La Palma City Council
May 5, 2026

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All City Management Services, Inc.

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 Scope of Work and Fee Schedule attached hereto as Exhibit “A” 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 Scope of Work and Fee Schedule attached hereto as Exhibit “A”.

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.

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 indemnify, defend (with legal counsel acceptable to the City), and hold the City and its elected and Docusign Envelope ID: FFD216CE-8532-4097-9D6B-651289122772

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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. Notwithstanding the foregoing, however, in the event that a court or jury determines that liability with respect to any Claims was caused or contributed to by the neglect act, error, omission or willful misconduct of the City or City Personnel, liability will Docusign Envelope ID: FFD216CE-8532-4097-9D6B-651289122772

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be appointed between Consultant on the one hand and the City on the other hand with regard to such Claims based upon the parties’ respective degrees of culpability, as determined by the court or jury, and Consultant’s duty to indemnify the City and City Personnel will be limited accordingly.

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: FFD216CE-8532-4097-9D6B-651289122772

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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 $5,000,000 per occurrence, $6,000,000 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:

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(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.”

3.9.4 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, or 3.9.3, 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.

3.9.5 Prohibited Insurance Provisions. Insurance policies required under Paragraph 3.9.1, 3.9.2, or 3.9.3, 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.

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

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(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 Scope of Work and Fee Schedule attached hereto as Exhibit “A”.

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 Docusign Envelope ID: FFD216CE-8532-4097-9D6B-651289122772

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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 “A”.

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 (“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 Docusign Envelope ID: FFD216CE-8532-4097-9D6B-651289122772

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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: Police Chief
If to the Consultant: All City Management Services, Inc. 10440 Pioneer Blvd., Suite 5
Santa Fe Springs, CA 90670
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 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.

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

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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:__________________________________
Demetra Farwell, Corporate Secretary
By:
[Title]
APPROVED AS TO FORM:

COLANTUONO, HIGHSMITH & WHATLEY, PC
By:

City Attorney, City of La Palma
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EXHIBIT A
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EXHIBIT A
Scope of Work and Fee Schedule

1. The Consultant will provide personnel for the City equipped and trained in appropriate procedures for crossing pedestrians in marked crosswalks. Such personnel shall be herein referred to as a "Crossing Guard". The Consultant is an independent contractor and the Crossing Guards to be furnished by it shall at all times be its employees and not those of the City.

2. The City shall determine the locations where Crossing Guards shall be furnished by the Consultant. The Consultant shall provide at each designated location personnel properly trained as herein specified for the performance of duties as a Crossing Guard. The Consultant shall provide supervisory personnel to see that Crossing Guard activities are taking place at the required places and times, and in accordance with the terms of this Agreement.

3. The Consultant shall maintain adequate reserve personnel to be able to furnish alternate Crossing Guards in the event that any person fails to report for work at the assigned time and location and agrees to provide immediate replacement.

4. In the performance of its duties the Consultant and all employees of the Consultant shall conduct themselves in accordance with the conditions of this Agreement and all applicable laws of the state in which the Services are to be performed.

5. Persons provided by the Consultant as Crossing Guards shall be trained in all applicable laws of the state in which the Services are to be performed pertaining to general pedestrian safety in school crossing areas.

6. The Consultant Services shall be provided by the Consultant at the designated locations on all days in which school is in session in the area under the City's jurisdiction. The Consultant also agrees to maintain communication with the designated schools to maintain proper scheduling.

7. The Consultant shall provide all Crossing Guards with apparel by which they are readily visible and easily recognized as Crossing Guards. Such apparel shall be uniform for all persons performing the duties of Crossing Guards and shall be worn at all times while performing said duties. This apparel must be appropriate for weather conditions. The Consultant shall also provide all Crossing Guards with hand held Stop signs and any other safety equipment which may be necessary.

8. The City agrees to pay the Consultant for the Consultant Services rendered pursuant to this Agreement and as follows for the specified term:
a. July 1, 2024 to June 30, 2025: The sum of Thirty Three Dollars and Sixty-Eight Cents ($33.68) per hour, per Crossing Guard for a total of (7) Crossing Guard positions at six locations. The cost of providing 4,005 hours of service shall not exceed $134,888.40.

Docusign Envelope ID: FFD216CE-8532-4097-9D6B-651289122772

-2-

9. Consultant may request a price increase during the term as a result of any new legallymandated increases in wages or benefits imposed in the state or municipality in which the Services are to be performed and to which Consultant's employees would be subject.

Consultant shall provide the City with 60 days-notice of its request to increase pricing. The City agrees to review and respond to said notice within 30 days of receipt.

Docusign Envelope ID: FFD216CE-8532-4097-9D6B-651289122772

442866.1

SECOND AMENDMENT TO

AGREEMENT FOR CONSULTANT SERVICES
ALL CITY MANAGEMENT SERVICES, INC.

THIS SECOND AMENDMENT TO AGREEMENT FOR CONSULTANT SERVICES (hereinafter, the “Second Amendment”) is entered into as of May 5, 2026 by and between the CITY OF LA PALMA, CALIFORNIA, a municipal corporation (hereinafter, the “City”), and ALL CITY MANAGEMENT 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
WHEREAS, the Parties previously entered into the AGREEMENT FOR CONSULTANT SERVICES, ALL CITY MANAGEMENT SERVICES, INC. (the “Agreement”) by which Contractor agreed to perform crossing guard services on behalf of the City (hereinafter, the “Consultant Services”), and amended that Agreement by the First Amendment on September 2, 2025;
WHEREAS, the Scope of Work and Fee Schedule attached as Exhibit “A” to the Agreement and amended by the First Amendment provides that the Consultant would be provided compensation in the amount of $34.66 per hour, per Crossing Guard, for a total of 7 Crossing Guard positions at 6 locations for the term July 1, 2025 to June 30, 2026, such compensation for 3,998.88 hours of service not to exceed $138,601.00;

WHEREAS, the Parties now desire to amend the Agreement to continue the Consultant Services through June 30, 2027; and
WHEREAS, the Parties desire to increase the maximum compensation amount allowed under the Agreement and amend the Scope of Work and Fee Schedule to provide for such continued Consultant Services.

NOW, THEREFORE, in consideration for the mutual covenants herein contained, the Parties agree as follows:

1. The preamble of the Agreement is hereby amended to state as follows:

THIS AGREEMENT FOR CONSULTANT SERVICES (hereinafter, the “Agreement”), is entered into as of July 1, 2024, through June 30, 2027, by and between the CITY OF LA PALMA, a municipal corporation (hereinafter, the “City”), and ALL CITY MANAGEMENT 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.”

2. Section 8 of Exhibit “A” to the Agreement is hereby amended to state as follows:

The City agrees to pay the Consultant for the Consultant Services rendered pursuant to this Agreement and as follows for the specified term:

442866.1
a. July 1, 2024 to June 30, 2025: The sum of Thirty Three Dollars and Sixty-Eight Cents ($33.68) per hour, per Crossing Guard for a total of seven (7) Crossing Guard positions at six (6) locations. The cost of providing 4,005 hours of service shall not exceed $134,888.40.
b. July 1, 2025 to June 30, 2026: The sum of Thirty Four Dollars and Sixty-Six Cents ($34.66) per hour, per Crossing Guard for a total of 7 Crossing Guard positions at (6) locations. The cost of providing 3,998.88 hours of service shall not exceed $138,601.00.
c. July 1, 2026 to June 30, 2027: The sum of Thirty Six Dollars and Twenty-Five Cents ($36.25) per hour, per Crossing Guard for a total of 7 Crossing Guard positions at (6) locations. The cost of providing 3,999 hours of service shall not exceed $144,963.75.

3. Except as set forth in this Second Amendment, each and all of the terms, conditions, and covenants set forth in the Agreement shall remain in full force and effect. To the extent there is any conflict between this Second Amendment and the Agreement, the terms and provisions of this Second Amendment shall control. This Second Amendment and the Agreement, including any exhibits attached thereto, integrate all the terms and conditions of the Parties’ agreement and supersede all negotiations with respect hereto.

4. If any provision of this Second Amendment is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
[Signature page to follow.]

442866.1
IN WITNESS WHEREOF, the City Council of the City of La Palma caused this Second Amendment to be subscribed by its City Manager and Consultant has executed or caused this Second Amendment to be executed by its duly authorized officer(s).

CITY OF LA PALMA
______________________________
Peter Kim, City Manager
ATTEST:
______________________________
Norma I. Alley, MMC
City Clerk
APPROVED AS TO FORM:

COLANTUONO, HIGHSMITH & WHATLEY, PC
______________________________
Ajit S. Thind, City Attorney
All City Management Services, Inc.
______________________________
Demetra Farwell, Corporate Secretary

Agenda Item No. 11 May 5, 2026 | 1
City of La Palma
Agenda Item No. 11
MEETING DATE: May 5, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Ajit S. Thind, City Attorney
AGENDA TITLE: Designation of Thais P. Alves as Assistant City Attorney RECOMMENDED ACTION:

Adopt a Resolution designating Thais P. Alves as Assistant City Attorney.

