La Palma City Council
January 13, 2026

CITY OF LA PALMA
Nonmajor Special Revenue
Fiscal Year Ended June 30, 2025
108
Streets – To account for monies appropriated under the Streets and Highway Code Sections 2105, 2106, 2107, and 2107.5 of the State of California. The funds are restricted for expenditures that are used for the maintenance, rehabilitation, and improvements of public streets.

Measure M – To account for money appropriated under Measure M of the County of Orange. The funds are restricted for expenditures that are used for maintaining and improving public transportation projects.

Park Development – To account for monies restricted to the development and renovation of City parks.

Air Quality Improvement – To account for monies for motor vehicle registration fees collected in accordance with California Assembly Bill 2766. This fee was levied to fund programs to reduce air pollution from mobile sources such as cars, trucks, and buses.

Supplemental Law Enforcement Service – To account for state monies received in accordance with California Assembly Bill 329 to be used as a supplement for law enforcement systems.

Public Safety Augmentation – To account for special tax augmentation funds generated by a ½ cent sales tax under Proposition 172 of the State of California. These funds are restricted for public safety programs.

Abandoned Vehicles – To account for monies received as vehicle abatement for abandoned vehicles. The monies are restricted for public safety.

Asset Seizure – To account for monies received from the Regional Narcotics Suppression Program (RNSP) that are restricted to be used for law enforcement related expenditures.

PEG Fund – To account for public education and governmental fees, which are restricted for use in providing information to the public through bulletins and public service announcements.

BSCC Local Law Enforcement Grant – To account for monies received and expended by the City as a participant in the Board of State and Community Corrections grant program.

Road Maintenance and Rehabilitation Account – To account for the City’s share of monies apportioned under the State Road Maintenance and Rehabilitation Account which are restricted for the purpose of construction, reconstruction, maintenance, and right-of-way acquisition related to streets and highways.

North Orange County Public Safety Task Force – To account for monies received from the North Orange County Public Safety Task Force, which was created through $20 million in state budget funding. The Task Force, which includes ten cities in the north Orange County region (Anaheim, Brea, Buena Park, Cypress, Fullerton, La Habra, La Palma, Placentia, Stanton, and Yorba Linda), is a multi-jurisdictional four-year pilot program specifically geared to developing new and more effective interdisciplinary approaches to gang prevention and homelessness outreach and intervention in North Orange County.

109

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Supplemental
Air Law Public
Measure Park Quality Enforcement Safety
Streets M Development Improvement Service Augmentation
Assets:

Cash and investments 283,534 $ 241,412 $ 5 $ 303,931 $ 400,957 $ 389,863 $ Accounts receivable 2,008 - - - - -
Due from other
governments 37,710 58,518 - 5,246 - 18,236
Total assets 323,252 $ 299,930 $ 5 $ 309,177 $ 400,957 $ 408,099 $ Liabilities and
fund balances
Liabilities:

Accounts payable 33,362 $ 7,690 $ - $ - $ - $ - $
Due to other funds - - - - - -
Unearned revenue - 55,958 - - - -
Total liabilities 33,362 63,648 - - - -
Fund balances:

Restricted 289,890 236,282 5 309,177 400,957 408,099
Total fund balances 289,890 236,282 5 309,177 400,957 408,099 Total liabilities and
fund balances 323,252 $ 299,930 $ 5 $ 309,177 $ 400,957 $ 408,099 $

CITY OF LA PALMA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
Special Revenue Funds
110

Road North OC
BSCC Maintenance Public
Local Law and Safety
Abandoned Asset Enforcement Rehabilitation Task Force
Vehicle Seizure PEG Grant Account Grant Total
30,562$ 28,061$ 425,497 $ $ 53,894 $ 1,388,844 -$ 3,546,560 $ - - 4,343 - - - 6,351
- - - - 74,889 74,633 269,232
30,562$ 28,061$ 429,840 $ $ 53,894 $ 1,463,733 74,633$ $ 3,822,143 -$ 3,321$ $ - $ 20,724 - $ -$ 65,097$
- - - - - 21,729 21,729
- - - - - - 55,958
- 3,321 - - 20,724 21,729 142,784
30,562 24,740 429,840 53,894 1,443,009 52,904 3,679,359 30,562 24,740 429,840 53,894 1,443,009 52,904 3,679,359 30,562$ 28,061$ 429,840 $ $ 53,894 $ 1,463,733 74,633$ $ 3,822,143 Special Revenue Funds
111

Supplemental
Air Law Public
Measure Park Quality Enforcement Safety
Streets M Development Improvement Service Augmentation
Revenues:

Intergovernmental 445,064 $ 637,493 $ - $ $ 20,089 $ 194,663 $ 237,346 Investment
income 13,900 48,774 - 14,279 19,574 18,940
Miscellaneous - - - - - -
Total revenues 458,964 686,267 - 34,368 214,237 256,286 Expenditures:

Current:

Public safety - - - - 138,900 232,447
Public works 422,721 - - - - -
Capital outlay - 1,069,853 - - - -
Total expenditures 422,721 1,069,853 - - 138,900 232,447 Excess (deficiency)
of revenues over
(under) expenditures 36,243 (383,586) - 34,368 75,337 23,839 Net change in fund
balances 36,243 (383,586) - 34,368 75,337 23,839
Fund balances -
beginning of fiscal
year 253,647 619,868 5 274,809 325,620 384,260
Fund balances -
end of fiscal year $ 289,890 $ 236,282 $ 309,177 5 $ $ 400,957 $ 408,099

CITY OF LA PALMA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
Fiscal Year Ended June 30, 2025
Special Revenue Funds
112

Road North OC
BSCC Maintenance Public
Local Law and Safety
Abandoned Asset Enforcement Rehabilitation Task Force
Vehicles Seizure PEG Grant Account Grant Total
$ - - $ - $ - $ 424,973 $ 218,034 $ 2,177,662 $
1,475 1,476 20,244 2,603 77,343 316 218,924
- - 22,951 - - - 22,951
1,475 1,476 43,195 2,603 502,316 218,350 2,419,537
14,603 - - - - 165,446 551,396
- - - - - - 422,721
- - - - 373,459 - 1,443,312
14,603 - - - 373,459 165,446 2,417,429
(13,128) 1,476 43,195 2,603 128,857 52,904 2,108
(13,128) 1,476 43,195 2,603 128,857 52,904 2,108
37,868 29,086 386,645 51,291 1,314,152 - 3,677,251
$ 24,740 30,562 $ 429,840 $ 53,894 $ 1,443,009 $ 52,904 $ 3,679,359 $ Special Revenue Funds
113

CITY OF LA PALMA
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Streets – Special Revenue Fund
Fiscal Year Ended June 30, 2025
Variance
With
Final
Budget -
Positive
Original Final Actual (Negative)
Revenues:

Intergovernmental $ 437,100 437,100 $ 445,064 $ 7,964 $ Investment income 1,000 1,000 13,900 12,900
Total revenues 438,100 438,100 458,964 20,864
Expenditures:

Current:

Public works 437,600 437,600 422,721 14,879
Capital Outlay 150,000 150,000 - 150,000
Total expenditures 587,600 587,600 422,721 164,879
Net change in fund balance (149,500) (149,500) 36,243 185,743 Fund balances - beginning of fiscal year 253,647 253,647 253,647 - Fund balance - end of fiscal year $ 104,147 104,147 $ 289,890 $ 185,743 $ Budgeted Amounts
114

CITY OF LA PALMA
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Measure M – Special Revenue Fund
Fiscal Year Ended June 30, 2025
Variance
With
Final
Budget -
Positive
Original Final Actual (Negative)
Revenues:

Intergovernmental $ 940,000 973,200 $ 637,493 $ (302,507) $ Investment income 5,000 5,000 48,774 43,774
Total revenues 978,200 945,000 686,267 (258,733)
Expenditures:

Capital outlay 1,557,000 1,557,000 1,069,853 487,147
Total expenditures 1,557,000 1,557,000 1,069,853 487,147 Net change in fund balance (612,000) (578,800) (383,586) 228,414 Fund balance - beginning of fiscal year 619,868 619,868 619,868 - Fund balance - end of fiscal year $ 7,868 41,068 $ 236,282 $ 228,414 $ Budgeted Amounts
115

CITY OF LA PALMA
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Park Development – Special Revenue Fund
Fiscal Year Ended June 30, 2025
Variance
With
Final
Budget -
Positive
Original Final Actual (Negative)
Revenues:

Investment income - $ - $ - $ - $
Total revenues - - - -
Expenditures:

Capital Outlay - - - -
Total Expenditures - - - -
Net change in fund balance - - - -
Fund balance - beginning of fiscal year 2,257 2,257 5 (2,252) Fund balance - end of fiscal year $ 2,257 2,257 $ 5 $ (2,252) $ Budgeted Amounts
116

CITY OF LA PALMA
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Air Quality Improvement – Special Revenue Fund
Fiscal Year Ended June 30, 2025
Variance
With
Final
Budget -
Positive
Original Final Actual (Negative)
Revenues:

Intergovernmental 20,000 $ 20,000 $ 20,089 $ 89 $
Investment income 2,000 2,000 14,279 12,279
Total revenues 22,000 22,000 34,368 12,368
Expenditures:

Capital outlay - - - -
Total expenditures - - - -
Net change in fund balance 22,000 22,000 34,368 12,368
Fund balance - beginning of fiscal year 274,809 274,809 274,809 - Fund balance - end of fiscal year $ 296,809 296,809 $ 309,177 $ 12,368 $ Budget and Actual
Budgeted Amounts
117

CITY OF LA PALMA
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Supplemental Law Enforcement Service – Special Revenue Fund Fiscal Year Ended June 30, 2025
Variance
With
Final
Budget -
Positive
Original Final Actual (Negative)
Revenues:

Intergovernmental $ 164,500 164,500 $ 194,663 $ 30,163 $ Investment income 3,000 3,000 19,574 16,574
Total revenues 167,500 167,500 214,237 46,737
Expenditures:

Current:

Public safety 202,200 202,200 138,900 63,300
Total expenditures 202,200 202,200 138,900 63,300
Net change in fund balance (34,700) (34,700) 75,337 110,037 Fund balance - beginning of fiscal year 325,620 325,620 325,620 - Fund balance - end of fiscal year $ 290,920 290,920 $ 400,957 $ 110,037 $ Budgeted Amounts
118

CITY OF LA PALMA
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Public Safety Augmentation – Special Revenue Fund
Fiscal Year Ended June 30, 2025
Variance
With
Final
Budget -
Positive
Original Final Actual (Negative)
Revenues:

Intergovernmental $ 239,200 239,200 $ 237,346 $ (1,854) $ Investment income 3,000 3,000 18,940 15,940
Total revenues 242,200 242,200 256,286 14,086
Expenditures:

Current:

Public safety 233,600 233,600 232,447 1,153
Total expenditures 233,600 233,600 232,447 1,153
Net change in fund balance 8,600 8,600 23,839 15,239
Fund balance - beginning of fiscal year 384,260 384,260 384,260 - Fund balance - end of fiscal year $ 392,860 392,860 $ 408,099 $ 15,239 $ Budgeted Amounts
119

CITY OF LA PALMA
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Abandoned Vehicles – Special Revenue Fund
Fiscal Year Ended June 30, 2025
Variance
With
Final
Budget -
Positive
Original Final Actual (Negative)
Revenues:

Investment income 300 $ 300 $ 1,476 $ 1,176 $
Net change in fund balance 300 300 1,476 1,176
Fund balance - beginning of fiscal year 29,086 29,086 29,086 - Fund balance - end of fiscal year $ 29,386 29,386 $ 30,562 $ 1,176 $ Budgeted Amounts
120

CITY OF LA PALMA
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Asset Seizure – Special Revenue Fund
Fiscal Year Ended June 30, 2025
Variance
With
Final
Budget -
Positive
Original Final Actual (Negative)
Revenues:

Investment income - $ - $ 1,475 $ 1,475 $
Total revenues - - 1,475 1,475
Expenditures:

Current:

Public safety 27,500 27,500 14,603 12,897
Total expenditures 27,500 27,500 14,603 12,897
Net change in fund balance (27,500) (27,500) (13,128) 14,372 Fund balance - beginning of fiscal year 37,868 37,868 37,868 - Fund balance - end of fiscal year $ 10,368 10,368 $ 24,740 $ 14,372 $ Budgeted Amounts
121

CITY OF LA PALMA
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
PEG – Special Revenue Fund
Fiscal Year Ended June 30, 2025
Variance
With
Final
Budget -
Positive
Original Final Actual (Negative)
Revenues:

Investment income 4,000 $ 4,000 $ 20,244 $ 16,244 $
Miscellaneous 25,000 25,000 22,951 (2,049)
Total revenues 29,000 29,000 43,195 14,195
Expenditures:

Capital outlay - - - -
Total expenditures - - - -
Net change in fund balance 29,000 29,000 43,195 14,195
Fund balance - beginning of fiscal year 386,645 386,645 386,645 - Fund balance - end of fiscal year $ 415,645 415,645 $ 429,840 $ 14,195 $ Budgeted Amounts
122

CITY OF LA PALMA
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
BSCC Local Law Enforcement Grant – Special Revenue Fund Fiscal Year Ended June 30, 2025
Variance
With
Final
Budget -
Positive
Original Final Actual (Negative)
Revenues:

Investment income 100 $ 100 $ 2,603 $ 2,503 $
Total revenues 100 100 2,603 2,503
Expenditures:

Current:

Public safety 12,500 12,500 - 12,500
Total expenditures 12,500 12,500 - 12,500
Net change in fund balance (12,400) (12,400) 2,603 15,003 Fund balance - beginning of fiscal year 51,291 51,291 51,291 - Fund balance - end of fiscal year $ 38,891 38,891 $ 53,894 $ 15,003 $ Budgeted Amounts
123

CITY OF LA PALMA
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Road Maintenance and Rehabilitation Account (RMRA) – Special Revenue Fund Fiscal Year Ended June 30, 2025
Variance
With
Final
Budget -
Positive
Original Final Actual (Negative)
Revenues:

Intergovernmental $ 398,800 398,800 $ 424,973 $ 26,173 $ Investment income 8,000 8,000 77,343 69,343
Total revenues 406,800 406,800 502,316 95,516
Expenditures:

Capital outlay 1,313,000 1,313,000 373,459 939,541
Total expenditures 1,313,000 1,313,000 373,459 939,541
Net change in fund balance (906,200) (906,200) 128,857 1,035,057 Fund balance - beginning of fiscal year 1,314,152 1,314,152 1,314,152 - Fund balance - end of fiscal year $ 407,952 407,952 $ 1,443,009 $ 1,035,057 $ Budgeted Amounts
124

CITY OF LA PALMA
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
North OC Public Safety Task Force Grant – Special Revenue Fund Fiscal Year Ended June 30, 2025
Variance
With
Final
Budget -
Positive
Original Final Actual (Negative)
Revenues:

Intergovernmental 180,000 $ 180,000 $ 218,034 $ 38,034 $ Investment income 1,000 1,000 316 (684)
Total Revenues 181,000 181,000 218,350 37,350
Expenditures:

Current:

Public safety 168,900 168,900 165,446 3,454
Total expenditures 168,900 168,900 165,446 3,454
Net change in fund balance 12,100 12,100 52,904 40,804
Fund balance - beginning of fiscal year - - - -
Fund balance - end of fiscal year $ 12,100 12,100 $ 52,904 $ 40,804 $ Budgeted Amounts
125

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CITY OF LA PALMA
Internal Service Funds
Fiscal Year Ended June 30, 2025
127
The City of La Palma has five Internal Service Funds:

Risk Management – To account for certain risk management activities of the City including general liability claims, workers’ compensation claims, and other expenses.

Employee Benefits – To account for costs of the City’s employee benefit plan.

Facilities Maintenance – To account for and manage costs associated with the City’s facilities maintenance program.

Vehicle Replacement – To account for accumulation of monies to be used for vehicle replacements.

Technology Replacement – To account for accumulation of monies to be used for replacements of computers owned and utilized by the City.

Risk Employee Facilities
Management Benefits Maintenance
Assets:

Current assets:

Cash and cash equivalents 1,283,816 $ 341,856 $ 60,399 $ Total current assets 1,283,816 341,856 60,399
Noncurrent assets:

Capital assets:

Capital assets being depreciated,
net of accumulated depreciation - - -
Total noncurrent assets - - -
Total assets 1,283,816 $ 341,856 $ 60,399 $
Liabilities:

Current liabilities:

Accounts payable - $ - $ - $
Enterprise leases payable - - -
Total current liabilities - - -
Noncurrent liabilities:

Enterprise leases payable - - -
Total noncurrent liabilities - - -
Total liabilities - - -
Net position:

Net investment in capital assets - - -
Unrestricted 1,283,816 341,856 60,399
Total net position 1,283,816 341,856 60,399
Total liabilities and net position 1,283,816 $ 341,856 $ 60,399 $

CITY OF LA PALMA
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
128

Vehicle Technology
Replacement Replacement Total
$ 1,241,314 2,178,659 $ 5,106,044 $
1,241,314 2,178,659 5,106,044
59,731 719,607 779,338
59,731 719,607 779,338
$ 1,301,045 2,898,266 $ 5,885,382 $
$ 5,004 8,272 $ 13,276 $
- 63,132 63,132
5,004 71,404 76,408
- 226,002 226,002
- 226,002 226,002
5,004 297,406 302,410
59,731 430,473 490,204
1,236,310 2,170,387 5,092,768
1,296,041 2,600,860 5,582,972
$ 1,301,045 2,898,266 $ 5,885,382 $
129

Risk Employee Facilities
Management Benefits Maintenance
Operating revenues
Charges for services 896,600 $ - $ - $
Miscellaneous - - -
Total operating revenues 896,600 - -
Operating expenses
Maintenance and operations - - -
Depreciation - - -
Settlement, claims, and insurance 889,148 - -
Total operating expenses 889,148 - -
Operating income (loss) - 7,452 -
Nonoperating revenues (expenses)
Investment income 47,435 16,511 2,916
Loss on disposal of capital assets - - -
Total nonoperating revenues 47,435 16,511 2,916
Changes in net position 16,511 54,887 2,916
Total net position - beginning of fiscal year 1,228,929 325,345 57,483 Total net position - end of fiscal year $ 341,856 1,283,816 $ 60,399 $

CITY OF LA PALMA
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Internal Service Funds
Fiscal Year Ended June 30, 2025
130

Vehicle Technology
Replacement Replacement Total
$ 199,999 387,000 $ 1,483,599 $
- 56,364 56,364
199,999 443,364 1,539,963
133,502 49,087 182,589
12,784 136,618 149,402
- - 889,148
146,286 185,705 1,221,139
53,713 257,659 318,824
59,692 104,500 231,054
(1,043) - (1,043)
58,649 104,500 230,011
112,362 362,159 548,835
1,183,679 2,238,701 5,034,137
$ 1,296,041 2,600,860 $ 5,582,972 $
131

Risk Employee Facilities
Management Benefits Maintenance
Cash flows from operating activities
Cash received from internal users 896,600 $ - $ - $
Cash payments to suppliers for goods
and services (891,534) - -
Miscellaneous receipts - - -
Net cash provided (used) by operating activities 5,066 - - Cash flows from capital and related
financing activities
Proceeds of lease payable - - -
Payments of lease principal - - -
Acquisition of capital assets - - -
Net cash used by capital and related
financing activities - - -
Cash flows from investing activities
Interest received 47,435 16,511 2,916
Net cash provided by investing activities 47,435 16,511 2,916 Net increase in cash and cash equivalents 16,511 52,501 2,916 Cash and equivalents - beginning of fiscal year 1,231,315 325,345 57,483 Cash and cash equivalents - end of fiscal year $ 341,856 1,283,816 $ 60,399 $ Reconciliation of operating income (loss) to net
cash provided (used) by operating activities
Operating income (loss) 7,452 $ - $ - $
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities
Depreciation - - -
Increase (decrease) in operating liabilities:

Accounts payable (2,386) - -
Total adjustments (2,386) - -
Net cash provided (used) by operating activities 5,066 $ - $ - $ Non-cash transactions
Loss on disposal of capital assets - $ - $ - $

CITY OF LA PALMA
Combining Statement of Cash Flows
Internal Service Funds
Fiscal Year Ended June 30, 2025
132

Vehicle Technology
Replacement Replacement Total
$ 199,999 387,000 $ 1,483,599 $
(130,725) (47,563) (1,069,822)
- 56,364 56,364
69,274 395,801 470,141
- 68,683 68,683
- (54,999) (54,999)
(49,458) (268,462) (317,920)
(49,458) (254,778) (304,236)
59,692 104,500 231,054
59,692 104,500 231,054
79,508 245,523 396,959
1,161,806 1,933,136 4,709,085
$ 1,241,314 2,178,659 $ 5,106,044 $
$ 53,713 257,659 $ 318,824 $
12,784 136,618 149,402
2,777 1,524 1,915
15,561 138,142 151,317
$ 69,274 395,801 $ 470,141 $
$ - $ (1,043) $ (1,043)
133

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135

STATISTICAL SECTION

136

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137

CITY OF LA PALMA

OVERVIEW OF THE STATISTICAL SECTION
JUNE 30, 2025
The Statistical Section provides a context for understanding information in the financial statements, note disclosures, and required supplementary information and how that information relates to the City of La Palma’s overall financial health. The detailed schedules presented in the Statistical Section are grouped into five sections pertaining to financial trends, revenue capacity, debt capacity, operating, demographic, and economic information.

Contents
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source of property taxes.

Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s basic financial statements relates to the services the City provides and the activities it performs.

Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place.

