resolution provided as Attachment 1 to this report.

Conflict of Interest (500 feet): None.

ENVIRONMENTAL REVIEW:

Pursuant to California Environmental Quality Act (CEQA), the project is Categorically Exempt per Section 15301(a) Existing Facilities. Class 1 consists of consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. It can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

NOTIFICATION:

Public hearing notices were sent via mailer to all property owners and tenants within 300 feet of the proposed Project, published in the October 23, 2024, edition of the local Event-News Enterprise newspaper, and posted at three locations: (1) on the Bulletin Board of the City Manager-City Clerk's Office, City Hall, 7822 Walker Street, La Palma, California 90623; (2) on the Bulletin Board at the La Palma Community Services Department, 7821 Walker Street, La Palma, California 90623; and (3)

Agenda Item No. 14 November 5, 2024 | 5
subject site. The City also increased awareness of this Public Hearing through the use of its digital technology capabilities, which include the Notify Me alerts and the City Website.

CONCLUSION:

Staff finds that the proposed adult day care use is consistent with the R-1 Zoning District, the City’s Housing Element, and other supportive services in the immediate vicinity. Staff recommends that the City Council approve Conditional Use Permit 393, subject to conditions contained in the draft resolution.

FISCAL IMPACT:

None.

ATTACHMENTS:

1. Draft Resolution

2. Letter of Support from Regional Center of Orange County

Resolution No. 2024-_

RESOLUTION NO. 2024-_

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA

PALMA, CALIFORNIA, APPROVING CONDITIONAL USE
PERMIT 393 TO ESTABLISH AN ADULT DAY CARE USE
LOCATED AT 7252 WALKER STREET (APN 263-061-12) IN THE
SINGLE-FAMILY RESIDENTIAL (R-1) ZONING DISTRICT
WHEREAS, the City of La Palma wishes to protect and preserve the quality of the nonresidential and residential areas of the City, as well as the quality of life throughout the City, through effective land use and planning; and,
WHEREAS, the La Palma Municipal Code Chapter 44 (Zoning) requires that an adult day care use in the Single-Family Residential (R-1) Zoning District is subject to a Conditional Use Permit (CUP); and,
WHEREAS, the Applicant, Elizabeth Santos of My Day Program, Inc., filed a CUP application to establish an adult day care use at the property located at 7252 Walker Street, La Palma, CA 90623 (APN 263-061-12); and,
WHEREAS, said verified application constitutes a request as provided by Chapter 44 of the La Palma Municipal Code; and,
WHEREAS, Conditions of Approval have been prepared and attached as “EXHIBIT B” to ensure the orderly and safe operation of the proposed adult day care use to maintain the quality of life in La Palma; and,
WHEREAS, pursuant to the California Environmental Quality Act (CEQA), the project is Categorically Exempt per Section 15301(a) Class 1 of the CEQA Guidelines in that the project involves conversion of an existing single-family dwelling into a commercial adult day care facility and therefore it can be seen with certainty that there is no possibility that the Project may have any significant effect on the environment; and,
WHEREAS, on November 5, 2024, the City Council conducted a duly noticed Public Hearing, considered testimony and evidence, if any, of all persons desiring to be heard at the hearing held with respect thereto.

NOW, THEREFORE, the City Council of the City of La Palma resolves as follows:

SECTION 1. The foregoing recitals are incorporated herein and made a part hereof.

SECTION 2. Based on the evidence presented, the City Council adopts the following findings and approves Conditional Use Permit 393, subject to the conditions:
1) The proposed use is conditionally allowed within the subject zoning district, would not impair the integrity and character of the district, and complies with all applicable provisions of this Development Code.
2) The proposed use is consistent with the goals, policies, general land uses, and programs of the General Plan, and any applicable specific plan and is in compliance with all City, State, and Federal Laws and Regulations.

Resolution No. 2024-_

3) The approval of the CUP for the proposed use is in compliance with the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code § 21000 et seq.).
4) The site is suitable for the type and intensity of use or development that is proposed. 5) The proposed project will have no adverse effect on abutting or adjacent properties and is compatible with those properties.
6) The proposed use will not be adverse to the public health, safety, or general welfare.

The factual findings for which are attached as “EXHIBIT C” to this Resolution, and incorporated herein by this reference.

SECTION 3. The City Council finds and determines that the approval of Conditional Use Permit 393 is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines Section 15301 Class 1 [Existing Facilities] in which Class 1 consists of consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. It can be seen with certainty that there is no possibility that the activity in question will not have a significant effect on the environment, and therefore the activity is not subject to CEQA.

SECTION 4. Based on the foregoing, the City Council hereby approves Conditional Use Permit 393, a request by the Applicant, My Day Program, Inc., to establish an adult day care use located at 7252 Walker Street (APN 263-061-12), in the R-1 Zoning District, as depicted in the site and floor plans included as “EXHIBIT A” of this Resolution, subject to the Conditions of Approval, which are attached as “EXHIBIT B” to this Resolution, and incorporated herein by this reference.

SECTION 5. This Project approval shall become effective following the expiration of a fifteen (15) day appeal period without filing of an appeal application. The appeal period shall expire Wednesday, November 20, 2024, at 6:30 p.m. The expiration of this approval is subject to Section 44-852 of the La Palma Municipal Code.

SECTION 7. City staff is hereby authorized and directed to file a Notice of Exemption with respect to the approval of Conditional Use Permit 393.

APPROVED AND ADOPTED by the City Council of La Palma at a regular meeting on the 5 th day of November, 2024.
_______________________________
Marshall Goodman
Mayor
ATTEST:
_______________________________
Kimberly Kenney, CMC
City Clerk

Resolution No. 2024-_

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF LA PALMA )
I, KIMBERLY KENNEY, City Clerk of the City of La Palma, California, DO HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of said City at a regular meeting of said City Council held on the 5
th day of November, 2024, and that it was so adopted by called vote as follows:

AYES:

NOES:
_______________________________
Kimberly Kenney, CMC
City Clerk

Exhibit A Resolution No. 2024-_

EXHIBIT A
7252 Walker Street, La Palma, CA 90623
(APN 263-061-12)
My Day Program, Inc. Tenant Improvement Plans
[BEHIND THIS PAGE]

Exhibit A Resolution No. 202
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Exhibit A Resolution No. 202
4-_

Exhibit A Resolution No. 202
4-_

Exhibit A Resolution No. 202
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Exhibit A Resolution No. 202
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Exhibit A Resolution No. 202
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Exhibit B Resolution No. 2024-_

EXHIBIT B

CONDITIONS OF APPROVAL FOR
CONDITIONAL USE PERMIT (CUP) 393
My Day Program, Inc.
7252 Walker Street, La Palma, CA 90623
(APN 263-061-12)
GENERAL:

1. Conditional Use Permit 393 permits an adult day care use for developmentally disabled adults, to operate solely contained on the subject property as depicted on the floor plan provided as “EXHIBIT A” to this Resolution.

2. The Applicant or Applicant’s Agent for the adult day care business shall obtain and maintain a valid City Business License at all times.

3. Any future intensification of the adult day care use will require an Amendment to Conditional Use Permit 393.

4. Applicable licensing from the State of California Department of Social Services Community Care Licensing Division shall remain active and valid at all times. The adult day care facility shall be operated in accordance with all applicable State and local health and safety regulations.

5. The City Business License Officer shall be made aware of any changes to the status of the adult day care and/or its licensing status with the State immediately via phone call and a formal letter from the owner/operator of the adult day care.

6. All activities conducted in association with the adult day care use shall be conducted indoors at all times. The owner/operator of the adult day care shall be responsible for reasonably controlling the conduct of persons on the site. No skilled nursing, alcohol or drug treatment services shall be provided at the adult day care facility. Overnight residential stay shall not be permitted by any occupants, including clients and employees.

7. A building permit shall be obtained for any proposed tenant improvement construction. An encroachment permit shall be obtained for proposed construction within the public rightof-way, including but not limited to the secondary driveway curb cut and relocation and/or replacement of the existing palm tree.

8. An Agreement to the Conditions of Approval and an Agreement to Indemnify and Hold Harmless shall be executed the Applicant, and filed with the Community Development Department, within fifteen (15) days of the City Council approval of CUP 393. The Agreement to the Conditions of Approval shall run with the land and be binding in any subsequent owners, heirs or assigns.

9. The Applicant and the Applicant's successors in interest shall be fully responsible for knowing and complying with all Conditions of Approval, including making known the Conditions to the City for future governmental permits or actions.

Exhibit B Resolution No. 2024-_

10. A copy of these Conditions of Approval shall be retained at the subject property at all times and shall be produced immediately upon request of the La Palma Police Department, Code Enforcement Official, or any other employee or agent of the City of La Palma or State of California Department of Social Services Community Care Licensing Division.

The manager(s) and all employees at the premises shall be knowledgeable of the Conditions.

11. In the event the City of La Palma receives evidence of violation of any of these Conditions, or evidence that the retail pharmacy land use adversely impacts any nearby uses, or constitutes a public nuisance, the City Council may conduct a Public Hearing to review the allegations and supporting evidence, and determine if compliance has been maintained and/or if adverse impacts to other persons or a public nuisance has resulted from the operation of the retail pharmacy. The Applicant in such case shall prepare a radius map and cause a notice to be mailed to all owners of properties within a 300-foot radius of the property and current occupants located at 7252 Walker Street. Upon review of the matter following the Public Hearing, the City Council may revoke or modify the Conditional Use Permit 393.

12. The Applicant shall indemnify, defend, and hold harmless the City of La Palma and its elected city council, appointed boards, commissions, committees, officials, employees, volunteers, contractors, consultants, and agents from and against any and all claims, liabilities, losses, fines, penalties, and expenses, including without limitation litigation expenses and attorney’s fees, arising out of either the City’s approval of the Project or actions related to the Property or the acts, omissions, or operations of the Applicant and its directors, officers, members, partners, employees, agents, contractors, and subcontractors of each person or entity comprising the applicant/developer with respect to the ownership, planning, design, construction, and maintenance of the Project and the Property for which the Project is being approved. In addition to the above, within fifteen (15) days of this approval, the Applicant shall enter into an indemnification agreement with the City. The indemnification agreement shall be substantially the same as the form agreement currently on file with the City.

13. The Community Development Department shall have the authority for interpreting the Conditions of Approval granted herein by the City, in cases where “uncertainty” or “ambiguity” or “discrepancies” exist between approved plans, interpretations of established conditions of approval, and/or new issues that stem from plan check or construction that were not addressed or considered as part of an original project approval and require reconsideration or interpretation of the Conditions of Approval so long as such interpretation results in only “minor” revisions to the project scope to that which was originally approved and do not result in a substantive modification to the approved project.

14. Conditional Use Permit 393 permit/entitlement shall expire and be of no further force or effect if:
a. The permit is not established within 180 days of the permit's effective date or such other time period designated by the permit's approval, by State law or by the La Palma Municipal Code.
b. After establishment, the use or activity for which the permit was approved is discontinued or abandoned for a period of one (1) year.

Exhibit B Resolution No. 2024-_

A time extension of this Conditional Use Permit 393 shall be subject to the Applicant filing a written request for an extension of time prior to the expiration of the permit/entitlement, together with the filing fee required.

OPERATIONS:

15. A sign indicating a 24-hour emergency phone number and contact person shall be kept current and posted on the building near the entrance as a Good Neighbor policy measure.

16. No indoor furniture shall be allowed outdoors.

17. All exterior walkways shall be kept clear for handicapped accessibility.

18. No overnight vehicle or van parking shall be permitted at any time.

19. The adult day care operations shall be conducted in a manner that does not create a public or private nuisance. Any such nuisance must be abated immediately upon notice by the City of La Palma.

20. The daily business hours for the operation of the adult day care facility shall be as follows:
• Monday through Friday from 8:00 a.m. to 2:00 p.m.
• Closed on Saturdays and Sundays.

All business activities shall be conducted indoors at all times.

22. The operating hours shall be posted inside and on the front door of the business and shall be enforced by employees. Minor modifications to hours of operating hours maybe approved by the Community Development Department, otherwise major changes are subject to a duly noticed Public Hearing for an Amendment to CUP 393.

23. The placement of outdoor storage bins (including containers, trailers, or enclosures) on the subject site shall be prohibited, except during the active construction with issued building permits.

27. Approval of a Community Event Permit and/or Temporary Use Permit shall be obtained for any special events, including any outdoor activity, organized or sponsored by the adult day care facility. A Community Event Permit and/or Temporary Use Permit must be approved by the City prior to the start of any special event or promotion.

ORANGE COUNTY FIRE AUTHORITY:

28. The Applicant or responsible party shall submit the plan(s) listed below to the Orange County Fire Authority for review. Per Orange County Fire Authority Service Request Number 535881, the proposed use is subject to the following conditions:

Design Review: Portions of the project that are deferred shall be subject to the codes,

Exhibit B Resolution No. 2024-_

standards, and other applicable requirements in force on the date that the deferred plan is submitted to OCFA. The development review does not imply or express approvals on any subsequent plan submittal.

Plan Submittal Sequence: The applicant or responsible party shall submit the plan(s) listed below to the Orange County Fire Authority for review. Approval shall be obtained on each plan prior to the event specified.

Prior to OCFA clearance of a final map or issuance of a precise grading permit or a building permit, if a grading permit is not required:
• Fire Master Plan (service code PR145)
• Alternate methods and materials (AM&M) request (PR910) for rated construction (1-HR) and extension of fire sprinkler system at covered breezeway for hose pull deficiency.

Prior to issuance of a building permit:
• Architectural (service codes PR212-PR220, abbreviated review) • Alternate methods and materials (AM&M) request (PR910) for rated construction (1-HR) and extension of fire sprinkler system at covered breezeway for hose pull deficiency.
• Underground piping for private hydrants and fire sprinkler systems (service code PR470-
• PR475)
• Fire sprinkler system (service codes PR400-PR465)
• Alternate methods and materials (AM&M) request (PR910) for rated construction (1-HR) and extension of fire sprinkler system at covered breezeway for hose pull deficiency.

