Agenda packet, regular meeting, first session — Laguna Beach City Council, December 9, 2025 (part 4 of 11)

2. The fee revenue must be segregated from the General Fund in order to avoid the commingling of public improvement fees and General Fund revenues.

3. If the City has had possession of funds generated by development impact fees for five years or more, and has not spent such funds, or committed such funds to a project, it must make certain findings describing the continuing need to retain those funds. If the local jurisdiction is unable to make the findings required by state law, the City must refund the fees to property owners.

4. An annual report must be made of fees collected, interest earned, projects on which fees were expended, and any transfers or loans from the fee account. The report must be presented to the agency’s governing board within 180 days of the end of the fiscal year.

The Annual Development Impact Fees and Sewer Connection Fees Report presented in Exhibit A summarizes the Fiscal Year 2024-25 fund activity for the following: Library Impact Fees (Fund 110), Parking In-Lieu Certification Fees (Fund 120), Park and Recreation Dedication In-Lieu Fees (Fund 122), Art In-Lieu Fees (Fund 123), Drainage Fees (Fund 124), Housing In-Lieu Fees (Fund 127), and the Sewer Connection Fees (Funds 137/637). The report shows the amount of fees collected during Fiscal Year 2024- 25, interest income, a brief description of the projects funded, the percentage of the projects funded by the development fees, and the beginning and ending balance of the funds. The plan to expend any unexpended funds for the various fees is also outlined in the attached report.” The findings required to be made by AB 1600 with respect to unexpended fees as of June 30, 2025, are set forth below:

1. The purposes for which these fees have been collected are for the projects identified in the Annual Financial Report of Development Impact Fees.

2. There is a reasonable relationship between the fees and the purposes for which they have been collected. The fees are necessary to mitigate the impacts of development.

3. For projects that remain incomplete as of June 30, 2025, the approximate timing for the completion of these projects is set forth in the Annual Financial Report of Development Impact Fees. The source of funding to complete these projects are existing reserves of the related funds and development impact fees anticipated to be collected in future fiscal years in amounts enough to complete these projects.

4. The City Council finds that although not yet committed to a specific project, the City needs to continue to retain the funds held in the following funds to fund future facility projects once enough funding is accumulated: Library Impact Fees (Fund 110), Parking In-Lieu Certification Fees (Fund 120), Art In-Lieu Fees (Fund 123), Drainage Fees (Fund 124), and Housing In-Lieu Fees (Fund 127).
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APPROVE RESOLUTION TO RECEIVE AND FILE FISCAL YEAR 2024-25 DEVELOPMENT

IMPACT FEE REPORT AND MAKE CERTAIN FINDINGS PURSUANT TO GOVERNMENT CODE SECTION 66000, ET SEQ.

December 9, 2025

Page 3 of 3 ends

Based on the foregoing, the City is not required to refund any fees collected pursuant to the requirements of AB 1600.

FINANCIAL ANALYSIS
There is no fiscal impact as a result of this action.

ENVIRONMENTAL ANALYSIS
This item is not a project under the California Environmental Quality Act (“CEQA”) pursuant to Section 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment).

ATTACHMENTS

1. Resolution (Pgs. 4-8)

2. Exhibit A to Attachment 1–Annual Development Impact Fees and Sewer Connection Fee Report (Pgs. 9-23)
Submitted By: Michelle Bannigan Approved: .David A Kiff Michelle Bannigan, Finance
Director Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Michelle Bannigan, Finance Director, Finance
Jane Abzug, Assistant City Attorney
Matthew Schneider, Director of Community
Development
Louie Lacasella, Senior Administrative Analyst
Mark McAvoy, Director of Public Works & Utilities
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RESOLUTION NO. 25.XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA BEACH, CALIFORNIA, TO RECEIVE AND FILE THE
FISCAL YEAR 2024-25 DEVELOPMENT IMPACT FEE REPORT

AND MAKE CERTAIN FINDINGS, AS REQUIRED BY
CALIFORNIA GOVERNMENT CODE SECTION 66000 et seq.

WHEREAS, in 1999, the City Council approved Ordinance No. 1351 establishing a library impact fee to provide for acquiring, building, improving, expanding, maintaining, and operating public libraries located within the City, and
WHEREAS, the demand and need for such facilities and services results directly from the increase in density in the City by the development of land that was previously vacant or by the construction of additional residential units on land that is already developed; and WHEREAS, Laguna Beach Municipal Code Section 25.52.006 (E) requires an in-lieu parking certificate for areas designated by the City Council to be hardship areas and for which special districts are formed for the purpose of providing central or common parking facilities and/or improving public transit; and
WHEREAS, in 1999, the City Council adopted Ordinance No. 1352 to require that five acres of property for each one thousand persons residing within the City be devoted to local park and recreational purposes through either dedication of land, payment of a park and recreation inlieu fee, or both, at the option of the City, to be used for the purpose of providing park or recreation facilities reasonably related to the subdivision; and
WHEREAS, in 1986, the City Council adopted Ordinance No. 1119 to require certain development projects either provide artwork or pay an in-lieu fee that will be used to provide sites for and works of art in public places; and
WHEREAS, in 1982, the City Council adopted Ordinance No. 1027 to establish a drainage Attachment 1
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fee on development projects to provide for improving and expanding drainage facilities located within the City; and
WHEREAS, Laguna Beach Municipal Code Section 25.96.070 established a housing inlieu fee to develop housing that would be affordable to households of extremely low, very low, low, or moderate incomes, meet the City’s regional share of housing needs, and implement the goals and objectives of the General Plan and Housing Element; and WHEREAS, on June 25, 2024, the City Council approved Resolution No. 24.047 adopting the Fiscal Year 2024-25 Budget; and
WHEREAS, California Government Code Section 66006(b) requires that for each separate account or fund established for the collection and expenditure of Development Impact Fees, the City shall make available to the public within one hundred eighty (180) days after the last day of each fiscal year a report; and
WHEREAS, California Government Code Section 66006(b)(2) requires that the City review the information made available to the public at a regularly scheduled public meeting after the information is made available to the public; and
WHEREAS, this report was filed with the City Clerk’s office and available for public review on November 21, 2025; and
WHEREAS, the City has complied with all the foregoing provisions.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:

SECTION 1: That the City Council of the City of Laguna Beach at a public meeting has reviewed the following information, attached as “Exhibit A”, pursuant to California Government Code Section 66006(b)(1), as required by California Government Code Section 66006(b)(2), including:
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a) A brief description of the type of fee in the account or fund; b) The amount of the fee;
c) The beginning and ending balance of the account or fund; d) The amount of fees collected, and the interest earned; e) An identification of each public improvement on which fees were expended and the amount of the expenditure of each improvement, including the total percentage of the cost of the public improvement that was funded with fees; f) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in Section 66001(a)(2), and the public improvement remains incomplete;
g) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan; and h) The amount refunds made pursuant to Section 66001(e) and any allocations pursuant to Section 66001(f).

SECTION 2: That the City Council of the City of Laguna Beach at a public meeting has reviewed the proposed findings for unexpended funds, including:
1) Identifying the purpose to which the fee is to be put; 2) Demonstrating a reasonable relationship between the fee and the purpose for which it is charged;
3) Identifying all sources and amounts of funding anticipate to complete financing in incomplete improvements; and
4) Designating the approximate dates on which the funding referred to in subparagraph (c) is expected to be deposited into the appropriate account or fund.

SECTION 3: That the City Council of the City of Laguna Beach hereby determines that all reportable fees, collections, and expenditures have been received, deposited, invested, and expended in compliance with the relevant sections of the California Government Code and all other applicable laws for Fiscal Year 2024-25.

SECTION 4: That the City Council of the City of Laguna Beach hereby determines that no refunds and allocations of reportable fees, as required by California Government Code Section 66001, are deemed payable at this time.

SECTION 5. That the City Council of the City of Laguna Beach hereby determines that 6 6 of 445
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the City is in compliance with California Government Code Section 66000, et seq., relative to receipt, deposit, investment, expenditure, or refund of reportable fees received and expended relative to city facilities for new development for Fiscal Year 2024-25.

SECTION 6: The City Clerk shall certify as to the adoption of this Resolution.

ADOPTED this 9th day of December, 2025.
, Mayor
ATTEST:

Ann Marie McKay, City Clerk

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I, Ann Marie McKay, City Clerk of the City of Laguna Beach, certify that the foregoing Resolution No. 25.XXX was duly adopted at a regular meeting of the City Council of said City held on December 9, 2025, by the following vote:

AYES: COUNCILMEMBER(S):

NOES: COUNCILMEMBER(S):

ABSENT: COUNCILMEMBER(S):

ABSTAIN: COUNCILMEMBER(S):
____________________________________________
City Clerk of the City of Laguna Beach, CA
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CITY OF LAGUNA BEACH

ANNUAL DEVELOPMENT

IMPACT FEES AND SEWER

CONNECTION FEE REPORT
Exhibit A
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Table of Contents
Letter of Transmittal .................................................................................................................. i

INTRODUCTION
Legal Requirement for Development Impact Fee Reporting ................................................ 1 Description and Purpose of Development Impact Fees........................................................ 2 Description and Purpose of Sewer Connection Fee ............................................................ 3 Fee Schedule ...................................................................................................................... 4

FINANCIAL SUMMARY REPORT
Summary Report – Development Impact/Sewer Connection Fees ...................................... 7

NOTE TO THE DEVELOPMENT IMPACT FEE REPORT
Note 1 – Refund of Developer Fee ...................................................................................... 9

DEVELOPMENT IMPACT FEE AND
SEWER CONNECTION FEES PROJECTS IDENTIFICATION ............................................10 10 10 of 445
11 11 of 445

INTRODUCTION

LEGAL REQUIREMENTS FOR DEVELOPMENT IMPACT FEE REPORTING A. California Government Code Section 66006 (b)
Government Code Section 66006 (b) defines the specific reporting requirements for local agencies that impose AB 1600 DIF on new development. Annually, for each separate fund established for the collection and expenditure of DIFs, the local agency shall, within 180 days after the last day of each fiscal year, make available to the public the information shown below for the most recent fiscal year.
• A brief description of the fee in the account or fund. • The amount of the fee.
• The beginning and ending balance of the account or fund. • The amount of the fees collected, and the interest earned. • An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. • An identification of an approximate date by which the construction of the public improvement will commence, if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement. • An identification of each public improvement identified in a previous report as “incomplete” and whether construction began on the approximately date noted in the previous report. If construction did not commence by the approximate date provided in the previous report, the reason for the delay and a revised approximate date that the local agency will commence construction.
• A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan. • The amount of refunds made, and the number of persons or entities identified to receive those refunds due to insufficient funds being collected to complete financing on incomplete public improvements, and the amount of reallocation of funds made due to administrative costs of refunding unexpended revenues exceeding the amount to be refunded.

B. California Government Code Section 66001 (d)
For all funds established for the collection and expenditure of DIFs, Government Code Section 66001 (d) has additional requirements. For the fifth fiscal year following the first deposit into the fund and every five years thereafter, the local agency shall make all of the following findings with respect to that portion of the fund remaining unexpended, whether committed or uncommitted:
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• Identify the purpose for which the fee is to be put.
• Demonstrate a reasonable relationship between the fee and purpose for which it is charged.
• Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements.
• Designate the approximate dates on which the funding is expected to be deposited into the appropriate account or fund.

C. Additional Notes
The State of California Government Code Section 66002 states that local agencies that have developed a fee program may adopt a Capital Improvement Program (CIP) indicating the approximate location, size, and timing of projects, plus an estimate for the cost of all facilities or improvements to be financed by fees.

DESCRIPTION AND PURPOSE OF DEVELOPMENT IMPACT FEES
The City collects DIFs to offset and address the impacts of new development on facilities and infrastructure. Currently, there are six DIF categories. While each fee category has its own methodology for determining fees, two main principles apply throughout:
1) The City aims to maintain the existing level of service as the City continues to grow; and 2) New development should pay its fair share of the City’s infrastructure needs.

Library Impact Fee – The City Council adopted Ordinance No. 1351 in 1999 (Laguna Beach Municipal Code Chapter 25.85 to provide for acquiring, building, improving, expanding, maintaining, and operating public libraries located within the City, including, but not limited to the purchase of books, reference materials, equipment, furnishings, and other necessary supplies.

The demand and need for such facilities and services results directly from the increase in density in the City by the development of land that was previously vacant or by the construction of additional residential units on land that is already developed.

Parking In-Lieu Certification Fee –Laguna Beach Municipal Code Section 25.52.006 (E) requires an in-lieu parking certificate for areas designated by the City Council to be hardship areas and for which special districts are formed for the purpose of providing central or common parking facilities and/or improving public transit. The City Council may grant relief from the City’s parking requirements to the extent the private property owner or lessee participates in or contributes to parking in the central facility and/or improving public transit by acquiring in-lieu parking certificates equivalent to the number of spaces required for his or her individual development, up to a maximum of three certificates for any one site, except as otherwise described in the Laguna Beach Municipal Code.

Park and Recreation Dedication In-Lieu Impact Fee – The City Council adopted Ordinance No. 1352 in 1999 (Laguna Beach Municipal Code Section 21.08.130) to require that five acres of property for each one thousand persons residing within the City be devoted to local park and recreational purposes. Therefore, as a condition of approval of a final map or parcel map, the 13 13 of 445
developer shall dedicate land, pay a fee in lieu thereof, or both, at the option of the City, to be used for the purpose of providing park or recreation facilities reasonably related to the subdivision.

Art In-Lieu Fee – The City Council adopted Ordinance No. 1119 in 1986 (Laguna Beach Municipal Code Chapter 1.09) to require certain development projects either provide artwork or pay an inlieu fee that will be used to provide sites for and works of art in public places.

Drainage Impact Fee – The City Council adopted Ordinance No. 1027 in 1982 (Laguna Beach Municipal Code Section 25.53.008 to provide for improving and expanding drainage facilities located within the City.

Housing In-Lieu Impact Fee –Laguna Beach Municipal Code Section 25.96.070 established a Citywide inclusionary housing program that provides requirements and procedures to develop housing that would be affordable to households of extremely low, very low, low, or moderate incomes, meet the City’s regional share of housing needs, and implement the goals and objectives of the General Plan and Housing Element. To comply with the City’s inclusionary housing requirements, applicants may pay a housing in-lieu fee. Housing in-lieu fees may be expended for any costs directly related to the production or preservation of affordable housing in the City. These fees may also be used for City staff that conduct periodic inspections to ensure that the constructed inclusionary housing units comply with the affordable housing agreement, affordable housing site plan, including housing plan, affordable housing covenants, and all other City and zoning requirements.

DESCRIPTION AND PURPOSE OF SEWER CONNECTION FEE
The most recent sewer connection fee was approved by the City Council on June 25, 2025, with the adoption of Resolution No. 25.047. The purpose of the fee is to connect a structure to the public sewer system. Similar to California Government Code section 66006 (b). California Government Code section 66013 (d) defines the specific reporting requirements for local agencies that impose a fee for sewer connections. The local agency shall make available to the public, within 180 days after the last day of the fiscal year, the following information for that fiscal year:
• A description of the charges deposited in the fund.
• The beginning and ending balance of the account or fund and the interest earned from investment of moneys in the fund.
• The amount of charges collected in that fiscal year.
• An identification of each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the total percentage of the cost of the public improvement that was funded with those charges if more than one source of funding was used.
• An identification of each public improvement on which charges were expended that was completed during that fiscal year.
• Each public improvement that is anticipated to be undertaken in the following fiscal year.
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• A description of each interfund transfer or loan made from the capital facilities fund.

The information provided, in the case of an interfund transfer, shall identify the public improvements on which the transferred moneys are, or will be expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that fund will receive on the loan.

FEE SCHEDULE
The table below lists Fees in effect as of June 30, 2025.

Developer Impact Fees
Description Fee
Library Impact Fee $200 per each new residential unit
Parking In-Lieu Certification Fee $23,000.00
Park and Recreation Dedication In-Lieu Fee
(Pay fee equal to the value of land and based on
the average sales price per acre of vacant
residentially zoned property calculated annually
in January utilizing data from the preceding
three-year calendar period.)
1 dwelling unit per acre or more = 0.6% park
land
1 dwelling unit per 1/2 to 1 acre or more =

1.2% park land
1 dwelling unit per 10,000 square feet to 1/2
acre = 1.73% park land
1 dwelling unit per 9,000 to 9,999 square
feet = 2.7% park land
1 dwelling unit per 8,000 to 8,999 square
feet = 3.01% park land
1 dwelling unit per 7,000 to 7,999 square
feet = 3.4% park land
1 dwelling unit per 6,000 to 6,999 square
feet = 3.9% park land
1 dwelling unit per 5,000 to 5,999 square
feet = 4.58% park land
10 to 19 dwelling units per acre = 5.79%
park land
20 to 29 dwelling units per acre = 9.3% park
land
30 to 39 dwelling units per acre = 12.56%
park land
40 to 49 dwelling units per acre = 15.58%
park land
50 to 59 dwelling units per acre = 18.4%
park land
60 to 69 dwelling units per acre = 21.05%
park land
70 to 79 dwelling units per acre = 23.4%
park land
80 to 89 dwelling units per acre = 25.85%
park land
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Developer Impact Fees (continued)
Description Fee
90 to 99 dwelling units per acre = 28% park
land
100 dwelling units per acre and larger
=29.07% park land
Art In-Lieu Fee 1.25% of the total project valuation
Drainage Fee
North Local Drainage Area None
West Local Drainage Area None
Central Local Drainage Area
Dwelling, single-family The lessor of (a) $9,483 per dwelling or (b) $15,098 per gross acre prorated on the total
area of the lot.

Dwelling, two-family or multi-family The lessor of (a) $7,111 per dwelling or (b) $15,098 per gross acre prorated on the total
area of the lot.

Commercial, industrial $15,098 per gross acre prorated on the total area of the lot.

Housing In-Lieu Fee
Affordable Unit $348,197 per unit
Rental Affordable Unit $247,317 per unit
Converted or Demolished Residential Unit $221 per square foot 16 16 of 445
Sewer Connection Fee
The City’s sewer connection fee is applicable to all new residential, commercial, and industrial additions of 500 square feet and over as follows:

Fee
Single Family $4,722 per dwelling unit
$215 per 100 square feet
Multi-Family:

Condominiums $4,644 per dwelling unit
Apartments (2 units) $4,171 per dwelling unit
Apartments (3+ units) $3,827 per dwelling unit
Commercial: $4,722 per EDU* (as calculated below):

Light Strength EDUs= est. gpd**/(175 x 0.69)
Medium Strength EDUs= est. gpd**/(175 x 0.69)
Heavy Strength EDUs= est. gpd**/(175 x 0.69)
Hotel and Motel Units $1,500 plus $150 per 100 square feet of floor area per unit. Minimum $4,375
Car Wash $17,190 per connection
$8,590 per connection
Restaurants $2,970 plus $210 per 100 square feet of
floor area
Industrial $2,970 plus $210 per 100 square feet of
floor area
* = EDU = Equivalent Dwelling Unit
** = Applicant's estimated gallons per day of indoor water use.

Accessory Dwelling Units and
Additions/Remodels
Description
Car Wash which recycles 50% or
more water utilized on the operation
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Park and
Recreation Housing Sewer
Library Parking In-Lieu Dedication In-Lieu Art In-Lieu Drainage In-Lieu Connection Impact Fee Certification Fee Impact Fee Impact Fee Impact Fee Impact Fee Fee (Fund 110) (Fund 120) (Fund 122) (Fund 123) (Fund 124) (Fund 127) (Fund 137/637) Beginning Fund Balance 06/30/24 83,480.00 $ $ 1,010.22 $ 130,771.28 $ 395,790.59 $ 779,989.87 83,191.12 $ - $ Revenues
Developer Fees 200.00 - 104,502.53 - - - -
Sewer Connection Fees - - - - - 160,222.65 -
Interest Income - 28.00 2,886.46 12,828.34 2,306.14 21,622.12 -Other Revenue - - - 14,000.00 - - - Total Revenues 200.00 28.00 2,886.46 131,330.87 2,306.14 21,622.12 160,222.65 Expenditures
59616 Transfers out to CIP (NOTE 3) - - 86,600.00 - - - - 72085 Digital Research and Marketing - - - 29.00
72106 Public Art Projects - - - 24,283.00
C2112 Pipeline Rehab (Zone 5) - - - - - 160,222.65 -
Total Expenditures - - 86,600.00 24,312.00 - 160,222.65 - Ending Fund Balance (A) 06/30/25 83,680.00 $ $ 1,038.22 $ 47,057.74 $ 502,809.46 $ 801,611.99 85,497.26 $ - $ Five-Year Revenue Test:

Fiscal Year 2020/21 $ 6,400.00 $ 13.00 $ 9,340.00 $ 32,878.92 $ 1,077.00 $ 87,168.83 Fiscal Year 2021/22 1,200.00 10.00 6,978.00 10.00 804.00 3,830.97Fiscal Year 2022/23 800.00 12.00 1,825.00 71,596.84 986.00 3,334.46 Fiscal Year 2023/24 800.00 18.00 44,127.12 106,399.38 1,516.00 31,703.42Fiscal Year 2024/25 200.00 28.00 2,886.46 117,330.87 2,306.14 21,622.12 Total Revenue Received for Five-Year Period Ended 6/30/2025 (B) $ 9,400.00 $ 81.00 $ 65,156.58 $ 328,216.01 $ 6,689.14 $ 147,659.80 Development Impact Fees

CITY OF LAGUNA BEACH
Development Impact Fees/Sewer Connection Fees
Pursuant to Government Code Sections 66006 and 66013
as of June 30, 2025
Financial Summary Report of
7 18
Park and
Recreation Housing Sewer
Library Parking In-Lieu Dedication In-Lieu Art In-Lieu Drainage In-Lieu Connection Impact Fee Certification Fee Impact Fee Impact Fee Impact Fee Impact Fee Fee (Fund 110) (Fund 120) (Fund 122) (Fund 123) (Fund 124) (Fund 127) (Fund 137/637) Development Impact Fees

CITY OF LAGUNA BEACH
Development Impact Fees/Sewer Connection Fees
Pursuant to Government Code Sections 66006 and 66013
as of June 30, 2025
Financial Summary Report of
Unexpended Impact Fees and Interest in Excess of Total Receipts for Last Five Years (A) Less (B) $ 957.22 74,280.00 $ - $ 174,593.45 $ 78,808.12 $ 653,952.19 $ Committed to Capital Projects - Fiscal Year 2025/26 $ - -$ $ - -$ -$ -$ Amount in Excess of Allowed Deposit $ 74,280.00 $ 957.22 $ 174,593.45 - $ $ 653,952.19 78,808.12 $ Notes:
(2) - Fees have not been committed to a future project as of June 30, 2025, because the City is still accumulating sufficient revenue to fund the cost of new facilities.(1) - The five-year revenue test is met in accordance with Government Code Section 66001(d).(3) - The transfer to the Capital Improvement Fund (#616) was made to fund the Main Beach Park Renovation Project (C2004). (Refer to page 9 of this report.) 8 19

NOTE TO THE DEVELOPMENT IMPACT FEE REPORT
The note addresses an item required by California Government Code Section 66006 (b).

Note 1 – Refund of Developer Fee
At this time, all fees being collected pursuant to the DIF program have been earmarked for current or future capital projects necessary to maintain the current levels of services within existing service areas to serve new development.
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DEVELOPMENT IMPACT FEE AND SEWER CONNECTION FEES PROJECT

IDENTIFICATION
The DIF projects identification table illustrates the following reporting requirements defined by California Government Code Section 66006 (b):
• An identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.
• An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement.