2025 2024 2023 2022 2021
Governmental activities
Net investment in capital assets 22,725,647 $ 19,906,510 $ 19,821,435 $ 19,275,340 $ 19,560,150 $ Restricted 9,963,195 9,796,429 9,093,160 7,636,318 7,383,488 Unrestricted 19,235,701 18,623,110 17,188,372 16,896,171 11,448,218 Total governmental activities 51,924,543 $ 48,326,049 $ 46,102,967 $ 43,807,829 $ 38,391,856 $ Business-type activities
Net investment in capital assets 5,027,802 $ 4,990,438 $ 4,654,318 $ 4,983,901 $ 4,852,155 $ Restricted 115,470 $ 75,493 $ 47,173 $ - $ - $
Unrestricted 8,304,516 8,355,644 9,088,302 9,321,436 9,701,087 Total business-type activities 13,447,788 $ 13,421,575 $ 13,789,793 $ 14,305,337 $ 14,553,242 $ Primary government
Net investment in capital assets 27,753,449 $ 24,896,948 $ 24,475,753 $ 24,259,241 $ 24,412,305 $ Restricted 10,078,665 9,871,922 9,140,333 7,636,318 7,383,488 Unrestricted 27,540,217 26,978,754 26,276,674 26,217,607 21,149,305 Total primary government 65,372,331 $ 61,747,624 $ 59,892,760 $ 58,113,166 $ 52,945,098 $ Source: City of La Palma Finance Department
Net Position by Component

CITY OF LA PALMA
Fiscal year
(Accrual Basis of Accounting)
Last Ten Fiscal Years
138

2020 2019 2018 2017 2016
$ 18,570,542 18,421,608 $ 18,835,137 $ 17,263,715 $ 18,144,119 $ 6,246,416 8,196,168 1,813,446 1,434,947 1,522,074
9,422,851 10,202,124 7,672,517 9,051,807 9,193,830
$ 34,239,809 36,819,900 $ 28,321,100 $ 27,750,469 $ 28,860,023 $ $ 5,416,763 5,197,335 $ 5,540,929 $ 5,946,985 $ 6,322,101 $ $ - - $ - $ - $ - $
8,513,685 9,054,853 8,271,049 7,937,380 8,429,008
$ 13,930,448 14,252,188 $ 13,811,978 $ 13,884,365 $ 14,751,109 $ $ 23,987,305 23,618,943 $ 24,376,066 $ 23,210,700 $ 24,466,220 $ 6,246,416 8,196,168 1,813,446 1,434,947 1,522,074
17,936,536 19,256,977 15,943,566 16,989,187 17,622,838
$ 48,170,257 51,072,088 $ 42,133,078 $ 41,634,834 $ 43,611,132 $ Fiscal year
139

2025 2024 2023 2022 2021
Expenses:

Governmental activities:

General government 5,514,232 $ 4,830,621 $ 4,593,055 $ 3,672,474 $ 5,186,198 $ Public safety 6,959,141 6,622,915 5,654,582 4,031,132 5,305,101 Public works 2,491,980 2,655,690 2,502,582 2,115,815 2,770,258 Recreation 1,590,068 1,544,570 1,413,544 890,265 1,007,607 Community development 1,087,684 1,054,337 866,161 641,152 1,295,438 Interest on long-term debt 10,660 6,201 - 4,284 -
Total governmental activities 17,653,765 16,714,334 15,029,924 11,355,122 15,564,602 Business-type activities:

Water 3,525,903 3,266,366 3,089,164 3,136,213 3,052,955 Sewer 469,399 632,357 352,626 393,659 456,844
Total business-type activities 3,995,302 3,898,723 3,441,790 3,529,872 3,509,799 Total primary government expenses 21,649,067 20,613,057 18,471,714 14,884,994 19,074,401 Program revenues:

Governmental activities:

Charges for services:

General government 345,716 24,631 63,821 139,738 240,633 Public safety 15,745 264,549 228,797 235,121 77,579
Public works 66,202 91,071 169,109 69,679 21,018
Recreation 356,866 293,653 395,518 354,726 64,369
Community development 460,429 402,157 509,469 305,025 301,826 Operating grants and contributions 1,792,889 1,568,723 1,359,762 3,288,555 3,818,909 Capital grants and contributions 2,259,936 402,162 637,493 341,050 600,589 Total governmental activities 5,297,783 3,046,946 3,363,969 4,733,894 5,124,923 Business-type activities:

Charges for services:

Water 3,797,228 3,387,972 3,300,306 3,525,225 3,610,009 Sewer 574,173 562,916 546,560 597,106 638,001
Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities 4,371,401 3,950,888 3,846,866 4,122,331 4,248,010 Total primary government program revenues 9,669,184 6,997,834 7,210,835 8,856,225 9,372,933 Source: City of La Palma Finance Department

CITY OF LA PALMA
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year
140

2020 2019 2018 2017 2016
$ 4,207,716 5,160,027 $ 4,593,316 $ 4,701,496 $ 2,767,437 $ 5,161,678 5,206,824 4,773,427 4,354,431 4,794,910
2,313,356 1,876,023 2,069,594 3,334,559 1,757,806
1,284,377 1,106,288 1,205,139 1,167,249 1,267,799
577,308 683,314 631,853 683,872 684,085
126,779 - - - -
13,671,214 14,032,476 13,273,329 14,241,607 11,272,037
2,817,376 3,009,191 2,607,440 2,851,600 2,499,269
336,628 501,119 137,736 487,771 494,741
3,154,004 3,510,310 2,745,176 3,339,371 2,994,010
16,825,218 17,542,786 16,018,505 17,580,978 14,266,047
236,459 232,254 227,005 233,455 236,341
90,587 90,546 100,250 104,188 156,106
26,640 18,067 23,196 38,271 84,200
352,048 214,343 371,470 351,705 388,129
239,166 301,979 212,926 444,223 257,717
1,487,731 1,770,316 1,406,794 1,351,153 1,109,238
563,718 296,210 478,190 865,150 -
2,996,349 2,923,715 2,819,831 3,388,145 2,231,731
3,087,184 3,380,625 3,005,364 2,720,115 2,422,653
440,879 549,006 353,046 272,544 204,800
- - - - -
- - - - -
3,528,063 3,929,631 3,358,410 2,992,659 2,627,453
6,524,412 6,853,346 6,178,241 6,380,804 4,859,184
Fiscal Year
141

2025 2024 2023 2022 2021
Net revenues (expenses):

Governmental activities (12,355,982) $ (13,667,388) $ (11,665,955) $ (6,621,228) $ (10,439,679) $ Business-type activities 376,099 52,165 405,076 592,459 738,211 Total primary government net revenues (expenses) (11,979,883) (13,615,223) (11,260,879) (6,028,769) (9,701,468) General revenues and other changes in net assets:

Governmental activities:

Taxes:

Property Tax 5,290,259 $ 5,070,169 $ 4,862,955 $ 4,626,399 $ 4,377,315 $ Sales Tax 4,424,726 4,736,950 4,064,012 4,635,157 3,983,660 Utility Users' Tax 1,281,102 1,183,337 1,293,029 1,037,550 957,702 Franchise Tax 483,645 524,795 448,751 428,401 397,503
Transient Occupancy Tax 673,963 646,108 510,704 392,423 160,948 Intergovernmental - unrestricted - - - - -
Investment income 2,134,142 1,998,836 632,232 (585,796) 934,885 Other general revenues 883,739 942,928 1,108,335 843,667 553,022 Gain (Loss) on asset disposal - - - - -
Transfers 782,900 787,347 1,041,075 659,400 646,600
Contributions from Successor Agency - - -
Extraordinary Gain (Loss) - - -
Total governmental activities 15,954,476 15,890,470 13,961,093 12,037,201 12,011,635 Business-type activities:

Investment income 432,973 366,964 120,455 (180,964) 209,443 Other general revenues 41 - - -
Transfers (782,900) (787,347) (1,041,075) (659,400) (646,600) Extraordinary Gain (Loss) - - - - -
Total business-type activities (349,886) (420,383) (920,620) (840,364) (437,157) Total primary government general revenues
and other changes in net assets 15,604,590 15,470,087 13,040,473 11,196,837 11,574,478 Changes in net position:

Governmental activities 3,598,494 2,223,082 2,295,138 5,415,973 1,571,956 Business-type activities 26,213 (368,218) (515,544) (247,905) 301,054 Total primary government changes in net position 3,624,707 $ 1,854,864 $ 1,779,594 $ 5,168,068 $ 1,873,010 $ Source: City of La Palma Finance Department

CITY OF LA PALMA
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting) (Continued)
Fiscal Year
142

2020 2019 2018 2017 2016
$ (10,578,086) (11,108,761) $ (10,453,498) $ (10,853,462) $ (9,040,306) $ 374,059 419,321 613,234 (346,712) (366,557)
(10,204,027) (10,689,440) (9,840,264) (11,200,174) (9,406,863) $ 4,019,824 4,248,987 $ 3,879,065 $ 3,828,141 $ 3,566,153 $ 4,198,742 3,382,369 4,456,828 3,402,360 2,341,421
951,388 918,256 992,221 1,024,147 1,078,903
437,747 417,835 377,450 379,625 394,345
398,343 297,709 391,991 377,595 390,823
- - - - -
902,426 1,046,459 194,162 172,803 325,062
482,085 489,925 454,119 384,997 645,702
- - - - -
587,700 852,658 587,700 567,190 587,700
- - - - -
- - - - -
11,978,255 11,654,198 11,333,536 10,136,858 9,330,109
267,593 326,853 22,401 31,027 114,352
1,228 30,856 - 16,131 5,286
(587,700) (852,658) (587,700) (567,190) (587,700)
- - - - -
(318,879) (494,949) (565,299) (520,032) (468,062)
11,659,376 11,159,249 10,768,237 9,616,826 8,862,047
1,400,169 545,437 880,038 (716,604) 289,803
55,180 (75,628) 47,935 (866,744) (834,619)
$ 1,455,349 469,809 $ 927,973 $ (1,583,348) $ (544,816) $ Fiscal Year
143

2025 2024 2023 2022 2021
General Fund:

Nonspendable 53,888 $ 47,565 $ 24,873 $ 17,151 $ 32,012 $ Committed 10,253,982 7,953,982 7,954,834 6,248,205 6,155,769 Assigned 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Unassigned 7,884,537 8,931,640 6,083,172 6,230,765 3,325,005 Total General Fund 19,692,407 $ 18,433,187 $ 15,562,879 $ 13,996,121 $ 11,012,786 $ All other governmental funds:

Nonspendable - $ - $ - $ - $
Restricted 8,243,699 8,417,714 7,967,504 7,571,047 7,383,488 Assigned 7,311,436 8,091,712 8,715,089 8,647,192 9,221,379 Unassigned - - - - -
Total all other governmental funds 15,555,135 $ 16,509,426 $ 16,682,593 $ 16,218,239 $ 16,604,867 $ Source: City of La Palma Finance Department

CITY OF LA PALMA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year
144

2020 2019 2018 2017 2016
$ 735,699 52,310 $ 823,266 $ 868,516 $ 945,685 $
5,669,364 6,117,468 5,301,863 5,213,714 10,228,814
250,000 1,500,000 250,000 250,000 250,000
3,355,285 1,488,985 2,097,144 4,894,542 988,583
$ 10,010,348 9,158,763 $ 8,472,273 $ 11,226,772 $ 12,413,082 $ $ - - $ - $ - $ - $
5,836,999 7,581,049 1,796,825 1,412,516 1,522,074
6,661,163 10,288,908 6,381,098 6,008,589 6,535,427
- - - - -
$ 12,498,162 17,869,957 $ 8,177,923 $ 7,421,105 $ 8,057,501 $ Fiscal Year
145

2025 2024 2023 2022
Revenues:

Taxes 12,153,694 $ 12,142,109 $ 11,163,477 $ 11,101,945 $ Intergovernmental 2, 1,792,899 217,862 2,214,441 3,784,738 Licenses and permits 568,881 518,965 464,984 392,109
Fines and forfeitures 75,407 142,148 161,878 101,574
Investment income 1,903,088 1,704,603 1,015,295 (613,117) Charges for services 600,668 571,328 682,444 467,026
Rental income 579,042 570,000 547,338 505,630
Developer contributions - - - -
Miscellaneous 304,700 166,157 380,286 92,327
Total revenues 18,403,342 17,608,209 16,630,143 15,832,232 Expenditures:

Current:

General government 4, 4,295,286 697,142 4,267,663 3,563,834 Public safety 6,225,860 5,759,423 5,693,502 5,507,510
Public works 1,502,128 1,461,190 1,485,991 1,559,430
Recreation 1,219,626 1,251,784 1,210,297 1,103,534
Community development 980,707 979,352 855,273 768,455
Capital outlay 4,128,185 2,163,447 2,127,380 1,392,162
Debt service:

Principal 117,005 131,033 - -
Interest 10,660 6,201 - -
Total expenditures 18,881,313 16,047,716 15,640,106 13,894,925 Excess (deficiency) of revenues
over (under) expenditures (477,971) 1,560,493 990,037 1,937,307 Other financing sources (uses):

Proceeds from debt issuance 349,301
Transfers in 2,182,900 1,216,719 1,461,010 1,059,400
Transfers out (1,400,000) (429,372) (419,935) (400,000) Total other financing sources (uses) 782,900 1,136,648 1,041,075 659,400 Net change in fund balances 304,929 $ 2,697,141 $ 2,031,112 $ 2,596,707 $ Debt service as a percentage
of noncapital expenditures 0.7% 0.9% 0.0% 0.0%
Source: City of La Palma Finance Department
Fiscal Year

CITY OF LA PALMA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
146

2021 2020 2019 2018 2017 2016
$ 9,265,156 9,877,128 $ 10,013,699 $ 10,105,969 $ 9,019,061 $ 7,771,645 $ 1,687,759 4,242,282 1,704,439 1,580,135 1,870,109 1,019,793 410,233 407,482 366,063 340,730 492,885 373,165
91,382 73,819 83,110 92,271 94,945 148,689
904,257 163,876 737,327 191,762 170,351 346,903
355,616 224,124 495,742 501,869 584,070 607,852
428,492 482,788 453,990 313,674 223,946 221,162
- - - - 55,380 -
368,782 244,078 320,303 439,584 446,264 500,684
13,511,677 15,715,577 14,174,673 13,565,994 12,957,011 10,989,893 3,610,483 3,871,663 3,573,688 6,107,362 5,821,722 2,908,327 5,356,176 5,331,743 5,113,435 4,661,073 4,528,390 4,554,392 1,151,060 1,363,484 1,842,876 1,468,497 1,778,180 1,058,134 971,741 851,738 1,115,168 1,007,642 994,227 1,060,438
693,807 1,298,461 578,632 632,501 699,040 674,607
936,431 3,056,155 346,738 2,274,300 1,545,858 445,185
- - - - - -
- - 126,779 - - -
12,719,698 15,773,244 12,697,316 16,151,375 15,367,417 10,701,083 791,979 (57,667) 1,477,357 (2,585,381) (2,410,406) 288,810 5,659,938 1,696,600 1,009,932 1,490,318 960,022 1,615,182 (2,325,938) (1,050,000) (422,232) (902,618) (372,322) (609,000) 3,334,000 646,600 587,700 587,700 587,700 1,006,182
$ 4,125,979 588,933 $ 2,065,057 $ (1,997,681) $ (1,822,706) $ 1,294,992 $

0.0% 0.0% 1.0% 0.0% 0.0% 0.0%
Fiscal Year
147

CITY OF LA PALMA
Net Taxable Assessed Value of Taxable Property
Last Ten Fiscal Years
Total
Fiscal Secured Public Unsecured Assessed Direct
Year Value Utility Value Value Rate
2016 1,839,351,962 64,949,347 1,904,301,309 0.11949%
2017 1,916,024,438 81,204,198 1,997,228,636 0.11948%
2018 1,974,960,893 70,525,095 2,045,485,988 0.11950%
2019 2,075,873,988 370,260 65,386,582 2,141,630,830 0.12385% 2020 2,152,829,525 370,260 64,706,960 2,217,906,745 0.12369% 2021 2,241,588,642 370,260 55,880,793 2,297,839,695 0.12362% 2022 2,316,211,863 370,260 69,843,345 2,386,425,468 0.12343% 2023 2,427,275,063 333,234 65,079,242 2,492,687,539 0.12344% 2024 2,538,418,455 333,234 81,958,454 2,620,710,143 0.12344% 2025 2,661,717,901 333,234 96,631,104 2,758,682,239 0.12354% Source:

In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

County of Orange Assessor's Office, Combined Tax Roll, as reported in the "HDL 2024-25 ACFR Statistical Reports," Assessed Value of Taxable Property tables. 148

CITY OF LA PALMA
Direct and Overlapping Property Tax Rates
(Per $100 of Assessed Valuation)
Last Ten Fiscal Years
Overlapping Rates (Note 2)
North O.C. Total
Anaheim Buena Fullerton Joint Direct
Union High Park Centralia Cypress High Metropolitan Community and Basic School School School School School Water College Overlapping Total Fiscal Levy District District District District District District District Tax Direct Rate Year (Note 1) Bonds Bonds Bonds Bonds Bonds Bonds Bonds Rates (Note 3) 2016 1.00000 0.04948 0.01628 0.02319 0.02461 0.01232 0.00350 0.03043 1.15981 0.1195% 2017 1.00000 0.04259 0.03570 0.02665 0.02360 0.02819 0.00350 0.02885 1.18908 0.1195% 2018 1.00000 0.02211 0.03455 0.04651 0.03082 0.02994 0.00350 0.02927 1.19670 0.1195% 2019 1.00000 0.04244 0.03034 0.04208 0.02951 0.02901 0.00350 0.02829 1.20517 0.1239% 2020 1.00000 0.03968 0.03593 0.04771 0.02957 0.02779 0.00350 0.02409 1.20827 0.1237% 2021 1.00000 0.03971 0.03396 0.04801 0.03321 0.02856 0.00350 0.03198 1.21893 0.1236% 2022 1.00000 0.03804 0.04206 0.04733 0.03045 0.02599 0.00350 0.02877 1.21614 0.1234% 2023 1.00000 0.03016 0.02907 0.05011 0.03202 0.02589 0.00350 0.02778 1.19853 0.1234% 2024 1.00000 0.03164 0.03605 0.04974 0.03085 0.02442 0.00350 0.01715 1.19335 0.1234% 2025 1.00000 0.03256 0.03198 0.04994 0.02890 0.02451 0.00700 0.01735 1.19224 0.1235% Notes
Source:

Note 1: In 1978, the voters of the State of California passed Proposition 13 which set the property tax rate at a 1% fixed amount.

This 1% is shared by all taxing agencies for which the subject property resides within. In addition to the 1% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. The City receives only a portion of this basic 1% levy.

Note 2: Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.

Note 3: Because basic and overlapping rates vary by tax rate area, individual rates cannot be summed. The Total Direct Rate is the weighted average of all individual direct rates applied by the City.

County of Orange Assessor's Office, Tax Rate Table, as reported in "HDL ACFR Statistical Reports," Direct and Overlapping Property Tax Rates table.
149

CITY OF LA PALMA
Top Ten Property Tax Payers
Current Year and Nine Years Ago
2016
Percentage Percentage
of of
Assessed Net Assessed Net
Property Owner's Name Value Rank AV Value Rank AV
73 LPCP6 Owner LLC 106,240,213 $ 1 3.85%
Casa La Veta Associates 33,531,236 2 1.22%
ADP Inc 27,281,645 3 0.99% 20,543,218 $ 5 1.08%
Falcon SoCal LLC 26,662,846 4 0.97%
JKL La Palma Holdings LLC 25,328,601 5 0.92%
Ray Family Partnership 25,187,507 6 0.91%
Aishan La Palma LLC 24,804,662 7 0.90%
Precision Cutting Tools 15,473,318 8 0.56%
5701 Fresca Drive LLC 15,429,340 9 0.56%
Rexford Industrial 5593 Fresca LLC 15,311,043 10 0.56%
Realty Associates Fund IX 89,625,504 1 4.71%
Kaiser Foundation Health Plan Inc 30,631,057 2 1.61%
Prime Healthcare La Palma LLC 30,496,604 3 1.60%
La Palma Paper 21,496,161 4 1.13%
Bre LQ Properties LLC 20,040,966 6 1.01%
Dexus SoCal LLC 19,213,181 7 1.01%
Huntington-Humboldt 14,634,427 8 0.77%
AL US LaPalma II Senior Hsg 13,639,292 10 0.72%
$ 11.44% 260,320,410 315,250,411 $ 13.64%
2025
150

CITY OF LA PALMA
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Amount
Year Tax Levy Collected (1)
2015 3,609,060 3,609,060
2016 3,756,941 3,756,941
2017 3,533,955 3,533,955
2018 3,642,572 3,642,572
2019 3,798,552 3,798,552
2020 3,922,946 3,922,946
2021 4,070,172 4,070,172
2022 4,209,618 4,209,618
2023 4,481,396 4,481,396
2024 4,657,510 4,657,510
2025 4,892,090 4,892,090

Source: County of Orange Auditor-Controller
The amounts presented before the January 2012 dissolution of the Redevelopment Agency include City property taxes and the Community Development Commissions tax increment. This schedule also includes amounts collected and passed-through to other agencies. (1) Through an agreement with the County of Orange, effective for fiscal years beginning in 1994, the City of La Palma will receive 100% of its property tax levy in the current fiscal year. This is known as being on the "Teeter Plan" for property tax apportionments. 2016 includes the final payment of the triple-flip
151

CITY OF LA PALMA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Bonded
Debt as a
Bonded Percentage
Fiscal Bonded Debt Per Debt Per of Personal
Year Debt Population Capita Capita Income
2015 - 16,057 - - -
2016 - 15,984 - - -
2017 - 15,948 - - -
2018 - 15,820 - - -
2019 - 15,492 - - -
2020 - 15,442 - - -
2021 - 15,332 - - -
2022 - 15,332 - - -
2023 - 15,071 - - -
2024 - 15,110 - - -
Sources: State of California Finance Department (population information), as reported in the "HDL ACFR Statistical Reports", Demographic and Economic Statistics and City of La Palma Finance Department (long-term amortization table, outstanding debt) 152

153

CITY OF LA PALMA
Direct Governmental and Overlapping Bonded Debt
As of June 30, 2025
2024-25 Assessed Valuation: $2,758,682,239
Total Debt City’s Share of
6/30/25 % Applicable (1) Debt 6/30/25
DIRECT DEBT:

Financed Purchase Obligations $ 289,134 100% $ 289,134
SBITAs 101,263 100% 101,263
TOTAL DIRECT DEBT $ 390,397
OVERLAPPING TAX AND ASSESSMENT DEBT:

Metropolitan Water District $ 17,155,000 0.068% $ 11,665 North Orange County Joint Community College District 275,134,676 1.524 4,193,052 Anaheim Union High School District 424,313,955 3.028 12,848,227 Fullerton Joint Union High School District 292,130,000 1.743 5,091,826 Buena Park School District 89,901,366 8.438 7,585,877
Centralia School District 39,351,729 16.513 6,498,151
Cypress School District 29,484,042 7.509 2,213,957
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $38,442,755
OVERLAPPING GENERAL FUND DEBT:

Orange County General Fund Obligations $429,065,000 0.340% $1,458,821 Orange County Board of Education General Fund Obligations 9,120,000 0.340 31,008 North Orange County Regional Occupation Program
Certificates of Participation 6,880,000 1.567 107,810
Anaheim Union High School District Certificates of Participation 26,880,000 3.028 813,926 Fullerton Joint Union High School District Certificates of Participation 36,895,000 1.743 643,080 Cypress School District General Fund Obligations 2,096,000 7.509 157,389 TOTAL OVERLAPPING GENERAL FUND DEBT $3,212,034
TOTAL DIRECT DEBT $390,397
TOTAL OVERLAPPING DEBT $41,654,789
COMBINED TOTAL DEBT $42,045,186 (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, and mortgage revenue bonds. Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2024-25 Assessed Valuation:

Direct Debt ...................................................................................... 0.01% Total Overlapping Tax and Assessment Debt ................................... 1.40% Combined Total Debt ....................................................................... 1.52% Source: California Municipal Statistics, Inc.