Prior to concealing interior construction:
• Fire alarm system (service code PR500-PR520)
Specific submittal requirements may vary from those listed above depending on actual project conditions identified or present during design development, review, construction, inspection, or occupancy. Portions of the project that are deferred shall be subject to the codes, standards, and other applicable requirements in force on the date that the deferred plan is submitted to OCFA. Standard notes, guidelines, informational bulletins, submittal instructions, and other information related to plans reviewed by the OCFA may be found by visiting ocfa.org on the Planning and Development Section homepage.

Temporary/Final Occupancy Inspections: Prior to issuance of temporary or final certificate of occupancy, all OCFA inspections shall be completed to the satisfaction of the OCFA inspector and be in substantial compliance with codes and standards applicable to the project and commensurate with the type of occupancy (temporary or final) requested.

Inspections shall be scheduled at least five days in advance by calling OCFA Inspection Scheduling at 714-573-6150.

Lumber-drop Inspection: After installation of required fire access roadways and hydrants, the applicant shall receive clearance from the OCFA prior to bringing combustible building materials on-site. Call OCFA Inspection Scheduling at 714-573-6150

Exhibit B Resolution No. 2024-_

with the Service Request number of the approved fire master plan at least five days in advance to schedule the lumber drop inspection.

CONSTRUCTION:

29. All construction plans are required to be submitted to the Building & Safety Division for plan check, permit issuance, and payment of permit fees prior to commencement of construction activity consistent with “EXHIBIT A” to this Resolution.

30. The Applicant shall ensure that all construction contractors and subcontractor personnel are made aware of the required best management practices and good housekeeping measures for the project site and any associated construction laydown areas.

40. The Applicant shall be responsible for informing all subcontractors, consultants engineers, or other business entities providing services related to the Project of their responsibilities to comply with all pertinent requirements herein in the City of La Palma City Code, including the requirement that a Business License be obtained by all entities doing business in the City as well as noise limitations and hours of construction requirements within the City.

42. A copy of the accepted Conditions of Approval shall be placed on the final construction plans. Final construction plans shall be placed at the job site until final of Building Permit.

The Applicant shall be fully responsible for knowing and complying with all Conditions of Approval, including making known the Conditions to the City for future governmental permits or actions.

43. All trash and refuse shall be disposed of in dumpsters pursuant to applicable City Codes and removed from the premises on an as needed basis. At the end of each day of construction activity, all construction debris and waste materials shall be collected and properly disposed of in trash or recycle bins. General Contractor shall sweep the Project site at the end of the day during construction.

45. The Applicant shall ensure that all mechanical and electrical equipment (to be installed on a structure or on the ground) is adequately screened from public view to the satisfaction of the Community Development Department prior to issuance of Certificate of Occupancy and issuance of Business License.

46. All parking of vehicles related to the construction process, including worker’s personal vehicles, shall park on the project site.

47. All construction activities shall comply with date and time restrictions established in the Municipal Code. “Construction activities” shall only include those activities that generate any noise at the property line during site preparation and construction of the site. “Construction activity” also includes the transport, import, and export of debris and materials.

Exhibit B Resolution No. 2024-_

Construction activity shall be limited to the following hours:

DAY TIME
Monday-Friday 7:00 am - 5:00 p.m.

Saturday 9:00 a.m. - 5:00 p.m.

Sunday & Holidays* No construction permitted
*Holidays are specifically defined herein as: Martin Luther King Jr. Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Day, New Year’s Day, President’s Day, Memorial Day, July 4th, and Labor Day
The modification of the permitted hours for construction activities is subject to review and approval of a Temporary Use Permit (TUP) by the City Community Development Department.

Exhibit C Resolution No. 2024-_

EXHIBIT C
Conditional Use Permit Findings of Approval
As required by Section 44-851 of the La Palma Municipal Code, approval of Conditional Use Permit 393 to permit an adult day care use at 7252 Walker Street is based on the following findings:

1. Finding: The proposed use is conditionally allowed within the subject zoning district, would not impair the integrity and character of the district, and complies with all applicable provisions of this Development Code.

Facts in Support of Finding: An adult day care use is conditionally allowed within the Single-Family Residential (R-1) Zoning District. Conditions of Approval have been incorporated into CUP 393 to ensure that the integrity and character of the district is not impaired by the adult day care facility. Conditions of Approval require adequate licensing and limitations on noise, parking, overnight stay, and hours of operation.

2. Finding: The proposed use is consistent with the goals, policies, general land uses, and programs of the General Plan, and any applicable specific plan and is in compliance with all City, State, and Federal Laws and Regulations
Facts in Support of Finding: Conditional Use Permit 393 is consistent with the following goals and policies of the General Plan: POLICY LU-2.4, GOAL LU-4, POLICY LU-4.5, and POLICY LU-5.2. The City of La Palma wishes to protect and preserve the quality of the residential areas of the City, as well as the quality of life throughout the City, through effective land use and planning. The adult day care use is consistent with the SingleFamily Residential (R-1) Zoning District’s intent in keeping with scale and activity of a lower density development.

3. Finding: The approval of the conditional use permit, or amendment, for the proposed use is in compliance with the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code § 21000 et seq.).

Facts in Support of Finding: This project has been reviewed in accordance with California Environmental Quality Act (CEQA.) The Project qualifies for exemption pursuant to State CEQA Guideline Section 15301 (Class 1) [Existing Facilities]. It can be seen with certainty that the conversion of an existing single-family residence into an adult day care facility will not have a significant effect or physical change on the environment pursuant to CEQA.

4. Finding: The site is suitable for the type and intensity of use or development that is proposed.

Facts in Support of Finding: The existing single-family residence to be converted into an adult day care facility at 7252 Walker Street, which is suitable for the proposed day program that includes services for developing social interactions with others, selfadvocacy and employment skills, community integration skills such as accessing community services, and social and recreational skills. The number of clients will be limited to 30 individuals who will be accompanied by staff and job coaches with program activities to take place indoors.

Exhibit C Resolution No. 2024-_

5. Finding: The proposed project will have no adverse effect on abutting or adjacent properties and is compatible with those properties.

Facts in Support of Finding: The proposed use is oriented toward Walker Street, which is walking distance proximity to the City’s Community Center, Central Park, Public Library, La Palma Intercommunity Hospital, and other medical-related resources complement well with the proposed adult day care programming focused on social and community integration for their clients. The subject property will maintain its appearance and scale as a single-family residence.

6. Finding: The proposed use will not be adverse to the public health, safety, or general welfare.

Facts in Support of Finding: The proposed adult day care use has been conditioned to prevent adverse impact to the public health, safety, or general welfare. In compliance with La Palma Zoning Code Article IV, Division 5 (Revocation and Modification), Conditional Use Permit 393 may be revoked or modified at any time by a vote of the City Council, if the use for which the approval was granted has been exercised so as to be detrimental to the public health or safety, and/or to constitute a nuisance

Agenda Item No. 15 November 5, 2024 | 1
City of La Palma
Agenda Item No. 15
MEETING DATE: November 5, 2024
TO: City Council
FROM: City Manager
SUBMITTED BY: Belinda Deines, Community Development Manager AGENDA TITLE: Introduction and First Reading of an Ordinance Amending Portions of the City Zoning Code (Chapter 44 of the La Palma Municipal Code) for Parking, Signage, and Housing Definitions in Compliance with State Housing Laws and City's Housing Element
RECOMMENDED ACTION:

It is recommended that the City Council take the following actions:
a) Open Public Hearing
b) Receive Staff Report
c) Council Member Comments and Questions
d) Receive Public Input
e) Close Public Hearing
f) Introduce an Ordinance amending portions of the City Zoning Code Chapter 44 of the La Palma Municipal Code) for parking, signage, and housing definitions in compliance with State Housing Laws and the City’s Housing Element by (1) asking the City Clerk to read the title of the Ordinance; and (2) approving a motion to waive further reading of the Ordinance and to pass it on a second reading.

CEQA exempt pursuant to Section 15060(c)(2) and 15061(b)(3) SUMMARY:

The Ordinance before the City Council for the Introduction and First Reading is a draft Ordinance (Attachment 1) that would amend the City Zoning Code Chapter 44 of the La Palma Municipal Code for development standards, processing requirements, and definitions related to parking, signage, and housing in compliance with State Housing Laws and the City’s Housing Element. These zoning code amendments are recommended by the City’s Economic Development/Land Use Ad-Hoc Committee for implementation of programs identified in the 2021-2029 Housing Element and in line with the City Council’s goals to support housing and economic development.

Agenda Item No. 15 November 5, 2024 | 2
BACKGROUND:

On December 5, 2023, the City Council formed the Economic Development/Land Use Ad-Hoc Committee (Committee) to report back to the Council on advisable land use changes that are based on the City’s Housing Element Update and economic development initiatives that support enhancing our commercial areas and shopping centers. On May 20, 2024, the California Department of Housing and Community Development (HCD) certified the 6th Cycle 2021-2029 Housing Element (HE) of the La Palma General Plan. Numerous State housing laws have been adopted over the past several years requiring revisions to the La Palma Municipal Code (LPMC), as required by HCD and specified in the HE.

From February to October 2024, the Committee convened on a monthly basis to develop the proposed zoning code amendments related to housing and economic development. To prioritize available resources, the Committee recommended to conduct the zoning code amendments in two parts: 1) minor amendments in 2024, and 2) major amendments in 2025. In early 2025, the Committee proposes additional zoning code amendments related to shopping center, retail, and outdoor seating parking requirements as well as objective design standards. Both of these items will require additional analysis and input prior to City Council review and consideration.

ANALYSIS:

The purpose of this zoning code amendment is to implement several programs identified in the HE as well as changes in regulations that alleviate constraints to housing and economic development as recommended by the Committee. HE Program 8 requires Development Code amendments related to emergency shelter parking standards, low-barrier navigation centers, supportive housing, and residential care facilities to be completed by December 2024. Furthermore, HE Program 10 (Residential Land Use Designations and Controls) requires processing of amendments necessary to comply with new state legislation, including elimination of the Precise Plan process for new singlefamily development, changes to existing R-3 development standards to allow 3-story buildings and increase maximum lot coverage, and modify parking requirements for multi-family dwellings by December 2024.

Pursuant to LPMC Section 44-667, a public hearing is required for amendments to Chapter 44 of the La Palma Municipal Code, which is a legislative action. In keeping with the timeframe specified in the certified Housing Element, the proposed zoning code amendments to LPMC Chapter 44 include the following as drafted in Exhibit A (Attachment 1):
• Definitions for group home [Section 44-10]
• Modifications to story count and maximum lot coverage in the R-3 Zoning District [Section 44- 76]
• Update allowable uses in residential zones for supportive housing and group homes [Section 44-78]
• Precise Plan exemption for demolition and new construction of single-family dwellings [Section 44-77, Section 44-138]
• Allow low-barrier navigation center use where mixed-use is permitted [Section 44-139] • Clarification on residential density and floor area ratio in the Mixed-Use B-1 Zoning District [Section 44-137, Section 44-141]
• Development standards for supportive housing and low-barrier navigation centers [Section 44-306, Section 44-307]

Agenda Item No. 15 November 5, 2024 | 3
• Revised parking provisions related to emergency shelter, multi-family residential, and accessory dwelling units; allowing alternatives to parking and loading standards [Section 44- 361]
• Changes to temporary sign exemptions, increase in maximum wall sign area, and approval authority of Master Sign Plans [Section 44-394, Section 44-397, Section 44-487] • Establish administrative approval process for minor discretionary review of Precise Plans and Conditional Use Permits [Section 44-784, Section 44-849] Group Home Definition
HE Program 8 proposes to clarify the LPMC to eliminate “drug/alcohol rehabilitation homes” and “transitional housing” uses and propose “group home, small and large” as defined by State Health & Safety Code. Group home shall mean a residential care facility licensed to operate in compliance with State law. Group home, small is defined as six or fewer people, which is permitted by right. Group home, large is defined as seven or more people, which requires approval of a Conditional Use Permit.

R-3 Zoning District Development Standards
HE Program 10 intends to identify and eliminate constraints to residential development for properties located in the R-3 (Multiple-Family Residential) Zoning District. While the maximum height will remain at 30 feet, the proposed amendment will allow an additional third story. Currently, the maximum lot coverage permitted in the R-3 Zoning District is more restrictive at 40% than the R-1 Zoning District at 45%. The proposed amendment seeks to increase maximum lot coverage to 75%, which would allow other multifamily housing product types to be developed in the R-3 Zoning District.

Precise Plan Exemption for Single-Family Construction
At present, LPMC requires that the demolition of an existing home and construction of a new home requires a Precise Plan discretionary permit, which is subject to Development and Circulation Committee recommendation and City Council approval. In keeping with eliminating constraints to residential development, the proposed code amendments allow for the City to approve single-family residence remodeling and new construction on existing subdivided lots to be approved administratively without a public hearing. The amendment allows for single-family homes to be reviewed and approved by City staff. Furthermore, any amendments to an existing Precise Plan may be reviewed and approved by the Community Development Director and may be appealed to the original decision-making authority.

Clarification of Mixed-Use B-1 Business District Development Standards The City’s General Plan allows for a maximum density of 48 dwelling units per net acre (DU/AC), however the City’s Zoning Code is limited to a maximum of 27 DU/AC. The proposed amendment establishes a minimum residential density of 15 DU/AC and a maximum density of 48 DU/AC, as well as clarifying that a minimum nonresidential Floor Area Ratio of 0.1 and a maximum of 1.5 are required to ensure that there are adequate business uses onsite to complement mixed-use development. Additional clarification is proposed to state that multifamily dwellings as a “stand-alone” use is not permitted to promote mixed-use rather than predominantly residential development within the B-1 Zoning District.