BACKGROUND:

Ajit S. Thind of Colantuono, Highsmith & Whatley, PC currently provides municipal legal services for the City as City Attorney and has served in that capacity since 2019. Due to additional obligations and responsibilities, Mr. Thind has sought an Assistant City Attorney at his firm to assist with the City’s legal needs.Thais P. Alves is an associate at Colantuono, Highsmith & Whatley, PC, in its municipal advisory practice group and resident in the Orange County office. She provides a wide range of support to our municipal clients on topics such as employment and labor, open meetings and records, conflicts of interest, and land use. For the last several months, Ms. Alves has assisted Mr. Thind with a number of assignments for the City and has been integrating well with staff over the last several months. Mr. Thind proposes to designate Ms. Alves as Assistant City Attorney. A copy of Ms. Alves’ resume is attached.

FISCAL IMPACT:

There is no fiscal impact from this action.

ATTACHMENTS:

1. Resolution

2. Resume

442845.1
City of La Palma: Resolution No. 2026-XX Page 1 of 2
RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PALMA, CALIFORNIA, DESIGNATING THAIS P. ALVES AS ASSISTANT CITY

ATTORNEY
WHEREAS, Ajit S. Thind of the law firm of Colantuono, Highsmith & Whatley, PC serves as City Attorney for the City; and
WHEREAS, due to additional responsibilities, Mr. Thind has sought additional support from attorneys at his office to maintain a high level of service for the City; and WHEREAS, Thais P. Alves of Colantuono, Highsmith & Whatley, PC has been assisting Mr. Thind with various assignments for the City; and
WHEREAS, the City benefits from having a second attorney available to assist Mr. Thind with provision of legal services.

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

SECTION 1. Thais P. Alves is hereby designated as Assistant City Attorney for the City of La Palma.

SECTION 2. The City Clerk shall certify to the passage and adoption of this resolution and shall affix their signature and City Seal and that same shall be entered into the Book of Resolutions.

APPROVED AND ADOPTED by the City Council of La Palma at a Regular Meeting on the 5th day of May, 2026.

__________________________
Nitesh P. Patel
Mayor
ATTEST:
_____________________
Norma I. Alley, MMC
City Clerk

442845.1
City of La Palma: Resolution No. 2026-XX Page 2 of 2

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS.

CITY OF LA PALMA )
I, NORMA I. ALLEY, MMC, City Clerk of the City of La Palma, California, DO HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of said City at a regular meeting of said City Council held on the 5th day of May, 2026, and that it was so adopted by called vote as follows:

AYES:

NOES:

_______________________________
Norma I. Alley, MMC
City Clerk

(949) 545-9064
[email protected]
7545 Irvine Center Drive,
Suite 200
Irvine, CA 92618
www.chwlaw.us
THAIS P. ALVES
Associate
Contact
Admissions
Expertise
Key Skills
Thais is an associate with Colantuono, Highsmith & Whatley’s municipal advisory practice group and resident in our Irvine office. She is Deputy City Attorney of Barstow and Special Labor Counsel for the City of El Monte.

Thais’s general counsel practice covers the full range of public law issues, including: public contracting, conflicts of interest, government ethics, open meetings and public records laws, commission and public meeting management, land use and planning, CEQA, sustainability and environmental policies, and other state and federal laws governing cities. Adept at public meeting management, she has regularly attended public agency meetings, including serving as past Assistant General Counsel for Eco Rapid Transit and past Planning Commission Counsel for the Cities of Ojai and Sierra Madre.

Thais is also part of the Firm’s employment law practice and provides significant labor and employment support for her clients, including advice regarding employee discipline matters, public employee retirement systems, personnel policies drafting and interpretation, union agreements drafting and interpretation, and compliance advice regarding the myriad of federal and state employment and labor laws.

She is experienced in the public employee disciplinary appeal process, and has continuously successfully defended her clients’ discipline decisions in disciplinary appeal hearings. She also maintains and delivers an extensive library of training presentations for public agencies, including AB 1825 sexual harassment prevention training, best practices on employee evaluations, employee leave rights and disability accommodations, civil service rules, and employee discipline.

Colantuono, Highsmith & Whatley, PC
Associate – March 2022 to Present
California Women’s Law Center
Associate – October 2021 to March 2022
Law Fellow – October 2020 to October 2021
California Office of the Attorney General
Legal Extern – January 2020 to May 2020
Los Angeles City Attorney’s Office
Legal Intern – June 2019 to August 2019

PROFESSIONAL SUMMARY

WORK EXPERIENCE
Education
• California State Bar
• Admitted December 27, 2021
• SBN# 336561
UCLA Law, 2020
J.D.

University of California, Irvine,
2016
B.A. in History, summa cum laude
• Municipal Advisory
• Labor and Employment
• Land Use Regulations
• Brown Act
• Collaborative
• Personable
• Effective Communicator
• Creative Problem Solver

Agenda Item No. 12 May 5, 2026 | 1
City of La Palma
Agenda Item No. 12
MEETING DATE: May 5, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Jake Chavira, Acting Community Development and Public Works Director
AGENDA TITLE: Approval of Amended and Restated National Pollutant Discharge Elimination System (NPDES) Stormwater Permit Implementation Agreement
RECOMMENDED ACTION:

Approve and authorize the City Manager to execute the Amended and Restated National Pollutant Discharge Elimination System (NPDES) Stormwater Permit Implementation Agreement between the County of Orange, Orange County Flood Control District, and participating Orange County cities, including the City of La Palma.

BACKGROUND:

The City is a Permittee under the Municipal Separate Storm Sewer System (MS4) permits issued by the California Regional Water Quality Control Boards (Santa Ana and San Diego Regions). The original NPDES Stormwater Permit Implementation Agreement (D90-094), which was executed in 1990 and amended in 1993 and 2002 (D02-048), established a cooperative framework for implementing the Orange County Stormwater Program to meet MS4 permit requirements and improve surface water quality. The Agreement allowed for collaboration, consistency, and cost-sharing of regional compliance strategies, municipal staff training, watershed monitoring and reporting efforts, and other MS4 program elements required of each of the Permittees. While the current Agreement has achieved many significant water quality improvements to local beaches and inland waters, state regulatory requirements issued through the MS4 permits have changed significantly since the Agreement was last updated. Watershed-specific water quality priorities have become increasingly complex, requiring targeted solutions, including structural treatment projects, to meet ongoing and forthcoming compliance requirements.

The proposed Agreement restates and updates the original Agreement to reflect current regulatory requirements, administrative practices, and programmatic needs. It continues the collaborative approach among the Permittees to implement regional stormwater management strategies, while also providing added flexibility in designing and developing watershed-specific strategies, programs, and projects using corresponding shared-cost sub-budget scales. As part of the shared cost budget approval process, the amended and restated Agreement also formalizes an annual consultation with the Orange County City Managers Association (OCCMA), which updates and improves the existing annual budget collaboration process already in place with OCCMA. The shared cost budget

Agenda Item No. 12 May 5, 2026 | 2
developed annually for this Agreement maintains the existing cost-sharing formula based on land area and population for the unincorporated County and 34 Orange County cities, with the District contributing 10% of the overall cost. For sub-budgets allowed under this Agreement that do not apply to all the Permittees, the same cost-sharing formula would be applied to the participating Permittees.

Examples of the types of geographic areas that a sub-budget could apply to include: across an MS4 permit area, watershed level, or sub-watershed scales.

Key provisions of the amended and restated Agreement include:
• Continued designation of the County as the administrator of the regional Orange County Stormwater Program.
• Clarification of responsibilities for each Permittee, including compliance reporting, monitoring, and implementation of Best Management Practices (BMPs). • Engagement with the OCCMA for strategic input on compliance and funding. • Provides an updated collaborative review process for annual operating budgets, including the ability to establish new sub-budgets with smaller groups of Permittees to support the development of targeted water quality projects and programs. • Continues the existing cost-sharing formula between Permittees based on land area and population, with the District contributing 10% and the County and Cities sharing the remaining 90% for the annual operating budget countywide.

For new sub-budgets, the same approach will be used to share costs amongst those participating agencies.

FISCAL IMPACT:

The Fiscal Year 2025-26 Adopted Budget includes funding for the City’s contribution and is available in the General Fund Streets Division Budget (001-405-6000-40030).

ENVIRONMENTAL IMPACT:

Approval of the Amended and Restated National Pollutant Discharge Elimination System (NPDES) Stormwater Permit Implementation Agreement is not a project for purposes of the California Environmental Quality Act (CEQA) pursuant to Cal. Pub. Res. Code § 21065.

ATTACHMENTS:

1. NPDES Stormwater Permit Implementation Agreement

1 AMENDED AND RESTATED NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM

STORMWATER PERMIT IMPLEMENTATION AGREEMENT
This AMENDED AND RESTATED NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM STORMWATER PERMIT IMPLEMENTATION AGREEMENT (“AGREEMENT”), for purposes of identification numbered [D02-048], and which may be alternatively referred to as the “OC Stormwater Program Implementation Agreement,” is entered into this ____ day of _________, 2026, by the County of Orange, (herein called the COUNTY), the Orange County Flood Control District (herein called DISTRICT) and the cities of Aliso Viejo, Anaheim, Brea, Buena Park, Costa Mesa, Cypress, Dana Point, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, La Habra, La Palma, Los Alamitos, Mission Viejo, Newport Beach, Orange, Placentia, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, and Yorba Linda (herein called CITIES).