CITY OF LA PALMA
Legal Debt Margin Information
Last Ten Fiscal Years
Total
Debt
Debt Applicable Legal
Fiscal Assessed Limit Debt to Debt Debt
Year Value Percentage Limit Limit Margin
2016 1,904,301,309 3.750% 71,411,299 71,411,299
2017 1,997,228,636 3.750% 74,896,074 74,896,074
2018 2,045,485,988 3.750% 76,705,725 76,705,725
2019 2,141,630,830 3.750% 80,311,156 80,311,156
2020 2,217,906,745 3.750% 83,171,503 83,171,503
2021 2,297,839,695 3.750% 86,168,989 86,168,989
2022 2,386,425,468 3.750% 89,490,955 89,490,955
2023 2,492,687,539 3.750% 93,475,783 93,475,783
2024 2,620,710,143 3.750% 98,276,630 98,276,630
2025 2,758,682,239 3.750% 103,450,584 103,450,584
Sources: County of Orange Assessor's Office, Combined Tax Roll, as reported in the "HDL ACFR Statistical Reports," Assessed Value of Taxable Property tables. 154

CITY OF LA PALMA
Demographic and Economic Statistics
Last Ten Calendar Years
City of La Palma City of La Palma
Personal Per Capita City of La Palma
Calendar Income Personal Unemployment
Year Population (In Thousands) Income Rate
2015 16,057 529,385 32,969 3.4%

2016 15,984 546,311 34,178 3.0%

2017 15,948 548,101 34,368 3.3%

2018 15,820 595,442 37,638 2.4%

2019 15,492 627,772 40,522 2.7%
2020 15,442 639,388 41,405 7.8%
2021 15,332 646,793 42,185 3.4%
2022 15,332 654,928 42,716 2.2%
2023 15,071 781,299 51,841 2.5%
2024 15,110 815,650 53,980 2.6%
Sources: "HDL ACFR Statistical Reports," Demographic and Economic Statistics table. 155

2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Function:

Public safety:

Calls for service 14,883 14,626 14,525 15,430 15,418 18,643 21,504 19,471 19,344 15,829 Crime reports 703 782 869 917 828 885 1,104 1,218 1,409 1,337 Arrests 304 285 314 380 329 406 445 379 420 511
Traffic citations 458 643 789 902 470 955 1,163 636 922 803 Parking citations 1,264 572 1,645 1,668 1,380 1,026 1,127 1,480 1,506 2,434 Other citations - - - - - - - - - -
Public works:*
Traffic signals maintained 21 21 21 21 21 21 21 21 21 21 Infrastructure improvement projects administered 3 8 12 2 2 5 - 6 5 7 Private development plans reviewed 2 2 6 4 4 10 - 5 5 - Graffiti removal (square feet) 195 999 344 239 253 237 150 268 453 53 Street sweeping (miles/week) 62 62 62 62 62 62 62 62 62 59 Trees pruned * 336 579 419 656 99 314 510 565 633 406
Recreation:

Recreation classes 1,069 419 623 720 441 1,098 1,171 1,126 1,100 629 Recreation classes enrollment 1,189 2,126 3,170 2,738 448 2,308 4,205 4,254 3,600 4,237 Indoor facility rentals 121 125 98 50 - 109 146 72 107 92 Indoor facility rental hours 439 521 454 223 - 521 700 628 424 413 Outdoor facility rentals 441 347 322 412 62 225 514 192 251 376 Outdoor facility rental hours 1,183 989 966 1,165 133 677 2,260 972 741 971 Community Development:

Planning entitlements processed 38 6 183 201 24 24 30 50 24 164 Building permits issued 365 281 443 483 456 405 489 406 485 497 Estimated valuation of building permits (millions) $12.300 $13.571 $8.996 $7.368 $7.387 $11.432 $6.546 $4.200 $17.029 $7.500 Code enforcement cases 138 224 137 76 111 117 424 430 533 174 Water:

Average monthly consumption per
household (cubic feet)** 1,625 1,365 1,679 1,623 1,735 1,665 987 992 1,862 908 Customer accounts 4,371 4,473 4,370 4,369 4,368 4,371 4,369 4,138 4,133 4,337 Water samples taken 3,484 620 2,596 1,938 2,265 2,446 2,125 3,060 2,299 2,924 ** State-mandated Stage 2 drought restrictions for 2016. Residential Consumption based on average 4,150 single family residential accounts.

CITY OF LA PALMA
Last Ten Fiscal Years
Operating Indicators by Function
Fiscal Year
156

CITY OF LA PALMA
Capital Assets Statistics by Function
Last Ten Fiscal Years
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Function:

Public safety:

Police stations 1 1 1 1 1 1 1 1 1 1
Public works:

Streets (miles) 31 31 31 31 31 31 31 31 31 31
Streetlights 972 972 972 972 972 972 972 972 972 972
Traffic signals 21 18.5 18.5 18.5 18.5 18.5 18.5 18.5 18.5 18.5 Recreation:

Community centers 1 1 1 1 1 1 1 1 1 1
Parks 2 2 2 2 2 2 2 2 2 2
Water:

Water mains (miles) 38 38 38 38 38 38 38 38 38 38
Maximum daily capacity (millions of gallons) 2.65 2.65 2.65 2.65 2.65 2.65 2.65 2.65 2.65 2.65 Fire hydrants 343 343 343 343 343 343 343 343 343 343
Water wells 2 2 2 2 2 2 2 2 2 2
Storage capacity (millions of gallons) 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 Reservoirs 2 2 2 2 2 2 2 2 2 2
Wastewater:

Sanitary sewers (miles) 28 28 28 28 28 28 28 28 28 28
Storm drains (miles) 5 5 5 5 5 5 5 5 5 5
Manholes 631 631 631 631 631 631 631 631 631 631
Source: City of La Palma, respective Departments
Fiscal Year
157

CITY OF LA PALMA
Principal Employers
Current Year and Nine Years Ago
2025 2016
Percentage of Percentage of
Number of Total Number of Total
Employer Employees Employment Employees Employment
ADP Inc. 527 7.76% 600 8.21%
La Palma Intercommunity Community Hospital 435 6.41% 360 4.93% Applecare Medical Group 278 4.09%
Arcadia 209 3.08% 150 2.05%
Convergint Technologies LLC 163 2.40%
Beacon Day School 160 2.36%
Kaiser Healthplan 154 2.27% 155 2.12%
Walmart Stores 95 1.40%
Quiet Logistics 87 1.28%
Ivy Park at La Palma 79 1.16%
Lotte Chemical California, Inc
C J Foods USA 50 0.68%
C and D Zodiac 415 5.68%
Performance Machine Inc. 178 2.44%
Anahiem Union High School District 157 2.15%
Unisource Worlwide 152 2.08%
2187 32.20%
Source: City of La Palma Business Licenses
158

CITY OF LA PALMA
Full-time Budgeted Positions by Function
Last Ten Fiscal Years
Fiscal General Government/ Public Public Community
Year Administrative Services Safety Works Recreation Development Water Total 2016 7.60 27.00 4.15 4.25 3.00 6.03 52.03
2017 8.00 27.00 2.40 4.30 3.00 7.30 52.00
2018 6.55 28.00 4.30 3.50 3.23 7.43 53.01
2019 8.00 29.00 3.92 3.50 2.00 6.58 53.00
2020 6.65 29.00 4.30 3.50 2.00 7.43 52.88
2021 8.00 29.00 3.60 4.00 2.00 6.40 53.00
2022 8.00 29.00 3.60 4.00 2.00 6.40 53.00
2023 8.00 29.00 3.60 4.00 2.00 6.40 53.00
2024 8.00 29.00 3.60 4.00 2.00 6.40 53.00
2025 8.00 29.00 3.60 4.00 2.00 6.40 53.00
Source: City of La Palma Finance Department
159

Agenda Item No. 7 January 13, 2026 | 1
City of La Palma
Agenda Item No. 7
MEETING DATE: January 13, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Joseph Cisneros, Deputy City Manager
AGENDA TITLE: First Quarter Operating Report, Fiscal Year 2025-26 RECOMMENDED ACTION:

Receive and file the First Quarter Operating Report, Fiscal Year 2025-26.

BACKGROUND:

Staff is presenting a report to Council and the public on the state of the City’s finances. This report provides the following information:

1. A snapshot of the City’s spendable fund balances at September 30, 2025, as well as the fiscal year-to-date change in spendable fund balances.

2. A review of the General Fund’s revenue and expenditures through the first quarter of the fiscal year (25% of the year as of September 30, 2025).

For the quarterly report, no quarter-end accruals are recorded. Except at fiscal year-end, when accruals are recorded in accordance with accounting standards, revenue is essentially reported when cash is received, and expenditures are essentially reported when cash payments are made. Many revenue and expenditure transactions do not occur at uniform times or at equal intervals throughout the year. Consequently, although transactions through the first quarter represent 25% of the fiscal year, not all line items will be at 25% of the budget as of the end of the quarter.

Making sense of the information presented herein requires consideration of the cash flow factors of major revenues and expenditures. For instance, while expenditure outflows for normal operations tend to be relatively even, the cash flow timing of capital expenditures and major revenues, such as property taxes, is not distributed as evenly.

SUMMARY:

The intent of this financial summary is to provide an understanding of the changes in spendable fund balance. Spendable fund balance is calculated as cash, investments, and other current assets, less current liabilities. Attached for review are the following summary schedules through the end of the quarter:

Agenda Item No. 7 January 13, 2026 | 2
• Schedule of General Fund Revenues by Type
• Schedule of General Fund Expenditures by Department
• Schedule of General Fund Expenditures by Category
• Schedule of Spendable Fund Balances by Fund
The City’s overall spendable fund balance has decreased by $3.5 million from the beginning of the fiscal year from $44.3 million to $40.8 million at September 30, 2025. As explained further in the following section, this reduction in spendable fund balance is consistently reported in the first quarter of each fiscal year and is essentially a result of cash flow timing for major revenue sources and a few expenditures. This net decrease is accounted for as follows:
• General Fund decreased by $2.9 million
• Capital Project Funds increased by $0.3 million
• Water Funds decreased by $0.4 million
• Sewer Funds increased by $0.1 million
• Internal Service Funds decreased by $0.6 million
Special revenue funds had only a nominal change. The remainder of the financial review will discuss the General Fund’s revenues and expenditures, and then report on the activity in the other funds.

General Fund
As shown in the attached charts, General Fund revenues totaled $1.7 million (12% of the budget) while expenditures totaled $4.7 million (31% of the budget) through September 30, 2025. This results in a net shortfall of revenues under expenditures of $3.0 million, which accounts for the majority of the reduction in spendable fund balance. Similarly, the prior year had a net revenue shortfall of $2.6 million, with revenues totaling $1.7 million (11% of the year’s total revenue) and expenditures totaling $4.3 million (32% of the year’s expenditures).

Revenues
Total General Fund revenues are at 12% of the budget through the end of the first quarter. This is not unusual since the largest component of General Fund revenues is property taxes, and the first major distribution of property tax receipts is scheduled during the second quarter. The following is a discussion of the four largest General Fund revenue sources: property tax, sales tax, transaction and use tax, and utility users tax. Together, these four revenues account for approximately 70% of the General Fund’s revenue budget.
• Property Tax: The General Fund’s largest revenue source, property tax, has $62,000 of revenue recorded through September 30 (1% of the $5.1 million budget). This is similar to the prior year's receipt pattern – by the end of the first quarter of FY 2024-25, the City had received $58,000. The property tax line item includes secured and unsecured property taxes (budgeted at $3.1 million) as well as the property tax in lieu of vehicle license fees (budgeted at $2.0 million). Secured property tax payments are distributed in four main payments with estimated distributions of 40% in November/December during the second quarter, 10% in January/March during the third quarter, 40% in April/May during the fourth quarter, and the final cleanup distribution at the end of the fiscal year. Property tax payments in lieu of vehicle license fees are received in two installments: 50% is distributed in January, during the third quarter, and the remaining 50% is distributed in May, during the fourth quarter. • Sales Tax: The third largest budgeted revenue source, sales tax, has $183,000 recorded through September 30 (10% of the $1.9 million budget). Sales tax receipts always lag by two to three months, and consequently, much of the actual sales tax payments received during

Agenda Item No. 7 January 13, 2026 | 3
the quarter were recorded as prior year revenue. Current year revenues are slightly lower than at the end of the prior year’s first quarter, where the revenue recorded was $206,000, which was 9% of the total fiscal year’s revenue.
• Transaction & Use Tax: The transaction and use tax is the second largest budgeted revenue source. There is revenue of $147,000 recorded through September 30 (7% of the $2.2 million budget). These receipts follow the same payment track as sales tax. Receipts lag by two to three months, and much of the transaction and use tax payments received during this first quarter were recorded as prior year revenue. Current year revenues are lower than in the prior year, where the revenue recorded through the end of the first quarter was $176,000, which was 8% of the total fiscal year’s revenue.
• Utility Users Tax: The fourth largest budgeted revenue source is the utility users tax. Payments received through September 30 total 18% of the budget at $214,000. This is lower than the $263,000 revenue that was reported through the first quarter of the prior year, which was 21% of the total fiscal year’s revenue.

Other notable revenues are as follows:
• Residual Property Tax: This represents money distributed to the City from the County as a result of the State’s dissolution of redevelopment agencies in 2011. Minimal revenue has been recorded through September 30. The main distributions typically occur in December and June each year.
• Transient Occupancy Tax (or Hotel Tax): Only a nominal amount of revenue has been recorded through September 30 for individual, private rentals. This payment is received on a quarterly basis in the month following the quarter’s end, and the majority of the payments for the first quarter are received during the second quarter each year. • Licenses & Permits: Through September 30, $233,000 has been collected, which is 51% of the budget. The City collects approximately 80% of its business license revenue during the first half of the fiscal year, accounting for the proportionately high actual versus budgeted percentage in this category.
• Intergovernmental: Through September 30, $26,000 has been received, which is 85% of the budget. This line item is proportionately high through the first quarter due to receiving the annual remittance of excess vehicle license fees earlier in the fiscal year than in the past. • Use of Money & Property: Total revenue recorded through September 30, is $370,000 (63% of the $584,200 budget). This category is comprised of the senior housing lease, miscellaneous rental income, and investment income. Most of the first quarter’s revenue is from the $225,000 annual payment received on the senior housing lease. Miscellaneous rental income totals $37,000, and investment income totals $108,000 through September 30.

Until investments are sold, any difference between market and book value is an unrealized gain or loss; only at year-end are the unrealized gains or losses recorded as part of interest revenue. At June 30, 2025, the City recorded an unrealized gain of $295,000, a net change of $463,000 from the unrealized loss of $168,000 at June 30, 2024. At September 30, 2025, the unrecorded, unrealized gain on investments for the actively managed investment portfolio was $317,000.

Expenditures
The General Fund’s expenditures total $4.7 million through September 30, 2025 (31% of the $14.9 million budget). In comparison, the prior year’s expenditures totaled $4.3 million (32% of the $13.4 million annual expenditures) through the end of the first quarter.

The following is a general discussion of each General Fund department:

Agenda Item No. 7 January 13, 2026 | 4
• The Management Services Department is comprised of the divisions for City Council, City Manager, Legal Services, and City Clerk. The budget for this department totals $1.3 million, and expenditures through the first quarter total $188,000, 14% of the budget. In comparison, the prior year’s first-quarter expenditures totaled $197,000, which were 17% of the year’s total expenditures.
• The Administrative Services Department is comprised of the divisions for Administration, Community Promotions, Fiscal Services, Human Resources, Information Technology, and Communications. The budget for this department totals $4.1 million, and expenditures through the first quarter total $2.6 million. Expenditures are at 62% of the budget, which is similar to the prior year’s first-quarter expenditures of $2.3 million, which were 64% of the year’s total expenditures. The costs are proportionately high through the end of the first quarter due to making the required annual payment for the City’s unfunded pension obligation early in the year.
• The Police Department has an expenditure budget of $6.3 million. As of September 30, expenditures totaled $1.3 million, which is 20% of the budget. In comparison, the prior year’s first-quarter expenditures totaled $1.2 million, which were 20% of the year’s total expenditures. • The Community Services & Public Works Department covers a wide range of services that are provided to the citizens, including Health & Wellness, Recreation Facility Operations, Special Events, Youth and Family Services, Citywide Maintenance, Engineering, Parks & Medians, and Street Maintenance divisions. This department has a budget of $2.6 million, and expenditures through the first quarter total $492,000, which is 19% of the budget. In comparison, the prior year’s first-quarter expenditures totaled $469,000, which were 20% of the year’s total expenditures.
• The Community Development Department accounts for the Building and Safety, Code Enforcement, and Planning divisions. This department has a budget of $586,000, and expenditures through the first quarter total $142,000, which is 24% of the budget. In comparison, the prior year’s first-quarter expenditures of $120,000 were 22% of the year’s total expenditures.

Special Revenue Funds
The Special Revenue Funds consist of funds with revenue sources that are restricted by outside parties to specific types of expenditures. The revenues consist of remittances of state gas taxes, County Measure M taxes, grants, South Coast Air Quality funding, park development fees, housingrelated sources, and other similar remittances.

The spendable fund balance increased by a net of $20,000 mainly due to payments received from state and county street-related funding sources in advance of work being done. These increases are offset by pending reimbursement of law enforcement grant expenditures and the annual housing lease payment made early in the year.

Capital Outlay Reserve Fund
The City’s Capital Improvement Program is for multi-year projects that improve City facilities, buildings, grounds, streets, parks, and roads. The Capital Outlay Reserve Fund accumulates monies for funding of projects that are not able to be funded by other sources such as gas tax, Measure M, RMRA, or park development funds. Through the end of the first quarter, the City has charged $102,000 to capital projects, with the majority being spent on median rehabilitation. Expenditures for capital projects are budgeted to be $2.1 million for the year. Increases to spendable fund balance offset these expenditures and are mainly due to receiving a payment on the long-term advance made to other funds. The spendable fund balance increased by a net of $349,000 at the end of the first quarter.

Agenda Item No. 7 January 13, 2026 | 5
Water & Sewer Funds
The Water Fund began the year with a spendable fund balance of $3.5 million, which has been reduced by $397,000 to $3.1 million at September 30. Due to the timing of recording revenues and expenses, revenues lag by one to two months during the year. The water fund’s revenues are at 4% of the budget while expenditures are at 10% of the budget through September 30, 2025.

Consequently, the spendable fund balance has decreased by $397,000 during the first quarter.

The Sewer Fund had an increase of $75,000 in spendable fund balance, with an ending spendable fund balance of $4.9 million at September 30, 2025. The sewer fund follows the same pattern as the Water Fund for the timing of recording revenues and expenses. The sewer fund’s revenues are at 9% of the budget while expenditures are at 5% of the budget through September 30, 2025. Consequently, the spendable fund balance has increased nominally during the first quarter.

Internal Service Funds
The Internal Service Funds began the year with a spendable fund balance of $5.1 million, which decreased to $4.5 million at September 30, 2025. The majority of the activity in the Internal Service Funds occurs in the Risk Management/Insurance Fund, and the reduction in the spendable fund balance is mainly due to the annual insurance payments for workers’ compensation, property, and general liability coverage which are due at the beginning of the fiscal year.

FISCAL IMPACT:

This is a receive and file report which provides a summary of the year’s fiscal activity through the end of the first fiscal quarter.

ATTACHMENTS:

1. General Fund Revenues by Type

2. General Fund Expenditures by Department

3. General Fund Expenditures by Category

4. Spendable Fund Balance by Fund

FIRST QUARTER FINANCIAL REPORT, FISCAL YEAR 2025-26

GENERAL FUND REVENUES BY TYPE
QUARTER ENDING SEPTEMBER 30, 2025

FY 2025-26 FY 2024-25 Q1 Variance
Year-to-Date Prior Year Prior YTD Q1 Actual FY 2025-26
Actual through Q1 Actual Actual Actual through as a % of to FY 2024-25 Adopted Amended 9/30/2025 as a % of Annual 9/30/2024 Annual Increase / Revenue Type Budget Budget (25% of FY) Budget Revenue (25% of FY) Revenue <Decrease> Property Tax $ 5,095,000 $ 5,095,000 $ 62,200 1% $ 4,966,529 $ 58,387 1% $ 3,813 Sales Tax 1,921,000 1,921,000 182,722 10% 2,176,213 205,654 9% (22,932) Transaction & Use Tax 2,216,200 2,216,200 147,462 7% 2,248,514 175,632 8% (28,170) Utility Users Tax 1,160,000 1,160,000 213,604 18% 1,281,102 262,896 21% (49,292) Residual Property Tax 352,000 352,000 85 0% 323,731 31 0% 54 Franchise Fees 465,000 465,000 29,213 6% 483,644 26,888 6% 2,325 Transient Occupancy Tax 640,000 640,000 3,715 1% 673,963 - 0% 3,715 Licenses and Permits 452,900 452,900 232,653 51% 568,881 202,873 36% 29,780 Intergovernmental 31,000 31,000 26,229 85% 40,200 1,671 4% 24,558 Charges for Services 553,100 553,100 149,582 27% 600,668 145,959 24% 3,623 Fines and Forfeitures (Note 2) 100,100 100,100 8,180 8% 75,407 10,159 13% (1,979) Use of Money and Property (Note 1) 584,200 584,200 370,022 63% 1,354,675 365,347 27% 4,675 Other Revenue 388,800 388,800 90,926 23% 308,135 68,095 22% 22,831 Interfund Charges 783,000 783,000 195,725 25% 782,900 195,725 25% - Total Revenues $ 14,742,300 $ 14,742,300 $ 1,712,318 12% $ 15,884,562 $ 1,719,317 11% $ (6,999) Note 1: The City typically holds investments rather than realizing gains or losses by selling before maturity; at year-end, the unrealized gain or loss is recorded against interest revenue. For fiscal year 2024-25, the City recorded an unrealized gain of $294,698, a net change of $462,652 from the unrealized loss at 6/30/24 of $167,954. At September 30, 2025, the unrealized gain on investments for the actively managed investment portfolio was $316,999.