Revised Parking Requirements
Given that the City’s existing commercial centers are built-out, the LPMC has parking standards that

Agenda Item No. 15 November 5, 2024 | 4
limit land uses and discourage potential businesses based on stringent and antiquated parking ratios. The proposed amendments seek to establish a procedure for alternatives to parking and loading standards, subject to administrative review and approval of a minor Conditional Use Permit. Such alternatives include shared parking, joint use of parking, compact parking stall size, and other parking management tools that allow for greater flexibility for infill development of existing properties.

In compliance with HE Program 10, proposed changes to parking requirements based on housing use types include multiple-family residential reduction to 1.5 uncovered spaces per unit up to 2 bedrooms and 2 spaces plus 0.5 guest space for 3 bedrooms. Additional clarification is proposed to accessory dwelling unit parking requirements in compliance with State law.

Emergency Shelter Parking
Pursuant to Assembly Bill (AB) 139 (2019), the LPMC maintains an ordinance that includes appropriately zoned properties to accommodate the need for emergency shelters. HE Program 8 requires an amendment to LPMC Chapter 44 to align the emergency shelter parking standards with State law. AB 139 requires that the parking standards established by a city for emergency shelters shall be limited to “sufficient parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone” (California Government Code Section 65583(a)(4)(ii)). The proposed amendment replaces the current standards of one parking space for every five beds and

0.5 space per bedroom designed as a family unit, plus one space for every employee and/or volunteer staff plus a bike rack.

Supportive Housing
Pursuant to AB 2162 (2018) and HE Program 8, supportive housing must be allowed as a use by right in zoning districts where multifamily and mixed uses are permitted, including in non-residential zones permitting multifamily uses. Supportive housing means housing with no limit on length of stay, occupied by the target population, and is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community. The proposed amendment establishes application procedures, development standards, operational standards, and definitions for supportive housing and ensures that supportive housing is constructed and operated in a manner that is consistent with the requirements of State law.

Low Barrier Navigation Centers
Pursuant to AB 101 (2019) and HE Program 8, the LPMC must allow low barrier navigation centers in areas zoned for mixed uses and nonresidential zones that permit multi-family uses. Low barrier navigation centers provide temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. Low barrier navigation centers reduce barriers to use by those seeking shelter by allowing for pets and storage of possessions, and by providing increased privacy and security. The proposed amendment establishes application procedures, development standards, operational standards, and definitions for low barrier navigation centers and ensures this use is constructed and operated in accordance with the requirements and allowances of State law. Pursuant to California Government Code Sections 65660-65668, this ordinance is repealed as of January 1, 2027.

Signage Processing Requirements
To allow for a streamlined process for businesses and commercial centers, proposed amendments

Agenda Item No. 15 November 5, 2024 | 5
include creating an exemption for small temporary signs (limited to a maximum of three) on nonresidential property, increasing the maximum sign area for permanent wall signs from 0.5 to 1 square feet per linear foot of building frontage, and allowing administrative review of Master Sign Plans for no more than two signs and amendments. These changes help to expedite the approval timing and facilitate establishing new business storefronts.

Minor Permits Subject to Community Development Director Approval Often, new business starts are deterred by a lengthy approval process when discretionary permits are subject to Development and Circulation Committee (DCC) review and/or recommendation as well as City Council approval. At minimum, these public hearing processes would take at least three months through the review and approval process. The proposed amendment seeks to maintain the discretionary permits for a Precise Plan and Conditional Use Permit, and establish “minor” permitting procedures subject to administrative approval by the Community Development Director. The Director has the ability to place an application for DCC or City Council approval, and any decisions by the Director may be appealed to DCC and City Council for review.

General Plan Consistency: The proposed amendments are consistent with the intent of the Zoning Code and in keeping with the goals and policies of the General Plan: POLICY LU-1.2, GOAL LU-4, and GOAL LU-6, and GOAL CB-4. The proposed Ordinance achieves implementation of City’s General Plan Housing Element policies and Programs 8, 10, and 12.

ENVIRONMENTAL REVIEW:

This Ordinance is exempt from the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines Section 15060(c)(2) and 15061(b)(3) in that the proposed changes are not anticipated to result in a direct or reasonably foreseeable indirect physical change in the environment nor will they have the potential of creating a significant effect on the environment.

NOTIFICATION:

Public hearing notices were published in the October 16, 2024, edition of the local Event-News Enterprise newspaper, and posted at three locations: (1) on the Bulletin Board of the City ManagerCity Clerk's Office, City Hall, 7822 Walker Street, La Palma, California 90623; (2) on the Bulletin Board at the La Palma Community Services Department, 7821 Walker Street, La Palma, California 90623; and (3) subject site. The City also increased awareness of this Public Hearing through the use of its digital technology capabilities that include the Notify Me alerts and the City Website.

CONCLUSION:

Adoption of this Ordinance will update the City’s Zoning Code to revise development standards, processing requirements, and definitions related to parking, signage, and housing in compliance with State Housing Laws and the City’s Housing Element. The City Council may propose to change, alter, or decline any of the proposed language contained within the draft Ordinance provided as Attachment

1. FISCAL IMPACT:

None.

Agenda Item No. 15 November 5, 2024 | 6
ATTACHMENTS:

1. Draft Ordinance

Ordinance No. 2024-__
ORDINANCE NO. 2024- __

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA

PALMA AMENDING PORTIONS OF THE CITY ZONING CODE

FOR PARKING, SIGNAGE, AND HOUSING DEFINITIONS IN
COMPLIANCE WITH STATE HOUSING LAWS AND CITY’S

HOUSING ELEMENT
WHEREAS, the City Council of the City of La Palma wishes to protect and preserve the quality of the residential and commercial areas of the City, as well as the quality of life throughout the City, through effective land use and planning;
WHEREAS, the City Council of the City of La Palma desires to update the City Zoning Code by amending or adding various sections related to development standards, processing requirements, and definitions for parking, signage, and housing; WHEREAS, the proposed ordinance is consistent with and is supportive of policies of the City of La Palma General Plan, and La Palma Municipal Code; WHEREAS, notice of the City Council Public Hearing concerning this Ordinance was duly published in a local newspaper at least ten (10) days prior to the hearing and posted at City Hall, Central Park, and the Library;
WHEREAS, on ______, 202_, the City Council of the City of La Palma conducted an introduction and first reading of the Ordinance, and considered testimony and evidence at the Public Hearing held with respect thereto;
WHEREAS, on ______, 202_, the City Council of the City of La Palma conducted a second reading and adoption of the Ordinance.

NOW, THEREFORE, the City Council of the City of La Palma resolves as follows:

SECTION 1. The foregoing Recitals are incorporated herein and made a part hereof.

SECTION 2. The City Council finds that this Ordinance is exempt from the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines Section 15060(c)(2) and 15061(b)(3) in that the proposed changes are not anticipated to result in a direct or reasonably foreseeable indirect physical change in the environment nor will they have the potential of creating a significant effect on the environment.

SECTION 3: In accordance with La Palma Municipal Code Section 44-672, the City Council of the City of La Palma finds as follows:
(a) The proposed ordinance is consistent with all of the applicable objectives, policies, general land uses, programs, and actions of all applicable elements in the General Plan.
(b) The proposed ordinance shall not be detrimental to the public convenience, health, safety, or general welfare of the City.

Ordinance No. 2024-__
(c) The proposed ordinance is in compliance with the provisions of the California Environmental Quality Act (CEQA).
(d) The proposed ordinance is internally consistent with other applicable provisions of the City’s Municipal Code.

SECTION 4: The amendments to Chapter 44 of the La Palma Municipal Code are attached hereto as Exhibit “A” showing all proposed changes in a strikethrough/underline format, and Exhibit “B” showing a “clean” copy of the proposed modifications and incorporated herein by reference.

SECTION 5. City staff is hereby authorized and directed to file a Notice of Exemption with respect to the adoption of this Ordinance.

SECTION 6: If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid by a final judgment of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.

The City Council hereby declares that it would have adopted this Ordinance and each section, subdivision, sentence, clause, phrase, or portion of this Ordinance irrespective of the fact that one or more sections, subdivisions, sentences, clauses, phrases, or portions of this Ordinance be declared invalid.

SECTION 7: All required proceedings and consideration precedent to the adoption of this Ordinance have been regularly taken in accordance with applicable law.

SECTION 8: The City Clerk is authorized and directed to publish this Ordinance or a summary thereof in the manner provided by law and in accordance with procedures normally taken.

SECTION 9: The City Clerk shall certify to the passage of this Ordinance and cause the same to be published as required by law, and the Ordinance shall take effect thirty (30) days after adoption.

SECTION 10: Upon the effective date of this Ordinance, all former ordinances or parts thereof conflicting or inconsistent with the provisions of this Ordinance are hereby repealed and declared to be of no further force and effect.

APPROVED AND ADOPTED by the City Council of La Palma at a regular meeting on the __ day of ___ 202_.

_______________________________
Marshall Goodman
Mayor
ATTEST:
_______________________________
Kimberly Kenney, CMC
City Clerk

Ordinance No. 2024-__

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS.

CITY OF LA PALMA )
I, KIMBERLY KENNEY, City Clerk of the City of La Palma, California, DO HEREBY CERTIFY that the foregoing Ordinance was adopted by the City Council of said City at a regular meeting of said City Council held on the __ day of _____ 202_ and that it was so adopted by called vote as follows:

AYES:

NOES:
_______________________________
Kimberly Kenney, CMC
City Clerk

Ordinance No. 2024-__
EXHIBIT “A”
2024 ZONING CODE UPDATE
KEY:

Normal Text = Existing unmodified language
Bold Strikethrough Text = Proposed language to be removed Bold Underline Text = Proposed language to be added
Section 44-10
Group home means a residential care facility that provides various types of supervised and unsupervised care for its residents and which licensed to operate pursuant to State law, including facilities for persons with disabilities and other facilities (Welfare & Inst.

Code 5116), residential health care facilities (Health & Safety Code 1267.8, 1267.9, & 1267.16), residential care facilities for the elderly (Health & Safety Code 1568.083 - 1568.0831, 1569.82 – 1569.87), community care facilities (Health & Safety Code 1518, 1520.5, 1566 - 1566.8, 1567.1), pediatric day health facilities (Health & Safety Code 1267.9; 1760 – 1761.8), and facilities for alcohol and drug treatment (Health & Safety Code 11834.23).

Section 44-76 – Purpose of residential zoning districts. (b) R-3, multiple-family residential. The R-3 zoning district identifies areas intended for the development of a range of attached and detached residential uses. Typical housing types include higher density single-family residences, patio homes, zero lot line homes, mixed-use developments, and attached multiple-family dwellings such as multiple family residential duplexes, townhomes, condominiums, and garden apartments. Smaller sites composed of two acres or less are permitted to be developed with a maximum density of ten dwelling units per net acre. Larger sites that are between two and one-tenth to four acres are permitted to be developed with densities up to 15 dwelling units per net acre and sites composed of at least four and onetenth acres are permitted to be developed with a maximum density of 25 dwelling units per net acre. The R-3 zoning district is consistent with the multiple-family residential land use designation of the general plan.

TABLE II-2. DEVELOPMENT STANDARDS FOR RESIDENTIAL ZONING DISTRICTS DEVELOPMENT FEATURE R-1 DISTRICT R-3 DISTRICT
Maximum
height limit
Single family residence 30 ft. (two stories) N/A
Multiple family
building (apartments,
condominiums,
townhomes)
N/A 30 ft. (two three
stories)

Ordinance No. 2024-__
TABLE II-2. DEVELOPMENT STANDARDS FOR RESIDENTIAL ZONING DISTRICTS DEVELOPMENT FEATURE R-1 DISTRICT R-3 DISTRICT
Single family residential
duplex 16 ft. (one story) N/A
Detached accessory
dwelling unit 16 ft. (one story) 16 ft. (one story)
Maximum lot coverage 45% 40% 75%
Section 44-77 Precise plan required.

All new development shall require approval of a precise plan by the City Council. A precise plan shall be required for all residential development except for single-family dwellings on previously subdivided lots, and for all nonresidential developments exceeding 2,000 square feet of total floor area.

Section 44-78 Allowed uses.

TABLE II-1. ALLOWABLE USES AND PERMIT REQUIREMENTS FOR

RESIDENTIAL ZONING DISTRICTS

LAND USE

DISTRICT STANDARDS

IN SECTION
R-1 R-3
Drug/alcohol rehabilitation homes—
Up to 6 residents

P P N/A
Supportive housing—Residential group living 6
persons or fewer
P P 44-110
44-306
Supportive housing—Residential
apartment type
X P 44-110
Supportive housing—Residential
group living 7 persons or more
C C 44-110

Ordinance No. 2024-__
TABLE II-1. ALLOWABLE USES AND PERMIT REQUIREMENTS FOR

RESIDENTIAL ZONING DISTRICTS

LAND USE

DISTRICT STANDARDS

IN SECTION
R-1 R-3
Transitional housing Group home, small—Residential
group living 6 persons or fewer or single-family and
duplex type
P P 44-110
44-10
Transitional housing—Residential
apartment type
X P 44-110
Transitional housingGroup home, large—Residential
group living 7 persons or more
C C 44-110
44-10
Section 44-137 – Purpose of nonresidential zoning districts. (c) B-1, Mixed-Use Business. The B-1 zoning district provides for a compatible and complementary mixture of employment, commercial, and residential uses. Typical uses include business and professional offices, high-rise hotels, restaurants, retail and general service commercial uses, limited research and development operations, commercial recreation, and multiple-family mixed-use residential development. Development in the Mixed-Use Business District should offer attractive and distinctive architectural design, integrated site layouts, substantial landscaping enhancements, and convenient pedestrian access between uses. For mixed-use residential development, the B-1 zoning district shall have a minimum residential density of 15 dwelling units per net acre and a maximum density of 48 dwelling units per net acre, and a minimum nonresidential Floor Area Ratio of 0.1 and a maximum nonresidential Floor Area Ratio of 1.5.