The COUNTY, DISTRICT, and CITIES may be referred to collectively as PERMITTEES or individually as PERMITTEE, COUNTY, DISTRICT, or CITY, respectively, in this AGREEMENT.

RECITALS
WHEREAS, the United States Congress in 1987, through the Water Quality Act, amended Section 402 of the Clean Water Act (33 U.S.C.A. 1342(p)) to require the United States Environmental Protection Agency (“EPA”) to promulgate regulations for permitting stormwater discharges; and
WHEREAS, EPA regulations require National Pollutant Discharge Elimination System (“NPDES”) permits for discharges from a municipal separate storm sewer system (“MS4”)(herein after called MS4 permits), and further require MS4 permits to include requirements to control pollutants from stormwater discharges; and WHEREAS, in 1927, the Orange County Flood Control Act created the DISTRICT

2 to provide for the control of flood and stormwater and protect from damage from those flood or stormwater, the harbors, waterways, public highways, and property within the DISTRICT’s jurisdiction; and
WHEREAS, the powers granted to the DISTRICT include the authority to regulate discharges that threaten to impact its system and carry on technical and other investigations, examinations, or tests of all kinds, making measurements, collecting data, and making analyses, studies, and inspections pertaining to water supply, control of floods, use of water, water quality, nuisance, pollution, waste, and contamination of water, both within and without the DISTRICT; and
WHEREAS, the California State Water Resources Control Board (“SWRCB”), as designee of the EPA, has delegated authority to the California Regional Water Quality Control Boards-Santa Ana Region (“RWQCB-SAR”) and San Diego Region (“RWQCB-SDR”)(collectively, the RWQCBs) for administration of MS4 permits within the boundaries of their regions; and
WHEREAS, the COUNTY, DISTRICT, and CITIES are PERMITTEES under MS4 permits issued by the RWQCBs; and
WHEREAS, the RWQCBs have designated the COUNTY as the Principal PERMITTEE or Principal Watershed Co-permittee, as defined in the MS4 permits; and WHEREAS, the COUNTY, the DISTRICT and the CITIES previously entered into that certain agreement entitled National Pollutant Discharge Elimination System Stormwater Permit Implementation Agreement D90-094, on December 18, 1990, which was subsequently amended on October 26, 1993 by Amendment No. 1 and then on June 25, 2002 (the December 18, 1990 Agreement as Amended by Amendment No. 1 and the June 25, 2002 amendment will be referred to collectively hereinafter as the ORIGINAL AGREEMENT), to cooperatively develop, and did thereunder develop, an integrated stormwater runoff management program with the objective of fulfilling MS4 permit requirements and improving water quality in Orange County (program

3 referred to herein as the “OC Stormwater Program”); and WHEREAS, Section X of the ORIGINAL AGREEMENT provides that the ORIGINAL AGREEMENT may be amended by consent of a majority of the PERMITTEES which represent a majority of the percentage contributions as described in Section IV of the ORIGINAL AGREEMENT; and
WHEREAS, continued cooperation between the CITIES, the COUNTY, and the DISTRICT to jointly implement the OC Stormwater Program to fulfill prior, new, and potential future MS4 permit requirements, to the extent feasible, is in the best interests of the CITIES, the COUNTY, and the DISTRICT; and WHEREAS, the PERMITTEES now desire to restate and amend the ORIGINAL AGREEMENT, as reflected and set forth in this AGREEMENT.

NOW, THEREFORE, the PERMITTEES do mutually agree as follows:

I. FILING STATUS
The COUNTY, the DISTRICT, and each CITY have filed applications for MS4 permits as PERMITTEES. The COUNTY, the DISTRICT and each CITY is a PERMITTEE under each MS4 permit to which they are subject.

II. INCORPORATION OF FEDERAL GUIDELINES
All applicable federal and state water quality regulations and guidelines under the Federal Clean Water Act, as presently written or as changed during the term of this AGREEMENT, are hereby incorporated by reference and made a part of this AGREEMENT and take precedence over any inconsistent terms of this AGREEMENT.

III. DELEGATION OF RESPONSIBILITIES
The responsibilities of each of the parties shall be as follows:

A. The COUNTY shall be the administrator of the OC Stormwater Program and, on a cost-shared basis, perform the following functions:

1. Annual operating budgets.
a. Prepare the annual operating budget (“annual operating budget”), which shall include a work plan and associated financial plan and

4 budget. The annual operating budget is intended to provide for all programmatic functions and associated costs of the OC Stormwater Program, as outlined in this AGREEMENT and as generally described in Section V.A. Annual operating budgets and work plans may be based on RWQCB region (i.e., Santa Ana Region versus San Diego Region). The budget year shall coincide with the COUNTY's fiscal year, July 1 – June 30.
b. Consult with the Stormwater Program Representatives (as defined in Section III.C.8) when preparing annual operating budgets and major program elements therein.
c. A draft of the annual operating budget may be prepared for the PERMITTIES for review by February 15 each year. Annual operating budgets shall be submitted to the PERMITTEES for consideration and approval by May 15 of each year. Individual CITY approval shall be obtained from each CITY’s city manager or designee thereof by July 30 of each year. CITY manager designations for annual operating budget approval shall be provided in writing to the County and shall remain in effect until revoked in writing by the CITY’s city manager. An annual operating budget shall be deemed approved and adopted for the OC Stormwater Program by affirmative responses from PERMITTEES which represent a majority (50% or greater) of both the area and population percentage contribution as calculated in accordance with Section V.A (method for calculating approval percentage referred to as “Majority Approval”). The COUNTY and the DISTRICT shall represent one voting PERMITTEE with their percentage contribution equal to the total of the COUNTY and the DISTRICT as described in Section V.A. d. An approved and adopted annual operating budget shall not be

5 exceeded without prior Majority Approval of the PERMITTEES.

2. Project or watershed-specific sub-budgets.
a. In coordination with the PERMITTEES, prepare project-specific and/or watershed-specific budgets and associated work plans (collectively, “sub-budget(s)”) for the design of water quality projects and/or responding to RWQCB enforcement orders and/or other orders (e.g., California Water Code 13267 or 13383 orders). b. Sub-budgets shall be prepared and proposed on an as-needed basis, at the discretion of the COUNTY, or as requested by interested PERMITTEES, subject to concurrence of the COUNTY.
c. Each PERMITTEE willing to participate in a sub-budget will confirm participation to the COUNTY in writing. A PERMITTEE who confirms participation in a sub-budget shall be referred to herein as “PARTICIPATING PERMITTEE(s).” Sub-budgets will be subject to unanimous approval by all PARTICIPATING PERMITTEES, except that where a Participating Permittee fails to vote to approve a proposed sub-budget, such failure shall be deemed a withdrawal from the sub-budget and the withdrawing PERMITTEE shall no longer be considered a PARTICIPATING PERMITTEE and shall have no obligation to pay for or participate in the sub-budget. d. Project elements that go beyond design (e.g., construction, operation, and maintenance) shall not be provided for in subbudgets and, instead, are subject to separate agreement between the Participating Permittees.

3. Represent the OC Stormwater Program in reviews of documents, comments, and discussions with EPA, SWRCB, and RWQCBs and/or other resource agencies regarding MS4 permit requirements and related policies, programs, and regulations. The COUNTY shall timely notify the

6 PERMITTEES of any decision reached during these discussions that, in the determination of the County, substantially impacts the OC Stormwater Program.

4. Implement approved annual operating budgets and sub-budgets.

5. Working in collaboration with PERMITTEES, prepare and submit regional compliance reports as the Principal PERMITTEE, as required under the MS4 permits, and/or as designated in the approved workplans.

6. Implement the regional monitoring and reporting program elements from approved workplans for the MS4 permits, including, but not limited to, tasks to monitor and measure the effectiveness of Best Management Practices (“BMPs”). This may include monitoring and modeling.

7. Obtain, as may be required by the annual operating budget and/or subbudgets approved pursuant to this AGREEMENT, professional services, including, but not limited to, scientific, engineering, environmental, economic, and/or legal consultants to provide technical assistance for the work associated with the OC Stormwater Program. This work may include, but is not limited to, the preparation of technical or economic studies, legal analysis, watershed management plans, stormwater runoff management plans, water quality improvement plans, modeling, reasonable assurance demonstrations/reasonable assurance analyses, monitoring plans, technical reports, municipal staff training activities, and the design of structural and non-structural BMPs and strategies to prevent and/or reduce pollutants in stormwater runoff. Contracts for professional services to be funded under this AGREEMENT shall be made in conformance with the COUNTY’s procurement policies, and, to the extent there is no conflict, the following:
a. The COUNTY shall make efforts to stagger the date of issuance of new contracts for professional services, so that PERMITTEES may

7 better absorb increases in consultant fee rates.
b. For contracts for professional services that would require approval by the Orange County Board of Supervisors (as determined within the sole discretion of the COUNTY), one Stormwater Program
Representative for every two designees of the COUNTY shall be allowed to participate in any panel formed for the purpose of evaluating responses to Requests for Proposals or similar competitive solicitations submitted by potential consultants. Where any contract subject to this provision is to be extended beyond the initial term, the COUNTY shall request feedback from the Stormwater Program Representatives, regarding the consultant’s performance, prior to executing the extension. This process shall in no way impinge upon or limit the COUNTY’s discretion to enter into, amend, extend, renew, or cancel any contract for professional services for the OC Stormwater Program.
c. The COUNTY shall notify the PERMITTEES of any changes in the COUNTY’s procurement policies that significantly affect the thresholds for competitive procurement, scoring, or selection processes for contract services.