FIRST QUARTER FINANCIAL REPORT, FISCAL YEAR 2025-26

GENERAL FUND EXPENDITURES BY DEPARTMENT
QUARTER ENDING SEPTEMBER 30, 2025
FY 2025-26 FY 2024-25 Q1 Variance
Year-to-Date Q1 Actual Prior Year Prior YTD Q1 Actual FY 2025-26 Actual through as a % of Actual Actual through as a % of to FY 2024-25 Adopted Amended 9/30/2025 Amended Annual 9/30/2024 Annual Increase / Department Budget Budget (25% of FY) Budget Expenditures (25% of FY) Expenditures <Decrease> General Government $ 1,297,474 $ 1,297,474 $ 187,644 14% $ 1,144,994 $ 197,365 17% $ (9,721) Administrative Services 4,116,615 4,116,615 2,572,867 62% 3,679,814 2,347,491 64% 225,376 Police 6,252,328 6,252,328 1,278,086 20% 5,734,644 1,154,048 20% 124,038 Community Services 2,611,471 2,611,471 492,459 19% 2,315,208 468,878 20% 23,581 Community Development 586,476 586,476 142,033 24% 546,924 119,826 22% 22,207 Total $ 14,864,364 $ 14,864,364 $ 4,673,089 31% $ 13,421,584 $ 4,287,608 32% $ 385,481

FIRST QUARTER FINANCIAL REPORT, FISCAL YEAR 2025-26

GENERAL FUND EXPENDITURES BY CATEGORY
QUARTER ENDING SEPTEMBER 30, 2025
FY 2024-25 Q1 Variance
Year-to-Date Q1 Actual Prior Year Prior YTD Q1 Actual FY 2025-26 Actual through as a % of Actual Actual through as a % of to FY 2024-25 Adopted Amended 9/30/2025 Amended Annual 9/30/2024 Annual Increase / Expenditure Type Budget Budget (25% of FY) Budget Expenditures (25% of FY) Expenditures <Decrease> Personnel Services $ 9,754,686 $ 9,754,686 $ 3,650,060 37% $ 8,656,015 $ 3,410,369 39% $ 239,691 Maintenance and Operations 5,098,678 5,098,678 1,023,029 20% 4,689,215 876,275 19% 146,754 Capital Outlay/Improvements 11,000 11,000 - 0% 76,354 964 1% (964) Total $ 14,864,364 $ 14,864,364 $ 4,673,089 31% $ 13,421,584 $ 4,287,608 32% $ 385,481 FY 2025-26

FIRST QUARTER FINANCIAL REPORT, FISCAL YEAR 2025-26

SPENDABLE FUND BALANCE - FISCAL YEAR CHANGE
THROUGH THE QUARTER ENDING SEPTEMBER 30, 2025
FY Change
Balance Balance through
Fund # Fund Title 6/30/2025 9/30/2025 9/30/2025
1 General Fund $ 4,676,902 $ 1,716,132 $ (2,960,770)
3 Emergency Reserve Fund 10,067,700 10,067,700 -
5 Economic Development Fund 186,282 186,282 -
17 General Fund Budget Reserves 4,761,525 4,791,069 29,544 Subtotal General Funds 19,692,409 16,761,183 (2,931,226) 10 Road Maintenance & Rehabilitation Account (RMRA) $ 1,443,009 $ 1,486,436 43,427 11 Streets Fund 289,890 319,445 29,555
12 Measure M2 236,282 297,670 61,388
15 Air Quality Fund 309,177 311,073 1,896
16 PEG Fund 429,840 432,499 2,659
20 Asset Seizure Fund 24,740 21,528 (3,212)
21 Public Safety Augmentation Fund 408,099 396,528 (11,571) 22 Supplemental Law Enforcement Fund 400,957 381,675 (19,282) 23 SVC Authority for Abandoned Vehicles 30,562 30,752 190 24 BSCC Local Law Enforcement Grant 53,894 54,228 334
25 Community Foundation Public Safety Grant 52,904 20,659 (32,245) 33 Park Development Fund 5 5 -
38 SA Housing Entity Fund 1,809,089 1,755,589 (53,500)
Subtotal Special Revenue Funds 5,488,448 5,508,087 19,639 35 Capital Outlay Reserve Fund 3,210,720 3,129,218 (81,502) 37 Civic Center Rehabilitation Reserve Fund 2,551,221 2,981,314 430,093 Subtotal Capital Projects Funds 5,761,941 6,110,532 348,591 50 Water Fund 725,957 243,166 (482,791)
55 Water Capital reserve Fund 2,801,443 2,887,230 85,787 Subtotal Water Related Funds 3,527,400 3,130,396 (397,004) 52 Sewer Fund 2,416,196 2,412,683 (3,513)
56 Sewer Capital Reserve Fund 2,356,422 2,439,426 83,004 Subtotal Sewer Related Funds 4,772,618 4,852,109 79,491 60 Risk Management/Insurance 1,283,816 551,858 (731,958) 61 Employee Benefits Fund 341,856 343,977 2,121
62 Building Maintenance & Replacement Fund 60,399 60,774 375 63 Vehicle Replacement Fund 2,170,387 2,245,833 75,446
64 Technology Replacement Fund 1,236,310 1,272,040 35,730 Subtotal Internal Service Funds Funds 5,092,768 4,474,482 (618,286) Total All Funds $ 44,335,584 $ 40,836,789 $ (3,498,795) Note: Spendable Fund Balance is defined as cash and current assets less current liabilities.

Agenda Item No. 8 January 13, 2026 | 1
City of La Palma
Agenda Item No. 8
MEETING DATE: January 13, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Joseph Cisneros, Deputy City Manager
AGENDA TITLE: Resolution Approving a Side Letter Between the City and La Palma General Employees Association
RECOMMENDED ACTION:

Adopt a Resolution amending the Memorandum of Understanding for the La Palma General Employees Association and authorize the City Manager, or designee, to sign the Side Letter on behalf of the City.

SUMMARY:

In October 2024, the City Council adopted a resolution amending the Memorandum of Understanding with the La Palma General Employees Association (LPGEA) to add a full-time Custodian position.

Prior to this change, the City contracted out janitorial and custodial services. The shift to an in-house custodian was based on the expectation that the City would receive increased custodial coverage and more flexible service hours at a comparable or lower cost than an external contract, thereby improving service levels and operational efficiency.

In February 2025, the City hired a Custodian. In October 2025, the Custodian resigned to pursue other employment opportunities. During this period (Feb–Oct 2025), several challenges emerged with the Custodian position and workload, including issues related to scheduling, workload management, timeliness of cleaning, and other logistical issues. As a result, LPGEA has requested that the City eliminate the full-time Custodian position and return to contracted janitorial services to address the operational challenges experienced with the in-house position.

Per the request of the LPGEA, the attached resolution formally documents the elimination of the custodian position and updates the LPGEA MOU to reflect this change. Upon approval, the City will issue a request for proposals to establish a multiple-year agreement for janitorial services.

FISCAL IMPACT:

The total annual cost of the custodian position was approximately $80,000. A multi-year agreement for contracted janitorial services is expected to be comparable in annual costs and will be incorporated

Agenda Item No. 8 January 13, 2026 | 2
into the Fiscal Year 2025–26 budget through a mid-year budget adjustment at the March 2026 City Council meeting, with ongoing annual costs included in future budget years.

ATTACHMENTS:

1. Resolution

Resolution No. 2026-XX

430221.1
RESOLUTION NO. 2026-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA PALMA AMENDING THE JULY 1, 2025 – JUNE 30, 2028

MEMORANDUM OF UNDERSTANDING BETWEEN LA

PALMA AND THE LA PALMA GENERAL EMPLOYEES

ASSOCIATION
WHEREAS, the City and the La Palma General Employees Association (LPGEA) entered into a Memorandum of Understanding effective July 1, 2025, through June 30, 2028 (the “MOU”), and
WHEREAS, the City of La Palma and the LPGEA have met and conferred in good faith and have come to agreement that the LPGEA will no longer represent the “Custodian” classification, and, accordingly, that the “Custodian” classification and its corresponding salary schedule should be removed from the MOU.

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

SECTION 1. The City Council hereby approves, and authorizes the City Manager or designee to execute, the Side Letter of Agreement between the City of La Palma and the General Employees Association as set forth in Exhibit “A.” SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.

SECTION 3. This Resolution shall take effect upon adoption.

APPROVED AND ADOPTED by the City Council of the City of La Palma at a regular meeting held on the 13th day of January 2026.
____________________________________
Nitesh Patel
Mayor
ATTEST:
_________________________________
Norma I. Alley, MMC
City Clerk
Docusign Envelope ID: 7B4D1C3A-DB4F-4474-A45D-1A3A165F1FDB

Resolution No. 2026-XX

430221.1

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS.

CITY OF LA PALMA )
I, NORMA I. ALLEY, 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 13th day of January 2026, and that it was so adopted by called vote as follows:

AYES:

NOES:
_________________________________
Norma I. Alley, MMC
City Clerk
Docusign Envelope ID: 7B4D1C3A-DB4F-4474-A45D-1A3A165F1FDB

430221.1 Page 3 of 3
Attachment A

SIDE LETTER AGREEMENT

CITY OF LA PALMA
AND

LA PALMA GENERAL EMPLOYEES ASSOCIATION
WHEREAS, the City and the La Palma General Employees Association (“LPGEA”) entered into a Memorandum of Understanding effective July 1, 2025, through June 30, 2028 (the "MOU"); and
WHEREAS, the City and the LPGEA have agreed that the LPGEA will no longer represent the “Custodian” classification, and, accordingly, the parties wish to amend certain provisions of the MOU to remove the “Custodian” classification and its corresponding salary schedule from the MOU.

NOW, THEREFORE, the LPGEA and the City agree as follows:

1. ARTICLE II (RECOGNITION) of the LPGEA MOU is hereby amended to remove reference to the “Custodian” classification.

2. Attachments A, B, and C of the LPGEA MOU are amended to remove reference to the “Custodian” classification.

3. LPGEA will no longer represent the “Custodian” classification.

4. All other terms and conditions of the MOU not modified herein shall remain in full force and effect throughout the term of the MOU.

LA PALMA GENERAL CITY OF LA PALMA

EMPLOYEES ASSOCIATION
________________________ _________________________
Jesus Fernandez, President Peter L. Kim, City Manager
Dated:__________________ Dated:___________________
Docusign Envelope ID: 7B4D1C3A-DB4F-4474-A45D-1A3A165F1FDB January 5, 2026

Agenda Item No. 9 January 13, 2026 | 1
City of La Palma
Agenda Item No. 9
MEETING DATE: January 13, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Joseph Cisneros, Deputy City Manager
AGENDA TITLE: Resolution Approving a Side Letter Between the City and La Palma Police Association
RECOMMENDED ACTION:

Adopt a Resolution approving a Side Letter Amendment with the La Palma Police Association regarding hiring bonuses and authorize the City Manager or designee to sign the Side Letter on behalf of the City.

SUMMARY:

Prior to the Memorandum of Understanding (MOU) effective July 1, 2025, through June 30, 2028, the City and the La Palma Police Association (LPPA) implemented an employee attraction and retention bonus program for Police Officers and Police Dispatchers. The program concluded on June 30, 2025, and was not incorporated into the current MOU. As a result, the LPPA requested reinstatement and formal inclusion of the bonus program to further support the Department’s recruitment efforts.

Staff has also found that many police departments in the region continue to offer hiring incentives to attract both entry-level and lateral candidates. Additionally, through the City’s interactions with nonsponsored recruits enrolled in local police academies, candidates are often drawn to agencies offering higher salaries, expanded special assignments, and hiring bonuses. Maintaining a competitive hiring incentive allows the La Palma Police Department to effectively compete for qualified candidates.

Timely filling of vacancies is critical to departmental operations, as prolonged vacancies lead to increased overtime, employee burnout, and diminished morale.

As a result, staff recommends the following programs will be retroactively incorporated into the MOU, via a Side Letter with the LPPA, by adding a new category of Special Compensation under Article III, Section 5 (P), effective July 1, 2025, through June 30, 2028:

Police Dispatcher
The City will pay a hiring bonus of $10,000 to a new Police Dispatcher hired between July 1, 2025, and June 30, 2028. The bonus will be paid in three installments:

1. $4,000 on the first paycheck following the dispatcher’s hire;

2. $3,000 upon successful completion of probation; and

Agenda Item No. 9 January 13, 2026 | 2

3. $3,000 after forty-two (42) months of continuous full-time employment as a Police Dispatcher.

Police Officer
The City will pay a hiring bonus of $13,000 to a new Police Officer hired between July 1, 2025, and June 30, 2028. The bonus will be paid in three installments:

1. $5,000 on the first paycheck following the officer’s hire;

2. $4,000 upon successful completion of probation; and

3. $4,000 after forty-two (42) months of continuous full-time employment as a full-time sworn Police Officer.

The City will apply all required federal and state tax deductions and report all payments made under this Agreement in accordance with applicable law.

A Side Letter with the La Palma Police Association memorializing this hiring bonus program is attached for City Council approval.

FISCAL IMPACT:

Because these bonuses apply only to new hires and are directly associated with existing vacancies, staff anticipates that a significant portion of the cost will be offset by salary savings during vacancy periods. In addition, the bonus payments are distributed over a forty-two (42) month period, which limits the fiscal impact in any single fiscal year. Following approval, staff will incorporate these changes into the Fiscal Year 2025–26 Mid-Year Budget Adjustment for consideration at the March 2026 City Council meeting, with anticipated costs included in future budget years.

ATTACHMENTS:

1. Side Letter

2. Resolution

SIDE LETTER AGREEMENT

CITY OF LA PALMA
AND

LA PALMA POLICE ASSOCIATION
WHEREAS, the City and the La Palma Police Association (“LPPA”) entered into a Memorandum of Understanding effective July 1, 2025, through June 30, 2028 (the "MOU"), and WHEREAS, the City and the LPPA wish to amend certain provisions of the MOU to implement a new employee attraction and retention bonus program.

NOW, THEREFORE, the LPPA and the City agree as follows:

1. Article III, Section 5, subd. (P), is hereby added to the MOU to read as follows:

The City will pay Police Dispatchers, hired between July 1, 2025, and June 30, 2028, and who enter into a Hiring Bonus Payment Agreement with the City upon hire, a hiring bonus of a maximum of $10,000, to be paid in three installments as follows: 1) $4,000 to be paid on the first paycheck following the dispatcher’s hire, 2) $3,000 to be paid on the first paycheck following successful completion of probation, and 3) $3,000 on the first paycheck following forty-two (42) months of continuous employment as a full-time Police Dispatcher. The City will pay Police Officers, hired between July 1, 2025, and June 30, 2028, and who enter into a Hiring Bonus Payment Agreement with the City upon hire, a hiring bonus of a maximum of $13,000, to be paid in three installments as follows: 1) $5,000 to be paid on the first paycheck following the officer’s hire, 2) $4,000 to be paid on the first paycheck following successful completion of probation, and 3) $4,000 on the first paycheck following forty-two (42) months of continuous employment as a full-time sworn Police Officer.

2. The Hiring Bonus Payment Agreement is set forth in Attachment A.

3. All other terms and conditions of the MOU not modified herein shall remain in full force and effect throughout the term of the MOU.

LA PALMA POLICE ASSOCIATION CITY OF LA PALMA
________________________ ___________________________
Joshua Garcia, President Peter L. Kim, City Manager
Dated:__________________ Dated:___________________
Docusign Envelope ID: 5BCAFEC2-B7FB-40D1-AD41-80CC16471F60 January 5, 2026

1 Attachment A
City of La Palma
Hiring Bonus Payment Agreement
This Agreement is made on this ____ day of __________ 20____ between the City of La Palma ("City") and ________________________ ("Employee").

WHEREAS, the Employee begins employment for the City in the Police Department ("Department'') as a Police ________________on ____________ __, 20___; WHEREAS, the City has offered the Employee a hiring bonus ("Hiring Bonus") as an incentive to accept employment at the City and remain satisfactorily employed in the Department for at least three and a half years;
WHEREAS, the Employee acknowledges that acceptance of the Hiring Bonus is voluntary and is not a condition of employment with the City;
WHEREAS, the Employee wishes to accept the Hiring Bonus offered by the City.

NOW, THEREFORE, the City and the Employee agree to the following terms:

1. The City shall provide a hiring bonus of a maximum of $10,000 for Police Dispatchers and a maximum of $13,000 for Police Officers. The bonus shall be paid in three installments, as follows:
a. On the first paycheck following the employee’s hire:
i. $4,000 for Police Dispatchers.
ii. $5,000 for Police Officers.
b. On the first paycheck following successful completion of the employee’s probationary period:
i. $3,000 for Police Dispatchers.
ii. $4,000 for Police Officers.
c. On the first paycheck following forty-two (42) months of continuous employment:
i. $3,000 for Police Dispatchers.
ii. $4,000 for Police Officers.

2. The City will apply all required federal and state tax deductions and report all payments made under this Agreement as required by law.

Agreed to and Accepted:

By: ___________________________ By: ___________________________ (Employee) City Manager
Date: __________________________ Date: __________________________ Docusign Envelope ID: 5BCAFEC2-B7FB-40D1-AD41-80CC16471F60

RESOLUTION NO. 2026-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA PALMA, CALIFORNIA, AMENDING THE JULY 1, 2025
– JUNE 30, 2028 MEMORANDUM OF UNDERSTANDING

BETWEEN LA PALMA AND THE LA PALMA POLICE

ASSOCIATION
WHEREAS, the City and the La Palma Police Association (LPPA) entered into a Memorandum of Understanding effective July 1, 2025, through June 30, 2028 (the “MOU”), and
WHEREAS, the City and LPPA have met and conferred in good faith and have agreed on amending certain provisions of the MOU to implement a new employee attraction and retention bonus program, and
NOW, THEREFORE, the City Council of the City of La Palma does resolve as follows:

SECTION 1. The City Council hereby approves, and authorizes the City Manager or designee to execute, the Side Letter of Agreement between the City of La Palma and the La Palma Police Association as set forth in Exhibit “A.” SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.

SECTION 3. This Resolution shall take effect upon adoption.

APPROVED AND ADOPTED by the City Council of the City of La Palma at a regular meeting held on the 13th day of January 2026.
_______________________________
Nitesh Patel
Mayor
ATTEST:
__________________________
Norma I. Alley, MMC
City Clerk

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF LA PALMA )
I, NORMA I. ALLEY, 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 13th day of January 2026, and that it was so adopted by called vote as follows:

AYES:

NOES:
_______________________________
Norma I. Alley, MMC
City Clerk

Agenda Item No. 10 January 13, 2026 | 1
City of La Palma
Agenda Item No. 10
MEETING DATE: January 13, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Joseph Cisneros, Deputy City Manager
AGENDA TITLE: Resolution Amending the Salary for Part-Time Employees RECOMMENDED ACTION:

Adopt a Resolution amending salaries for certain part-time positions.

SUMMARY:

The City Council adopted Resolution No. 2023-43 on December 12, 2023, and Resolution No. 2025- 02 on January 14, 2025, amending salary and benefit provisions for part-time employees. Effective January 1, 2026, California’s minimum wage increased from $16.50 to $16.90 per hour. As a result, certain part-time positions require salary adjustments to comply with state law. The attached resolution updates the salaries for the affected positions to $16.90 per hour.

FISCAL IMPACT:

The change affects two positions encompassing nine part-time employees, and only a minor fiscal impact to the City’s budget is anticipated.

ATTACHMENTS:

1. Resolution

430915.1 Resolution 2026-__

RESOLUTION NO. 2026-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LA PALMA, CALIFORNIA, AMENDING RESOLUTION
2025-02 TO UPDATE THE SALARY SCHEDULE FOR

PART-TIME EMPLOYEES IN COMPLIANCE WITH THE

STATE MINIMUM WAGE INCREASE
WHEREAS, on December 12, 2023, the La Palma City Council adopted Resolution 2023-43 approving of salary and benefits for part-time employees and rescinding Resolution 2012-49; and
WHEREAS, On August 6, 2024, the La Palma City Council adopted Resolution 2024-29 amending salaries for the Per Diem Dispatcher and Reserve Police Officer positions; and
WHEREAS, on January 14, 2025, the La Palma City Council adopted Resolution 2025-02 amending salaries for part-time employees to meet the California's minimum wage increase effective January 1, 2025; and
WHEREAS, effective January 1, 2026, California's minimum wage increased from $16.50 to $16.90 per hour; and
WHEREAS, as a result, certain part-time positions require salary adjustments to meet the new state minimum wage.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of La Palma does hereby:

1. Amend the Fiscal Year 2025/2026 publicly available salary schedule (Attachment A), effective January 1, 2026.

2. Attachment A to Resolution 2023-43 is hereby replaced with Attachment A to this Resolution, effective January 1, 2026.

APPROVED AND ADOPTED by the City Council of La Palma at a regular meeting on the 13th day of January, 2026.
_______________________________
Nitesh Patel
Mayor
ATTEST:
_______________________________
Norma I. Alley, MMC
City Clerk

430915.1 Resolution 2026-__

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS.

CITY OF LA PALMA )
I, NORMA I. ALLEY, 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 13th day of January 2026, and that it was so adopted by called vote as follows:

AYES:

NOES:
_______________________________
Norma I. Alley, MMC
City Clerk

430915.1 Resolution 2026-__

ATTACHMENT A

SALARY SCHEDULE
Title Step A Step B Step C Step D Step E Step F Step G
Intern $16.90
Cashier/Office Aide $16.90 $17.75 $18.63 $19.56 $20.54
Code Enforcement Officer $23.57 $24.74 $25.98 $27.28 $28.65 $30.08 $31.58 Community Liaison Officer $20.89 $21.93 $23.03 $24.18 $25.39 $26.66 Information Technologies Technician $16.90 $17.75 $18.63 $19.56 $20.54 Park Ranger $16.90
Per Diem Dispatcher $29.91 $31.40 $32.97 $34.62 $36.35 $38.17 Police Services Aide $17.00
Recreation Leader $16.90 $17.75 $18.63 $19.56 $20.54
Recreation Specialist $19.61 $20.59 $21.62 $22.70 $23.84 $25.03 $26.28 Reserve Police Officer $29.00
Senior Recreation Leader $17.83 $18.72 $19.66 $20.64 $21.67 Effective January 1, 2026

Agenda Item No. 11 January 13, 2026 | 1
City of La Palma
Agenda Item No. 11
MEETING DATE: January 13, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Alan Rivera, Management Analyst
AGENDA TITLE:

Award of Contract for Professional Services to Gladwell Governmental Services, Inc. for the update of the City’s Records Management Policy and Schedule
RECOMMENDED ACTION:

Authorize the City Manager to execute an agreement with Gladwell Governmental Services, Inc., (GGS) to provide professional consulting services to update the Citywide Records Management Policy and Schedule for an amount not to exceed $13,200.

BACKGROUND:

Records management includes the creation, maintenance, retrieval, retention, preservation, and lawful destruction of all municipal records. A records retention schedule provides staff with clear timelines for managing physical and electronic records and serves as an administrative tool that authorizes record disposal while ensuring compliance with applicable laws and regulations.

In California, records retention for local agencies is governed by state law and administrative regulations. Government Code § 34090 establishes a general minimum two-year retention period for city records, subject to legislative approval and exceptions for legal, audit, or litigation needs.

Government Code §§ 6200–6201 prohibit the unlawful destruction or alteration of records, and the Public Records Act requires records to be retained long enough to respond to public records requests.

The City’s current Records Management Policy and Schedule was last updated and adopted by the City Council on September 15, 2009.

ANALYSIS:

In September 2025, staff solicited proposals from qualified consultants to update the Citywide Records Management Policy and Schedule and received four responses. Following review, staff determined that Gadwell Governmental Services (GGS), Inc. as the most qualified and cost-effective firm to complete the update.

Agenda Item No. 11 January 13, 2026 | 2
Under the proposed agreement, the updated Policy and Schedule are anticipated to be completed and ready for Council review and approval in spring 2026. GGS also offers an optional subscription service ($1,000 per year) to conduct annual reviews and provide ongoing procedural guidance to ensure the Policy remains current.

FISCAL IMPACT:

Funding for the agreement will be included in the Fiscal Year 2025–26 Mid-Year Budget Adjustment for consideration on March 3, 2026, in the amount of $13,200 under Account No. 001-150-6000- 00000. Additionally, future budget years will include subscription funding of $1,000 for the optional annual Policy review and update.