Section 44-361 – General parking standards.
(d) Multiple uses on a lot. Where there is more than one type of use on a lot, the parking requirements shall be the sum total of the requirements for the individual uses. A reduction in this parking requirement may be supported by a site-specific parking study prepared by a qualified engineer, and the reduced on-site parking shall be in accordance with a parking management plan prepared by a qualified engineer and approved by the City Council., subject to review and approval of a minor Conditional Use Permit. (e) Alternatives to parking and loading standards. The City recognizes that many uses and sites are unique and that certain components of parking and loading may be tailored to better comply with these standards based on factors such as irregular site shape and unique types or combinations of uses. As such, the City may consider shared parking,

Ordinance No. 2024-__
joint use of parking, and modifications to certain provisions of the parking and loading standards to achieve safe and adequate parking and loading facilities, subject to review and approval of a minor Conditional Use Permit.

Section 44-364 – Parking Calculations
Table III-7. Parking Requirements by Land Use
Land use Minimum vehicle spaces required
Multiple-family
residential
Up to 2 bedrooms 2 plus 1 guest space – at least 66% covered

1.5 uncovered spaces per unit
3 bedrooms 3 2 plus 1 0.5 guest space – at least 50%
covered
4 bedrooms 4 plus 1 guest space – at least 40% covered
Accessory dwelling
units (ADUs) 1, 2 3
One parking space per ADU or per bedroom, whichever is less.

Spaces can be provided uncovered on a driveway as tandem parking spaces to the garage, an uncovered ancillary parking space to the side of the driveway, or a garaged parking space in addition to the main homes standard two parking spaces in a fully enclosed garage.

The requirement shall not apply to an ADU if any of the following are true:
• The ADU is within one-half mile walking distance from public transit; or
• The ADU is part of (i.e. contained within) the footprint of an existing primary residence or an existing accessory building; or • Is in an area where on-street parking permits are required, but not offered to the occupancy of the ADU; or
• Is located within one block of a car share area.; or
• No additional parking is required for ADU's within existing space.
• The ADU is proposed to be constructed with a new primary dwelling on the same lot which would otherwise be exempt from ADU parking requirements.; or
• The ADU is otherwise exempt from parking requirements pursuant to State law.

Emergency shelter
(homeless)
One parking space for every staff person during peak hours 5 beds and 0.5 space per bedroom designed as a family unit with children, plus 1 space for every employee and/or
volunteer staff member on duty. Each shelter shall also provide a bike rack for clients in a secured area.
3 Alternatively, an emergency shelter may submit a parking study, subject to approval by the Community Development Director, demonstrating that the parking demand

Ordinance No. 2024-__
associated with the emergency shelter justifies requiring a reduced amount of off-street parking.

Section 44-138 Precise plan required.
(a) Approval required. All new developments, unless exempt per the provisions of this Development Code, shall require approval of a precise plan by the City Council pursuant to article V, division 3. A precise plan shall be required for all residential development except for single-family dwellings on previously subdivided lots, and for all nonresidential developments exceeding 2,000 square feet of total floor area. (b) Amendment to precise plan. All development on properties previously developed under an adopted precise plan shall require approval of an amendment to the precise plan by the City Council. Community Development Director. If the Community Development Director determines that the requested amendment is significant enough to require discretionary review, then the amendment shall be referred to the original decision-making authority.

Section 44-139. Allowable uses.

TABLE II-5. ALLOWABLE USES AND PLANNING PERMIT REQUIREMENTS FOR

NONRESIDENTIAL ZONING DISTRICTS

LAND USE

ZONING DISTRICT
OP NC B-1 GI PI OS PND
Residential and Lodging Uses
Low barrier navigation center X X P X X X X
Multifamily dwellings as a primary
stand-alone use

X X X X X X X
Section 44-141 – Nonresidential zoning districts general development standards.

TABLE II-6. DEVELOPMENT STANDARDS FOR NONRESIDENTIAL AND MIXED (RESIDENTIAL AND NONRESIDENTIAL) USES IN NONRESIDENTIAL ZONING DISTRICTS DEVELOPMENT STANDARD OP NC B-1 GI PI OS PND
Min. Lot Size (sq. ft.) No minimum
Max. Structure Height (ft.) 55 35 250 50 55/30 4 30 55/35 5 Max. Number of Stories 4 4 * 2 3/2 4 2 4/2 5
Min. Nonresidential Floor Area Ratio
(FAR)

0.1 Max. Nonresidential Floor Area Ratio
(FAR) 2

0.6 0.4

0.5 0.75/1.5 8
27 DU/Ac.

0.6 0.6 0.25 0.6

Ordinance No. 2024-__
Residential Density (dwelling units per
net acre)
Min. 15 DU/AC
Max. 48 DU/AC
8 Development FAR of three-quarters for all B-1 properties located South of the 91 Freeway and a FAR of one and one-half for all B-1 properties located North of the 91 Freeway and a max 27 dwelling units (DU's) per acre in all B-1 designated properties as identified in Table II-7. An increase in the standard FAR for B-1 properties located South of the 91 Freeway may be permitted subject to approval of a Precise Plan, provided that the maximum FAR shall not exceed one and one-half.

TABLE II-7. ADDITIONAL DEVELOPMENT STANDARDS FOR RESIDENTIAL USES IN THE B-1 DISTRICT
DEVELOPMENT STANDARD B-1 DISTRICT
Min. Lot Size (sq. ft.) 10,000 sq. ft.

Density — Maximum 27 48 dwelling units per net acre
Max. Structure Height (ft.) 250
Max. Floor Area Ratio (FAR) 2 0.75/1.5 4
Minimum Unit Size 500 sq. ft.

Min. Perimeter Building
Setback/Perimeter Landscaping
(in ft.) 3
From Ultimate Street
Right-of-way
15 ft.

From Abutting
Commercial, Office, and
Industrial Projects
20/5 1
From Abutting Residential
Projects
10 1
Minimum Building Separation Per the Building and Fire Codes Open Space — Per Unit 200 sq. ft. minimum, which may be provided as private, common, or
combined open space
Maximum Lot Coverage 75%
4 Development FAR of three-quarters for For all B-1 properties located South of the 91 Freeway and a FAR of one and one-half for all B-1 properties located North of the 91 Freeway., a standard FAR of 0.75 shall be required and maximum FAR of 1.5 may be permitted, subject to approval of a Precise Plan.

Section 44-142 – Community benefits requirement for stand-alone housing mixed-use development in the B-1 zoning district.

Section 44-306 - Supportive housing.
(a) Purpose. The purpose of this section is to establish development standards for supportive housing and to ensure the supportive housing is constructed and operated in a manner that is consistent with the requirements and allowances of state law, specifically Article 11 of Chapter 3 of Division 1 of Planning and Zoning Law commencing with Government Code Section 65650.
(b) Applicability. The provisions of this section shall apply to all supportive housing projects.

Ordinance No. 2024-__
(c) Planning Approval Required. An application to establish any supportive housing project shall be submitted to the Director of Community Development for review and approval. The decision to approve or deny the application shall be a ministerial in nature, without any discretionary review or a hearing. A decision by the Community Development Director shall be taken within 60 days of a complete application being filed.
(1) Supportive housing projects shall be a use permitted by right in all zones where multifamily and mixed uses are permitted, including non-residential zones permitting multifamily uses. Supportive housing projects are permitted where all the following requirements are met:
(A) Units within the development are subject to a recorded affordability restriction for 55 years.
(B) One hundred percent of the units, excluding the manager unit(s), within the development are dedicated to lower income households and are receiving public funding to ensure affordability of the housing to lower income Californians.
(C) At least 25 percent of the units in the development or 12 units, whichever is greater, are restricted to residents in supportive housing who meet criteria of the target population. If the development consists of fewer than 12 units, then 100 percent of the units, excluding manager unit(s), in the development shall be restricted to residents in supportive housing.
(D) Non-residential floor area shall be used for on-site supportive services in the following amounts:
(1) For a development with 20 or fewer total units, at least 90 square feet shall be provided for onsite supportive services.
(2) For a development with more than 20 units, at least 3 percent of the total nonresidential floor area shall be provided for onsite supportive services that are limited to tenant use, including, but not limited to, community rooms, case management offices, computer rooms, and community kitchens.
(E) The developer replaces any dwelling units on the site of the supportive housing development to ensure that any change to the occupancy of the supportive housing units is made in a manner that minimizes tenant disruption and only upon the vacancy of any supportive housing units.
(F) Units within the development, excluding manager unit(s), include at least one bathroom and a kitchen or other cooking facilities, including, at minimum, a stovetop, a sink, and a refrigerator.
(d) Development and Operational Standards. Supportive housing projects shall comply with all the following standards:
(1) The project shall comply with all development standards and any written objective standards or policies required of multifamily developments in the same zone. (2) The applicant shall submit a plan for providing supportive services, to include all the following items:
(A) Documentation that supportive services will be provided on-site. (B) The name of the proposed entities that will provide supportive services. (C) The proposed funding sources for the services provided. (D) Proposed staffing levels
(3) No minimum parking requirements shall be required for the units occupied by supportive housing residents for projects located within one-half mile of a public transit stop.

Ordinance No. 2024-__
(e) Definitions. This section includes the definition of terms and phrases used in this section that are technical or specialized, or that may not reflect common usage. If any of the definitions in this section conflict with definitions in other provisions of the Municipal Code, these definitions shall supersede for the purposes of this section. If a word is not defined in this section or is defined and conflicts with another definition of the Municipal Code, the Director shall determine the most appropriate definition. (1) “Lower Income Households” shall have the same meaning as defined in Section 50079.5 of the Health and Safety Code. 12/05/23 Page 13 Item #9 (2) “Supportive Housing” shall mean housing with no limit on length of stay, that is occupied by the target population, and that is linked to on-site or off-site services that assist the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community.
(3) “Supportive Services” shall include, but are not limited to, a combination of subsidized, permanent housing, intensive case management, medical and mental health care, substance abuse treatment, employment services, and benefits advocacy.
(4) “Target Population” shall mean persons, including persons with disabilities, and families who are homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, or who are homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 11139.3 of the Government Code.

Section 44-307 Low-barrier navigation centers.
(a) Purpose. The purpose of this section is to establish development standards for lowbarrier navigation centers and to ensure this use is constructed and operated in a manner that is consistent with the requirements and allowances of state law, specifically Article 12 of Chapter 3 of Division 1 of Planning and Zoning Law commencing with California Government Code Section 65660. This section shall be repealed as of January 1, 2027.
(b) Applicability. The provisions of this section shall apply to all low-barrier navigation center projects.
(c) Planning Approval Required. An application to establish a low-barrier navigation shall be submitted to the Director of Community Development for review and approval. The decision to approve or deny an application shall be ministerial in nature, without any discretionary review or a hearing. The City shall notify a developer whether the developer’s application is complete within 30 days, pursuant to California Government Code Section 65943. A decision by the Community Development Director shall be taken within 60 days of a complete application being filed.
(d) Development and Operational Standards. A low-barrier navigation center development shall be deemed a use that is permitted by-right in areas zoned for mixed-use and nonresidential zones permitting multifamily uses, if it meets the following requirements:
(1) Connected Services. It offers services to connect people to permanent housing through a services plan that identifies services staffing. (2) Coordinated Entry System. It is linked to a coordinated entry system, so that staff in the interim facility or staff who co-locate in the facility may conduct assessments and provide services to connect people to permanent housing. “Coordinated entry system” means a centralized or coordinated assessment system developed pursuant to Section 576.400(d) or Section 578.7(a)(8), as

Ordinance No. 2024-__
applicable, of Title 24 of the Code of Federal Regulations, as those sections read on January 1, 2020, and any related requirements, designed to coordinate program participant intake, assessment, and referrals. (3) Code Compliant. It complies with Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code. (4) Homeless Management Information System. It has a system for entering information regarding client stays, client demographics, client income, and exit destination through the local Homeless Management Information System, as defined by Section 578.3 of Title 24 of the Code of Federal Regulations.
(e) Definitions. This section includes the definition of terms and phrases used in this section that are technical or specialized, or that may not reflect common usage. If any of the definitions in this section conflict with definitions in other provisions of the Municipal Code, these definitions shall supersede for the purposes of this section. If a word is not defined in this section or is defined and conflicts with another definition of the Municipal Code, the Director shall determine the most appropriate definition. (1) “Low-Barrier Navigation Centers” shall mean a housing-first, low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. “Low barrier” means best practices to reduce barriers to entry, and may include, but is not limited to, the following:
(A) The presence of partners if it is not a population-specific site, such as for survivors of domestic violence or sexual assault, women, or youth.
(B) Pets.
(C) The storage of possessions.
(D) Privacy, such as partitions around beds in a dormitory setting or in larger rooms containing more than two beds, or private rooms. (2) “Use by Right” has the meaning defined in subdivision (i) of Section 65583.2.

Division 13 (commencing with Section 21000) of the California Public Resources Code shall not apply to actions taken by a public agency to lease, convey, or encumber land owned by a public agency, or to facilitate the lease, conveyance, or encumbrance of land owned by a public agency, or to provide financial assistance to, or otherwise approve, a Low-Barrier Navigation Center constructed or allowed by this section.

Section 44-394 Temporary sign permit.
(c) Temporary sign on non-residential property. Temporary signs on non-residential property, such as commercial or industrial property, require a permit from the Community Development Department and must comply with the following standards:
(1) Duration. Temporary signs (including banners and flags) may be displayed for a total of 63 days within a calendar year. If the sign relates to an event, it must be taken down no later than ten days after the event.
(2) Size. Temporary sign size shall not be greater than the size permitted for permanent building-mounted signage contained in table III-10.
(3) Location. The location of temporary signs shall be the same general area as permitted for permanent signs. Temporary signs over three feet high shall not be located within the traffic safety triangle.