8. Implement a facility inspection program, as required by the MS4 permits, for MS4 facilities within the unincorporated areas of the County, at no cost to the CITIES.

9. Implement a facility inspection program, as required by the MS4 permits, for MS4 facilities on County-owned property used for COUNTY governmental purposes (i.e., property used for governmental functions) and located within a CITY, at no cost to the CITIES. For purposes of this section, the regional facility known as Dana Point Harbor shall be considered a Countyowned property used for governmental purposes.

8 a. To avoid confusion in the implementation of each party’s facility inspection programs, the COUNTY shall provide a list of those facilities, buildings and properties that it owns and are located within other jurisdictions (i.e. non-unincorporated properties) that the COUNTY has decided to monitor and regulate pursuant to this Section III.A.9. The County further agrees to notify the affected PERMITTEE of changes to the status of a facility.

B. The DISTRICT shall, on a cost-shared basis, except as set forth in subparagraph 2 below:

1. Perform or cause to be performed the water quality and hydrographic monitoring for compliance with MS4 permits and/or in accordance with RWQCB-approved monitoring plans and/or in the approved workplans.

2. Implement a facility inspection program, as required by the MS4 permits, for MS4 facilities located on District-owned and controlled property that is used for governmental purposes, at no cost to the CITIES.

3. Undertake or cause to be undertaken all activities required of the CITIES in Section III.C and applicable to the District.

C. The CITIES, at no cost to the Counties and the District, shall:

1. Implement a facility inspection program for its MS4 facilities, as required by the MS4 permit(s) and within the jurisdictional boundaries of that CITY.

2. Submit to the COUNTY storm drain system maps and/or data describing the type and location of its MS4 facilities with periodic revisions that reflect any modifications made as a result of land
development/redevelopment. If possible, information shall be submitted as geographical information system (“GIS”) data.

3. Support the COUNTY in the preparation of watershed characterizations and catchment prioritization efforts, including, but not limited to, by:

9 a. Identifying applicable zoning and land use designations. b. Identifying areas where sources of specific pollutants are known.

4. Upon COUNTY request, review, comment on, consider approval of, and, if approved, implement regional strategies to prevent and reduce pollutants in stormwater runoff.

5. Implement an illegal discharge detection and elimination program as required by the MS4 permit(s) to which the CITY is subject. Demonstrate adequate legal authority to control discharges to its MS4 facilities as may be required by the relevant MS4 permit(s) to which the CITY is subject.

6. Provide, as requested by the COUNTY, copies of the CITY’s jurisdictional reports, data, and any other information (in formats requested by the COUNTY, where such formats are reasonably available) to satisfy requirements in MS4 permits or other orders issued by a Regional Board or the State Board, to which the CITY is subject, provided the CITY has not otherwise challenged such order, and such challenge has not been resolved.

7. Participate in meetings convened by the COUNTY and respond to requests for information from the COUNTY, intended to obtain PERMITTEE input on matters related to this AGREEMENT and the implementation of the OC Stormwater Program.

8. Designate primary and secondary Stormwater Program Representative for matters related to this AGREEMENT and the implementation of the OC Stormwater Program. Designations shall be made by each CITY’s city manager, or designee, in writing to the COUNTY. Each designation shall remain in effect until revoked by the CITY’s city manager or designee.

Stormwater Program Representatives are intended to provide subject matter input and facilitate communication between the COUNTY and each CITY. For purposes of this AGREEMENT, a Stormwater Program

10 Representative will not be deemed to have the authority to approve annual operating budgets on behalf of a CITY, as required in Section III.A.1, unless expressly stated in the written designation provided to the COUNTY.

D. In the unincorporated areas of the COUNTY, the COUNTY shall, at no cost to the CITIES or the DISTRICT, undertake or cause to be undertaken all activities required above of the CITIES in Section III.C that are not responsibilities of the DISTRICT as outlined in Section III.B.

IV. Orange County City Manager Association Engagement
A. In lieu of the activities of the Technical Advisory Committee under the ORIGINAL AGREEMENT, the COUNTY shall endeavor to create a working relationship with the Orange County City Manager Association (“OCCMA”) or a sub-group thereof, to address issues such as MS4 permit requirements, MS4 permit compliance methods, and funding needs and strategies to facilitate regional and/or watershed-based, multi-jurisdictional project efforts.

B. At its discretion, the COUNTY, in coordination with the PERMITTEES as set forth in this AGREEMENT, may implement recommendations (or parts thereof) that OCCMA may give on OC Stormwater Program matters, including, but not limited to, potential strategies for compliance with current and anticipated future MS4 permit requirements; funding strategies and options for MS4 permit compliance efforts; and OC Stormwater Program budgeting.

Recommendations that would result in unbudgeted costs shall be subject to Majority Approval of the PERMITTEES pursuant to III.A.1.d.

C. Under no circumstances shall this Section be interpreted as a replacement or substitute for any other responsibility of CITIES or the COUNTY under this Agreement. At the COUNTY’s discretion, the Director of OC Public Works may enter into a memorandum of understanding with OCCMA to facilitate

11 procedures for OCCMA engagement under this Section. Under no circumstances shall this provision be interpreted to require any written agreement between the COUNTY and OCCMA.

V. PROGRAM COSTS
A. Annual Operating Costs.

Where not otherwise funded, the annual operating budget, including all costs of equipment, goods, COUNTY services (including, but not limited to, applicable COUNTY and COUNTY’S departmental overhead), and all professional services costs incurred by the COUNTY, and any cost of the MS4 permits, as determined by the COUNTY in its role as administrator of the OC Stormwater Program, shall be a shared cost and allocated among the COUNTY, DISTRICT, and CITIES, and paid for as follows:

Participants Percentage Contribution
DISTRICT 10
CITIES + COUNTY 90
The individual percentage contributions from each CITY and the COUNTY shall be functions of their respective dry land areas and population relative to those of the entire County of Orange. Each area shall be calculated as one-half of the sum of the area and population fractions, multiplied by 90%. National forests, state parks, airports, landfills, oceans, harbors, tidal bays, and active military installations shall be excluded from area calculations (Exhibit A-1). The contribution of the COUNTY shall be calculated from unincorporated areas and their respective populations. Should any external or alternative sources of funding become available, those funds may be directly applied to the appropriate budget(s) before the shared cost percentages are applied to the PERMITTTEES or credited to a subsequent budget.

12 Share in percent for jurisdiction #1= {(X1/Xtot) + (Y1/Ytot)}/2 x (90) X = area
Y = population
tot = total population or area
90 = total percentage excluding the DISTRICT’s contribution The percentage share shall be calculated by the COUNTY from population and area data. The population data shall be the most recent annual population estimates produced by the California Department of Finance, and area is based on the most recent OC Public Works survey data available to the COUNTY. Percentage share calculations shall be updated by May of each budget year for the budget year following and shall be included in annual operating budget proposals. Annual operating budget proposals shall be prepared based on the following percentage share computation methods, as applicable, and subject to exclusions in Exhibit A-1:

1. Countywide costs will be calculated as described in the process and formula above and subject to Exhibit A-1 for the entire group of PERMITTEES.

2. Regional costs, specific to only one RWQCB permit (Santa Ana Region and San Diego Region), will be calculated based on the process and formula above for PERMITTEES within the respective permit geographic area. For PERMITTEES that have jurisdiction in both permit regions, the regional costs will be based on the land area and prorated population for that permit geographic area.

3. Sub-budgets shall be based on the PARTICIPATING PERMITTEES and their corresponding area and prorated population total within the geographic area subject to the specific sub-budget.

4. In the event of a regulatory directive issued to PERMITTEES requiring amendment of any approved budget, the COUNTY shall provide immediate

13 notice to the included PERMITTEES and hold discussions with respect to responding to the directive and funding the immediate response. Such budget amendments shall be subject to the Majority Approval referenced in Section III.A.1.d.

5. If at any time during a budget year costs exceed the sum of the deposits for any approved budget, and prior Majority Approval for such exceedance has been obtained, the COUNTY shall submit invoices to the involved PERMITTEES to recover the deficit. The share for each PERMITTEE shall be prorated according to the formula that was initially used to apportion budget costs. Each CITY shall pay the invoice within 45 calendar days of the billing date.