ATTACHMENTS:

1. Professional Services Agreement - Gladwell Governmental Services, Inc.

2. Proposal - Gladwell Governmental Services, Inc.

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AGREEMENT FOR CONSULTANT SERVICES
GLADWELL GOVERNMENTAL SERVICES, INC.

THIS AGREEMENT FOR CONSULTANT SERVICES (hereinafter, the “Agreement”), is entered into as of January 13, 2026, by and between the CITY OF LA PALMA, a municipal corporation (hereinafter, the “City”), and GLADWELL GOVERNMENTAL SERVICES, INC., a corporation (hereinafter, the “Consultant”). The Consultant and the City are hereafter together referred to as the “Parties” and each individually as a “Party.”

RECITALS
A. The City requires the services of, and desires to retain, a consultant to perform the services set forth and described in the Scope of Work attached hereto as Exhibit “A” and incorporated herein by this reference (hereinafter, the “Consultant Services”).

B. By virtue of the Consultant’s expertise, experience, and background, the Consultant is qualified to perform the Consultant Services for and on behalf of the City.

C. The City and the Consultant mutually desire to enter into this Agreement for the provision of the Consultant Services by the Consultant for and on behalf of the City, in accordance with the terms and conditions set forth herein.

EXECUTORY AGREEMENTS
NOW, THEREFORE, in consideration of the facts recited above and the covenants, conditions, and promises contained herein, the City and the Consultant mutually agree as follows:

1. RETENTION AND DUTIES OF CONSULTANT

1.1 Retention of Consultant. The City hereby retains the Consultant, and the Consultant accepts this retention from the City, to perform the Consultant Services as set forth in the Scope of Work attached hereto as Exhibit “A”.

1.2 Time. Time is of the essence for this Agreement. This Agreement shall commence on January 13, 2026, and the Consultant shall perform all Consultant Services, and each component thereof, within a reasonable timeframe.

1.3 Standard of Performance. The Parties mutually acknowledge that the City has retained the Consultant to perform the Consultant Services based upon the special skills, expertise, and experience of the Consultant. Accordingly, in performing the Consultant Services, the Consultant shall use the skill and care that a highly specialized professional with significant expertise in the field, would use under similar circumstances. To the extent that the Consultant retains sub-consultants or subcontractors to perform any portion of any of the Consultant Services, to the extent permitted hereunder, the Consultant has a duty to the City to ensure that the tasks and services performed by such sub-consultants and subcontractors meet the same highly specialized professional level, skill, and expertise expected of the Consultant.

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1.4 Licenses, Permits, Fees, and Approvals. The Consultant shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Consultant Services prior to commencing work. The Consultant and its employees, agents, and sub-consultants or subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Consultant Services. The Consultant shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Consultant’s performance of the Consultant Services, and shall indemnify, defend and hold harmless the City and City Personnel against any such fees, assessments, taxes, penalties or interest levied, assessed, or imposed against the City hereunder.

1.5 Personnel. The Consultant shall at all times allocate sufficient qualified personnel as required to perform the Consultant Services. The Consultant represents that the Consultant Services will be performed by the Consultant or under its direct supervision, and that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable Federal, State and local law to perform such tasks and services. The Consultant shall pay all wages, salaries, and other amounts due to such personnel in connection with their performance of the Consultant Services and as required by law.

1.6 Materials. The Consultant shall equip itself with all necessary goods, materials, equipment and personal property to perform the services specified in this Agreement.

The Consultant shall at all times ensure that all goods, materials, equipment and personal property included within the Consultant Services shall be of good quality, fit for the purpose intended.

1.7 Warranty. By executing this Agreement, the Consultant warrants that the Consultant (i) has thoroughly investigated and considered the Consultant Services to be performed, (ii) has carefully considered how the Consultant Services should be performed, and (iii) fully understands the facilities, difficulties, and restrictions attending performance of the Consultant Services.

1.8 Coordination With City. In the performance of the Consultant Services, the Consultant shall report to and receive instructions from the City Manager of the City or his designee (“Contract Administrator”). Tasks or services other than those specifically described in the Scope of Work shall not be performed by the Consultant or any sub-consultant or subcontractor without the prior written approval of the Contract Administrator pursuant to Section 1.11 herein.

1.9 Subcontracting Prohibited. The Consultant shall not subcontract the performance of any of the Consultant Services without the prior written approval of the Contract Administrator.

1.10 Project Manager. The Consultant agrees that the following person shall be the project manager on behalf of the Consultant under this Agreement, and shall be principally responsible for performing the Consultant Services:

Docusign Envelope ID: 35E7FCC8-E30B-4955-8A27-4C4DB101541A

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DIANE R. GALDWELL, MMC
Gladwell Governmental Services, Inc., President
Notwithstanding the foregoing, the Parties acknowledge that persons other than the abovedesignated project manager of the Consultant may perform tasks or services under this Agreement if the performance of such tasks or services is under the supervision and control of the Consultant’s project manager. The Consultant shall not alter the assignment of the above-designated project manager without the prior written approval of the Contract Administrator.

1.11 Additional Services. If the City changes the scope of the Consultant Services to be performed by the Consultant, or if the Consultant is requested to perform services not specifically described in the Scope of Work (“Additional Services”), the Consultant shall perform such services as are necessary to complete the work, and compensation for the work performed shall be paid by the City in accordance with the Budget and Fee Schedule attached hereto as Exhibit “B” and incorporated herein by this reference, or as otherwise may be agreed in writing by the City and the Consultant. It is expressly understood by the Consultant that the provisions of this Section 1.11 shall not apply to services specifically set forth in the Scope of Work or reasonably contemplated therein. The Consultant hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than the Consultant anticipates and that the Consultant shall not be entitled to additional compensation therefor. Unless contradictory of this Section 1.11, all provisions in this Agreement applicable to the Consultant’s performance of the Consultant Services shall also apply to the Additional Services.

2. COMPENSATION TO CONSULTANT

2.1 Payment by the City. The City shall pay to the Consultant for the performance of the Consultant Services compensation in accordance with the Budget and Fee Schedule attached hereto as Exhibit “B”.

2.2 Invoices. The Consultant shall invoice the City on a monthly basis for all work performed by the Consultant under this Agreement. Invoices shall include billings for all charges, including authorized direct costs incurred by the Consultant during the month covered by the invoice. All charges for labor or professional services shall describe with specificity the services rendered and shall set forth the number of hours worked and hourly rates in accordance with the Budget and Fee Schedule. Within thirty (30) days of receipt of an invoice, and upon determination by the City that the invoice is in order and that the Consultant has performed all requested or required services in a timely and competent manner, the City shall pay such invoice.

2.3 Record of Payment. The Consultant shall maintain records on all services for and charges to the City under this Agreement for a period of not less than twenty-four (24) months, or for any longer period required by law, after the termination of this Agreement, and make such records available for review and audit if requested by the City at any time during the term, or within twenty-four (24) months, or for any longer period required by law, after the termination of this Agreement. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible.

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3. LEGAL RESPONSIBILITIES

3.1 Compliance with Law. The Consultant shall keep fully informed of all Federal and State laws and regional, county, and municipal ordinances and regulations which may in any manner affect those employed by the Consultant or the performance by the Consultant of any tasks or services for or on behalf of the City. The Consultant shall at all times observe and comply with all such laws, ordinances, and regulations, and shall be responsible for the compliance therewith of all work and services performed by the Consultant by or on behalf of the City.

3.2 Independent Contractor. The Consultant is retained as an independent contractor only, for the sole purpose of rendering the Consultant Services, and is not an employee of the City. The City shall have the right to control the Consultant only as to results of the Consultant’s services rendered pursuant to this Agreement, and the City shall not have the right to control the means by which the Consultant accomplishes the services performed under this Agreement.

3.3 Non-Discrimination. The Consultant shall not discriminate against any employee or applicant for employment because of any impermissible classification pursuant to Federal or State law, including, but not limited to, race, color, religion, national origin, gender, physical or mental disability, age, military status, sexual orientation, gender identity, gender expression, or marital or familial status. The Consultant shall incorporate the foregoing provisions in all subcontracts.

3.4 Proprietary Information. All proprietary information developed by the Consultant in connection with, or resulting from, this Agreement, including but not limited to inventions, discoveries, improvements, copyrights, patents, maps, reports, textual material, or software programs, shall be the sole and exclusive property of the City, without restriction or limitation upon their use. The Consultant agrees that the compensation to be paid pursuant to this Agreement includes adequate and sufficient compensation for any proprietary information developed in connection with or resulting from the performance of the Consultant Services under this Agreement. The Consultant further understands and agrees that full disclosure of all proprietary information developed in connection with, or resulting from, the performance of services by the Consultant under this Agreement shall be made to the City, and that the Consultant shall do all things necessary and proper to perfect and maintain ownership of such proprietary information by the City. The Consultant hereby agrees to deliver such proprietary information to the City upon the expiration or termination of this Agreement. It is understood and agreed that the proprietary information prepared pursuant to this Agreement is prepared specifically for the City and is not necessarily suitable for any future or other use. The Parties agree that, until final approval by the City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law. Consultant’s pre-existing copyrights are excluded and remain the property of the Consultant.

3.5 Patented and Copyright Materials. The Consultant shall assume all costs arising from the use of patented or copyrighted materials, including but not limited to equipment, devices, processes, and software programs, used or incorporated in the services or work performed by the Consultant under this Agreement. Pursuant to Section 3.7 herein, the Consultant shall Docusign Envelope ID: 35E7FCC8-E30B-4955-8A27-4C4DB101541A

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indemnify, defend (with legal counsel acceptable to the City), and hold the City and its elected and appointed boards, members, officials, officers, agents, representatives, employees, and volunteers (“City Personnel”) harmless from any and all suits, actions, or proceedings of every nature for or on account of the use of any patented or copyrighted materials.

3.6 Prevailing Wages. The Parties have determined that prevailing wage laws do not apply to this Agreement because the Consultant Services do not include construction, alteration, demolition, installation, or repair work or other otherwise exempt under California’s prevailing wage laws (Lab. Code, § 1720 et seq.). Notwithstanding the foregoing, it is agreed by the Parties that, in connection with performance of the Consultant Services, including, without limitation, any and all public works (as defined by applicable law), the Consultant shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Pursuant to Section 3.7 herein, the Consultant shall indemnify, defend (with legal counsel acceptable to the City), and hold the City and City Personnel harmless from and against any liability, loss, damage, cost or expenses (including but not limited to reasonable attorneys’ fees, expert witness fees, court costs, and costs incurred related to any inquiries or proceedings) arising from or related to (i) the noncompliance by the Consultant or any party performing the Consultant Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of Section 1781 of the Labor Code, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by the Consultant or any party performing the Consultant Services on the Consultant’s behalf to provide any required disclosure or identification as required by Labor Code Section 1781, as the same may be amended from time to time, or any other similar law.

3.7 Indemnification.

3.7.1 Indemnification of the City. Except as set forth in subdivision 3.7.2, the Consultant shall indemnify, defend (with legal counsel acceptable to the City), and hold harmless the City and City Personnel from and against any and all actions, suits, claims, demands, judgments, attorneys fees, costs, damages to persons or property, losses penalties, obligations, expenses, or liabilities (“Claims”) that may be asserted or claimed by any person or entity arising out of the Consultant’s performance of any tasks or services for or on behalf of the City, whether or not there is concurrent active or passive negligence on the part of the City and/or any City Personnel, but excluding any Claims arising from the sole negligence or willful misconduct of the City or any City Personnel. The Consultant shall defend any action or actions filed in connection with any such claims or liabilities, and shall pay all costs and expenses, including attorney’s fees incurred in connection therewith. The Consultant shall promptly pay any judgment rendered against the City or any City Personnel for any such claims or liabilities. In the event the City and/or any City Personnel is made a party to any action or proceeding filed or prosecuted for any such Claims arising out of or in connection with the work being performed or services being provided under this Agreement, the Consultant shall pay to the City any and all costs and expenses incurred by the City or City Personnel in such action or proceeding, together with reasonable attorney’s fees and expert witness fees.

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3.7.2 Design Professionals. The provisions of this subdivision 3.7.2 apply only in the event that the Consultant is a “design professional” within the meaning of the California Civil Code Section 2782.8(c). If the Consultant is a “design professional” within the meaning of Section 2782.8(c), then notwithstanding subdivision 3.7.1 above, to the fullest extent permitted by law (including, without limitation, Civil Code Sections 2782 and 2782.6), the Consultant shall defend (with legal counsel reasonably acceptable to the City), indemnify, and hold harmless the City and City Personnel from and against any Claim that arises out of, pertains to, or relates to, directly or indirectly, in whole or in part, the negligence, recklessness, or willful misconduct of the Consultant, any sub-consultant, subcontractor, or any other person directly or indirectly employed by them, or any person that any of them control, arising out of the Consultant’s performance of any task or service for or on behalf of the City under this Agreement. Such obligations to defend, hold harmless, and indemnify the City or any City Personnel, shall not apply to the extent that such Claims are caused in part by the sole negligence or willful misconduct of the City or such City Personnel. The Consultant’s cost to defend the City and/or City Personnel against any such Claim shall not exceed the Consultant’s proportionate percentage of fault with respect to that Claim; however, pursuant to Civil Code section 2782.8(a), in the event that one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the Consultant shall meet and confer with the City (and, if applicable, other parties) regarding any unpaid defense costs. To the extent the Consultant has a duty to indemnify the City or any City Personnel under this subdivision (b), the Consultant shall be responsible for all incidental and consequential damages resulting directly or indirectly, in whole or in part, from the Consultant’s negligence, recklessness, or willful misconduct.

3.8 Retention of Funds. The Consultant hereby authorizes the City to deduct from any amount payable to the Consultant (whether arising out of this Agreement or otherwise) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate the City for any losses, costs, liabilities, or damages suffered by the City, and all amounts for which the City may be liable to third parties, by reason of the Consultant's negligent acts, errors, or omissions, or willful misconduct, in performing or failing to perform the Consultant's obligations under this Agreement. The City in its sole and absolute discretion, may withhold from any payment due to the Consultant, without liability for interest, an amount sufficient to cover such claim. The failure of the City to exercise such right to deduct or withhold shall not act as a waiver of the Consultant's obligation to pay the City any sums the Consultant owes the City.

3.9 Insurance. The Consultant shall not commence the performance of any work or services under this Agreement until the Consultant has obtained all insurance required hereunder, nor shall the Consultant allow any sub-consultant or subcontractor to commence services until all such insurance has been obtained by the sub-consultant or subcontractor. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. All insurance policies shall be issued by an insurance company currently authorized by the California Department of Insurance to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the Docusign Envelope ID: 35E7FCC8-E30B-4955-8A27-4C4DB101541A

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City’s Risk Manager. The Consultant shall take out and maintain at all times during the performance of this Agreement the following policies of insurance:

3.9.1 Workers Compensation Insurance to cover the Consultant’s employees as required by law; and the Consultant shall require all subcontractors to provide such compensation insurance for all of the latter’s employees. Each such policy of worker compensation insurance shall carry the following endorsements:
(a) “The insurer waives all rights of subrogation against THE CITY OF LA PALMA, its officers, officials, agents, employees, and representatives.”
(b) “This insurance policy shall not be canceled, limited or nonrenewed by the insurer until thirty (30) days after receipt by THE CITY OF LA PALMA of a written notice of such cancellation, limitation, or reduction of coverage.”

3.9.2 Comprehensive General Liability Insurance for bodily injury, death, and property damage which may arise from the negligent performance of the Consultant, its employees, agents representatives, successors, and assigns while performing work or services under this Agreement, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate. Each such policy of insurance shall be in a form satisfactory to the City and shall contain the following endorsements:
(a) “THE CITY OF LA PALMA, its officers, officials,
employees, and representatives, are hereby declared to be additional insureds under the terms of this policy with respect to the operations and activities of the named insured at or from the premises of THE CITY OF LA PALMA described above.” (b) “This insurance policy shall not be canceled, limited, or not renewed until thirty (30) days after receipt by THE CITY OF LA PALMA of a written notice of such cancellation, limitation, or reduction of coverage.” (c) “This insurance policy is primary insurance and no insurance held or owned by the designated additional insureds shall be called upon or looked to cover a loss under said policy; THE CITY OF LA PALMA shall not be liable for the payment of premiums or assessments on this policy.”

3.9.3 Comprehensive Automobile Liability Insurance, including owned, non-owned, and hired automobiles, in a minimum Combined Single Limit of $1,000,000 per occurrence for bodily injury, death, and property damage. Each such policy of insurance shall be in a form satisfactory to the City and shall contain the following endorsements:
(a) “THE CITY OF LA PALMA, its officers, officials,
employees, and representatives, are hereby declared to be additional insureds under the terms of this policy with respect to the operations and activities of the named insured at or from the premises of THE CITY OF LA PALMA described above.” Docusign Envelope ID: 35E7FCC8-E30B-4955-8A27-4C4DB101541A

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(b) “This insurance policy shall not be canceled, limited, or not renewed until thirty (30) days after receipt by THE CITY OF LA PALMA of a written notice of such cancellation, limitation, or reduction of coverage.” (c) “This insurance policy is primary insurance and no insurance held or owned by the designated additional insureds shall be called upon or looked to cover a loss under said policy; THE CITY OF LA PALMA shall not be liable for the payment of premiums or assessments on this policy.”

3.9.4 Professional Liability Insurance to protect the City from the Consultant’s negligent acts, errors, and omissions of a professional nature, with coverage in a minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and the Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.

3.9.5 Renewal of Insurance. At least thirty (30) days prior to the expiration of any policy of insurance required under Paragraph 3.9.1, 3.9.2, 3.9.3 or 3.9.4, a signed complete certificate of insurance, with all endorsements provided herein, showing that such insurance coverage has been renewed or extended, shall be filed with the City.

3.9.6 Prohibited Insurance Provisions. Insurance policies required under Paragraph 3.9.1, 3.9.2, 3.9.3 or 3.9.4, shall not include any limiting provision or endorsement that has not been submitted to the City for approval. By way of example, additional insured endorsements shall not be limited to “ongoing operations,” exclude contractual liability, restrict coverage to the “sole” liability of the Consultant, or contain any other limitation contrary to this Agreement.

3.9.7 Variations to Insurance Requirements. The City may, but is not required to, approve in writing a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that the City’s interests are otherwise fully protected.

3.10 Conflicts of Interest.

3.10.1 City Personnel. No City Personnel shall have any financial interest, direct or indirect, in this Agreement, or participate in any decision relating to this Agreement that affects his or her financial interest or the financial interest of any corporation, partnership, association or other entity in which he or she is interested, in violation of any federal, state or city statute, ordinance or regulation. The Consultant shall not employ any such person while this Agreement is in effect.

3.10.2 Consultant. The Consultant represents, warrants and covenants that he, she or it presently has no interest, direct or indirect, which would interfere with or impair in any manner or degree the performance of the Consultant’s obligations and responsibilities under this Agreement. The Consultant further agrees that while this Agreement is in effect, the Consultant shall not acquire or otherwise obtain any interest, direct or indirect, that would interfere with or impair in any manner or degree the Docusign Envelope ID: 35E7FCC8-E30B-4955-8A27-4C4DB101541A

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performance of the Consultant’s obligations and responsibilities under this Agreement.

The Consultant acknowledges that pursuant to the provisions of the Political Reform Act (Government Code section 87100 et seq.), the City may determine the Consultant to be a “consultant” as that term is defined by the Act. In the event the City makes such a determination, the Consultant agrees to complete and file a “Statement of Economic Interest” with the City Clerk to disclose such financial interests as required by the City. In such event, the Consultant further agrees to require any other person doing work under this Agreement to complete and file a “Statement of Economic Interest” to disclose such other person’s financial interests as required by the City.

3.11 No Undue Influence. The Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of the City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City shall receive compensation, directly or indirectly, from the Consultant, or from any officer, employee, or agent of the Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. The Consultant further warrants that it has not employed or retained any company or person other than a bona fide employee working for the Consultant, to solicit or secure this Agreement and that it has not paid or agreed to pay any company or person any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, the City shall have the right to annul this Agreement without liability or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.

3.12 No Benefit to Arise to City Employees. No member, officer, or employee of the City, or their designees or agents, and no public official who exercises authority over or has responsibilities with respect to this Agreement during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for the Consultant Services to be performed under this Agreement.

4. RIGHTS AND REMEDIES

4.1 Termination By the City. The City reserves and has the right and privileges, at its sole discretion and with or without cause at any time during the term of this Agreement, of suspending, canceling or terminating this Agreement or any work in connection with this Agreement with or without any breach or failure to perform of the Consultant. Upon receipt of any notice of termination from the City, the Consultant shall immediately cease all services hereunder except such as may be specifically approved in writing by the Contract Administrator.

In the event of termination under this Section 4.1, all finished or unfinished data, studies, maps, reports, and other items prepared by the Consultant shall become the property of the City, and the Consultant shall promptly deliver such items to the City. In the event of termination under this Section 4.1, the City shall pay the Consultant for all authorized services performed and for all authorized and invoiced expenses incurred up to the date of termination of this Agreement, on a time and materials basis in accordance with the Budget and Fee Schedule attached hereto as Exhibit “B”.

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4.2 Performance to the City’s Satisfaction. The Consultant agrees to perform all work to the reasonable satisfaction of the City. If the services performed under this Agreement are not satisfactory, the City has the right to take appropriate action, including but not limited to:
(i) meeting with the Consultant, its agents or subcontractors to review the quality of the work and resolve matters of concern; (ii) requiring the Consultant to have the work repeated at no additional fee until it is satisfactory; (iii) withholding payment of the City’s compensation to the Consultant for any unsatisfactory work performed; (iv) suspending delivery of work to the Consultant for an indefinite time; and/or (v) terminating this Agreement.

4.3 Default, Remedies.

4.3.1 Default of Insurance Requirements. In addition to any other remedies at law or equity the City may have if the Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time required by Section 3.9 herein, the City may, at its sole option, exercise any of the following remedies, which are alternatives to other remedies the City may have and are not the exclusive remedy for the Consultant’s breach:
(a) Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; (b) Order the Consultant to stop work under this Agreement or withhold any payment that becomes due to the Consultant hereunder, or both, until the Consultant demonstrates compliance with the insurance requirements herein; and/or
(c) Immediately terminate this Agreement.

4.3.2 Other Defaults. In addition to any other remedies at law or equity the City may have, if the Consultant materially breaches any of the terms of this Agreement, the City's remedies shall include, but not be limited to, any or all of the following:
(a) Immediately terminate this Agreement; and/or
(b) Take over the work and prosecute the same to completion by contract with another consultant or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder, including costs incurred by the City in retaining a replacement consultant and similar expenses, exceeds the Budget contained in Exhibit “B”.