Ordinance No. 2024-__
(4) Exempt. Temporary signs of six square feet or less are exempt from the requirement to obtain a permit, but must not be located within the traffic safety triangle and the maximum height shall not be more than three feet above grade. A maximum of three such temporary signs are permitted at any given time on any non-residential property.

Section 44-397 Sign standards.

TABLE III-10: SIGN STANDARDS
Use Sign
type
Maximum
number
Maximum
sign area
Maximum
height
Remarks
Neighborhood
commercial
Wall or
marquee
One sign per
street
frontage

0.5 1 sq. ft. per
lineal foot of
building
frontage
Not above the
parapet on a flat
roof or the eave
on a pitched roof
No building shall
be given credit
for more than
two street
frontages
Office
professional
Wall or
marquee
One sign per
street
frontage

0.5 1 sq. ft. per
lineal foot of
building
frontage
Not above the
parapet on a flat
roof or the eave
on a pitched roof
No building shall
be given credit
for more than
two street
frontages
Public or
institutional
Wall or
marquee
One sign per
street
frontage

0.5 1 sq. ft. per
lineal foot of
building
frontage
Not above the
parapet on a flat
roof or the eave
on a pitched roof
No building shall
be given credit
for more than
two street
frontages
Section 44-487 Sign review authority.

TABLE IV-3. SIGN REVIEW AUTHORITY
Type of sign Approval Appeal
Building-mounted Community Development Department Development and Circulation Committee
Monument Community Development Department Development and Circulation Committee
Electronic monument (1) City Council

Ordinance No. 2024-__
TABLE IV-3. SIGN REVIEW AUTHORITY
Type of sign Approval Appeal
On-site directional Community Development Department Development and Circulation Committee
Window Community Development Department Development and Circulation Committee
Flag poles Community Development Department Development and Circulation Committee
Master sign plan Development and
Circulation Committee
City Council
Master sign plan, not to
exceed two signs
Community Development
Department
Development and
Circulation Committee
Master sign plan,
amendment
Community Development
Department
Development and
Circulation Committee
Temporary sign on nonresidential propertyCommunity Development Department Development and Circulation Committee
Sec. 44-784. - Authority.

The approval authority designated in Section 44-485, Table IV-1 may grant approval of precise plans and amendments to precise plans.
(a) When no other discretionary permit is required, a Precise Plan shall be required for all residential development except single-family homes on previously subdivided lots, and for all nonresidential developments exceeding 2,000 square feet of total floor area.
(b) Precise Plan, minor
(1) Application for minor Precise Plan permits are limited to the following requests:
(A) Development with less than 10,000 gross square feet of new building floor area.
(B) Four or less residential units.
(C) Any multifamily projects where a minimum of 20% of total units are restricted to be affordable to lower income households or at least 40% of total units are restricted to be affordable to moderate income households (for a period of time equal to provisions under State Density Bonus Law (California Government Code Section 65915).

Ordinance No. 2024-__
(D) Modifications to previously approved Precise Plans that are substantially compliant with the original approval and do not result in additions greater than 10% of the total area.
(2) Decisions on minor Precise Plan applications shall be made administratively by the Community Development Director. The Director shall include a determination of findings and appropriate conditions in the decision. The basis for approval, conditional approval, or denial of a minor Precise Plan application shall be as specified in Section 44-787.
(3) Subject to a determination by the Community Development Director, a minor Precise Plan application may be placed on a Development and Circulation Committee or City Council agenda for review.

TABLE IV-1. REVIEW AUTHORITY
Type of
entitlement or
decision
Section of
Development
Code
Community
Development
Director
Development
Committee
City
Council
Special
Permit
Committee
Precise plan
residential new 44-784 Recommend Recommend Decision/appeal N/A Precise plan,
minor 44-783 Decision Appeal Appeal N/A
Precise Plan,
Amendment 44-824 RecommendDecision
Decision
Appeal Appeal N/A
Precise plan,
nonresidential
new
44-784 Recommend Recommend Decision/
appeal N/A
Amendment 44-784 Recommend Recommend Decision/
appeal N/A
Sec. 44-849. - Authority.

The approval authority designated in Section 44-485, Table IV-1 may grant approval of conditional use permits and amendments to conditional use permits.
(a) Conditional Use Permit, Minor
(1) Application for minor Conditional Use Permits are limited to the following requests:
(A) Alternatives to parking and loading standards.
(B) Beer, wine, and liquor licenses.
(C) Live entertainment uses.
(D) Modifications to certain development standards as may be specified by this Code.

Ordinance No. 2024-__
(E) Other modifications which, in the determination of the Community Development Director, have a moderate potential for adverse impacts to the subject site and the surrounding community.
(2) Decisions on minor Conditional Use Permit applications shall be made administratively by the Community Development Director. The Director shall include a determination of findings and appropriate conditions in the decision.

The basis for approval, conditional approval, or denial of a minor Conditional Use Permit shall be as specified in Section 44-788.
(3) Subject to a determination by the Community Development Director, a minor Conditional Use Permit may be placed on the City Council agenda for review.

TABLE IV-1. REVIEW AUTHORITY
Type of
entitlement or
decision
Section of
Development
Code
Community
Development
Director
Development
Committee
City
Council
Special
Permit
Committee
Conditional use
permits 44-849 Recommend N/A Decision/appeal N/A
Conditional use
permits, minor 44-849 Decision N/A Appeal N/A

Ordinance No. 2024-__
EXHIBIT “B”
2024 ZONING CODE UPDATE
Section 44-10
Group home means a residential care facility that provides various types of supervised and unsupervised care for its residents and which licensed to operate pursuant to State law, including facilities for persons with disabilities and other facilities (Welfare & Inst. Code 5116), residential health care facilities (Health & Safety Code 1267.8, 1267.9, & 1267.16), residential care facilities for the elderly (Health & Safety Code 1568.083 - 1568.0831, 1569.82 – 1569.87), community care facilities (Health & Safety Code 1518, 1520.5, 1566 - 1566.8, 1567.1), pediatric day health facilities (Health & Safety Code 1267.9; 1760 – 1761.8), and facilities for alcohol and drug treatment (Health & Safety Code 11834.23).

Section 44-76 – Purpose of residential zoning districts. (b) R-3, multiple-family residential. The R-3 zoning district identifies areas intended for the development of a range of attached and detached residential uses. Typical housing types include higher density single-family residences, patio homes, zero lot line homes, mixed-use developments, and attached multiple-family dwellings such as multiple family residential duplexes, townhomes, condominiums, and garden apartments. Smaller sites composed of two acres or less are permitted to be developed with a maximum density of ten dwelling units per net acre. Larger sites that are between two and one-tenth to four acres are permitted to be developed with densities up to 15 dwelling units per net acre and sites composed of at least four and onetenth acres are permitted to be developed with a maximum density of 25 dwelling units per net acre. The R-3 zoning district is consistent with the multiple-family residential land use designation of the general plan.

TABLE II-2. DEVELOPMENT STANDARDS FOR RESIDENTIAL ZONING DISTRICTS DEVELOPMENT FEATURE R-1 DISTRICT R-3 DISTRICT
Maximum
height limit
Single family residence 30 ft. (two stories) N/A
Multiple family
building (apartments,
condominiums,
townhomes)
N/A 30 ft. (three stories)
Single family residential
duplex 16 ft. (one story) N/A

Ordinance No. 2024-__
TABLE II-2. DEVELOPMENT STANDARDS FOR RESIDENTIAL ZONING DISTRICTS DEVELOPMENT FEATURE R-1 DISTRICT R-3 DISTRICT
Detached accessory
dwelling unit 16 ft. (one story) 16 ft. (one story)
Maximum lot coverage 45% 75%
Section 44-77 Precise plan required.

A precise plan shall be required for all residential development except for single-family dwellings on previously subdivided lots, and for all nonresidential developments exceeding 2,000 square feet of total floor area.

Section 44-78 Allowed uses.

TABLE II-1. ALLOWABLE USES AND PERMIT REQUIREMENTS FOR

RESIDENTIAL ZONING DISTRICTS

LAND USE

DISTRICT STANDARDS

IN SECTION
R-1 R-3
Supportive housing P P 44-306
Group home, small—Residential group living 6 persons or fewer
P P 44-10
Group home, large—Residential
group living 7 persons or more
C C 44-10
Section 44-137 – Purpose of nonresidential zoning districts. (c) B-1, Mixed-Use Business. The B-1 zoning district provides for a compatible and complementary mixture of employment, commercial, and residential uses. Typical uses include business and professional offices, high-rise hotels, restaurants, retail and general service commercial uses, limited research and development operations, commercial recreation, and mixed-use residential development. Development in the Mixed-Use Business District should offer

Ordinance No. 2024-__
attractive and distinctive architectural design, integrated site layouts, substantial landscaping enhancements, and convenient pedestrian access between uses. For mixed-use residential development, the B-1 zoning district shall have a minimum residential density of 15 dwelling units per net acre and a maximum density of 48 dwelling units per net acre, and a minimum nonresidential Floor Area Ratio of 0.1 and a maximum nonresidential Floor Area Ratio of 1.5.

Section 44-361 – General parking standards.
(d) Multiple uses on a lot. Where there is more than one type of use on a lot, the parking requirements shall be the sum total of the requirements for the individual uses. A reduction in this parking requirement may be supported by a site-specific parking study and a parking management plan subject to review and approval of a minor Conditional Use Permit. (e) Alternatives to parking and loading standards. The City recognizes that many uses and sites are unique and that certain components of parking and loading may be tailored to better comply with these standards based on factors such as irregular site shape and unique types or combinations of uses. As such, the City may consider shared parking, joint use of parking, and modifications to certain provisions of the parking and loading standards to achieve safe and adequate parking and loading facilities, subject to review and approval of a minor Conditional Use Permit.

Section 44-364 – Parking Calculations
Table III-7. Parking Requirements by Land Use
Land use Minimum vehicle spaces required
Multiple-family
residential
Up to 2 bedrooms 1.5 uncovered spaces per unit
3 bedrooms 2 plus 0.5 guest space – at least 50% covered 4 bedrooms 4 plus 1 guest space – at least 40% covered
Accessory dwelling
units (ADUs) 1, 2 3
One parking space per ADU or per bedroom, whichever is less.

Spaces can be provided uncovered on a driveway as tandem parking spaces to the garage, an uncovered ancillary parking space to the side of the driveway, or a garaged parking space in addition to the main homes standard two parking spaces in a fully enclosed garage.

The requirement shall not apply to an ADU if any of the following are true:
• The ADU is within one-half mile walking distance from public transit; or
• The ADU is part of (i.e. contained within) the footprint of an existing primary residence or an existing accessory building; or • Is in an area where on-street parking permits are required, but not offered to the occupancy of the ADU; or
• Is located within one block of a car share area; or

Ordinance No. 2024-__
• The ADU is proposed to be constructed with a new primary dwelling on the same lot which would otherwise be exempt from ADU parking requirements; or
• The ADU is otherwise exempt from parking requirements pursuant to State law.

Emergency shelter
(homeless) One parking space for every staff person during peak hours Section 44-138 Precise plan required.
(a) Approval required. A precise plan shall be required for all residential development except for single-family dwellings on previously subdivided lots, and for all nonresidential developments exceeding 2,000 square feet of total floor area.
(b) Amendment to precise plan. All development on properties previously developed under an adopted precise plan shall require approval of an amendment to the precise plan by the Community Development Director. If the Community Development Director determines that the requested amendment is significant enough to require discretionary review, then the amendment shall be referred to the original decision-making authority.

Section 44-139. Allowable uses.

TABLE II-5. ALLOWABLE USES AND PLANNING PERMIT REQUIREMENTS FOR

NONRESIDENTIAL ZONING DISTRICTS

LAND USE

ZONING DISTRICT
OP NC B-1 GI PI OS PND
Residential and Lodging Uses
Low barrier navigation center X X P X X X X
Multifamily dwellings as a stand-alone
use

X X X X X X X
Section 44-141 – Nonresidential zoning districts general development standards.

TABLE II-6. DEVELOPMENT STANDARDS FOR NONRESIDENTIAL AND MIXED (RESIDENTIAL AND NONRESIDENTIAL) USES IN NONRESIDENTIAL ZONING DISTRICTS DEVELOPMENT STANDARD OP NC B-1 GI PI OS PND
Min. Lot Size (sq. ft.) No minimum
Max. Structure Height (ft.) 55 35 250 50 55/30 4 30 55/35 5

Ordinance No. 2024-__
Max. Number of Stories 4 4 * 2 3/2 4 2 4/2 5
Min. Nonresidential Floor Area Ratio
(FAR)

0.1 Max. Nonresidential Floor Area Ratio
(FAR) 2

0.6 0.5 0.75/1.5 8
27 DU/Ac.

0.6 0.6 0.25 0.6
Residential Density (dwelling units per net
acre)
Min. 15 DU/AC
Max. 48 DU/AC
8 Development FAR of three-quarters for all B-1 properties located South of the 91 Freeway and a FAR of one and one-half for all B-1 properties located North of the 91 Freeway. An increase in the standard FAR for B-1 properties located South of the 91 Freeway may be permitted subject to approval of a Precise Plan, provided that the maximum FAR shall not exceed one and one-half.

TABLE II-7. ADDITIONAL DEVELOPMENT STANDARDS FOR RESIDENTIAL USES IN THE B1 DISTRICT DEVELOPMENT STANDARD B-1 DISTRICT
Min. Lot Size (sq. ft.) 10,000 sq. ft.

Density — Maximum 48 dwelling units per net acre
Max. Structure Height (ft.) 250
Minimum Unit Size 500 sq. ft.