SEWER CONNECTION FEES PROJECT IDENTIFICATION
The Sewer Connection Fee projects identification table illustrates the following reporting requirements defined by California Government Code Section 66013 (d):
• An identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.
• An identification of each public improvement that is anticipated to be undertaken in the following fiscal year.
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Estimated Estimated Budget Actual % Funded
Completion Project Through Through with Development
Project No. Project Name Project Phase Date Cost 6/30/2025 6/30/2025 % Complete Impact Fees Park and Recreation Dedication In-Lieu Fee Impact Fee (Fund 122) C2004 Main Beach Park Renovation Construction January 2026 1,642,365 $ 86,600$ $ 86,600 86.3% 5.3%

CITY OF LAGUNA BEACH
Development Impact Fees Project Identification
Fiscal Year Ended June 30, 2025
Development Impact Fees
11 22
Estimated Estimated % Funded
Completion Project with Sewer
Project No. Project Name Project Phase Date Cost Budget Actual % Complete Connection Fees Fiscal Year 2024/25
C2112 Pipeline Rehab (Zone 5) Completed April 2025 $ 166,164 $ 160,223 $ 160,223 100.0% 96.4% Project Planned for Fiscal Year 2025/26
C1807 Anita St Lift Station Reconstruction

CITY OF LAGUNA BEACH
Sewer Connection Fees Project Identification
Fiscal Year Ended June 30, 2025
Sewer Connection Fee Portion
12 23
ATTACHMENT 1
RESOLUTION NO. 25.XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

BEACH, CALIFORNIA, TO RECEIVE AND FILE THE FISCAL YEAR
2024-25 DEVELOPMENT IMPACT FEE REPORT AND MAKE CERTAIN

FINDINGS, AS REQUIRED BY CALIFORNIA GOVERNMENT CODE
SECTION 66000 ET SEQ.; AND FINDING THE ACTION IS NOT A

PROJECT WITHIN THE MEANING OF THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, Government Code Section 66000, et seq., requires local agencies to annually report certain financial information relating to capital improvement projects (streets, transit, facilities, parks, sewer, storm drains, etc.) that have been funded by development impact fees; and WHEREAS, Government Code Section 66000, et seq., generally contains four requirements: (1) a local jurisdiction must make certain determinations regarding the purpose and use of each development impact fee and establish a “nexus” or connection between a development project or class of projects and the public improvement being financed with the fee; (2) the fee revenue must be segregated from the General Fund in order to avoid commingling of the public improvement fees and General Fund revenues; (3) fees generated by development impact fees in possession of the local jurisdiction for five years or more must be committed to certain projects or certain findings must be made describing continued need to retain those funds to retain the funds; and (4) an annual report must be made of fees collected, interest earned, projects on which fees were expended, and transfers or loans from the fee account; and WHEREAS, the City desires to fulfill its obligations under Government Code Section 66000, et seq. by preparing the annual report on the fees collected, interest earned, projects on which fees were expended, and transfers or loans from the fee account; and WHEREAS, California Government Code Section 66006(b) requires that for each separate account or fund established for the collection and expenditure of development impact fees, the City shall make available to the public certain information within one hundred eighty (180) days after the last day of each fiscal year; and
WHEREAS, on June 25, 2024, the City Council adopted Resolution No. 24.047, thereby adopting the Fiscal Year 2024-25 Budget; and
WHEREAS, in accordance with Government Code Section 66006, the Fiscal Year 2024- 25 Annual Development Impact Fee and Sewer Connection Fee Report, which is attached hereto as Exhibit A and incorporated herein by reference (the “Annual Report”), was prepared; and WHEREAS, California Government Code Section 66006(b)(2) requires that the City review the Annual Report at a regularly scheduled public meeting after the information is made available to the public and certain notice is provided; and WHEREAS, the Annual Report was filed with the City Clerk’s office and made available for public review on November 21, 2025 and required notice was provided; and 24 of 445
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WHEREAS, the Annual Report addresses certain fees established by the City; and WHEREAS, in 1999, the City Council adopted Ordinance No. 1351 establishing a library impact fee to provide for acquiring, building, improving, expanding, maintaining, and operating public libraries located within the City, and
WHEREAS, the demand and need for such facilities and services results directly from the increase in density in the City by the development of land that was previously vacant or by the construction of additional residential units on land that is already developed; and WHEREAS, Laguna Beach Municipal Code Section 25.52.006 (E) requires an in-lieu parking certificate for areas designated by the City Council to be hardship areas and for which special districts are formed for the purpose of providing central or common parking facilities and/or improving public transit; and
WHEREAS, in 1999, the City Council adopted Ordinance No. 1352 to require that five acres of property for each one thousand persons residing within the City be devoted to local park and recreational purposes through either dedication of land, payment of a park and recreation inlieu fee, or both, at the option of the City, to be used for the purpose of providing park or recreation facilities reasonably related to the subdivision; and
WHEREAS, in 1986, the City Council adopted Ordinance No. 1119 to require certain development projects either provide artwork or pay an in-lieu fee that will be used to provide sites for works of art in public places and works of art themselves; and WHEREAS, in 1982, the City Council adopted Ordinance No. 1027 to establish a drainage fee on development projects to provide for improving and expanding drainage facilities located within the City; and
WHEREAS, Laguna Beach Municipal Code Section 25.96.070 establishes a housing inlieu fee to develop housing that would be affordable to households of extremely low, very low, low, or moderate incomes, meet the City’s regional share of housing needs, and implement the goals and objectives of the General Plan, including the Housing Element; and WHEREAS, on December 9, 2025, the City Council considered the Annual Report and its obligations under Government Code Section 66006 at a noticed and public meeting.

NOW, THEREFORE, the City Council of the City of Laguna Beach does hereby find, determine, and resolve as follows:

SECTION 1: The recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

SECTION 2: The City Council has reviewed the Annual Report, attached as Exhibit A, which includes the following information in accordance with Government Code Section 66000, et seq.:
a) A brief description of the type of fee in the account or fund; 25 of 445
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b) The amount of the fee;
c) The beginning and ending balance of the account or fund; d) The amount of fees collected, and the interest earned; e) An identification of each public improvement on which fees were expended and the amount of the expenditure of each improvement, including the total percentage of the cost of the public improvement that was funded with fees; f) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in Section 66001(a)(2), and the public improvement remains incomplete;
g) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan; and h) The amount refunds made pursuant to Section 66001(e) and any allocations pursuant to Section 66001(f).

SECTION 3: The City Council has reviewed the Annual Report, attached as Exhibit A, in accordance with Government Code Section 66000, et seq. and makes the following findings with respect to the unexpended fees as of June 30, 2025:
1) Identify the purpose to which the fee is to be put;
The purposes for which these fees have been collected are for the projects identified in the Annual Report.
2) Demonstrating a reasonable relationship between the fee and the purpose for which it is charged;
There is a reasonable relationship between the fees and the purposes for which they have been collected; the fees are necessary to mitigate the impacts of development. 3) Identifying all sources and amounts of funding anticipate to complete financing in incomplete improvements; and
For projects that remain incomplete as of June 30, 2025, the approximate timing for the completion of these projects is set forth in the Annual Report. The source of funding to complete these projects are existing reserves of the related funds and development impact fees anticipated to be collected in future fiscal years in amounts enough to complete these projects. 26 of 445
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4) Designating the approximate dates on which the funding referred to in subparagraph (3), above, is expected to be deposited into the appropriate account or fund.

The City Council finds that although not yet committed to a specific project, the City needs to continue to retain the funds held in the following funds to fund future facility projects once enough funding is accumulated: Library Impact Fees (Fund 110), Parking In-Lieu Certification Fees (Fund 120), Art In-Lieu Fees (Fund 123), Drainage Fees (Fund 124), and Housing In-Lieu Fees (Fund 127).

SECTION 4: The City Council hereby determines that all reportable fees, collections, and expenditures have been received, deposited, invested, and expended in compliance with the relevant sections of the California Government Code and all other applicable laws for Fiscal Year 2024-25.

SECTION 5: The City Council hereby determines that no refunds and allocations of reportable fees, as required by California Government Code Section 66001, are deemed payable at this time.

SECTION 6. The City Council hereby determines that the City is in compliance with California Government Code Section 66000, et seq., relative to receipt, deposit, investment, expenditure, or refund of reportable fees received and expended relative to city facilities for new development for Fiscal Year 2024-25.

SECTION 7: The City Council hereby finds that the adoption of this Resolution consists of organizational or administrative activities of the City that will not result in a direct or indirect physical change in the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; 14 CCR Section 15378(b)(5).) Here, the resolution addresses accounting requirements for the City for its development impact fees and does not result in any particular project.

SECTION 8: The Resolution is effective upon adoption. The City Clerk shall certify as to the adoption of this Resolution.

ADOPTED this 9th day of December, 2025.

Mayor
ATTEST:

City Clerk
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I, Ann Marie McKay, City Clerk of the City of Laguna Beach, certify that the foregoing Resolution No. 25.XXX was duly adopted at a regular meeting of the City Council of said City held on December 9, 2025, by the following vote:

AYES: COUNCILMEMBER(S):

NOES: COUNCILMEMBER(S):

ABSENT: COUNCILMEMBER(S):

ABSTAIN: COUNCILMEMBER(S):

City Clerk of the City of Laguna Beach, CA
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EXHIBIT A
(Annual Report)
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Exhibit A

CITY OF LAGUNA BEACH

ANNUAL DEVELOPMENT

IMPACT FEES AND SEWER

CONNECTION FEE REPORT
9 30 of 445
Table of Contents
Letter of Transmittal .................................................................................................................. i

INTRODUCTION
Legal Requirement for Development Impact Fee Reporting ................................................1 Description and Purpose of Development Impact Fees........................................................2 Description and Purpose of Sewer Connection Fee ............................................................3 Fee Schedule ......................................................................................................................4

FINANCIAL SUMMARY REPORT
Summary Report – Development Impact/Sewer Connection Fees ......................................7

NOTE TO THE DEVELOPMENT IMPACT FEE REPORT
Note 1 – Refund of Developer Fee ......................................................................................9

DEVELOPMENT IMPACT FEE AND
SEWER CONNECTION FEES PROJECTS IDENTIFICATION ............................................10 10 31 of 445
11 32 of 445

INTRODUCTION

The amount of the fee.

The beginning and ending balance of the account or fund.

The amount of the fees collected, and the interest earned.

An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. •
•
An identification of an approximate date by which the construction of the public improvement will commence, if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement.

An identification of each public improvement identified in a previous report as “incomplete” and whether construction began on the approximately date noted in the previous report. If construction did not commence by the approximate date provided in the previous report, the reason for the delay and a revised approximate date that the local agency will commence construction.
•
•
A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan.

The amount of refunds made, and the number of persons or entities identified to receive those refunds due to insufficient funds being collected to complete financing on incomplete public improvements, and the amount of reallocation of funds made due to administrative costs of refunding unexpended revenues exceeding the amount to be refunded.

Demonstrate a reasonable relationship between the fee and purpose for which it is charged.
•
•
Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements.

Designate the approximate dates on which the funding is expected to be deposited into the appropriate account or fund.

Park and Recreation Dedication In-Lieu Impact Fee – The City Council adopted Ordinance No. 1352 in 1999 (Laguna Beach Municipal Code Section 21.08.130) to require that five acres of property for each one thousand persons residing within the City be devoted to local park and recreational purposes. Therefore, as a condition of approval of a final map or parcel map, the 13 34 of 445
developer shall dedicate land, pay a fee in lieu thereof, or both, at the option of the City, to be used for the purpose of providing park or recreation facilities reasonably related to the subdivision.

The beginning and ending balance of the account or fund and the interest earned from investment of moneys in the fund.
•
•
The amount of charges collected in that fiscal year.

An identification of each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the total percentage of the cost of the public improvement that was funded with those charges if more than one source of funding was used.
•
•
An identification of each public improvement on which charges were expended that was completed during that fiscal year.

Each public improvement that is anticipated to be undertaken in the following fiscal year.
14 35 of 445
• A description of each interfund transfer or loan made from the capital facilities fund.

FEE SCHEDULE
The table below lists Fees in effect as of June 30, 2025.

Developer Impact Fees
Description Fee
Library Impact Fee $200 per each new residential unit
Parking In-Lieu Certification Fee $23,000.00
Park and Recreation Dedication In-Lieu Fee 1 dwelling unit per acre or more = 0.6% park (Pay fee equal to the value of land and based on land
the average sales price per acre of vacant 1 dwelling unit per 1/2 to 1 acre or more =

1.2% park land residentially zoned property calculated annually in January utilizing data from the preceding
three-year calendar period.) 1 dwelling unit per 10,000 square feet to 1/2 acre = 1.73% park land
1 dwelling unit per 9,000 to 9,999 square
feet = 2.7% park land
1 dwelling unit per 8,000 to 8,999 square
feet = 3.01% park land
1 dwelling unit per 7,000 to 7,999 square
feet = 3.4% park land
1 dwelling unit per 6,000 to 6,999 square
feet = 3.9% park land
1 dwelling unit per 5,000 to 5,999 square
feet = 4.58% park land
10 to 19 dwelling units per acre = 5.79%
park land
20 to 29 dwelling units per acre = 9.3% park
land
30 to 39 dwelling units per acre = 12.56%
park land
40 to 49 dwelling units per acre = 15.58%
park land
50 to 59 dwelling units per acre = 18.4%
park land
60 to 69 dwelling units per acre = 21.05%
park land
70 to 79 dwelling units per acre = 23.4%
park land
80 to 89 dwelling units per acre = 25.85%
park land
15 36 of 445
Developer Impact Fees (continued)
Description Fee
90 to 99 dwelling units per acre = 28% park
land
100 dwelling units per acre and larger
=29.07% park land
Art In-Lieu Fee 1.25% of the total project valuation
Drainage Fee
North Local Drainage Area
West Local Drainage Area
Central Local Drainage Area
Dwelling, single-family
None
None
The lessor of (a) $9,483 per dwelling or (b)
$15,098 per gross acre prorated on the total
area of the lot.

Dwelling, two-family or multi-family
Commercial, industrial
The lessor of (a) $7,111 per dwelling or (b)
$15,098 per gross acre prorated on the total
area of the lot.
$15,098 per gross acre prorated on the total
area of the lot.

Housing In-Lieu Fee
Affordable Unit
Rental Affordable Unit
Converted or Demolished Residential Unit
$348,197 per unit
$247,317 per unit
$221 per square foot
16 37 of 445
Sewer Connection Fee
The City’s sewer connection fee is applicable to all new residential, commercial, and industrial additions of 500 square feet and over as follows:

Description
Single Family
Fee
$4,722 per dwelling unit
Accessory Dwelling Units and
Additions/Remodels
Multi-Family:
$215 per 100 square feet
Condominiums
Apartments (2 units)
Apartments (3+ units)
$4,644 per dwelling unit
$4,171 per dwelling unit
$3,827 per dwelling unit
Commercial: $4,722 per EDU* (as calculated below):

EDUs= est. gpd**/(175 x 0.69)
EDUs= est. gpd**/(175 x 0.69)
EDUs= est. gpd**/(175 x 0.69)
Light Strength
Medium Strength
Heavy Strength
Hotel and Motel Units
Car Wash
$1,500 plus $150 per 100 square feet of
floor area per unit. Minimum $4,375
$17,190 per connection
Car Wash which recycles 50% or $8,590 per connection
more water utilized on the operation
Restaurants $2,970 plus $210 per 100 square feet of
floor area
Industrial $2,970 plus $210 per 100 square feet of
floor area
* = EDU = Equivalent Dwelling Unit
** = Applicant's estimated gallons per day of indoor water use. 17 38 of 445

28.00 28.00
2,886.46
-
12,828.34
14,000.00
2,306.14
2,306.14
21,622.12 -
- - -
Total Revenues 200.00 2,886.46 131,330.87 21,622.12
Expenditures
59616 Transfers out to CIP (NOTE 3)
72085 Digital Research and Marketing
72106 Public Art Projects
-
-
-
-
- 86,600.00 -
-
- - -
-
-
-
-
-
-

29.00 24,283.00
C2112 Pipeline Rehab (Zone 5) -
-
-
-
160,222.65
Total Expenditures - - 86,600.00 24,312.00 160,222.65
Ending Fund Balance (A) 06/30/25 $ 83,680.00 $
$
1,038.22 $
$
47,057.74 $ 502,809.46 $ 85,497.26 $ 801,611.99 $ -
Five-Year Revenue Test:

Fiscal Year 2020/21
Fiscal Year 2021/22
Fiscal Year 2022/23
Fiscal Year 2023/24
Fiscal Year 2024/25
$ 6,400.00
1,200.00
800.00

13.00 10.00

12.00 18.00

28.00 9,340.00
6,978.00
1,825.00
44,127.12
2,886.46
$ 32,878.92 $ 1,077.00 $ 87,168.83

10.00 71,596.84
106,399.38
117,330.87
804.00
986.00
1,516.00
2,306.14
3,830.97
3,334.46
31,703.42
21,622.12
800.00
200.00
Total Revenue Received for Five-Year Period Ended 6/30/2025 (B) $ 9,400.00 $ 81.00 $ 65,156.58 $ 328,216.01 $ 6,689.14 $ 147,659.80 18 39 of 445

CITY OF LAGUNA BEACH
Financial Summary Report of
Development Impact Fees/Sewer Connection Fees
Pursuant to Government Code Sections 66006 and 66013
as of June 30, 2025
Development Impact Fees
Park and
Recreation
Parking In-Lieu Dedication In-Lieu
Housing
In-Lieu
Impact Fee
Sewer
Connection
Fee
Library Art In-Lieu
Impact Fee
(Fund 123)
Drainage
Impact Fee
(Fund 124)
Impact Fee Certification Fee
(Fund 110)
Impact Fee
(Fund 120) (Fund 122) (Fund 127) (Fund 137/637)
Unexpended Impact Fees and Interest in Excess of Total Receipts for Last Five Years (A) Less (B) $ 74,280.00 $ 957.22
957.22
$ - $ 174,593.45 $ 78,808.12 $ 653,952.19
$ - $-
$ 174,593.45 $ 78,808.12 $ 653,952.19
Committed to Capital Projects - Fiscal Year 2025/26
Amount in Excess of Allowed Deposit
Notes:
$ - $ $ -
$
-
-
$ -
$ 74,280.00 $
(1) - The five-year revenue test is met in accordance with Government Code Section 66001(d). (2) - Fees have not been committed to a future project as of June 30, 2025, because the City is still accumulating sufficient revenue to fund the cost of new facilities. (3) - The transfer to the Capital Improvement Fund (#616) was made to fund the Main Beach Park Renovation Project (C2004). (Refer to page 9 of this report.) 19 40 of 445

NOTE TO THE DEVELOPMENT IMPACT FEE REPORT
The note addresses an item required by California Government Code Section 66006 (b).

DEVELOPMENT IMPACT FEE AND SEWER CONNECTION FEES PROJECT

CITY OF LAGUNA BEACH
Development Impact Fees Project Identification
Fiscal Year Ended June 30, 2025
Development Impact Fees
Estimated
Completion
Date
Estimated
Project
Cost
Budget
Through
6/30/2025
Actual
Through
6/30/2025
% Funded
with Development
Project No. Project Name Project Phase % Complete Impact Fees

86.3%
Park and Recreation Dedication In-Lieu Fee Impact Fee (Fund 122) C2004 Main Beach Park Renovation Construction January 2026 $ 1,642,365 $ 86,600 $ 86,600 5.3% 22 43 of 445

CITY OF LAGUNA BEACH
Sewer Connection Fees Project Identification
Fiscal Year Ended June 30, 2025
Sewer Connection Fee Portion
Estimated
Completion
Date
Estimated
Project
Cost
% Funded
with Sewer
Project No. Project Name Project Phase Connection Fees
Completed
Budget Actual % Complete
100.0%
Fiscal Year 2024/25
C2112 Pipeline Rehab (Zone 5) April 2025 $ 166,164 $ 160,223 $ 160,223 96.4% Project Planned for Fiscal Year 2025/26
C1807 Anita St Lift Station Reconstruction
23 44 of 445

STAFF REPORT
Meeting Date:

December 9, 2025

CONSENT
16 SUBJECT: REIMBURSEMENT TO ORANGE COUNTY FIRE AUTHORITY FOR RANCHO

FIRE COSTS AND APPROPRIATION OF FUNDS
RECOMMENDATION: It is recommended that the City Council:

1. Authorize the Finance Director to reimburse the Orange County Fire Authority $115,905.40 for costs incurred for the Rancho Fire incident that occurred in July 2025;

2. Appropriate $115,905.40 from the available fund balance in the City’s Disaster Contingency Fund (#140);

3. Confirm that this expenditure satisfies the requirements of City Council Resolution No. 23.045, including the requirement for four affirmative votes and the intent to replenish the fund balance within 36 months; and

4. Determine that this action is not subject to the California Environmental Quality Act pursuant to Section 15378 of the CEQA guidelines.

SUMMARY OF THE MATTER
This report recommends that the City Council authorize reimbursement to the Orange County Fire Authority (OCFA) in the amount of $115,905.40 for specialized services and equipment provided during the Rancho Fire, which occurred in Laguna Beach from July 7–9, 2025. Under the City's automatic mutual aid agreement with OCFA, the City is responsible for reimbursing the cost of specialized services, such as helicopters and retardant tankers, used in the incident.

The reimbursement will be funded from the City’s Disaster Contingency Fund (Fund 140), which currently has an available balance of $7,129,627. Pursuant to City Council Resolution No. 23.045, this appropriation requires four affirmative votes and a commitment to use best efforts to replenish the fund within 36 months.

DISCUSSION
The Rancho Fire Incident occurred in the City of Laguna Beach between July 7, 2025, and July 9, 2025.

This event activated the automatic mutual aid agreements the City has in place with the State of California (CalFire) and the OCFA. OCFA invoiced the City $115,905.40 for reimbursement for this event (Attachment 1). Staff is recommending City Council approval to reimburse OCFA and appropriate the funding from the Disaster Contingency Fund’s available fund balance.

The City entered into an automatic aid agreement with OCFA in 2014 (Attachment 2). Under the agreement, OCFA agreed to provide personnel and equipment at no cost such as: engines, trucks, battalion chiefs, and medic units. Specialized services and equipment such as: water tenders, helicopters, heavy rescue, heavy equipment, and Type VI Patrols, must be reimbursed to OCFA for these specialty services.

Specialized equipment was necessary in order to respond to the Rancho Fire, including four tankers that dropped retardant, which also required additional supervisory resources by OCFA and rotating helicopters 1 of 470

REIMBURSEMENT TO ORANGE COUNTY FIRE AUTHORITY FOR RANCHO FIRE COSTS

AND APPROPRIATION OF FUNDS
December 9, 2025

Page 2 of 3 ends

to continuously drop water over the area to extinguish the fire. These drastic measures allowed the City to respond to the Rancho Fire in such a way that resulted in no loss of life or structures. OCFA has requested reimbursement from the City in the amount of $115,905.40. These costs are primarily to reimburse OCFA for the specialized equipment (and related personnel resources) that were used during the extraordinary response to the Rancho Fire. incident. This requested reimbursement includes costs from other mutual aid agencies and thus, the City does not expect any other requested reimbursements from the other agencies that assisted in the City’s response to the Rancho Fire.

The City is continuing its efforts to seek restitution from the individual(s) responsible for the Rancho Fire, and that process is ongoing. That process includes the above OCFA invoice amount as well as other costs.

However, staff believes that due to the services provided by OCFA and other agencies, the requested reimbursement is appropriate at this time. Requiring OCFA to wait until the City’s restitution efforts are complete, may be seen as an undue hardship to an agency that was responsive and helpful during the Rancho Fire.

FINANCIAL ANALYSIS
An appropriation of $115,905.40 is requested from the City’s Disaster Contingency Fund as permitted by City Resolution No. 05.107 (Attachment 3). The current fund balance available in the Disaster Contingency Fund is $7,129,627. These funds may be reimbursed when the litigation matter pertaining to this incident is resolved.

Per City Council Resolution No. 23.045, any expenditure from the Disaster Contingency Fund requires four affirmative votes of the City Council. The same resolution also requires that the City use its best efforts to replenish the Disaster Contingency Fund to its preexisting balance within 36 months of the expenditure, subject to the annual budget process.

This reimbursement represents a non-recurring, emergency expenditure that aligns with the intended purpose of the Disaster Contingency Fund, specifically, emergency protection of public and private property and life during natural disasters. The Rancho Fire qualified as such an emergency.

The Finance Department will track this expenditure and include it in future budget planning efforts to ensure the replenishment of the fund, consistent with the Council’s fiscal policy should the City not receive restitution from the responsible party.

ENVIRONMENTAL ANALYSIS
This action is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378 because it does not qualify as a “project.” The recommended action involves the reimbursement of funds related to emergency response services and does not authorize any physical development or changes to the environment.

ATTACHMENTS

1. OCFA Invoice (Pgs. 4-9)

2. Automatic Aid Agreement with OCFA (Pgs. 10-22)
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REIMBURSEMENT TO ORANGE COUNTY FIRE AUTHORITY FOR RANCHO FIRE COSTS

AND APPROPRIATION OF FUNDS
December 9, 2025

Page 3 of 3 ends

3. Resolution No. 23.045 (Pgs. 23-25)
Submitted By: Michelle Bannigan Approved: .David A Kiff Michelle Bannigan, Finance
Director Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Michelle Bannigan, Finance Director Niko King, Fire Chief 3 of 470

INVOICE
Orange County Fire Authority
PO Box 51985
Irvine, CA 92619-1985

SERVICE DATE DESCRIPTION QUANTITY RATE AMOUNT
Bill To:

Site Address:

If you have any questions regarding your bill please contact our Customer Service Representative at: 714-573-6342 INVOICE NUMBER: S0550251
CUSTOMER ID: @00004972
INVOICE DATE: 10/1/2025
DUE DATE: 10/31/2025
505 FOREST AVENUE
LAGUNA BEACH, CA 92651

CITY OF LAGUNA BEACH FIRE DEPARTMENT
ATTN: MICHELLE BANNIGAN, DIRECTOR OF FINANCE
505 FOREST AVENUE
LAGUNA BEACH, CA 92651
JUL 2025 ASSISTANCE BY HIRE - STATE $105,792.33
Rancho Fire CA-ORC-095760
JUL 2025 HELICOPTER BILLINGS $10,113.07
Rancho Fire CA-ORC-095760
It is our policy to charge 10% late payment fee for all delinquent invoices and a $20 charge for checks returned by bank.