4.4 Force Majeure. Any time period specified in this Agreement for performance of services shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the City or the Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the delaying Party shall within ten (10) days of the commencement of such delay notify the other Party in writing of the causes of the delay Docusign Envelope ID: 35E7FCC8-E30B-4955-8A27-4C4DB101541A

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(“Force Majeure Event”). If the Consultant is the delaying Party, the City shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the City such delay is justified. The City’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall the Consultant be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused. The Consultant’s sole remedy shall be extension of this Agreement pursuant to this section. For the avoidance of doubt, Force Majeure shall not include (a) financial distress nor the inability of either party to make a profit or avoid a financial loss, (b) changes in the market prices or conditions, or (c) a party’s financial inability to perform its obligations hereunder. The current events related to the COVID-19 pandemic are known and shall not constitute Force Majeure Event, future impacts of the COVID-19 pandemic may be considered a Force Majeure Event to the extent that they prevent the performance of a Party's obligations under this Agreement.

5. MISCELLANEOUS

5.1 Notices. All notices, invoices or other instruments required or permitted to be given under this Agreement shall be served by personal delivery or deposited in a United States mail depository, postage prepaid, and addressed as follows:

If to the City: CITY OF LA PALMA
7822 Walker Street
La Palma, CA 90623
Attn: City Manager’s Office
If to the Consultant: Gladwell Governmental Services, Inc.

PO Box 62, 1028 Tirol Lane
Lake Arrowhead, CA 92352
Attn: Diane Gladwell, President
or such other address or person as either Party may indicate to the other in writing. Service of any instrument by mail shall be deemed effective forty-eight (48) hours after deposit in a United States mail depository, postage prepaid, and addressed as set forth above.

5.2 Integration. This Agreement represents the entire understanding of the City and the Consultant as to those matters contained herein, and no prior oral or written understanding shall be of any force or effect with regard to those matters covered by this Agreement. This Agreement may not be modified, altered, or amended except in writing signed by both the City and the Consultant. The Contract Administrator is hereby authorized to approve and effectuate amendments to this Agreement to the extent permitted by applicable law.

5.3 Construction, Venue. This Agreement shall be construed in accordance with the laws of the State of California and as if drafted by both parties hereto. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted and maintained in the Docusign Envelope ID: 35E7FCC8-E30B-4955-8A27-4C4DB101541A

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Superior Courts of the State of California in the County of Orange, or in any other appropriate court with jurisdiction in such County, and the Consultant agrees to submit to the personal jurisdiction of such court.

5.4 Rights and Remedies are Cumulative. Except as may be expressly set forth in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies or other rights or remedies as may be permitted by law or in equity shall not preclude the exercise by such Party, at the same or different times, of any other rights or remedies to which such Party may be entitled.

5.5 Severability. If any term or provision of this Agreement is found by a court of competent jurisdiction to be invalid, illegal or unenforceable in any jurisdiction, the invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable term or provision in any other jurisdiction. Upon a determination that any term or provision is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Agreement to effect the original intent of the Parties as closely as possible in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

5.6 Assignment. The Consultant shall not assign or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of the City; and any such assignment or other transfer without such consent shall be void.

5.7 Consultant not a City Agent. Except as the City may specify in writing, the Consultant shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent. This Agreement does not grant to the Consultant any authority, express or implied, to bind the City to any obligation whatsoever.

5.8 Attorney’s Fees. In the event any action is commenced by one Party to this Agreement against the other to enforce any of the rights or obligations arising from this Agreement, the prevailing Party in such action, in addition to any other relief and recovery ordered by the court, shall be entitled to recover all statutory costs, together with reasonable attorney’s fees.

5.9 Successors and Assigns. Subject to the provisions of Paragraphs 1.9 and

5.6 hereinabove, this Agreement, and all of the covenants, terms, and conditions hereof, shall be binding upon, and inure to the benefit of, the City, the Consultant, and their respective successors and assigns.

5.10 Authority of Signatories. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that by so executing this Agreement the Parties are formally bound to the provisions of this Agreement.

5.11 No Waiver. No waiver by either Party of any of the provisions of this Agreement shall be effective unless explicitly set forth in writing and signed by the Party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power Docusign Envelope ID: 35E7FCC8-E30B-4955-8A27-4C4DB101541A

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or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

5.12 No Third-Party Beneficiaries. This Agreement benefits solely the Parties to this Agreement and their respective permitted successors and assigns and nothing in this Agreement, express or implied, confers on any other person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

5.13 Non-Liability of City Personnel. No City Personnel shall be personally liable to the Consultant, or any successor in interest, in the event of any default or breach by the City, or for any amount which may become due to the Consultant or its successor, or for breach of any obligation of the terms of this Agreement.

5.14 Execution. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the Parties.

5.15 Survival. The terms, provisions, representations and certification contained in this Agreement, or inferable therefrom, shall survive the termination of this Agreement and the payment of the compensation hereinabove provided.

5.16 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.

5.17 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

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IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

CITY OF LA PALMA
By:

Peter L. Kim
City Manager
ATTEST:

Norma I. Alley, MMC
City Clerk

CONSULTANT
By:

Diane R. Gladwell
President
APPROVED AS TO FORM:

COLANTUONO, HIGHSMITH & WHATLEY, PC
By:

City Attorney, City of La Palma
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EXHIBIT A &B
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EXHIBIT A &B
A. Scope of Work & B. Fee Schedule
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Proposal for La Palma – Records Retention, Training, Subscription – 09-2025 Submitted by Gladwell Governmental Services, Inc. 909.337.3516 www.gladwellgov.org page 1

PROPOSAL FOR LA PALMA

RECORDS RETENTION, TRAINING AND SUBSCRIPTION
This proposal will result in the following benefits to La Palma:

1. Ensure efficiency and consistency.

2. Free Office and Storage Space.

3. Ensure fast response times and excellent customer service levels.

4. Provide an efficient “base” for operations in future years.

The President of Gladwell Governmental Services, Inc., Diane R. Gladwell, is a Master Municipal Clerk that has developed records management programs for over 200 California Special Districts and cities. Ms Gladwell was a City Clerk for six years, and has an excellent knowledge of government operations and document imaging. She is recognized as a leading expert in records management and has an excellent knowledge of the industry, products and vendors as well as hands-on user and administration experience with many systems. Ms. Gladwell is the author of several publications on records management, business process reengineering (BPR), and document imaging, and is a noted speaker (including AIIM, ARMA, and COMDEX). In addition, Ms. Gladwell has received multiple awards for document imaging / records management and administration.

GGS’s legal research and knowledge in the retention of California government records is unsurpassed, as noted by one of our clients:
“Her knowledge of municipal government and its structure are immense and her legal research was flawless."
Ms. Gladwell has no vendor affiliations, and therefore can provide objective advice and recommendations, where appropriate.

A recent Coopers & Lybrand study showed that records and information systems often represent 50% of the total cost of doing business, and the average office makes 19 copies of each document.

Average Costs:
• $20 to file each document
• $1.50 to retrieve each document
($20 x 19 copies = $380 to file)
The average office loses 1 out of 20 office documents. It then costs:
• $120 to search for the document
• $250 to recreate it, if lost
(1 lost document = $370)

Proposal for La Palma – Records Retention, Training, Subscription – 09-2025 Submitted by Gladwell Governmental Services, Inc. 909.337.3516 www.gladwellgov.org page 2

SCOPE OF WORK

RECORDS RETENTION SCHEDULES, TRAINING, SUBSCRIPTION
Phase 1: Records Retention – e-Records, Legal Compliance, Best Practices The City’s records retention schedule is not compliant with current law, is missing many important records series, and requires the retention of records longer than necessary.

Gladwell Governmental Services, Inc. (GGS) will provide all services via e-mail and video conference and will meet with departments and provide requested changes to GGS, who will ensure the legal sufficiency and consistency with Best Practices in other California cities.

Pre-existing copyright-protected records retention schedules developed by GGS will be customized to be organized to reflect the City’s organizational structure, and schedules will include all current laws and will show which records could be scanned into the document imaging system, and will identify if, and when, the paper version should be destroyed after imaging. Vital records will be identified, assisting the City in developing their disaster recovery plan.

Deliverables:
• Records Retention Schedules for all City Departments
• Index to retention schedules
• Draft resolution of adoption
• Draft staff report
• Unlimited Videoconferences with each Department
Cost: $9,250
Phase 2: Implementation / Destruction Procedures - Videoconference GGS will create, or review and update all written instructions, policies, procedures and forms to ensure all laws, policies and procedures of the City are followed in the most cost-effective manner possible.

Deliverables:
• Updated Policies, Procedures and Forms for destroying records in compliance with laws and “best practices”
• Two Videoconferences City-wide training meeting provided Cost: $725
Subscription to Keep Retention Schedules Up-to-Date (the year after initial update) The Records Retention Subscription includes:

Proposal for La Palma – Records Retention, Training, Subscription – 09-2025 Submitted by Gladwell Governmental Services, Inc. 909.337.3516 www.gladwellgov.org page 3 • Legal review of all State and Federal Law and other Regulations, and “Best Practices” updates from over 250 other California municipal government agencies for the year (presented in “Track Change” format),
• Additional routine changes requested by your employees (excludes major restructuring), • Approval forms and assistance,
• Re-writing of the index to your schedules to reflect the changes made (excludes major restructuring),
• Unlimited e-mail and telephone assistance / Q&A throughout the year (excludes Videoconference meetings).
• GGS's Errors & Omissions and Professional Liability coverage to protect all records retention schedules.
$950 a year (July 1 – June 30); Subscription continues until cancelled by the City. *Most cities do not require GGS to obtain a business license. If a business license is required,, the fee will increase so the net cost of the subscription is $854 a year.

Proposal for La Palma – Records Retention, Training, Subscription – 09-2025 Submitted by Gladwell Governmental Services, Inc. 909.337.3516 www.gladwellgov.org page 4

METHODOLOGY
All work is performed by the President of Gladwell Governmental Services, Inc. Assignments are not delegated to less skilled personnel or subcontractors, assuring the project is well-coordinated without communication problems or scheduling conflicts among various consultants and their other projects. In addition, this also assures the highest quality work.

The consultant proposes to build on the progress already made in the organization and the preexisting intellectual property of GGS, ensuring consistency and high levels of quality for the project.

The project will be structured to increase participation, expedite results, minimize costs and ensure the successful implementation of an excellent program by temporarily employing the skills and knowledge of the contractor as needed.

This approach is customized for the Agency to ensure the program:
• Is interactive, producing a high level of participation and ownership. • Matches the organization’s values and structure.
• Provides appropriate solutions.
• Can be implemented quickly;
• Will achieve long-term viability; and
• Has the highest cost/benefit ratio and return on investment.

Drafts of all work will be released to the Agency during the course of the project. the Agency will have an opportunity to edit and comment on these drafts, assuring that (1) the City will maintain control of the project, and (2) the current work of the organization supports the final program. In addition, on-site visits, e-mail, and telephone communications will keep the Agency apprised of the work progress.
“...a records management program is actually a money saver - a protection against ineffective operations. It is even more significant as a safeguard against disaster and lawsuits”
-ICMA (International City/County Management Association)

Proposal for La Palma – Records Retention, Training, Subscription – 09-2025 Submitted by Gladwell Governmental Services, Inc. 909.337.3516 www.gladwellgov.org page 5 RESUME

SUMMARY
Diane R. Gladwell is a Master Municipal Clerk with over twenty years experience managing in public and private sectors. Recipient of multiple awards recognizing excellence in municipal clerk administration.

Facilitator, author and instructor for document imaging, best practices and reengineering in over 200 organizations, including AIIM, ARMA and COMDEX.

PROFESSIONAL BACKGROUND
Gladwell Governmental Services, Inc. 1989 to present
President
Clients have included over 200 California Cities, Special Districts and Counties. Projects have included:

1. Organization-wide and Department-level Records Management Programs:

Retention Schedules, Procedures, Manuals and Training

2. ECMS / Document Imaging / Trustworthy Electronic Records System Acquisition or Remediation

3. E-mail and electronic records

4. Educational Programs and Publications in Technology, Business Process Reengineering, Best Practices, Records Management and other subjects.

5. Facilitation of Business Process Reengineering.

6. Elections Management.

City of San Luis Obispo 1992 to 1995
City Clerk
As a member of the management team, responsible for records management, election administration, municipal code maintenance, FPPC disclosures, special event permits, City Council support, and coordination of over 20 boards and commissions for the City of San Luis Obispo. Administration of the agenda process and all public notification and advertisement.

Received the Presidents Award of Distinction for Excellence in Organization and Administration from the California Clerks Association (1994). Reduced expenses by 22% while increasing services to the public; developed “InfoSLO” computerized information kiosk, electronic advertising and electronic agendas; reengineered all programs and processes in the Division.

City of Glendale 1989 to 1992
Assistant City Clerk
As a member of management, responsible for records management, election administration, municipal code maintenance, FPPC disclosures, business licensing, film permits and special events for Glendale (population 187,000). Supervised Council and Redevelopment Agency agendas, packets and minutes preparation as required; administrated publication and mailing of legal notices, bids, and process claims for the City. Develop, presented and administrated City Clerk annual budget of $800,000. Acted as Public Information Officer for the City during emergencies (Glendale fire, storm damage). Supervised a staff of nine who serve a culturally diverse community.

Developed, implemented, and administrated a Citywide records management program based on optical disk technology which has received international, national and state awards for exceptional records management programs.

Proposal for La Palma – Records Retention, Training, Subscription – 09-2025 Submitted by Gladwell Governmental Services, Inc. 909.337.3516 www.gladwellgov.org page 6 Food 4 Less / Market Basket / Viva / Boys Markets 1980-1989 Credit Management Services Supervisor
Administered payment systems and collections for a chain of 50 grocery stores (over five million transactions annually.) Records management for payment transactions, criminal and civil incidents for chain. A key member of the management team that developed and implemented computerized Electronic Funds Transfer for checks and credit cards as well as several custom applications to track returned items and issue check cashing cards. Budget development and administration for four Divisions representing expenditures of over $8,000,000.

EDUCATION
Pacific Southern University, Los Angeles: Bachelor of Science, Business Administration California Polytechnic University, Pomona: Business administration courses Citrus College, Azusa: Associate of Science, Business Administration UCLA: Business management courses
Institution de Technologico, Yucatan, Mexico: Attended institute as a foreign exchange student ESRI Geographic Information Systems (GIS) training
HONORS
Olsten Award for Excellence in Records Management Programs; Association of Records Management Administrators (ARMA) President’s Award of Distinction for Excellence in Organization and Administration; City Clerks Association of California (CCAC)
Records Management Award for Exceptional Municipal Programs Utilizing Alternative Technologies; International Institute of Municipal Clerks (IIMC)
President’s Award for Excellence in Public Presentations and Published Articles; City Clerks Association of California (CCAC);
Rotary, International, Lake Arrowhead Chapter: (2) Special Service Awards for Projects which raised over $40,000 for fire victims.
(3) Honorary Service Awards (California PTA, for outstanding service to youth and community) Life Member: Delta Mu Delta, Alpha Gama Sigma and California Scholarship Federation Listed in Who's Who of Executives and Professionals
2017 Woman of Distinction Award, California 23rd Senate District Rotarian of the Year, 2022, Rotary Club of Lake Arrowhead

PRESENTATIONS AND PUBLICATIONS
University of Riverside, Extension / Technical Track for Clerks: Records Management, Elections AIIM (Association for Information and Image Management) ARMA (Association of Records Mangers and Administrators) IIMC (International Institute of Municipal Clerks)
CCAC (City Clerks Association of California)
Government Technology Conference
Co-Author: Ballot Counting Procedures and Guidelines (various voting systems) Author: Document Imaging
Efficient Filing
Funding Records Management Projects
Various articles published by ARMA, ICMA, IIMC and NAGARA

PROFESSIONAL MEMBERSHIPS
AIIM Professional Level Member
Association of Records Managers and Administrators
City Clerks Association of California (Past First Vice President, Past Second Vice President) International Institute of Municipal Clerks (Past Chair, Resource Committee, Membership Task Force, Past Chair, Records Management Committee)
National Association of Government Archives and Records Administrators (NAGARA) Rotary, International

Agenda Item No. 12 January 13, 2026 | 1
City of La Palma
Agenda Item No. 12
MEETING DATE: January 13, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Jake Chavira, Acting Community Development & Public Works Director
AGENDA TITLE: Contract amendment with Casc Engineering Inc., for the Management of the National Pollutant Discharge Elimination System (NPDES) Stormwater Permit Program and the Countywide Fats, Oils, and Grease (FOG) Program
RECOMMENDED ACTION:

Authorize the City Manager to execute a contract amendment with Casc Engineering Inc., for the management of the National Pollutant Discharge Elimination System (NPDES) Stormwater Permit Program and the countywide Fats, Oils, and Grease (FOG) Program for an amount not to exceed $112,800.

SUMMARY:

The City of La Palma is committed to protecting water quality and maintaining clean ocean waters.

The Community Development & Public Works Director oversees the City’s participation in the National Pollutant Discharge Elimination System (NPDES) Stormwater Permit Program and the countywide Fats, Oils, and Grease (FOG) Program. Locally, the City reports to and complies with permit requirements administered by the Santa Ana Regional Water Quality Control Board (SARWQCB).

Current permit obligations include inspections of commercial, industrial, and municipal facilities; construction site oversight; field programs; data collection and reporting; performance measure analysis; stormwater monitoring; and staff training.

Due to the increasing complexity and regulatory stringency of NPDES and FOG requirements, the City issued a Request for Proposals (RFP) in June 2024 to solicit qualified professional environmental consulting firms to provide program management, technical expertise, and compliance support.

Following a competitive selection process, Casc Engineering and Consulting, Inc. was selected as the most qualified firm, and the City entered into a professional services agreement for these services on August 6, 2024.

Following City Council approval on August 6, 2024, staff identified errors in the agreement related to the contract term and total cost, which were incorrectly carried over from the RFP into the staff report.

Staff is therefore requesting Council approval of an amendment to correct the agreement term and amount to accurately reflect the original RFP and the City’s intended contract period and cost. No changes to the scope of work or agreed-upon pricing are being requested.

Agenda Item No. 12 January 13, 2026 | 2
ENVIRONMENTAL IMPACT:

The approval of this amendment to the agreement for NPDES and FOG Programs with Casc Engineering Inc. is categorically exempt from CEQA pursuant to (i) CEQA Guidelines 15306 and 15061(b)(3) as the agreement consists of basic data and information collection which does not result in a serious or major disturbance to an environmental resource; and (ii) CEQA Guidelines 15309 as the agreement consists of inspections to check for performance of an operation, or quality, health, or safety of certain sites.

FISCAL IMPACT:

The Adopted Fiscal Year 2025–26 Budget includes funding to manage the City’s NPDES and FOG programs in Account No. 001-405-6000-40030 and 052-480-6000-38020. The FOG Program is funded at $99,100, and the NPDES Program is funded at $13,700.

ATTACHMENTS:

1. Amendment No. 1 CASC 2026

2. Agreement NPDES FOG Program

429765.3
AMENDMENT NO.1 TO AGREEMENT FOR CONSULTING SERVICES

FOR NPDES AND FOG PROGRAMS
CASC ENGINEERING, INC.

This Amendment No. 1 (“Amendment”) to Agreement for Consulting Services (“Agreement”) is made on this 13th day of January, 2026 at La Palma, California, by and between the City of La Palma (“City”) and Casc Engineering and Consulting, Inc., (“Consultant”).

This Amendment modifies the original Agreement between City and the Consultant dated August 6, 2024, in the following fashion:

RECITALS
A. City and Consultant desire to amend the Agreement by modifying section 1.2 – “Time” of the Agreement to read as follows:

1.2 Time. Time is of the essence for this Agreement. The Consultant shall perform all Consultant Services, and each component thereof, within the time periods set forth in the Scope of Work. Consultant will perform all tasks included in the Scope of Work prior to August 6, 2027, with possible two one-year extensions.

B. City and Consultant desire to amend the Agreement by modifying section 2.1 – “Payment by the City” of the Agreement to read as follows:

2.1 Payment by the City. The City shall pay to the Consultant for the performance of the Consultant Services compensation in accordance with the Budget and Fee Schedule attached hereto as Exhibit “B” for an amount not to exceed $112,800.00.

C. Integration. This Amendment amends, as set forth herein, the Agreement and except as specifically amended hereby the Agreement shall remain in full force and effect. To the extent there is any conflict between this Amendment and the Agreement, the terms and provisions of this Amendment shall control. This Amendment and the Agreement, including any exhibits attached to the Agreement and this Amendment, integrate all the terms and conditions of the Parties’ agreement and supersede all negotiations with respect hereto.

IN WITNESS WHEREOF, this Amendment has been executed as of the date first written above.

429765.3

CITY OF LA PALMA
By _____________________________________
Peter L. Kim
City Manager
ATTEST:
__________________________________
Norma I. Alley
City Clerk, MMC
Casc Engineering Inc.

By
Melanie Sotelo
Associate Vice President

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AGREEMENT FOR CONSULTING SERVICES
CASC ENGINEERING AND CONSULTING, INC.

THIS AGREEMENT FOR CONSULTANT SERVICES (hereinafter, the “Agreement”), is entered into as of August 6, 2024, by and between the CITY OF LA PALMA, a municipal corporation (hereinafter, the “City”), and Casc Engineering and Consulting, Inc., (hereinafter, the “Consultant”). The Consultant and the City are hereafter together referred to as the “Parties” and each individually as a “Party.”

RECITALS
A. The City requires the services of, and desires to retain, a consultant to perform the services set forth and described in the Scope of Work attached hereto as Exhibit “A” and incorporated herein by this reference (hereinafter, the “Consultant Services”).

B. By virtue of the Consultant’s expertise, experience, and background, the Consultant is qualified to perform the Consultant Services for and on behalf of the City.

C. The City and the Consultant mutually desire to enter into this Agreement for the provision of the Consultant Services by the Consultant for and on behalf of the City, in accordance with the terms and conditions set forth herein.

EXECUTORY AGREEMENTS
NOW, THEREFORE, in consideration of the facts recited above and the covenants, conditions, and promises contained herein, the City and the Consultant mutually agree as follows:

1. RETENTION AND DUTIES OF CONSULTANT

1.1 Retention of Consultant. The City hereby retains the Consultant, and the Consultant accepts this retention from the City, to perform the Consultant Services as set forth in the Scope of Work attached hereto as Exhibit “A”.

1.2 Time. Time is of the essence for this Agreement. The Consultant shall perform all Consultant Services, and each component thereof, within the time periods set forth in the Scope of Work. Consultant will perform all tasks included in the Scope of Work prior to June 30, 2024.

1.3 Standard of Performance. The Parties mutually acknowledge that the City has retained the Consultant to perform the Consultant Services based upon the special skills, expertise, and experience of the Consultant. Accordingly, in performing the Consultant Services, the Consultant shall use the skill and care that a highly specialized professional with significant expertise in the field, would use under similar circumstances. To the extent that the Consultant retains sub-consultants or subcontractors to perform any portion of any of the Consultant Services, to the extent permitted hereunder, the Consultant has a duty to the City to ensure that the tasks and services performed by Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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such sub-consultants and subcontractors meet the same highly specialized professional level, skill, and expertise expected of the Consultant.

1.4 Licenses, Permits, Fees, and Approvals. The Consultant shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Consultant Services prior to commencing work. The Consultant and its employees, agents, and sub-consultants or subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for the performance of the Consultant Services. The Consultant shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Consultant’s performance of the Consultant Services, and shall indemnify, defend and hold harmless the City and City Personnel against any such fees, assessments, taxes, penalties or interest levied, assessed, or imposed against the City hereunder.