Min. Perimeter Building
Setback/Perimeter Landscaping
(in ft.) 3
From Ultimate Street
Right-of-way
15 ft.

From Abutting
Commercial, Office, and
Industrial Projects
20/5 1
From Abutting Residential
Projects
10 1
Minimum Building Separation Per the Building and Fire Codes Open Space — Per Unit 200 sq. ft. minimum, which may be provided as private, common, or
combined open space
Maximum Lot Coverage 75%
4 For all B-1 properties located South of the 91 Freeway, a standard FAR of 0.75 shall be required and maximum FAR of 1.5 may be permitted, subject to approval of a Precise Plan.

Section 44-142 – Community benefits requirement for mixed-use development in the B-1 zoning district.

Section 44-306 - Supportive housing.
(f) Purpose. The purpose of this section is to establish development standards for supportive housing and to ensure the supportive housing is constructed and operated in a manner that is consistent with the requirements and allowances of state law, specifically Article 11 of Chapter 3 of Division 1 of Planning and Zoning Law commencing with Government Code Section 65650.
(g) Applicability. The provisions of this section shall apply to all supportive housing projects.

Ordinance No. 2024-__
(h) Planning Approval Required. An application to establish any supportive housing project shall be submitted to the Director of Community Development for review and approval. The decision to approve or deny the application shall be a ministerial in nature, without any discretionary review or a hearing. A decision by the Community Development Director shall be taken within 60 days of a complete application being filed.
(2) Supportive housing projects shall be a use permitted by right in all zones where multifamily and mixed uses are permitted, including non-residential zones permitting multifamily uses.

Supportive housing projects are permitted where all the following requirements are met:
(A) Units within the development are subject to a recorded affordability restriction for 55 years.
(B) One hundred percent of the units, excluding the manager unit(s), within the development are dedicated to lower income households and are receiving public funding to ensure affordability of the housing to lower income Californians. (C) At least 25 percent of the units in the development or 12 units, whichever is greater, are restricted to residents in supportive housing who meet criteria of the target population. If the development consists of fewer than 12 units, then 100 percent of the units, excluding manager unit(s), in the development shall be restricted to residents in supportive housing.
(D) Non-residential floor area shall be used for on-site supportive services in the following amounts:
(1) For a development with 20 or fewer total units, at least 90 square feet shall be provided for onsite supportive services.
(2) For a development with more than 20 units, at least 3 percent of the total nonresidential floor area shall be provided for onsite supportive services that are limited to tenant use, including, but not limited to, community rooms, case management offices, computer rooms, and community kitchens. (E) The developer replaces any dwelling units on the site of the supportive housing development to ensure that any change to the occupancy of the supportive housing units is made in a manner that minimizes tenant disruption and only upon the vacancy of any supportive housing units.
(F) Units within the development, excluding manager unit(s), include at least one bathroom and a kitchen or other cooking facilities, including, at minimum, a stovetop, a sink, and a refrigerator.
(i) Development and Operational Standards. Supportive housing projects shall comply with all the following standards:
(4) The project shall comply with all development standards and any written objective standards or policies required of multifamily developments in the same zone. (5) The applicant shall submit a plan for providing supportive services, to include all the following items:
(A) Documentation that supportive services will be provided on-site. (B) The name of the proposed entities that will provide supportive services. (C) The proposed funding sources for the services provided. (D) Proposed staffing levels
(6) No minimum parking requirements shall be required for the units occupied by supportive housing residents for projects located within one-half mile of a public transit stop. (j) Definitions. This section includes the definition of terms and phrases used in this section that are technical or specialized, or that may not reflect common usage. If any of the definitions in this section conflict with definitions in other provisions of the Municipal Code, these definitions shall supersede for the purposes of this section. If a word is not defined in this section or is defined and conflicts with another definition of the Municipal Code, the Director shall determine the most appropriate definition.

Ordinance No. 2024-__
(5) “Lower Income Households” shall have the same meaning as defined in Section 50079.5 of the Health and Safety Code. 12/05/23 Page 13 Item #9 (6) “Supportive Housing” shall mean housing with no limit on length of stay, that is occupied by the target population, and that is linked to on-site or off-site services that assist the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. (7) “Supportive Services” shall include, but are not limited to, a combination of subsidized, permanent housing, intensive case management, medical and mental health care, substance abuse treatment, employment services, and benefits advocacy. (8) “Target Population” shall mean persons, including persons with disabilities, and families who are homeless, as that term is defined by Section 11302 of Title 42 of the United States Code, or who are homeless youth, as that term is defined by paragraph (2) of subdivision (e) of Section 11139.3 of the Government Code.

Section 44-307 Low-barrier navigation centers.
(f) Purpose. The purpose of this section is to establish development standards for low-barrier navigation centers and to ensure this use is constructed and operated in a manner that is consistent with the requirements and allowances of state law, specifically Article 12 of Chapter 3 of Division 1 of Planning and Zoning Law commencing with California Government Code Section 65660. This section shall be repealed as of January 1, 2027. (g) Applicability. The provisions of this section shall apply to all low-barrier navigation center projects.
(h) Planning Approval Required. An application to establish a low-barrier navigation shall be submitted to the Director of Community Development for review and approval. The decision to approve or deny an application shall be ministerial in nature, without any discretionary review or a hearing. The City shall notify a developer whether the developer’s application is complete within 30 days, pursuant to California Government Code Section 65943. A decision by the Community Development Director shall be taken within 60 days of a complete application being filed.
(i) Development and Operational Standards. A low-barrier navigation center development shall be deemed a use that is permitted by-right in areas zoned for mixed-use and nonresidential zones permitting multifamily uses, if it meets the following requirements:
(5) Connected Services. It offers services to connect people to permanent housing through a services plan that identifies services staffing. (6) Coordinated Entry System. It is linked to a coordinated entry system, so that staff in the interim facility or staff who co-locate in the facility may conduct assessments and provide services to connect people to permanent housing. “Coordinated entry system” means a centralized or coordinated assessment system developed pursuant to Section 576.400(d) or Section 578.7(a)(8), as applicable, of Title 24 of the Code of Federal Regulations, as those sections read on January 1, 2020, and any related requirements, designed to coordinate program participant intake, assessment, and referrals.
(7) Code Compliant. It complies with Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code.
(8) Homeless Management Information System. It has a system for entering information regarding client stays, client demographics, client income, and exit destination through the local Homeless Management Information System, as defined by Section 578.3 of Title 24 of the Code of Federal Regulations.

Ordinance No. 2024-__
(j) Definitions. This section includes the definition of terms and phrases used in this section that are technical or specialized, or that may not reflect common usage. If any of the definitions in this section conflict with definitions in other provisions of the Municipal Code, these definitions shall supersede for the purposes of this section. If a word is not defined in this section or is defined and conflicts with another definition of the Municipal Code, the Director shall determine the most appropriate definition.
(3) “Low-Barrier Navigation Centers” shall mean a housing-first, low-barrier, serviceenriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. “Low barrier” means best practices to reduce barriers to entry, and may include, but is not limited to, the following:
(E) The presence of partners if it is not a population-specific site, such as for survivors of domestic violence or sexual assault, women, or youth. (F) Pets.
(G) The storage of possessions.
(H) Privacy, such as partitions around beds in a dormitory setting or in larger rooms containing more than two beds, or private rooms. (4) “Use by Right” has the meaning defined in subdivision (i) of Section 65583.2.

Division 13 (commencing with Section 21000) of the California Public Resources Code shall not apply to actions taken by a public agency to lease, convey, or encumber land owned by a public agency, or to facilitate the lease, conveyance, or encumbrance of land owned by a public agency, or to provide financial assistance to, or otherwise approve, a Low-Barrier Navigation Center constructed or allowed by this section.

Section 44-394 Temporary sign permit.
(c) Temporary sign on non-residential property. Temporary signs on non-residential property, such as commercial or industrial property, require a permit from the Community Development Department and must comply with the following standards:
(1) Duration. Temporary signs (including banners and flags) may be displayed for a total of 63 days within a calendar year. If the sign relates to an event, it must be taken down no later than ten days after the event.
(2) Size. Temporary sign size shall not be greater than the size permitted for permanent building-mounted signage contained in table III-10.
(3) Location. The location of temporary signs shall be the same general area as permitted for permanent signs. Temporary signs over three feet high shall not be located within the traffic safety triangle.
(4) Exempt. Temporary signs of six square feet or less are exempt from the requirement to obtain a permit, but must not be located within the traffic safety triangle and the maximum height shall not be more than three feet above grade. A maximum of three such temporary signs are permitted at any given time on any non-residential property.

Ordinance No. 2024-__
Section 44-397 Sign standards.

TABLE III-10: SIGN STANDARDS
Use Sign
type
Maximum
number
Maximum
sign area
Maximum
height
Remarks
Neighborhood
commercial
Wall or
marquee
One sign per
street
frontage
1 sq. ft. per
lineal foot of
building
frontage
Not above the
parapet on a flat
roof or the eave
on a pitched roof
No building shall
be given credit
for more than
two street
frontages
Office
professional
Wall or
marquee
One sign per
street
frontage
1 sq. ft. per
lineal foot of
building
frontage
Not above the
parapet on a flat
roof or the eave
on a pitched roof
No building shall
be given credit
for more than
two street
frontages
Public or
institutional
Wall or
marquee
One sign per
street
frontage
1 sq. ft. per
lineal foot of
building
frontage
Not above the
parapet on a flat
roof or the eave
on a pitched roof
No building shall
be given credit
for more than
two street
frontages
Section 44-487 Sign review authority.

TABLE IV-3. SIGN REVIEW AUTHORITY
Type of sign Approval Appeal
Building-mounted Community Development Department Development and Circulation Committee
Monument Community Development Department Development and Circulation Committee
Electronic monument (1) City Council
On-site directional Community Development Department Development and Circulation Committee
Window Community Development Department Development and Circulation Committee

Ordinance No. 2024-__
TABLE IV-3. SIGN REVIEW AUTHORITY
Type of sign Approval Appeal
Flag poles Community Development Department Development and Circulation Committee
Master sign plan Development and
Circulation Committee
City Council
Master sign plan, not to
exceed two signs
Community Development Department Development and
Circulation Committee
Master sign plan,
amendment
Community Development Department Development and
Circulation Committee
Temporary sign on nonresidential propertyCommunity Development Department Development and Circulation Committee
Sec. 44-784. - Authority.

The approval authority designated in Section 44-485, Table IV-1 may grant approval of precise plans and amendments to precise plans.
(c) When no other discretionary permit is required, a Precise Plan shall be required for all residential development except single-family homes on previously subdivided lots, and for all nonresidential developments exceeding 2,000 square feet of total floor area. (d) Precise Plan, minor
(4) Application for minor Precise Plan permits are limited to the following requests:
(A) Development with less than 10,000 gross square feet of new building floor area.
(B) Four or less residential units.
(C) Any multifamily projects where a minimum of 20% of total units are restricted to be affordable to lower income households or at least 40% of total units are restricted to be affordable to moderate income households (for a period of time equal to provisions under State Density Bonus Law (California Government Code Section 65915).
(D) Modifications to previously approved Precise Plans that are substantially compliant with the original approval and do not result in additions greater than 10% of the total area.
(5) Decisions on minor Precise Plan applications shall be made administratively by the Community Development Director. The Director shall include a determination of findings and appropriate conditions in the decision. The basis for approval, conditional approval, or denial of a minor Precise Plan application shall be as specified in Section 44-787.

Ordinance No. 2024-__
(6) Subject to a determination by the Community Development Director, a minor Precise Plan application may be placed on a Development and Circulation Committee or City Council agenda for review.

TABLE IV-1. REVIEW AUTHORITY
Type of
entitlement or
decision
Section of
Development
Code
Community
Development
Director
Development
Committee
City
Council
Special
Permit
Committee
Precise plan 44-784 Recommend Recommend Decision/
appeal N/A
Precise plan,
minor 44-783 Decision Appeal Appeal N/A
Precise Plan,
Amendment 44-824 Decision Appeal Appeal N/A
Sec. 44-849. - Authority.

The approval authority designated in Section 44-485, Table IV-1 may grant approval of conditional use permits and amendments to conditional use permits.
(b) Conditional Use Permit, Minor
(4) Application for minor Conditional Use Permits are limited to the following requests:
(A) Alternatives to parking and loading standards.
(B) Beer, wine, and liquor licenses.
(C) Live entertainment uses.
(D) Modifications to certain development standards as may be specified by this Code.
(E) Other modifications which, in the determination of the Community Development Director, have a moderate potential for adverse impacts to the subject site and the surrounding community.
(5) Decisions on minor Conditional Use Permit applications shall be made administratively by the Community Development Director. The Director shall include a determination of findings and appropriate conditions in the decision. The basis for approval, conditional approval, or denial of a minor Conditional Use Permit shall be as specified in Section 44-788.
(6) Subject to a determination by the Community Development Director, a minor Conditional Use Permit may be placed on the City Council agenda for review.

Ordinance No. 2024-__
TABLE IV-1. REVIEW AUTHORITY
Type of
entitlement or
decision
Section of
Development
Code
Community
Development
Director
Development
Committee
City
Council
Special
Permit
Committee
Conditional use
permits 44-849 Recommend N/A Decision/appeal N/A
Conditional use
permits, minor 44-849 Decision N/A Appeal N/A

Agenda Item No. 16 November 5, 2024 | 1
City of La Palma
Agenda Item No. 16
MEETING DATE: November 5, 2024
TO: City Council
FROM: City Manager
SUBMITTED BY: Andy Ramirez, Public Works & Community Services Director
AGENDA TITLE: Award of Contract for Testing, Dynamic Profiling, and Pump and Motor Replacement for Water Quality Improvements at the City Yard RECOMMENDED ACTION:

It is recommended that the City Council take the following action:

1. Award a Contract to BESST Inc. for Testing, Dynamic Profiling, and Well Pump and Motor Replacement for Water Quality Improvements at the City Yard for an amount not to exceed $321,000;

2. Authorize a 15% contingency for unforeseen issues;

3. Authorize the City Manager or his designee to execute all required documents; and

4. Approve reallocating $321,000 in the FY 24/25 Capital Improvement Program budget from the Water Treatment Feasibility Study account (055-900-9330-00000) to the Pump & Well Repair account (055-900-7100-00000).