TOTAL DUE $115,905.40
Please detach the lower portion and return with payment for proper handling.

Make check payable to: Orange County Fire Authority, Accounts Receivable, PO Box 51985, Irvine, CA 92619-1985 PAYMENT AMOUNT:

BALANCE DUE: $115,905.40
S0550251
@00004972
CUSTOMER NAME: CITY OF LAGUNA BEACH FIRE
CUSTOMER ID:

INVOICE NUMBER:

Accounts that remain unpaid after 90 days from original invoice date may be sent to Collections.

DUE DATE: 10/31/2025
Effective 3/1/17, a 2.45% convenience fee will be charged for payments using credit or debit cards. The convenience fee is based on the total amount of the charge and paid directly to the service vendor. No convenience fee will be charged for payments by cash, check, or electronic check (eCheck).

AMEX Visa MC Discover
Exp:

Verification Code:

Card #
Name
Address
Signature
Email
ONLINE PAYMENTS: https://payments.msbpay.com/ocfa_pfs

INVOICE
Orange County Fire Authority
PO Box 51985
Irvine, CA 92619-1985
4 Attachment 1
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5 5 of 470
6 7
8 8 of 470
9 9 of 470
10 Attachment 2
10 of 470
11 11 of 470
12 12 of 470
13 13 of 470
14 14 of 470
15 15 of 470
16 16 of 470
17 17 of 470
18 18 of 470
19 19 of 470
20 20 of 470
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23 Attachment 3
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24 24 of 470
25 25 of 470

STAFF REPORT
Meeting Date:

December 9, 2025

CONSENT
17 SUBJECT: APPROVAL OF TENTATIVE AGREEMENT BETWEEN THE CITY OF LAGUNA

BEACH AND THE LAGUNA BEACH POLICE EMPLOYEES' ASSOCIATION FOR THE TERM OF JANUARY 1, 2026, THROUGH SEPTEMBER 30, 2026 RECOMMENDATION: It is recommended that the City Council:

1. Adopt the Resolution titled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA BEACH, CALIFORNIA, RATIFYING THE MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF LAGUNA BEACH POLICE EMPLOYEES’ ASSOCIATION” approving the Agreement between the City of Laguna Beach and the Laguna Beach Police Employees' Association;

2. Authorize the City Manager to execute the related Memorandum of Understanding, subject to approval as to form by the City Attorney; and

3. Find that the action is not a project subject to the California Environmental Quality Act pursuant to CEQA Guidelines Section 15378.

SUMMARY OF THE MATTER
This report recommends that the City Council adopt a Resolution (Attachment 1), approving the Agreement between the City of Laguna Beach and the Laguna Beach Police Employees’ Association (LBPEA) for the term January 1, 2026, through September 30, 2026. The Agreement provides for salary adjustments, benefit clarifications, and updates to several personnel provisions affecting both sworn and non-sworn employees.

The Agreement is the result of a collaborative negotiation process and, in addition to a salary increase, includes several improvements intended to enhance clarity and consistency. These include updated language on vacation and sick leave accruals, streamlined processes for promotional and salary steps, and technical edits to reduce administrative ambiguity. Additionally, the Agreement reflects efforts to align with current legal standards and City practices.

The shortened nine-month term allows the City to revisit compensation terms following the expected completion of a comprehensive Classification and Compensation Study, which will provide updated market data. The study is anticipated to be concluded by the end of 2025, with findings scheduled for presentation to the City Council in January 2026.

The estimated cost of implementing the Agreement is approximately $518,000 annually, with $259,000 allocated for the remaining six months of Fiscal Year (FY) 2025-26. This cost has been incorporated into the adopted FY 2025-26 budget. The action does not constitute a project under the California Environmental Quality Act (CEQA) and is therefore exempt from environmental review. 1 of 518

APPROVAL OF TENTATIVE AGREEMENT BETWEEN THE CITY OF LAGUNA BEACH AND

THE LAGUNA BEACH POLICE EMPLOYEES' ASSOCIATION FOR THE TERM OF JANUARY 1, 2026, THROUGH SEPTEMBER 30, 2026
December 9, 2025

Page 2 of 3 ends

DISCUSSION
.The Laguna Beach Police Employees' Association represents both sworn and professional (non-sworn) employees of the Police Department. The prior agreement was set to expire on December 31, 2025.

Negotiations for a successor agreement commenced in Fall 2025 and concluded with a Tentative Agreement reached on October 29, 2025.

Notable terms of the new Memorandum of Understanding (MOU) include:
• Term: January 1, 2026, through September 30, 2026
• Salary Adjustments:
o 4.0% base salary increase for sworn classifications
o 3.5% increase for Dispatchers and Support Services Supervisor o 3.0% increase for all other professional classifications • Clarifications to holiday provisions
• Added Administrative Sergeant Pay
o Additional compensation at 5% of base pay
The Association ratified the Tentative Agreement on November 13, 2025, and staff recommends City Council adoption.

FINANCIAL ANALYSIS
The estimated cost associated with the Tentative Agreement for the term of January 1, 2026, through September 30, 2026, is approximately $535,842. These costs for the period from January 1, 2026, through June 30, 2026, have been budgeted in the adopted FY 2025-26 operating budget. No additional appropriations are required.

ENVIRONMENTAL ANALYSIS
The proposed action is not a project under the California Environmental Quality Act (CEQA) as defined in CEQA Guidelines Section 15378 because it does not result in a physical change in the environment.

Accordingly, no CEQA review is required.

ATTACHMENTS

1. Resolution – Approving the Tentative Agreement with the LBPEA (Pgs. 4-5)

2. Exhibit A – Memorandum of Understanding: January 1, 2026 – September 30, 2026 (Pgs. 6-46) Submitted By: Approved:
.David A Kiff
Gavin Curran, Assistant City
Manager Dave Kiff, City Manager
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APPROVAL OF TENTATIVE AGREEMENT BETWEEN THE CITY OF LAGUNA BEACH AND

THE LAGUNA BEACH POLICE EMPLOYEES' ASSOCIATION FOR THE TERM OF JANUARY 1, 2026, THROUGH SEPTEMBER 30, 2026
December 9, 2025

Page 3 of 3 ends

Report Prepared By: Coordinated With:

Gavin Curran, Assistant City Manager Michelle Bannigan, Finance Director Peter Brown, Labor Attorney
3 of 518
RESOLUTION NO. 25.XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA BEACH, CALIFORNIA, RATIFYING THE

MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY
OF LAGUNA BEACH POLICE EMPLOYEES’ ASSOCIATION
WHEREAS, the Memorandum of Understanding between the City of Laguna Beach (“City”) and Laguna Beach Police Employees’ Association (LBPEA), expires December 31, 2025; and
WHEREAS, the City and the LBPEA have met and conferred in accordance with the Meyers-Milias-Brown Act (Government Code §3500 et seq.); and WHEREAS, the meet and confer process is a process that can result in an agreement between employees and the City regarding terms and conditions of employment; and WHEREAS, the City and the LBPEA have memorialized their agreement in a Memorandum of Understanding for the period of January 1, 2025 through September 30, 2026.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:

SECTION 1. The City Council hereby finds and determines that the recitals above are true and correct and are each incorporated by reference and adopted as findings by the City Council.

SECTION 2. The Memorandum of Understanding between the City and the LBPEA (Exhibit A) is hereby ratified and the City Manager is authorized to execute the Memorandum of Understanding.

SECTION 3. This Resolution shall become effective immediately upon adoption.

SECTION 4. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

Attachment 1
4 4 of 518
-2- Reso. #
ADOPTED this 9th day of December, 2025.
, Mayor
ATTEST:

Ann Marie McKay, City Clerk
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, certify that the foregoing Resolution No. 25.XXX was duly adopted at a regular meeting of the City Council of said City held on 9th day of December 2025, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

City Clerk, City of Laguna Beach, CA
5 5 of 518

MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF LAGUNA BEACH
AND
THE LAGUNA BEACH POLICE EMPLOYEES’

ASSOCIATION
January 1, 2026 – September 30, 2026
Exhibit A
6 6 of 518

TABLE OF CONTENTS

1.0 Introduction: ...................................................................................................... 1

2.0 Term of MOU:..................................................................................................... 1

3.0 Recognition of Representation: ....................................................................... 1

4.0 Pre-Disciplinary Procedures and Discipline:.................................................. 1

4.1 Policy: ................................................................................................................. 1

4.2 Written Notice:..................................................................................................... 2

4.3 Employee Review: .............................................................................................. 2

4.4 Employee Response: .......................................................................................... 2

4.5 Temporary Leave With Pay:................................................................................ 2

4.6 Representation:................................................................................................... 2

4.7 Right of Appeal:................................................................................................... 2

4.8 Government Code Section 3304(b):.................................................................... 2

5.0 Grievance Procedure: ....................................................................................... 2

5.1 Matters Subject to Grievance Procedure: ........................................................... 2

5.2 Informal Grievance Procedure: ........................................................................... 3

5.3 Formal Grievance Procedure: ............................................................................. 3

5.4 Appeal to the City Manager:................................................................................ 3

5.5 Extension of Time Limitations: ............................................................................ 4

6.0 Salary and Compensation: ............................................................................... 4

6.1 Pay Plan Structure: ............................................................................................. 4

6.2 Advancement Through the Pay Plan:.................................................................. 4

6.3 Compensation on Promotion:.............................................................................. 5

6.4 Compensation on Demotion:............................................................................... 5

6.4.1 Disciplinary Demotion: .................................................................................. 5

6.4.2 Non-disciplinary (i.e., voluntary) Demotion: .................................................. 5

6.5 Compensation When Acting Out of Classification: .............................................. 5

6.6 Compensation for Additional Duties: ................................................................... 6

6.7 Compensation for Regular Part Time Employees: .............................................. 6

6.8 Compensation on Position Reclassification:........................................................ 6

6.9 Salary:................................................................................................................. 7

6.10 Direct Deposit:..................................................................................................... 7

6.11 Matron Pay:......................................................................................................... 7

7.0 Vacation: ............................................................................................................ 7

7.1 Vacation Accrual: ................................................................................................ 7

7.2 Use of Vacation:.................................................................................................. 8

7.3 Payment for Unused Vacation:............................................................................ 8

7.4 Leave Benefits for Regular Part-time Employees:............................................. 10

8.0 Holidays: .......................................................................................................... 10

8.1 Recognized Holidays: ....................................................................................... 10

8.2 Holidays: ........................................................................................................... 10

8.3 Weekend Holidays: ........................................................................................... 11

9.0 Sick Leave:....................................................................................................... 11

9.1 Sick Leave Accruals:......................................................................................... 11

9.2 Penalty for Sick Leave Abuse: .......................................................................... 12

9.3 Sick Leave and Temporary Disability: ............................................................... 12

9.4 Sick Leave for Dependent Care: ....................................................................... 12 7 7 of 518

9.5 Illness While on Vacation: ................................................................................. 12

9.6 Holidays During Sick Leave: ............................................................................. 12

9.7 Payment for Unused Sick Leave: ...................................................................... 12

9.8 Family Leave:.................................................................................................... 13

10.0 Bereavement Leave:........................................................................................ 13

11.0 PERS - Disability Benefits Program:.............................................................. 13

11.1 Eligibility: ........................................................................................................... 14

11.2 Amount of Benefit:............................................................................................. 14

11.3 Status of the Employee: .................................................................................... 14

11.4 Disability Benefit:............................................................................................... 14

12.0 Educational and Professional Development Reimbursement Program:.... 14

12.1 Eligibility: ........................................................................................................... 14

12.2 Procedure:......................................................................................................... 15

12.2.1 City Manager Approval: ........................................................................... 15

13.0 Salary Continuance (4850 Rule):.................................................................... 15

13.1 Definitions ......................................................................................................... 15

13.2 Salary Continuance Policies and Procedures ................................................... 15

14.0 Light Duty: ....................................................................................................... 16

15.0 Retirement: ...................................................................................................... 16

16.0 Medical Benefits:............................................................................................. 19

16.1 Rates................................................................................................................. 20

16.2 City Contribution Amount Maximums ................................................................ 20

16.3 Medical Coverage for Domestic Partners:......................................................... 20

16.4 Medical Insurance Waiver:................................................................................ 20

16.5 Flexible Spending Plan: .................................................................................... 21

16.6 Medical Plan Coverage for Retirees:................................................................. 21

16.7 Medical Plan Coverage Part-time Regular Employees: .................................... 21

16.8 Retirement Health Savings Plan: ...................................................................... 21

16.8.1 City Contribution: ..................................................................................... 21

16.9 Medical Task Force:.......................................................................................... 22

16.10Reopener - Change in Medical Plan: ................................................................ 22

17.0 Life Insurance:................................................................................................. 22

18.0 Long Term Disability:...................................................................................... 22

19.0 Mileage:............................................................................................................ 22

20.0 On-Call Pay:..................................................................................................... 22

21.0 Military Leave: ................................................................................................. 23

22.0 Jury Duty:......................................................................................................... 23

23.0 Exceptional Performance Pay Plan: .............................................................. 23

23.1 Amount:............................................................................................................. 23

24.0 Educational Incentive Pay:............................................................................. 23

25.0 Bilingual Pay:................................................................................................... 25

26.0 Assignment Pay: ............................................................................................. 25

26.1 Police Records Specialists Assignment Pay: .................................................. 25

26.2 Homeless Liaison Officer Pay: .......................................................................... 25

26.3 Canine Handler and Support Services Dog Maintenance Pay: ......................... 26

26.4 Use of City Vehicles/Motorcycle Duty: .............................................................. 27

26.5 School Resource Officers:................................................................................. 28

26.6 Detectives: ........................................................................................................ 28 8 8 of 518

26.7 Field Training Officers: ...................................................................................... 28

26.8 Communication Training Officer Pay:................................................................ 30

26.9 Shift Differential Pay:......................................................................................... 30

26.10Department Training Officer Pay:...................................................................... 30

26.11Neighborhood Enhancement Team Pay: .......................................................... 31

26.12Administrative Sergeant Pay:............................................................................ 31

27.0 Overtime/Compensatory Time: ...................................................................... 31

27.1 Sworn Personnel:.............................................................................................. 31

27.2 Professional Staff Employees: .......................................................................... 31

27.3 Actual Hours Worked: ....................................................................................... 31

27.4 Call-Back........................................................................................................... 31

27.5 Briefing or Shift Preparation Time: .................................................................... 32

27.6 Compensatory Time:......................................................................................... 32

28.0 Alternate Work Schedule:............................................................................... 32

28.1 Change/Modification: ........................................................................................ 32

28.2 Work Schedules For Professional Staff:............................................................ 32

28.3 Benefit Modification for Those Assigned to Alternate Work Schedules:............ 33

29.0 Uniforms: ......................................................................................................... 34

30.0 Investigator Clothing Allowance:................................................................... 34

31.0 Bullet-proof Vests: .......................................................................................... 34

32.0 Layoff: .............................................................................................................. 34

32.1 Intent of Procedure:........................................................................................... 34

32.2 Procedures:....................................................................................................... 35

32.2.1 Abolition of a Position: ............................................................................. 35

32.2.2 Transfer or Demotion to Avoid Layoff: ..................................................... 35

32.2.3 Severance Pay: ....................................................................................... 35

32.2.4 Reemployment Lists: ............................................................................... 35

33.0 Personnel File Purging: .................................................................................. 36

34.0 Jailers:.............................................................................................................. 36

35.0 Release Time: .................................................................................................. 36

36.0 Management Rights: ....................................................................................... 36

37.0 Closing:............................................................................................................ 37 9 9 of 518
1 MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF LAGUNA BEACH, CALIFORNIA
AND
THE LAGUNA BEACH POLICE EMPLOYEES’ ASSOCIATION

1.0 Introduction: This Memorandum of Understanding (hereinafter “MOU”) has been reached and prepared after meeting and conferring in good faith between the City of Laguna Beach and representatives of the Laguna Beach Police Employees’ Association (the Association) pursuant to the provisions of Government Code Section 3500, et. seq.

2.0 Term of MOU: This MOU shall remain in full force and effect from January 1, 2026, until September 30, 2026.

3.0 Recognition of Representation: The City recognizes the Laguna Beach Police Employees' Association as the bargaining unit which represents public safety employees of the Police Department as follows: All regular (including regular full time and regular part-time) positions in the classifications which follow as well as the hourly classification of Jailer (which is only covered by Article 33 of this MOU and no other provision):

Sworn
Park Ranger
Police Officer
Police Corporal
Police Sergeant

4.0 Pre-Disciplinary Procedures and Discipline:

4.1 Policy: Prior to the discharge, demotion or pay reduction for disciplinary purpose or suspension of any regular employee pursuant to provisions of Professional – Non Sworn
Animal Care Specialist
Animal Services Officer
Community Services Officer I
Community Services Officer II
Jailer
Jail Supervisor
Parking Services Off./Acc. Invest.

Senior Parking Services Officer
Police Fleet Coordinator
Police Records Specialist
Public Safety Dispatcher
Senior Public Safety Dispatcher
Supervisor of Support Services
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2 the Personnel Ordinance and these Rules, the following procedure shall be complied with:

4.2 Written Notice: Written notice of the proposed disciplinary action shall be given to the employee. Such notice shall include a statement of the reason(s) for the proposed action and the charge(s) being considered.

4.3 Employee Review: The employee shall be given an opportunity to review the documents or materials upon which the proposed disciplinary action is based, and if practicable, they shall be supplied with a copy of the documents.

4.4 Employee Response: Within five (5) working days after the employee has had the review opportunity provided above, they shall have the right to respond, orally or in writing, or both, at the employee's option, to the Chief of Police or their designee concerning the proposed action.

4.5 Temporary Leave With Pay: Notwithstanding the provisions of this section, the City Manager may approve the temporary assignment of an employee to a status of leave with pay pending conduct or completion of such investigations or hearings as may be required to determine if disciplinary action is to be taken.

4.6 Representation: In the above procedure, the employee may be represented by a representative of the employee's choice who is not involved in the matter.

4.7 Right of Appeal: Employees shall, have the right of appeal to an Administrative Law Judge from the Office of Administrative Hearings within seven (7) days of any disciplinary action indicated under Section 2.24.120 of the Laguna Beach Municipal Code, except in instances where the right of appeal is specifically prohibited by the Personnel Ordinance. The Administrative Law Judge will issue an advisory decision to the City Manager. The City Manager will, within thirty (30) days, issue their final decision on the appeal. The employee has the right to appeal the City Manager’s decision in accordance with California Code of Civil Procedure section 1094.6, which provides a 90-day statute of limitations.

4.8 Government Code Section 3304(b): To the extent that a right of appeal is required by Government Code Section 3304(b), and not covered by Section

4.1 above, it shall be processed under the grievance procedure.

5.0 Grievance Procedure:

5.1 Matters Subject to Grievance Procedure: A grievance shall be a claim, filed by an employee on their own behalf or by the Association on behalf of 11 11 of 518
3 a bargaining unit member contending that the City has violated or misapplied an obligation expressed and written in the Personnel Ordinance (Ordinance 815) or this MOU.

5.2 Informal Grievance Procedure: The informal grievance procedure may be utilized to resolve grievances by an employee, a group of employees, or the Association having to do with specific working conditions, safety, unfair treatment, or discrimination. Every effort shall be made to resolve a grievance through discussion between the employee(s) and their immediate supervisor. If the Association is the grievant, the Association may discuss the grievance with a Police Lieutenant or Police Captain. If, after such discussion, the employee or Association does not feel that the grievance has satisfactorily been resolved, they or it shall have the right to discuss the matter with the supervisor's supervisor, if any, within the departmental organization. Otherwise, the employee shall have the right to discuss the matter with the Chief of Police. If the grievance is filed by the Association, it can discuss its grievance with the Director of Human Resources & Risk Management. A grievant must present/file a grievance within thirty (30) calendar days of the later of (1) the occurrence giving rising to the grievance or (2) the time within which the grievant (either the employee or the Association) knew or should have known of the occurrence.

5.3 Formal Grievance Procedure: If the employee or the Association is not in agreement with the decision rendered in the informal grievance procedure, they will have the right to present a formal grievance, in writing, to the Chief of Police. If such a formal grievance has not been submitted within fourteen (14) calendar days from the date of receiving the informal decision, the informal decision shall be considered as final.

When discussing the formal grievance with the Chief of Police, the employee (if filed by an employee) shall have the right to appear with their representative who may also participate in the discussion. If filed by the Association, its chosen representative shall have the right to meet with the Chief of Police to discuss its grievance. The Chief of Police after receiving the grievance shall review it, render their decision and comments in writing and return them to the employee or Association within fourteen (14) calendar days after receiving the formal grievance. If the employee or the Association does not agree with the decision reached, they or it may present an appeal in writing to the City Manager within fourteen (14) calendar days.

Failure of the employee or Association to take further action within fourteen (14) calendar days after receipt of the decision of the Chief of Police will constitute withdrawal of the grievance.

5.4 Appeal to the City Manager: Upon receipt of an appeal, the City Manager or their representative shall discuss the grievance with the employee and/or their representative, if any, or the Association if filed by the Association. The 12 12 of 518
4 City Manager may designate a fact-finding committee, an individual not in the normal line of the employee's supervision (assuming the grievance was filed by an employee), or the City Attorney to render advice concerning the appeal. Within twenty (20) calendar days, the City Manager shall render a formal decision, in writing, to the employee or the Association. Such decision shall be considered as final.

5.5 Extension of Time Limitations: Any or all of the time limitations mentioned above with reference to filing and response may be extended by mutual agreement between the grievant and the City.

6.0 Salary and Compensation:

6.1 Pay Plan Structure: The basic pay range for all classifications shall consist of monthly salary steps, each approximately five percent (5%) greater than its predecessor.

6.2 Advancement Through the Pay Plan: The numbers 1, 2, 3, 4, 5, 6, 7 and 8 respectively denote the various steps in the pay range.

Salary Step 1, an entry level step, shall be paid upon initial employment and for a period of six (6) months from the anniversary date.

Upon recommendation of the Chief of Police, initial employment at a salary step other than entry level may be authorized by the City Manager when a particularly difficult recruiting problem for a class is found to exist.

Salary Step 2 or 3 may be paid after six (6) months at Salary Step 1 where the employee has demonstrated satisfactory job progress and normally increasing productivity and upon recommendation of the Chief of Police and approval of the City Manager. If the employee is advanced to Salary Step 2, after six (6) months, they will be eligible to be advanced to Salary Step 3 after six (6) months after completion of Salary Step 2. If the employee is advanced to Salary Step 3, after six (6) months, they will be eligible to be advanced to Salary Step 4 one (1) year after completion of Salary Step 3.

Movement through the remaining salary steps will be paid upon completion of one (1) year of employment in the prior Salary Step where the employee has demonstrated satisfactory job progress and productivity and recommendation of the Chief of Police and approval of the City Manager.

In the case of an employee employed or re-employed at any step above Step 1, the employee may be advanced to the next higher step in their range no sooner than one (1) year from the anniversary date of their employment.

However, an employee may be advanced on the salary range more quickly based on exceptional performance at the discretion of the City Manager. 13 13 of 518
5 6.3 Compensation on Promotion: Any employee who is promoted to a position in a class with a higher salary range shall be placed on the step in the new higher range which is at least five percent (5%) above the step they held in the former range in the basic salary schedule unless the five percent (5%) would place the employee above the top step of the new higher range.

An employee thus promoted is therefore assigned to a new salary anniversary date effective on the date of promotion. An employee who, on their salary anniversary date, is promoted to a class with a higher salary range shall first receive any within range increase to which they are entitled and then the higher step as provided in this section.

6.4 Compensation on Demotion: Any employee who is demoted to a position in a class with a lower salary range shall be placed on a Salary Step in the salary range of the lower class as follows:

6.4.1 Disciplinary Demotion: to any designated Salary Step in the lower range which is at least one (1) step less than that received in the salary range for the class from which demoted. A new anniversary date shall be established.

6.4.2 Non-disciplinary (i.e., voluntary) Demotion: to the Salary Step that the employee would have been at in the lower class had the employee remained continuously employed in that lower class. The employee shall retain their current anniversary date (i.e., the anniversary date they had in the position from which in they voluntarily demoted.

6.5 Compensation When Acting Out of Classification: Employees shall receive five percent (5%) of their current base salary for working out of classification. This pay is for when an employee is working in an upgraded classification for a limited duration. For sworn employees, acting pay will commence on the first day the employee is working out of classification. For professional employees) acting pay will commence on the first day of the pay period during which the employee worked (acting out of classification) the sixteenth (16th) consecutive day. Acting pay work must be approved in advance by the Division Commander or their designee. An employee receiving this pay is not eligible to receive pay per Article 6.6 (Compensation for Additional Duties) for the same hours worked.