6. If at any time costs exceed the sum of the deposits for any approved budget, the COUNTY may propose a budget increase and request payment by the PERMITTEES, and PERMITTEES shall pay such amount, provided the budget increase is approved in accordance with sections III.A.1.c-d or III.A.2.c of this Agreement, as may be applicable. Until such approval is obtained and sufficient deposits received, the COUNTY may, at its sole discretion, cease carrying out approved budget components so as to limit or not incur costs in excess of deposits. Nothing in this AGREEMENT shall be construed as requiring PERMITTEES to approve budget increases.

7. The COUNTY shall prepare a budget year-end accounting within 120 calendar days of the end of the budget year and present the same to the involved PERMITTEES for review. If the budget year-end accounting results in the sum of the deposits exceeding costs (net of interest earnings), the excess deposits shall carry forward to reduce the obligation of the PERMITTEES for the following budget year and prorated to the CITIES consistent with the cost-sharing population and area data

14 calculation above.

8. The COUNTY shall invoice each CITY for its annual share of each approved budget by November 30 of each budget year. Each CITY shall pay their deposit(s) within 45 calendar days of the billing date or within 45 calendar days of November 30, whichever is later. Each CITY’S deposit(s) shall be based on their prorated share(s) of the approved budget(s), reduced for any carry forward amount identified in the prior budget year-end accounting.

9. The COUNTY shall hold each CITY’s annual share of each approved budget in interest-bearing accounts and credit interest earned on each CITY’s annual share against each CITY’s share of the approved budget costs.

The COUNTY shall maintain records regarding interest earned and credited on each CITY’s annual share and provide the same to the CITIES within 120 calendar days of the end of the budget year.

10.Upon termination of this AGREEMENT, a final accounting shall be performed by the COUNTY and presented to the PERMITTEES for review. If the sum of the deposits exceeds the costs, the COUNTY shall reimburse to each CITY its prorated share of the excess, within 120 calendar days of the final accounting.

VI. LIFE OF THE AGREEMENT
The term of this AGREEMENT shall be indefinite, unless amended or terminated in accordance with this AGREEMENT.

VII. ADDITIONAL PARTIES
Any CITY which becomes incorporated after the effective date of this AGREEMENT, or requests to become a party to this AGREEMENT after previously withdrawing pursuant to Section VIII, shall be eligible to become a party to this AGREEMENT, subject to Majority Approval. In approving adding additional cities to this AGREEMENT, the PERMITTEES may

15 require such conditions of the added cities as they determine necessary or advantageous. The date of initiation, for determining costs for newly incorporated cities, shall be the date of incorporation. The costs for adding additional cities to this AGREEMENT and OC Stormwater Program including, but not limited to, permit and processing fees, as well as administrative costs incurred by the COUNTY and costs to reimburse the existing PERMITTEES for unreimbursed costs related to a previous withdrawal (if applicable), shall be calculated by the COUNTY, approved by Majority Approval of the PERMITTEES and, thereafter, invoiced by the COUNTY and paid by the added city(ies) within 45 calendar days of the billing date. Monies to be reimbursed to the existing PERMITTEES shall carry forward to reduce the billings for the following budget year.

VIII. WITHDRAWAL FROM THE AGREEMENT
A CITY may withdraw from this AGREEMENT by providing at least 60 calendar days written notice to the COUNTY. The COUNTY shall notify the PERMITTEES within 10 business days of receipt of any withdrawal notice. Neither the COUNTY nor any PERMITTEE shall be responsible for advising the withdrawing CITY of the legal, regulatory, or programmatic effects of withdrawing, nor have any continuing responsibility to the withdrawing CITY upon the effective date of the withdrawal. The withdrawing CITY shall be solely responsible for any costs the withdrawing CITY may incur related to its withdrawal, including, but not limited to, penalties assessed by RWQCBs, and or other resource agencies (e.g., EPA, CDFW, etc.) in connection with or related to its withdrawal. In addition, withdrawal shall constitute forfeiture of any deposits on hand from the withdrawing CITY, for the budget year in which the withdrawal is effective. If the effective date of a withdrawal is within 60 calendar days of the beginning of any budget year, the withdrawing CITY shall be responsible for paying its annual

16 share for the upcoming budget year as if it were still a PERMITTEE participating in this AGREEMENT but shall be eligible to receive a credit for any prospective carry forward amount of such annual share as may be contemplated by this AGREEMENT. The cost allocations to the remaining PERMITTEES participating in this AGREEMENT shall be recalculated and collected and/or credited as necessary in the budget year following the effective date of the withdrawal.

IX. NON-COMPLIANCE WITH PERMIT OR ORDER REQUIREMENTS
Each PERMITTEE shall remain solely responsible for its own acts and omissions with respect to compliance with requirements of an MS4 permit or other order of the RWQCBs or SWRCB to which it may be subject, and nothing herein shall be deemed to waive, release, or transfer any such responsibility to any other PERMITTEE. Nothing in this AGREEMENT shall be construed as an assumption by any PERMITTEE of any liability or obligation of another PERMITTEE, whether past, present, or future.

X. LEGAL ACTION/ COSTS/ ATTORNEY FEES
In the event of legal action to enforce any provision of this AGREEMENT, each party shall bear its own attorneys’ fees and costs, and no party shall seek to recover the same from any other party through litigation or other legal proceedings.

XI. AMENDMENTS TO THE AGREEMENT
This AGREEMENT may be amended with Majority Approval. The COUNTY and the DISTRICT shall represent one voting PERMITTEE with their percentage contribution equal to the total of the COUNTY and the DISTRICT as described in Section V. No amendment to this AGREEMENT shall be effective unless it is in writing and signed by the duly authorized representatives of the COUNTY and the required Majority Approval of PERMITTEES.

XII. NOTICES

17 All notices required under Section VIII shall be deemed duly given if delivered by hand (with written confirmation of receipt); via electronic mail (with confirmation of transmission); or three (3) days after deposit in the U.S. Mail, postage prepaid.

XIII. GOVERNING LAW
This AGREEMENT shall be governed and construed in accordance with laws of the State of California. If any provision or provisions of this AGREEMENT is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not any way be affected or impaired hereby.

XIV. CONSENT TO BREACH NOT WAIVER
No term or provision hereof shall be deemed waived and no breach excused, unless such waiver or consent shall be in writing and signed by the duly authorized representative of the PERMITTEE to have waived or consented.

Any consent by any PERMITTEE to, or waiver of, a breach by the other, whether express or implied, shall not constitute a consent to, waiver of, or excuse for any other different or subsequent breach.

XV. APPLICABILITY OF PRIOR AGREEMENTS
This AGREEMENT restates and amends the provisions in prior agreements and constitutes the entire AGREEMENT between the PERMITTEES with respect to the subject matter. All prior agreements, representations, statements, negotiations, and undertakings are superseded hereby.

XVI. EXECUTION OF THE AGREEMENT
This AGREEMENT may be executed in counterparts, and the signed counterparts shall constitute a single instrument. The parties agree that this AGREEMENT may be executed and delivered by electronic means, including via email or electronic signature platforms (e.g., DocuSign, Adobe Sign), and that such electronic signatures shall be deemed to have the same legal

18 effect as original signatures. Each party agrees that electronically signed documents shall be valid, enforceable, and admissible in any legal proceeding to the same extent as a manually signed original.

XVII. NO WAIVER OF PRIVILEGE AND/OR WORK PRODUCTION PROTECTION Notwithstanding anything in this Agreement to the contrary, nothing in this AGREEMENT shall require a party to release or provide information (including any reports, communications, data, etc.) that has been deemed by that party to be subject to the attorney-client privilege, attorney work product doctrine, or any other relevant privilege and protection, including, but not limited to, any reports or information generated by a party’s consultant that was prepared in consultation with, or at the direction of, such party’s attorney or counsel of record. Nothing in this AGREEMENT shall prohibit the parties hereto from entering into future agreements, including joint defense agreements, common interest agreements, or other similar agreements to share such privileged or protected information subject to the terms and conditions of such an agreement.