BACKGROUND
Meadowlark (City Yard) Well, was originally constructed in 1984 to supply groundwater to the City of La Palma. In 2010, the City observed groundwater arsenic concentrations rising close to the maximum contaminant level of 10 parts per billion (ppb). In March 2012, a water quality and water treatment feasibility study was completed. The study found that water treatment options for the removal of iron, manganese, and arsenic would have an approximate cost of $2.5 to $5 million ($3.4 to $6.9 million in today's economy) along with significant annual costs for maintenance and operations. As a result, the City began exploring other alternatives.

In 2013, the City entered into an agreement with BESST, Inc. (BESST) to profile the well for possible modifications to isolate the sources of the contaminants. In 2014, BESST finalized its findings and proposed a modification of the well pump to selectively extract higher-quality water. As a result, the City requested a feasibility test be conducted to demonstrate proof of concept and, if successful, pursue a permanent modification to the well pump or well screens.

Agenda Item No. 16 November 5, 2024 | 2
In early 2016, an engineered pump suction pipe with mechanical packers was installed to isolate the middle of three zones (upper, middle, and lower) of the well to reduce the intrusion of arsenic and manganese concentrations. In subsequent pumping tests, the arsenic concentrations fell and settled to just less than 6 parts per billion. The feasibility test of the engineered pump suction was generally considered a success and the City decided to keep it in place for further observation.

SUMMARY
In 2021, the Meadowlark Well started to experience a slight drop in water production and the City noticed that the arsenic levels were beginning to rise. In 2022, the City hired BESST to profile and investigate why the arsenic levels were increasing.

A review of pumping and water level data from 2018 to 2022, showed that as pumping levels dropped from above 1,600 gallons per minute (gpm) to 1,300 gpm and water levels fell from 115' to 133', arsenic levels increased from around 7 ppb to nearly 10 ppb. It was determined that as the pumping rate reduced, the upper zone of the aquifer contributed more to the overall water production along with higher concentrations of arsenic. BESST Senior Hydrogeologist, Noah Heller, has a hypothesis that two specific species of bacteria have shown a capability to dissolve arsenic in aquifers. Under the right conditions, (like within the zone of the well between the packers) arsenic-bearing minerals can be modified and transformed from a solid mineral to a soluble form. As these areas become less hydraulically active, organic matter, sulfur, iron, and arsenic become susceptible to microbial colonies that slowly grow. One of the byproducts of this process is believed to release dissolved arsenic which is drawn upward by pumping water into the well. The lower levels of iron and manganese in 2022 compared to 2013 may be due to competition from arsenic-reducing bacteria.

The proposed testing and profiling aim to gain production from the lower zone below the mechanical packers and speciate the bacteria to confirm BESST's theory that the elevated levels of arsenic are partially due to microbial action. Thus, samples will be sent to a laboratory for analysis to help develop a disinfection/treatment regimen to eliminate or control the bacteria from the well.

Additionally, the well pump and motor have exceeded the normal replacement schedule by several years and wear is contributing to reduced water production. This has resulted in the City paying more for energy to pump less water. Therefore, this work includes the replacement of the pump and motor.

This project will also convert the well's existing food grade oil-based lubrication system to water lubrication for improved efficiencies. Together with the profiling of the well, efforts will help determine a plan to rehabilitate the existing well or develop a new well (should it be required) and identify specific contaminated zones within the aquifer to avoid in the future.

In summary, the overall goal of the aforementioned efforts is to once again reduce the arsenic levels to below the current MCL, improve water quality, increase production, reduce operations/maintenance expenditures, eliminate or reduce costly treatment and/or immediate major improvements.

For this project, BESST Inc. is selected as a sole source vendor due to its patented/trademarked technologies and methods under an exclusive license agreement from the United States Geological Survey (USGS). Furthermore, BESST Inc. has years of invaluable knowledge regarding the City's geologic structure and hydraulic conditions obtained from their past projects for the City. Staff has reviewed references and similar projects in other agencies and found BESST Inc.'s pricing to be reasonable.

The FY 24/25 Capital Improvement Program budget includes a $500,000 allocation for a Water Treatment Feasibility Study (account 055-900-9330-00000). Since this project will not move forward

Agenda Item No. 16 November 5, 2024 | 3
this fiscal year, staff is requesting a budget transfer of $321,000 from the Water Treatment Feasibility Study account (055-900-9330-00000) to the Pump & Well Repair account (055-900-7100-00000) to fund this project.

FISCAL IMPACT:

Reallocating $321,000 within the FY 24/25 Capital Improvement Program (CIP) budget will reduce the funds available for the Water Treatment Feasibility Study (055-900-9330-00000) from $500,000 to $179,000, while increasing the Pump & Well Repair account (055-900-7100-00000) by $321,000.

This transfer does not raise the overall CIP budget but redistributes a portion of the existing allocation to support the project.

ATTACHMENTS:

1. BESST Quotation

October 28th, 2024
To: Carlo Nafarrete
Utilities / Maintenance Supervisor
City of La Palma
7822 Walker Street, La Palma, CA 90623
O: (714) 690-3312 E: [email protected]
From: Noah Heller
Subject: BESST Profiling Services and New Pump Oversight Services Dear Mr. Nafarrete:

Below is a summary of the scope of services that BESST and General Pump will provide to the City of La Palma if we are selected to perform the work. BESST has included our anticipated management fees based on GP’s quotation as well as an administrative markup to handle GP’s billing and other subcontractual efforts and insurances. The key points of service are the following:
• Perform an initial pump check by GP to perform equipment, efficiency and flow testing. These results will be provided to BESST in comparison to baseline results from BESST’s 2022 profiling report.
• BESST will perform dynamic profiling as quoted earlier to try to confirm that the elevated arsenic levels are due to microbial action or not, develop a disinfection and possibly a treatment plan to reduce the arsenic, with hopes of maintaining it below the current MCL. • GP repair and replacement of the well pump and motor assembly including replacement of the current oil lube system with a water flush/water lube system. BESST to include management of the R&R work and final flow and other tests for comparison with initial baseline tests and other information gathered from this task.
• Provide a final report to determine plansto effectively rehabilitate the well, potentially redesign the engineered suction tube and packers, establish protocol for future rehabs and potentially provide necessary downhole zone profiles identifying desired and avoidable zones for designing a future well.

If you have any questions or concerns regarding our proposal, please feel free to contact me.

Sincerely,
Noah Heller, MS PG
President, Principal Hydrogeologist
BESST, Inc.
50 Tiburon Street, Suite 7, San Rafael, CA 94901

Well Location: La Palma, California
Number of Locations: 1 Well
Quotation Date: Monday, October 28, 2024
Prepared by: Noah Heller, MS PG Lic. # 5792
Client Organization: City of La Palma
Name and Title: Carlo Nafarrete, Public Works Supervisor QUOTE VALID FOR 90 DAYS Street Address: 7822 Walker St. BESST INC
City and State: La Palma, CA, 90623 50 Tiburon, Suite 7 San Rafael, CA 94901 Phone: (714) 690-3300 Office: 415.453.2501 / cell: 415.302.7354 Email: [email protected] [email protected] Item HYDROGEOLOGIC PROFILING SERVICES Qty Unit Price Total Profiling Data Planning
Data Review including historical yield and chemistry reports, Planning meetings and Phone Calls, Injection and Sampling Plan. 1 project $ 1,000.00 $ 1,000.00 Subtotal #1 $ 1,000.00
Mob / Demob Mob/Demob For Access Survey (No charge if confirmed prior to Profile) 0 ea. $ 1,960.00 $ - Per Diem Per Diem costs for one scientist 0 days $ 360.00 $ - Access Survey Confirmatory Access Surveys 0 ea. $ 1,400.00 $ - Access Survey Report Access Survey Technical Memo (No report if Access is successful) 0 ea. $ 450.00 $ - Subtotal #2 $ -
Mob / Demob Dynamic Rig Mob/Demob and personnel 1 ea. $ 3,190.00 $ 3,190.00 Per Diem Per Diem costs for two scientists 3 days $ 720.00 $ 2,160.00 Crew Mob/Demob Used only if the video, flow and chemistry sampling requires more than 5 days. Crew demobs for weekend and returns to site the following Monday. 0 ea. $ 2,000.00 $ - System Setup System Setup 1 ea. $ 1,100.00 $ 1,100.00
Dynamic Flow
Dynamic Flow Survey (up to 20 injection depths). Optional injection points may be recommended based on the initial flow data and the length of the well screen. 1 ea. $ 7,775.00 $ 7,775.00 Subtotal #3 $ 14,225.00
Groundwater Sampling
Dynamic Groundwater Sampling Survey (up to 12 1-liter samples, 10 depth dependent with HydroBooster Pump and 2 wellhead). Sampling is planned for 2 field days due to extensive chemistry suite. Laboratory costs below in Task 6 1 ea. $ 11,500.00 $ 11,500.00 Subtotal #4 $ 11,500.00
WSE Bacterial Assesment 12 ea. $ 725.00 $ 8,700.00
Courier Lab Samples shipped to Kansas City, MO for Friday Delivery 1 ea. $ 800.00 $ 800.00 Arsenic 12 ea. $ 35.00 $ 420.00
Iron-Total and Dissolved 12 ea. $ 25.00 $ 300.00
Manganese-Total and Dissolved 12 ea. $ 25.00 $ 300.00
Total Dissolved Solids 12 ea. $ 25.00 $ 300.00
Administrative Fee 15% administrative Fee for Lab Coordination 1 ea. $ 1,623.00 $ 1,623.00 Subtotal #5 $ 12,443.00
Engineering Report
ENGINEERING REPORT: Detailed Dynamic Flow and Mass Balance Report (Mass Balance Up To 8 Constituents): Includes Analysis, Conclusions and Recommendations for Well Modification to Remove Contaminants of Concern. 1 ea. $ 8,750.00 $ 8,750.00 Subtotal #6 $ 8,750.00
Project Kickoff
Organizational pre-project meeting with subcontractor, covering health and safety, roles and responsibilities, project scope 2 hrs. $ 180.00 $ 360.00 Project Updates Summary memos and phone calls 3 hrs. $ 160.00 $ 480.00 Field Oversight BESST field presence, overseeing and documenting pump service contractor 60 hrs. $ 160.00 $ 9,600.00 Field Oversight Mob/Demob One Staff Scientist - Pump Removal, Video, Pump Installation, Other 3 ea. $ 1,960.00 $ 5,880.00 Per diem One Staff Scientist 5 days $ 360.00 $ 1,800.00 Final Report
Assimilation and integration of BESST and pump service company data and results into a single report 32 hrs. $ 160.00 $ 5,120.00
Supervising CA PG Noah Heller MS PG - Review and Internal Approval of Project Planning and Final Report 5 hrs. $ 220.00 $ 1,100.00 Subtotal 7 $ 24,340.00
Extra Injections Extra Injection Depths 0 ea. $ 100.00 $ - Extra Samples Extra Groundwater Sample Depths 0 ea. $ 200.00 $ - Extra Volume Extra Groundwater Sample Liters at Each Point 0 ea. $ 30.00 $ - Extra Analytes Extra Mass Balance Fee Per Analyte 0 ea. $ 400.00 $ - Detailed Treatment Analysis Detailed Treatment Analysis 0 ea. $5,000.00 $ - Pump Crew Oversight Oversee test pump installation-Lift and Shift operations-Access Pipe installation or other well preparation activities. 0 hr. $ 140.00 $ -
Standby Standby Rate 0 hr. $ 275.00 $ -
Oil Lube Fee Oil Lube Fee (Decon or Dispose of Tubing) 0 ft $ 2.50 $ - TASK 6 - HYDROGEOLOGIC REPORT
TASK 8 - OPTIONAL SERVICES
Quotation For: Dynamic Profile La Palma Meadowlark Well TASK 1 - PROFILE PLANNING
TASK 2 - SITE AND WELL ACCESS SURVEYS
TASK 3 - DYNAMIC FLOW PROFILING
TASK 4 - DYNAMIC DEPTH DEPENDENT SAMPLING
Payment Terms: Net 30
TASK 5 - LABORATORY FEES
Local Lab Analysis
TASK 7 - PROJECT MANAGEMENT AND REPORTING

Well Location: La Palma, California
Number of Locations: 1 Well
Quotation Date: Monday, October 28, 2024
Prepared by: Noah Heller, MS PG Lic. # 5792
Client Organization: City of La Palma
Name and Title: Carlo Nafarrete, Public Works Supervisor QUOTE VALID FOR 90 DAYS Street Address: 7822 Walker St. BESST INC
City and State: La Palma, CA, 90623 50 Tiburon, Suite 7 San Rafael, CA 94901 Phone: (714) 690-3300 Office: 415.453.2501 / cell: 415.302.7354 Email: [email protected] [email protected] Quotation For: Dynamic Profile La Palma Meadowlark Well Payment Terms: Net 30
Toilet Rental Rent and have portable toilet delivered to site 0 well $ 400.00 $ - Generator Rental Required if AC power not available on site 0 day $ 100.00 $ - Multi Water Parameter Meter pH, Temp, conductivity, dissolved oxygen, redox potential and turbidity 0 ea. $ 650.00 $ - Water Level Meter Measure Water Levels 1 ea. $ 95.00 $ 95.00 Labels Complete Sample Bottle Labels 1 ea. $ 275.00 $ 275.00 COC Complete Chain of Custody 1 ea. $ 110.00 $ 110.00
Package Package Samples 1 ea. $ 110.00 $ 110.00
Subtotal #8 $ 590.00
Pump Quotation General Pump Services for removal, repair, replacement and installation of pump. 1 ea. $ 215,000.00 $ 215,000.00 Administrative Fee BESST Subcontractor Administrative fee 1 ea. $ 32,250.00 $ 32,250.00 Subtotal 9 $ 247,250.00
$ 320,098.00
Client Name_____________________________________________________ Client PO Number_____________________ Client Signature____________________________________________________ Date___________________________ TOTAL: Including Options
TASK 9 - PUMP SERVICE SUBCONTRACTOR