The parties agree that to the extent permitted by law, the compensation for acting out of classification is special compensation for “classic member” employees and shall be reported as such pursuant to Title 2 CCR, Section 571(a)(3) Temporary Upgrade Pay. This pay shall not be reported for “new members” as defined under PEPRA. However, it is ultimately CalPERS 14 14 of 518
6 who determines whether any form of pay is reportable special compensation.

6.6 Compensation for Additional Duties: An employee assigned by the Chief of Police or designee to perform significant additional duties outside the normal scope of their job classification for 15 or more consecutive work days, but not warranting an out-of-class assignment, may be eligible for additional duty pay of five percent (5%) of their base hourly pay. Additional duty pay shall be based on the scope and complexity of the additional duties, as determined by the Chief of Police and approved by Human Resources. The pay will not be reported to CalPERS. An employee receiving this pay is not eligible to receive pay per Article 6.5 (Compensation When Acting Out of Classification) for the same hours worked.

6.7 Compensation for Regular Part Time Employees: Regular part-time employees shall be paid the hourly equivalent of the monthly salary paid to a full-time employee in the classification to which they are assigned. They shall be eligible for step increases based on the employee’s anniversary date.

6.8 Compensation on Position Reclassification: The salary of an employee in a position that is reclassified shall be determined as follows: if the position is reclassified to a class with the same salary range as the previous class, and if the incumbent is appointed to the reclassified position, the salary rate and salary anniversary date of the employee shall not change. This provision shall also apply to a change of class title.

If the position is reclassified to a class with a higher salary (i.e., has a higher top step salary) than the previous class, and if the incumbent is appointed to the reclassified position, the salary of such employee shall be the comparable step in the higher classification, or the step in the new salary range which is at least four percent (4%), but not more than six percent (6%), over the previous salary, whichever is less. When an employee is appointed to a reclassified position and their salary is at least four percent (4%) greater than the salary in the previous class, a new anniversary date shall be assigned, effective the date of the reclassification.

If the position is reclassified to a class with a lower salary than the previous class, and if the incumbent is appointed to the reclassified position, the employee’s salary shall not change. If the employee's salary is greater than the maximum step of the lower salary range, the employee’s salary shall be "Y rated" until such time as any negotiated cost-of-living increases, equity adjustments, or other salary increases result in the employee’s salary is within the range. The employee's salary anniversary shall not change and they shall not be required to serve a new probationary period. 15 15 of 518
7 6.9 Salary:

Effective the pay period including January 1, 2026:

Employees in all sworn classifications shall receive a four percent (4.0%) salary increase in their monthly base salary.

Employees in the classifications of Public Safety Dispatcher, Senior Public Safety Dispatcher and Support Services Supervisor shall receive a three and one half percent (3.5%) salary increase in their monthly base salary.

Employees in all professional classifications (with the exception of Public Safety Dispatcher, Senior Public Safety Dispatcher and Support Services Supervisor) shall receive a three percent (3.0%) salary increase in their monthly base salary.

6.10 Direct Deposit: All Association members shall participate in the City’s Direct Deposit Program.

6.11 Matron Pay: For each shift where a female professional staff employee (with the exception of an employee in the classification of Jailer) actually performs the duties of a matron (monitors the intake of female prisoners) the employee will receive one (1) hour of compensatory time off (CTO) added to her CTO bank. If, at the time the matron duties are performed, the employee has the maximum compensatory time off accrual in her bank (i.e., 100 hours) she will be paid for the one hour at straight time.

7.0 Vacation:

7.1 Vacation Accrual: Each full-time employee shall accrue vacation leave with pay as follows:

Years of Service Hours of Vacation Accrued
0 thru 5 yrs. Service 3.70 hrs. Biweekly
6 thru 9 yrs. service 5.24 hrs. Biweekly
10 + yrs. service 6.77 hrs. Biweekly
Vacation leave accrues from the date of hire at bi-weekly rates consistent with the above schedule. Years of service for eligibility for vacation is based on years of service at a qualifying public agency. This includes both time with the City and any other public agency in which the employee was employed. “Public agency" means any city, county, district, other local authority or public body of or within this state. See Government Code section 20056. To receive a vacation accrual rate adjustment, employees shall complete the City form verifying prior public agency employment.

Once received by Human Resources, the City will verify and make 16 16 of 518
8 applicable adjustments to prospective vacation accruals within two pay periods. Vacation accruals rates shall not be retroactively adjusted unless there is a delay in the processing of the request by more than 2 pay periods.

If such a delay occurs, the retroactive adjustment would be for the time in excess of two pay periods.

On December 23, 2013, all then current vacation accruals were placed in a bank entitled the “Original” Bank. Once the Original Bank was established, no additional vacation accruals were or may be deposited into that Original Bank. Vacation in the Original Bank may be used in accordance with Section 7.2 of this Article.

On December 23, 2013, a new vacation accrual bank entitled the “New Bank” was created. In the first pay period in December of each ensuing year, employees will be paid for any vacation in the bank above 400 hours at their then-current hourly rate.

In accordance with Section 7.2, employees may still use their vacation (both banks). However, for each employee, once the original bank has been depleted, it will be closed.

All accrued hours in both the Original Bank and the New Bank shall be shown on each Employee’s Bi-Weekly Pay Documents and each employee’s rate of pay that was in effect on December 23, 2013, shall be communicated to each employee in a formal letter from the City which shall be retained in each employee’s personnel file for the duration of their career.

7.2 Use of Vacation: Vacation leave may be taken as it accrues. The dates of vacation leave may be selected by the employee but shall be approved by the Chief of Police or designee who shall consider the wishes of the employee and the needs of the City. The City may limit the approval of vacation for deployment operational reasons. Once it is approved, the City may cancel vacation only in the event of an unavoidable emergency.

7.3 Payment for Unused Vacation:
a) During Employment:

By December 15 of each year, employees may make an irrevocable election to cash out up to the maximum number of hours of vacation leave they can accrue per year that will be earned in the following calendar year at the same rate of pay had the employee used those vacation benefits to receive paid leaves of absence. In the following year, the employees can receive the cash for the vacation leave they irrevocably elected to cash out in either two (2) separate increments (in July and December) or one (1) increment (in December), the total of 17 17 of 518
9 which shall not exceed the maximum they can accrue in a year, as follows. Thus, if the employees so desire, they could elect to be paid up to one half of what they irrevocably elected to cash out on the second pay day in July with the remainder being paid on the second pay day in December, or the employees can elect to be paid the entire amount they irrevocably elected to cash out on the second pay day in December.

However, if an employee’s vacation leave balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of leave the employee has accrued at the time of the cash out.

If an employee makes an irrevocable election to cash out vacation leave in the following calendar year and uses vacation leave in that subsequent year, the vacation leave used will come from vacation leave the employee had earned prior to January 1 of the year the employee has elected to cash out vacation leave. This is to ensure that assuming an employee had a vacation leave balance prior to January 1, the vacation leave used will not result in a reduction in the amount of vacation leave the employee will be eligible to cash out.

In addition to the above, an employee who has an “unforeseen emergency” (defined as an unanticipated emergency that is caused by an event beyond the control of the employee and that would result in severe financial hardship to the employee if early withdrawal were not permitted) shall be entitled to make a request to the Director of Human Resources & Risk Management for a payoff of up to one year’s accrual of vacation irrespective of whether and to the extent the employee has made an irrevocable election in the preceding December. The amount of vacation which may be paid off is limited to the amount necessary to meet the emergency.

Notwithstanding the above, at any time employees may continue to elect to cause the monetary value of accrued vacation to be added to their 457 Deferred Compensation account, thereby reducing their accrued vacation balance accordingly.
b) Upon Termination: Any employee who is about to terminate their employment and who has unused vacation time in either bank shall be paid for such vacation time in their final paycheck. As noted above, payment of vacation time in the original bank will be paid (as permitted by Labor Code section 227.3 with an agreement of the parties) at the employee’s hourly rate as of December 22, 2013. It shall not be necessary to carry such employee on the payroll for the vacation period that is cashed out and the vacancy thus created may be filled at any time after the effective date of termination. When termination is caused by death of the employee, payment shall be made to the employee's designated beneficiary or in accordance with the law.
18 18 of 518
10 7.4 Leave Benefits for Regular Part-time Employees: Regular part-time employees as defined the City’s Personnel Rules shall also receive holidays, vacations, sick leave and other similar time off benefits at a ratio determined by the actual number of hours worked. The employee’s accrual rates will change after the same number of years of employment as regular full-time employees.

8.0 Holidays:

8.1 Recognized Holidays: The following holidays shall be observed by the City of Laguna Beach:

1. New Year's Day - January 1st

2. Martin Luther King Jr. Day - 3
rd Monday in January

3. President’s Day - 3rd Monday in February

4. Memorial Day - Last Monday in May

5. Juneteenth – June 19

6. Independence Day - July 4th

7. Labor Day - 1st Monday in September

8. Veterans Day - November 11th

9. Thanksgiving Day - 4th Thursday in November

10. The day after Thanksgiving

11. Christmas Day - December 25th

8.2 Holidays:.

Employees in the following classifications shall be entitled to holiday in lieu pay of eight (8) hours per holiday if they were in paid status for the entire day the day before and the day after the holiday (i.e., either the employee worked or was absent using paid leave for the entire day on such workdays):

Sworn: Park Ranger, Police Officer, Police Corporal, Police Sergeant
Professional – Non-Sworn: Animal Care Specialist, Animal Services Officer, Jailer, Jail Supervisor, Parking Services Off./Acc. Invest, Police Records Specialist, Public Safety Dispatcher, Senior Public Safety Dispatcher, Senior Parking Services Officer,
This is because these employees work in positions that require scheduled staffing without regard to holidays. If a holiday falls on one of their days off, they still receive their holiday-in-lieu pay for that holiday. If they want to take off on a holiday, they are required to use paid accrued leave, which must be approved in advance.

The parties agree that to the extent permitted by law, Holiday in Lieu Pay is special compensation and shall be reported as such pursuant to Title 2, 19 19 of 518
11 CCR 571(a)(5) and 571.1(b)(4) as Holiday Pay. However, CalPERS ultimately determines whether any form of compensation qualifies as special compensation.

Employees in the following classifications do not work in positions that require scheduled staffing without regard to holidays. For employees in these classifications, they are expected to take the holiday off. Employees may be required to work on a holiday based on Department needs:

Professional Non-Sworn: Community Services Officer I, Community Services Officer II, Police Fleet Coordinator, Supervisor of Support Services
If any of these employees are required to work on a holiday, they shall be paid the eight (8) hours for that holiday. In addition, to being paid the eight (8) hours for the holiday, they shall be paid at time and one-half for the hours they worked on the holiday The hours worked on the holiday can be banked at compensatory time if they have not reached the maximum compensatory time off accrual provided in Article 27.6 of this MOU.

8.3 Weekend Holidays: For those employees whose normal workweek begins on Monday, when a holiday falls on a Sunday, the following Monday shall be deemed to be the holiday in lieu of the day observed. If a holiday falls on a Saturday in the case of employees whose normal workweek ends on Friday, the employee shall be entitled to the Friday prior to the holiday.

For those employees who work an alternate work schedule, e.g., 4/10 plan, when a holiday falls on a regularly scheduled day off, the first work day following the observed holiday shall be deemed to be a holiday, e.g., Tuesday, when the observed holiday falls on a Sunday or Monday (and Monday is the employee’s regular day off). In this example, if the employee’s regular day off is not Monday, then Monday shall be deemed the holiday).

If the observed holiday falls on a Friday (and Friday is the employee’s regular day off) or Saturday, it shall be the last workday prior to the observed holiday, e.g., Thursday.

9.0 Sick Leave:

9.1 Sick Leave Accruals: Every full-time employee shall accrue sick leave time at the rate of 80 hours per year, 3.08 hours per pay period. Unused sick leave may be accumulated without limit. Employees who lateral from an outside agency (i.e., immediately prior to hire at the City of Laguna Beach) from the same or similar classification into which they are hired at Laguna Beach shall receive forty (40) hours of sick leave upon hire. 20 20 of 518
12 Sick leave earned between June 13, 1988 and December 23, 2013 shall be used before sick leave earned prior to June 13, 1988 or after December 23, 2013.

9.2 Penalty for Sick Leave Abuse: When in the judgment of the Chief of Police or their designee, an employee is suspected of abusing their sick leave (i.e., using sick leave for a purpose not authorized by this MOU or the law), the Chief of Police or their designee may require a physician's certificate.

9.3 Sick Leave and Temporary Disability: An employee who is entitled to temporary disability indemnity under the State Labor Code may elect to take that number of hours or portions of hours of their accumulated sick leave, or their accumulated vacation, as when added to the disability indemnity will result in a payment to the employee of their full salary. When accumulated sick leave, or vacation, or both, are exhausted, the employee may be still entitled to receive disability indemnity.

9.4 Sick Leave for Dependent Care: Employees shall be eligible to use accrued sick leave in accordance with the law to care for an ill parent (including parent in law), spouse registered domestic partner, child, grandparent, grandchild sibling or “designated person”. The amount of sick leave which can be used for such purpose is one half of one year’s annual accrued sick leave, which is currently equal to 40 hours per year.

9.5 Illness While on Vacation: An employee who becomes ill while on vacation may have such period of illness charged to their accumulated sick leave instead of to vacation provided that:
a) Immediately upon return to duty, the employee submits to their immediate supervisor a written request for sick leave;

9.6 Holidays During Sick Leave: Observed holidays occurring during sick leave shall not be counted as a day of sick leave.

9.7 Payment for Unused Sick Leave:

Payment for accrued sick leave is available as follows:
a) Sick leave earned commencing June 13, 1988 through December 22, 2013: shall converted at 100% of the employee’s base hourly rate of pay as of December 22, 2013 into the City’s Retirement Health Savings (RHS) Plan and may not be converted to cash.
b) Sick leave earned on or after December 23, 2013 shall converted at the rate of fifty percent (50%) of the employee’s base hourly rate of pay into 21 21 of 518
13 the City’s Retirement Health Savings (RHS) Plan and may not be converted to cash.
c) Upon separation from the City, any sick leave not cashed into the RHS can be converted to CalPERS service credit per Government Code section 20965. The percentage used for conversion to service credit will be as set forth in paragraphs a-b above, i.e., based on when it was earned.
d) Conversion of sick leave - into the RHS Plan can be requested in October or May of each fiscal year or upon death, retirement for disability or service, resignation or layoff but not if dismissed or terminated for cause. Sick leave not cashed (into the RHS Plan) in may be carried over for cash-in to the RHS Plan during October or May of future fiscal years.

Cash-in into the RHS Plan may be made one additional time each year under extraordinary circumstances if approved by the Chief of Police and the Director of Human Resources & Risk Management.

9.8 Family Leave: The City shall provide family leaves as required by State and Federal law, which to the extent permitted by law shall run concurrent with other leaves provided by the City.

10.0 Bereavement Leave: Whenever an employee is compelled to be absent from duty by reason of the death, or critical illness where death appears to be imminent, of either the members of the immediate family of the employee, the employee’s spouse or domestic partner, such person shall be entitled to a maximum of three (3) workdays absence with pay, as to each such instance of death or critical illness, up to a maximum of six (6) workdays per year.
"Immediate family" of the employee, the employee's spouse or domestic partner shall be construed to mean: father, mother, step-parents, brother, sister, stepsiblings, wife, husband, child, step-child, grandmother, grandfather or any relative of the employee or employee' s spouse residing in the employee' s household for two (2) or more years.

Employees who have been with the City for at least thirty (30) days before the leave commences shall receive additional leave up to two (2) days without pay, in any one (1) instance (which must be used within three (3) months from the date of death and which days do not need to be taken consecutively), for bereavement leave related to the death of an immediate family member. Employees may use any paid vacation and accrued and available sick leave, which is otherwise available to the employee for this purpose.

11.0 PERS - Disability Benefits Program: The purpose of this program is to provide a percentage of base salary to employees who are disabled from all employment, and who have filed for and are awaiting approval of a disability retirement from the Public Employees' Retirement System.
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14 11.1 Eligibility: All employees who have five (5) years of service or more under the Public Employees' Retirement System and who have exhausted the employee’s accumulated sick leave and vacation benefits may be eligible for disability benefits hereunder.

11.2 Amount of Benefit: An eligible employee will receive a monthly benefit which is approximately equivalent to the benefit the employee would receive when disability retirement becomes effective.

The Director of Human Resources & Risk Management will obtain an estimate from the Public Employees' Retirement System as to what benefit the employee is entitled and will recommend the amount of the benefit. The benefit will commence on the first day of the payroll period following the last day of sick leave or vacation available to the employee. The disability benefit will cease on the last day on the City payroll before the effective date of the disability retirement.

If the employee is receiving disability benefits from another source, the City's disability benefit will be no greater than the difference between the benefit provided by the other source and the anticipated benefit under PERS.

11.3 Status of the Employee: The eligible employee will be considered to be on disability leave and will not accrue any other benefit provided by the City.

11.4 Disability Benefit: For industrial disability retirements initiated by the City for sworn members of the Association (i.e., those employees who are eligible to receive benefits per Labor Code section 4850), if the retirement system has not taken action on the retirement by the employee's last day on the payroll, the City Manager may authorize lending an amount equal to the estimated retirement benefit to the employee on an interest-free basis on the condition that the loan be repaid within 30 days of receipt of retroactive payment of the retirement by the Public Employees' Retirement System. Such agreement shall be made in writing.

12.0 Educational and Professional Development Reimbursement Program: The purpose of this program shall be the reimbursement for tuition and book expenses to employees attending classes on the employee’s own time that are to the direct benefit of the individual employee and the City. The approval of a request is subject to budgetary limitations.

12.1 Eligibility: All regular employees shall be eligible for reimbursement under this program. Employees who have not completed their probationary period may also be eligible for reimbursement under this program if the job performance of such employees, as indicated by the Chief of Police, appears to show promise of completing the probationary period. 23 23 of 518
15 12.2 Procedure: The Chief of Police will determine what types of courses will be allowed for reimbursement prior to commitment by the employee. Courses considered by the Chief of Police for reimbursement shall be designed to directly improve the knowledge of the employee in the public service which will improve performance and enhance advancement opportunities. The Chief of Police may recommend reimbursement upon the successful completion of college or professional conference/development courses.

Each employee is limited to a maximum payment of one thousand dollars ($1,000) per fiscal year, dependent upon the availability of budgeted monies.

12.2.1 City Manager Approval: The City Manager may authorize payment of additional educational reimbursement beyond the maximum payment for employees who are seeking formal degrees.

13.0 Salary Continuance (4850 Rule): The purpose of this rule is to provide a uniform policy and procedure for implementing Section 4850 of the State Labor Code which provides up to one (1) year salary continuance for safety employees who cannot work due to job incurred injury or illness.

13.1 Definitions
a) Safety Employees - All employees covered by Labor Code Section 4850.
b) 4850 Pay - Compensation provided to safety employees pursuant to Section 4850 of the Labor Code.

13.2 Salary Continuance Policies and Procedures
a) If a safety employee is released from work by a physician due to an onthe-job illness or injury, that employee shall be placed on 4850 pay. b) The employee shall remain on 4850 pay until one of the following occurs:

1. The employee has received 4850 pay for fifty-two (52) weeks which is two thousand eighty (2080) hours for most employees.

2. The employee is released by a physician to return to work either with or without restrictions.

3. The City in good faith determines that the injury is not job related or that the employee is capable of assuming their regular assignment. 24 24 of 518
16 4. The employee is determined to be permanently disabled from their normal occupation and an application for disability retirement has been filed with the Public Employees' Retirement System. (4850 pay shall terminate on the day before the effective date of the disability retirement.) The City may provide advance disability pension payments pursuant to PERS law.

5. The employee voluntarily resigns their position with the City.

14.0 Light Duty: When an employee is authorized by a physician to return to work with restrictions, the City may assign and schedule the employee on a temporary basis to perform departmental duties from which the employee has not been restricted and which the employee has been found capable of performing. These duties need not be duties which are required or included as part of the employee's normal assignment. The employee shall suffer no reduction in salary or benefits upon such temporary assignments. The granting and continuation of light duty shall be within management’s discretion.

Employees on light duty who are absent from work for a physical therapy or doctor’s appointment related to their injury are entitled to up to a maximum of four (4) hours off from work per week with pay for such appointments with supervisor approval. If such an employee needs more than four hours off during regular work hours, with supervisor approval, they may either flex the time off during the same workweek (i.e., work additional hours on another day during the week for the hours above four hours) or use accrued leave to cover the absence. The paid time off from work described in this paragraph must be related to the workers’ compensation injury or illness for which the employee was released to return to work light duty.

15.0 Retirement: The City contracts with the Public Employees' Retirement System for administration of the retirement program. Coverage for regular full-time employees is as follows:
a) Retirement Formula

1. Safety members
Safety unit members hired on or before April 2, 2012, are covered by the 3% @ 50 formula provided for by the Public Employees’ Retirement Law at Government Code section 21362.2.

Safety unit members hired on or after April 2, 2012, who do not meet the definition of “new members” as defined by the Public Employees’ Pension Reform Act of 2013 (PEPRA), are covered by the 3% @ 55 formula provided for by the Public Employees’ Retirement Law at Government Code section 21363.1. This formula applies to any member hired between April 2, 2012 and December 31, 2012 as well as any member hired after January 25 25 of 518
17 1, 2013 who is a lateral hire from another PERS agency, public agency with reciprocity or a member who has had less than a six month break in service from their previous public agency employment.

Safety unit members hired on or after January 1, 2013 who are defined as “new members” under the PEPRA, are covered by the 2.7% @ 57 formula provided for by the Public Employees’ Retirement Law at Government Code section 7522.25(d).

2. Professional members
Unit members who are not “new members” as defined by the Public Employees’ Pension Reform Act of 2013 - PEPRA are covered by the 2.5% @ 55 formula provided for by the Public Employees’ Retirement Law at Government Code section 21354.4.

Unit members who are defined as “new members” under the PEPRA, are covered by the 2% @ 62 formula provided for by the Public Employees’ Retirement Law at Government Code section 7522.20(a).
b) Employee Contributions to the Retirement System

1. Safety employees
a. Safety employees subject to the 3% @ 50 and 3% @ 55 Formulas These employees shall contribute nine percent (9%) of compensation earnable as the required member contribution.

In addition to the nine percent (9%) of compensation earnable employee-paid member contribution noted above, these employees shall pay an additional three percent (3.0%) of compensation earnable of the required employer contribution as cost sharing in accordance with Government Code section 20516(f).

Thus, these employees shall pay the full nine percent (9%) of compensation earnable member contribution and three percent (3%) of compensation earnable of the required employer contribution as cost sharing for a total of twelve percent (12%) of compensation earnable for retirement contributions.
b. Safety employees subject to the 2.7% @ 57 Formula.

These employees shall pay the statutorily mandated employee contribution rate of one half of the total normal cost as determined each year by CalPERS in its annual valuation report.
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18 2. Professional employees
a. Professional employees subject to the 2.5% @ 55 Formula These employees shall contribute the eight percent (8%) of compensation earnable as the required member contribution. b. Professional employees subject to the 2% @ 62 Formula These employees shall pay the statutorily mandated employee contribution rate of one half of the total normal cost as determined each year by CalPERS in its annual valuation report.
c) Optional Benefits
The following list of optional benefits is listed here in the MOU for the convenience of the parties to reflect what is currently in the City’s contract with CalPERS. It is the City’s contract with CalPERS and the Public Employees’ Retirement Law that determines the application of these benefits to members of the Association.

1. 1959 Survivor's Benefit: The City’s contract with CalPERS provides Level 4 coverage under the 1959 Survivor's Benefit per Government Code section 21574. Employees pay the employee contribution for this benefit.

2. Pre-Retirement Option 2W Benefit: The City’s contract with CalPERS provides for Pre-Retirement Optional 2W Benefit as set forth in Government Code Section 21548.

3. Military Service Credit: The City’s contract with CalPERS provides the Military Service Credit option set forth in Government Code section 21024. The costs are borne by the Member electing to purchase the service credit.

4. Military Service Credit For Retired Persons: The City’s contract with CalPERS provides the Military Service Credit for Retired Persons option set forth in Government Code section 21027. The costs are borne by the Member electing to purchase the service credit.

5. Cost of Living Allowance: The City’s contract with CalPERS provides the benefit known as the 2% Cost of Living Allowance Increase as set forth in Government Code section 21329.
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19 6. Retired Death Benefit: The City’s contract with CalPERS provides the $500 Retired Death benefit as set forth in Government Code section 21620.

7. Two Years Additional Service Credit: The City’s contract with CalPERS provides the Public Service” – Layoff Period – as set forth in Government Code section 21022. All associated costs are borne by the member electing to purchase the service credit.