19 IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on the dates opposite their respective signatures:

ORANGE COUNTY FLOOD CONTROL DISTRICT
A body corporate and politic
By
Chairman of the Board of Supervisors

COUNTY OF ORANGE
A body corporate and politic
Date: By
Chairman of the Board of Supervisors

SIGNED AND CERTIFIED THAT A COPY OF THIS

AGREEMENT HAS BEEN DELIVERED TO THE

CHAIRMAN OF THE BOARD
Date: By

ROBIN STIELER
Clerk of the Board of Supervisors of
Orange County, California

APPROVED AS TO FORM COUNTY COUNSEL

ORANGE COUNTY, CALIFORNIA
By Julia Woo, Senior Deputy
Date:
///
///
///

20 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF ALISO VIEJO
Date: ______
ATTEST:

City Clerk

21 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF ANAHEIM
Date: ______
ATTEST:

City Clerk

22 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF BREA
Date: _________________________
ATTEST:

City Clerk

23 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF BUENA PARK
Date: ______
ATTEST:

City Clerk

24 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF COSTA MESA
Date: _____
ATTEST:

City Clerk

25 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF CYPRESS
Date: ______
ATTEST:

City Clerk

26 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF DANA POINT
Date: ______
ATTEST:

City Clerk

27 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF FOUNTAIN VALLEY
Date: ______
ATTEST:

City Clerk

28 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF FULLERTON
Date: ______
ATTEST:

City Clerk

29 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF GARDEN GROVE
Date: ______
ATTEST:

City Clerk

30 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF HUNTINGTON BEACH
Date: ______
ATTEST:

City Clerk

31 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF IRVINE
Date: ______
ATTEST:

City Clerk

32 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF LA HABRA
Date: ______
ATTEST:

City Clerk

33 By:

Peter L. Kim, City Manager
APPROVED AS TO FORM:

City Attorney

CITY OF LA PALMA
Date: ______
ATTEST:

City Clerk

34 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF LAGUNA BEACH
Date: ______
ATTEST:

City Clerk

35 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF LAGUNA HILLS
Date: ______
ATTEST:

City Clerk

36 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF LAGUNA NIGUEL
Date: ______
ATTEST:

City Clerk

37 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF LAGUNA WOODS
Date: ______
ATTEST:

City Clerk

38 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF LAKE FOREST
Date: ______
ATTEST:

City Clerk

39 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF LOS ALAMITOS
Date: ______
ATTEST:

City Clerk

40 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF MISSION VIEJO
Date: ______
ATTEST:

City Clerk

41 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF NEWPORT BEACH
Date: ______
ATTEST:

City Clerk

42 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF ORANGE
Date: ______
ATTEST:

City Clerk

43 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF PLACENTIA
Date: ______
ATTEST:

City Clerk

44 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF RANCHO SANTA MARGARITA
Date: ______
ATTEST:

City Clerk

45 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF SAN CLEMENTE
Date: _____
ATTEST:

City Clerk

46 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF SAN JUAN CAPISTRANO
Date: _____
ATTEST:

City Clerk

47 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF SANTA ANA
Date: ______
ATTEST:

City Clerk

48 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF SEAL BEACH
Date: ____
ATTEST:

City Clerk

49 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF STANTON
Date: ______
ATTEST:

City Clerk

50 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF TUSTIN
Date: ______
ATTEST:

City Clerk

51 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF VILLA PARK
Date: ______
ATTEST:

City Clerk

52 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF WESTMINSTER
Date: ______
ATTEST:

City Clerk

53 By:

Mayor
APPROVED AS TO FORM:

City Attorney

CITY OF YORBA LINDA
Date: ______
ATTEST:

City Clerk

54 EXHIBIT A - 1

DRY LAND AREA DEDUCTED FROM JURISDICTIONS
Landfills Jurisdiction
Olinda County
Santiago County
Prima Deschecha County
Bee Canyon County
Coyote Canyon County
State Parks
Bolsa Chica State Beach* Huntington Beach
Chino Hills State Park County
Corona Del Mar State Beach Newport Beach
Crystal Cove State Park** County
Doheny State Beach Dana Point
Huntington State Beach Huntington Beach
San Clemente State Beach San Clemente
Airports
Fullerton Fullerton
John Wayne County
Military facilities
Joint Forces Training Base - Los Alamitos Los Alamitos
Former MCAS Tustin*** Tustin
Seal Beach Naval Weapons Station**** Seal Beach
National Forests
Cleveland National Forest County
*Includes Bolsa Chica Ecological Preserve
**Includes Laguna Laurel Ecological Preserve
***Active military areas
****Includes Seal Beach National Wildlife Refuge

Agenda Item No. 13 May 5, 2026 | 1
City of La Palma
Agenda Item No. 13
MEETING DATE: May 5, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Joseph Cisneros, Deputy City Manager
Mike Matsumoto, Financial Consultant
AGENDA TITLE: Long-Term Fiscal Status and Draft Fiscal Year 2026-27 Budget RECOMMENDED ACTION:

1. Receive the staff presentation on the Long-Term Fiscal Status Update;

2. Receive an overview of the Draft Fiscal Year 2026-27 Budget and provide direction for additional materials or information needed for the final budget to be presented on June 2, 2026; and

3. Transfer $2.1 million from General Fund Unreserved Fund Balance to the Cash Flow Reserve ($1 million), Vehicle Maintenance & Replacement Fund ($538,000), and Emergency Reserve Fund ($525,000).

SUMMARY:

The Economy and La Palma’s Economic Outlook
As of April 2026, the economy presents a complex and evolving landscape shaped by recent policy changes and global uncertainties. The labor market remains relatively stable with fairly low unemployment, signaling continued resilience in employment; however, inflation has increased to

3.3% in March 2026 which is the highest since May 2024. The Federal Reserve had been lowering interest rates, but they have been holding interest rates at 3.5%-3.75%. Consumer spending has been stagnating.

On a local level, the City maintains a prudent philosophy regarding its spending. Lessons from prior years indicate that the economy can fluctuate from growth to recession and back again. Fortunately, the City has very healthy reserves that have grown year after year. As of March 31, 2026, the current spendable reserves were approximately $24.8M, or 157% of FY 2026-27 General Fund proposed expenditures, in the following funds:

General Fund $3,576,000
Emergency Reserve $10,068,000

Agenda Item No. 13 May 5, 2026 | 2
General Fund Budget Reserve $4,892,000
Capital Outlay Reserve (COR)* $3,218,000
Civic Center Replacement $3,095,000
Total: $24,849,000
*COR is currently awaiting a $2 million reimbursement from the federal government. This reimbursement is tied to the City’s recently completed median improvement project, which qualified for federal funding support.

The General Fund Budget Reserve, Capital Outlay Reserve, and Civic Center Replacement funds hold General Fund money set aside by the City Council for various reasons, so they are not restricted by an outside agency.

Ten-Year General Fund Financial Forecast
The 10-year General Fund forecast compares projected revenues and expenditures from FY 2026– 27 through FY 2035–36. The forecast begins with a budget surplus of $68,000 in FY 2026–27, with revenues of $15.87 million and expenditures at $15.8 million. Over the next three years, expenditures are projected to slightly outpace revenues. Beginning in FY 2030–31, however, projected revenues begin to exceed expenditures, with the gap widening each year. By FY 2035–36, revenues are anticipated to reach $19.9 million compared to $19.3 million in expenditures, resulting in a projected surplus of approximately $655,000.

It’s important to note that a projected budget deficit in the financial forecast does not mean the City will actually experience a deficit. In fact, any shortfall reflected in the forecast is largely self-imposed, primarily due to the annual discretionary transfers of $400,000 to other funds, and no forecasted deficit in any year is expected to exceed this amount.

Draft FY 2026-27 Budget
Projected General Fund Revenues
Estimated FY 2026-27 General Fund revenues are $15,869,064, a 2.9% increase over projected FY 2025-26 revenues. The City’s five largest revenue categories are Property Tax, Transaction and Use Tax (Measure JJ), Sales Tax, Utility Users Tax, and Transient Occupancy Tax (hotel tax), not including interfund transfers.

Revenue Category FY25-26 Projected FY26-27
Proposed
% Change
Property Tax $5,132,000 $5,331,200 3.9%
Transaction & Use Tax $2,216,200 $2,265,000 2.2%
Sales Tax $1,921,000 $1,962,000 2.1%
Interfund Transfers $1,483,000 $1,539,064 3.8%
Utility Users Tax $1,160,000 $1,220,000 5.2%
Transient Occupancy Tax $640,000 $668,000 4.4%
Use of Money and Property $563,200 $572,100 1.6%
Charges for Services $553,100 $553,100 0.0%
Licenses and Permits $502,900 $519,900 3.4%
Franchise Fees $465,000 $465,000 0.0%
Residual Property Tax $352,000 $352,000 0.0%
Other Revenues $263,800 $265,600 0.7%
Fines & Forfeitures $100,100 $100,100 0.0%
Intergovernmental $72,700 $56,000 -23.0%
Total Revenue Source: $15,425,000 $15,869,064 2.9%

Agenda Item No. 13 May 5, 2026 | 3
The following is a summary of the five largest revenue categories:
• Property Tax – Property tax revenues have continued to perform strongly, with staff projecting a modest increase of 3.5% compounded growth from the Fiscal Year 2024-25 actual property tax revenues. Property taxes are based on the taxable assessed values of property, which, due to Proposition 13, are frequently much lower than market values. Moreover, the city participates in the Teeter plan, which ensures that the County of Orange compensates the City for property taxes regardless of any delinquent payments. • Transactions and Use Tax – The revised estimate from the City’s tax consultant reflects an increase of $16,500 over the FY 2025 actuals (and a 2.2% increase over the FY 2026 estimate). It remains a critical part of the City’s revenue sources, consistently outperforming the Bradley-Burns 1% sales tax revenue.
• Sales Tax – Sales tax revenues have remained flat over the past two and a half years, both statewide and locally. For FY 2027, estimates include an additional $50,000 in bulk fuel revenues to account for inflation, as the longstanding $200,000 annual estimate has consistently been exceeded.
• Utility Users Tax (UUT) – Staff anticipates a 5.2% increase in UUT revenues over the FY 2026 budget amount. UUT revenue tends to fluctuate year to year, and the FY 2027 estimate is slightly below the FY 2025 actual amount received.
• Transient Occupancy Tax (TOT or Hotel tax) – Staff initially projected $640,000 in revenue for Fiscal Year 2025-26, but it appears the actual amounts are going to exceed the $640,000 estimate. Based on actual trends, the City has budgeted $668,000 for the upcoming fiscal year.