1.5 Personnel. The Consultant shall at all times allocate sufficient qualified personnel as required to perform the Consultant Services. The Consultant represents that the Consultant Services will be performed by the Consultant or under its direct supervision, and that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable Federal, State and local law to perform such tasks and services. The Consultant shall pay all wages, salaries, and other amounts due to such personnel in connection with their performance of the Consultant Services and as required by law.

1.6 Materials. The Consultant shall equip itself with all necessary goods, materials, equipment and personal property to perform the services specified in this Agreement.

The Consultant shall at all times ensure that all goods, materials, equipment and personal property included within the Consultant Services shall be of good quality, fit for the purpose intended.

1.7 Warranty. By executing this Agreement, the Consultant warrants that the Consultant (i) has thoroughly investigated and considered the Consultant Services to be performed, (ii) has carefully considered how the Consultant Services should be performed, and (iii) fully understands the facilities, difficulties, and restrictions attending performance of the Consultant Services.

1.8 Coordination With City. In the performance of the Consultant Services, the Consultant shall report to and receive instructions from the Director of Public Works & Community Services of the City or their designee (“Contract Administrator”). Tasks or services other than those specifically described in the Scope of Work shall not be performed by the Consultant or any sub-consultant or subcontractor without the prior written approval of the Contract Administrator pursuant to Section 1.11 herein.

1.9 Subcontracting Prohibited. The Consultant shall not subcontract the performance of any of the Consultant Services without the prior written approval of the Contract Administrator.

Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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1.10 Project Manager. The Consultant agrees that the following person shall be the project manager on behalf of the Consultant under this Agreement, and shall be principally responsible for performing the Consultant Services:

Melanie Sotelo, Associate Vice President
Notwithstanding the foregoing, the Parties acknowledge that persons other than the abovedesignated project manager of the Consultant may perform tasks or services under this Agreement if the performance of such tasks or services is under the supervision and control of the Consultant’s project manager. The Consultant shall not alter the assignment of the above-designated project manager without the prior written approval of the Contract Administrator.

1.11 Additional Services. If the City changes the scope of the Consultant Services to be performed by the Consultant, or if the Consultant is requested to perform services not specifically described in the Scope of Work (“Additional Services”), the Consultant shall perform such services as are necessary to complete the work, and compensation for the work performed shall be paid by the City in accordance with the Budget and Fee Schedule attached hereto as Exhibit “B” and incorporated herein by this reference, or as otherwise may be agreed in writing by the City and the Consultant. It is expressly understood by the Consultant that the provisions of this Section 1.11 shall not apply to services specifically set forth in the Scope of Work or reasonably contemplated therein. The Consultant hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than the Consultant anticipates and that the Consultant shall not be entitled to additional compensation therefor. Unless contradictory of this Section 1.11, all provisions in this Agreement applicable to the Consultant’s performance of the Consultant Services shall also apply to the Additional Services.

2. COMPENSATION TO CONSULTANT

2.1 Payment by the City. The City shall pay to the Consultant for the performance of the Consultant Services compensation in accordance with the Budget and Fee Schedule attached hereto as Exhibit “B” for an amount not to exceed $100,000.

2.2 Invoices. The Consultant shall invoice the City on a monthly basis for all work performed by the Consultant under this Agreement. Invoices shall include billings for all charges, including authorized direct costs incurred by the Consultant during the month covered by the invoice. All charges for labor or professional services shall describe with specificity the services rendered and shall set forth the number of hours worked and hourly rates in accordance with the Budget and Fee Schedule. Within thirty (30) days of receipt of an invoice, and upon determination by the City that the invoice is in order and that the Consultant has performed all requested or required services in a timely and competent manner, the City shall pay such invoice.

2.3 Record of Payment. The Consultant shall maintain records on all services for and charges to the City under this Agreement for a period of not less than twenty-four (24) months, or for any longer period required by law, after the termination of this Agreement, and make such records available for review and audit if requested by the City at any time during the term, or within twenty-four (24) months, or for any longer period required by law, after the Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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termination of this Agreement. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible.

3. LEGAL RESPONSIBILITIES

3.1 Compliance with Law. The Consultant shall keep fully informed of all Federal and State laws and regional, county, and municipal ordinances and regulations which may in any manner affect those employed by the Consultant or the performance by the Consultant of any tasks or services for or on behalf of the City. The Consultant shall at all times observe and comply with all such laws, ordinances, and regulations, and shall be responsible for the compliance therewith of all work and services performed by the Consultant by or on behalf of the City.

3.2 Independent Contractor. The Consultant is retained as an independent contractor only, for the sole purpose of rendering the Consultant Services, and is not an employee of the City. The City shall have the right to control the Consultant only as to results of the Consultant’s services rendered pursuant to this Agreement, and the City shall not have the right to control the means by which the Consultant accomplishes the services performed under this Agreement.

3.3 Non-Discrimination. The Consultant shall not discriminate against any employee or applicant for employment because of any impermissible classification pursuant to Federal or State law, including, but not limited to, race, color, religion, national origin, gender, physical or mental disability, age, military status, sexual orientation, gender identity, gender expression, or marital or familial status. The Consultant shall incorporate the foregoing provisions in all subcontracts.

3.4 Proprietary Information. All proprietary information developed by the Consultant in connection with, or resulting from, this Agreement, including but not limited to inventions, discoveries, improvements, copyrights, patents, maps, reports, textual material, or software programs, shall be the sole and exclusive property of the City, without restriction or limitation upon their use. The Consultant agrees that the compensation to be paid pursuant to this Agreement includes adequate and sufficient compensation for any proprietary information developed in connection with or resulting from the performance of the Consultant Services under this Agreement. The Consultant further understands and agrees that full disclosure of all proprietary information developed in connection with, or resulting from, the performance of services by the Consultant under this Agreement shall be made to the City, and that the Consultant shall do all things necessary and proper to perfect and maintain ownership of such proprietary information by the City. The Consultant hereby agrees to deliver such proprietary information to the City upon the expiration or termination of this Agreement. It is understood and agreed that the proprietary information prepared pursuant to this Agreement is prepared specifically for the City and is not necessarily suitable for any future or other use. The Parties agree that, until final approval by the City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law.

3.5 Patented and Copyright Materials. The Consultant shall assume all costs arising from the use of patented or copyrighted materials, including but not limited to equipment, Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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devices, processes, and software programs, used or incorporated in the services or work performed by the Consultant under this Agreement. Pursuant to Section 3.7 herein, the Consultant shall indemnify, defend (with legal counsel acceptable to the City), and hold the City and its elected and appointed boards, members, officials, officers, agents, representatives, employees, and volunteers (“City Personnel”) harmless from any and all suits, actions, or proceedings of every nature for or on account of the use of any patented or copyrighted materials.

3.6 Prevailing Wages. The Parties have determined that prevailing wage laws do not apply to this Agreement because the Consultant Services do not include construction, alteration, demolition, installation, or repair work or other otherwise exempt under California’s prevailing wage laws (Lab. Code, § 1720 et seq.). Notwithstanding the foregoing, it is agreed by the Parties that, in connection with performance of the Consultant Services, including, without limitation, any and all public works (as defined by applicable law), the Consultant shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Pursuant to Section 3.7 herein, the Consultant shall indemnify, defend (with legal counsel acceptable to the City), and hold the City and City Personnel harmless from and against any liability, loss, damage, cost or expenses (including but not limited to reasonable attorneys’ fees, expert witness fees, court costs, and costs incurred related to any inquiries or proceedings) arising from or related to (i) the noncompliance by the Consultant or any party performing the Consultant Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of Section 1781 of the Labor Code, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by the Consultant or any party performing the Consultant Services on the Consultant’s behalf to provide any required disclosure or identification as required by Labor Code Section 1781, as the same may be amended from time to time, or any other similar law.

3.7 Indemnification.

3.7.1 Indemnification of the City. Except as set forth in subdivision 3.7.2, the Consultant shall indemnify, defend (with legal counsel acceptable to the City), and hold harmless the City and City Personnel from and against any and all actions, suits, claims, demands, judgments, attorneys fees, costs, damages to persons or property, losses penalties, obligations, expenses, or liabilities (“Claims”) that may be asserted or claimed by any person or entity arising out of the Consultant’s performance of any tasks or services for or on behalf of the City, whether or not there is concurrent active or passive negligence on the part of the City and/or any City Personnel, but excluding any Claims arising from the sole negligence or willful misconduct of the City or any City Personnel. The Consultant shall defend any action or actions filed in connection with any such claims or liabilities, and shall pay all costs and expenses, including attorney’s fees incurred in connection therewith. The Consultant shall promptly pay any judgment rendered against the City or any City Personnel for any such claims or liabilities. In the event the City and/or any City Personnel is made a party to any action or proceeding filed or prosecuted for any such Claims arising out of or in connection with the work being performed or services being provided under this Agreement, the Consultant shall pay to the City any and all costs and Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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expenses incurred by the City or City Personnel in such action or proceeding, together with reasonable attorney’s fees and expert witness fees.

3.7.2 Design Professionals. The provisions of this subdivision 3.7.2 apply only in the event that the Consultant is a “design professional” within the meaning of the California Civil Code Section 2782.8(c). If the Consultant is a “design professional” within the meaning of Section 2782.8(c), then notwithstanding subdivision 3.7.1 above, to the fullest extent permitted by law (including, without limitation, Civil Code Sections 2782 and 2782.6), the Consultant shall defend (with legal counsel reasonably acceptable to the City), indemnify, and hold harmless the City and City Personnel from and against any Claim that arises out of, pertains to, or relates to, directly or indirectly, in whole or in part, the negligence, recklessness, or willful misconduct of the Consultant, any sub-consultant, subcontractor, or any other person directly or indirectly employed by them, or any person that any of them control, arising out of the Consultant’s performance of any task or service for or on behalf of the City under this Agreement. Such obligations to defend, hold harmless, and indemnify the City or any City Personnel, shall not apply to the extent that such Claims are caused in part by the sole negligence or willful misconduct of the City or such City Personnel. The Consultant’s cost to defend the City and/or City Personnel against any such Claim shall not exceed the Consultant’s proportionate percentage of fault with respect to that Claim; however, pursuant to Civil Code section 2782.8(a), in the event that one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the Consultant shall meet and confer with the City (and, if applicable, other parties) regarding any unpaid defense costs. To the extent the Consultant has a duty to indemnify the City or any City Personnel under this subdivision (b), the Consultant shall be responsible for all incidental and consequential damages resulting directly or indirectly, in whole or in part, from the Consultant’s negligence, recklessness, or willful misconduct.

3.8 Retention of Funds. The Consultant hereby authorizes the City to deduct from any amount payable to the Consultant (whether arising out of this Agreement or otherwise) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate the City for any losses, costs, liabilities, or damages suffered by the City, and all amounts for which the City may be liable to third parties, by reason of the Consultant's negligent acts, errors, or omissions, or willful misconduct, in performing or failing to perform the Consultant's obligations under this Agreement. The City in its sole and absolute discretion, may withhold from any payment due to the Consultant, without liability for interest, an amount sufficient to cover such claim. The failure of the City to exercise such right to deduct or withhold shall not act as a waiver of the Consultant's obligation to pay the City any sums the Consultant owes the City.

3.9 Insurance. The Consultant shall not commence the performance of any work or services under this Agreement until the Consultant has obtained all insurance required hereunder, nor shall the Consultant allow any sub-consultant or subcontractor to commence services until all such insurance has been obtained by the sub-consultant or subcontractor. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. All insurance policies shall be issued by an insurance company currently authorized by the California Department of Insurance to transact business of insurance Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. The Consultant shall take out and maintain at all times during the performance of this Agreement the following policies of insurance:

3.9.1 Workers Compensation Insurance to cover the Consultant’s employees as required by law; and the Consultant shall require all subcontractors to provide such compensation insurance for all of the latter's employees. Each such policy of worker compensation insurance shall carry the following endorsements: (a) "The insurer waives all rights of subrogation against THE CITY OF LA PALMA, its officers, officials, agents, employees, and representatives." (b) "This insurance policy shall not be canceled, limited or nonrenewed by the insurer until thirty (30) days after receipt by THE CITY OF LA PALMA of a written notice of such cancellation, limitation, or reduction of coverage."

3.9.2 Comprehensive General Liability Insurance for bodily injury, death, and property damage which may arise from the negligent performance of the Consultant, its employees, agents representatives, successors, and assigns while performing work or services under this Agreement, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate. Each such policy of insurance shall be in a form satisfactory to the City and shall contain the following endorsements:
(a) “THE CITY OF LA PALMA, its officers, officials,
employees, and representatives, are hereby declared to be additional insureds under the terms of this policy with respect to the operations and activities of the named insured at or from the premises of THE CITY OF LA PALMA described above.” (b) “This insurance policy shall not be canceled, limited, or not renewed until thirty (30) days after receipt by THE CITY OF LA PALMA of a written notice of such cancellation, limitation, or reduction of coverage.” (c) “This insurance policy is primary insurance and no insurance held or owned by the designated additional insureds shall be called upon or looked to cover a loss under said policy; THE CITY OF LA PALMA shall not be liable for the payment of premiums or assessments on this policy.”

3.9.3 Comprehensive Automobile Liability Insurance, including owned, non-owned, and hired automobiles, in a minimum Combined Single Limit of $1,000,000 per occurrence for bodily injury, death, and property damage. Each such policy of insurance shall be in a form satisfactory to the City and shall contain the following endorsements:
(a) "THE CITY OF LA PALMA, its officers, officials,
employees, and representatives are hereby declared to be additional insureds under the terms of this policy with respect to the operations and activities of the named insured at or from the premises of THE CITY OF LA PALMA described above.” Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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(b) “This insurance policy shall not be canceled, limited, or not renewed until thirty (30) days after receipt by THE CITY OF LA PALMA of a written notice of such cancellation, limitation, or reduction of coverage.” (c) "This insurance policy is primary insurance and no insurance held or owned by the designated additional insureds shall be called upon or looked to cover a loss under said policy; THE CITY OF LA PALMA shall not be liable for the payment of premiums or assessments on this policy."

3.9.4 Professional Liability Insurance to protect the City from the Consultant’s negligent acts, errors, and omissions of a professional nature, with coverage in a minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and the Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.

3.9.5 Renewal of Insurance. At least thirty (30) days prior to the expiration of any policy of insurance required under Paragraph 3.9.1, or 3.9.2, 3.93, or

3.9.4 a signed complete certificate of insurance, with all endorsements provided herein, showing that such insurance coverage has been renewed or extended, shall be filed with the City.

3.9.6 Prohibited Insurance Provisions. Insurance policies required under Paragraph 3.9.1, or 3.9.2, 3.9.3, or 3.9.4 shall not include any limiting provision or endorsement that has not been submitted to the City for approval. By way of example, additional insured endorsements shall not be limited to “ongoing operations,” exclude contractual liability, restrict coverage to the “sole” liability of the Consultant, or contain any other limitation contrary to this Agreement.

3.9.7 Variations to Insurance Requirements. The City may, but is not required to, approve in writing a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that the City’s interests are otherwise fully protected.

3.10 Conflicts of Interest.

3.10.1 City Personnel. No City Personnel shall have any financial interest, direct or indirect, in this Agreement, or participate in any decision relating to this Agreement that affects his or her financial interest or the financial interest of any corporation, partnership, association or other entity in which he or she is interested, in violation of any federal, state or city statute, ordinance or regulation. The Consultant shall not employ any such person while this Agreement is in effect.

3.10.2 Consultant. The Consultant represents, warrants and covenants that he, she or it presently has no interest, direct or indirect, which would interfere with or impair in any manner or degree the performance of the Consultant’s obligations and responsibilities under this Agreement. The Consultant further agrees that while this Agreement is in effect, the Consultant shall not acquire or otherwise obtain any interest, Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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direct or indirect, that would interfere with or impair in any manner or degree the performance of the Consultant’s obligations and responsibilities under this Agreement.

The Consultant acknowledges that pursuant to the provisions of the Political Reform Act (Government Code section 87100 et seq.), the City may determine the Consultant to be a “consultant” as that term is defined by the Act. In the event the City makes such a determination, the Consultant agrees to complete and file a “Statement of Economic Interest” with the City Clerk to disclose such financial interests as required by the City. In such event, the Consultant further agrees to require any other person doing work under this Agreement to complete and file a “Statement of Economic Interest” to disclose such other person’s financial interests as required by the City.

3.11 No Undue Influence. The Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of the City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City shall receive compensation, directly or indirectly, from the Consultant, or from any officer, employee, or agent of the Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. The Consultant further warrants that it has not employed or retained any company or person other than a bona fide employee working for the Consultant, to solicit or secure this Agreement and that it has not paid or agreed to pay any company or person any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this Agreement. For breach or violation of this warranty, the City shall have the right to annul this Agreement without liability or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.

3.12 No Benefit to Arise to City Employees. No member, officer, or employee of the City, or their designees or agents, and no public official who exercises authority over or has responsibilities with respect to this Agreement during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for the Consultant Services to be performed under this Agreement.

4. RIGHTS AND REMEDIES

4.1 Termination by the City. The City reserves and has the right and privileges, at its sole discretion and with or without cause at any time during the term of this Agreement, of suspending, canceling or terminating this Agreement or any work in connection with this Agreement with or without any breach or failure to perform of the Consultant. Upon receipt of any notice of termination from the City, the Consultant shall immediately cease all services hereunder except such as may be specifically approved in writing by the Contract Administrator.

In the event of termination under this Section 4.1, all finished or unfinished data, studies, maps, reports, and other items prepared by the Consultant shall become the property of the City, and the Consultant shall promptly deliver such items to the City. In the event of termination under this Section 4.1, the City shall pay the Consultant for all authorized services performed and for all authorized and invoiced expenses incurred up to the date of termination of this Agreement, on a time and materials basis in accordance with the Budget and Fee Schedule attached hereto as Exhibit “B”.

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4.2 Performance to the City’s Satisfaction. The Consultant agrees to perform all work to the reasonable satisfaction of the City. If the services performed under this Agreement are not satisfactory, the City has the right to take appropriate action, including but not limited to:
(i) meeting with the Consultant, its agents or subcontractors to review the quality of the work and resolve matters of concern; (ii) requiring the Consultant to have the work repeated at no additional fee until it is satisfactory; (iii) withholding payment of the City’s compensation to the Consultant for any unsatisfactory work performed; (iv) suspending delivery of work to the Consultant for an indefinite time; and/or (v) terminating this Agreement.

4.3 Default, Remedies.

4.3.1 Default of Insurance Requirements. In addition to any other remedies at law or equity the City may have if the Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time required by Section 3.9 herein, the City may, at its sole option, exercise any of the following remedies, which are alternatives to other remedies the City may have and are not the exclusive remedy for the Consultant’s breach:
(a) Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; (b) Order the Consultant to stop work under this Agreement or withhold any payment that becomes due to the Consultant hereunder, or both, until the Consultant demonstrates compliance with the insurance requirements herein; and/or
(c) Immediately terminate this Agreement.

4.3.2 Other Defaults. In addition to any other remedies at law or equity the City may have, if the Consultant materially breaches any of the terms of this Agreement, the City's remedies shall include, but not be limited to, any or all of the following:
(a) Immediately terminate this Agreement; and/or
(b) Take over the work and prosecute the same to completion by contract with another consultant or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder, including costs incurred by the City in retaining a replacement consultant and similar expenses, exceeds the Budget contained in Exhibit “B”.

4.4 Force Majeure. Any time period specified in this Agreement for performance of services shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the City or the Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the delaying Party shall within ten (10) days of the commencement of such delay notify the other Party in writing of the causes of the delay Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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(“Force Majeure Event”). If the Consultant is the delaying Party, the City shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the City such delay is justified. The City’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall the Consultant be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused. The Consultant’s sole remedy shall be extension of this Agreement pursuant to this section. For the avoidance of doubt, Force Majeure shall not include (a) financial distress nor the inability of either party to make a profit or avoid a financial loss, (b) changes in the market prices or conditions, or (c) a party’s financial inability to perform its obligations hereunder. The current events related to the COVID-19 pandemic are known and shall not constitute Force Majeure Event, future impacts of the COVID-19 pandemic may be considered a Force Majeure Event to the extent that they prevent the performance of a Party's obligations under this Agreement.

5. MISCELLANEOUS

5.1 Notices. All notices, invoices or other instruments required or permitted to be given under this Agreement shall be served by personal delivery or deposited in a United States mail depository, postage prepaid, and addressed as follows:

If to the City: CITY OF LA PALMA
7822 Walker Street
La Palma, CA 90623
Attn: Public Works & Community Services Director
If to the Consultant: Casc Engineering and Consulting, Inc. 18 Technology Drive, Suite 135
Irvine, CA 92618
Attn: Melanie Sotelo, Associate Vice President
or such other address or person as either Party may indicate to the other in writing. Service of any instrument by mail shall be deemed effective forty-eight (48) hours after deposit in a United States mail depository, postage prepaid, and addressed as set forth above.

5.2 Integration. This Agreement represents the entire understanding of the City and the Consultant as to those matters contained herein, and no prior oral or written understanding shall be of any force or effect with regard to those matters covered by this Agreement. This Agreement may not be modified, altered, or amended except in writing signed by both the City and the Consultant. The Contract Administrator is hereby authorized to approve and effectuate amendments to this Agreement to the extent permitted by applicable law.

5.3 Construction, Venue. This Agreement shall be construed in accordance with the laws of the State of California and as if drafted by both parties hereto. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted and maintained in the Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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Superior Courts of the State of California in the County of Orange, or in any other appropriate court with jurisdiction in such County, and the Consultant agrees to submit to the personal jurisdiction of such court.

5.4 Rights and Remedies are Cumulative. Except as may be expressly set forth in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies or other rights or remedies as may be permitted by law or in equity shall not preclude the exercise by such Party, at the same or different times, of any other rights or remedies to which such Party may be entitled.

5.5 Severability. If any term or provision of this Agreement is found by a court of competent jurisdiction to be invalid, illegal or unenforceable in any jurisdiction, the invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable term or provision in any other jurisdiction. Upon a determination that any term or provision is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Agreement to effect the original intent of the Parties as closely as possible in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

5.6 Assignment. The Consultant shall not assign or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of the City; and any such assignment or other transfer without such consent shall be void.

5.7 Consultant not a City Agent. Except as the City may specify in writing, the Consultant shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent. This Agreement does not grant to the Consultant any authority, express or implied, to bind the City to any obligation whatsoever.

5.8 Attorney’s Fees. In the event any action is commenced by one Party to this Agreement against the other to enforce any of the rights or obligations arising from this Agreement, the prevailing Party in such action, in addition to any other relief and recovery ordered by the court, shall be entitled to recover all statutory costs, together with reasonable attorney’s fees.

5.9 Successors and Assigns. Subject to the provisions of Paragraphs 1.9 and

5.6 hereinabove, this Agreement, and all of the covenants, terms, and conditions hereof, shall be binding upon, and inure to the benefit of, the City, the Consultant, and their respective successors and assigns.