8. Pre-Retirement Death Benefits to Continue after Remarriage of Survivor: The City’s contract with CalPERS provides the PreRetirement Death Benefits to Continue after Remarriage of Survivor as set forth in Government Code sections 21551.

9. Prior Service: The City’s contract with CalPERS provides the prior service benefit as set forth in Government Code section 20055.

10.Service Credit for Unused Sick Leave: The City’s contract with CalPERS provides the Service Credit for Unused Sick Leave benefit as set forth in Government Code section 20965.

11.Public Service Credit for Peace Corps, AmeriCorps, VISTA or AmeriCorps Service: The City’s contract with CalPERS provides the Public Service Credit for Peace Corps, AmeriCorps, VISTA or AmeriCorps Service Credit as set forth in Government Code section 21023.5.

12. For employees who are not defined as new members by the PEPRA, their retirement will be calculated by the One Year Final Compensation provision as set forth in Government Code section 20042

13. For employees defined as new members by the PEPRA, their retirement will not be calculated by the One Year Final Compensation provision, but rather, based on the three (3) year average compensation as provided for in the PEPRA at Government Code section 7522.32(a).

16.0 Medical Benefits: All regular full-time employees and their dependents are eligible for enrollment in the medical, vision and dental benefit plans as agreed to between the City and the Association.
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20 16.1 Rates: Subject to the provisions of Section 16.2, the City shall pay 100% of the cost of medical care coverage for the employee only coverage, 80% of the cost for employee plus one dependent coverage, and 80% of the cost of the employee plus two or more dependents coverage. The employee shall be responsible for the remaining 20% portion of the premium not paid by the City. Unless the parties agree otherwise, the City’s obligation to pay 80% of the cost for employee plus one dependent coverage and the cost of employee plus two or more dependents coverage will “sunset” on the last day of the term of this MOU whereupon the City’s obligation will revert to paying 75% of the cost of such coverage. If the cost of medical insurance premium increases by ten percent (10%) or more in any calendar year of this MOU, the parties agree that either party may reopen labor negotiations on this Article 16.

16.2 City Contribution Amount Maximums: The City’s contribution to any employee’s medical insurance premium under the premium sharing formula contained in Section 16.1 of the MOU shall be limited to the amount of the contribution under the above premium sharing formula for the HMO plan rate for an employee plus two or more dependents, regardless of the employee’s choice of medical plan.

16.3 Medical Coverage for Domestic Partners: Medical coverage shall be provided for domestic partners. Dental coverage shall be provided to domestic partners under the same terms as other dependents.

16.4 Medical Insurance Waiver:

Pursuant to the Affordable Care Act (ACA) Employer Mandate “affordability” determination, an Eligible Opt-Out Arrangement requires the following for employees who opt-out of employer-provided health coverage and receive cash in lieu:

1. Employee must provide reasonable evidence that the employee and each member of the employee’s expected tax family
(individuals the employee expects to claim personal exemption deduction) have or will have minimum essential coverage (other than coverage in the individual market, whether or not obtained through Covered California) during the period of coverage to which the opt-out arrangement applies;

2. The opt-out payment may not be made if the employer knows or has reason to know that the employee or any other member of the employee’s expected tax family does not have or will not have the alternative coverage;

3. The evidence of alternative coverage must be provided every plan year to which the eligible opt-out arrangement applies; and 29 29 of 518
21 4. The reasonable evidence will be an attestation signed by the employee, attesting to the above, and must be provided no earlier than a reasonable period of time before each plan year begins.

Employees who are able to satisfy the above criteria may opt out of participation in the City’s plan and will be paid sixty percent (60%) of the HMO employee only rate. This payment will be made to the employee on a biweekly basis as a part of the employee’s payroll check.

16.5 Flexible Spending Plan: The City will make a flexible spending plan available to employees pursuant to IRS Code Section 125 to allow an employee to contribute a portion of their income each year on a pre-tax basis into an account from which they may receive reimbursement for medical, dental and child care expenses.

16.6 Medical Plan Coverage for Retirees: Employees Hired Before January 1, 2014: The option of continuing membership in the City’s medical plan shall be available to employees who retire from employment with the City after a minimum of three (3) years of service. The employee will be responsible for the entire premium.

Employees hired on or after January 1, 2014: The option of continuing membership in the City’s medical plan shall be available to employees who retire from employment with the City after a minimum of ten (10) years of service. The employee shall be responsible for the entire premium.

16.7 Medical Plan Coverage Part-time Regular Employees: Employee-only medical benefits shall be provided to regular part-time employees.

Dependent medical and dental premiums for regular part-time employees shall not be paid by the City. Regular part-time employees shall, therefore, pay the full cost of medical and dental plan premiums for dependent coverage.

16.8 Retirement Health Savings Plan:

16.8.1 City Contribution: All employees represented by the Association are required to participate in the City’s Retirement Health Savings Plan (RHS). The City, on behalf of all employees represented by the Association, will make a pre-tax contribution of one hundred dollars ($100.00) per month to the RHS plan on the employee’s behalf, paid at forty-six dollars and sixteen cents ($46.16) per pay period. After an employee has completed seven (7) years of service with the City, their RHS contribution will increase to three hundred dollar ($300) per month paid at one hundred and fifteen dollars and thirty-eight cents ($138.46) per pay period.
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22 16.9 Medical Task Force: The City agrees to continue the Medical Task Force comprised of one (1) representative from each bargaining unit including management, and meeting on a regular basis for the purpose of reviewing the status of the medical plans.

16.10 Reopener - Change in Medical Plan: If, during the term of this MOU, a decision is made to change or modify the current medical care coverage, the entire Article 16 shall be reopened for negotiations.

17.0 Life Insurance: All regular full-time employees are covered by a fifty thousand dollar ($50,000) Life and Accidental Death and Dismemberment policy.

18.0 Long Term Disability: All regular full-time employees are eligible for Long Term Disability Insurance coverage of sixty percent (60%) of the first five thousand dollars ($5,000) of salary after a sixty (60) calendar day elimination period.

Employees are eligible for coverage after sixty (60) days of employment.

19.0 Mileage: The reimbursement rate for use of personal vehicles for City business shall be the standard mileage rate allowed by the Internal Revenue Service.

20.0 On-Call Pay:
a) On-Call Detectives: The on-call detective will begin their on-call shift each Monday at 7:00 a.m. through the following Monday at 7:00 a.m. (a seven (7) day period). During which, the on-call detective will receive six (6) hours of oncall pay. Each month, the Investigations Sergeant will provide the entire Police Department with the monthly on-call schedule. In the event the Watch Commander feels the need to call-out or notify a detective, the on-call detective will be called, and will evaluate the need to respond and/or provide the necessary investigative guidance. The on-call detective must respond to a phone call within ten (10) minutes and be able to respond to the City within one (1) hour of the notification, when a response is necessary. The on-call detective must also immediately notify the Investigations Sergeant for final approval.

The on-call detective will only receive overtime compensation if they respond outside of their normal working hours. Overtime will be provided if the detective works at home, while on the phone handling an investigative incident that does not dictate a physical response. All overtime must be evaluated and approved by the Investigations Sergeant.

The expectations of the on-call detective’s use of the take-home vehicle while on on-call status are addressed in Police Department Policy. b) On-Call Court Pay: Employees who are placed on call by the court shall receive two (2) hours compensation in the morning and two (2) hours in the 31 31 of 518
23 afternoon. If an employee was on-call in the morning and is then called to court in the afternoon, they shall receive on-call pay only for the morning as they are being paid per this paragraph for the afternoon. If an employee is placed oncall for court in the afternoon, they shall not receive on-call pay for the morning.

On-call pay shall not be made if the employee receives court pay for appearing or if they are taken off-call at least 24 hours in advance. Officers shall receive a minimum of three (3) hours compensation for court appearances (i.e., the officer only testifies for one hour, but will receive a minimum of three hours of court time). Employees shall submit payment requests in the pay period when they appeared in court. There should not be an accumulation of court time over multiple pay periods if a case is trailed or the employee remains on call.

21.0 Military Leave: Military leave shall be granted in accordance with the provisions of state and federal law. All employees entitled to military leave shall give the appointing power an opportunity within the limits of military regulations to determine when such leave shall be taken.

22.0 Jury Duty: Employees in the unit are entitled to up to one hundred and twenty (120) hours of paid time off each calendar year for jury duty. An employee accepted for jury duty shall immediately notify the Chief of Police or designee in writing.

Employees who are on jury duty are required to return to work if released by the Court from jury duty and they will have at least four hours of work left in their day after traveling back to work. In addition, if an employee calls into the court (or learns over the internet) on the day before reporting for jury duty and finds out that they must report to jury duty the next day, they are required to notify their supervisor prior to the start time of their work shift.

23.0 Exceptional Performance Pay Plan: In accordance with the administrative guideline, an employee performance evaluation report and a performance pay plan justification shall be prepared and submitted to the City Manager with all recommendations for early step advancement or performance pay bonus for employees whose performance merits such an increase.

23.1 Amount: The available Exceptional Performance Pay (EPP) bonus shall be any amount up to five percent (5%) of gross pay. The total of a performance pay bonus and an educational award for a degree, when added together, shall not exceed seven and one-half percent (7.5%).

24.0 Educational Incentive Pay:
a) Educational Degree: Sworn police department employees in the classifications of Police Officer, Police Corporal and Police Sergeant shall be eligible for an educational incentive pay of two and one-half percent (2.5%) for an AA degree, or pay of five percent (5%) for a BA or BS degree. These degrees enhance employees ability to perform their job. 32 32 of 518
24 Educational incentive pay shall be paid bi-weekly.

The parties agree that to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such (for classic and new members) pursuant to Title 2 CCR, Section 571(a)(2) and Section 571.1 (b)(2) Educational Incentive Pay. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation. b) POST Certifications: Sworn in the classifications of Police Officer, Police Corporal and Police Sergeant are eligible for the following:

1. Four percent (4.0%) of base salary for an Intermediate POST Certificate;

2. Nine percent (9.0%) of base salary for an Advanced POST Certificate. The two POST certificates are not cumulative. An employee with Advanced POST will receive nine percent (9.0%) and not any additional compensation for first having an Intermediate POST Certificate.

The parties agree that to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such (for classic and new members) pursuant to Title 2 CCR, Section 571(a)(2) and Section 571.1 (b)(2) Peace Officer Standard Training (POST) Certification Pay. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.
c) Public Safety Dispatchers, Senior Public Safety Dispatchers and the Support Services Supervisor, are eligible for the following:

1. Five percent (5.0%) of base salary for a Dispatcher Advanced POST Certificate. This certificate enhances employees’ ability to perform their job.

Educational incentive pay shall be paid bi-weekly.
d) When an employee receives either an Intermediate or Advanced POST Certificate they shall provide the City with a copy of the Certificate and will then be paid by the City retroactively to the effective date of the Certificate.

The parties agree that to the extent permitted by law, the compensation in this section is special compensation and shall be reported as such (for classic and new members) pursuant to Title 2 CCR, Section 571(a)(2) and Section 571.1 (b)(2) Educational Incentive Pay. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation. 33 33 of 518
25 25.0 Bilingual Pay: The City shall agree to establish a separate bilingual pay program for sworn and professional staff employees of the Police Department who are required to speak, read, and/or write in languages other than English as part of the employee’s regular duties of the employee’s position.

The Chief of Police shall designate which languages shall be eligible for bilingual pay.

Employees who are routinely and consistently assigned to positions requiring communication skills in languages other than English. shall be paid seventy-five dollars ($75) per month paid at the rate of $34.62 each pay period. Eligibility shall be determined by successful completion of a language competency test. Such test shall be determined and administered by the Director of Human Resources & Risk Management.

Police Department employees receiving bilingual pay prior to July 1, 1996 shall not be required to complete a proficiency exam; however, they will be subject to all other elements of the program as described above.

26.0 Assignment Pay:

26.1 Police Records Specialists Assignment Pay: Police Records Specialists will receive five percent (5%) pay for being routinely and consistently assigned to the Police Records Division.

26.2 Homeless Liaison Officer Pay: A Police Officer or Police Corporal selected to the assignment of Homeless Liaison Officer shall receive compensation equal to ten percent (10%) of their base pay at their current step on the salary schedule depending on their rank.

26.3 Canine Handler and Support Services Dog Maintenance Pay: Officers assigned as Canine Handlers and employees assigned as Support Services Dog Handlers will be paid fourteen (14) hours per month at two thirds (2/3) of their regular rate of pay then paid at time and one half (1.5) for the off-duty caring, grooming, feeding, training and otherwise maintaining of their department-issued canine or Support Services dog/equipment.

The parties acknowledge that the Fair Labor Standards Act (“FLSA”), which governs the entitlement to compensation for canine/Support Services Dog duties, entitles the parties to agree to a reasonable number of hours for the performance of off duty canine/Support Services Dog duties. The parties acknowledge that per the case of Leever v. City of Carson City, 360 F.3d 1014 (9th Cir. 2004), the hours for which a canine/Support Services Dog handler should be paid are supposed to be determined after an actual inquiry of the officers and Support Services Dog Handlers assigned in the canine/Support Services Dog special assignment. The parties agree that at this time, 14 hours has been determined to be the time the canine/Support Services Dog handlers spend and to ensure compliance with the law, and agree that officer canine/Support Services Dog handlers must limit their offduty hours to a maximum of fourteen (14) hours per month (unless expressly directed, or otherwise authorized, to work more hours by a supervisor) because they are only being paid for fourteen (14) hours for such duties per month. The actual time spent is subject to review by a future actual inquiry and the Association reserves the future right to request increasing such hours through the negotiations process as the program develops and in the event that circumstances warrant.

It is the intent of the parties through the provisions of this section to comply with the requirements of the FLSA. In addition, both parties believe that this section of the MOU does comply with the requirements of the FLSA.

The City and Association understand and agree that the Canine/Support Services Dog Handler Maintenance Pay is intended to compensate officer canine-handlers and employees assigned as Support Services Dog Handlers for all off duty hours spent caring, grooming, feeding, training and otherwise maintaining their assigned canine/Support Services Dog/equipment, in compliance with the FLSA and interpretive cases and rulings.

In addition to the canine maintenance time as aforesaid, the City agrees to compensate canine/Support Services Dog handlers for veterinary visits 35 35 of 518
27 and/or other unusual occurrences that are handled outside of the canine/Support Services Dog handlers’ regular work hours, provided that, absent an emergency, the canine/Support Services Dog handlers shall obtain supervisor approval for such care and shall submit a Variance of Duty Report. Compensation pursuant to this paragraph shall be paid at their regular overtime rate, not the two-thirds (2/3) rate described above.

Unless the Chief of Police agrees otherwise, canine/Support Services Dog handlers are required to live within twenty (20) miles of City Hall. Canine officers and employees assigned as Support Services Dog Handlers will not be compensated for canine/Support Services Dog maintenance when the police service dog is kenneled at a location other than the canine/Support Services Dog handler’s residence.

City agrees to provide canine handlers but not employees assigned as Support Services Dog Handlers with the use of a City patrol vehicle for the transportation of the police canine to and from the canine handler’s personal residence. Employees assigned as canine handlers shall not be compensated in any manner whatsoever for time spent traveling to and from work because they have been provided with a City patrol vehicle. In the rare case where the assigned City patrol vehicle is not available, due to maintenance or any other circumstance, and the canine handler is permitted to rely on their own personal transportation of the police canine to and from any work related event or service, then the handler will be compensated at the current mileage reimbursement rate.

At the conclusion of the police canine's and Support Service dog’s service life, the handler may exercise the option of adopting the retired canine/ Support Services dog at a cost of $1.00 to the handler and will hold the City harmless against any claims arising from alleged incidents involving the canine Support Services dog after its retirement as well as any time or costs incurred by the handler after the canine's Support Services dog’s retirement.

There is no period of probation required as a canine/Support Services dog handler and no permanency or seniority may be obtained for a handler.

Police Officers assigned as canine handlers and employees assigned as Support Services Dog Handlers shall serve at the pleasure of the Chief of Police (i.e., the assignment is an at-will assignment) and may be reassigned at the sole discretion of the Chief.

26.4 Use of City Vehicles/Motorcycle Duty: Police officers assigned to motorcycle duty may use the motorcycle to commute to and from work if they live within thirty (30) miles of City Hall and within Orange County. (The Chief of Police or their designee may in their sole discretion waive either the thirty (30) miles or County residency limitations.) Employees assigned to 36 36 of 518
28 motorcycle duty shall receive five percent (5%) of base pay because they are routinely and consistently assigned to operate and/or patrol on motorcycle. These employees are required to clean and maintain their assigned motorcycle while on duty.

The parties agree that to the extent permitted by law, the compensation for Motorcycle Duty is special compensation and shall be reported (for both classic and new members) as such pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) Motorcycle Patrol Premium. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

26.5 School Resource Officers: A Police Officer or Police Corporal selected to the assignment of School Resource Officer shall receive compensation equal to five percent (5%) of their base pay at their current step on the salary schedule depending on their rank.

The parties agree that to the extent permitted by law, the compensation for School Resources Officer is special compensation and shall be reported (for both classic and new members) as such pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) Juvenile Officer Premium.

However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

26.6 Detectives: A Police Officer or Police Corporal selected to the assignment of Detective shall receive compensation equal to five percent (5%) of their base pay at their current step on the salary schedule depending on their rank.

A Sergeant assigned to Detectives (as a Detective Sergeant) will also receive this pay.

The parties agree that to the extent permitted by law, the compensation for Detectives is special compensation and shall be reported (for both classic and new members) as such pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) Detective Division Premium. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

26.7 Field Training Officers: A Police Officer selected to the assignment of Field Training Officer is routinely and consistently assigned to train employees. Police Officers who are assigned as Field Training Officers must successfully complete the P.O.S.T. specialized classroom and certification training before performing their FTO duties. The officers selected to serve as FTOs must maintain the standards of professionalism and the ability to teach, guide and mentor new officers. 37 37 of 518
29 Upon completion of the P.O.S.T. specialized classroom and certification training, the Police Officer(s) assigned as FTOs will receive ten percent (10%) above their base pay, as compensation, only when training an officer who is in the field training program.

The duties of the FTO involve being a positive role model, clearly communicating the expectations of a police officer, teaching the trainee the policies of the department, correctly applying concepts learned in the classroom to field training operations, and evaluating the trainee on their progress in the program. Ultimately, the FTO is responsible for ensuring the shift duties are performed properly and completely and communicating any deficiencies to their chain of command.

POST Field Training Officer (FTO) Training Requirements:
(1) Every newly appointed FTO shall:
(A) Successfully complete a POST-certified Field Training Officer Course prior to training new officers, and;
(B) Complete 24-hours of update training every three years following completion of the Field Training Officer Course.

The update training shall be satisfied by:

1. Completing a POST-certified Field Training Officer
Update Course, or

2. Completing 24-hours of department-specific training in the field training topics contained in the Field Training Officer Update
(2) Every reassigned FTO, after a 3 year or longer break in service as an FTO, shall
(A) Successfully complete a POST-certified Field Training Officer Update Course prior to training new officers, and (B) Complete 24-hours of update training every three years.

The update training shall be satisfied by:

1. Completing a POST-certified Field Training Officer
Update or

2. Completing 24-hours of department-specific training in the field training topics contained in the Field Training Officer Update Course
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30 The parties agree that to the extent permitted by law, the compensation for Field Training Officers is special compensation and shall be reported (for both classic and new members) as such pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) Training Premium. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

26.8 Communications Training Officer Pay: Employees in the classification of Public Safety Dispatcher who are routinely and consistently assigned as and perform the duties of Communications Training Officers shall receive ten percent (10%) of their base pay for each hour of training that they provide.

The parties agree that to the extent permitted by law, the compensation for Communications Training Officer Pay is special compensation and shall be reported (for both classic and new members) as such pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) Training Premium. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

26.9 Shift Differential Pay: If an employee’s regular work schedule has at least six (6) hours between the hours of 5:00 p.m. and 5:00 a.m. of each workday, they shall receive a night shift differential of two and one half percent (2.5%) for all hours worked on their shift. These employees are routinely and consistently scheduled to work other than a standard "daytime" shift. Shift differential does not apply to employees working overtime on a non-regularly scheduled day.

The parties agree that to the extent permitted by law, the compensation for Shift Differential Pay is special compensation and shall be reported (for both classic and new members) as such pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) Shift Differential. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.

26.10 Department Training Officer Pay: An employee who is selected to the assignment of Department Training Officer shall receive compensation equal to five percent (5%) of their base pay at their current step on the salary schedule.

The parties agree that to the extent permitted by law, the compensation for Department Training Officer Pay is special compensation and shall be reported (for both classic and new members) as such pursuant to Title 2 CCR, Section 571(a)(4) and Section 571.1 (b)(3) as Police Administrative Officer Pay. However, it is ultimately CalPERS who determines whether any form of pay is reportable special compensation.
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31 26.11 Neighborhood Enhancement Team Pay: Any employees in the classifications of Police Corporal and Police Sergeant selected to supervise the Neighborhood Enforcement Team shall receive compensation equal to five percent (5%) of their base pay at their current step on the salary schedule.

26.12 Administrative Sergeant Pay: Any employees in the classification of Police Sergeant selected to the Administrative Sergeant assignment shall receive compensation equal to five percent (5%) of their base pay at their current step on the salary schedule.

27.0 Overtime/Compensatory Time: The following subsections define overtime work as it applies to the Police employees.

27.1 Sworn Personnel: Sworn personnel in the Police Department shall receive compensatory time or overtime pay, at the request of the employee and subject to the approval of the Chief of Police, at the rate of time-and-onehalf for all actual hours worked in excess of the employee’s regularly scheduled hours each workday. Employees in the classifications of Police Officer, Police Corporal and Police Sergeant are subject to the 28-day FLSA work period in accordance with section 7(k) of the FLSA.

27.2 Professional Staff Employees:

Employees shall receive compensatory time or overtime pay at the rate of time and one-half for all hours worked in excess of forty (40) hours in a given work week.

27.3 Actual Hours Worked: Actual hours worked shall be defined as (1) time the employee is on duty performing assigned tasks and otherwise carrying out the duties of the employee’s position, and (2) leave time taken as vacation, sick, holiday, or bereavement leave. Therefore, compensatory time shall not be counted as actual hours worked when computing hours in excess of a regularly scheduled shift or hours in excess of forty (40) in a work week.

27.4 Call-Back
Sworn personnel who are called with less than twenty-four (24) hours’ notice to report to work on a regularly scheduled day off, or called back to work following completion of a shift, shall receive a minimum of four (4) hours of pay. However, if a sworn employee is called back prior to the start of their regularly scheduled shift and the call back time cuts across the time of their regularly scheduled shift, they shall receive time and one half for the hours prior to their shift (not a four hour minimum) and their regular pay from the start of their shift. Professional staff personnel shall receive 40 40 of 518
32 compensation at time-and-one-half pay for all hours worked as the result of a call-back.

27.5 Briefing or Shift Preparation Time: Briefing or shift preparation time of up to thirty (30) minutes may be added to an employee's work day.

Compensation for this time shall be paid at the straight-time rate.

27.6 Compensatory Time: A maximum of one-hundred (100) hours of compensatory time may be accrued by employees
An employee wishing to use their accrued compensatory time off shall provide the City with reasonable notice. Reasonable notice is defined as at least ten (10) calendar days. If reasonable notice is provided, the employee’s request may not be denied unless it is unduly disruptive to the department to grant the request. Having to backfill an employee on overtime does not cause the request to be unduly disruptive. A request to use compensatory time off without reasonable notice may still be granted within the discretion of the supervisor or manager responsible for considering the request.

28.0 Alternate Work Schedule: The City and the Association agree to the alternate work schedules including, but not limited to, the "3/12" plan, (for sworn personnel assigned to the “3/12 plan” this is twelve (12) 12 hour and 20 minutes shifts per work period with one additional 12 hour shift worked during the 28-day FLSA work period) the "4/10" plan, and the "9/80" plan for employees represented by the Association. As provided in Article 28.2, there are some employees in the unit who are assigned a traditional 5/40 work schedule.

28.1 Change/Modification: The City may change and/or modify work schedules, or terminate alternate work schedules at its sole discretion. To the extent feasible, the City shall provide the Association with advance notice of any such changes, modifications, or terminations and the reason for the change. In the twenty-eight (28) day schedule cycle (per Section 7(k) of the FLSA), which consists of two pay periods, with overtime eligibility limited to actual hours worked in excess of one hundred sixty (160) hours in any twenty-eight (28) day scheduled cycle, or extra hours worked over a regularly scheduled shift. Nothing in this paragraph, however, shall be construed to limit the right of the City to alter or abandon alternate work schedules.

28.2 Work Schedules For Professional Staff: The Association shall have the right to meet and confer both formally and informally, with the City on issues relating to alternate work schedules. The City shall consider and respond to all issues raised in a complete and timely manner.