Other significant revenue changes include:
• Licenses and Permits are projected to increase by 3.4%, with an additional $17,000 added to the prior year budget of $300,000 for business licenses. Although FY 2024–25 actual receipts were $345,000, staff is recommending a conservative estimate of $317,000 for FY 2026–27 due to revenue fluctuations.
• Delays in the billboard and other Community Development projects anticipated in FY 2026 have resulted in lower-than-projected revenues compared to assumptions made during the May 2025 budget process. However, the City remains optimistic that these revenues will be realized with the opening of new businesses and the expected completion of the billboard project later this year.

Projected General Fund Expenditures
Staff has drafted a budget using a status quo approach, with programs and activities similar to those planned in the previous budget. Therefore, estimated FY 2026-27 General Fund expenditures and transfers are $15,800,623, a 2.5% increase over projected FY 2025-26 expenditures and transfers.

Category FY 25-26 Projected Draft FY 26-27 Budget %
Personnel $9,717,614 $10,031,158 3.

Maintenance & Operations (M&O) $3,868,700 $3,823,465 (1 Internal Service $1,331,100 $1,451,500 9.

Subtotal $14,917,414 $15,306,123 2.

Transfers $494,500 $494,500 0.

Grand Total: $15,411,914 $15,800,623 2.

Consequently, a surplus of $68,441 is estimated for FY 2026-27. This is slightly higher than the

Agenda Item No. 13 May 5, 2026 | 4
budget surplus for FY 2025-26 surplus of $13,086.

Category FY 25-26 Projected Draft FY 26-27 Budget %
Total Revenues $15,425,000 $15,869,064 2
Total Expenditures $15,411,914 $15,800,623 2
Surplus (Deficit): $13,086 $64,441 42
Personnel Changes
Personnel costs make up 63.5% of the draft FY 2026–27 General Fund budget. The draft reflects a

3.2% increase in personnel expenses compared to the prior year, driven primarily by second-year adjustments under the three-year labor agreement. This agreement includes a 4% cost-of-living adjustment effective July 2026 (FY 2026–27), which was approved by the City Council on May 6, 2025. Other than routine merit-based salary increases and minor staffing allocation adjustments, the draft budget does not include any significant changes to overall staffing levels. The Custodian position was removed from personnel costs, and a contract amount has been added to maintenance and operations.

Maintenance and Operations
The Draft FY 2026-27 General Fund Budget allocates 25% to Maintenance and Operations costs, marking a 1.2% decrease from the previous year while maintaining the same level of service and service quality. Despite this being a status quo budget, it is important to highlight several key changes and new expenses outlined in the draft FY 2026-27 Budget:
• Reduction of $40,000 in the Management Services budget, reflecting the completion of the Citywide Fee Study (October 2025) and City Manager recruitment completed in summer 2025. • Addition of $15,000 for Orange County Registrar's elections costs associated with the November 2026 La Palma City Council election.
• Reallocated meetings and training budgets to funds outside the General Fund, reducing the General Fund impact by approximately $42,000, across all City departments. • Additional $12,000 in the Information Technology budget for ongoing software support and contracts.
• Increased costs of approximately $12,000 for Police Department body-worn and in-car camera system video redaction services.
• Added $25,000 in upfront costs for emergency 911 communications services and software, to be offset by a California Office of Emergency Services (Cal OES) grant. • Transitioned back to contracted custodial services, increasing the Public Works M&O budget by $70,000.
• Additional $13,000 allocated across multiple department budgets to cover increased vehicle operating expenses.
• Allocated an additional $9,000 for the Veterans Day event to be held in November of each year.

Internal Service Funds Changes
Internal Service Funds, representing approximately 9% of the draft FY 2026–27 budget, are used to manage costs for services provided internally across departments on a cost-reimbursement basis.

These funds—including Insurance, Vehicle Replacement, Technology Replacement, and Capital Outlay—are projected to increase by 9% compared to the prior year.

While Insurance and Vehicle Replacement costs are projected to rise, the Technology Replacement fund remains well-positioned due to prior allocations and strategic investments, allowing for more efficient and flexible use of IT resources. Additionally, if approved, the Vehicle Replacement Fund will

Agenda Item No. 13 May 5, 2026 | 5
receive supplemental funding to support the purchase of four new vehicles for Public Works, Community Services, and the Police Department, further offsetting upfront and ongoing vehicle costs.

Internal Service Funds FY 25-26 Projected Draft FY 26-27 Budget % Change Insurance $958,800 $1,043,100 8.8%
Technology Replacement $187,500 $187,500 0.0%
Vehicle Replacement $173,800 $210,900 21%
Capital Outlay $11,000 $10,000 (9.1%)
Total: $1,331,100 $1,451,500 9.0%
General Fund Transfers
Similar to the prior fiscal year, the draft FY 2026–27 Budget includes $494,500 in transfers out. These transfers provide 50% funding for a School Resource Officer (SRO) and include allocations to the Capital Outlay Reserve Fund and the Civic Center Replacement Fund.

Transfers Out FY 25-26 Projected Draft FY 26-27 Budget % Chang Capital Outlay Reserve Fund $350,000 $350,000 0%
Civic Center Replacement Fund $50,000 $50,000 0%
SRO Fund $94,500 $94,500 0%
Total: $494,500 $494,500 0%
Special Revenue Funds
Special revenue funds are used to account for revenues that are legally restricted to specific purposes, such as public safety and road maintenance. Key highlights of the draft FY 2026–27 Budget include:
• Ongoing costs for the Police Department’s body-worn camera program and in-car video system in the Supplemental Law Enforcement Services Fund ($40,000 total). • Funding for 50% of the cost to replace the Police Department’s mobile device units in patrol vehicles in the Supplemental Law Enforcement Services Fund ($40,000 total). • Purchase of miscellaneous SWAT equipment for new team members in the Asset Seizure Fund ($8,000).

Capital Improvement Program
As part of the annual budget process, staff develops a ten-year Capital Improvement Plan (CIP) with a five-year CIP included in the draft and adopted budget. The CIP lists the major infrastructure projects planned for the subsequent fiscal year and four additional future years. In addition to listing the specific projects and their estimated cost, funding sources are identified. Generally, the City focuses its CIP on arterial and residential roadway rehabilitation (i.e., paving projects). However, the CIP also lists major projects such as water and sewer system upgrades, intersection improvements, or major repairs to City facilities (e.g., roof replacement, Americans with Disability Act required improvements, seismic improvements, etc.).

Highlights of the draft FY 2026-27 Capital Improvement Plan include:
• Continued progress on the City Yard renovation, including storage upgrades, roof repairs, storm drains, painting, pavement, and EV charging stations. • Ongoing collaboration with neighboring cities on the design, engineering, and environmental costs associated with the expansion of the Del Amo Avenue Bridge. • Interior refurbishment of the Police Department will include upgrades to office spaces, common areas, and facility finishes to improve functionality, appearance, and overall working conditions. The City has received Federal grant funding to pay $850,000 of the construction

Agenda Item No. 13 May 5, 2026 | 6
costs. The funding allocated in this year’s budget is expected to support the design phase of the project, which is not grant-funded.
• Community Center refurbishments, including public restrooms and other recreational areas of the facility that are in need of rehabilitation.
• Ongoing maintenance and repairs for various water and sewer system projects to ensure reliable service delivery and maintain infrastructure integrity. • Street rehabilitation on Valley View (grant pending), and Moody & Walker Streets. • Parks improvements and renovations at Central Park playgrounds (grant pending). • Utility upgrades for the Walker Well and City Yard booster stations include water pump motor controller upgrades, a pump replacement for the Walker Well, the City Yard reservoir rehabilitation, and large meter replacements throughout the City. • Street banner replacements for arterial street banner poles.

General Fund Unreserved Fund Balance Recommendation
The General Fund unreserved fund balances was $3,176,901 (in excess of the $1,500,000 required for cash flow) as of June 30, 2025. The General Fund surplus for Fiscal Year 2024-25 was $2.1 million. The Police, Public Works, and Community Services Departments would like to replace some aging vehicles (two patrol vehicles, an arrow board truck for Water Division, and a pickup truck for Community Services). Staff recommends allocating the $2.1 million surplus as follows:
• $525,000 to the Emergency Reserve in compliance with the Fund Balance Policy (25% requirement),
• $538,000 to the Vehicle Fund for the purchase of two police patrol vehicles, one Public Works vehicle, and one Community Services vehicle; and
• $1 million to increase the Cash Flow Reserve from $1,500,000 to $2,500,000. The updated reserve policy would be included in the 26/27 budget book for consideration at the June 2026 City Council Meeting.