BESST, Inc. ¤ 50 Tiburon St, Ste. 7 ¤ San Rafael, CA 94901 ¤ (P) 415/453.2501 ¤ (F) 415/453.2509 ¤ WWW.BESSTINC.COM www.besstinc.com
KEY FACTORS IN SOLE SOURCING BESST’S (USGS) ZONAL FLOW AND CHEMISTRY PROFILING

TECHNOLOGY
1) PATENTS: The technology includes four key patents. The four patents add 20 more years of lifespan (per patent) for application of the technology from 2036 to 2040. The four patents include, a) Sideways Injection b) UNIPASS and C) Selective Extraction of Fluids from Wells and Boreholes.
2) ONLY SERVICE PROVIDER: BESST is the only company that offers the technology and data interpretation services using these technologies.
3) MINIATURIZATION: Miniaturization of the technology allows the tooling to enter wells with pumps typically without removal of the pump. There is also minimal disturbance to the fluid column during the surveys due to the slim-hole nature, ranging from ¾” to 1” OD x 2” to 7” in length.
4) COST SAVINGS: The combined cost of planning, profiling with the BESST/USGS technology suite, and reporting is significantly less in cost than use of conventional methods. Conventional methods include spinner logging, straddle packer zone testing, test pumps, and externally contracted licensed geologists, hydrogeologists and engineers to perform data interpretation and reporting.
5) EXPERIENCE: The large number of studies performed by BESST in both old and new wells and the acquisition of a voluminous geochemical database providing a unique in-depth understanding of modes of contaminant occurrence in the subsurface. The various feasibility and well re-engineering projects performed by BESST makes the Company uniquely qualified to perform hydrogeological well studies with the ability to provide well re-engineering solutions to its clients for treatment capture and avoidance.

Agenda Item No. 17 November 5, 2024 | 1
City of La Palma
Agenda Item No. 17
MEETING DATE: November 5, 2024
TO: City Council
FROM: City Manager
SUBMITTED BY: Ryan Hallett, Assistant City Manager
AGENDA TITLE: Consideration of Agreement to Lease 5410-14 La Palma Avenue to Elite Taekwondo Center, Inc.

RECOMMENDED ACTION:

It is recommended that the City Council take the following action:

1. Adopt a Resolution approving an Agreement to Lease 5410-14 La Palma Ave by Elite Taekwondo Center, Inc.; and

2. Authorize the Mayor to execute the Lease Agreement and any other real estate documents to effectuate the provisions of the Lease Agreement.

SUMMARY:

The Successor Agency to the La Palma Community Development Commission transferred the building at 5410-14 La Palma Avenue to the City of La Palma on February 27, 2014. The City leased the 3,000 square foot building to Victor H. Chung, President of Elite Taekwondo Center, Inc. on February 17, 2015, to operate a martial arts studio. The current lease is approaching expiration, and both the City and Mr. Chung wish to continue their arrangement.

BACKGROUND:

The lease history for Elite Taekwondo Center, Inc., with the City began with an original lease agreement on February 17, 2015. This lease was subsequently amended multiple times to provide flexibility for the tenant during economic hardship during COVID-19 and set a structured rental increase plan through 2024:

1. First Amendment (June 2, 2020): Adjustments were made to the lease terms due to operational challenges related to COVID-19.

2. Second Amendment (December 8, 2020): Due to financial impacts from COVID-19, this amendment temporarily reduced rent payments to $500 per month until March 31, 2021, with

Agenda Item No. 17 November 5, 2024 | 2
provisions allowing early termination by the City with a 30-day notice.

3. Third Amendment (March 3, 2021): Continued rent relief with a month-to-month reduced rent structure at $500 per month due to ongoing pandemic challenges.

4. Fourth Amendment (December 1, 2021): The rent was set to $5,000 per month, with an annual increase of $500 each December, effective through December 31, 2024.

Mr. Chung has been a reliable tenant and cooperative partner with the City, consistently meeting lease obligations and providing a well-maintained space that supports local recreational opportunities.

ANALYSIS:

The lease agreement between the City ("Lessor") and Elite Taekwondo Center, Inc. ("Lessee"), outlines several key terms and obligations, including:

1. Lease Term and Renewal: The lease is set to begin on January 1, 2025, and extends through December 31, 2029, with an option for the Lessee to renew for an additional five years if exercised within the specified window.

2. Monthly Rent and Increases: The initial monthly rent is set at $6,000, with a 3% annual increase on each anniversary of the lease commencement date.

3. Last Month's Rental Deposit: A deposit of $6,753 is required for the last month's rent, payable at the start of the lease.

4. Conditions of Use and Maintenance: The premises are leased "as-is" for a martial arts center, with the Lessee responsible for interior maintenance and compliance with property restrictions. The Lessor handles structural, HVAC, and other repairs.

5. Insurance and Indemnity Requirements: The Lessee is required to maintain liability insurance with a minimum of $1 million per occurrence and $2 million aggregate, as well as property and casualty insurance on its personal and business property within the premises.

6. Improvement and Alteration Conditions: Lessee must obtain prior written consent from the Lessor for any improvements or alterations and is responsible for their cost.

FISCAL IMPACT:
5-Year Total Annual Lease Payments
Year 1 $72,000
Year 2 $74,160
Year 3 $76,384
Year 4 $78,676
Year 5 $81,036

Agenda Item No. 17 November 5, 2024 | 3
Total $382,256
ATTACHMENTS:

1. Resolution

Resolution No. 2024-__

379513.1
RESOLUTION NO. 2024-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LA PALMA FINDING THAT THE CITY HAS NO CITY
PURPOSE FOR THE PROPERTY AT 5410-14 LA PALMA

AVENUE OTHER THAN TO LEASE THE PROPERTY FOR A

COMMERCIAL USE AND APPROVING A LEASE

AGREEMENT FOR THE PROPERTY
WHEREAS, the Successor Agency to the La Palma Community Development Commission transferred the building at 5410-14 La Palma Avenue (“Property”) to the City of La Palma (“City”) on February 27, 2014; and
WHEREAS, the City leased the Property to Elite Taekwondo Center (“Tenant”) on February 17, 2015, to conduct martial arts classes (“Initial Lease”); and WHEREAS, the Initial Lease is approaching expiration, and both the City and Tenant wish to continue their arrangement at the Property; and WHEREAS, a new lease (“New Lease”) for the Property has been prepared for the City Council’s consideration and is set forth as “Exhibit A” attached hereto and incorporated herein by this reference; and
WHEREAS, the City published a Notice of Exemption (“Notice”) pursuant to Section 54221 of the Government Code indicating that the proposed use is exempt from the requirements for surplus land designation; and
WHEREAS, the Notice was published on August 28th, 2024, in the Event News Enterprise, a newspaper of general circulation with a 30-day comment period; and WHEREAS, to date, the City has received no objections to the Notice; and WHEREAS, the New Lease is exempt from California Environmental Quality Act (CEQA) review under the CEQA Guidelines because there is no possibility that the City Council action will have a significant effect on the environment (CEQA Guidelines § 15061(b)(3)) or the New Lease is also exempt pursuant to Class 1 of the categorical exemptions (CEQA Guidelines § 15301)
WHEREAS, Section 37395 of the Government Code requires the City to declare that there is no other city purpose for the Property prior to leasing.

NOW, THEREFORE, the City Council of the City of La Palma hereby resolves as follows:

Resolution No. 2024-__

379513.1
Section 1. The foregoing Recitals are true and correct and are incorporated into this Resolution by this reference.

Section 2. There is no City purpose for the property at 5410-14 La Palma Avenue other than to lease the property for commercial use.

Section 3. The City Council hereby approves the Lease Agreement substantially in the form as attached hereto as “Exhibit A”.

Section 4. The City Manager and City Attorney are hereby authorized to make final changes to the Lease Agreement that are consistent with this Resolution, and the Mayor is hereby authorized to execute the Lease Agreement and any other real estate documents to effectuate the provisions of the Lease Agreement.

Section 5. The City Clerk shall certify to the adoption of this Resolution and shall cause a certified Resolution to be filed in the book of original resolutions.

Section 6. The approval of the Lease Agreement and adoption of this resolution is exempt from California Environmental Quality Act (CEQA) review under the CEQA Guidelines Section 15061(b)(3) because there is no possibility that the City Council action will have a significant effect on the environment. In addition, the City Council action qualifies under the Class 1 categorical exemption set forth in CEQA Guidelines Section 15301 because the use consists of the operation, repair, maintenance, permitting, leasing, licensing, and minor alteration of an existing private structure involving negligible or no expansion of an existing or former use.

APPROVED AND ADOPTED by the City Council of the City of La Palma at a regular meeting held on the 5th day of November 2024.
________________________________
Marshall Goodman
Mayor
ATTEST:
______________________________________
Kimberly Kenney, CMC
City Clerk

Resolution No. 2024-__

379513.1

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF LA PALMA )
I, KIMBERLY KENNEY, City Clerk of the City of La Palma, California, DO HEREBY CERTIFY that the foregoing resolution was adopted by the City Council of said City at a regular meeting of said City Council held on the 5th day of November 2024, and that it was so adopted by called vote as follows:

AYES:

NOES:
________________________________
Kimberly Kenney, CMC
City Clerk

Resolution No. 2024-__

379513.1
EXHIBIT “A”
[See next page]

Agenda Item No. 18 November 5, 2024 | 1
City of La Palma
Agenda Item No. 18
MEETING DATE: November 5, 2024
TO: City Council
FROM: City Manager
SUBMITTED BY: Belinda Deines, Community Development Manager AGENDA TITLE: Economic Development/Land Use Ad-Hoc Subcommittee Findings and Recommendations
RECOMMENDED ACTION:

It is recommended that the City Council take the following action:

1. Approve the update to the City of La Palma Economic Development Plan 2030 and direct City staff to implement its programs and policies;

2. Adopt a resolution to establish the Economic Development Oversight Task Force;

3. Direct staff to solicit Statements of Interest for the Economic Development Oversight Task Force; and

4. Direct staff to request proposals from qualified consulting firms to prepare an Economic and Market Analysis.

SUMMARY:

In December 2023, the City Council established the Economic Development/Land Use Ad-Hoc Committee, which consists of Mayor Marshall Goodman, Councilmember Nitesh Patel, with assistance from City staff. The one-year committee was established to report back to Council on advisable land use changes that are based on the Housing Element Update and support goals of neighborhood preservation, economic development, and enhancing our shopping centers. City staff was tasked with contacting commercial property owners and having staff analyze economic issues specific to La Palma.

From February to October 2024, the Committee convened seven meetings to evaluate land use considerations and draft updates to the City’s Economic Development Plan 2030 (EDP 2030) to include findings and recommendations for City Council consideration. The findings and recommendations are outlined as a five-year strategic plan in the EDP 2030, which includes establishment of the Economic Development Oversight Task Force and a request for proposals (RFP) to prepare an Economic and Market Analysis.

Agenda Item No. 18 November 5, 2024 | 2
DISCUSSION:

Housing Element Policy Implementation
In compliance with La Palma General Plan Housing Element Programs 8, 11, and 13, the Economic Development/Land Use Ad-Hoc Committee was charged with reviewing the following items:
• Program 8: Housing Zoning Code Amendments related to: (Phase 1) emergency shelter parking, low barrier navigation centers, transitional and supportive housing, residential care facilities, elimination of Precise Plan for new single-family residences, allowing three stories and increased lot coverage for multifamily residences by December 2024; (Phase 2) objective design standards and multifamily residential parking requirements by June 2025. • Programs 11 & 13: City Planning Fee Reductions for new deed-restricted low-income housing and waive application fees for consolidation of small parcels to meet RHNA; adopted by City Council in June 2024.
• Program 11: Housing Land Use Analysis to review City-owned properties and identify surplus land for affordable housing, and facilitate affordable housing development on religious, institutional, and adaptive reuse on underutilized properties. Recommendations outlined in the Economic Development Plan include developing an opportunity sites inventory with the proposed economic and market profile.
• Program 11: Develop Economic Development Strategic Plan with report back to City Council on findings, recommendations, and update on implementation of programs.

City of La Palma Economic Development Plan 2030
Originally drafted in May 2002 and subsequently updated in 2006, 2009, and 2013, the City of La Palma Economic Development Plan 2030 (Attachment 1) is a five-year strategic plan that sets forth a comprehensive framework aimed at fostering sustainable economic growth and prosperity within the community. Developed through extensive research, stakeholder engagement, and strategic analysis, this strategy outlines key initiatives to capitalize on La Palma’s unique strengths, address challenges, and seize opportunities for economic advancement. This Plan continues to promote goals for fiscal sustainability, business attraction and retention, and development efforts.

EDP 2030 contains detailed chapters including an introduction to local economic development, guiding principles, economic trends, key economic development goals, policies and programs, a fiveyear Action Plan, roles and responsibilities, and funding sources. Furthermore, the Plan contains a description of the City’s current economic development climate in terms of its strengths, weaknesses, opportunities, and threats.

The Plan identifies three economic development goals to be addressed over the next five years, from 2025 to 2030. These goals were developed based on a review of the City’s existing economic market, internal and external working sessions, regional economic trends, and technology advancements. The key goals are:

1. Enhance community development processes;

2. Facilitate business attraction, retention, and expansion; and

3. Promote marketing and communications outreach