Professional Staff employees assigned to a five (5) day, forty-hour (40) work week shall be considered Municipal Employees in accordance with 41 41 of 518
33 Personnel Rule 8.18.3; i.e., such personnel shall receive compensatory time or overtime pay at time-and-one-half only for actual hours worked in excess of forty (40) hours in a given work week. The FLSA workweek for such employees shall begin at 12:00 a.m. on Monday and end the following Sunday at 11:59 p.m.

Professional staff employees may work a “9/80” schedule. A 9/80 work schedule consists of alternate weeks of four (4) consecutive workdays of nine (9) consecutive hours each, followed by five (5) consecutive workdays, four of which consist of nine (9) consecutive hours each and one (1) day of eight (8) consecutive hours.

For Professional staff employees assigned to a “9/80” work schedule, their designated FLSA workweek shall begin exactly four hours after the start time of their eight (8) hour shift on the day of the week that corresponds with the employee’s alternating regular day off. For example, if the employee’s alternating regular day off is a Friday, their FLSA workweek begins four (4) hours after the start of their workday on Friday.

Dispatchers, Senior Dispatchers and Jailers are assigned to a “3/12” work schedule. A 3/12 work schedule consists of alternate weeks of three (3) consecutive workdays of twelve (12) consecutive hours each, followed by four (4) consecutive workdays, three of which consist of twelve (12) consecutive hours each and one (1) day of eight (8) consecutive hours.

For Dispatchers, Senior Dispatchers or Jailers working the 3/12 work schedule, their designated FLSA workweek shall begin exactly four hours after the start time of their eight (8) hour shift on the day of the week that corresponds with the employee’s alternating regular day off. For example, if the employee’s alternating regular day off is a Friday, their FLSA workweek begins four (4) hours after the start of their workday on Friday.

28.3 Benefit Modification for Those Assigned to Alternate Work Schedules:

The City and the Association agree to the following modifications in benefits for employees assigned to alternate work schedules:
a) The City shall have the right, at its sole discretion, to pay or provide time off for holidays;
b) The City shall have the right, at its sole discretion, to require employees to use vacation or compensatory time in conjunction with scheduled holidays taken off;
c) The City shall have the right, at its sole discretion, to establish the Fair Labor Standards Act (FLSA) "work period" for all employees assigned to alternate work schedules.
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34 29.0 Uniforms:

With the exception of Detectives addressed in Article 30.0 below, employees in the bargaining unit are provided with uniforms to perform their job. The monetary value for the for the purchase, rental and/or maintenance of required clothing, which is a ready substitute for personal attire employees would otherwise have to acquire and maintain is as follows: Sworn $450 annually, $17.31 bi-weekly. Sworn Detectives $350 annually, $13.47 bi-weekly. Professional Staff $200 annually, $7.70 biweekly.

The parties agree that to the extent permitted by law, the monetary value for the purchase, rental and/or maintenance of required clothing is special compensation and shall be reported as such pursuant to Title 2, CCR 571(a)(5) for a unit member who are classic members under the Public Employees’ Pension Reform Act (PEPRA). This shall not be reported for “new members”. The City is not permitted to have the value of the uniforms reported as special compensation for “New Members” as defined by PEPRA.

30.0 Investigator Clothing Allowance: Police Officers assigned to the Detective Division shall be provided a monthly clothing allowance of one hundred dollars ($100).

31.0 Bullet-proof Vests: Bullet-proof vests are provided to sworn employees of the police department. As such, these employees must wear their vests while in the field or attending the police range. The same rule shall apply to any professional employee provided with a bullet-proof vest.

32.0 Layoff:

32.1 Intent of Procedure: For reasons of economy or efficiency, or in the interest or mandate of the public, reductions or curtailments of City services may be required. In such an event, it may be necessary to lay off one (1) or more City employees. The following procedure is intended to give primary consideration to seniority and job performance whenever layoff of employees is necessary.

The City's decision to abolish a position is not subject to the employee's right of appeal or grievance.
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35 32.2 Procedures:

32.2.1 Abolition of a Position: When a position within the Police Department is abolished, all employees in the subject classification shall be listed in order of the employee’s length of service with the City. The Chief of Police shall choose the least senior employee to be laid off for each position abolished.

If in any case length of service should be equal, the Chief of Police or their designee may take job performance into consideration in determining the employee to be laid off. Employees to be laid off shall be given two (2) weeks’ written notice of the action.

32.2.2 Transfer or Demotion to Avoid Layoff: Any employee who is to be laid off may request, in writing, to be transferred to a vacant position, subject to Personnel Rule 2.10, within the two (2) week notification period.

An employee who has held regular status in a lower classification within the Police Department and/or division may request, within the two (2) week notification period, demotion to a position in the lower classification or an equivalent class in order to avoid layoff. If the employee makes such a request, a list of employees shall be prepared and the subject employee shall have the employee’s name placed among the other names on said list according to the employee’s total length of service in said class and any higher class within the Police Department. Thereafter, the Chief of Police or their designee shall choose an employee to be laid off according to the provisions of this section.

32.2.3 Severance Pay: A regular employee of the City who has been employed for a minimum of two (2) years and has been laid off because of either the abolition of the employee’s position or as a result of a demotion of another employee to avoid layoff will be eligible for two (2) weeks of severance pay. A regular employee who is similarly laid off and who has worked for the City a minimum of ten (10) years will be eligible for three (3) weeks' salary upon layoff.

32.2.4 Reemployment Lists: The names of all Regular employees who were laid off or who were demoted to avoid layoff shall be placed on a reemployment list for two (2) years. Whenever a vacancy occurs in the classes from which employees were laid off, the qualifying employees on the layoff list will be notified of the vacancy, prior to announcing an open or promotional recruitment, and shall be offered the opportunity to apply for the position.
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36 In such an event, the Chief of Police or their designee shall consider the former employee(s) from the layoff list prior to considering other candidates. However, the Chief of Police or their designee shall retain the right not to appoint the former employee(s) and may request an examination to establish a new eligibility list.

33.0 Personnel File Purging: The City and Association agree that disciplinary written reprimands or lesser discipline may be removed from police department, sworn and professional staff employees' personnel files, under the following conditions:
1) The employee shall submit a written request to the Chief of Police requesting the removal of a specific written reprimand; and 2) The written reprimand must be at least five (5) years old.

34.0 Jailers: The only Article of this MOU which applies to Part-Time Jailers is this Article. Each January thereafter, eligible Part-Time Jailers have the option to have the City either A) deposit $2,500 into a flexible spending plan to use for eligible IRS 125 expenses, or B) provide the employee with reimbursement, capped at $2,500 per calendar year for the purchase of their own medical insurance premiums. The Association agrees to hold the City harmless for any tax implications associated with Option B. Eligible Part-Time Jailers are those who have worked for the City as a Jailer for at least 1772 hours in the prior twelve months. Part-Time Jailers may utilize the grievance procedure only to challenge a violation of this Article.

35.0 Release Time: The City agrees to allow the Association (which may include the President or other members of the Association four hundred (400) hours of paid release time to conduct Association business, matters and training subject to the approval (in writing) of the Chief of Police or their designee which shall only be withheld for critical operational needs. Each year in the pay period following January 1) the City will replenish the bank to four hundred (400) hours. As such, the City will add whatever number of hours is necessary so that it has 400 hours.

The Association agrees to reimburse the City the hourly rate of a top step Police Officer to include all statutory add-ons such as PERS, unemployment and Workers’ Compensation if the release time does not result in any overtime cost. In the event that the release time requires overtime of the employee released or overtime of another employee to back fill the released hours, the Association agrees to reimburse the City at the hourly overtime rate of a top step Police Officer working overtime. The decision to require overtime or back fill will be within the City’s sole discretion.

The City shall bill the Association within thirty (30) days after such release time is used and the Association will reimburse the City within thirty (30) days of the billing.

36.0 Management Rights: The parties agree to Section 10.3 – City Rights from the City of Laguna Beach Personnel Rules and Regulations.
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37 37.0 Closing: Except as provided herein, all wages, hours, and other terms and conditions of employment presently enjoyed by affected employees shall remain in full force and effect subject to either party’s rights under the Meyers-MiliasBrown Act.

FOR THE CITY: FOR THE ASSOCIATION:

Dave Kiff
City Manager
Brian Griep
Association President
Date: Date:

Gavin Curran
Assistant City Manager/Chief
Financial Officer
Damian Stafford
Labor Relations Representative
Date: Date:

Peter J. Brown
Labor Negotiator
Date:
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Salary Range Classification Title Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Hourly $ 25.23 $ 26.50 $ 27.85 $ 29.25 $ 30.75 $ 32.24 $ 33.82 $ 35.51 POLICE - 64 Jailer Monthly $ 4,374 $ 4,594 $ 4,828 $ 5,071 $ 5,331 $ 5,590 $ 5,864 $ 6,156 Annual $ 52,485 $ 55,133 $ 57,935 $ 60,853 $ 63,976 $ 67,074 $ 70,365 $ 73,874 Animal Care Specialist Hourly $ 26.12 $ 27.44 $ 28.83 $ 30.25 $ 31.75 $ 33.37 $ 35.07 $ 36.84 POLICE - 71 Police Records Specialist1 Monthly $ 4,529 $ 4,757 $ 4,998 $ 5,244 $ 5,504 $ 5,784 $ 6,079 $ 6,386 Annual $ 54,348 $ 57,086 $ 59,979 $ 62,922 $ 66,046 $ 69,414 $ 72,949 $ 76,638 Hourly $ 28.02 $ 29.43 $ 30.87 $ 32.40 $ 34.07 $ 35.78 $ 37.58 $ 39.45 POLICE - 77 Parking Services Officer Monthly $ 4,857 $ 5,102 $ 5,352 $ 5,617 $ 5,907 $ 6,203 $ 6,515 $ 6,840 Annual $ 58,282 $ 61,226 $ 64,221 $ 67,408 $ 70,879 $ 74,440 $ 78,180 $ 82,075 Community Services Officer I Hourly $ 30.19 $ 31.72 $ 33.34 $ 34.94 $ 36.69 $ 38.54 $ 40.47 $ 42.49 POLICE - 83 Parking Services Officer/Accident Investigator Monthly $ 5,234 $ 5,498 $ 5,779 $ 6,057 $ 6,360 $ 6,681 $ 7,015 $ 7,367 Annual $ 62,807 $ 65,982 $ 69,349 $ 72,679 $ 76,317 $ 80,173 $ 84,183 $ 88,400 Animal Services Officer Hourly $ 30.93 $ 32.49 $ 34.15 $ 35.79 $ 37.58 $ 39.48 $ 41.46 $ 43.53 POLICE - 84 Monthly $ 5,361 $ 5,632 $ 5,919 $ 6,204 $ 6,515 $ 6,844 $ 7,187 $ 7,546 Annual $ 64,336 $ 67,588 $ 71,033 $ 74,453 $ 78,180 $ 82,127 $ 86,240 $ 90,546 Community Services Officer II Hourly $ 31.91 $ 33.50 $ 35.18 $ 36.91 $ 38.72 $ 40.66 $ 42.75 $ 44.90 POLICE - 88 Senior Parking Services Officer Monthly $ 5,532 $ 5,807 $ 6,098 $ 6,398 $ 6,712 $ 7,048 $ 7,412 $ 7,783 Annual $ 66,380 $ 69,684 $ 73,180 $ 76,779 $ 80,546 $ 84,582 $ 88,940 $ 93,400 Hourly $ 34.65 $ 36.33 $ 38.11 $ 40.00 $ 42.07 $ 44.12 $ 46.36 $ 48.67 POLICE - 95 Police Fleet Coordinator Monthly $ 6,006 $ 6,298 $ 6,607 $ 6,935 $ 7,293 $ 7,648 $ 8,037 $ 8,437 Annual $ 72,075 $ 75,571 $ 79,286 $ 83,219 $ 87,513 $ 91,780 $ 96,447 $ 101,241 Hourly $ 36.24 $ 38.01 $ 39.88 $ 41.91 $ 43.98 $ 46.18 $ 48.51 $ 50.91 POLICE - 96 Public Safety Dispatcher Monthly $ 6,283 $ 6,590 $ 6,914 $ 7,266 $ 7,625 $ 8,005 $ 8,409 $ 8,824 Annual $ 75,390 $ 79,081 $ 82,967 $ 87,192 $ 91,496 $ 96,060 $ 100,911 $ 105,893 Hourly $ 37.75 $ 39.58 $ 41.53 $ 43.59 $ 45.84 $ 48.08 $ 50.52 $ 53.03 POLICE - 100 Jail Supervisor Monthly $ 6,544 $ 6,861 $ 7,200 $ 7,556 $ 7,946 $ 8,334 $ 8,757 $ 9,192 Annual $ 78,528 $ 82,332 $ 86,394 $ 90,675 $ 95,354 $ 100,007 $ 105,085 $ 110,304 Hourly $ 40.83 $ 42.82 $ 44.97 $ 47.23 $ 49.59 $ 52.09 $ 54.70 $ 57.44 POLICE - 106 Senior Public Safety Dispatcher Monthly $ 7,078 $ 7,423 $ 7,796 $ 8,188 $ 8,596 $ 9,030 $ 9,482 $ 9,957 Annual $ 84,936 $ 89,070 $ 93,556 $ 98,251 $ 103,154 $ 108,358 $ 113,783 $ 119,482 Hourly $ 57.21 $ 60.05 $ 63.04 $ 66.20 $ 69.51 $ 72.99 $ 76.67 $ 80.49 POLICE - 133 Supervisor of Support Services Monthly $ 9,917 $ 10,409 $ 10,927 $ 11,475 $ 12,050 $ 12,652 $ 13,290 $ 13,952 Annual $ 118,999 $ 124,907 $ 131,127 $ 137,700 $ 144,599 $ 151,823 $ 159,478 $ 167,420

1. Plus 5% shift bonus
POLICE EMPLOYEE'S ASSOCIATION - PROFESSIONAL - Effective 1/1/2026 PEA MOU Attachment A
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Salary Range Classification Title Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Hourly $ 32.13 $ 33.76 $ 35.48 $ 37.19 $ 39.04 $ 41.02 $ 43.08 $ 45.23 POLICE - 110 Park Ranger Monthly $ 5,570 $ 5,853 $ 6,151 $ 6,446 $ 6,769 $ 7,110 $ 7,467 $ 7,841 Annual $ 66,843 $ 70,230 $ 73,813 $ 77,356 $ 81,224 $ 85,325 $ 89,608 $ 94,086 Hourly $ 46.80 $ 49.20 $ 51.64 $ 54.26 $ 56.92 $ 59.79 $ 62.71 $ 65.83 POLICE - 112 Police Officer Monthly $ 8,113 $ 8,528 $ 8,951 $ 9,407 $ 9,867 $ 10,364 $ 10,871 $ 11,412 Annual $ 97,357 $ 102,341 $ 107,416 $ 112,880 $ 118,409 $ 124,367 $ 130,454 $ 136,944 Hourly $ 52.82 $ 55.46 $ 58.24 $ 61.18 $ 64.20 $ 67.43 $ 70.81 $ 74.34 POLICE - 122 Police Corporal Monthly $ 9,156 $ 9,613 $ 10,096 $ 10,605 $ 11,130 $ 11,689 $ 12,274 $ 12,886 Annual $ 109,869 $ 115,359 $ 121,148 $ 127,261 $ 133,556 $ 140,266 $ 147,288 $ 154,634 Hourly $ 60.09 $ 63.07 $ 66.21 $ 69.53 $ 73.01 $ 76.67 $ 80.53 $ 84.53 POLICE - 133 Police Sergeant Monthly $ 10,416 $ 10,933 $ 11,477 $ 12,052 $ 12,656 $ 13,290 $ 13,959 $ 14,654 Annual $ 124,990 $ 131,194 $ 137,722 $ 144,627 $ 151,870 $ 159,475 $ 167,510 $ 175,842 Revised 12/5/2025
POLICE EMPLOYEE'S ASSOCIATION - SWORN - Effective 1/1/2026 "Employee pay is based on an hourly rate maintained in the City’s financial system. The rates listed on the salary schedule are for illustrative purposes." PEA MOU Attachment A
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STAFF REPORT
Meeting Date:

December 9, 2025

CONSENT
18 SUBJECT: CONSULTANT SERVICES AGREEMENT FOR TRANSIT CAD/AVL/APC

INTEGRATED SYSTEM
RECOMMENDATION: It is recommended that the City Council:

1. Authorize the City Manager to execute a Consultant Services Agreement with TripShot, Inc. in an amount not to exceed $949,000.28, in a form approved by the City Attorney, for implementation and management of the Transit CAD/AVL/APC Integrated System for a three-year initial term, with two one-year extension options;

2. Appropriate $270,000 from the Transit Fund for this project; and

3. Find that the recommended actions are not subject to the California Environmental Quality Act pursuant to CEQA Guidelines Section 15378.

SUMMARY OF THE MATTER
This report recommends that the City Council approve a Consultant Services Agreement with TripShot, Inc. for the implementation and management of an integrated Transit CAD/AVL/APC system. The total three-year contract amount is $639,673, including hardware and subscription services, and is funded from through the Transit Fund. This project will streamline transit operations and improve rider experience by consolidating tracking and dispatch functions into a single app. It supports the City’s strategic goal of modernizing transportation infrastructure. The actions are not subject to CEQA under Guidelines Section 15378.

DISCUSSION
Background
In 2018, the City entered into a five-year agreement with DoubleMap, Inc. to provide a Computer-Aided Dispatch/Automated Vehicle Location (CAD/AVL) system for transit operations. The contract was temporarily suspended for one year due to the COVID-19 pandemic, with operations resuming in 2021.

During the contract term, DoubleMap was acquired by TransLoc, Inc., which notified the City that the legacy system would reach end-of-life on December 31, 2024.

To maintain service continuity, the City executed a temporary agreement with TransLoc from January 1 through November 30, 2025. This interim arrangement allowed time for staff to conduct a competitive procurement process for a long-term replacement system without disrupting public transit services.

Request for Proposal and Evaluation
On September 26, 2025, the City issued a Request for Proposals (RFP) via its PlanetBids procurement platform, seeking a vendor to provide an integrated Transit CAD/AVL/Automatic Passenger Counter (APC) system. A total of six proposals were received:
 GMV
 Peak Transit
 TransLoc Inc.
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 TripShot
 TripSpark Technologies
 VSI Technologies
The written proposals were evaluated, and the top four consultants were invited for a software demonstration and interview. After evaluation, the committee unanimously selected TripShot as the most qualified consultant.

Recommended System Feature Benefits
TripShot offers a complete transportation management software solution that includes fixed route, on demand, and rider mobile phone application solution which results in enhanced rider experience and efficient operational management. The proposed system includes:
• Computer-Aided Dispatch (CAD)
• Automated Vehicle Location (AVL)
• Real-Time Automatic Passenger Counters (APC)
• Mobile Data Terminals for both fixed-route and microtransit vehicles • White Label Mobile App with real-time transit information for riders Currently, Laguna Beach transit users must download two separate apps to access trolley and on-demand (Laguna Local) services. The TripShot platform will consolidate both services into a single app, improving the rider experience and operational efficiency.

Additionally, the new system will replace the CAD/AVL services currently provided under the City’s agreement with LAZ Parking for Laguna Local. Upon full implementation, the City anticipates a monthly cost savings of approximately $2,165 in LAZ billing.

Implementation and Transition Plan
To allow sufficient time for installation, testing, and staff training, staff extended the existing TransLoc agreement by four months, through March 31, 2026. Although TripShot estimates the new system can be operational within eight weeks, staff prefers to allow additional time for troubleshooting and onboarding if needed. This allows time for the new system to be implemented and thoroughly tested before the start of the summer season.

Contract Terms and Transition Plan
Staff recommends executing a three-year agreement with TripShot, with two optional one-year extensions.

The estimated cost breakdown is as follows:
• Year 1: $340,990 (includes one-time hardware costs for tablets, mounts, and AVA equipment) • Years 2–3: $298,683 (annual software subscriptions and support) • Total for Initial Term (3 years): $639,673
• Optional Year 4: $153,293.49
• Optional Year 5: $156,033.79
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• Total for Initial Term plus optional Year 4 and 5: $949,000.28 Contractor is not required to secure and maintain automobile liability insurance coverage as described in this Agreement if Contractor verifies through a signed declaration (Attachment 2) approved by the City Attorney that neither Contractor nor Contractor’s employees and consultants will use vehicles in the course of performing the obligations under this Agreement.

As part of the Indemnification Section of the agreement, it is modified so that in no event will Consultant’s liability under, arising out of, or in connection with this Agreement, under any legal or equitable theory, exceed $340,990.

FINANCIAL ANALYSIS
The total cost for the initial three-year term of the TripShot agreement is $639,673, which includes onetime hardware purchases and ongoing software subscription services. Of this amount, $340,990 is required in the first year and includes hardware such as tablets and Automatic Voice Announcement (AVA) equipment for the fixed-route trolleys and on-demand vehicles.

To fund the first-year costs, an appropriation of $270,000 is requested from the Transit Fund. This additional appropriation from what is currently budgeted will cover the full Year 1 cost and provide a contingency for installation or implementation-related expenses. Funding for subsequent years (Years 2 and 3) will be programmed in future Transit Division budgets.

Additionally, staff anticipates a reduction in monthly operating costs once the new CAD/AVL system replaces the current service provided through the City’s agreement with LAZ Parking. These cost savings, estimated at approximately $26,000 annually, will help offset future subscription costs.

ENVIRONMENTAL ANALYSIS
The proposed actions are not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(a), as they do not constitute a “project.” There is no potential for a direct or reasonably foreseeable indirect physical change to the environment because the actions involve approval of a consultant services agreement for transit technology services and do not authorize any physical development.

Additionally, the actions qualify under the general rule exemption pursuant to CEQA Guidelines Section 15061(b)(3), as it can be seen with certainty that there is no possibility the agreement may have a significant effect on the environment.

Therefore, the proposed actions are not subject to CEQA pursuant to CEQA Guidelines Sections 15378, 15061(b)(3), and 15060(c)(3).

ATTACHMENTS

1. TripShot Scope of Services (Pgs. 5-11)

2. TripShot Waiver of Auto Insurance (Pg. 12)

3. Professional Services Agreement with TripShot (Pgs. 13-41) 3 of 559

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Submitted By: Alexis Braun Approved: .David A Kiff
Alexis Braun, Acting Director of
Transit and Community Services Dave Kiff, City Manager
Report Prepared By: Coordinated With:

Nabila Guzman, Senior Administrative Analyst
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Scope of Work
Pg. 15 TripShot Technical Proposal
Attachment 1
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# Specification Y/N/P Comment

1.1 Provide CAD/AVL/APC services in a cloud-based system; Y TripShot is a cloud native platform, being developed from the ground up in the cloud.

1.2 Provide real-time vehicle tracking from dispatch system and mobile devices; Y
TripShot monitors vehicle location and activity with True-TimeⓇ, providing up-to-the-second, GPS-based location data to managers, drivers, and riders.

1.3 Provide real-time arrival predictions to City and public; Y TripShot leverages real-time traffic data paired with up-to-the-second GPS location data to produce accurate ETAs available to both the City and public.

1.4 Provide a white label tracking mobile phone application with customizable colors, icon, etc; Y
TripShot's out-of-the-box Rider App is a multi-tenant app, but we do offer a premium, white label rider app offering as an option for our clients.

1.5 Provide a web-based/one-time use option for vehicle tracker map and next stop information that does not require visitors to download a mobile phone application;
Y
TripShot has a web portal that contains nearly all of the functionality available in our Rider App. This portal will allow riders to view schedules, vehicle locations and ETAs through a web browser.

1.6 Allow self-service ability to draw new routes/add stops; Y TripShot's admin console provides an intuitive platform to create and edit stops, routes and schedules.

1.7 Provide current passenger loads and vehicle location visible to both dispatch and public via mobile phone application; Y TripShot displays the current ridership vs. capacity for each vehicle in rider facing platform as well as the admin console.

1.8 Allow for auto refresh rate of every 1-5 seconds for vehicle GPS location; Y TripShot receives location data from the Driver App every 1-2 seconds.

1.9 Provide option for passengers to text for next trolley arrival time by entering stop number; N
Upcoming trolley arrivals could be accessed via rider app, rider web or QR codes that direct the rider to one of the many rider-facing tools, but we do not have the option for a rider to text for next trolley arrival times.

1.10 Provide proven APC system that can utilize existing hardware and provide accurate on/off counts (95%+ accuracy for
unlinked trips);
Y
TripShot integrates with Hella (Xovis) and iris. We will plan to utilize the existing Hella equipment.

1.11 Contractor to assist City with getting APC system certified for NTD reporting;
P
TripShot would like to have a conversation with Laguna Beach regarding the level of assistance that being requested and required to properly scope this as an add-on service.

1.12 Integration with existing interior LED signs and speakers for visual and audio messages; P
TripShot integrates with Waysine and Hanover for interior LED next-stop signs as well as audio announcements. We will include the Waysine solution in our quote to replace the existing hardware.