5.10 Authority of Signatories. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that by so executing this Agreement the Parties are formally bound to the provisions of this Agreement.

5.11 No Waiver. No waiver by either Party of any of the provisions of this Agreement shall be effective unless explicitly set forth in writing and signed by the Party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

5.12 No Third-Party Beneficiaries. This Agreement benefits solely the Parties to this Agreement and their respective permitted successors and assigns and nothing in this Agreement, express or implied, confers on any other person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

5.13 Non-Liability of City Personnel. No City Personnel shall be personally liable to the Consultant, or any successor in interest, in the event of any default or breach by the City, or for any amount which may become due to the Consultant or its successor, or for breach of any obligation of the terms of this Agreement.

5.14 Execution. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the Parties.

5.15 Survival. The terms, provisions, representations and certification contained in this Agreement, or inferable therefrom, shall survive the termination of this Agreement and the payment of the compensation hereinabove provided.

5.16 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.

5.17 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

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IN WITNESS WHEREOF, this Agreement has been executed as of the date first written above.

CITY OF LA PALMA
By:

Conal McNamara
City Manager
ATTEST:

Kimberly Kenney, CMC
City Clerk

CONSULTANT
By:

Melanie Sotelo
Associate Vice President
APPROVED AS TO FORM:

RUTAN & TUCKER
By:

Ajit Thind
City Attorney
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EXHIBIT A
-1-

EXHIBIT A
Scope of Work
It is anticipated that the selected consultant will support the City with a combination of in-house, field work, meetings, and satellite services. The Department anticipates an allocation of 16 to 24 hours per week with the selected provider. Any work involving private development or Public Works construction projects is additional and performed on a time and material basis. This allows the Department to contract for more complex expertise.

GENERAL SCOPE OF SERVICES

1. The Consultant shall provide Professional Stormwater Quality Services on a monthly services costs and time/material costs, Not to Exceed basis, to the City of La Palma, including the following;

2. The Consultant shall coordinate with City staff and Departments regarding the programs related tasks and prepare and submit monthly program status reports to the City.

3. Review and be familiar with the State and Federal permits, regulations and guidelines, and provide the City staff with technical memorandums regarding any changes or updates.

4. The consultant shall utilize wireless devices to connect to the City’s online database to enter in inspection information in real-time but no later than the same day the inspection is performed. The wireless devices shall be either a laptop, tablet type or smart phone device that has the ability to print the inspection directly in the field to provide to the facility representative. This requirement may be waived at the discretion of the Public Works Director depending upon the device chosen. The devices are subject to the approval of the Public Works Director. These requirements do not relieve the consultant of any required paper documentation that is necessary or required for compliance with eh NPDES permits, WDR’s, FOG Program. In addition, all data collected shall become the property of the Public Works Department and shall be provided to the City in a format approved by the City.

5. Prior to starting any work, the Consultant shall submit a proposed, detailed Task Order scope of services, fee proposal, schedule and over-al project estimate, to the Contract Officer for approval. Not work shall begin until written approval by the Public Works Department.

6. Scope of Services and number of hours for each Task shall be upon mutual agreement by the City and Consultant.

7. The Consultant understands that this is not an exclusive contract and that the City may use its own forces or others at its discretion.

8. Consultant’s employees shall maintain a neat, well groomed, appearance at all times while performing duties related to this program. Hair (including facial hair) shall be maintained in a neat, well groomed, fashion. The employees’ clothing shall be professional and maintained in a clean and neat order with no rips, tears, or permanent stains present.

Employees with tattoos and/or body piercing that is determined by the Authorized Representative to potentially present an unprofessional appearance, or one which is not in keeping with professional image the City wishes to present, shall be immediately replaces Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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with an employee who meets all criteria required in these specifications.

9. Consultant’s employees shall act in a courteous, professional, manner at all times while working on the project. Every effort shall be made to perform the work causing the least disturbance to the business being inspected. Any employee, who is determined to be incompetent, disorderly, intemperate, or otherwise objectionable, shall immediately be removed and replaced with a satisfactory employee.

10. The Public Works Director, at his/her discretion, may remove any employee deemed unsuitable and the consultant shall replace said employee with new personnel.

11. Other tasks, including office work (when not at the City of La Palma, non-routine fieldwork (i.e. special site inspections and some follow-up inspections) may be performed outside of time restrictions as follows between the hours of 7:30 am to 5:30 pm, Monday through Thursday and 8:00 am to 5:00 pm on Fridays.

12. Consultant shall present an official form of identification at all times when conducting inspections.

13. Consultant shall maintain an office at some fixed place and shall maintain a telephone at this office, which should be in the telephone director in the firm’s commonly known name, an shall at all times have a responsible person(s), employed by the consultant, to take all necessary action regarding all inquiries and complaints that may be received from the City and/or business owners during normal working hours. These inquires will likely include but not limited to the following:
a. Questions from the Field Staff asking for clarifications of program requirements. b. Questions from City Staff regarding staffing, data management, and billing issues.

14. Because of the potential technical nature of these questions, the individual(s) responsible for this effort shall be thoroughly knowledgeable about the NPDES and FOG programs, especially as it applies to the City of La Palma’s programs.

15. The Consultant’s field inspections shall be equipped with a cellular phone to allow immediate contact by City of La Palma’s contract officer. The Consultant’s staff shall be reachable between the hours of 7:30 am to 5:30 pm, Monday through Thursday and 8:00 am to 5:00 pm on Fridays.

16. Any complaints or questions that cannot be resolved by the Consultant shall be referred to the City Representative.

17. Employees shall be trained to recognize typical hazards associated with commercial, industrial and food service establishment activities. It shall be the Consultant’s responsibility to train employees to identify hazards at locations noted above. Any hazards present, that would prevent the employees from safely conducting the inspection, shall be reported to the Authorized City Representative. An inspection shall not be conducted while this hazard or safety concern exists.

18. General safety precautions (i.e. proper driving practices, wearing hard hats, ear protection, etc. in prescribed area, avoiding confined spaces, etc.) shall be exercised by Consultant staff at all times.

19. Any and all photographs taken by the consultant shall be geolocated.

NPDES SCOPE OF SERVICES

1. The Consultant shall provide NPDES/Stormwater inspections and audit compliance that are in compliance with State of California Regional Water Quality Control Board, Santa Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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Ana Region Order No. R8-2009-0030, NPDES Permit No. CAS618030 as Amended by Order No. R8-210-0062, land, state and redevelopment law. More specifically, attention is directed to Section IX, Municipal Inspections of Industrial Facilities and Section X, Municipal Inspections of Commercial. If the Consultant provides building and grading inspection services for the City, the Consultant shall coordinate all activities related to NPDES Permit compliance that affect such.

2. The Consultant shall provide construction and water quality management plan compliance/verification support services and ensure compliance with the WQMP requirements as established by the latest NPDES Permit.

3. The Consultant shall provide personnel that have extensive knowledge of NPDES Permit and WDR’s and applicable laws and regulations to actively manage, inspect, document and report regarding NPDES compliance with Sewers and Storm Drains regulations, Chapter 34 of the La Palma Municipal Code as shown in Appendix “C”.

4. When required, the Consultant’s personnel shall hold the appropriate licenses and certifications as required by the work and be properly trained in accordance with the NPDES permit and WDR’s. Documentation to that affect shall be provided before start of the contract with annual updates prior to July 1, each year for submittal to the City’s annual report to the Regional Board.

5. Consultant shall provide all dischargers and/or consultants with all relevant documents pertaining to the City of La Palma’s Municipal Code requirements. These documents shall be drafted, approved and supplied by the City of La Palma. All pictures, video, documentation, etc., shall be made available to the City of La Palma at all times and become the project of the City.

6. Consultant shall keep all written records and all computer files/discs for a minimum of three (3) years. All records will be made available to the City of La Palma at all times and submitted to the City after the end each reporting year.

7. Review and evaluate existing Stormwater program and provide recommendations and implementation procedures.

8. Provide recommendations for the development of Code Enforcement procedures in compliance with the City’s Municipal Codes for environmental programs.

9. Represent the City at local and regional meetings, such as the Stormwater General Permittee, sub-committee, and Regional Water Board meetings.

10. Serve as the City’s liaison with the Regional Water Board, County of Orange, and other local agencies on matters related to environmental programs.

11. Prepare and submit the required permit-related reports including quarterly progress and annual Stormwater program reports.

12. Prepare staff reports for City Council meetings and other reports, as requested by the City.

13. Prepare and submit other documentation as requested by the City.

14. Provide educational trainings and workshops on pollution prevention measures to City staff.

15. Coordinate with the County of Orange to develop and distribute outreach materials to residents and businesses.

16. Assist the City in the development and maintenance of an efficient database system with GPS coordinates and maps to track the City’s activities related to environmental programs.

17. Develop accurately depicted maps to enhance reports or other documentation.

18. Conduct IC/ID inspection, investigation, Code Enforcement, and prepare the required Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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notifications and reports.

19. Prepare necessary water quality inspection and reporting for municipal, commercial, industrial facilities, residential developments, multi-family developments and construction projects, to assure the implementation of best management practices for pollution prevention as required by the National Pollutant Discharge Elimination System (NPDES) permit and the State Construction General permit (CGP).

20. Develop the necessary templates for pollution prevention plans during construction and post construction phases. Coordinate with other City departments to ensure all new development and redevelopment projects meet NPDES permits and City requirements.

21. Review and approve Water Quality Management Plan (WQMP) for development, redevelopment, and projects.

22. Review and approve Stormwater Pollution Prevention Plan for high priority construction projects and Water Pollution Control Plans (WPCPs) for medium and low priority projects.

23. The Consultant shall be on-site for any emergency responses within 45 minutes of being notified.

24. The Consultant shall provide all inspection services.

25. The Consultant shall provide all follow-up inspection services as needed.

FOG PROGRAM SCOPE OF SERVICES

1. The Consultant shall provide Fats, Oils and Grease (FOG) inspection that are in compliance with the State of California Regional Water Quality Control Board (RWQCB), Santa Ana Region Order No. R8-2002-0014, General Waste Discharge Requirements (WDR) for all Sewage Collection Agencies in Orange County within the Santa Ana Region and State Water Resources Control Board (State Water Board) adopted Statewide General Waste Discharge Requirements (WDRs) for Sanitary Sewer Systems, Water Quality Order No. 2006-0003 (Sanitary Sewer Systems WDR).

2. The Consultant shall furnish all labor, equipment, materials, tools, services, and special skills required to perform “FOG Compliance” inspections, at food services establishments within the City of La Palma, as prescribed by the WDR Order and the specifications includes in this document. The Consultant shall provide sufficient personnel, materials, and supplies to accomplish the inspections approximately 50 food service establishments.

It is anticipated that there will be follow-up inspections conducted when violations are observed during routine inspections.

3. The Consultant shall provide professional Fats, Oils & Grease/Environmental Compliance Inspections and Plan Check Services on a Time and Material, not to exceed basis, to the City of La Palma, including but not limited to:
• Attending meetings upon request of the Contract Officer • Permit and Grant Application Services as directed
• Public Outreach Services as directed

4. The Consultant shall furnish adequately trained inspectors with the knowledge, skills, and abilities to perform inspections at food service establishments for compliance with local surface water quality FOG regulations (City of La Palma Ordinance No. 2022-13, which can be found under Chapter 34 of the La Palma Municipal Code and take appropriate enforcement actions based on observed violations. Consultant will inspect all Grease Interceptors and Grease Traps within the City of La Palma sewer service area every four Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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months. Consultant shall also perform Grease Best Management Practices Inspections on an annual basis.

5. Consultant shall coordinate with the Authorized City Representative and provide schedules that will accomplish the inspections within the required timeframe. The Consultant shall perform inspections every four months on behalf of the City of La Palma and will perform the following minimum actions at all inspections:
• Contact Food Service Establishment representative
• Determine capacity and condition of grease interceptor/trap and required inspection results/findings
• Review recent pumping manifests and/or grease receipts and input into database. • Obtain pH sample and record results from Grease interceptors only • Inform Food Service Establishment representative of all findings and/or actions. • Issue Notice of Non-Compliance if necessary and provide follow up as required.

6. Consultant shall provide database updates to the Authorized City Representative upon conclusion of each round of inspections. The database will include all food service establishments which do and/or do not discharge waste water containing fats, oils or grease (FOG) into the sanitary sewer collection system. This database will include, but not limited to, the following information:
• Name and location of food service establishment
• Property owner, manager, contact person name(s) and phone number(s). • Grease interceptor/trap location, number of inspection points and volume in gallons of grease control device
• Date of inspections, most recent pumping date, and condition of interceptor/trap • Waste hauler names, addresses and phone numbers
• Notice of Non-Compliance issuance dates(s), re-inspection dates, and findings as well as any/all relevant information

7. Consultant shall keep all written records and all computer files/discs for a minimum of three years. All records will be made available to the City of La Palma at all times and submitted to the City of La Palma after three-year period. Consultant shall gather, maintain and provide a complete database of all food service establishments which do and/or do not discharge wastewater containing fats, oils, and grease (FOG) into the sanitary sewer collection system.

8. Consultant shall perform on-site Grease Best Management Practices inspections at all food service establishments listed currently, or in the future within the City of La Palma food service establishment database, on an annual basis. Consultant shall inspect each food service establishment a total of two time, the initial inspection and then the follow-up inspection if the facility is found non-compliant. If compliance is not obtained by the food service establishment after the second inspection, the Consultant shall notify the City of La Palma of such food service establishments, along with all relevant information, including the reason(s) for the issuance of the Notice of Non-Compliance.

9. Consultant shall conduct field inspections of food service establishment to ensure compliance with applicable local surface water quality regulations and related Grease Best Management Practices (GBMPs). Consultant shall inspect for the following during these inspections: (1) Removal of garbage grinder, (2) Inspect grease collection maintenance logs, exhaust hood maintenance logs and employee training logs, (3) Inspect for installation and maintenance of all drain screens, (4) Inspect to ensure food waste BMPs are followed, Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

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(5) Inspect to ensure dry wiping BMP is followed, (6) Inspect for emergency spill materials or spill response kit, (7) Inspect to ensure Stormwater/Grease BMP poster(s) are located in approved areas. The inspection findings shall be entered into an electronic inspection tracking system prepared by the City and that can feasibly be used by the City for its monitoring purposes.

10. Consultant shall notify all dischargers found to be in non-compliance or subject to notice of violation. Consultant shall not provide any form of legal enforcement or take part in any form of enforcement action(s). All legal enforcement and actions taken against any discharger by the City of La Palma, after the notice of non-compliance procedures have been fulfilled by the Consultant, will be the sole responsibility of the City of La Palma.

Consultant shall cooperate in full with the City in all matters regarding possible enforcement action(s) and other general matters regarding the City’s sanitary sewer ordinance requirements.

11. Consultant shall be available to provide consultation for items such as City Council meeting, workshops, or community meetings, at a rate approved by the City of La Palma and Consultant.

12. The Consultant shall provide a representative (project manager) to review inspection activities as necessary for the purpose of determining compliance with these specifications.

The topics to be addressed include bur are not limited to the following:
• Providing complete site reviews to ensure compliance with applicable regulations. • Providing appropriate notification to food service establishments being inspected. • Providing courteous and professional inspections at food service establishments. • Providing the appropriate rate of inspections to ensure all sites which require inspections during the fiscal year are inspected as prescribed by the program. • Providing a summary of unusual or outstanding issues concerning non-compliance or other ongoing issues of concern.
• Provide information or suggestions for modification or revisions of the database maintenance and information processing program.

13. Review and evaluate existing FOG program and provide recommendations and implementation procedures.

14. Provide recommendations for the development of Code Enforcement procedures in compliance with the City’s Municipal Codes for environmental programs.

15. Serve as the City’s liaison with the Regional Water Board, County of Orange, and other local agencies on matters related to environmental programs.

16. Prepare and submit the required permit-related reports including quarterly progress and annual FOG program reports.

17. Prepare staff reports for City Council meetings and other reports, as requested by the City.

18. Prepare and submit other documentation as requested by the City.

19. Provide educational trainings and workshops on FOG pollution prevention measures to City staff.

20. Coordinate with the County of Orange to develop and distribute outreach materials to residents and businesses.

21. Assist the City in the development and maintenance of an efficient database system with GPS coordinates and maps to track the City’s activities related to environmental programs.

22. Develop accurately depicted maps to enhance reports or other documentation.

23. The Consultant shall be on-site for any emergency responses within 45 minutes of being Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

2905/001784-0004
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notified.

24. The Consultant shall provide all inspection services.

25. The Consultant shall provide all follow-up inspection services as needed.

Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

2905/001784-0004
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EXHIBIT B
-8-

EXHIBIT B
Budget and Fee Schedule

See attached
Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

Position and Name
>>>
Senior Project
Manager
Project Manager
Sr. Engineer
Assistant Engineer
Lead Inspector
Field Inspector/
Program Support
GIS Speacialist
Project Coordinator
Labor Subtotal
ODC‐Printing Material
‐ Inspection
reports/Educational
Material/Etc.

ODC ‐
Permits/Fees/Rental
Equipment& Supplies
Mileage
Other Direct Cost
Subtotal
Total by Task
Task Task Description Billing Rate >>> $150.00 $135.00 $165.00 $150.00 $119.00 $112.00 $115.00 $99.00 Unit Rate >>> 1.00 $ $ 1.00 $ 0.67 I NPDES and FOG Inspections
Est. Hours >>> 10 10 Est. Units >>>
Est. Amount >>> $             ‐     $ 1,350.00 $                  ‐     $                  ‐     $                  ‐     $                 ‐     $                ‐     $                  ‐     $ 1,350.00 Est. Amount >>> $                  ‐     $                ‐     $             ‐     $               ‐     $ 1,350.00 Est. Hours >>> 2 2 350 354 Est. Units >>> 330
Est. Amount >>> $ 270.00 $                  ‐     $                  ‐     $ 238.00 $ 39,200.00 $                ‐     $                  ‐     $ 39,708.00 Est. Amount >>> $                  ‐     $                ‐     $ 221.10 $ 221.10 $ 39,929.10 Est. Hours >>> 2 4 320 326 Est. Units >>> 792
Est. Amount >>> $             ‐     $ 270.00 $                  ‐     $                  ‐     $ 476.00 $ 35,840.00 $                ‐     $                  ‐     $ 36,586.00 Est. Amount >>> $                  ‐     $                ‐     $ 530.64 $ 530.64 $ 37,116.64 Est. Hours >>> 2 60 62 Est. Units >>>
Est. Amount >>> $             ‐     $                  ‐     $                  ‐     $                  ‐     $ 238.00 $ 6,720.00 $                ‐     $                  ‐     $ 6,958.00 Est. Amount >>> $                  ‐     $                ‐     $             ‐     $               ‐     $ 6,958.00 Est. Hours >>> 24 15 15 10 15 10 20 109 Est. Units >>> 132 Est. Amount >>> $ 3,600.00 $ 2,025.00 $ 2,475.00 $ 1,500.00 $ 1,785.00 $ 1,120.00 $                ‐     $ 1,980.00 $ 14,485.00 Est. Amount >>> $                  ‐     $                ‐     $ 88.44 $ 88.44 $ 14,573.44 Est. Hours >>> 24.0 29.0 15.0 10.0 23.0 740.0 0.0 20.0 861.0 Est. Units >>> 1,254.0 Est. Amount >>> $3,600 $3,915 $2,475 $1,500 $2,737 $82,880 $0 $1,980 $99,087.00 Est. Amount >>> $                  ‐     $                ‐     $ 840.18 $ 840.18 $ 99,927.18 III
OPTIONAL SERVICES(Not proposed as part of this scope.)
Est. Hours >>> 20 0 0 55 75 Est. Units >>>
Est. Amount >>> $             ‐     $ 2,700.00 $                  ‐     $                  ‐     $                  ‐     $                 ‐     $ 6,325.00 $                  ‐     $ 9,025.00 Est. Amount >>> $                  ‐     $                ‐     $             ‐     $               ‐     $ 9,025.00 REIMBURSABLE EXPENSES: The following expenses will be billed at cost plus 5% unless otherwise noted: Permits, Applications, and Fees: Includes fees for Notices of Intent (NOI), Notices of Termination (NOT), application fees, submittal fees, permit fees, and other fees required as part of the project and not paid directly by Client. Commercial Delivery Services: Including Express Mail, Federal Express, UPS and independent courier services. In-House Pick-Up and Delivery Services: When provided by the firm, these services will be billed at $50.00 per hour plus current IRS mileage reimbursement rates per mile round trip, with no additional markup. NOTES: Litigation Support and Expert Witness shall be at 2.0 times the above noted hourly rates. Task estimates: Line items for task estimates may be adjusted as required by the City's need for support services. Requested support services must not exceed the total project budget.

Prevailing Wage: Projects and/or portions thereof designated by Client to be subject to Prevailing Wage shall be billed at the Prevailing Wage rate, plus a multiplier of approximately 3.4 for overhead and profit. The Prevailing Wage rate shall be based upon the Wage Rate Determination issued by California’s Director of Industrial Relations for the locality and employee classification at the time the work is performed. Please contact CASC for specific project prevailing wage rates.

NPDES Inspection Services forcommercial and industrial sites(Assumes 20% follow‐up)Development of GIS Web and Mobile Applications
(Not proposed as part of this scope.)
Annual Project Estimate Summary Totals
FOG + NPDES Inspection Services forFOG sites
(Assumes 20% follow‐up)Additional NPDES Inspections:Construction, ICID investigations As Needed NPDES and FOG
Adminstrative Support Services II
Project Annual Estimate and Billing Rates Other Direct Costs City of La Palma
NPDES and FOG Support Services
ANNUAL FEE ESTIMATE*
CASC Engineering and Consulting, Inc.
2024 Confidential Proposal
Database Management
Docusign Envelope ID: 3F1F1CD4-43A2-40C0-A45B-7A63BE6053C5

Agenda Item No. 13 January 13, 2026 | 1
City of La Palma
Agenda Item No. 13
MEETING DATE: January 13, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Council Member Baker
AGENDA TITLE: Council Member Request - Discuss Moving La Palma's Annual Tree Lighting Ceremony Date
RECOMMENDED ACTION:

It is recommended that the City Council discuss and provide direction to staff.

BACKGROUND:

In 2025, Council Member Baker, with the support of Mayor Pro Tem Patel, requested that an item be placed on the October 7, 2025, City Council agenda to discuss changing the date of La Palma’s Annual Tree Lighting Ceremony.

Following discussion at the October 7, 2025, City Council meeting, staff was directed to return the item to the Council for further consideration following the 2025 Holiday Tree Lighting Ceremony, which would allow for adequate planning should the Council wish to transition the event to a different weekday beginning in December 2026.

Staff is requesting Council direction on whether to move the event from the first Wednesday of December to the first Tuesday of December, or another date to be discussed. Upon receiving direction, staff will coordinate with local schools and vendors to plan for the selected date starting with the December 2026 event.

FISCAL IMPACT:

There is no fiscal impact associated with discussing this matter and the event costs will be incorporated into the Fiscal Year 2026–27 Budget.

ATTACHMENTS:

None