FISCAL IMPACT:

The only fiscal impact would be the transferring of funds from the General Fund Unreserved Fund Balance of $2.1 million to the Emergency Reserve Fund ($525,000), Vehicle Replacement Fund ($538,000), and $1 million to increase the Cash Flow Reserve from $1,500,000 to $2,500,000. Other than that, there is no fiscal impact in discussing the financial situation or the elements presented in this plan. Direction given, however, will be incorporated into the budget for consideration at the June 2, 2026 City Council Meeting.

ATTACHMENTS:

1. Ten-Year General Fund Financial Forecast

2. Draft FY 2026-27 Budget General Fund Summary

GENERAL FUND: 10-YEAR FORECAST
FISCAL YEAR 25-26
Projected
26-27
Proposed
27-28 28-29 29-30 30-31 31-32 32-33 33-34 34-35 35-36
Revenues 15,425,000 15,869,064 16,326,565 16,732,355 17,150,341 17,581,021 18,024,697 18,481,880 18,942,894 19,428,168 19,928,253 Expenditures 15,411,914 15,800,623 16,352,053 16,879,411 17,179,470 17,473,848 17,818,854 18,170,845 18,531,227 18,897,627 19,272,525 Surplus/(Deficit) 13,086 68,441 (25,488) (147,056) (29,129) 107,173 205,843 311,035 411,667 530,541 655,728 Transfers Out (COR & CCRF) 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 Surplus/(Deficit) excluding
Transfers out
413,086 468,441 374,512 252,944 370,871 507,173 605,843 711,035 811,667 930,541 1,055,728 $15.4
$15.9
$16.3
$16.7
$17.2
$17.6
$18.0
$18.5
$18.9
$19.4
$19.9
$15.4
$15.8
$16.4
$16.9
$17.2
$17.5
$17.8
$18.2
$18.5
$18.9
$19.3
$15.0
$16.0
$17.0
$18.0
$19.0
$20.0
25-26
Projected
26-27
Proposed
27-28 28-29 29-30 30-31 31-32 32-33 33-34 34-35 35-36
Millions

DRAFT FY 2026-27

GENERAL FUND BUDGET SUMMARY

Revenues
Expenses by Department

Category
FY 2025-26
Projected
FY 2026-27
Draft
% Change
Property Tax $ 5,132,000 $ 5,331,200 3.9%
Transaction & Use Tax $ 2,216,200 $ 2,265,000 2.2%
Sales Tax $ 1,921,000 $ 1,962,000 2.1%
Interfund Transfers $ 1,483,000 $ 1,539,064 3.8%
Utility Users Tax $ 1,160,000 $ 1,220,000 5.2%
Transient Occupancy Tax $ 640,000 $ 668,000 4.4%
Use of Money and Property $ 563,200 $ 572,100 1.6%
Charges for Services $ 553,100 $ 553,100 0.0%
Licenses and Permits $ 502,900 $ 519,900 3.4%
Franchise Fees $ 465,000 $ 465,000 0.0%
Residual Property Tax $ 352,000 $ 352,000 0.0%
Other Revenues $ 263,800 $ 265,600 0.7%
Fines & Forfeitures $ 100,100 $ 100,100 0.0%
Intergovernmental $ 72,700 $ 56,000 -23.0%
Total Revenue Source: $ 15,425,000 $ 15,869,064 2.9%
Department Division
FY 25-26
Projected
FY 26-27
Proposed
% Change
Management Services
City Council $ 155,752 $ 138,542 -11%
City Manager $ 701,964 $ 700,952 -0.1%
Legal Services $ 293,000 $ 269,900 -7.9%
City Clerk $ 164,758 $ 163,458 -0.8%
Total Management Services $ 1,315,475 $ 1,272,852 -3.2% Administrative Services
Administration $ 257,213 $ 242,320 -5.8%
Fiscal Services $ 483,972 $ 508,036 5.0%
Human Resources $ 3,007,238 $ 3,245,979 7.9%
Technology And Communications $ 371,192 $ 395,394 6.5%
Total Administrative Services: $ 4,119,616 $ 4,391,729 6.6% Police
Administration $ 762,755 $ 729,953 -4.3%
Operations $ 483,193 $ 504,441 4.4%
Patrol $ 2,847,805 $ 3,150,401 11%
Services $ 398,189 $ 411,098 3.2%
Community Education $ 84,120 $ 83,320 -1.0%
Investigations $ 794,305 $ 677,102 -15%
Records And Communications $ 874,960 $ 906,471 3.6%
Total Police: $ 6,245,326 $ 6,462,785 3.5%

Department Division
FY 25-26
Projected
FY 26-27
Proposed
% Change
Community Services
Administration $ 209,379 $ 135,699 -35%
Health And Wellness $ 143,900 $ 133,700 -7.1%
Recreation Facility Operations $ 334,037 $ 330,316 -1.1% Special Events $ 313,053 $ 272,210 -13%
Youth And Family $ 237,514 $ 237,586 0.0%
Total Community Services: $ 1,237,883 $ 1,109,510 -10%
Public Works
Administration $ 272,048 $ 282,807 4.0%
Citywide Maintenance $ 321,569 $ 320,753 -0.3%
Engineering $ 62,409 $ 75,554 21%
Parks And Medians $ 355,466 $ 368,017 3.5%
Streets $ 401,146 $ 403,793 0.7%
Total Public Works: $ 1,412,638 $ 1,450,923 2.7%
Community Development
Administration $ 160,468 $ 195,849 22%
Building & Safety $ 245,200 $ 246,200 0.4%
Code Enforcement And Business Licenses $ 151,808 $ 150,976 -0.5% Planning $ 29,000 $ 25,300 -13%
Total Community Development: $ 586,476 $ 618,325 5.4%
Other Financing Use
Transfers Out $ 494,500 $ 494,500 0.0%
Total Other Financing Use: $ 494,500 $ 494,500 0.0%
Total General Fund Expenditures: $ 15,411,914 $ 15,800,623 2.5%

Agenda Item No. 14 May 5, 2026 | 1
City of La Palma
Agenda Item No. 14
MEETING DATE: May 5, 2026
TO: City Council
FROM: City Manager
SUBMITTED BY: Jake Chavira, Acting Community Development and Public Works Director
AGENDA TITLE: Authorization for Vehicle Purchases
RECOMMENDED ACTION:

Authorize the purchase of four replacement vehicles for the Police, Public Works and Community Services Departments.

SUMMARY:

Staff have recommended allocating $538,000 of the Fiscal Year 2024-25 General Fund surplus of $2.1 million for the replacement of four critical City vehicles. The proposed vehicle replacements are:
• Two Police Patrol Vehicles
• One Public Works Water Division Arrow Board Truck
• One Community Services (Recreation) Pickup Truck
These replacements are necessary to maintain reliable service delivery, reduce maintenance costs, and ensure operational efficiency across departments.

In an effort to secure current vehicle pricing, particularly given the tight acquisition timeline, staff coordinated with the City Attorney and confirmed that the vehicle purchases could be scheduled on the same agenda immediately following City Council action to transfer a portion of the Fiscal Year 2024-25 General Fund surplus of $2.1 million in the amount of $538,000 to the Vehicle Maintenance and Replacement Fund. Should the City Council choose to direct the surplus funds elsewhere, the vehicle purchases would not occur.

The City proposes to procure the vehicles through a cooperative purchasing agreement with Enterprise Fleet Management, Inc. With orders placed in May 2026, the vehicles will not be delivered until the next fiscal year, so the Fiscal Year 2026-27 Budget will include the appropriations for these purchases.

An agreement with Enterprise Fleet Management, Inc. can be executed without going through the traditional bidding process by piggybacking off an existing Sourcewell (formerly NJPA) competitively bid contract for Fleet Management Services (RFP #060618). Sourcewell is a cooperative purchasing

Agenda Item No. 14 May 5, 2026 | 2
agency that enables member agencies to procure goods and services on an “as-needed” basis from pre-qualified vendors.

The City is an active member of Sourcewell, and Enterprise Fleet Management, Inc. has been awarded a contract through this competitive process. Therefore, the City may enter into an agreement with Enterprise pursuant to Sourcewell Contract #060618-EFM.

Utilizing this cooperative agreement allows the City to streamline procurement, ensure competitive pricing, and expedite vehicle acquisition timelines.

FISCAL IMPACT:

The purchase of the four replacement vehicles, in the total amount of $538,000, is contingent upon the City Council's approval of allocating a portion of the Fiscal Year 2024-25 surplus to the Vehicle Maintenance and Replacement Fund in the prior agenda item (Item #13). If the City Council approves the allocation, funding for the vehicle purchases will be included in the Fiscal Year 2026-27 Budget.

ENVIRONMENTAL IMPACT:

The approval of the vehicle purchases is not a project for purposes of the California Environmental Quality Act (CEQA) pursuant to Cal. Pub. Res. Code § 21065 and pursuant to CEQA Guidelines 15306 and 15061(b)(3) as basic data and information collection and as it can be seen with certainty that this activity will not have a significant effect on the environment.

ATTACHMENTS:

None