1.13 Ability to provide geo-fenced automated stop
announcements (visual and audio); Y
TripShot is proposing the Waysine AVA and interior signage solution which meets this requirement.

1.14 Ability to control the volume of announcements, etc. Y TripShot is proposing the Waysine AVA and interior signage solution which meets this requirement.

1.15 Programmable ad hoc announcements (such as
safety/security announcements); Y
TripShot is proposing the Waysine AVA and interior signage solution which meets this requirement.

1.16 Ability to send push notifications with service alerts to customers who opt-in on the app; Y
Admins with elevated privileges can send push notifications to users of the TripShot Rider App. These messages can be broadcast to all users who have logged into the Laguna Beach instance or to a subset based on certain criteria, such as riders who have favorited a specific route.

City of Laguna Beach | Laguna Beach, CA 92651
T&CS-25-01 IMPLEMENTATION AND MANAGEMENT OF A CAD/AVL/APC INTEGRATED SYSTEM Scope of Work Matrix by TripShot

1. CAD/AVL/APC System
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1.17 Ability to integrate with GTFS (static and real time) and Open API;
Y
TripShot produces URL Based GTFS and GTFS-rt feeds that can be consumed by third party applications. API endpoints are available, though we did not include API access in our quote.

1.18 Ability to maintain reliable cellular connection in Laguna Beach service area; Y
TripShot will work with Laguna Beach to determine the most reliable cellular carrier. Additionally, the proposed tablets can accommodate a dual-sim. However, we are only quoting a single data plan per vehicle.

1.19 Ability to produce accurate Revenue Vehicle Hour/Mile reports;
Y TripShot is including our NTD reporting features in our quote.

1.20 Predictive arrival for vehicles running on headway, as well as on schedule; Y
Routes can be set up to run on headways or against set schedules. In both scenarios TripShot is calculating predictive arrivals by utilizing vehicle locations and traffic data.

1.21 Live vehicle tracking and playback options; Y
TripShot monitors vehicle location and activity with True-TimeⓇ, providing up-to-the-second, GPS-based location data to managers, drivers, and riders. This data is also available historically, allowing admins to view vehicle locations and speeds from earlier in the day or previous days.

1.22 Ability to integrate with exterior and interior headsigns (existing or new); Y TripShot has integrations with Transign, Hanover and Luminator.

1.23 Provide cloud-based reporting system with options to pull reports by route, vehicle, day, etc.; Y
TripShot allows for robust and configurable cloud reporting, with data fully owned by the customer and exportable at any time. Reports include Activity, Audit Log, Devices, APC Stop Data, On Time, Ridership, Rides, Run Sheets, Shifts, Users, Vehicles, Stops, Drivers, Stats by Pickup Hour, Riders by Day, etc. Most reports have route, vehicle and day options to allow for filtering upon export.

1.24 Ability to produce all monthly/annual ridership reports required by NTD; Y TripShot is including our NTD reporting features in our quote.

1.25 Ability for dispatchers to assign/unassign vehicles to routes; Y The TripShot platform offers a robust route scheduler to manage rides by driver, day, vehicle, and shift. These shifts can be saved and applied by day, span of days, or indefinitely. On the fly changes to shifts can be made using the Dispatching module.

1.26 Ability to filter routes shown to public to hide routes not in service, deadhead, or charter services while keeping the information visible to dispatcher;
Y
TripShot has Route Visibility Classes that allows an administrator to determine which group of riders can view routes, which would allow Laguna Beach to hide certain routes from all riders.

1.27 All data input to be controlled by the City if desired: Y

1.27.1 Routes Y

1.27.2 Patterns Y

1.27.3 Trips Y

1.27.4 Blocks Y

1.27.5 Time Points Y

1.27.6 Stop Locations Y

1.27.7 Fleet Information Y

1.27.8 Driver Information Y

1.28 Ability to view multiple moving routes at once; Y
TripShot offers a map view where one, multiple, or all vehicles and routes can be displayed simultaneously.

1.29 Ability to view vehicle tracking history; Y
TripShot's History module allows an admin to view vehicle location and speed from earlier in the day or previous days.

1.30 System compatibility with Hometown EV Trolleys and system ability to expand to future fleet as trolley models are added. Y The TripShot platform only requires a tablet to be installed in the vehicle, allowing the solution to be deployed in any vehicle type including Hometown EV Trolleys.

Every data set for every aspect of your entire TripShot environment can be easily accessed in one centralized location from the admin portal.

TripShot supports a rich set of properties on vehicles that include capacities (seats, wheel chair options, bikes), physical parameters (length, weight), and many other properties. Drivers are users in TripShot with the "Driver" role. Having the driver role allows the user to be assigned to a vendor, region (agency), and add properties for compliance (certifications, license info, etc.).

Creating, editing and maintaining stops, routes, route patterns, trips, blocks and schedules is intuitive. Stops are created by geocoding a point on a map, given a name and then added to routes. Schedules are then created based off of those routes.

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2.1 Provide desktop dashboard reporting of all integrated data from CAD/AVL and APC system; Y
TripShot's cloud-based admin platform is accessible through a desktop web browser.

2.2 Reports should be self-serve and daily reports must be available in real-time; Y Reports can be run at any time and data is available in real-time.

2.3 Allow for ridership reports by routes and stops in summary and detail for specific periods; Y
TripShot's ridership report includes routes and stops allowing for easy filtering on these data points.

2.4 On Time Performance reports are for both scheduled services and those operating on headways; Y
Arrival, departure and curb time data is available for all stops and routes, regardless of the service being schedule-based or headway-based.

2.5 Provide schedule and route adherence, on time and dwell time reports;
Y
TripShot captures the time a vehicle enters a stop geofence, the time a vehicle comes to a stop within the geofence, the time the vehicle moves within the geofence and the time the vehicle exits the geofence.

2.6 Allow for missed stops reports, vehicle hour and mileage in summary and detail for specific periods and trip times (total time for each route trips) reports;
Y
TripShot's standard reports and NTD reports have the data required by Laguna Beach.

2.7 Laguna Beach Transit will own the data. Y All data is owned by Laguna Beach Transit.

3.1 Consultant shall provide a comprehensive training program that prepares City staff for operation, administration and troubleshooting for the CAD/AVL/APC system;
Y TripShot will provide training on all aspects of the solution.

3.2 Training will include all aspects of operating system such as, but not limited to: Y

3.2.1 CAD/AVL/APC System Administration Y

3.2.2 CAD/AVL/APC System User Training Y

3.2.3 Vehicle Operator Training Y

3.2.4 Road Supervisor Training Y

3.2.5 Report Generation Training Y

3.2.6 Maintenance Training (Wiring, integration with other equipment, power, device, antennas, etc.); P

3.3 Proposal shall include training timeline and the duration per training in hours; Y
The TripShot Implementation & Training team will work with Laguna Beach to develop a training plan and agenda specific to your needs. The training and implementation process typically takes about 8 weeks and includes but is not limited to: training, marketing support and implementation support. Below are the standard training courses.

Initial Setup - 90 minutes
Admin - 90 minutes
Dispatch - 90 minutes
Driver App - 60 minutes
Rider App - 60 minutes

3.4 City staff shall be involved in field testing and trained in the operation of the system before participating in those tests; Y Part of TripShot's implementation plan is a soft launch.

3.5 Provie on-call customer support for all software systems to be provided during normal business hours, evenings and on weekends;
Y
Following launch, TripShot will assign a customer success manager who will routinely monitor the health of your mobility ecosystem, check-in with you and serve as your primary go-to TripShot professional supporting your everyday needs. TripShot also has a support team that can be contacted through [email protected].

3.6 Ability to provide a one-hour response time for technical support or system outages.

P TripShot can provide our standard support SLAs upon request.

TripShot will provide training specific to CAD/AVL system users and administrators, drivers, road supervisors, reporting and any other topic/user group required. All customers are provided access to TripShot’s training documents, knowledge base, PowerPoint presentations and training videos. Customers also are supported by an Implementation & Training team member as well as an experienced customer success manager to assist with all aspects of implementation and ongoing support. TripShot provides comprehensive training for all customers. Remote training is not capped and is included at no additional charge.

2. Cloud-Based Reporting System

3. Training and Customer Support
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4.1 Contractor shall provide any special test equipment, and any other special devices necessary to do basic troubleshooting and basic routine repairs of equipment to be maintained by CITY and shall be delivered with the CAD/AVL/APC system and included in the base cost of the proposal;
Y
TripShot installs a Mobile Device Management (MDM) solution on all tablets, giving our support the ability to monitor and troubleshoot the tablets.

4.2 Contractor shall have available additional replacement parts that are required for basic and routine maintenance that are field-replaceable in case of part failure. All part and assemblies shall be new, or equal to new (per manufacturer specifications) in performance and shall carry a new
equipment warranty;
Y TripShot is including a 10% spare ratio of tablets in our proposal.

4.3 For all returned hardware due to malfunction, City and Contractor agree to split the shipping costs. Each party will pay for the shipping costs from their destinations. Two-day shipping is required;
Y This is acceptable to TripShot.

4.4 All updates will be supplied at no cost throughout the life of the contract; Y
Applicable software bug fixes and support will be supplied at no cost.

New feature functionality and bespoke functionality may require additional licensing and budget.

4.5 The warranty period of the system shall run concurrently for all system components, through one year from the date of system acceptance. The Contractor shall offer an option to extend the warranty period the system for one, two, or three additional years. The Contractor shall document any
differences in the warranty terms for these options.

Y
All equipment is sold with a standard one-year manufacturer's warranty.

Equipment Warranty covers all equipment failure due to normal wear and tear or manufacturer's defect. Equipment warranty does not cover theft, damages sustained from an accident or vehicle malfunction, vandalism or damage due to neglect by driver, passenger or other individuals.

5.1 Ability to integrate fixed-route trolley and on-demand services in one mobile phone application; Y
The TripShot platform can accommodate fixed route and on-demand services within a single admin console, rider app and driver app, offering a seamless experience regardless of service mode.

5.2 Ability to allow passengers to book a ride either at a virtual stop or geofenced model; Y
The On Demand services are highly configurable and can be set up as point-to-point, stop-to-point, point-to-stop or stop-to-stop. Additional configurations are available at the zone level. For edge cases, TripShot allows admins to create if/then statements to ensure that all rules can be accommodated in the platform.

5.3 Provide real-time vehicle tracking from dispatch system and mobile devices; Y
TripShot monitors vehicle location and activity with True-TimeⓇ, providing up-to-the-second, GPS-based location data to managers, drivers, and riders.

5.4 Allow self-service ability to draw new routes/add stops; Y TripShot's admin console provides an intuitive platform to create and edit stops, zones, ride class rules and more.

5.5 Provide current passenger loads and vehicle location visible to both dispatch and public via mobile phone application; Y Upon booking an On Demand ride, the rider will be able to track the vehicle as it is approaching their pickup and while along the journey.

5.6 Allow for auto refresh rate of every 1-5 seconds for vehicle GPS location; Y TripShot receives location data from the Driver App every 1-2 seconds.

5.7 Ability for system to provide GPS mapping for driver with turn by turn directions to next pickup or drop-off location; Y TripShot's Driver App includes navigation natively built into the app to direct drivers to their next pickup or drop-off location.

5.8 Ability for driver to send messages for customer when driver has arrived or is waiting; P
Riders will receive automated notifications as the driver is approaching the pickup location, if the ETA changes by more than 5 minutes and upon completion of the trip asking the rider to leave feedback.

5.9 Ability for driver to confirm pickup and drop off locations of passengers via a tablet in the vehicle; Y
Upon arrival to a pickup or drop-off, the driver will confirm that they've arrived using the Driver App.

4. Equipment, Maintenance and Warranties

5. Optional Services- Integrated System for Microtransit CAD/AVL/APC In addition to providing an integrated system for trolleys, proposers shall offer optional CAD, AVL,APC integrated service for the City’s microtransit sharedride service, Laguna Local.

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5.10 Provide proven APC system that can utilize existing hardware and provide accurate on/off counts (95%+ accuracy for
unlinked trips);
N TripShot does not deploy an APC system for on demand services.

5.11 Contractor to assist City with getting APC system certified for NTD reporting;
N TripShot does not deploy an APC system for on demand services.

5.12 Ability to send push notifications with service alerts to customers who opt-in on the app; Y
Admins with elevated privileges can send push notifications to users of the TripShot Rider App.

5.13 Ability to maintain reliable cellular connection in Laguna Beach service area; Y
TripShot will work with Laguna Beach to determine the most reliable cellular carrier. Additionally, the proposed tablets can accommodate a dual-sim. However, we are only quoting a single data plan per vehicle.

5.14 Ability to charge a fare and accept payment for ride; P TripShot partners with Token Transit using a deeplink integration to collect fare for on demand services. This is not included in the proposed TripShot package and would need to be scoped in the future should you choose to implement this.

5.15 Ability to verify who the passenger is and ability to suspended rule violators; Y
In order to utilize the on demand services, riders will create an account.

Data regarding each individuals' usage of the on demand platform is available in reports. Rule violators can be moved to a ride class that does not have access to on demand services.

5.16 Ability to produce accurate Revenue Vehicle Hour/Mile reports;
Y TripShot is including our NTD reporting features in our quote.

5.17 Live vehicle tracking and playback options; Y
TripShot monitors vehicle location and activity with True-TimeⓇ, providing up-to-the-second, GPS-based location data to managers, drivers, and riders. This data is also available historically, allowing admins to view vehicle locations and speeds from earlier in the day or previous days.

5.18 Provide cloud-based reporting system with options to pull reports by route, vehicle, day, etc. in real-time; Y
TripShot allows for robust and configurable cloud reporting, with data fully owned by the customer and exportable at any time. On Demand reports include Rides, User Requests, Stops, Vehicles, Vehicles by Day, Vehicle Usage, Drivers, Drivers by Day, Stats by Pickup Hour, Riders, Riders by Day and Breaks.

5.19 Ability to produce all monthly/annual ridership reports required by NTD; Y TripShot is including our NTD reporting features in our quote.

5.20 Ability for dispatchers to assign/unassign vehicles to routes; Y The TripShot platform offers a robust route scheduler to manage rides by driver, day, vehicle, and shift. These shifts can be saved and applied by day, span of days, or indefinitely. On the fly changes to shifts can be made using the Dispatching module.

5.21 Ability to expand to future fleet as vehicle models are added; Y Should additional licenses be needed during any part of the SOW term, TripShot can prorate it to align with the remaining year and term.

5.22 Ability to view vehicle tracking history. Y
TripShot's History module allows an admin to view vehicle location and speed from earlier in the day or previous days.

6.1 Allow and provide history for driver log in; Y Data regarding drivers is available in reports.

6.2 Allow route Selection for Driver; Y
TripShot has the ability to allow for drivers to self-select the shift they are performing.

6.3 Provide headway spacing indicators (e.g. red when within set distance of bus in front); P
TripShot's headway management tools will instruct a driver to hold at a stop for a determined period of time to allow for drivers in front of them to return to the proper headway and maintain spacing. A countdown timer will clearly tell the driver how long to hold and when to depart.

6.4 Provide next stop arrivals; Y
The Driver App will show the driver's ETA to the next stop as well as schedule adherence.

6.5 Ability to manually count passengers (If APC’s are not functioning, the driver will need the ability to manually enter ridership counts).

Y
The Driver App has buttons for the driver to press as riders board and alight the vehicle to manually count ridership.

6. Optional Services - Mobile Data Terminals (MDT)
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7.1 100% compatible with Windows 10/11 Operating System; Y TripShot's admin console is compatible with Windows 10/11 OS.

7.2 Software native to the PC environment; Y
TripShot's admin console can be run on any PC with an internet connection and web browser.

7.3 Software currently supported with no plans to phase out; Y TripShot is part of Transit Technologies which is backed by PSG, and some of world’s most sophisƟcated investors. There are no plans to phase the software out.

7.4 Software is easy to use and has a Graphical User Interface (GUI); Y All aspects of the TripShot platform are intuitive and easy to use.

7.5 Adequate security features that include the ability to set access controls at multiple levels; Y
TripShot follows strict security protocols, is 27001 certified and offers rolebased access to the admin platform.

7.6 Customer report capabilities where applicable; Y
All data is available in real time and historically. Data can be exported and opened in Excel or another business intelligence tool allowing for the creation of required reports or dashboards. If custom reports are required they will need to be scoped individually.

7.7 Customer support, with a toll-free support line and available email and remote diagnosis during normal business hours (PT).

Y
Premium Support includes direct access to an assigned Customer Success Manager during business hours and priority response time on support inquiries.

7. General Software Standards – IT Requirements
The proposed software must comply with the following general standards:

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Declaration Regarding Automobile Insurance Requirements Legal or DBA Name of Business:
(“Insured”).

DECLARATION
I hereby declare I am the authorized representative of the aforementioned Contractor. At this time, the requirement to carry automobile liability insurance as described under Sections 3.311 (B) and 3.3.11.2 (B) of the Implementation and Management of a CAD/AVL/APC Integrated System Agreement with the City is not applicable, for the following reasons:
(Initial) I hereby certify on behalf of Contractor that Contractor does not personally possess, own, borrow, rent, or use any vehicle on or behalf of, or directly for, the Contractor for use in the course of performance of the obligations under the Implementation and Management of a CAD/AVL/APC Integrated System Agreement.
(Initial) I hereby certify on behalf of Contractor that Contractor does not have any employees, contractors, or subcontractors that possess, own, borrow, rent, or use any vehicles on behalf of, or directly for, the Contractor for use in the course of performance of the obligations under the Implementation and Management of a CAD/AVL/APC Integrated System Agreement. (Initial) If hereby certify on behalf of Contractor that if Contractor, or any employee, contractor, or subcontractor of Contractor, possesses or uses a vehicle or automobile during the term of this Grant Agreement and in the course of performance of the obligations under the Implementation and Management of a CAD/AVL/APC Integrated System Agreement, I will immediately notify the City and provide proof of automobile insurance as required under the Agreement
(Initial) Contractor agrees to hold the City harmless for loss or liability which may arise from failure to comply with the insurance requirements pursuant to the Agreement and this Declaration.

CERTIFICATION
I certify under penalty of perjury on behalf of Contractor that I have read and understand the above-stated requirements regarding automobile liability insurance and that Contractor is in compliance I certify on behalf of Contractor that the foregoing is true and correct.

Date Signature of Insured
Print Name of Insured
Transit Fixed / On - Demand, LLC
12/02/2025
James Hajek, CFO and Secretary
Attachment 2
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-1- PROFESSIONAL SERVICES AGREEMENT

CITY OF LAGUNA BEACH

PROFESSIONAL SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement #__________ is made and entered into this _____ day of ________, 20___, by and between the City of Laguna Beach, a municipal corporation organized under the laws of the State of California with its principal place of business at 505 Forest Avenue, Laguna Beach, California 92651 ("City") and TripShot, Inc., a California corporation, with its principal place of business at 3031 Tisch Way, 110 Plaza West, San Jose, California 95128 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement.

Consultant represents that it is experienced in providing Transit Computer Aided Dispatch (“CAD”), Automated Vehicle Locators (“AVL”), Real-Time Automatic Passenger Counters (“APC”), and mobile data terminal services to public clients, is licensed in the State of California, and is familiar with the plans of City.

2.2 Project.

City desires to engage Consultant to render such professional services for the implementation and management of an CAD, AVL, APC, and mobile data terminal integrated system project ("Project") as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional information technology services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

Attachment 3
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3.1.2 Term. The term of this Agreement shall be from January 1, 2026 to December 31, 2028, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than two additional one-year terms. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.

3.2 Compensation.

3.2.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed Nine Hundred Thirty Three Thousand One Hundred and Ninety Dollars ($949,000.28 ) without written approval of the City Council or City Manager, as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.2.2 Payment of Compensation. Consultant shall submit to City an invoice within 5 days following full execution of this Agreement for the one-time costs reflected in Exhibit C and the annual fees for the first year reflected in Exhibit C. Thereafter, Consultant shall submit to City an invoice on every anniversary of this Agreement during the term of this Agreement for the annual fees reflected in Exhibit C. Consultant shall also submit to City a monthly invoice for any vehicle usage over the Included Vehicle Quality reflected in Exhibit C and such invoice shall describe the amount of Services provided through the date of the monthly invoice. City shall, within 30 days of receiving any invoice, review the invoice, and pay all non-disputed and approved charges. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein.

Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever.

3.2.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "C" of this Agreement.

3.2.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.3 Responsibilities of Consultant.

3.3.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee.

Any personnel performing the Services on behalf of Consultant shall not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, or any of its officials, officers, directors, employees or agents shall have control over the conduct of 14 14 of 559
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Consultant or any of Consultants officers, employees or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law.

Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.

3.3.2 Schedule of Services. Consultant shall perform the Services in a prompt and timely manner and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.3.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.

3.3.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows:

Raymond Berheim, Director of Implementation & Training; Jen Duncanson, Project Manager; and Eric Petersiel, Training Manager.

3.3.5 City's Representative. The City hereby designates Alexis Braun, Acting Director of Transit and Community Services, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Services or change the Consultant's total compensation subject to the provisions contained in this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

3.3.6 Consultant's Representative. Consultant hereby designates Patrick Le, General Manager & Co-Founder, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.3.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times.
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3.3.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its subconsultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

3.3.9 Period of Performance.

3.3.9.1 Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be separately agreed upon in writing by the City and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage.

3.3.9.2 Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the services and Agreement.

3.3.9.3 Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of 16 16 of 559
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the Party responsible for the delay, shall not entitle Consultant to any additional compensation.

Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

3.3.10 Laws and Regulations; Employee/Labor Certification.

3.3.10.1 Compliance with Laws. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause.

3.3.10.2 Employment Eligibility; Consultant. Consultant certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants and sub-subconsultants to comply with the same. Consultant certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement.

3.3.10.3 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.3.10.4 Air Quality. To the extent applicable, Consultant must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the South Coast Air Quality Management District (SCAQMD) and/or California Air Resources Board (CARB). Consultant shall indemnify City against any fines or penalties imposed by SCAQMD, CARB, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Consultant, its subconsultants, or others for whom Consultant is responsible under its indemnity obligations provided for in this Agreement.

3.3.10.5 Water Quality Management and Compliance. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Consultant must additionally comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. City may 17 17 of 559
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seek damages from Consultant for delay in completing the Services caused by Consultant’s failure to comply with the laws, regulations and policies described in this Section, or any other relevant water quality law, regulation, or policy.

3.3.10.6 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed.

3.3.11 Insurance.

3.3.11.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section. Failure to provide and maintain all required insurance shall be grounds for the City to terminate this Agreement for cause.

3.3.11.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 00 01, or the exact equivalent, with limits of not less than $2,000,000 per occurrence and no less than $4,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); (3) products/completed operations liability; or (4) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. (B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 00 01 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $2,000,000 combined limit for each occurrence. Contractor is not required to secure and maintain automobile liability insurance coverage as described in this Agreement if Contractor verifies through a signed declaration in a form approved by the City Attorney that neither Contractor nor Contractor’s employees and consultants will use vehicles in the course of performing the obligations under this Agreement. (C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. 18 18 of 559
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(D) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $2,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least five (5) years from termination or expiration of this Agreement.

3.3.11.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Commercial General Liability: (1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.

Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Automobile Liability: (1) Additional Insured: The City, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Vendor or for which the Vendor is responsible. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. Contractor is not required to secure and maintain automobile liability insurance coverage as described in this Agreement if Contractor verifies through a signed declaration in a form approved by the City Attorney that neither Contractor nor Contractor’s employees and consultants will use vehicles in the course of performing the obligations under this Agreement.
(C) Professional Liability (Errors & Omissions): (1) Cancellation:

Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) This insurance shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend.
(D) Workers' Compensation: (1) Cancellation: Required
insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written 19 19 of 559
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notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City, its officials, officers, employees, agents, and volunteers.

3.3.11.4 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

3.3.11.5 Waiver of Subrogation. All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

3.3.11.6 Deductibles and Self-Insured Retentions. Any deductible or selfinsured retention must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

3.3.11.7 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

3.3.11.8 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

3.3.11.9 Enforcement of Agreement Provisions (non estoppel).

Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform 20 20 of 559
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Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.

3.3.11.10 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this Section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. The insurance obligations under this Agreement shall be: (1) all the insurance coverage and/or limits carried by or available to the Consultant; or (2) the minimum insurance coverage requirements and/or limits shown in this Agreement; whichever is greater. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits, which are applicable to a given loss, shall be available to the City. No representation is made that the minimum insurance requirements of this Agreement are sufficient to cover the obligations of the Consultant under this Agreement.

3.3.11.11 Additional Insurance Provisions
(A) If any Excess or Umbrella Liability policies are used to meet the limits of liability required by this Agreement, then said policies shall be “following form” of the underlying policy coverage, terms, conditions, and provisions and shall meet all of the insurance requirements stated in this Agreement, including, but not limited to, the additional insured and primary & non-contributory insurance requirements stated herein. No insurance policies maintained by the City, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Consultant’s primary and excess liability policies are exhausted.
(B) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(C) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
(D) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (E) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
(F) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations 21 21 of 559
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to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.
(G) Consultant shall report to the City, in addition to Consultant’s insurer, any and all insurance claims submitted by Consultant in connection with the Services under this Agreement.

3.3.11.12 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.

3.4 Labor Code Requirements.

3.4.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.4.2 Registration/DIR Compliance. If the Services are being performed on a public works project of over $25,000 when the project is for construction, alteration, demolition, installation, or repair work, or a public works project of over $15,000 when the project is for maintenance work, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants.
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3.4.3 Compliance Monitoring. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Any stop orders issued by the DIR against Consultant or any subconsultant that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the DIR against Consultant or any subconsultant.

3.4.4 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.5 Termination of Agreement.

3.5.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement.

3.5.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

3.5.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.6 Indemnification.

3.6.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including 23 23 of 559
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wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.

3.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

3.6.3 In no event will Consultant’s liability under, arising out of, or in connection with this Agreement, under any legal or equitable theory, exceed $340,990.

3.7 General Provisions.

3.7.1 Accounting Records. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

3.7.2 Independent Contractors and Subcontracting.

3.7.2.1 Use of Consultants. Consultant is aware of statutory and case law regarding classification of workers as independent contractors, including California Labor Code Section 2750.3 and Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018). To ensure that Consultant is in compliance with the California Labor Code, Consultant shall only utilize its employees to provide the Services. Consultant may not provide the services through any independent contractor, subcontractor or subconsultant (“Subcontractor(s)”) unless approved by the City as set forth in Section 3.7.2.2 below. Consultant represents and warrants that all personnel who perform the Services on Consultant’s behalf are Consultant’s employees, and that Consultant complies with all applicable laws, rules and regulations governing its employees, including, but not limited to, the California Labor Code, Unemployment Insurance Code and all applicable Industrial Welfare Commission Wage Orders.

3.7.2.2 Prior Approval Required. Consultant shall not use any Subcontractor to provide the Services, or any portion of the work required by this Agreement, without prior written approval of City. In the event that City authorizes Consultant to use a 24 24 of 559
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Subcontractor, Consultant shall enter into a written agreement with the Subcontractor, which must include all provisions of the Agreement, including a restriction on the Subcontractor’s use of further independent contractors, subcontractors or subconsultants without the City’s prior written consent.

3.7.3 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant: TripShot, Inc.
3031 Tisch Way, 110 Plaza West
San Jose, California 95128
ATTN: Patrick Le, General Manager & Co-Founder
City: City of Laguna Beach
505 Forest Avenue
Laguna Beach CA 92651
ATTN: City Manager and Director of Transit and
Community Services
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.7.4 Ownership of Materials and Confidentiality.

3.7.4.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). All Documents & Data shall be and remain the property of City, and shall not be used in whole or in substantial part by Consultant on other projects without the City’s express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents. 25 25 of 559
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3.7.4.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or its subconsultants, or those provided to Consultant by the City.

3.7.4.3 Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City’s sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant.

3.7.4.4 Indemnification. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted.

3.7.4.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.7.4.6 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.

Consultant shall have five (5) working days after receipt of the release notice to give City written 26 26 of 559
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notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of an objection notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information.

3.7.5 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.7.6 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements.

3.7.7 Attorneys’ Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorneys’ fees and all costs of such action.

3.7.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Consultant must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Consultant. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Consultant shall be barred from bringing and maintaining a valid lawsuit against the City.

3.7.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.7.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.7.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.7.12 Assignment or Transfer. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination.

Consultant shall not subcontract any portion of the Services required by this Agreement, except 27 27 of 559
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as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

3.7.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.7.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.7.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

3.7.16 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.7.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.7.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further agrees to file, or shall cause its employees or subconsultants to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.7.19 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.7.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
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3.7.21 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination.

SIGNATURES ON NEXT PAGE
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SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF LAGUNA BEACH AND
TRIPSHOT, INC.

IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written.

CITY OF LAGUNA BEACH TRIPSHOT, INC.

By:

Its: President or Vice President
Printed Name:

By:

Its: Secretary or Treasurer
Printed Name:

Approved By:

Dave Kiff, City Manager
Approved as to Form:
_____________________________________
City Attorney
Attested By:

City Clerk
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Exhibit “A” PROFESSIONAL SERVICES AGREEMENT
55852.00003\42823523.1
EXHIBIT "A"

SCOPE OF SERVICES

1. SERVICES
SOW Start Date 1/1/2026
Included Vehicle Quantity 35
Service Address 505 Forest Ave, Laguna Beach, CA 92651
Core Product Description
• Fixed Route • Unified platform to manage vehicles, drivers, vendors, and schedules • Route Scheduler- manage rides by driver, day, vehicle, shifts • Real-time vehicle dispatch
• Driver schedule view - ability to see and accept all assigned routes • Driver Vehicle Inspection Reports (DVIR)
• Incident Reporting
• Protection vehicle support
• Single interface to add/edit/remove route schedules
• Map shuttle route manually or by using suggested routes • Customized geo-fences
• Routes are managed from a central admin web portal updating rider and driver applications in real-time
• Route list view provides all available routes, real-time vehicle status, arrival times
• Support system for multiple schedules and future schedule planning • Fast and accurate GPS – capturing GPS every second
• Automatically updates ETAs using real time traffic updates • Arrival detection
• Integrates with real-time traffic
• Predicts real-time arrival times
• Historical drive time data
• Automated alerts and announcements send via TripShot Rider App • Automatically generated based on vehicle location
• Cloud-based Dashboard for real-time reporting
• Detailed reporting by stop, time period, route, shuttle • Dispatch View
• On Time Performance
• Metrics by Ride and Stop
• Historical ride playback, including on time performance and speed • Digital Passenger Counting
• Add-on: Headway monitoring
• On Demand • Riders can request On Demand pickup and drop-off using TripShot Rider App
• Riders pickup requests are automatically dispatched to Drivers via TripShot Driver App
• Riders get real-time ETAs and GPS for dispatched Drivers • Efficiently group On Demand requests with Pooling capabilities • Extensive On Demand reporting
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Exhibit “A” PROFESSIONAL SERVICES AGREEMENT
55852.00003\42823523.1
Additional Add Ons Description
• AVA Integration • GTFS/GTFS-RT or API Integration Support to WaySine AVAS Solution • APC Integration • • Integration with Hella/Xovis APCs to pull in APC counts and associate against route services.
• Headsign Integration • Integration support with Transign Controller Implementation Description
• Instance Creation • Provision of new, cloud-hosted TripShot instance • I&T Standard Five (5) Standard Training Sessions:
− Initial Setup
− Dispatch
− Admin
− Driver
− Rider experience
During the implementation period, TripShot Trainers will guide the customer through setting up and using TripShot services, emphasizing hands-on experience. The customer will be required to actively engage and perform tasks to better understand and become comfortable with the platform.

Estimated Duration: 8-10 weeks for training course delivery Customer Support Description
• Premium Support Tier 1 • Assigned Customer Success Manager (one per subscriber) • Product Issue Reports
• Unlimited access via email and chat bots during business hours (M-F 5am to 5pm PT)
• Monthly office hours – generally the 3rd Wednesday each month from 11:15 am-12:15 pm PDT
Hardware & Labor Description
• Tablet • Mobile Device Management (MDM) configuration • TripShot Driver app installed + configured
• Device properly tested and validated before shipping out to field • Device configurations align with subscriber requirements • Tablet Access Package • 4G Data Plan
• Tablet Mobile Device Management Software
• Tablet: Mounting Bracket •
• WaySine AVAS Solution • WaySine AVAS Controller, Amplifier & Display • WaaySine SaaS Services
• WaySine: Installation • On-Site Discovery / IDD Documentation • Installation of AVA, Mounts & Tablet in Trolley Vehicles (25) • Installation of Mounts & Tablet in On Demand Vehicles (10)

2. City of Laguna Beach Customer Branded Rider/User App (Powered and Delivered by TripShot) Definitions. When used in this document, the following definitions shall apply:

TripShot Mobile App - TripShot’s existing multi-tenant mobile application available in TripShot branding in the Apple App Store and Google Play Store.

Customer Branded Mobile App - The mobile app created and managed by TripShot and branded and made available for 32 32 of 559
Exhibit “A” PROFESSIONAL SERVICES AGREEMENT
55852.00003\42823523.1
City of Laguna Beach for distribution to users as needed.

Customer Branded Mobile App Description, Functionality & Process a) TripShot to develop, design, and complete all engineering required to successfully deliver City of Laguna Beach’s Customer Branded Mobile App.
i. The Customer Branded Mobile App will be functionally equivalent to the TripShot Mobile App at the time of contract.
ii. App Development & Maintenance Fee includes color and brand customizations for City of Laguna Beach along with software updates.
iii. TripShot will add innovative features and improvements to ensure compliance with the latest security standards, fix any bugs and implement new features. These updates will also be applied to the Customer Branded Mobile App.
iv. TripShot does not guarantee support for bespoke feature requests, and in-app user workflows are not customizable. Should City of Laguna Beach desire customizations beyond the current TripShot Mobile App, both parties would need to identify and agree to additional scoping and requirements. v. The Customer Branded Mobile app and TripShot Mobile App are and will remain TripShot’s intellectual property.
vi. TripShot shall only access City of Laguna Beach’s App Store Connect & Google Play Console accounts as necessary to provide the services. In accessing City of Laguna Beach’s App Store Connect & Google Play Console, TripShot acknowledges that it is acting on behalf of the University of City of Laguna Beachsylvania and that all terms and conditions of the Agreement between the parties shall apply. TripShot or TripShot’s employees’ misuse of the accounts will be grounds for immediate termination of the Agreement. TripShot may be liable for TripShot’s employees’ misuse of the accounts.
vii. TripShot shall provide access to the Customer Branded Mobile App for City of Laguna Beach testing and validation processes, in advance of initial publishing to any app store. Security fixes and other approved software updates can be applied once the TripShot’s quality assurance processes are completed and without specific City of Laguna Beach validation testing or approval. In the case of any update wherein Customer Branded Mobile App logo, color and/or branding are impacted, City of Laguna Beach will be provided the opportunity to review and validate the update prior to publishing.

Customer Branded Mobile App Roles & Responsibilities:

City of Laguna Beach TripShot
App Store Connect & Google Play Console
Identify and maintain Primary Point of
Contact (POC) for mobile app
coordination
Responsible
City of Laguna Beach App Store
Account Information
City of Laguna Beach Account Holder
Name:

City of Laguna Beach Account Holder
Email:

Responsible
TripShot App Store Account
Information
TripShot Point of Contact Name:

TripShot Point of Contact Email:

Identify, manage and maintain App
Store (App Store Connect & Google
Play Console) Account Holder(s) for
City of Laguna Beach who will
ensure account(s) are in good
standing
Responsible & Accountable Consult, Inform and Support
33 33 of 559
Exhibit “A” PROFESSIONAL SERVICES AGREEMENT
55852.00003\42823523.1
Manage Administrator Access and
provide access to TripShot as needed
for purposes of development,
distribution, and maintenance of
Customer Branded App
Responsible & Accountable Consult, Inform and Support
Agree to App Store new terms or
legal documents.

Responsible & Accountable Consult, Inform and Support
Create a new provisioning profile
(they expire each year) or create one
correctly.

Responsible & Accountable Consult, Inform and Support
Renew App Store accounts. Responsible & Accountable Consult, Inform and Support Perform any other tasks needed to
maintain app store accounts in good
standing.*
Responsible & Accountable Consult, Inform and Support
Manage and publish mobile apps and
all future app updates through City of
Laguna Beach’s
App Store Connect & Google Play
Console accounts.

Consult, Inform and Support Responsible & Accountable
Customer Branded Mobile App Development & Launch
Provide name, logo, colors and other
branding materials for City of Laguna
Beach’s Branded Rider Mobile App to
TripShot
Responsible & Accountable Consult, Inform and Support
Develop, design, and complete all
engineering required to successfully
deliver City of Laguna Beach’s
Customer Branded Mobile App
Consult, Inform and Support Responsible & Accountable
Coordinate with City of Laguna Beach
Administration, Transportation
Leadership, Marketing Team as well as
other identified professionals involved
in the successful launch, maintenance,
and management of City of Laguna
Beach’s mobile app and transportation
services.

Consult, Inform and Support Responsible & Accountable
*Failure to maintain App Store Connect & Google Play Console accounts in good standing may impede TripShot’s ability to provide the services.
34 34 of 559
Exhibit “A” PROFESSIONAL SERVICES AGREEMENT
55852.00003\42823523.1
Product Improvements
Improvements & Releases a. Product improvements & fixes delivered with regular releases a. TripShot will add innovative features and improvements to ensure compliance with the latest security standards, fix any bugs and implement new features. b. Updates will be applied to the Customer Branded Mobile App at a similar frequency to the TripShot Rider App, with updates to the Customer Branded Mobile App being made no more than 25 days after the TripShot Rider App. To reduce unnecessary user communications, exceptions may be made and minor updates or fixes not required for City of Laguna Beach’s operation may be held until next major update of App.
b. Advance notice about upcoming features
a. Features with major operational impacts: Approximately two weeks or more in advance of release, includes training as needed.
c. Release notes - “What’s New”
a. At time of contract TripShot was in development of a 'What's New' webpage with plans to publish this routinely; the specific cadence and frequency of this is being determined. This 'What's New' webpage will have notes for relevant releases populated and published. Until the “What’s New” webpage is launched, TripShot’s Customer Success Team will inform City of Laguna Beach of relevant releases that can be used and/or those impacting City of Laguna Beach’s operation.
d. City of Laguna Beach may submit feature or improvement requests to the Customer Success Manager which TripShot will consider and prioritize according to utility across the TripShot platform for all TripShot customers.
a. TripShot does not guarantee support for bespoke feature requests and in-app user workflows are not customizable. Should City of Laguna Beach desire customizations outside TripShot’s roadmap, both parties may need to identify and agree to additional scoping and requirements with an appropriate budget and a separate SOW.
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Exhibit “A” PROFESSIONAL SERVICES AGREEMENT
CONDITIONS. The following Conditions apply explicitly to this SOW.

1.1 TripShot will not be held responsible for any city, county, or transit authority violations, including but not limited to; a) permit fees, b) penalty fees, c) citations, and d) administrative fees for lack of compliance.

1.2 City of Laguna Beach is responsible for ensuring the mobile device is properly installed, powered and operating.

1.3 TripShot recommends that each device has a cellular data connection at all times during operation.

1.4 TripShot Wallet uses the third-party provider Braintree for the processing of rider payments. No payment card processing is undertaken by TripShot. If the Services include TripShot Wallet, City of Laguna Beach consents to TripShot’s use of its thirdparty provider Braintree.

1.5 City of Laguna Beach will take good care of the Equipment and will be solely responsible for, and assumes all risk of, any loss, theft, or damage to the Equipment, reasonable wear and tear accepted.

1.6 Equipment will be covered under the manufacturer’s warranty. The warranty shall be voided if the equipment is modified, tampered with, misused, or subjected to abnormal working conditions.

1.7 City of Laguna Beach may order additional Equipment from TripShot at a price quoted on a per-order basis. The pricing below does not apply to future orders.

1.8 City of Laguna Beach agrees to open, pay for and maintain its own developer account and distribution agreement, as applicable, with the Apple Store and/or Google Play as may be required at any time during this Agreement. City of Laguna Beach agrees to comply with, and shall be solely responsible for compliance with, the Apple Store and Google Play Store (collectively, the “App Stores”) mobile application rules and requirements applicable to development, modifications and distribution of the Application on the App Stores (“App Store Developer Rules”). City of Laguna Beach shall authorize TripShot to make updates to the Application as applicable to ensure that the Application, as developed and distributed by TripShot to City of Laguna Beach, remains in compliance with App Store Developer Rules.

1.9 City of Laguna Beach acknowledges and agrees that City of Laguna Beach has no right under this Agreement to receive the source code for the Application.

1.10 TripShot, or City of Laguna Beach as may be required by App Store Rules, will apply for approval for the Application to be distributed through the App Stores. City of Laguna Beach acknowledges that TripShot cannot control the approval decisions or the timeframe for review and approval by the App Stores. 36 36 of 559
Exhibit “A” PROFESSIONAL SERVICES AGREEMENT
EXHIBIT "B"

SCHEDULE OF SERVICES

1. TIMELINE OF DELIVERABLES, LAUNCH & IMPLEMENTATION
TripShot will project manage the deliverables, launch and implementation of City of Laguna Beach’s Transportation Management System (TMS), as well as the Customer Branded App development for City of Laguna Beach. These efforts require significant coordination between all parties involved. The project plan tasks detailed below serve as a draft overview of the effort(s) required by the outlined responsible parties with targeted weeks commencing upon fully executed contracts.

Project Task Overview
Task Group Task Name Target Week
(Dates*)
Estimated City of
Laguna Beach
Resource Hours
Primary
Responsible
Party
Project Kickoff &
Coordination
Fully Executed Contracts
Week 1 – (12/8/2025-
12/12/2025)
~1 hour
All Parties
Confirm details for Instance
Creation (see Instance
Configuration Guide)
Week 2 – (12/15/2025-
12/19/2025)
~1-2 hours City of Laguna
Beach
Project Kickoff Meeting:

Team introductions, R&R’s,
scope review, & next steps
Week 2 – (12/15/2025-
12/19/2025)
~2 hours All Parties
Coordinate recurring
implementation meetings
Week 2 – (12/15/2025-
12/19/2025)
~1 hour All Parties
Marketing
Marketing &
Communications Plan
Kickoff: share
available digital
assets, verbiage and
guides for City of
Laguna Beach usage.

Week 5 (1/5/2026-1/9/2026) ~2 hours All Parties
Customer
Branded
App
Produce Customer Branded
Items:

Creation of branded app
assets as detailed by the
provided Spec guide
Weeks 1-4 – (12/8/2025-
1/2/2026)
TBD by City of
Laguna Beach
City of Laguna
Beach
Submit Customer Branded
Items to TripShot Week 5 (1/5/2026-1/9/2026) ~2 hours City of Laguna Beach
Review & Acceptance of
Submitted Assets for
Customer Branded App:

TripShot to confirm all assets
are accounted for, review for
Week 6 (1/12/2025-
1/16/2025)
N/A TripShot
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Exhibit “A” PROFESSIONAL SERVICES AGREEMENT
proper formatting, and share
any applicable feedback
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Exhibit “A” PROFESSIONAL SERVICES AGREEMENT
Development of Customer
Branded App
Weeks 5-10 (1/5/2026-
2/13/2026)
N/A TripShot
Review & Testing of
Customer Branded App:

City of Laguna Beach to be
provided closed access to
app for review, testing, and
approvals prior to release to
App Stores
Weeks 11-13 (2/16/2026-
3/6/2025) ~ 5-10 hours City of Laguna
Beach
In-Vehicle
Hardware
Hardware Confirmation &
Order:

TripShot to place hardware
order(s) after kickoff and
scope review
Week 2 – (12/15/2025-
12/19/2025)
~2-4 hours All Parties
Hardware
Installations:

WaySine to install hardware
in vehicles
To be confirmed - based on
hardware lead times
following order placement
and WaySine install team
availability in conjunction
with City of Laguna Beach
~2-4 hours per
vehicle estimated
All Parties
Hardware Installation
Completion
To be confirmed – target
alignment with completion of
all training courses
N/A All Parties
Implementation
& Training
City of Laguna Beach
service(s) & business needs
review:

Define launch services and
gather required data
Weeks 3-5 (12/22/2026-
1/9/2026)
~5-10 hours of
coordination as
necessary
All Parties
Project Plan (Asana):

Review and approval of
project plan and schedule
Week 5 (1/5/2026-1/9/2026)
~1-2 hours for
review
All Parties
Enroll teams into LMS:

TripShot to provide access to
LMS platform in support of
initial training
Week 2 (12/15/2025-
12/19/2025)
<1 hour TripShot
Training Sessions:

Qty 3 – 90 min sessions,
Qty 3 – 60 min sessions,
Qty 1 – 30 min session
Weeks 5-10 (1/5/2026-
2/13/2026)
~1.5-5 hours per
week based on
project plan &
coordinated/schedul
ed sessions
All Parties
Training & Instance
Configuration Completion
Week 10
(2/9/2026-2/13/2026)
~2-5 hours based on
outstanding
configuration posttraining
All Parties
39 39 of 559
Exhibit “B” PROFESSIONAL SERVICES AGREEMENT
Functional
Testing
Create Customer-applicable
test plans:

TripShot to provide
scenarios & testing
guidance
Weeks 7-9 (1/19/2026-
2/6/2026)
N/A TripShot
Functional Testing:

City of Laguna Beach to
perform testing to validate
configuration
Weeks 10-12 (2/9/2026-
2/27/2026)
~1-4 hours per
day of planned
testing, could
grow based on
testing plans
coordinated
between City of
Laguna Beach &
TripShot
City of Laguna
Beach
TripShot
Rollout/Launch
TripShot Launch
(Operations):

Start of City of Laguna
Beach’s regular/daily use of
platform for operations
Week 13 (3/2/2026- 3/6/2026)
Normal
operational hours
All Parties
Launch of Customer
Branded App to Riders: City
of Laguna Beach’s targeted
launch date for Riders to
begin regular use of
Branded Mobile Apps
Week 14+
(3/9/2026-3/13/2026+)
As needed
to support
riders
City of Laguna
Beach
40 40 of 559
Exhibit “C” PROFESSIONAL SERVICES AGREEMENT
EXHIBIT "C"

COMPENSATION
Total Compensation: Year 1 ($340,990) + Year 2 ($148,050) + Year 3 ($150,633) + Year 4 ($153,293.49) + Year 5 ($156,033.79) = $949,000.28
If City of Laguna Beach exceeds the Included Vehicle Quantity in any given month, TripShot shall invoice City of Laguna Beach an amount per vehicle used in excess of the Included Vehicle Quantity for that month based on the year in which the overage occurs as follows: Years 1-5 = $ 460.00 Prices shown above do not include any state and local taxes that may apply. Any such taxes are the responsibility of City of Laguna Beach and will appear on each annual Invoice. 41 41 of 559

STAFF REPORT
Meeting Date:

December 9, 2025

CONSENT
19 SUBJECT: APPROVAL OF PURCHASE AGREEMENT WITH PUMP-POD USA AND

TEMPORARY APPROPRIATION OF FUNDS FOR PROCUREMENT AND

DELIVERY OF PUMP-POD UNIT THROUGH THE WATER SAVINGS

INCENTIVE PROGRAM
RECOMMENDATION: It is recommended that the City Council:

1. Authorize the City Manager to execute a contract with Pump-Pod USA for the purchase and delivery of a Pump Pod Unit through the Water Savings Incentive Program;

2. Approve a General Fund appropriation of $31,555 for the purchase, including applicable taxes and delivery charges, and recognize $22,055 in estimated grant revenue to offset a portion of the cost; and; and

3. Find that this action is not a project subject to the California Environmental Quality Act pursuant to CEQA Guidelines Section 15378.

SUMMARY OF THE MATTER
This report recommends that the City Council authorize the City Manager to execute a purchase agreement with Pump-Pod USA for the procurement and delivery of a Mobile Draft Water Reduction Unit (“Pump Pod Unit”) through the Water Savings Incentive Program. The project promotes water conservation by recirculating and reusing water during firefighter training exercises, thereby reducing water waste by up to

1.3 million gallons annually and eliminating dry weather run off.

The Water Savings Incentive Program has awarded the City $110,275 in grant funding for this project, with $88,220 paid directly to the vendor and $22,055 reimbursed to the City upon completion of a six-month monitoring period. The City’s required appropriation of $31,555 covers its grant obligation along with applicable taxes and delivery fees. Of this amount, $22,055 is eligible for reimbursement under the grant.

This project aligns with the City’s Sustainability and Environmental Stewardship Initiative by promoting the efficient use of natural resources and reducing water waste during firefighter training exercises.

DISCUSSION
In 2025, the Fire Department applied to the Water Savings Incentive Program to fund the purchase of a Mobile Draft Water Reduction Unit from Pump-Pod USA (“Pump Pod Unit”). The unit recirculates water during firefighter training, reducing water waste, and runoff by redirecting water between the fire engine and the Pump Pod Unit.

On October 30, 2025, the City was notified of its successful grant award totaling $110,275, distributed as follows:
1 of 565

APPROVAL OF PURCHASE AGREEMENT WITH PUMP-POD USA AND TEMPORARY

APPROPRIATION OF FUNDS FOR PROCUREMENT AND DELIVERY OF PUMP-POD UNIT

THROUGH THE WATER SAVINGS INCENTIVE PROGRAM
December 9, 2025

Page 2 of 2 ends

Laguna Beach City CouncilDecember 9, 2025

Laguna Beach City Council
December 9, 2025